the depositary receipt
January 2015
contents
directory TABLE Of CONTENTS
website
1 weLcoMe 17 section 2 2015 oUtLooK contact
Message from the CEO Global Markets Outlook
Investor Outlook for 2015
3 section 1 2014 in reView
2014 Depositary Receipt Highlights 23 section 3 reGionaL reViews
Market Reform and the Evolving Depositary Receipt Landscape in India
BNY Mellonrsquos Global Investor Relations Survey
Asia Pacific
Europe Middle East amp Africa
Latin America Supporting Investor Demand for Depositary Receipts
Depositary Receipts Year-over-Year
Most Active Depositary Receipt Sectors
Depositary Receipt Liquidity
Sponsored and Unsponsored Market
27 section 4 bny MeLLon depositary receipt Leadership
Depositary Receipt Market Leadership
BNY Mellon Depositary Receipt Contacts
Insights into North American Investorsrsquo Views of Corporate Access
Institutional Depositary Receipt Ownership
Statistics in this document are as of December 31 2014 unless otherwise noted All uses of $ refers to the US dollar
1 the depositary receipt MarKet reView
rsquo
ndash rsquo
rsquo
ndash
ndash
ndash
ndash
ndash
contents
directory MESSAGE fROM THE CEO
website
Dear Clients and Friends
The strong performance of many markets in 2014 including a 12 gain for the SampP 500 a 198 gain on the Shanghai SE contact
Composite and a 313 return on the CNX Nifty conceals a volatile yearsup1 Contributing factors such as investor anticipation of the end of the US Federal Reserve s quantitative easing combined with macro-economic weakness and geopolitical instability meant that many markets touched year-lows as recently as October
Despite this imperfect backdrop the Depositary Receipt (DR) market strengthened in 2014
Issuers raised over $38 billion in 2014mdashthree times more than in 2013 and a post-crisis recordsup2 On-line retailer Alibaba s $25 billion initial public offeringmdashthe largest evermdashled a wave of the Chinese deals that accounted for one-third of the year s capital raisings
Robust demand prompted the creation of 166 DR programs for issuers from 37 countriessup2 Landmarks in DR expansion included the first American Depositary Receipt (ADR) by a Namibian company and new DR rules in 2014 in India Taiwan and Romania which should help to open up these markets to further investment
Secondary market activity was also vigorous Trading volume grew 8 to 159 billion DRs and DR trading value increased by 29 over 2013 with $33 trillion in DRs changing hands2
The value of DR ownership increased by more than $53 billion (up 7) for a total of $876 billion3
Going into 2015 the outlook is positive both in terms of demand and supply BNY Mellon recently interviewed securities analysts and portfolio managers at major US and European buy-side institutions and overall survey participants kept a positive outlook on investment in the equity markets for 20154
The majority expect to maintain their commitment to their current equity allocation overall this year
More than two-thirds of participants viewed the Asia-Pacific Latin America and EEMEA markets positively in 2015
BNY Mellon plays a leadership role in bringing together investors and issuers and by working with regulators to improve market efficiency and accessibility We look forward to using our deep knowledge and proven expertise to help issuers and their investors achieve their DR goals in 2015
sup1 Bloomberg as of December 31 2014 sup2 BNY Mellon and other depositary websites
sup3 IPREO Year-on-Year Q313 as compared to Q314 4 Survey by Rivel January 2015 described in more detail on page 20
For further information please visit httpwwwadrbnymelloncom
christopher Kearns Chief Executive Officer Depositary Receipts
Sincerely
contents
directory
website
contact
3 the depositary receipt MarKet reView
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directory
website
contact
Section 1 2014 in Review
4 the depositary receipt MarKet reView
contents
directory 2014 DEPOSITARY RECEIPT HIGHLIGHTS
website
Depositary Receipts are playing an increasingly contact
important role in global financial markets allowing companies and investors around the globe to connect seamlessly across borders
Highlights
159 billion DRs valued at $33 trillion traded
$38 billion raised through 59 DR offerings
77 new sponsored programs created
89 new unsponsored programs created
3742 total DR programs in existence
Sources BNY Mellon and other depositary websites Bloomberg and London Stock Exchange Includes both sponsored and unsponsored programs Statistics are as of December 31 2014 unless otherwise noted for further information please visit httpwwwadrbnymelloncomdr_directoryjsp
5 the depositary receipt MarKet reView
BNY Mellon issues Easing Conditions contents Mar 2013 paper outlining potential regulatory changes that would help attract foreign investment into the Indian market directory MARkET REfORM AND THE EVOLVING Sahoo Committee formed to review DEPOSITARY RECEIPT LANDSCAPE IN INDIA sep 2013 the fCCBrsquos and Ordinary Shares website (Through DR Mechanism) Scheme 1993
bny Mellon a committed partner in the contact
development of indiarsquos capital Markets
In 2014 BNY Mellon continued to be at the forefront of regulatory change as we worked to create new opportunities in India Starting in early 2013 BNY Mellon published a thought leadership paper entitled Easing Conditions which outlined potential regulatory changes that could attract foreign investment and open the Indian market to new investors
Shortly afterwards the Committee of Review of the fCCBs and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme chaired by MS Sahoo and known as the Sahoo Committee met to review the policy on foreign investment via DRs and BNY Mellon presented its findings to this committee After much deliberation the Sahoo Committee issued its reportsup1 and the Indian Ministry of finance liberalized depositary receipt regulations
To educate issuers investors and IR professionals on this new ruling BNY Mellon hosted a number of events explaining the new DR Scheme and its implications Participants learned that this new scheme will help further integrate Indiarsquos capital markets with the global markets and could usher in new opportunities for Indian corporates and markets
BNY Mellon has conducted business in India for more than 30 years and established Indiarsquos first DR program in 1992 We have been at the forefront of crafting innovative depositary receipt solutions for Indian issuers and remain committed to the Indian market
sup1 Report of the Committee to Review the fCCBs and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 Ministry of finance Government of India November 2013 httpfinminnicinreportsSahoo_Committee_Reportpdf
BNY Mellon presents its findings oct 2013 to the Sahoo Committee for easing conditions for investors
The Indian Ministry of finance May 2014 accepts the Sahoo Committee recommendations on liberalizing depositary receipts regulations
BNY Mellon hosts IR professionals JUn 2014 from top corporates across India for panel discussions on these new opportunities
BNY Mellon hosts 8th Annual DR sep 2014 Issuersrsquo Conference in Jaipur India
BNY Mellon hosts a seminar at the Bombay Stock Exchange to discuss the Sahoo Committee recommendations
BNY Mellon organizes an investor roundtable in New York with the participation of MS Sahoo the Indian Ministry of finance and the Securities and Exchange Board of India
Ministry of finance ratifies the noV 2014 lsquoDepositary Receipts Scheme 2014rsquo
The Depositary Receipts Scheme dec 2014 goes effective December 15
6 the depositary receipt MarKet reView
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directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY
website
a decade of helping companies navigate change contact
Over the past 10 years the BNY Mellon Investor Relations Survey (ldquoIR Surveyrdquo) has served as a resource for companies navigating some of the most tumultuous periods in the global capital markets This research has also provided valuable insight for market stakeholders such as academics the media investors and regulators about how companies think about issues such as global systemic risk eurozone stability dark pools approaches to sovereign wealth funds and the rise of investment-focused environment social and governance (ESG) factors
Since 2004 more than 3000 respondents have participated in the IR Survey from more than 80 countries
Throughout the decade this research has tracked the development of the IR role from a tactical function to a strategic management practice The results have revealed the formalization of investor relations and in many cases demonstrated the value of the IR role up the chain of command
In recent years BNY Mellon has established relationships with leading academics at Cornell University and Harvard Business School for their use of IR Survey data for further research Our purpose in these relationships is to support research that may help quantify the per-share valuation boost that may be associated with investor relations best practices
Our many collaborative relationships with IR societies have strengthened the IR Survey and expanded participation for the most recent IR Survey we worked with 21 professional IR organizations in as many countries including the Uk Brazil Japan and around the world
7 the depositary receipt MarKet reView
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directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
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SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
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directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
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directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
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Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
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contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
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contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
contents
directory TABLE Of CONTENTS
website
1 weLcoMe 17 section 2 2015 oUtLooK contact
Message from the CEO Global Markets Outlook
Investor Outlook for 2015
3 section 1 2014 in reView
2014 Depositary Receipt Highlights 23 section 3 reGionaL reViews
Market Reform and the Evolving Depositary Receipt Landscape in India
BNY Mellonrsquos Global Investor Relations Survey
Asia Pacific
Europe Middle East amp Africa
Latin America Supporting Investor Demand for Depositary Receipts
Depositary Receipts Year-over-Year
Most Active Depositary Receipt Sectors
Depositary Receipt Liquidity
Sponsored and Unsponsored Market
27 section 4 bny MeLLon depositary receipt Leadership
Depositary Receipt Market Leadership
BNY Mellon Depositary Receipt Contacts
Insights into North American Investorsrsquo Views of Corporate Access
Institutional Depositary Receipt Ownership
Statistics in this document are as of December 31 2014 unless otherwise noted All uses of $ refers to the US dollar
1 the depositary receipt MarKet reView
rsquo
ndash rsquo
rsquo
ndash
ndash
ndash
ndash
ndash
contents
directory MESSAGE fROM THE CEO
website
Dear Clients and Friends
The strong performance of many markets in 2014 including a 12 gain for the SampP 500 a 198 gain on the Shanghai SE contact
Composite and a 313 return on the CNX Nifty conceals a volatile yearsup1 Contributing factors such as investor anticipation of the end of the US Federal Reserve s quantitative easing combined with macro-economic weakness and geopolitical instability meant that many markets touched year-lows as recently as October
Despite this imperfect backdrop the Depositary Receipt (DR) market strengthened in 2014
Issuers raised over $38 billion in 2014mdashthree times more than in 2013 and a post-crisis recordsup2 On-line retailer Alibaba s $25 billion initial public offeringmdashthe largest evermdashled a wave of the Chinese deals that accounted for one-third of the year s capital raisings
Robust demand prompted the creation of 166 DR programs for issuers from 37 countriessup2 Landmarks in DR expansion included the first American Depositary Receipt (ADR) by a Namibian company and new DR rules in 2014 in India Taiwan and Romania which should help to open up these markets to further investment
Secondary market activity was also vigorous Trading volume grew 8 to 159 billion DRs and DR trading value increased by 29 over 2013 with $33 trillion in DRs changing hands2
The value of DR ownership increased by more than $53 billion (up 7) for a total of $876 billion3
Going into 2015 the outlook is positive both in terms of demand and supply BNY Mellon recently interviewed securities analysts and portfolio managers at major US and European buy-side institutions and overall survey participants kept a positive outlook on investment in the equity markets for 20154
The majority expect to maintain their commitment to their current equity allocation overall this year
More than two-thirds of participants viewed the Asia-Pacific Latin America and EEMEA markets positively in 2015
BNY Mellon plays a leadership role in bringing together investors and issuers and by working with regulators to improve market efficiency and accessibility We look forward to using our deep knowledge and proven expertise to help issuers and their investors achieve their DR goals in 2015
sup1 Bloomberg as of December 31 2014 sup2 BNY Mellon and other depositary websites
sup3 IPREO Year-on-Year Q313 as compared to Q314 4 Survey by Rivel January 2015 described in more detail on page 20
For further information please visit httpwwwadrbnymelloncom
christopher Kearns Chief Executive Officer Depositary Receipts
Sincerely
contents
directory
website
contact
3 the depositary receipt MarKet reView
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directory
website
contact
Section 1 2014 in Review
4 the depositary receipt MarKet reView
contents
directory 2014 DEPOSITARY RECEIPT HIGHLIGHTS
website
Depositary Receipts are playing an increasingly contact
important role in global financial markets allowing companies and investors around the globe to connect seamlessly across borders
Highlights
159 billion DRs valued at $33 trillion traded
$38 billion raised through 59 DR offerings
77 new sponsored programs created
89 new unsponsored programs created
3742 total DR programs in existence
Sources BNY Mellon and other depositary websites Bloomberg and London Stock Exchange Includes both sponsored and unsponsored programs Statistics are as of December 31 2014 unless otherwise noted for further information please visit httpwwwadrbnymelloncomdr_directoryjsp
5 the depositary receipt MarKet reView
BNY Mellon issues Easing Conditions contents Mar 2013 paper outlining potential regulatory changes that would help attract foreign investment into the Indian market directory MARkET REfORM AND THE EVOLVING Sahoo Committee formed to review DEPOSITARY RECEIPT LANDSCAPE IN INDIA sep 2013 the fCCBrsquos and Ordinary Shares website (Through DR Mechanism) Scheme 1993
bny Mellon a committed partner in the contact
development of indiarsquos capital Markets
In 2014 BNY Mellon continued to be at the forefront of regulatory change as we worked to create new opportunities in India Starting in early 2013 BNY Mellon published a thought leadership paper entitled Easing Conditions which outlined potential regulatory changes that could attract foreign investment and open the Indian market to new investors
Shortly afterwards the Committee of Review of the fCCBs and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme chaired by MS Sahoo and known as the Sahoo Committee met to review the policy on foreign investment via DRs and BNY Mellon presented its findings to this committee After much deliberation the Sahoo Committee issued its reportsup1 and the Indian Ministry of finance liberalized depositary receipt regulations
To educate issuers investors and IR professionals on this new ruling BNY Mellon hosted a number of events explaining the new DR Scheme and its implications Participants learned that this new scheme will help further integrate Indiarsquos capital markets with the global markets and could usher in new opportunities for Indian corporates and markets
BNY Mellon has conducted business in India for more than 30 years and established Indiarsquos first DR program in 1992 We have been at the forefront of crafting innovative depositary receipt solutions for Indian issuers and remain committed to the Indian market
sup1 Report of the Committee to Review the fCCBs and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 Ministry of finance Government of India November 2013 httpfinminnicinreportsSahoo_Committee_Reportpdf
BNY Mellon presents its findings oct 2013 to the Sahoo Committee for easing conditions for investors
The Indian Ministry of finance May 2014 accepts the Sahoo Committee recommendations on liberalizing depositary receipts regulations
BNY Mellon hosts IR professionals JUn 2014 from top corporates across India for panel discussions on these new opportunities
BNY Mellon hosts 8th Annual DR sep 2014 Issuersrsquo Conference in Jaipur India
BNY Mellon hosts a seminar at the Bombay Stock Exchange to discuss the Sahoo Committee recommendations
BNY Mellon organizes an investor roundtable in New York with the participation of MS Sahoo the Indian Ministry of finance and the Securities and Exchange Board of India
Ministry of finance ratifies the noV 2014 lsquoDepositary Receipts Scheme 2014rsquo
The Depositary Receipts Scheme dec 2014 goes effective December 15
6 the depositary receipt MarKet reView
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directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY
website
a decade of helping companies navigate change contact
Over the past 10 years the BNY Mellon Investor Relations Survey (ldquoIR Surveyrdquo) has served as a resource for companies navigating some of the most tumultuous periods in the global capital markets This research has also provided valuable insight for market stakeholders such as academics the media investors and regulators about how companies think about issues such as global systemic risk eurozone stability dark pools approaches to sovereign wealth funds and the rise of investment-focused environment social and governance (ESG) factors
Since 2004 more than 3000 respondents have participated in the IR Survey from more than 80 countries
Throughout the decade this research has tracked the development of the IR role from a tactical function to a strategic management practice The results have revealed the formalization of investor relations and in many cases demonstrated the value of the IR role up the chain of command
In recent years BNY Mellon has established relationships with leading academics at Cornell University and Harvard Business School for their use of IR Survey data for further research Our purpose in these relationships is to support research that may help quantify the per-share valuation boost that may be associated with investor relations best practices
Our many collaborative relationships with IR societies have strengthened the IR Survey and expanded participation for the most recent IR Survey we worked with 21 professional IR organizations in as many countries including the Uk Brazil Japan and around the world
7 the depositary receipt MarKet reView
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directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
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SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
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directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
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website
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Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
1 the depositary receipt MarKet reView
rsquo
ndash rsquo
rsquo
ndash
ndash
ndash
ndash
ndash
contents
directory MESSAGE fROM THE CEO
website
Dear Clients and Friends
The strong performance of many markets in 2014 including a 12 gain for the SampP 500 a 198 gain on the Shanghai SE contact
Composite and a 313 return on the CNX Nifty conceals a volatile yearsup1 Contributing factors such as investor anticipation of the end of the US Federal Reserve s quantitative easing combined with macro-economic weakness and geopolitical instability meant that many markets touched year-lows as recently as October
Despite this imperfect backdrop the Depositary Receipt (DR) market strengthened in 2014
Issuers raised over $38 billion in 2014mdashthree times more than in 2013 and a post-crisis recordsup2 On-line retailer Alibaba s $25 billion initial public offeringmdashthe largest evermdashled a wave of the Chinese deals that accounted for one-third of the year s capital raisings
Robust demand prompted the creation of 166 DR programs for issuers from 37 countriessup2 Landmarks in DR expansion included the first American Depositary Receipt (ADR) by a Namibian company and new DR rules in 2014 in India Taiwan and Romania which should help to open up these markets to further investment
Secondary market activity was also vigorous Trading volume grew 8 to 159 billion DRs and DR trading value increased by 29 over 2013 with $33 trillion in DRs changing hands2
The value of DR ownership increased by more than $53 billion (up 7) for a total of $876 billion3
Going into 2015 the outlook is positive both in terms of demand and supply BNY Mellon recently interviewed securities analysts and portfolio managers at major US and European buy-side institutions and overall survey participants kept a positive outlook on investment in the equity markets for 20154
The majority expect to maintain their commitment to their current equity allocation overall this year
More than two-thirds of participants viewed the Asia-Pacific Latin America and EEMEA markets positively in 2015
BNY Mellon plays a leadership role in bringing together investors and issuers and by working with regulators to improve market efficiency and accessibility We look forward to using our deep knowledge and proven expertise to help issuers and their investors achieve their DR goals in 2015
sup1 Bloomberg as of December 31 2014 sup2 BNY Mellon and other depositary websites
sup3 IPREO Year-on-Year Q313 as compared to Q314 4 Survey by Rivel January 2015 described in more detail on page 20
For further information please visit httpwwwadrbnymelloncom
christopher Kearns Chief Executive Officer Depositary Receipts
Sincerely
contents
directory
website
contact
3 the depositary receipt MarKet reView
contents
directory
website
contact
Section 1 2014 in Review
4 the depositary receipt MarKet reView
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directory 2014 DEPOSITARY RECEIPT HIGHLIGHTS
website
Depositary Receipts are playing an increasingly contact
important role in global financial markets allowing companies and investors around the globe to connect seamlessly across borders
Highlights
159 billion DRs valued at $33 trillion traded
$38 billion raised through 59 DR offerings
77 new sponsored programs created
89 new unsponsored programs created
3742 total DR programs in existence
Sources BNY Mellon and other depositary websites Bloomberg and London Stock Exchange Includes both sponsored and unsponsored programs Statistics are as of December 31 2014 unless otherwise noted for further information please visit httpwwwadrbnymelloncomdr_directoryjsp
5 the depositary receipt MarKet reView
BNY Mellon issues Easing Conditions contents Mar 2013 paper outlining potential regulatory changes that would help attract foreign investment into the Indian market directory MARkET REfORM AND THE EVOLVING Sahoo Committee formed to review DEPOSITARY RECEIPT LANDSCAPE IN INDIA sep 2013 the fCCBrsquos and Ordinary Shares website (Through DR Mechanism) Scheme 1993
bny Mellon a committed partner in the contact
development of indiarsquos capital Markets
In 2014 BNY Mellon continued to be at the forefront of regulatory change as we worked to create new opportunities in India Starting in early 2013 BNY Mellon published a thought leadership paper entitled Easing Conditions which outlined potential regulatory changes that could attract foreign investment and open the Indian market to new investors
Shortly afterwards the Committee of Review of the fCCBs and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme chaired by MS Sahoo and known as the Sahoo Committee met to review the policy on foreign investment via DRs and BNY Mellon presented its findings to this committee After much deliberation the Sahoo Committee issued its reportsup1 and the Indian Ministry of finance liberalized depositary receipt regulations
To educate issuers investors and IR professionals on this new ruling BNY Mellon hosted a number of events explaining the new DR Scheme and its implications Participants learned that this new scheme will help further integrate Indiarsquos capital markets with the global markets and could usher in new opportunities for Indian corporates and markets
BNY Mellon has conducted business in India for more than 30 years and established Indiarsquos first DR program in 1992 We have been at the forefront of crafting innovative depositary receipt solutions for Indian issuers and remain committed to the Indian market
sup1 Report of the Committee to Review the fCCBs and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 Ministry of finance Government of India November 2013 httpfinminnicinreportsSahoo_Committee_Reportpdf
BNY Mellon presents its findings oct 2013 to the Sahoo Committee for easing conditions for investors
The Indian Ministry of finance May 2014 accepts the Sahoo Committee recommendations on liberalizing depositary receipts regulations
BNY Mellon hosts IR professionals JUn 2014 from top corporates across India for panel discussions on these new opportunities
BNY Mellon hosts 8th Annual DR sep 2014 Issuersrsquo Conference in Jaipur India
BNY Mellon hosts a seminar at the Bombay Stock Exchange to discuss the Sahoo Committee recommendations
BNY Mellon organizes an investor roundtable in New York with the participation of MS Sahoo the Indian Ministry of finance and the Securities and Exchange Board of India
Ministry of finance ratifies the noV 2014 lsquoDepositary Receipts Scheme 2014rsquo
The Depositary Receipts Scheme dec 2014 goes effective December 15
6 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY
website
a decade of helping companies navigate change contact
Over the past 10 years the BNY Mellon Investor Relations Survey (ldquoIR Surveyrdquo) has served as a resource for companies navigating some of the most tumultuous periods in the global capital markets This research has also provided valuable insight for market stakeholders such as academics the media investors and regulators about how companies think about issues such as global systemic risk eurozone stability dark pools approaches to sovereign wealth funds and the rise of investment-focused environment social and governance (ESG) factors
Since 2004 more than 3000 respondents have participated in the IR Survey from more than 80 countries
Throughout the decade this research has tracked the development of the IR role from a tactical function to a strategic management practice The results have revealed the formalization of investor relations and in many cases demonstrated the value of the IR role up the chain of command
In recent years BNY Mellon has established relationships with leading academics at Cornell University and Harvard Business School for their use of IR Survey data for further research Our purpose in these relationships is to support research that may help quantify the per-share valuation boost that may be associated with investor relations best practices
Our many collaborative relationships with IR societies have strengthened the IR Survey and expanded participation for the most recent IR Survey we worked with 21 professional IR organizations in as many countries including the Uk Brazil Japan and around the world
7 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
contents
SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
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Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
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20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
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directory
website
contact
3 the depositary receipt MarKet reView
contents
directory
website
contact
Section 1 2014 in Review
4 the depositary receipt MarKet reView
contents
directory 2014 DEPOSITARY RECEIPT HIGHLIGHTS
website
Depositary Receipts are playing an increasingly contact
important role in global financial markets allowing companies and investors around the globe to connect seamlessly across borders
Highlights
159 billion DRs valued at $33 trillion traded
$38 billion raised through 59 DR offerings
77 new sponsored programs created
89 new unsponsored programs created
3742 total DR programs in existence
Sources BNY Mellon and other depositary websites Bloomberg and London Stock Exchange Includes both sponsored and unsponsored programs Statistics are as of December 31 2014 unless otherwise noted for further information please visit httpwwwadrbnymelloncomdr_directoryjsp
5 the depositary receipt MarKet reView
BNY Mellon issues Easing Conditions contents Mar 2013 paper outlining potential regulatory changes that would help attract foreign investment into the Indian market directory MARkET REfORM AND THE EVOLVING Sahoo Committee formed to review DEPOSITARY RECEIPT LANDSCAPE IN INDIA sep 2013 the fCCBrsquos and Ordinary Shares website (Through DR Mechanism) Scheme 1993
bny Mellon a committed partner in the contact
development of indiarsquos capital Markets
In 2014 BNY Mellon continued to be at the forefront of regulatory change as we worked to create new opportunities in India Starting in early 2013 BNY Mellon published a thought leadership paper entitled Easing Conditions which outlined potential regulatory changes that could attract foreign investment and open the Indian market to new investors
Shortly afterwards the Committee of Review of the fCCBs and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme chaired by MS Sahoo and known as the Sahoo Committee met to review the policy on foreign investment via DRs and BNY Mellon presented its findings to this committee After much deliberation the Sahoo Committee issued its reportsup1 and the Indian Ministry of finance liberalized depositary receipt regulations
To educate issuers investors and IR professionals on this new ruling BNY Mellon hosted a number of events explaining the new DR Scheme and its implications Participants learned that this new scheme will help further integrate Indiarsquos capital markets with the global markets and could usher in new opportunities for Indian corporates and markets
BNY Mellon has conducted business in India for more than 30 years and established Indiarsquos first DR program in 1992 We have been at the forefront of crafting innovative depositary receipt solutions for Indian issuers and remain committed to the Indian market
sup1 Report of the Committee to Review the fCCBs and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 Ministry of finance Government of India November 2013 httpfinminnicinreportsSahoo_Committee_Reportpdf
BNY Mellon presents its findings oct 2013 to the Sahoo Committee for easing conditions for investors
The Indian Ministry of finance May 2014 accepts the Sahoo Committee recommendations on liberalizing depositary receipts regulations
BNY Mellon hosts IR professionals JUn 2014 from top corporates across India for panel discussions on these new opportunities
BNY Mellon hosts 8th Annual DR sep 2014 Issuersrsquo Conference in Jaipur India
BNY Mellon hosts a seminar at the Bombay Stock Exchange to discuss the Sahoo Committee recommendations
BNY Mellon organizes an investor roundtable in New York with the participation of MS Sahoo the Indian Ministry of finance and the Securities and Exchange Board of India
Ministry of finance ratifies the noV 2014 lsquoDepositary Receipts Scheme 2014rsquo
The Depositary Receipts Scheme dec 2014 goes effective December 15
6 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY
website
a decade of helping companies navigate change contact
Over the past 10 years the BNY Mellon Investor Relations Survey (ldquoIR Surveyrdquo) has served as a resource for companies navigating some of the most tumultuous periods in the global capital markets This research has also provided valuable insight for market stakeholders such as academics the media investors and regulators about how companies think about issues such as global systemic risk eurozone stability dark pools approaches to sovereign wealth funds and the rise of investment-focused environment social and governance (ESG) factors
Since 2004 more than 3000 respondents have participated in the IR Survey from more than 80 countries
Throughout the decade this research has tracked the development of the IR role from a tactical function to a strategic management practice The results have revealed the formalization of investor relations and in many cases demonstrated the value of the IR role up the chain of command
In recent years BNY Mellon has established relationships with leading academics at Cornell University and Harvard Business School for their use of IR Survey data for further research Our purpose in these relationships is to support research that may help quantify the per-share valuation boost that may be associated with investor relations best practices
Our many collaborative relationships with IR societies have strengthened the IR Survey and expanded participation for the most recent IR Survey we worked with 21 professional IR organizations in as many countries including the Uk Brazil Japan and around the world
7 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
contents
SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
3 the depositary receipt MarKet reView
contents
directory
website
contact
Section 1 2014 in Review
4 the depositary receipt MarKet reView
contents
directory 2014 DEPOSITARY RECEIPT HIGHLIGHTS
website
Depositary Receipts are playing an increasingly contact
important role in global financial markets allowing companies and investors around the globe to connect seamlessly across borders
Highlights
159 billion DRs valued at $33 trillion traded
$38 billion raised through 59 DR offerings
77 new sponsored programs created
89 new unsponsored programs created
3742 total DR programs in existence
Sources BNY Mellon and other depositary websites Bloomberg and London Stock Exchange Includes both sponsored and unsponsored programs Statistics are as of December 31 2014 unless otherwise noted for further information please visit httpwwwadrbnymelloncomdr_directoryjsp
5 the depositary receipt MarKet reView
BNY Mellon issues Easing Conditions contents Mar 2013 paper outlining potential regulatory changes that would help attract foreign investment into the Indian market directory MARkET REfORM AND THE EVOLVING Sahoo Committee formed to review DEPOSITARY RECEIPT LANDSCAPE IN INDIA sep 2013 the fCCBrsquos and Ordinary Shares website (Through DR Mechanism) Scheme 1993
bny Mellon a committed partner in the contact
development of indiarsquos capital Markets
In 2014 BNY Mellon continued to be at the forefront of regulatory change as we worked to create new opportunities in India Starting in early 2013 BNY Mellon published a thought leadership paper entitled Easing Conditions which outlined potential regulatory changes that could attract foreign investment and open the Indian market to new investors
Shortly afterwards the Committee of Review of the fCCBs and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme chaired by MS Sahoo and known as the Sahoo Committee met to review the policy on foreign investment via DRs and BNY Mellon presented its findings to this committee After much deliberation the Sahoo Committee issued its reportsup1 and the Indian Ministry of finance liberalized depositary receipt regulations
To educate issuers investors and IR professionals on this new ruling BNY Mellon hosted a number of events explaining the new DR Scheme and its implications Participants learned that this new scheme will help further integrate Indiarsquos capital markets with the global markets and could usher in new opportunities for Indian corporates and markets
BNY Mellon has conducted business in India for more than 30 years and established Indiarsquos first DR program in 1992 We have been at the forefront of crafting innovative depositary receipt solutions for Indian issuers and remain committed to the Indian market
sup1 Report of the Committee to Review the fCCBs and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 Ministry of finance Government of India November 2013 httpfinminnicinreportsSahoo_Committee_Reportpdf
BNY Mellon presents its findings oct 2013 to the Sahoo Committee for easing conditions for investors
The Indian Ministry of finance May 2014 accepts the Sahoo Committee recommendations on liberalizing depositary receipts regulations
BNY Mellon hosts IR professionals JUn 2014 from top corporates across India for panel discussions on these new opportunities
BNY Mellon hosts 8th Annual DR sep 2014 Issuersrsquo Conference in Jaipur India
BNY Mellon hosts a seminar at the Bombay Stock Exchange to discuss the Sahoo Committee recommendations
BNY Mellon organizes an investor roundtable in New York with the participation of MS Sahoo the Indian Ministry of finance and the Securities and Exchange Board of India
Ministry of finance ratifies the noV 2014 lsquoDepositary Receipts Scheme 2014rsquo
The Depositary Receipts Scheme dec 2014 goes effective December 15
6 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY
website
a decade of helping companies navigate change contact
Over the past 10 years the BNY Mellon Investor Relations Survey (ldquoIR Surveyrdquo) has served as a resource for companies navigating some of the most tumultuous periods in the global capital markets This research has also provided valuable insight for market stakeholders such as academics the media investors and regulators about how companies think about issues such as global systemic risk eurozone stability dark pools approaches to sovereign wealth funds and the rise of investment-focused environment social and governance (ESG) factors
Since 2004 more than 3000 respondents have participated in the IR Survey from more than 80 countries
Throughout the decade this research has tracked the development of the IR role from a tactical function to a strategic management practice The results have revealed the formalization of investor relations and in many cases demonstrated the value of the IR role up the chain of command
In recent years BNY Mellon has established relationships with leading academics at Cornell University and Harvard Business School for their use of IR Survey data for further research Our purpose in these relationships is to support research that may help quantify the per-share valuation boost that may be associated with investor relations best practices
Our many collaborative relationships with IR societies have strengthened the IR Survey and expanded participation for the most recent IR Survey we worked with 21 professional IR organizations in as many countries including the Uk Brazil Japan and around the world
7 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
contents
SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
4 the depositary receipt MarKet reView
contents
directory 2014 DEPOSITARY RECEIPT HIGHLIGHTS
website
Depositary Receipts are playing an increasingly contact
important role in global financial markets allowing companies and investors around the globe to connect seamlessly across borders
Highlights
159 billion DRs valued at $33 trillion traded
$38 billion raised through 59 DR offerings
77 new sponsored programs created
89 new unsponsored programs created
3742 total DR programs in existence
Sources BNY Mellon and other depositary websites Bloomberg and London Stock Exchange Includes both sponsored and unsponsored programs Statistics are as of December 31 2014 unless otherwise noted for further information please visit httpwwwadrbnymelloncomdr_directoryjsp
5 the depositary receipt MarKet reView
BNY Mellon issues Easing Conditions contents Mar 2013 paper outlining potential regulatory changes that would help attract foreign investment into the Indian market directory MARkET REfORM AND THE EVOLVING Sahoo Committee formed to review DEPOSITARY RECEIPT LANDSCAPE IN INDIA sep 2013 the fCCBrsquos and Ordinary Shares website (Through DR Mechanism) Scheme 1993
bny Mellon a committed partner in the contact
development of indiarsquos capital Markets
In 2014 BNY Mellon continued to be at the forefront of regulatory change as we worked to create new opportunities in India Starting in early 2013 BNY Mellon published a thought leadership paper entitled Easing Conditions which outlined potential regulatory changes that could attract foreign investment and open the Indian market to new investors
Shortly afterwards the Committee of Review of the fCCBs and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme chaired by MS Sahoo and known as the Sahoo Committee met to review the policy on foreign investment via DRs and BNY Mellon presented its findings to this committee After much deliberation the Sahoo Committee issued its reportsup1 and the Indian Ministry of finance liberalized depositary receipt regulations
To educate issuers investors and IR professionals on this new ruling BNY Mellon hosted a number of events explaining the new DR Scheme and its implications Participants learned that this new scheme will help further integrate Indiarsquos capital markets with the global markets and could usher in new opportunities for Indian corporates and markets
BNY Mellon has conducted business in India for more than 30 years and established Indiarsquos first DR program in 1992 We have been at the forefront of crafting innovative depositary receipt solutions for Indian issuers and remain committed to the Indian market
sup1 Report of the Committee to Review the fCCBs and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 Ministry of finance Government of India November 2013 httpfinminnicinreportsSahoo_Committee_Reportpdf
BNY Mellon presents its findings oct 2013 to the Sahoo Committee for easing conditions for investors
The Indian Ministry of finance May 2014 accepts the Sahoo Committee recommendations on liberalizing depositary receipts regulations
BNY Mellon hosts IR professionals JUn 2014 from top corporates across India for panel discussions on these new opportunities
BNY Mellon hosts 8th Annual DR sep 2014 Issuersrsquo Conference in Jaipur India
BNY Mellon hosts a seminar at the Bombay Stock Exchange to discuss the Sahoo Committee recommendations
BNY Mellon organizes an investor roundtable in New York with the participation of MS Sahoo the Indian Ministry of finance and the Securities and Exchange Board of India
Ministry of finance ratifies the noV 2014 lsquoDepositary Receipts Scheme 2014rsquo
The Depositary Receipts Scheme dec 2014 goes effective December 15
6 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY
website
a decade of helping companies navigate change contact
Over the past 10 years the BNY Mellon Investor Relations Survey (ldquoIR Surveyrdquo) has served as a resource for companies navigating some of the most tumultuous periods in the global capital markets This research has also provided valuable insight for market stakeholders such as academics the media investors and regulators about how companies think about issues such as global systemic risk eurozone stability dark pools approaches to sovereign wealth funds and the rise of investment-focused environment social and governance (ESG) factors
Since 2004 more than 3000 respondents have participated in the IR Survey from more than 80 countries
Throughout the decade this research has tracked the development of the IR role from a tactical function to a strategic management practice The results have revealed the formalization of investor relations and in many cases demonstrated the value of the IR role up the chain of command
In recent years BNY Mellon has established relationships with leading academics at Cornell University and Harvard Business School for their use of IR Survey data for further research Our purpose in these relationships is to support research that may help quantify the per-share valuation boost that may be associated with investor relations best practices
Our many collaborative relationships with IR societies have strengthened the IR Survey and expanded participation for the most recent IR Survey we worked with 21 professional IR organizations in as many countries including the Uk Brazil Japan and around the world
7 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
contents
SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
5 the depositary receipt MarKet reView
BNY Mellon issues Easing Conditions contents Mar 2013 paper outlining potential regulatory changes that would help attract foreign investment into the Indian market directory MARkET REfORM AND THE EVOLVING Sahoo Committee formed to review DEPOSITARY RECEIPT LANDSCAPE IN INDIA sep 2013 the fCCBrsquos and Ordinary Shares website (Through DR Mechanism) Scheme 1993
bny Mellon a committed partner in the contact
development of indiarsquos capital Markets
In 2014 BNY Mellon continued to be at the forefront of regulatory change as we worked to create new opportunities in India Starting in early 2013 BNY Mellon published a thought leadership paper entitled Easing Conditions which outlined potential regulatory changes that could attract foreign investment and open the Indian market to new investors
Shortly afterwards the Committee of Review of the fCCBs and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme chaired by MS Sahoo and known as the Sahoo Committee met to review the policy on foreign investment via DRs and BNY Mellon presented its findings to this committee After much deliberation the Sahoo Committee issued its reportsup1 and the Indian Ministry of finance liberalized depositary receipt regulations
To educate issuers investors and IR professionals on this new ruling BNY Mellon hosted a number of events explaining the new DR Scheme and its implications Participants learned that this new scheme will help further integrate Indiarsquos capital markets with the global markets and could usher in new opportunities for Indian corporates and markets
BNY Mellon has conducted business in India for more than 30 years and established Indiarsquos first DR program in 1992 We have been at the forefront of crafting innovative depositary receipt solutions for Indian issuers and remain committed to the Indian market
sup1 Report of the Committee to Review the fCCBs and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 Ministry of finance Government of India November 2013 httpfinminnicinreportsSahoo_Committee_Reportpdf
BNY Mellon presents its findings oct 2013 to the Sahoo Committee for easing conditions for investors
The Indian Ministry of finance May 2014 accepts the Sahoo Committee recommendations on liberalizing depositary receipts regulations
BNY Mellon hosts IR professionals JUn 2014 from top corporates across India for panel discussions on these new opportunities
BNY Mellon hosts 8th Annual DR sep 2014 Issuersrsquo Conference in Jaipur India
BNY Mellon hosts a seminar at the Bombay Stock Exchange to discuss the Sahoo Committee recommendations
BNY Mellon organizes an investor roundtable in New York with the participation of MS Sahoo the Indian Ministry of finance and the Securities and Exchange Board of India
Ministry of finance ratifies the noV 2014 lsquoDepositary Receipts Scheme 2014rsquo
The Depositary Receipts Scheme dec 2014 goes effective December 15
6 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY
website
a decade of helping companies navigate change contact
Over the past 10 years the BNY Mellon Investor Relations Survey (ldquoIR Surveyrdquo) has served as a resource for companies navigating some of the most tumultuous periods in the global capital markets This research has also provided valuable insight for market stakeholders such as academics the media investors and regulators about how companies think about issues such as global systemic risk eurozone stability dark pools approaches to sovereign wealth funds and the rise of investment-focused environment social and governance (ESG) factors
Since 2004 more than 3000 respondents have participated in the IR Survey from more than 80 countries
Throughout the decade this research has tracked the development of the IR role from a tactical function to a strategic management practice The results have revealed the formalization of investor relations and in many cases demonstrated the value of the IR role up the chain of command
In recent years BNY Mellon has established relationships with leading academics at Cornell University and Harvard Business School for their use of IR Survey data for further research Our purpose in these relationships is to support research that may help quantify the per-share valuation boost that may be associated with investor relations best practices
Our many collaborative relationships with IR societies have strengthened the IR Survey and expanded participation for the most recent IR Survey we worked with 21 professional IR organizations in as many countries including the Uk Brazil Japan and around the world
7 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
contents
SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
6 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY
website
a decade of helping companies navigate change contact
Over the past 10 years the BNY Mellon Investor Relations Survey (ldquoIR Surveyrdquo) has served as a resource for companies navigating some of the most tumultuous periods in the global capital markets This research has also provided valuable insight for market stakeholders such as academics the media investors and regulators about how companies think about issues such as global systemic risk eurozone stability dark pools approaches to sovereign wealth funds and the rise of investment-focused environment social and governance (ESG) factors
Since 2004 more than 3000 respondents have participated in the IR Survey from more than 80 countries
Throughout the decade this research has tracked the development of the IR role from a tactical function to a strategic management practice The results have revealed the formalization of investor relations and in many cases demonstrated the value of the IR role up the chain of command
In recent years BNY Mellon has established relationships with leading academics at Cornell University and Harvard Business School for their use of IR Survey data for further research Our purpose in these relationships is to support research that may help quantify the per-share valuation boost that may be associated with investor relations best practices
Our many collaborative relationships with IR societies have strengthened the IR Survey and expanded participation for the most recent IR Survey we worked with 21 professional IR organizations in as many countries including the Uk Brazil Japan and around the world
7 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
contents
SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
7 the depositary receipt MarKet reView
contents
directory BNY MELLONrsquoS GLOBAL INVESTOR RELATIONS SURVEY (continued)
website
the next step in ir research
االجتاهات العاملية في عالقات املستثمرين ndash اإلصدار اخلامس استطالع حتليلي لعالقات املستثمرين على النطاق العاملي
إيصاالت إيداع
يناير )كانون الثاني( 2009
THE BANK OF NEW YORKrsquoS
INVESTOR RELATIONS SURVEY 2004
Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide
Depositary Receipts
January 2009
Global Trends in Investor Relations A Survey Analysis of IR Practices Worldwide ndash Eighth Edition
2012
GLOBAL TRENDS IN INVESTOR RELATIONS 2013 A SURVEY ANALYSIS OF IR PRACTICES WORLDWIDE
NINTH EDITION
2012
DEPOSITARY RECEIPTS
TENDEcircNCIAS GLOBAIS EM RELACcedilOtildeES COM INVESTIDORES
UM ESTUDO ANALIacuteTICO DAS PRAacuteTICAS DE RI NO BRASIL
インベスターリレーションズのグローバルトレンド
日本におけるIR慣行の分析2013年
ГЛОБАЛЬНЫЕ ТЕНДЕНЦИИ ВО ВЗАИМОДЕЙСТВИИ С ИНВЕСТОРАМИ 2013АНАЛИЗ РЕЗУЛЬТАТОВ ИССЛЕДОВАНИЯ МЕТОДОВ ВЗАИМОДЕЙСТВИЯ С ИНВЕСТОРАМИ В РОССИИ И СТРАНАХ СНГ
contact Building on the influence of the IR Survey we are now working with the Newton Centre for Endowment Asset Management part of Cambridge Universityrsquos Judge Business School to produce another advance in IR research an in-depth exploration of materiality (that is information is considered material by investors for their investment decisions) and how companies can better meet those investorsrsquo expectations We expect to launch this next generation of thought leadership for the investor relations industry in 3Q2015
See the most recent IR Survey reports at httpwwwglobalirsurveycom
8 the depositary receipt MarKet reView
contents
SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
8 the depositary receipt MarKet reView
contents
SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS
In an effort to develop innovative solutions to meet individual and institutional investorsrsquo desire to diversify their portfolios globally BNY Mellon began developing ADR indices in the 1990s to support the ever-growing expansion of Exchange Traded Products (ETPs) We have added to the range of BNY Mellon DR Indices over the years responding to market demand as global markets have evolved
BNY Mellon has crafted Depositary Receipt (DR) Indices over the past 16 years many of which are linked to third-party investment products or used for benchmarking purposes Investors worldwide trust our DR indices we have over 140 indices calculated on a continuous basis throughout the day that span specific strategies regions countries and sectors
Indices are structured into six families and we can further customize additional indices to meet institutional client needs
directory
website
The indices are capitalization-weighted and contact
adjusted for free-float using SampP Dow Jones Indices methodology
Our BNY Mellon DR Indices are the benchmark for $1 billion in ETPs that trade on stock exchanges just like DRs
bny MeLLonrsquos depositary receipt index experience The most comprehensive index for tracking and benchmarking ADRs
Creation of the first American Depositary Receipt index family the BNY Mellon ADR IndexSM
Licensing for the first four BLDRS ETfs
The BNY Mellon BRIC (Brazil Russia India and China) Select ADR IndexSM
The BNY Mellon New frontier DR IndexSM
exchanGe-traded prodUct history
Creation of HOLDRsSM ndash Holding Company Depositary Receipts
12 sector baskets
Telebras HOLDRs
BLDRSSM ndash Baskets of Liquid Depositary Receipts
ADRA ndash Asia 50
ADRD ndash Developed Markets
ADRE ndash Emerging Markets
ADRU ndash Europe 100
GLDSM ndash first Gold ETf CBQSMndash first Canadian-listed ETf using BNY Mellon DR indices
EEBSM ndash first BRIC ETf
1996 1998 2002 2004 2006 2007
The BNY Mellon GDR family of IndicesSM
The BNY Mellon DR family of IndicesSM
fRNSM - first frontier ETf
korean ETf sponsor chooses BNY Mellon DR indices
2008
Source BNY Mellon internal data 2014
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
9 the depositary receipt MarKet reView
contents
directory SUPPORTING INVESTOR DEMAND fOR DEPOSITARY RECEIPTS (continued)
website
Our portfolio comprises sUpportinG oUr contact
depositary receipt indices composite depositary receipt indexsM bny Mellon classic adr indexsM
We dedicate significant resources to An all-encompassing index of the depositary receipts universe All ADRs traded either over-the counter (OTC) or on the NYSE or support BNY Mellon DR Indices and
NASDAQ Established 2009 our associated partners in order to bny Mellon adr indexsM
All ADRs traded on the New York Stock Exchange (NYSE) and otcM adr index provide transparency and broaden NASDAQ Established 1998 All ADRs that are quoted on the OTCQX OTCQB and OTC Pink access to information
marketplaces Established 2012 bny Mellon Gdr indexsM Visit our Index website httpwww All GDRs traded on the London Stock Exchange (LSE) otcM Qx adr 30 index adrbnymelloncomindex_familyjsp Established 2008 Top 30 ADRs by market cap traded in the OTCQX market place
Established 2014 bny Mellon dr indexsM
All DRs traded on the NYSE NASDAQ and LSE Established 2008
2009 2010 2011 2012 2013 2014
The BNY Mellon Classic OTCM ADR Index ADR IndexSM Powered by BNY Mellon
DR IndicesSM The BNY Mellon Composite Depositary Receipt IndexSM
Canadian ETf sponsor chooses BNY Mellon DR indices
Leveraged ETfs choose BNY Mellon indices
first actively managed ETf references Classic Index
Madrona International Active ETf
RBS China Trendpilot Exchange-Traded Note
VelocityShares Emerging Asia DR ETf
VelocityShares Russia Select DR ETf
VelocityShares Emerging Markets DR ETf
OTCM QX ADR 30 Index powered by BNY Mellon DR IndicesSM
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
2005 2008 2010 2013
100 DRs
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
10 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPTS YEAR-OVER-YEAR
website
new sponsored dr proGraMs totaL sponsored and Unsponsored dr proGraMs
LSELuxSE OtherUnlisted 4000 USshyListed Unsponsored
contact
200 LSELuxSE OTC USshyListed 3500
180 OTC
160 OtherUnlisted
45 28
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
3000
140 2500
120
2000100
80 1500
60 1000
40
500 20
0 337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
1116 1229 1391 1532 1600
0
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
77 new sponsored programs have been There are now 3742 total DR programs established compared to 85 in 2013 from over 75 countries
Source BNY Mellon and other depositary websites for further information please visit our DR directory at httpwwwadrbnymelloncomdr_directoryjsp
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
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website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
11 the depositary receipt MarKet reView
contents
directory MOST ACTIVE DEPOSITARY RECEIPT SECTORS
website
top 10 in 2014 by VaLUe (biLLions) top 10 in 2014 by VoLUMe (biLLions of shares)
sector 2014 VaLUe chanGe Vs 2013 sector 2014 VoLUMe chanGe Vs 2013
contact
Internet Software amp Services $6198 18770
Oil Gas amp Consumable fuels $4974 1667
Pharmaceuticals $3229 7337
Banks 286 3546
Oil Gas amp Consumable fuels 275 1877
Metals amp Mining 197 887
Semiconductors amp Semiconductor Equipment 112 -3450
Internet Software amp Services 104 14068
Communications Equipment 79 -4964
Wireless Telecommunication Services 62 -1384
Internet amp Catalog Retail 58 28671
Pharmaceuticals 51 4230
Beverages 40 15610
Metals amp Mining $2898 -081
Banks $2876 900
Semiconductors amp Semiconductor Equipment $1716 -276
Wireless Telecommunication Services $1551 -1673
Internet amp Catalog Retail $1376 26583
Beverages $889 4223
Communications Equipment $568 -2061
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
12 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT LIQUIDITY
website
top 5 Us-Listed depositary receipt proGraMs by VaLUe
dr issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Alibaba Internet Software amp Services China NYSE $2093 21
Baidu Internet Software amp Services China NASDAQ $1808 09
Petrobras Oil Gas amp Consumable fuels Brazil NYSE $1051 109
Vale Metals amp Mining Brazil NYSE $956 79
BP Oil Gas amp Consumable fuels United kingdom NYSE $697 15
top 5 Us otc-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(MiLLions)
Roche Pharmaceuticals Switzerland OTCQX $103 2839
Siemens Pharmaceuticals Germany OTC $91 726
Nestle food Products Switzerland OTC $91 1209
Tokyo Electron Semiconductors amp Equipment Japan OTC $51 3223
Softbank Wireless Telecommunication Japan OTC $46 1275
top 5 iob-traded depositary receipt proGraMs by VaLUe
issUer indUstry coUntry tradinG VenUe VaLUe traded
(biLLions) VoLUMe traded
(biLLions)
Gazprom Oil Gas amp Consumable fuels Russia LSE $539 74
Sberbank Commercial Banks Russia LSE $444 53
Lukoil Oil Gas amp Consumable fuels Russia LSE $392 07
Norilsk Nickel Industrial Metals amp Mining Russia LSE $224 12
Rosneft Oil Gas amp Consumable fuels Russia LSE $176 27
Source Bloomberg and London Stock Exchange Includes both sponsored and unsponsored DR programs
contact
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
13 the depositary receipt MarKet reView
SPONSORED AND UNSPONSORED MARkET
totaL sponsored dr proGraMs
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
top 5 sectors aLL Unsponsored dr proGraMs
133
General Retailers
98 85 70 60
financial Construction Oil amp Gas Real Estate Services Materials Producers Investment
amp Services
Source BNY Mellon and other depositary websites Bloomberg Sector Classifications
77 contents
directory In 2014 77 new sponsored programs were established compared with 85 in 2013
website
contact 2142 There are now 2142 sponsored programs
60 BNY Mellon has a 60 market share of all sponsored programs
65 89 OTC unsponsored programs were established in 2014 BNY Mellon was the sole depositary for 58 (65) of these programs
41 Overall there are a total of 1600 effective unsponsored programs BNY Mellon is the sole depositary for 41 of these programs
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
14 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS
website
In 2014 BNY Mellon released a study top north aMerican Metro centers for internationaL contact Insights into North American Investorsrsquo eQUity assets Under ManaGeMent (eaUM)
Views of Corporate Access examining how the North American investment community perceives its current access to companies outside the US and Canada
According to the study North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms
In an effort to help companies understand investor appetite the study provides an insight into the views of internationally focused investment managers while identifying where potential investors are simply not getting adequate access to international issuers
Metro center region total eaUM
(billions) international
eaUM (billions) dr Value (billions)
number of investors
number of dr investors
New York NY Northeast $40925 $7436 $1810 901 624
Boston MA Northeast $22581 $4738 $634 201 163
Los Angeles CA Pacific $13138 $4235 $545 133 98
San francisco CA Pacific $5799 $1604 $492 180 127
Toronto CAN Canada $6869 $1217 $133 113 82
Chicago IL Midwest $5999 $1217 $145 139 105
Baltimore MD South $5515 $551 $113 32 27
kansas City MO Midwest $2322 $479 $80 30 27
Albuquerque NM West $633 $468 $92 4 4
Houston TX South $2448 $424 $106 52 40
Montreal CAN Canada $1778 $404 $36 26 20
Philadelphia PA Northeast $2134 $331 $124 101 84
Orlando fL South $1098 $289 $43 67 52
Denver CO West $1438 $211 $38 40 31
Dallas TX South $1950 $205 $114 66 48
Rochester NY Northeast $473 $151 $34 17 15
Source Insights Into North American Investorsrsquo Views Of Corporate Access Identifying Opportunities for Expanding Investor Connectivity for Global Companies BNY Mellon 2014 httpwwwadrbnymelloncomteamsite_contentDocumentsfilesDRCorpAccessPaperAug14v9pdf
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0 10 20 30 40 50 60
Improve Transparencyamp Disclosure
Detailed Discussion ampSupportive Examples
Meetings wSenior Executives
More Points of Contact
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
LSELuxSE
USshyListed
OTC
OtherUnlisted
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2005 2008 2010 2013
100 DRs
LSELuxSE
USshyListed
OTC
OtherUnlisted
Unsponsored
0
200
400
600
800
1000
1200
1400
1600
00
5000
10000
15000
20000
25000
30000
Primary Location EAUM (International)Secondary Location EAUM (International)Primary Location InstitutionsSecondary Location Institutions
EAU
M (i
nter
nati
onal
) ($B
)
o
f Ins
titu
tion
s
153 113 139 146
54 98
162
298
0
50
100
150
200
250
300
350
400
450
500
Tier 1 Tier 2 Tier 3 Tier 4
o
f Inv
esto
rs
4528
9 11 3
41
16
15 19 23
72
74
48 39 43
21
19
12 16 8
0
20
40
60
80
100
120
140
160
180
200
337 362 370 343 303
397 403 396 392 385
794 829 845 842 851
689 695 676 654 603
11161229 1391 1532 1600
0
500
1000
1500
2000
2500
3000
3500
4000
PAGE 7
PAGE 12
PAGE 15
PAGE 18
PAGE 29
370 343 303
396 392 385
845 841 851
676 654 603
2012 2013 2014
LSELuxSE USshyListed OTC OtherUnlisted
MARKET SHARE OF SPONSORED DR PROGRAMS
ASIA PACIFIC PROGRAMS
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
EUROPE MIDDLE EAST amp AFRICA PROGRAMS
61 7 20 12
LATIN AMERICA PROGRAMS
70 16 8 6
ALL PROGRAMS
60 13 15 12
OtherUnlisted OTC USshyListed LSELuxSE
15 the depositary receipt MarKet reView
contents
directory INSIGHTS INTO NORTH AMERICAN INVESTORSrsquo VIEWS Of CORPORATE ACCESS (continued)
website
trends in the north aMerican inVestor Landscape how issUers can iMproVe corporate access for inVestMent ManaGers
Primary Location EAUM (International) Secondary Location EAUM (International) Primary Location Institutions Secondary Location Institutions
30000 1600
140025000 More Points of Contact
contact
2005 2008 2010 2013
EAU
M (i
nter
nati
onal
) ($B
)
1200
20000
o
f Ins
titu
tion
s
1000 Meetings w Senior Executives
Detailed Discussion amp Supportive Examples
15000 800
600 10000
400 Improve Transparency
5000 amp Disclosure200
00 0 0 10 20 30 40 50 60
Primary investment cities are considered to be New York NY Boston MA and San francisco and Los Angeles CA
Secondary investment cities include North American cities other than New York City Boston MA and San francisco and Los Angeles CA Examples from the study population include Baltimore MD Chicago IL Columbus OH Dallas TX Philadelphia PA and Toronto ON
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
16 the depositary receipt MarKet reView
contents
directory INSTITUTIONAL DEPOSITARY RECEIPT OWNERSHIP
Values are in billions of US dollars
north aMerica
$6476 DR Value Held
$439 YoY Value Change
2714 Institutional Holders
MiddLe east amp africa
$42 DR Value Held
$08 YoY Value Change
104 Institutional Holders
asia pacific
$407 DR Value Held
$95 YoY Value Change
400 Institutional Holders
eUrope
$1773 DR Value Held
- $28 YoY Value Change
1318 Institutional Holders
Latin aMerica
$63 DR Value Held
$17 YoY Value Change
70 Institutional Holders
Source IPREO as of September 30 2014
website
contact
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
17 the depositary receipt MarKet reView
contents
directory
website
contact
Section 2 2015 Outlook
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
directory
website
contact
Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
18 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk
policy divergence wonrsquot derail expansion
The long-anticipated normalization of monetary policy by the federal Reserve and Bank of England could finally arrive in 2015 But BNY Mellon Chief Economist Richard Hoey and Chief Global Markets Strategist John Malvey say policy divergence among developed country central banks will be only one force affecting the global economy and financial markets in 2015 in this article from BNY Mellon Markets 2015
John V Malvey Chief Global Markets Strategist
richard b hoey Chief Economist
for the past three years global economic growth has advanced slowly and unevenly averaging nearly 3 but with some regions such as the eurozone performing less strongly than others While that uneven pattern of growth is likely to continue in 2015 BNY Mellon Chief Economist Richard Hoey expects somewhat stronger overall growth in the new year as the expansion of the US and global economies accelerates and central banks in the US and Uk normalize policy
ldquoStimulative monetary policies have generated only sluggish growth so far in this expansion due to a combination of drags from fiscal tightening private sector deleveraging and restrictive financial regulationrdquo he says ldquoSubstantial fiscal tightening has already occurred in most developed countries and is likely to prove less of a drag over the next several years Debt burdens remain high in Europe and China but US households have substantially reduced their debtrdquo Hoey expects US real GDP growth of about 3 and real growth plus inflation of about 5 in the US for the next several years
Like many capital market professionals Hoey identifies the divergence of monetary policy among central banks in developed countries as a defining feature of the global economy in 2015 with the European Central Bank (ECB) and the Bank of Japan (BoJ) maintaining easing policies while the federal Reserve and the Bank of England (BoE) gradually normalize interest rates by tightening policy
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website
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Policy normalization though will likely be only one factor affecting financial markets for equities Chief Global Markets Strategist John Malvey says policy divergence means relatively little ldquoThe central bank theme has been overdone in capital market coverage and media Historically some banks are always tightening while others are loosening Capital markets will be driven by many factorsrdquo says Malvey
Malvey says corporate earnings will be among the key drivers of equity market performance in 2015 and he expects them to rise by 6 to 8 Merger and acquisition activity abetted partly by hedge funds and partly by companies doing strategic acquisitions is also likely to push equity valuations higher ldquoThe cost of debt capital is low and should remain low so itrsquos a fairly ideal time to make acquisitions because both equity and debt financing are available and relatively inexpensiverdquo he says
Another factor in equitiesrsquo favor in 2015 may be the relatively modest opportunities offered by other asset classes ldquoTen-year Treasuries at 210 or 250 are unappealing on an after-tax basisrdquo says Malvey ldquoMunicipal bonds offering effective yields of 2 or 3 are also unappealing compared to the potential return from good strong companies paying dividendsrdquo Despite the positives for equities Malvey expects markets to turn more volatile than they have been in the past three years ldquoA typical characteristic of the middle of
Policy Divergence Wonrsquot Derail Expansion BNY Mellon Markets 2015 httpwwwbnymellonimoutlookcommedia72301BNYM-Markets-Brochure-2015-finalpdf
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
19 the depositary receipt MarKet reView
contents
GLOBAL MARkETS OUTLOOk (continued)
the business cycle is that markets become increasingly The speed with which interest rates rise will be help explain the dollarrsquos rise in 2014 and they should choppy Markets gave a taste of that when they turned determined partly by inflation expectations Hoey sees contribute to a further rise in 2015rdquo volatile in Octoberrdquo he says Malvey also notes that equity the global economy beginning 2015 with underlying
Another effect of the stronger dollar Malvey notes is market performance will naturally vary across the world inflation below the targets set by all four of the G4 that earnings of US multinationals will be somewhat with some emerging markets likely to fare well and the central banks ldquoOur expectation is that underlying dampened by the stronger dollar ldquoA stronger dollar will eurozone likely to lag inflation will rise to or above target over the coming years also slow US export growth while hopefully stimulating in both the US and Uk The underlying inflation rate
Central bank policy will play more of a role for fixed European economiesrdquo he adds ldquoMeanwhile Japan will should drift higher in both Japan and Europe but remain income markets than for equities ldquofixed income continue managing the yen to encourage exportsrdquo below target for the next several yearsrdquo securities in 2015 will have impetus from central banks
Even more difficult to anticipate says Malvey will be the pushing for higher rates and demand from some foreign exchange is another area affected by changes in geopolitical risks that may affect markets in the New investors for high-quality securities that have even a monetary policy Hoey and Malvey both expect the US Year ldquoNeither the rise of the Islamic State the conflict meager couponrdquo says Malvey ldquoBy the end of 2015 dollar to strengthen over the coming year ldquoMonetary between Russia and Ukraine nor the spread of Ebola ten-year Treasurys could be in the range of 250-325rdquo policy divergence will likely contribute to the basic dollar were forecast at the beginning of 2014 but each exerted We feel fairly comfortable that the federal funds rate uptrend and be accompanied by widening interest rate a pull on markets during the year that followedrdquo will be higher at the end of 2015 than at the beginning spreads as US and Uk rates rise and the ECB and BoJrsquos
of 2014 Itrsquoll stop somewhere between 2 and 3 over balance sheets grow relative to those of the fed and the course of the next two to three years depending on the BoErdquo says Hoey ldquoCurrency weakness in countries the actual vigor of the US economyrdquo Hoey also expects with weak growth and currency strength in countries interest rate normalization to be a multiyear process in with strong growth should help rebalance global growth developed countries gradual enough to not disrupt and inflation The US dollar should also benefit from the sustained economic expansion continuing rise in US energy production These factors
The information in this document is not intended to be investment advice and it may be deemed a financial promotion in non-US jurisdictions Accordingly where this document is used or distributed in any non-US jurisdiction the information provided is for Professional Clients only This material is not for onward distribution tom or to be relied upon by Retail Clients Any statements and opinions expressed in this document are correct as at the date of publication are subject to change as economic and market conditions dictate and do not necessarily represent the view of BNY Mellon or any of its affiliates The information contained in this document has been provided as a general market commentary only and does not constitute legal tax accounting other professional counsel or investment advice is not predictive of future performance and should not be construed as an offer to sell or a solicitation to buy any security or make an offer where otherwise unlawful The information has been provided without taking into account the investment objective financial situation or needs of any particular person BNY Mellon and its affiliates are not responsible for any subsequent investment advice given based on the information supplied This document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis To the extent that these materials contain statements about future performance such statements are forward looking and are subject to a number of risks and uncertainties Information and opinions presented in this material have been obtained or derived from sources which BNY Mellon believed to be reliable but BNY Mellon makes no representation to its accuracy and completeness BNY Mellon accepts no liability for loss arising from use of this material If nothing is indicated to the contrary all figures are unaudited Any indication of past performance is not a guide to future performance The value of investments can fall as well as rise so you may get back less than you originally invested This document is not intended for distribution to or use by any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation This document 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 investment products and services mentioned are not insured by the fDIC (or any other state or federal agency) are not deposits of or guaranteed by any bank and may lose value
directory
website
contact
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
20 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015
BNY Mellon recently surveyed securities analysts and portfolio managers of large buy-side institutions for their outlook on global equity markets Below are some of the key findings
1 a bullish outlook for 2015 A majority (64) believe the investment appeal of the equity markets studied will either increase or stay the same over the course of the year
2 signs that appetite for risk May increase in 2015 A higher number say their tolerance for risk will be higher for 2015 than those assessing 2012-2014 (figure 1)
3 increased enthusiasm for equity Markets Of those expressing opinions on regions 65 expected the investment appeal of Latin American markets to increase or stay the same in 2015 while only 35 rated them currently attractive or very attractive and 79 said Asia-Pacific markets would increase in investment appeal or stay the same versus the 57 who viewed them as currently very attractive or attractive Lastly 68 had expectations that EEMEA markets would increase or maintain their investment appeal in 2015 while in 2014 only 17 considered EEMEA markets as very attractive or attractive (figure 2)
4 stability of current equity allocations and approach to fundamentals A majority say their commitment to equity investments will stay the same in 2015 despite general calls to broaden allocations An even larger majority say the ldquonoiserdquo around generating short-term results has no impact on their focus on fundamentals or their overall investment approach (figure 3)
website
fiGUre 1 contact
Among Top 100 Buy-side Institutions December 2014
chanGe in inVestorsrsquo risK toLerance
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Learn more about the insights from this survey in the full report forthcoming from BNY Mellon in 1Q15
sup1fifty-two investment professionals were interviewed by Rivel between December 8 and 31 2014 38 were from North America and 14 from Europe comprising 28 portfolio managers and 24 buy-side analysts The North American and European institutions for which they work are among the top 100 buy-side institutions in terms of equity assets under management as determined by Thomson Reuters
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
21 the depositary receipt MarKet reView
contents
directory INVESTOR OUTLOOk fOR 2015 (continued)
website
fiGUre 2 fiGUre 3 contact
Among Top 100 Buy-side Institutions December 2014 Among Top 100 Buy-side Institutions December 2014
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
Noexpectations for inVestMent appeaL of VarioUs Will increasing calls Yes eQUity MarKets in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
for broader asset Uncertain
allocation impact your commitment to equity investments in 2015
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
cUrrent attractiVeness of VarioUs eQUity MarKets Has the need to trade No
Increase
Decrease
No change
Uncertain
Very attractive (ratings of 8-10)
Attractive (6 7)
Not too attractive (ratings of 1-5)
Uncertain
No
Yes
Uncertain
No
Yes
Uncertain
IMAGE 1
IMAGE2
IMAGE3
INVESTMENT ATTRACTIVENESS OF EMERGING MARKETS EQUITY MARKETSCURRENT (DECEMBER 2014)
EXPECTIONS FOR 2015
WILL INCREASING CALLS FOR BROADER ASSET ALLOCATION HAVE AN IMPACT ON YOUR COMMITMENT TO EQUITY INVETMENTS IN 2015
HAS THE NEED TO TRADE AROUND NEWS AND NOISE -- AND THE NEED TO GENERATE SHORT-TERM RESULTS--HAD AN IMPACT ON YOUR FOCUS ON FUNDAMENTALSOVERALL INVESTMENT APPROACH
8 6
48 56
27 15
17 23
Between 2012 and 2014 Expected during 2015
Asia-Pacific
EEMEA
Latin America
Asia-Pacific
EEMEA
Latin America
2
4 13 62 21
17264413
25
12 56 13 19
1744435
41 15 19
33 46 19
15
27
58
4
86
10
Increase
Stays the same
Decrease
Uncertain
Very attractive(Ratings of 8-10)
Attractive(Ratings of 6 7)
Not too attractive (Ratings of 1-5)
Uncertain
Increase Stays the same Decrease Uncertain
Increase Decrease No change Uncertain
around news and Yes ldquonoiserdquomdashand the Uncertain need to generate short-term resultsmdash impacted your focus on fundamentalsoverall investment approach
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
contents
directory
website
contact
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
23 the depositary receipt MarKet reView
contents
directory
website
contact
Section 3 Regional Reviews
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
contents
directory
24 the depositary receipt MarKet reView
$6088 Internet Software amp Services
V 108 P 27
$1257 Semiconductors
V 102 P 36
$442 Hotels Restaurants amp Leisure
V 13 P 28
$532 Metals amp Mining
V 10 P 51
$1373 Internet amp Catalog Retail
V 58 P 12
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
Australia
Other
Japan
India
Taiwan
China
438
VoLUMe traded (biLLions)
267
27 17
34
40
53
$1268
VaLUe traded (biLLions)
$8920
$998 $53
$674
$779
$781
Hong kong
Other
Japan
Taiwan
India
China
ASIA PACIfIC
$68
$209 $181
$56 $48
top 5 dr proGraMs by VaLUe traded (biLLions)
Alibaba
VALUE
Baidu
Qihoo 360Technology
Taiwan Semiconductor Manufacturing
Vipshop
08
20
28
09
08
VOLUME
$60 $39 $22
$9 $8
top 5 dr proGraMs by dr MarKet cap (biLLions)
ICICI Bank
Ctripcom International
Taiwan Semiconductor Manufacturing
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
Baidu
Alibaba
website
contact
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
contents
directory
25 the depositary receipt MarKet reView
EUROPE MIDDLE EAST amp AfRICA
$3178 Pharmaceuticals
V 48 P 29
$3051 Oil Gas amp Consumable foods
V 152 P 49
$1365 Banks
V 169 P 77
$1217 Metals amp Mining
V 75 P 65
$909 Wireless Telecommunication
V 38 P 15
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
$1410
VaLUe traded (biLLions)
$4317
$3044
$681
$723
$731
$826 $1064
$2719
france
Ireland
Israel
Other
Switzerland
Netherlands
Russia
United kingdom
697
VoLUMe traded (biLLions)
267
144
29
29
31
43
47 107
South Africa
Spain
Netherlands
Other
france
finland
United kingdom
Russia
$43 $39 $38 $29 $27
top 5 dr proGraMs by dr MarKet cap (biLLions)
Royal Dutch Shell
Teva Pharmaceuticals
BP
Novartis
Lukoil
top 5 dr proGraMs by VaLUe traded (biLLions)
BP Teva Pharmaceuticals
Royal Dutch Shell
Vodafone Shire
$70 $65
$606 $605 $605
VALUE
VOLUME
17
15 13
08 03
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
contents
directory
26 the depositary receipt MarKet reView
$21 $14 $13 $11 $11
top 5 dr proGraMs by dr MarKet cap (biLLions)
Petrobras
Vale
Itau Unibanco
America Movil
Grupo Televisa
LATIN AMERICA
$1725 Oil Gas amp Consumable foods
V 118 P 8
$1147 Metals amp Mining
V 111 P 10
$1072 Banks
V 81 P 18
$365 Wireless Telecommunication
V 16 P 3
$361 Construction Materials
V 29 P 7
top sectors by dr VaLUe traded (biLLions) V DR VOLUME IN BILLIONS p DR PROGRAMS
222931
80 110
Petrobas Vale
Itau Unibanco
Cemex Bradesco
$150 $95
$44 $36 $32
$6010
VaLUe traded (biLLions)
$4440
$337
$218
$1015
Other
Argentina
Mexico
Brazil
VoLUMe traded (biLLions)
Other
Argentina
Mexico
Brazil
VALUE
VOLUME
top 5 dr proGraMs by VaLUe traded (biLLions)
461 380
55
16
10
Source Bloomberg London Stock Exchange and International Data Corporation Includes sponsored and unsponsored programs Value = number of DRs traded multiplied by DR price at trade Volume = number of DRs traded during the period
website
contact
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
27 the depositary receipt MarKet reView
contents
directory
website
contact
Section 4 BNY Mellon Depositary
Receipt Leadership
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
28 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP
website
We are the worldrsquos largest MarKet share of sponsored dr proGraMs contact
provider of depositary receipt programs and hold dominant market share across various categories Our Depositary Receipts team focuses on making cross-border investing more convenient We deliver a comprehensive suite of depositary receipt services to help extend borderless trading and investment We do it as a dedicated partner committed to your success
PAGE 29
MARKET SHARE OF SPONSORED DR PROGRAMS
Asia Pacific Programs
54 21 14 11
BNY Mellon Citibank Deutsche Bank JPMorgan
Source BNY Mellon and other depositary websites
Europe Middle East amp Africa Programs
61 7 20 12
Latin America Programs
70 16 8 6
All Programs
60 13 15 12
Source BNY Mellon and other depositary websites
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
29 the depositary receipt MarKet reView
contents
directory DEPOSITARY RECEIPT MARkET LEADERSHIP (continued)
15-year sUccessorship history1
+25
130 BNY Mellon
deutsche bank 75
+48
JpMorgan chase 62
+57
citibank 53
1Source BNY Mellon and other depositary websites Numbers outside circles = Switches to BNY Mellon Numbers inside circles = Total Switches 2Source Bloomberg and London Stock Exchange Volume = number of DRs traded during the period
website
top 10 Most actiVeLy traded proGraMs (biLLions)2 contact
coMpany VoLUMe traded depositary
Petrobras 1097 BNY Mellon
Vale 792 JPMorgan
Gazprom 739 BNY Mellon
Sberbank 530 BNY Mellon
Nokia 469 Citibank
VTB Bank 423 BNY Mellon
Ambev 321 BNY Mellon
Itau Unibanco 311 BNY Mellon
Cemex 291 Citibank
Vipshop 280 Deutsche Bank
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
30 the depositary receipt MarKet reView
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS
new york
Christopher kearns CEO Depositary Receipts Phone +1 212 298 1240 christopherkearnsbnymelloncom
Nuno Da Silva Latin America Phone +1 212 815 2233 nunodasilvabnymelloncom
Robert Goad Global Client Solutions Phone +1 212 815 8257 robertgoadbnymelloncom
Anthony Moro Europe Middle East amp Africa Phone +1 212 815 5838 anthonymorobnymelloncom
Veronica Westberg DR Market Solutions Phone +1 212 815 2358 veronicawestbergbnymelloncom
Latin america
bUenos aires Maria de la Cruz Solares Phone +54 11 4348 2501 mariasolaresbnymelloncom
Mexico city Paulina Trueba Phone +52 55 3544 0237 paulinatruebabnymelloncom
satildeo paULo Claudia Biolchini Phone +55 11 3050 8391 claudiabiolchinibnymelloncom
europe
London James T Green EMEA Regional Manager Phone +44 207 163 7117 jamestgreenbnymelloncom
Graham Marshall EMEA Business Development Phone +44 207 163 7512 grahammarshallbnymelloncom
franKfUrt Thomas Brand Phone +49 69 120 141 030 thomasbrandbnymelloncom
Madrid Cesar Valcarcel Phone +34 91 177 5126 cesarvalcarcelbnymelloncom
MiLan Adriana Pierelli Phone +39 02 8790 9823 adrianapierellibnymelloncom
website
contact
Moscow Irina Baichorova Phone +7 495 967 3110 irinabaichorovabnymelloncom
paris Benjamin Brisedou Phone +33 1 70 71 10 13 benjaminbrisedoubnymelloncom
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
31 the depositary receipt MarKet reView
honG KonG Neil Atkinson Phone +852 2840 9875 neilatkinsonbnymelloncom
kammy Yuen Phone +852 2840 9872 kammyyuenbnymelloncom
banGKoK Artit Srinkapaibulaya Phone +662 250 9482 artitsrinkapaibulayabnymelloncom
beiJinG Alex Cai Phone +86 10 8800 7581 alexcaibnymelloncom
JaKarta Mirasari Djunaidi Phone +62 21 2550 2001 mirasaridjunaidibnymelloncom
KUaLa LUMpUr Alvin kwan Phone +60 3 2166 2686 alvinkwanbnymelloncom
MeLboUrne Anthony Sprenger Phone +61 3 9640 3907 anthonysprengerbnymelloncom
MUMbai Aparna Salunke Phone +91 22 3028 2312 aparnasalunkebnymelloncom
seoUL Won Jae Yun Phone +82 2 6137 0202 wonyunbnymelloncom
shanGhai kathy Lu Phone +86 21 3866 1103 kathylubnymelloncom
abU dhabi Rajai Ayyash Phone +971 2 626 3008 rajaiayyashbnymelloncom
beirUt Bana Akkad Azhari Phone +9611 988 788 banaakkadbnymelloncom
cairo Hana Moharam Phone +1 2023 53 1 1400 hanamoharambnymelloncom
dUbai Tarek Sherlala Phone +971 4 425 2511 tareksherlalabnymelloncom
istanbUL Cihat Takunyaci Phone +90 212 381 7514 cihattakunyacibnymelloncom
JohannesbUrG Lauren De klerk Phone +27 112 177162 laurendeklerkbnymelloncom
Middle east amp africa asia pacific
sinGapore Gregory Roath Phone +65 6432 0220 gregoryroathbnymelloncom
taipei Serena Lin Phone +886 2 2775 0749 serenalinbnymelloncom
toKyo kainoshin Hara Phone +813 6756 4327 kainoshinharabnymelloncom
contents
directory BNY MELLON DEPOSITARY RECEIPT CONTACTS (continued)
website
contact
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved
bnymelloncom 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 Dec 31 2014 BNY Mellon had $285 trillion in assets under custody andor administration and $17 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 wwwbnymelloncom or follow us on Twitter BNYMellon 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 Uk 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 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 copy2015 The Bank of New York Mellon Corporation All rights reserved