The Depositary Receipt Markets

2010 Mid-Year Market Review

Whos helping you?

Michael Cole-Fontayn
Chief Executive Officer,
Depositary Receipts Division

BNY Mellon demonstrated its strategic focus on innovation in the

financial markets by acting as structural advisor to the U.K. bank Standard
Chartered when it became the first company to list an Indian depositary
receipt program in India and the first non-Indian company to sell shares
(in the form of Indian depositary receipts) directly to Indian investors.

Dear Clients and Friends,

The numbers are inU.S. investors have returned to overseas investing with a
passion, and thats reflected strongly in the world of depositary receipts. In the
first half of 2010, depositary receipts showed their remarkable strength as a
vehicle for international investing as both worldwide trading value and volume
reached all-time highs. During the first six months of 2010, 78.1 billion DRs,
valued at $1.84 trillion, traded on U.S. and non-U.S. markets and exchanges, an
increase of 8.3% and 41.5%, respectively, from the same time last year. These
numbers are in dramatic contrast to last years.

During the first six months

of 2010, BNY Mellon grew
its depositary leadership
position across many
metrics, acting for 59%
of all new sponsored
DR programs and 83%
of all DR capital-raising
transactions.

The increase in DR trading value and volume can be traced to the upsurge in U.S.
investment in non-U.S. equities. In the first six months of 2010, the total value of
U.S. investment in non-U.S. equities (both DRs and non-U.S. shares) increased a
remarkable 68% to about $4.2 trillion. Non-U.S. equities accounted for 19.8% of all
equity investment in the U.S., an increase from 18.4% at the same time last year.
Emerging markets dominated the depositary receipt scene in the first half of
2010, especially the BRIC countriesBrazil, Russia, India and China. India and
China led new DR program establishment and DR capital raisings, and the two
most actively traded DR programsVale and Petrobraswere both from Brazil.
During the first six months of 2010, BNY Mellon grew its depositary leadership
position across many metrics, acting for 59% of all new sponsored DR programs
and 83% of all DR capital-raising transactions. BNY Mellon acts as depositary for
63% of all sponsored DR programs globally.
As a global strategic advisor, BNY Mellon distinguished itself by supporting major
international corporate events for companies such as VimpelCom, Rusal, and
Telmex Internacional, all of which are described in greater detail on pages 10-11.
In June, BNY Mellon demonstrated its strategic focus on innovation in the
financial markets by acting as structural advisor to the U.K. bank Standard
Chartered when it became the first company to list an Indian depositary receipt
program in India and the first non-Indian company to sell shares (in the form of
Indian depositary receipts) directly to Indian investors.
We look forward to continuing our tradition of growth and innovation in 2010 and
to supporting our clients by further integrating the worlds markets.

Michael Cole-Fontayn
1

Depositary Receipt Market Highlights

Table of Contents

American and global depositary receipt (DR) trading volume increased

8.3% to 78.1 billion, a record high.

Depositary Receipt Market Highlights

Depositary Receipt Establishment

During the first six months of 2010, $1.84 trillion of DRs traded on
U.S. and non-U.S. markets and exchanges, a record high and a 41.5%
increase year-over-year.

Depositary Receipt Trading

The total value of U.S. investment in non-U.S. equities (both DRs and
non-U.S. shares) increased 68% to about $4.2 trillion. At the same

time, non-U.S. equities accounted for 19.8% of all equity investment in

Depositary Receipt Capital Raisings

Depositary Receipt Institutional Demand

International Investing Trends

the U.S., an increase from 18.4% at the same time last year.

6
7

The BNY Mellon Depositary Receipt Indices

BNY Mellons Depositary Receipt Leadership

10

At the mid-year mark, companies from 19 countries had established

64 new sponsored DR programs, and 50 new unsponsored DR
programs had been established for issuers from 15 countries. The
number of available DR programs rose to 3,214 from 3,096 a year
ago. Industry-wide, DR programs for issuers from 76 countries were
available to investors.

The number of DR capital-raising transactions was significantly higher

than the 13 at the mid-year mark last year. In the first half of 2010,

BNY Mellon Depositary Receipt Contacts

12

issuers from nine countries completed 44 new primary and followon DR offerings, raising nearly $4.1 billion. India and China together
accounted for 34 of the offerings and about half the total value raised.

During the first half of 2010, overall DR performance as evidenced by

The BNY Mellon ADR Index was broadly lower. On June 30, 2010,
the Composite ADR Index closed at 152.86, down 15.76% year-todate, while still managing a 4.71% gain year-on-year.

The BNY Mellon ADR Index is a service mark owned by The Bank of New York Mellon Corporation.

Depositary Receipt Establishment

New Sponsored and Unsponsored DR Program Establishment
During the first half of 2010, 64 new sponsored programs for

first half of 2010, one issuer, the U.K.s Britvic, chose to list its

issuers from 19 countries were established, an increase of 25

DR program on the OTCQX platform.

programs from the same period last year. Of 2010s new DR

programs, 30 were listed on stock exchanges 11 in the United
States and 19 in Europe. The remaining DR programs traded on
various OTC markets.

In first half of 2010, 50 new unsponsored DR programs were

established for issuers from 15 countries, bringing the total
number of unsponsored DR programs to 1,080 at the midyear mark. In 2010, notable issuers that converted their

India led with 18 new programs, followed by nine from China,

unsponsored DR programs to sponsored programs included

five from Russia and four each from Australia, Brazil, Japan and

Denmarks Carlsberg and Japans Takeda Pharmaceutical.

the U.K. Of the U.S. OTC-traded programs established in the

New Depositary Receipt Programs

New Depositary Receipt Programs

By Type

By Country, 1H 10

200
150
18

100

India

50

China

32

0
'01

'02

'03

'04

U.S.-Listed

'05

'06

'07

OTC-Traded

'08

09

Russia

1H 10*
9

GDR

Others

* Note: 2010 represents half-year figures.

Total Sponsored and Unsponsored DR Programs

The number of available DR programs rose to 3,214 from 3,096

followed by Japan with 272 and the U.K. with 239. China came

a year ago, largely due to recent changes in U.S. regulations

close behind with 232, with Russias 219 completing the top

that make it easier to establish over-the-counter-traded DR

five. Industry-wide, DR programs from issuers in 76 countries

programs. India remained the country with the largest number

were available to investors at the half-year mark.

of DR programs with 302 (all of which were sponsored),

Total Depositary Receipt Programs

Total Depositary Receipt Programs

By Type

By Country, 1H 10

3,500
3,000
2,500
2,000
1,500
1,000
500
0

302
272
239
1,987
'01

'02

'03

'04

U.S.-Listed

'05

'06

'07

OTC-Traded

'08

09
GDR

234

1H 10*
190

India
Japan
UK
China
Russia
Others

* Note: 2010 represents half-year figures.

Source: BNY Mellon. All figures as of June 30, 2010.

New depositary receipt program statistics exclude successor programs. Total depositary receipt statistics include all active programs and count each bifurcated GDR separately.

Depositary Receipt Trading

American and global depositary receipt trading volume
increased 8.3% to 78.1 billion DRs during the first six months

Depositary Receipt Trading Value

By Exchange or Market, 1H 10 (bb)

of 2010. Also during that period, $1.84 trillion of DRs traded

$1.7

on U.S. and non-U.S. markets and exchanges, a year-on-year

$36.4

$152.4

increase of 41.5%. Both figures are all-time highs.

NYSE

$312.6

U.S.-Listed Market Remains the Largest DR

Trading Market

NASDAQ
OTC
LSE/LuxSE

U.S.-listed programs accounted for nearly 90% of all DR trading

$1,342.6

value worldwide. The major U.S. stock exchanges the New

NYSE Amex

York Stock Exchange (NYSE) and NASDAQ remained the

largest markets for DR trading. In total, 66.4 billion U.S.-listed
first half of 2010. Compared with 60.7 billion DRs, valued at

Depositary Receipt Trading

U.S.-Listed, 1H 10

$1.17 trillion at mid-year 2009, this represents an increase of

4.0
3.5

trading value, year-on-year. The most actively traded U.S.-listed

DRs included Brazils Vale and Petrobras, the U.K.s BP, Finlands
Nokia and Frances Alcatel-Lucent.

Value ($tr)

9.4% in DR trading volume and an increase of 41.0% in DR

120
100

3.0
2.5
2.0
1.5
1.0

80
60
40
20

.5
0

0
'01

'02

'03

'04

'05

'06

'07

'08

Most Active U.S.-Listed Depositary Receipt Programs - by Value

* Note: 2010 represents half-year figures.

Company

Country

Value
(bb)

Volume
(mm)

U.S-Listed Depositary Receipt Trading Value

BP

U.K.

$149.5

3,810.0

Baidu

China

$125.2

689.7

Vale - Common

Brazil

$104.7

3,746.4

Petroleo Brasileiro - Common

Brazil

$82.5

2,019.5

Teva Pharmaceutical

Israel

$48.0

831.4

Nokia

Finland

$45.0

3,705.4

BHP Billiton

Australia

$43.4

605.9

Vale - Preferred

Brazil

$34.4

1,439.9

Itau Unibanco Holding

Brazil

$33.3

1,669.2

Petroleo Brasileiro - Preferred

Brazil

$30.6

851.2

Source: BNY Mellon and various stock exchanges. All figures as of June 30, 2010.

'09 1H 10*

By Country, 1H 10 (bb)

$443.8

$507.1

Brazil
UK
China
Mexico
$331.2

$49.5
$65.7

$259.6

Israel
Others

Volume (bb)

DRs, valued at $1.65 trillion, traded on U.S. markets during the

Depositary Receipt Trading

According to the London Stock Exchange (LSE), 9.7 billion DRs

Over-the-counter (OTC) and other DR trading value totaled

valued at $152.4 billion traded on the International Order Book

$36.4 billion, an increase from $32.1 billion last year, representing

in the first six months of 2010, 13.1% higher and 56.2% higher,

13.4% growth. Trading volume totaled 2.0 billion DRs,

respectively, year-on-year. Of the top 10 most actively traded

representing an 11% increase from last years 1.8 billion at the mid-

programs, nine were from Russia, including Gazprom, LUKOIL,

year mark. The most active OTC-traded DR programs included

Evraz, Uralkali, VTB and Norilsk Nickel.

Swiss issuers Nestl and Roche, as well as Japans Nintendo.

Most Active IOB-Traded Depositary Receipts - by Value

Most Active OTC-Traded Depositary Receipts - by Value

Company
Gazprom

Country

Value
(bb)

Volume
(mm)

Russia

$45.5

Company

Country

Value
(mm)

Volume
(mm)

1,976.5

Nestl

Switzerland

$3,740.8

77.7
46.2

LUKOIL

Russia

$26.1

475.6

Roche

Switzerland

$1,830.0

Rosneft

Russia

$19.1

2,441.3

Nintendo

Japan

$1,353.7

36.3

Russia

$13.4

809.2

Gazprom

Russia

$985.1

43.2

Russia

$7.4

215.0

Anglo American

U.K.

$849.3

42.6

Russia

$5.2

73.0

LUKOIL

Russia

$803.5

14.7

Russia

$3.8

753.2

BASF

Germany

$767.8

13.2

South Korea

$3.1

9.5

Allianz

Germany

$730.9

66.2

Russia

$3.0

236.2

E.ON

Germany

$645.7

19.3

Russia

$3.0

143.8

Bayer

Germany

$634.4

10.1

Norilsk Nickel
Evraz

Novatek

VTB

Samsung Electronics
Severstal

Uralkali

Depositary Receipt Trading

Depositary Receipt Trading

IOB-Traded, 1H 10

OTC-Traded, 1H 10

600

15

120

80

40

300
200

Volume (bb)

10

Value ($bb)

400

Volume (bb)

Value ($bb)

500

100
0

0
'01

'02

'03

'04

'05

'06

'07

'08

'09 1H 10*

* Note: 2010 represents half-year figures.

'01

'02

'03

'04

'05

'06

'07

'08

'09 1H 10*

* Note: 2010 represents half-year figures.

IOB-Traded Depositary Receipt Trading Value

OTC-Traded Depositary Receipt Trading Value

By Country, 1H 10 (bb)

By Country, 1H 10 (bb)

$3.6 $3.5 $2.8

$3.6
$6.5

$6.1

Russia
Luxembourg

Switzerland
UK

$15.0

Egypt

$5.5

France

India
South Korea
$132.4

Germany

Russia
$4.2

Others
$2.4

Others

$3.2

Source: BNY Mellon and various stock exchanges. All figures as of June 30, 2010.

Depositary Receipt Capital Raisings

India and China Lead New DR Capital Raisings
During the first six months of the year, 44 initial and follow-

raised capital in U.S. markets, while 20 occurred on European

on DR offerings by non-U.S. companies raised more than $4.1

markets, namely the London and Luxembourg Stock Exchanges.

billion. Issuers from India and China completed the most

Brazils Gafisa, Kazakhstans Alliance Bank and Indias Essar Oil

offerings, with 21 and 13, respectively. Issuers from these two

undertook the top three DR capital-raising transactions during

countries raised nearly $2.4 billion, more than 50% of the global

the first half of 2010.

total. Of the 44 initial and follow-on DR offerings, 16 issuers

Depositary Receipt Capital Raisings

Annual Depositary Receipt Capital Raisings

By Exchange, 1H 10 (bb)

Primary & Follow-on Offerings ($bb)

GDRs
ADRs

60
50
40

$1.4

$1.5

NYSE

30

NASDAQ

20

Luxembourg

10

Other
$0.5

0
'01

'02

'03

'04

'05

'06

'07

'08

'09

1H 10*

$0.7
* Note: 2010 represents half-year figures.

Largest DR Capital Raisings - by Value

Offering

DRs

DR Value

Company

Country

DR Exchange

Date

Price

(mm)

(mm)

Gafisa

Brazil

NYSE

March 25

$14.0

37.0

$519.1

Alliance Bank

Kazakhstan

None

March 19

$11.3

31.2

$352.1

Essar Oil

India

None

April 27

$483.3

0.6

$293.3

Mechel Steel

Russia

NYSE

May 12

$7.5

33.5

$251.1

CTrip.com

China

NASDAQ

March 9

$36

6.6

$236.0

Essar Oil

India

None

May 28

$482.9

0.5

$225.0

AvangardCo Investments

Ukraine

LSE

May 5

$15.0

14.4

$215.6

Trina Solar

China

NYSE

March 19

$20.3

9.1

$184.0

Rusal

Russia

NYSE Euronext-Paris

January 25

$28.1

6.3

$177.4

Mindray Medical

China

NYSE

March 9

$38.2

4.6

$175.7

Source: BNY Mellon and various stock exchanges. All figures as of June 30, 2010.

Depositary Receipt Institutional Demand

Total Value of U.S. Investment in Non-U.S. Equity Up 68% Year-Over-Year
As of March 31, 2010, according to statistics released in June by

(both DRs and non-U.S. shares) increased 68% to about $4.2

the U.S. Federal Reserve, the total amount of U.S. investment in

trillion. Non-U.S. equities accounted for 19.8% of all U.S. equity

equities increased 51.4% year-on-year to approximately $21.2

investment, an increase from 18.4% at the same time last year.

trillion, while the value of U.S. investment in non-U.S. equities

U.S. Holdings of Foreign Equities

U.S. Investment in Foreign Equities

30

25
20

15
2

10

0
'01

'02

'03

'04

'05

'06

'07

'08

'09

200

% of Portfolio

Value ($tn)

Net Purchases, ($bb)

1Q '10

150
100

50
0
'01

'02

'03

'04

'05

'06

'07

'08

'09

1Q 10

Source: U.S. Federal Reserve as of June 10, 2010. Historical figures revised by U.S. Federal Reserve as of June 10, 2010.

U.S. and global institutional demand continued to drive

Fidelity Management & Research remained the largest DR

increases in DR trading volume during the first half of 2010. The

institutional investor as measured by DR value, at just over $30

years ten largest DR investors, according to analysis provided

billion, with DRs accounting for 5.7% of total equity in its global

by Ipreo Holdings LLC, held DRs valued at $167 billion at the

portfolio. Fisher Asset Management was the institution with the

mid-year mark, an increase of 43.3% year-on-year.

largest value of DRs as a percent of total equity at 37%.

Largest Depositary Receipt Investors

1H 10 DR

1H 09 DR

Total Equity

Investment

Value (mm)

Value (mm)

Assets (mm)

Style

Equity Portfolio

DR Value as a

Turnover (%)

% of Total Equity

$30,369

$18,930

$528,996

Growth

38

5.7

BlackRock Fund Advisors (formerly Barclays Global)

$21,306

$15,608

$750,794

Dodge & Cox

$20,010

$13,265

$108,817

Index

19

2.8

Deep Value

17

18.4

Capital Research Global Investors (U.S.)

$18,853

$11,484

$385,585

GARP

27

4.9

Wellington Management Company

$16,710

$12,368

$266,515

Value

46

6.3

Capital World Investors (U.S.)

Fisher Asset Management

$15,644

$13,498

$377,625

Value

28

4.1

$12,316

$7,950

$33,259

GARP

11

37.0

BlackRock Investment Management (U.K.)

$12,301

$7,402

$206,556

Growth

53

6.0

T. Rowe Price Associates

$10,703

$8,403

$264,812

Growth

30

4.0

Lazard Asset Management (U.S.)

$8,845

$6,312

$54,342

Value

45

16.3

Investor
Fidelity Management & Research

International Investing Trends

The value of U.S.-listed DRs outstanding totaled $1.65 trillion, a year-over-year increase of 41.0% from mid-year 2009. As reported by
the London Stock Exchange, the value of European-listed DRs outstanding was estimated to be $152.4 billion, and the value of overthe-counter-traded and other DRs outstanding was estimated to be $36.4 billion.
At the mid-year mark, BP was the largest DR program, with a DR investment value of nearly $49.8 billion. Israels Teva Pharmaceutical
came in second with $45.6 billion. Of the top 10, six were oil and gas producers, six listed on the NYSE, two on NASDAQ, and two
Russian oil and gas producers Gazprom and LUKOILtraded on the LSE and the OTC markets. Of the top 10 issuers, three were from
the U.K., three from Brazil, and two from Russia, while the remaining two originated from Israel and Mexico.

Value of Outstanding Depositary Receipts

Value of Outstanding Depositary Receipts

By Market, 1H 10 (bb)

By Region, 1H 10 (bb)

$114.1
$175.8
$341.5
$220.0

Asia-Pacific

U.S.-Listed

EEMEA

European-Listed
OTC-Traded/Other

$763.0

$345.7

Latin America
Western Europe

$234.1

Largest Depositary Receipt Programs - by Value

Company
Country
DR Exchange
Sector
BP

U.K.

Teva Pharmaceutical

Israel

Gazprom

Russia

LUKOIL

Russia

Petroleo Brasileiro Common

Brazil

Amrica Mvil - Series L

Mexico

Petroleo Brasileiro - Preferred

Brazil

Vale Common

Brazil

Royal Dutch Shell - A Shares

U.K.

Vodafone Group

U.K.

Value of Outstanding
DRs (bb)*

Mkt. Cap.
(bb)

% of Total
Mkt. Cap.

NYSE

Oil & Gas Producers

$49.8

$121.8

40.9

NASDAQ

Pharmaceuticals & Biotech.

$45.6

$52.1

87.5

OTC & LSE

Oil & Gas Producers

$33.8

$123.7

27.3

OTC & LSE

Oil & Gas Producers

$32.6

$45.2

72.1

NYSE

Oil & Gas Producers

$29.0

$146.7

19.8

NYSE

Mobile Telecom.

$28.6

$100.4

28.5

NYSE

Oil & Gas Producers

$25.8

$146.7

17.6

NYSE

Industrial Metals & Mining

$23.3

$126.8

18.4

NYSE

Oil & Gas Producers

$20.1

$168.0

12.0

NASDAQ

Mobile Telecom.

$16.8

$119.0

14.1

Source: BNY Mellon, other depositaries and various stock exchange. All data as of June 30, 2010.
*Research methodology: Value of outstanding DRs was derived by multiplying DRs outstanding by DR price. All DR price figures are publicly available from the applicable stock exchanges
or trading markets. The number of DRs outstanding for issues sponsored by BNY Mellon was derived from internal reporting sources. The number of DRs outstanding for non-BNY Mellonsponsored U.S.-listed issues was derived from publicly available figures provided by the NYSE and NASDAQ. DRs outstanding from European-listed and OTC-traded issues that are not BNY
Mellon-sponsored were estimated using publicly available information including, but not limited to, company reports and SEC 13-F shareholder data.

The BNY Mellon Depositary Receipt Indices

During the first half of 2010, overall DR performance, as
evidenced by The BNY Mellon ADR Index, was broadly lower.
On June 30, 2010, the Composite ADR Index closed at 152.86,

Top Country Index Performance

Close

YTD
% Change

BNY Mellon Denmark ADR Index

544.5

26.3

BNY Mellon Sweden ADR Index

101.4

19.9

BNY Mellon Colombia ADR Index

214.6

15.3

had 345 constituents and a free-float market capitalization, as

BNY Mellon Peru ADR Index

391.6

14.9

defined by CME Group Index Service, in excess of $4.1 trillion.

BNY Mellon India ADR Index

1060.6

2.6

Thirty of the 35 country indices were down year-to-date,

Top Constituent Performance

Country

down 15.76% year-to-date, while still managing a 4.71% gain

year-on-year. At the mid-year mark, the Composite ADR Index

while the India Select DR Index and New Frontier DR Index led
gainers with returns of 3.60% and 1.81%, respectively, year-

YTD
% Change

Baidu

China

65.6

to-date. Chinas Baidu was again one of the half-years best-

Internet Initiative of Japan

Japan

60.8

performing ADR Index constituents, returning 65.56%. Other

Trintech Group

Ireland

52.6

top-performing index constituents included Internet Initiative of

Silicon Motion Technology

Taiwan

51.6

Spreadtrum Communications

China

50.9

Trinity Biotech

Ireland

50.5

ARM Holdings

U.K.

44.9

China Southern Airlines

China

34.2

ICON

Ireland

32.9

CNinsure

China

29.2

Japan, up 60.84%, and the U.K.s Trintech Group, up 52.47%.

Demand for more exchange-traded funds (ETFs) based on
DRs was evidenced by the creation of The BMO China Equity
Hedged to CAD Index ETF, which tracks The BNY Mellon China
Select ADR Index CAD Hedged, and The BMO India Equity
Hedged to CAD Index ETF, which tracks The BNY Mellon India
Select DR Index CAD Hedged.
Top Index Performance

20%

BNY Mellon ADR Indices

Close
BNY Mellon Latin Telecom ADR Index
BNY Mellon Asia ADR Index

BNY Mellon Composite Index

BNY Mellon Developed Markets Index
BNY Mellon Emerging Markets Index
MSCI EAFE Index
S&P 500

Annual Index Return

15%

YTD
% Change

10%
5%

274.2

-5.7

0%

113.7

-10.9

-5%
-10%

BNY Mellon Emerging Markets ADR Index

279.8

-11.2

BNY Mellon Latin America ADR Index

332.9

-15.6

-15%

BNY Mellon ADR Index

113.0

-17.1

-20%

BNY Mellon Developed Markets ADR Index

79.6

-18.8

-25%
-30%

Major Global Market Indices

Close

'06J A

MSCI BRIC Index

300.19

-9.66

MSCI EAFE

1348.11

-14.72

MSCI AC World Index ex USA

212.76

-12.41

MSCI AC Europe

327.81

-18.08

MSCI AC Asia-Pacific
MSCI EM Latin America
MSCI Emerging Markets

O '07J A

O '08J A

O '09J A

O '10J A

YTD
% Change

112.80

-6.36

3639.55

-11.59

917.99

-7.22

S&P 500 Index

1030.71

-7.57

Dow Jones Industrial Average

9774.02

-6.27

As the only real-time index to track all DRs, New York Shares and global registered shares traded on the NYSE, NYSE Amex and NASDAQ, The BNY Mellon ADR Index has become a
widely followed international benchmark.
Raw data for the BNY Mellon ADR Index is provided by Dow Jones & Company, Inc
Source: BNY Mellon and Bloomberg. Data as of June 30, 2010.

BNY Mellons Depositary Receipt Leadership

Sponsored DRs
During the first six months of 2010, BNY Mellon grew its

BNY Mellon partnered with DR issuers on several major

depositary leadership position across many metrics, acting

international corporate events, including Russias VimpelCom;

for 59% of all new sponsored DR programs and 83% of all DR

a detailed case study is below. BNY Mellon also assisted

capital-raising transactions. BNY Mellon acts as depositary for

in structuring a complex IPO for Rusal, establishing several

63% of all sponsored DR programs globally.

new procedures for securities settlement in Europe. Rusal

became the first Russia-based company to list its local shares

Total Sponsored Depositary Receipts

on the Hong Kong Stock Exchange and its GDRs on the NYSE

Number of DR Programs

Euronext-Paris.

2,500

BNY Mellon also supported Mexicos Telmex Internacional

2,000

transaction, launched in January, when Amrica Mvil

1,500

announced a tender offer for shares and DRs of Telmex

1,000

Internacional. In May, BNY Mellon was appointed as tender

500

and exchange agent by Amrica Mvil. In June, after the $5.5

0
'01

'02

BNY Mellon

'03

'04

'05

JPMorgan Chase

* Note: 2010 represents half-year figures.

'06

'07
Citibank

'08

09

1H 10*

Deutsche Bank

billion transaction closed, BNY Mellon was appointed successor

depositary for the Telmex Internacional L and A share
programs.

Source: BNY Mellon. Data as of June 30, 2010.

BNY Mellons DR Expertise: Solving Complex Problems for Our Clients

VimpelCom Case Study: An Intricate Exchange Offer Resulting from a Telecom Merger
In April, mobile phone providers VimpelCom and Kyivstar merged to create VimpelCom Limited. BNY Mellon used its
expertise to undertake this complex corporate action, handling the details of the exchange offer in both the U.S. and
Russian markets. As a result of the merger, 1.1 billion new VimpelCom DRs were introduced to the market.
On the Russian side of the exchange offer, BNY Mellon met a set of extensive regulatory requirements and complied
with strict timing: the U.S. offer had to close three days before the Russian offering. BNY Mellon obtained pre-approval
as a Qualified Investor under Russian regulations. VimpleComs registrar required BNY Mellons custodian bank to
complete a pre-clearance and pre-approval process to obtain share acceptance forms. In addition to providing a
certified financial statement, BNY Mellon established a special custodian account and submitted a tender application to
the custodian.
After the merger, VimpelCom Ltd. established two NYSE-listed American Depositary Receipt (ADR) programs with BNY
Mellon as sponsored depositary bank: VimpelCom Ltd. common and VimpelCom Ltd. preferred.
The success of this merger was in part due to BNY Mellons superior expertise and experience in handling complex
corporate actions and its proficiency in meeting challenging international regulatory requirements and deadlines, while
satisfying the needs of the many parties involved in a cross-border corporate action.

10

BNY Mellons Tradition of DR Innovation

Standard Chartered Indian Depositary Receipts An Industry First
Indian Depositary Receipts (IDRs) are the newest addition to the family of depositary receipt products, which for
many years have acted as the most widely accepted mechanism for listing securities internationally. The use of IDRs
marks an important stage in the development of the DR instrument as the most efficient and effective settlement
mechanism to facilitate cross-border investment.
In June 2010, the U.K.s Standard Chartered became the first company to list an Indian depositary receipt program in
India and the first non-Indian company to sell shares (in the form of IDRs) directly to Indian investors.
The introduction of Indian depositary receipts is yet another example of BNY Mellons industry-leading advisory
capabilities. Transactions like this show our continued support for our issuers throughout the world and solidify
our position as the market leader in depositary receipts. Our focus on financial markets innovation drives product
development and facilitates superior service solutions for our clients by connecting them to global financial markets.

At the Forefront of Innovation:

Developing New Ways To Benefit Our Clients
BNY Mellon Launches the First Actively Managed International ETF (NYSE Symbol: AADR)
BNY Mellon, in conjunction with two leaders in the investment communityAdvisorShares and WCM Investment
Managementcreated the first international actively managed exchange-traded fund (ETF). The ETF trades on the
New York Stock Exchange under the symbol AADR.
WCM Investment Management, a fund manager with over 20 years of experience, selects securities for the fund
pursuant to an active management strategy for portfolio construction. The Funds investment objective, as stated
in its prospectus (see: http://aadr.advisorshares.com) is long-term capital appreciation greater than international
benchmarks, such as the MSCI EAFE Index and the BNY Mellon Classic ADR Index, which is the funds primary
benchmark.
This innovative product demonstrates our continued support and commitment to issuers, market intermediaries and
investors in the hopes of creating a more liquid depositary receipt market.

11

BNY Mellon Depositary Receipt Contacts

London

Asia-Pacific

Michael Cole-Fontayn, EVP

CEO - DR Division
Phone: +44 207 964 6318
michael.cole-fontayn@bnymellon.com

Beijing
Kathy Jiang, VP
Phone: +86 10 8800 7555
kathy.jiang@bnymellon.com

New York
Nuno da Silva, MD
Latin America
Phone: +1 212 815 2233
nuno.da.silva@bnymellon.com

Hong Kong
Gregory Roath, MD
Asia-Pacific
Phone: +852 2840 9821
gregory.roath@bnymellon.com

Marianne Erlandsen, MD
Western Europe
Phone: +1 212 815 4747
marianne.erlandsen@bnymellon.com

Emerging Europe,
Middle East and Africa

Western Europe

Beirut
Bana Akkad Azhari, VP
Phone: +961 1 988 788
bana.akkad@bnymellon.com

London
James Green, MD
Secondary Market Solutions
Phone: +44 207 964 6080
james.t.green@bnymellon.com

Cairo
Tarek El-Refai, MD
Phone: +202 333 65818
tarek.elrefai@bnymellon.com

Frankfurt
Rainer Wunderlin, MD
Phone: +49 69 9715 1226
rainer.wunderlin@bnymellon.com

Melbourne
Gary Peck, MD
Phone: +61 3 9640 3916
gary.peck@bnymellon.com

Dubai
Peter Gotke, VP
Phone: +971 4425 2542
peter.gotke@bnymellon.com

Milan
Adriana Pierelli, VP
Phone: +39-02 879 0923
adriana.pierelli@bnymellon.com

Michael Finck, MD
Transactions and Corporate Actions
Phone: +1 212 815 2190
michael.finck@bnymellon.com

Mumbai
Aparna Salunke, VP
Phone: +91 22 3028 2312
aparna.salunke@bnymellon.com

Istanbul
Michel Sidier, MD
Phone: +90 212 259 0466
michel.sidier@bnymellon.com

Paris
Benjamin Brisedou, VP
Phone: +33 1 4297 9022
benjamin.brisedou@bnymellon.com

Chris Kearns, MD
Product Management
Phone: +1 212 298 1240
christopher.kearns@bnymellon.com

Seoul
Sean Lim, VP
Phone: +82 2 399 0040
sukkyu.lim@bnymellon.com

Moscow
Irina Baichorova, VP
Phone: +7 495 967 3110
irina.baichorova@bnymellon.com

Anthony Moro, MD
Emerging Europe and Africa
Phone: +1 212 815 5838
anthony.moro@bnymellon.com

Shanghai
Caleb Shih, VP
Phone: +86 21 5888 2919
caleb.shih@bnymellon.com

Latin America

Mahmoud Salem, MD
Middle East
Phone: +1 212 815 2248
mahmoud.salem@bnymellon.com

Taipei
Frances Ni, VP
Phone: +886 2 2711 0995
frances.ni@bnymellon.com

Dave Stueber, MD
Global Business Development
Phone: +1 212 815 2981
david.stueber@bnymellon.com

12

Tokyo
Kainoshin Hara, MD
Phone: +81 3 3595 1071
kainoshin.hara@bnymellon.com

Buenos Aires
Ciro Ortiz, VP
Phone: +54 11 4345 9990
ciro.ortiz@bnymellon.com
Mexico City
Paulina Trueba, VP
Phone: +52 55 3544 0237
paulina.trueba@bnymellon.com
So Paulo
Curtis Smith, VP
Phone: +55 11 3050 8306
curtis.smith@bnymellon.com

13

BNY Mellon is the corporate brand of BNY Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than
100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management
and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.4 trillion in assets
under custody and administration, $1.1 trillion in assets under management, services $12 trillion in outstanding debt, and processes global payments averaging $1.5 trillion
per day. Additional information is available at bnymellon.com.
This information and data are provided for general informational purposes only. BNY Mellon does not warrant or guarantee the accuracy or completeness of, nor
undertake to update or amend, 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.
Members FDIC. 2010 BNY Mellon Corporation. Services provided by BNY Mellon and its various subsidiaries. All rights reserved.
Depositary Receipts:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED. MAY LOSE VALUE.
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE.