Global depositary receipts (GDRs) are rapidly overtaking American depositary receipts (ADRs) as issuers’ preferred means of accessing global capital markets.
According to a report from JPMorgan Depositary Receipts Group , 2007 will see GDRs clearly dominate their American counterparts for the first time, due in part to increased reporting and compliance regulations for global issuers stemming from the US Sarbanes-Oxley Act. After a record year for depositary receipts overall in 2006, in which trading volumes grew 22 per cent to 57 billion shares and trading value rose 58 per cent to almost $1.7 billion over 2005, JPMorgan expected the depositary receipt market to grow larger again in 2007. It predicted a “;shift in gravity in DR markets to the south and east”;, with the four burgeoning ‘BRIC’ economies dominating new issues.
Mega fund AustralianSuper said it is still feeling the pain from its very public loss in US software company Pluralsight, and even with $341 billion of assets under management, a $1.1 billion write-down is still too big a chunk of money to let go easily. But at the Fiduciary Investors Symposium, the fund’s senior private equity portfolio manager Robert Schnittger, said the most important thing now is to learn the lesson and “not lose money the same way twice”.
Darcy SongNovember 11, 2024