Globalize Your Outreach - BNY Mellon
description
Transcript of Globalize Your Outreach - BNY Mellon
Who is BNY Mellon?
Global Expertise
US$ 27.1 trillion in assets under custody and administration
US$ 1.3 trillion in assets under management
US$ 1.4 trillion average payments processed daily
48.000+ professionals
Present in 36 countries over 100 markets
BNY Mellon is a leader in Investment Management and Investment Services
Elected the Safest Bank in the US
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Present in 36 countries over 100 markets
Americas
Asia Pacífico
Europe, Middle East
ans Africa
Data-base: June 2012
BNY Mellon
Asset Under Administration #8 EUA, #11 Global
Wealth Mgmt Top 10 EUA
Investment Services #1 Global
Corporate Trust #1 Global
Depositary Receipts #1 Global
Broker Dealer Services #1 EUA: + 60%share
Clearing Services #1 EUA, UK e Irlanda
Stock Transfer #1 EUA
Global Payments Top 5 Global
Cash Mgmt Top 5 EUA
Elected the Safest Bank in the US
A Depositary Receipt is a negotiable security issued by BNY Mellon that represents a security of a non-US company public traded in its local market.
� 3,500 DR issuers from 80 countries in all sectors of the economy.
� 175 billion DRs valued at USD 3.8 trillion were traded in 2011
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Source: BNY Mellon; www.adrbnymellon.com, December 2011
Pro
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Vis
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Level II GDR and Medium
High
Level II ADR
Level III ADR
DR Program Levels & Trading Platforms
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Pro
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Disclosure Requirements
Level I GDR
Level I ADR
Level II GDR and Level III GDR
Low
Medium
Low Medium High
Generally, Increased Disclosure Results in Increased Visibility
ADRs Provide Access to Deep Capital Markets
- Brazilian Institutions
144A/RegS
- Qualified U.S. Institutional Buyers (QIBs – with over $100 MM in assets) and European
Level II & III DR
(SEC Registered & Listed)
- US and European Institutional Investors that prefer SEC-registered securities and familiar trading and settlement structures
BOVESPA
Level I DR (OTC)
- US and EuropeanInstitutions that don’t have clearing and settlement structures in Brazil but seek Brazilian equity opportunities - Mutual/Pension Funds that
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- Brazilian Retail
-US and European Institutions with presence in Brazil
-Some ETFs
and European investors with clearing and settlement structures in Brazil
equity opportunities
- Mutual/Pension Funds that are required to hold U.S. DTC securities
- Mutual/Pension Funds that are required to hold U.S.-registered securities
DRs will increase access to institutional and individual investors
- Managed Accounts
- Managed Accounts- Individual Investors
- ETFs / Index Funds
Why establish a Level I DR Program?
BNY Mellon is the leading depositary in the Level I ADR Universe
Level I SponsoredPrograms - GlobalMarket Share
• We manage more than 600 Level I programs in 50 countries• In Brazil, we manage 39 Level I Programs, representing 68% of
market share in the country
Others29%
Market Share
BNY Mellon71%
DR Brazil Team : 8 experienced Portuguese speakers professionals, 3 located in Brazil
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DR Benefits to Issuers
• Access deep international capital markets
• Potential for increase share valuation and liquidity, provide higher visibility
• Diversify and broaden shareholder base
• Express international commitment
• Simple to establish, little or no cost to the company
• No additional financial disclosure, existing local market disclosure requirements accepted
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• Invest in more than 3,300 DRs from 78 countries
• Get quotes and dividends in U.S. dollars
• Overcome foreign investment restrictions
• Access improved information flow in English
• Transaction and holding costs may be less than that assessed in local market
DR Benefits to Investors
Myth #1:
“The DR is no longer necessary, because all investors already buy and negotiate in the local
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investors already buy and negotiate in the local market”
DR traded figures for Brazilian Companies (US$)
The importance of ADRs continues to grow
In 2011, DRs represented 60% of overall trading for these companies, totaling more than U$ 670 bn in transactions
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Nestle Largest food company in the world
Volkswagen Largest automaker in Europe
Some of the largest companies in the world have a Level I DR program
Some of them are:
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BASF Greater chemical company in the world
Gazprom Greater natural gas company in the world
Usiminas Largest steel producer in Latin America
JBS World's largest meat company
Myth #3:
“A DR Level I will increase the visibility of my company in the foreign market ”
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company in the foreign market ”
There is a difference between "access" and "visibility"
Features of DR Investor Relations
Clearance via DTCTrading in U$Quotes in U$Real time quotesUse of online brokers
Conferences with brokersRoadshowsMedia RelationsInstitutional advertisingEvents for investors
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Use of online brokers Events for investors
ADRBrings
RIBrings
ACCESS VISIBILITY
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$ M
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Hypermarcas
AVG.: 8,2mm
AVG.: 30,16mm
May 26 ‘10 – DR Level I
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$ M
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OGX Petróleo
AVG.: 27,9mm
AVG.: 122,5mm
May 08 ‘09 - DR Level I
Empiric evidence shows that a DR Level I program also increase liquidity in the local market
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$ Average Day Traded Value in BMFBovespa (U$ mm)
Before DR Level I After DR Level I Var.
OGX Petróleo 27,9 122,5 339%
Hypermarcas 8,2 30,16 268%
MRV Engenharia 7,9 21,6 173%
MPX Energia 2,3 6,2 170%
Marfrig 8,6 13,6 58%
Banco Do Brasil 44,7 67,7 51%
Equatorial 1,3 1,9 46%
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