, Jan. 30, 2013 /PRNewswire/ -- The BNY Mellon Classic ADR Index posted an 18% return last year, beating the 16% gain by the Standard & Poor's 500 Index of U.S. shares, and reversing a 2011 loss even as overall depositary receipt trading shrank, according to BNY Mellon's year-end report on the DR market.
"The outperformance of the Classic ADR Index is significant, given that overall DR trading value dropped in 2012 and U.S. stocks performed well during a year of political wrangling," said
Christopher M. Kearns
, deputy CEO of BNY Mellon's Depositary Receipts business. "International portfolio diversification through DRs has offered a viable option to many investors, even as geopolitics led to periods of unsettled markets and made companies cautious about committing capital."
As the only real-time index to track all ADRs,
shares and global registered shares traded on the NYSE, NYSE MKT, NASDAQ and over-the-counter, the BNY Mellon Classic ADR Index has become a widely followed international benchmark. Last year, the index gained 18%, reversing a 13% loss in 2011.
More broadly, a total 157 billion DRs were traded on the world's markets and exchanges, 10% less than 2011, but higher than the previous two years, while the value of DRs traded shrank 26% to
The BNY Mellon Classic ADR Index returns for
were up more than 20% last year. Overall, the best-performing country indices were those for
, which gained 33%,
, which gained more than 25%, followed by
with a 25% rise,
returning 24%, and
According to the year-end report, Oil & Gas sector issuers led all industries in terms of volume with 27 billion DRs traded, 44% more than 2011. In contrast, trading in the Semiconductor and Pharmaceutical sectors were down the most, 41% and 27%, respectively. In terms of trading value, Beverage sector companies outperformed all others with an 18% increase to
, while the Oil & Gas industry saw a slight increase of slightly more than 1% to
According to the Classic ADR Index, the two sectors with the largest percentage returns last year were Financials and Consumer Goods, up 35% and 24%, respectively. The two lowest-performing sectors were Telecommunications and Oil & Gas, gaining less than 3% and less than 1%, respectively.