Both investment and trading value in American and global depository receipts topped $1 trillion for the first time in 2005, according to analysis from the Bank of New York.
The total investment in depository receipts exceeded $1 trillion at the end of the third quarter, with investment values in U.S.-listed depository receipts totaling $657 billion on Sept. 30, a jump of 36% from a year earlier.
"The $1 trillion milestones underscore the significant and growing role (depository receipts) play in broadening the market to both issuers and investors alike, a trend we expect to continue in 2006," Christopher Sturdy, managing director and head of the Bank of New York's depository receipt division, said in a news release.
Issuers from India, Taiwan and Brazil accounted for the majority of all depository receipt capital raisings by number of transactions, while issuers from Taiwan, the U.K., Korea and Russia accounted for the largest amounts of capital raised.
The Bank of New York ADR index climbed 9.7% in 2005, closing at 134.56 on Dec. 31, a five-year high. According to the bank, all three regional subindexes and 12 of 14 subindexes ended higher for the year. In addition, 30 of 39 country indexes rose, led by Argentina, Brazil and Mexico, each of which returned more than 40% in 2005.