The Glossary section contains some of the key terms and definitions used throughout DR Converter™.
- A -
Back to the TopADR Issuance/Conversion Fee(creation of Depositary Receipt)
Reflects the fee charged by a Depositary bank for the creation of Depositary Receipts. This one time fee is charged by the Depositary when investors convert ordinary shares to Depositary Receipts.
Amount saved with DRs
Calculates the cost difference between the safekeeping of Depositary Receipts and ordinary shares.
- C -
Back to the TopCalculate
DR Converter™ allows the investor to modify different fields. All white fields(with the exception of DR Price) can be modified. When a change is made to any data contained in a white field, the investor must press the "calculate" button to recalculate the results. Changes and recalculations must be performed one entry at a time; If more than one change is made at a time, the system will only change the last modified field.
Cancellation fee (if necessary)
This fee would only apply if the investor were to cancel out the depositary receipts in order to hold or liquidate their position in the local market. This entry reflects the fees charged by a Depositary bank for the cancellation of Depositary Receipts. If the investor wishes to deliver Depositary Receipts for cancellation and receipt of ordinary shares in the home market, the following fee schedule applies:
Depositary Receipt Cancellation Fees
$.01 to $4.99 $.03/Depositary Receipt
$5.00 to $9.99 $.04/Depositary Receipt
$10.00 to Over $.05/Depositary Receipt
Company name
DR Converter™ is pre-programmed with a complete listing of all Depositary Receipts. This list is regularly updated by BNY Mellon.
CUSIP:
Company identifier code for the Depositary Receipt Issue.
- D -
Back to the Top Do you currently hold the company’s
ordinary shares?
DR Converter makes the assumption that you will convert these ordinary shares into DRs rather than acquire DRs in the current market. Click "yes" if you currently hold the ordinary shares of the security selected and the intention would be to convert those shares into DR form; DR Converter will assume a Depositary creation fee for the conversion of ordinary shares into Depositary Receipts.
Depositary Receipt Issuance Fee
$.01 to $.99 $.01 per Depositary Receipt
$1.00 to $2.99 $.02 per Depositary Receipt
$3.00 to $4.99 $.03 per Depositary Receipt
$5.00 to $9.99 $.04 per Depositary Receipt
$10.00 to Over $.05 per Depositary Receipt
Click "no" if you do not currently hold the ordinary shares of the security selected or
you do not wish to convert your ordinary shares into DRs and wish to buy and hold DRs in the US Market.
DR Converter will assume no Depositary
Bank creation fee as investors are able to purchase Depositary Receipts
in the US market. Over 90% of all Depositary Receipt transactions
occurs in the US marketplace!
DR cost (share conversion)
Reflects the total cost of holding Depositary Receipts based upon the criteria entered.
DR holding costs
Section that displays the fees typically charged by the depositary bank for the creation and safekeeping of Depositary Receipts.
DR savings begin...
Displays the necessary holding period (expressed in months) in which the Depositary Receipt becomes the most economical custody alternative. It should be noted however, that the DR Converter is not able to quantify the economical benefit of convenience of holding depositary receipts in relation to the additional complexity of multiple international brokerage accounts involved with holding and trading of ordinary shares in each individual international market. This value is derived from charges outlined in the Supporting Data section.
DTC Holding fee (per year, per issue)
Reflects the Depository Trust Company (DTC) fee for the registry of shares. Charged on a annual - per issue basis.
- F -
Back to the TopFX conversion fee
Reflects the fee charged by an agent who executes the foreign currency transaction. DR Converter™. This field can be edited by the DR Converter user in order to input the correct FX fee charged under their current operating agreements.
- G -
Back to the TopGlobal Custodian settlement fee
Reflects the fees charged by the global custodian for transaction settlements. This is an industry average and can be modified by the DR Converter user to more accurately reflect their true Global Custodian Settement Fees. For the purposes of the analysis, the model applies industry standard global custody charges in its calculations.
- N -
Back to the TopNumber of Depositary Receipts(DRs)
Number of Depositary Receipts applicable to the transaction being considered by the DR Converter user. A change in either the "Number of Depositary Receipts" field or the "Number of Ordinary Shares" field will effectively change both fields as per the DR/ORD ratio
Number of Ordinary Shares
Number of ordinary shares held. Also known as "underlying" or "local" shares. A change in either the "Number of Depositary Receipts" field or the "Number of Ordinary Shares" field will effectively change both fields as per the DR/ORD ratio
- O -
Back to the TopOrdinary Holding Costs per Year
Ordinary share holding costs section displays the fees typically charged by the overseas custodian for the safekeeping of ordinary shares, including Brokerage Commission, FX Conversion, Global Custodian Settlement, Global Safekeeping , and Stamp Duty Reserve Tax (as applicable).
- P -
Back to the TopPrice per DR (Depositary Receipt) ($US):
Price of the Depositary Receipts held in the US market expressed in US dollars. This field is automatically updated via weblink to our supplier. BNY Mellon and its suppliers believe the information herein was obtained from reliable sources but they do not guarantee its accuracy.
Price per ordinary share ($US)
Price of the shares held in the home market, expressed in US dollars. This calculation is not a real time quote nor is it necessarily reflective of the ordinary share price in the local market. DR Converter calculates local share price by applying the Ordinary Share to DR ratio to the price set forth under the field "Price per DR". Example if the Price per DR is $25 and the ratio is 1 DR to 5 Ordinary Shares, the Price per Ordinary Share would be $5.
- R -
Back to the TopRatio (Ratio of Ordinary Shares to Depositary Receipts)
Depositary Banks often establish a Depositary Receipt ratio to adjust the price of a company's Depositary Receipt so that it may trade in a price range typical of its peers. DR Converter™ automatically displays the ratio based on the company selected.
- S -
Back to the TopShow Portfolio Security Details
Within the Demo Portfolio Analysis section of DR Converter™ ,investors may view/sort those companies identified for conversion within that demo portfolio by company name, cusip, country, depositary bank, dr cost, ord cost, and dr savings.
Sorting Options (buttons)
Press to sort data by company name, cusip, country, depositary bank, dr cost, ord cost, and dr savings.
- T -
Back to the TopTotal Cumulative Cost Comparision: (This should be changed on DR Converter)
The total cumulative annual cost is set forth in separate columns for the holding the Ordinary Share and for holding the Depositary Receipt. This subsequent savings (or not) of holding DRs rather than the Ordinary Shares is then expressed in the column of data labeled "Amount Saved with DRs".
