Citigroup Launches Liquidity Based Depositary Receipt Indices; New Resource Captures Distinct Perspective on International Investor Sentiment

Business Wire,  July 26, 2004  

Tags: Citigroup Inc., liquidity

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NEW YORK -- Citigroup Depositary Receipt Services, the leading depositary bank, today launched four Liquid Depositary Receipt (DR) Indices, providing a new level of insight into cross border investment activity for AsiaPac ex-Japan, AsiaPac Growth Economies, EuroPac (Western Europe and Developed Asia) and LatAm (Latin America).

The Citigroup Liquid DR Indices are free-float market cap weighted and include only companies that have U.S. exchange listed ADRs or London-traded GDRs that are actively traded. This new resource is now available to international investors and DR market participants on Bloomberg (Tickers CLDRAPAC, CLDREAS, CLDREPAC, CLDRLAT) and the Citigroup DR home page at www.citigroup.com/adr.

Excellent Gauge of International Investor Sentiment

"These indices provide an excellent gauge of U.S. and international investor sentiment towards non-U.S. markets because they track U.S. listed ADRs and London-traded GDRs," said Sanjeev Nanavati, Managing Director of Citigroup Depositary Receipt Services. By contrast, MSCI(TM) regional benchmarks contain ordinary shares that are primarily held by local investors, and commingle U.S., international and local investor sentiment towards non-U.S. markets.

Liquid DRs by definition attract the most interest from investors. The countries included in the four regional Citigroup Liquid DR Indices account for over 98% of global (excluding U.S.) market capitalization.

Citigroup Liquid DR Indices are distinctive in that they:

--Provide a timely gauge of international investor sentiment towards non-U.S. markets at the end of the U.S. trading day because all of their constituent stocks trade in the U.S. and/or London time zones. By contrast, the MSCI regional benchmarks contain ordinary shares that trade in their local time zones where local markets may have closed up to 14 hours earlier than the U.S. market closing and the end of day index updates.

--More completely capture U.S. and international investor sentiment towards the Indian, Korean and Taiwanese markets by including London traded GDRs. Other DR indices do not.

--Include the only publicly available DR indices for AsiaPac ex-Japan and AsiaPac Growth Economies.

The securities tracked in the Citigroup Liquid DR Indices rank among the world's most liquid depositary receipts. For example, 96% of the stocks tracked exceed the $2 million minimum average daily value of trading threshold of the S&P 400 Midcap Index, and 48% exceed the $6.5 million minimum average daily threshold of the S&P 500 Index. To be included in the Indices, U.S. listed ADRs are required to have a minimum value of trading of $2 million per day, and London-traded GDRs need to have a minimum value of trading of $1 million per day.

The Citigroup Liquid DR Index returns are highly correlated to regional MSCI benchmark indices while including only a fraction of the number of securities. For example:

--  Citigroup AsiaPac ex-Japan Liquid DR Index: 44 stocks
        MSCI Asia Pacific ex-Japan Index: 545 stocks

    --  Citigroup AsiaPac Growth Economies Liquid DR Index: 36 stocks
        MSCI Emerging Markets Asia Index: 393 stocks

    --  Citigroup EuroPac Liquid DR Index: 80 stocks
        MSCI EAFE Index: 1,006 stocks

    --  Citigroup LatAm Liquid DR Index: 27 stocks
        MSCI Latin America Index: 107 stocks

Citigroup acts as depositary for many of the world's most liquid ADR programs including Nokia, the world's most liquid ADR, and has the highest liquidity relative to its share of U.S. exchange listed ADRs. Citigroup ADR is committed to helping companies expand their international investor bases and increasing the liquidity of their programs. "These indices are a testament to the importance we place on liquidity and our unrelenting focus on assisting companies in this regard," said Nanavati.

There are presently three ways to monitor the Citigroup Liquid DR Index returns, which are

--Visit the home page of www.citigroup.com/adr

--Go to Bloomberg (Tickers CLDRAPAC, CLDREAS, CLDREPAC, CLDRLAT)

--Request periodic updates via Citigroup ADR Flash e-mail

For a full report on the securities included and the methodology, or to request periodic updates, reply to Stephanie.bleecher@citigroup.com

About Citigroup Depositary Receipt Services

Citigroup Depositary Receipt Services is a market leader in bringing quality issuers to the U.S. and international markets and promoting Depositary Receipts as an effective capital markets tool. Citibank began offering ADRs in 1928 and today is widely recognized for providing non-U.S. companies with a gateway to the resources of Citigroup and the means to diversify their shareholder bases and increase liquidity. In addition, Citigroup's financial strength and global presence provides clients with access to on-the-ground presence and in-depth knowledge of 90 local markets.

Depositary Receipt Services is a business line within Citigroup(R) Global Transaction Services, a leading provider of integrated cash management, trade finance and securities services for corporations, financial institutions, intermediaries and governments around the world.