What are the benefits of ADR to US investors?
US investors frequently aim to diversify their portfolio internationally. However, obstacles such as different settlement systems, costly currency conversions, unreliable custody services, poor information flow, unfamiliar market practices, foreign tax regimes and internal investment policies frequently discourage US institutions and private investors from investing in securities outside the US local market. Addressing these concerns, ADR provide familiar trading, clearance and settlement procedures in the US.
