I'm having some trouble working out the details of where the risk (if any) lies with an ADR investment. Everywhere I've gone to look just talks about fx risk, etc. I'm curious about what additional risk this "pass-through" (if it really is) structure adds.
Let's take for example NSRGY provided through Citibank. Going through Citi's ADR section, it states that the actual shares are stored in Switzerland and Citi provides a receipt claim against the ones in these vaults. If Citi goes belly up, are receipts voided? Would really appreciate anyone chiming in with some insight about this structure, not super-pumped about setting up a Swiss account, but would depending on the answers here.
Submitted November 12, 2017 at 11:45AM by Fearspect http://ift.tt/2zA5ydY
