Beaghton Capital Management is an investment manager, authorised and regulated by the Financial Services Authority in the United Kingdom.  We specialise in managing portfolios of UK ADRs and we are a market leader in swaps between UK ADRs and ordinary shares.  In 2008 we are celebrating our 10th anniversary. 

The majority of British blue chip companies operate sponsored ADR programmes via one of the leading Depositary Banks. Shareholders in the UK (primary) listing can convert their ordinary shares into American Depositary Receipts (ADRs) by paying 1.5% Stamp Duty Reserve Tax (SDRT) to the UK Inland Revenue and up to 5¢ per ADR to the Depositary Bank.  Conversely, holders of ADRs can convert their ADRs back to ordinary shares for a fee up to 5¢ per ADR (without recovering the 1.5% SDRT).

ADRs can also be traded in the open market (either on exchange or over-the-counter).  An increasing percentage of ADR trades is now carried out on a swap basis: two counterparties agree to swap ADRs for ordinary shares at a given premium (quoted in %) over the ordinary shares.  Both legs of the swap are traded in the same currency and then settled on a DvP basis via Crest for the UK leg and DTC for the ADRs. These swaps are free of the 1.5% SDRT as there is no creation of new ADRs.

Obtain quotes and view IOIs:  Existing users can obtain premium levels and IOIs for ADRs vs ordinary share swaps by logging on. New users can register by clicking on the link to the left.  The same information can be found on Bloomberg page BCMX.