What it is
Global Philippine Depositary Receipts (GPDRs) are financial instruments that represent an underlying security listed on an overseas exchange, like shares of a foreign company’s stock.
The Philippine Stock Exchange (PSE) aims to launch GPDRs as a way for Filipinos to trade foreign stocks on the local exchange.
What it means for you
Once launched, GPDRs can offer local investors an opportunity to diversify their portfolios by providing exposure to foreign markets. Through them, you may be able to invest in global assets using Philippine pesos.
A major difference between buying international stocks directly and buying GPDR shares is that the latter won’t give you voting rights or the potential to earn dividends.
However, you would have the right to exchange your GPDR shares for shares of the underlying stock or security.
The PSE plans to make GPDRs available through local banks and other authorized financial institutions. These institutions can decide which global stocks or securities to issue as long as they’ll meet the PSE’s listing requirements.
