Atlantic Trust Select MLP Index used as underlying index in the
Barclays ETN+ Select MLP ETNs (ticker: ATMP)
Company Website:
http://www.barclays.com
NEW YORK -- (Business Wire)
Barclays Bank PLC announced today that following the close of business
on Friday, April 11, 2014, the following four constituents would be
added as in the Atlantic Trust Select MLP Index (the “Index”):
-
EnLink Midstream Partners LP (NYSE: ENLK, Type: LP)
-
EnLink Midstream LLC (NYSE: ENLC, Type: GP)
-
Western Gas Equity Partners LP (NYSE: WGP, Type: GP)
-
Plains GP Holdings LP (NYSE: PAGP, Type: GP)
The Barclays ETN+ Select MLP ETN is linked to the performance of the
Volume-Weighted Average Price (“VWAP”) of the Index. The ETN was listed
on the NYSE Arca stock exchange in March 2013 under the ticker symbol
ATMP. An investment in the ETNs involves significant risks, including
possible loss of principal, and may not be suitable for all investors.The ETNs are riskier than ordinary unsecured debt securities and have
no principal protection. The ETNs are speculative and may exhibit
high volatility. The ETNs are also subject to certain investor fees,
which will have a negative effect on the value of the ETNs. You are not
guaranteed to receive coupon payments on the ETNs. You will receive a
coupon payment on a coupon payment date only to the extent that the
accrued dividend exceeds the accrued investor fee on the relevant coupon
valuation date.
In accordance with the Index methodology as described in the prospectus
relating to the ETN, the Index is rebalanced quarterly. The 27 index
constituents (the 23 existing index constituents, along with the four
new index constituents), will be rebalanced on a capped, float-adjusted,
capitalization-weighted basis across four index business days starting
on Friday, April 11, 2014. Constituent additions to and deletions from
the Index do not reflect an opinion by Barclays Bank PLC on the
investment merits of the respective securities.
The target weights for the top Limited Partnership (“LP”) and General
Partnership (“GP”) index constituents, effective on April 11, 2014, are
reported in the table below. For more information regarding how an Index
constituent is classified as a LP or a GP, please see the prospectus
relating to the ETN.
|
LIMITED PARTNERSHIPS |
|
| GENERAL PARTNERSHIPS |
Ticker |
|
| Company |
|
| Target Weight | | | Ticker |
|
| Company |
|
| Target Weight |
EPD
|
|
|
Enterprise Products Partners
|
|
|
8.0%
| | |
ENB
|
|
|
Enbridge Inc.
|
|
|
4.0%
|
KMP
| | |
Kinder Morgan Energy Partners
| | |
8.0%
| | |
ETE
| | |
Energy Transfer Equity LP
| | |
4.0%
|
PAA
| | |
Plains All American Pipeline LP
| | |
8.0%
| | |
KMI
| | |
Kinder Morgan Inc.
| | |
4.0%
|
MMP
| | |
Magellan Midstream Partners
| | |
8.0%
| | |
OKE
| | |
Oneok Inc.
| | |
4.0%
|
ETP
| | |
Energy Transfer Partners LP
| | |
7.5%
| | |
SE
| | |
Spectra Energy Corp.
| | |
4.0%
|
| | | | | | | | |
TRP
| | |
Transcanada Corp.
| | |
4.0%
|
| | | | | | | | |
WMB
| | |
Williams Cos Inc.
| | |
4.0%
|
| | | | | | | | | | | | | | |
|
The Atlantic Trust Select MLP Index is designed to provide exposure to a
basket of midstream US and Canadian master limited partnerships, limited
liability companies and corporations (collectively, the “Index
Constituents”) that trade on major US exchanges, are classified in the
GICS® Energy Sector or GICS® Gas Utilities
Industry according to the Global Industry Classification Standard®
(“GICS”) and meet certain eligibility criteria. The Index Constituents
are selected for inclusion in the Index using the Atlantic Trust Select
Master Limited Partnership.
The Index Constituents are selected for inclusion in the Index using the
Atlantic Trust Select Master Limited Partnership Strategy (the “Strategy”)
developed by AT Investment Advisers, Inc. (formerly, “Stein Roe
Investment Counsel Incorporated d/b/a Atlantic Trust Private Wealth
Management”) (the “Index Selection Agent”). The Strategy
dynamically selects a basket of up to 100 Index Constituents based on
their long-term credit rating, the portion of their cash flow driven by
mid-stream operations and their size as measured by free-float market
capitalization and average daily trading value. The Index Selection
Agent provides the Index Constituents selected by the Strategy to
Barclays Bank PLC (the “Index Sponsor”).
About Barclays
Barclays moves, lends, invests and protects money for customers and
clients worldwide. With over 300 years of history and expertise in
banking, we operate in over 50 countries and employ over 140,000 people.
We provide large corporate, government and institutional clients with a
full spectrum of solutions to their strategic advisory, financing and
risk management needs. Our clients also benefit from access to the
breadth of expertise across Barclays. We’re one of the largest financial
services providers in the world, and are also engaged in retail banking,
credit cards, corporate banking, and wealth and investment management.
Barclays offers premier investment banking products and services to its
clients through Barclays Bank PLC. For more information, visit www.barclays.com.
(Source: Barclays)
About Atlantic Trust
Atlantic Trust is one of the nation’s leading private wealth management
firms, offering integrated wealth management for high-net-worth
individuals, families, foundations and endowments. The firm considers
clients’ financial, trust, estate planning and philanthropic needs in
developing customized asset allocation and investment management
strategies. Experienced professionals deliver a broad range of
solutions, including proprietary investment offerings and a robust open
architecture platform of traditional and alternative managers. Atlantic
Trust operates in 12 full-service locations throughout the U.S. with
$24.0 billion in assets under management (as of December 31, 2013). For
more information, visit www.atlantictrust.com.
About CIBC
CIBC is a leading Canadian-based global financial institution. Through
our Retail and Business Banking, Wealth Management and Wholesale Banking
businesses, CIBC provides a full range of financial products to
individual, small business, commercial, corporate and institutional
clients in Canada and around the world.
CIBC Wealth Management provides relationship-based advisory services and
an extensive suite of leading investment solutions to meet the needs of
personal, institutional and high-net-worth clients through an extensive
distribution network that includes CIBC Private Wealth Management, CIBC
Wood Gundy and CIBC Investor’s Edge. Our asset management, retail
brokerage and private wealth management businesses combine to create an
integrated offer, delivered through nearly 1,500 advisors across Canada.
In addition, CIBC Asset Management provides global money manager
services to institutional and high-net-worth clients and
industry-leading retail investment solutions through our two mutual fund
families—CIBC and Renaissance—and the CIBC family of managed portfolio
solutions.
Selected Risk Considerations
An investment in any ETNs linked to the Atlantic Trust Select MLP Index
(the “ETNs”) involves risks. Selected risks are summarized here, but we
urge you to read the more detailed explanation of risks described under
“Risk Factors” in the applicable prospectus supplement and pricing
supplement.
You May Lose Some or All of Your Principal: The ETNs are exposed
to any decrease in the Volume Weighted Average Price (“VWAP”) level
between the inception date and the applicable valuation date.
Additionally, if the VWAP level is insufficient to offset the negative
effect of the investor fee and other applicable costs, you will lose
some or all of your investment at maturity or upon redemption, even if
the VWAP value has increased. Because the ETNs are subject to an
investor fee and any other applicable costs, the return on the ETNs will
always be lower than the total return on a direct investment in the
index components. The ETNs are riskier than ordinary unsecured debt
securities and have no principal protection.
Credit of Barclays Bank PLC: The ETNs are unsecured debt
obligations of the issuer, Barclays Bank PLC, and are not, either
directly or indirectly, an obligation of or guaranteed by any third
party. Any payment to be made on the ETNs, including any payment at
maturity or upon redemption, depends on the ability of Barclays Bank PLC
to satisfy its obligations as they come due. As a result, the actual and
perceived creditworthiness of Barclays Bank PLC will affect the market
value, if any, of the ETNs prior to maturity or redemption. In addition,
in the event Barclays Bank PLC were to default on its obligations, you
may not receive any amounts owed to you under the terms of the ETNs.
Issuer Redemption: Barclays Bank PLC will have the right to
redeem or “call” the ETNs (in whole but not in part) at its sole
discretion and without your consent on any trading day on or after the
inception date until and including maturity.
The Payment on the ETNs is Linked to the VWAP Level, Not to the
Closing Level of the Index and Not to the Published Intraday Indicative
Value of the ETNs: Your payment at maturity or upon early redemption
is linked to the performance of the VWAP level, as compared to the
initial VWAP level. Although the VWAP level is intended to track the
performance of the Index, the calculation of the VWAP level is different
from the calculation of the official closing level of the Index.
Therefore, the payment at maturity or early redemption of your ETNs, may
be different from the payment you would receive if such payment were
determined by reference to the official closing level of the Index.
No Guaranteed Coupon Payments: You are not guaranteed to receive
coupon payments on the ETNs. You will receive a coupon payment on a
coupon payment date only to the extent that the accrued dividend exceeds
the accrued investor fee on the relevant coupon valuation date. The
amount of the accrued dividend on any coupon valuation date depends in
part on the aggregate cash value of distributions that a reference
holder would have been entitled to receive in respect of the index
constituents prior to the relevant coupon valuation date.
Market and Volatility Risk: The return on the ETNs is linked to
the performance of the VWAP level of the Index which, in turn, is linked
to the performance of the master limited partnerships and other
securities that are included as index constituents at any time. The
prices of the index constituents may change unpredictably and, as a
result, affect the level of the Index and the value of your ETNs in
unforeseeable ways.
Concentration Risk: The index constituents are companies in the
Energy Sector or Gas Utilities Sector, as determined by the GICS®
classification system. In addition, many of the index constituents are
smaller, non-diversified businesses that are exposed to the risks
associated with such businesses, including the lack of capital funding
to sustain or grow businesses and potential competition from larger,
better financed and more diversified businesses. The ETNs are
susceptible to general market fluctuations in the energy and gas MLP
market and to volatile increases and decreases in value, as market
confidence in, and perceptions regarding the index constituents change.
Your investment may therefore carry risks similar to a concentrated
securities investment in one industry or sector.
A Trading Market for the ETNs May Not Develop: Although the ETNs
are listed on NYSE Arca, a trading market for the ETNs may not develop
and the liquidity of the ETNs may be limited, as we are not required to
maintain any listing of the ETNs.
Restrictions on the Minimum Number of ETNs and Date Restrictions for
Redemptions: You must redeem at least 50,000 ETNs at one time in
order to exercise your right to redeem your ETNs on any redemption date.
You may only redeem your ETNs on a redemption date if we receive a
notice of redemption from you by certain dates and times as set forth in
the pricing supplement.
Tax Treatment: Significant aspects of the tax treatment of the
ETNs may be less favorable than a direct investment in MLPs and are
uncertain. You should consult your own tax advisor about your own tax
situation.
Barclays Bank PLC has filed a registration statement (including a
prospectus) with the SEC for the offering to which this communication
relates. Before you invest, you should read the prospectus and other
documents Barclays Bank PLC has filed with the SEC for more complete
information about the issuer and this offering. You may get these
documents for free by visiting www.etnplus.com
or EDGAR on the SEC website at www.sec.gov.
Alternatively, Barclays Bank PLC will arrange for Barclays Capital Inc.
to send you the prospectus if you request it by calling toll-free 1-888
227 2275 (ext. 2-3430), or you may request a copy from any other dealer
participating in the offering.
The ETNs may be sold throughout the day on the exchange through any
brokerage account. Commissions may apply and there are tax consequences
in the event of sale, redemption or maturity of ETNs.
Atlantic Trust Select MLP Index is a trademark of Barclays Bank PLC.
©2014 Barclays Bank PLC. All rights reserved. All other trademarks,
servicemarks or registered trademarks are the property, and used with
the permission, of their respective owners.
|
NOT FDIC INSURED |
|
|
| NO BANK GUARANTEE |
|
|
| MAY LOSE VALUE |
|
Barclays is a major global financial services provider engaged in
personal banking, credit cards, corporate and investment banking and
wealth and investment management with an extensive international
presence in Europe, the Americas, Africa and Asia. Barclays’ purpose is
to help people achieve their ambitions – in the right way. With over 300
years of history and expertise in banking, Barclays operates in over 50
countries and employs approximately 140,000 people. Barclays moves,
lends, invests and protects money for customers and clients worldwide.
Barclays offers premier investment banking products and services to its
clients through Barclays Bank PLC. For more information, visit www.barclays.com
Contacts:
Press:
Mark Lane, +1 212-412-1413
mark.lane@barclays.com
Source: Barclays Bank PLC
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