Atlantic Trust Select MLP Index used as underlying index in the
Barclays ETN+ Select MLP ETNs (ticker: ATMP)
Barclays Bank PLC announced today that following the close of
business on Friday, April 9, 2015, the following two index
constituents will be added to the Atlantic Trust Select MLP Index
(the “Index”):
- MPLX LP (NYSE: MPLX);
- Phillips 66 Partners LP (NYSE: PSXP).
The Barclays ETN+ Select MLP ETNs are linked to the performance
of the Volume-Weighted Average Price (“VWAP”) of the Index. The
ETNs were 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 ETNs, the Index is rebalanced quarterly.
The 29 index constituents will be rebalanced on a capped,
float-adjusted, capitalization-weighted basis across four index
business days starting on Friday, April 9, 2015. 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
9, 2015, 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 ETNs.
LIMITED PARTNERSHIPS GENERAL
PARTNERSHIPS Ticker Company
TargetWeight Ticker
Company TargetWeight EPD
Enterprise Products Partners 8.00% ENB Enbridge Inc. 4.0% ETP
Energy Transfer Partners LP 8.00% ETE Energy Transfer Equity LP
4.0% MMP Magellan Midstream Partners 8.00% KMI Kinder Morgan Inc.
4.0% PAA Plains All American Pipeline LP 8.00% OKE Oneok Inc. 4.0%
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 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 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 $26.2 billion in
assets under management (as of December 31, 2014). 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.
©2015 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 an international financial services provider engaged
in personal, corporate and investment banking, credit cards and
wealth management with an extensive presence in Europe, the
Americas, Africa and Asia. Barclays’ purpose is to help people
achieve their ambitions – in the right way. With 325 years of
history and expertise in banking, Barclays operates in over 50
countries and employs over 130,000 people. Barclays moves, lends,
invests and protects money for customers and clients worldwide. For
further information about Barclays, please visit our website
www.barclays.com.
Press:Barclays Bank PLCMark Lane, +1
212-412-1413mark.lane@barclays.com
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