CIBC Atlas Select MLP Index is used as the underlying index in
the iPath Select MLP ETNs (ticker: ATMP)
Barclays Bank PLC announced today that during the next quarterly
CIBC Atlas Select MLP Index (the “Index”) rebalancing period, which
will commence following the close of business on Friday, July 9,
2021 (the “Rebalancing Date”), there will be no changes to the
constituents in the Index.
The iPath Select MLP ETNs (the “ETNs”) are linked to the
performance of the Volume-Weighted Average Price (“VWAP”) level of
the Index. The ETNs are listed on the CBOE BZX Exchange 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’s methodology (as described in the
prospectus relating to the ETNs), the Index is rebalanced
quarterly. The Index is designed to provide exposure to a basket of
midstream US and Canadian master limited partnerships, limited
liability companies and corporations that trade on major US
exchanges (the “Index Constituents”). The Index Constituents 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 currently includes 20 constituents and cash. The Index
Constituents will be rebalanced on a capped, float-adjusted,
capitalization-weighted basis across four Index business days
starting on the Rebalancing Date. 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 highest weighted Limited Partnership
(“LP”) Index Constituents and highest weighted General Partnership
(“GP”) Index Constituents, effective after the rebalance on the
Rebalancing Date, 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
Target Weight
Ticker
Company
Target Weight
EPD
Enterprise Products Partners
8.00%
ENB
Enbridge Inc.
4.00%
ET
Energy Transfer LP
8.00%
KMI
Kinder Morgan Inc.
4.00%
MMP
Magellan Midstream Partners
8.00%
LNG
Cheniere Energy Inc.
4.00%
PAA
Plains All American Pipeline
LP
8.00%
OKE
Oneok Inc.
4.00%
MPLX
MPLX LP
8.00%
TRGP
Targa Resources Corp
4.00%
WES
Western Midstream Partners,
LP
8.00%
TRP
TC Energy Corp.
4.00%
WMB
Williams Cos Inc.
4.00%
PAGP
Plains GP Holding LP
4.00%
Source: Barclays
The Index Constituents are selected for inclusion in the Index
using the CIBC Select MLP Strategy (the “Strategy”)
developed by CIBC Private Wealth Advisors, Inc. (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 volume. The Index Selection Agent provides
the Index Constituents that are selected by the Strategy to
Barclays Bank PLC, as index sponsor.
For further information, please contact the Barclays ETN desk at
1-212-528-7990.
The prospectus for the ETNs to which this communication relates
can be found at: www.ipathetn.com/ATMPprospectus
About CIBC
CIBC (NYSE: CM) (TSX: CM) is a leading North American financial
institution with 10 million personal banking, business, public
sector and institutional clients. CIBC offers a full range of
advice, solutions and services in the United States, across Canada
and around the world. In the U.S., CIBC Bank USA provides
commercial banking, private and personal banking and small business
banking solutions and CIBC Private Wealth offers investment
management, wealth strategies and legacy planning. Visit us at
cibc.com/US.
Private banking is offered by CIBC Bank USA, Member FDIC and
Equal Housing Lender. CIBC Bank USA and CIBC Private Wealth Group,
LLC are both indirect, wholly owned subsidiaries of CIBC. The CIBC
logo is a registered trademark of CIBC, used under license.
Investment Products Offered are Not FDIC-Insured, May Lose Value
and are Not Bank Guaranteed.
About Barclays
Barclays is a British universal bank. We are diversified by
business, by different types of customers and clients, and by
geography. Our businesses include consumer banking and payments
operations around the world, as well as a top-tier, full service,
global corporate and investment bank, all of which are supported by
our service company which provides technology, operations and
functional services across the Group.
Barclays offers investment banking products and services in the
US through Barclays Capital Inc. For further information about
Barclays, please visit our website www.barclays.com
Selected Risk Considerations
An investment in any ETNs linked to the CIBC Atlas 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 CBOE BZX Exchange, 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.
Uncertain 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.
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.
CIBC Atlas Select MLP Index is a trademark of Barclays Bank
PLC.
©2021 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
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version on businesswire.com: https://www.businesswire.com/news/home/20210706005019/en/
Matt Scully +1 212 526 7844 matthew.scully@barclays.com
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