Barclays and OFI Global Asset Management announce changes to the Barclays OFI SteelPath Midstream MLP Index
Barclays OFI SteelPath Midstream MLP Index used as underlying index in
the Barclays OFI SteelPath MLP ETNs (ticker: OSMS)
Barclays Bank PLC (“Barclays”) and OFI Global Asset Management, which
consists of OppenheimerFunds, Inc. and certain of its advisory
subsidiaries, announced today that following the close of business on
Friday, October 9, 2015, the following Index Constituents will be
removed from the Barclays OFI SteelPath Midstream MLP Index (the
Targa Resources Partners LP
Crestwood Equity Partners LP
DCP Midstream Partners LP
In addition to the above removals and also occurring following the close
of business on Friday, October 9, 2015, the following three constituents
will be added to the Index:
Antero Midstream Partners LP
Shell Midstream Partners LP
Dominion Midstream Partners LP
The Barclays OFI SteelPath MLP ETNs (the “ETNs”) are linked to the
Volume-Weighted Average Price (“VWAP”) of the Index. The ETNs were
listed on the NYSE Arca stock exchange on April 24, 2014. 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 also subject to certain investor
fees, which will have a negative effect on the value of the ETNs. The
ETNs are speculative and may exhibit high volatility. 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
In accordance with the Index methodology as described in the prospectus
relating to the ETNs, the Index is rebalanced quarterly. The 35 Index
Constituents will be rebalanced on a capped, float-adjusted,
capitalization-weighted basis across four index business days starting
on Friday, October 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 Index is designed to track the performance of a basket of direct
interests in master limited partnerships and limited liability companies
(collectively, the “Index Constituents”) organized in the United States
that trade on certain U.S. exchanges, are classified in the Midstream
Oil & Gas category or Liquid Petroleum & Natural Gas Shippers category
according to the Bloomberg Industry Classification System®
and meet certain eligibility criteria.
The Index Constituents are selected for inclusion in the Index using the
OFI SteelPath Midstream MLP Strategy (the “Strategy”) developed by OFI
SteelPath, Inc. The Strategy selects a basket of up to 35 Index
Constituents and allocates a notional weight in the Index for each Index
Constituent based on certain eligibility criteria, including their
distribution payment history and their size as measured by free-float
market capitalization and average daily trading value. Owning the
ETNs is not the same as owning interests in the Index Constituents or a
security directly linked to the performance of the Index.
About OFI Global Asset Management
OFI Global Asset Management consists of OppenheimerFunds, Inc. and
certain of its advisory subsidiaries, including OFI Global Asset
Management, Inc., OFI Global Institutional, Inc., OFI SteelPath, Inc.
and OFI Global Trust Company. The firm offers a full range of investment
solutions across equity, fixed income and alternative asset classes. As
of September 30, 2015, the firm managed $213 billion in assets. Clients
include institutional investors globally such as corporations, public
funds, foundations and endowments, as well as retail mutual fund
Selected Risk Considerations
An investment in any ETNs linked to the Barclays OFI SteelPath Midstream
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
Concentration Risk: The index constituents are companies in the
Midstream – Oil & Gas and Liquid Petroleum and Natural Gas Shippers
categories, as determined by the Bloomberg Industry Classification System®
(“BCIS”). 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 infrastructure and midstream energy
business 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
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 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
1-877-764-7284, or you may request a copy from any other dealer
participating in the offering.
OppenheimerFunds Distributor, Inc. (“OFDI”), doing business as OFI
Global Asset Management, assists in the promotion of the Barclays OFI
SteelPath MLP ETNs. OFDI is not affiliated with Barclays Capital Inc. or
Barclays Bank PLC.
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.
“OFI SteelPath”, “OFI Global Asset Management”, the Four Hands Design
Mark (#86085815), and the OFI Global Asset Management Design Mark
(#86049459) are trademarks of OFI SteelPath, Inc. (the “Index Selection
Agent”) or its licensors, and have been licensed for use by Barclays
Bank PLC in connection with the Barclays OFI SteelPath Midstream MLP
Index. “Barclays” is a trademark of Barclays Bank PLC. Barclays Capital
Inc. (the “Index Sponsor”) and the Index Selection Agent do not
guarantee the accuracy and/or completeness of the Index, any data
included therein, or any data from which it is based, and neither the
Index Sponsor nor the Index Selection Agent shall have any liability for
any errors, omissions, or interruptions therein. The Index Sponsor and
the Index Selection Agent do not make any representation or warranty,
express or implied, to the owners of the ETNs or any member of the
public regarding the advisability of investing in securities generally
or in the ETNs particularly or the ability of the Index to track general
©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.
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