Notice regarding the daily redemption value of the iPath®
Bloomberg Natural Gas Subindex Total ReturnSM Exchange Traded
Notes
Barclays Bank PLC (“Barclays”) announced an investor guidance
notification today regarding the iPath® Bloomberg Natural Gas
Subindex Total ReturnSM Exchange Traded Notes (the “ETNs”). The
ETNs currently trade on the NYSE Arca stock exchange under the
ticker symbol “GAZ”. The Index underlying the ETNs is the Bloomberg
Natural Gas Subindex Total ReturnSM (the “Index”), with Bloomberg
ticker BCOMNGTR.
The daily redemption value of the ETNs on October 29, 2015 hit
an all-time low of $0.65 per ETN. At the current time, the daily
redemption value of the ETNs would drop to $0 if the Index
decreases by another 44% from the Index closing level on October
29, 2015. Additionally, as accrued investor fees in the ETNs grow
over time regardless of the performance of the Index, the magnitude
of the decrease in the level of the Index required for the daily
redemption value of the ETNs to drop to $0 will also reduce
progressively.
The Index has experienced a persistent decline since July 3,
2008, with the Ievel of the Index decreasing approximately 97%
since this date. The maximum decrease in the level of the Index in
a one year period since the ETN’s inception was 81% from July 2008
to July 2009. During the last three years, the level of the Index
decreased an average of approximately 25% per year. Continued
weakness in the Henry Hub Natural Gas futures markets may result in
a significant decline in the level of the Index in the months
ahead, which in turn may result in the daily redemption value of
the ETNs declining significantly and potentially to $0.
Accordingly, anyone considering investing in the ETNs or continuing
to hold the ETNs should consider these risks when making an
investment decision.
Barclays previously announced the temporary suspension of
further issuances of the ETNs on August 21, 2009. As described in
that press release and also in the pricing supplement relating to
the ETNs, the limitations on issuance and sale implemented could
from time to time cause an imbalance of supply and demand in the
secondary market for the ETNs, which may cause the ETNs to trade at
a premium or discount in relation to their indicative value.
Barclays further issued an investor guidance notices on May 18,
2012 and January 22, 2014 highlighting the persistent and material
premium in the trading price of the ETNs on the exchange in
relation to their intraday indicative value.
The ETNs are riskier than ordinary unsecured debt securities and
have no principal protection. 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. An investment in the ETNs involves significant risks,
including possible loss of principal and may not be suitable for
all investors.
Investors considering any purchase of the ETNs should be aware
of the fact that the intraday market prices of the ETNs on the
exchange could be significantly higher than the intraday indicative
value of the ETNs as calculated with reference to the level of the
underlying index, minus an investor fee.
Daily redemptions at the option of the holders of the ETNs
continue to stay open. The pricing supplement relating to the ETNs
can be found on EDGAR, the SEC website at: www.sec.gov, as well as
on the product website at www.iPathETN.com.
Barclays Bank PLC is the issuer of iPath® ETNs and Barclays
Capital Inc. is the issuer’s agent in the distribution. Barclays
Bank PLC and Barclays Capital Inc. have retained the services of
BlackRock Investments, LLC, a member of FINRA, to promote the ETNs
and provide certain services relating to the ETNs.
iPath ETNS: For further information about the iPath ETNs
go to: http://www.iPathETN.com.
Selected Risk Considerations
An investment in the iPath ETNs described herein (the “ETNs”)
involves risks, including possible loss of principal, and may not
be suitable for all investors. 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 level of the underlying index
between the inception date and the applicable valuation date.
Additionally, if the level of the underlying index 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 value of such index 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.
Market and Volatility Risk: The prices of physical
commodities, including the commodities underlying the index
components, can fluctuate widely due to supply and demand
disruptions in major producing or consuming regions. Additionally,
the market value of the ETNs may be influenced by many
unpredictable factors including changes in supply and demand
relationships, governmental policies and economic events.
Concentration Risk: Because the ETNs are linked to an
index composed of futures contracts on a single commodity or in
only one commodity sector, the ETNs are less diversified than other
funds. The ETNs can therefore experience greater volatility than
other funds or investments.
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.
No Interest Payments from the ETNs: You may not receive
any interest payments on the ETNs.
Restrictions on the Minimum Number of ETNs and Date
Restrictions for Redemptions: You must redeem at least 50,000
ETNs of the same series 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 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.iPathETN.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 1-877-764-7284, or you may request
a copy from any other dealer participating in the offering.
BlackRock Investments, LLC assists in the promotion of the iPath
ETNs.
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.
“Bloomberg®”, “Bloomberg Commodity IndexSM”, “Bloomberg
Commodity Index Total ReturnSM”, “Bloomberg Natural Gas Subindex
Total ReturnSM” and “BCOM” are service marks of Bloomberg Finance
L.P. and its affiliates (collectively, “Bloomberg”) and have
been licensed for use for certain purposes by Barclays Bank PLC.
Any ETNs based on the Bloomberg Commodity Indices are not
sponsored, endorsed, sold or promoted by Bloomberg, UBS AG, UBS
Securities LLC (“UBS”), or any of their subsidiaries or
affiliates. None of Bloomberg, UBS AG, UBS Securities or any of
their subsidiaries or affiliates makes any representation or
warranty, express or implied, to the owners of or counterparties to
the ETNs or any member of the public regarding the advisability of
investing in securities or commodities generally or in the ETNs
particularly.
© 2015 Barclays Bank PLC. All rights reserved. iPath, iPath ETNs
and the iPath logo are registered trademarks of Barclays Bank PLC.
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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version on businesswire.com: http://www.businesswire.com/news/home/20151109006124/en/
Press:Barclays Bank PLCMark Lane, +1
212-412-1413mark.lane@barclays.com
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