NEW YORK–(BUSINESS WIRE)–Barclays Bank PLC (“Barclays”) announced today the launch of the Pacer® iPath® Gold Trendpilot ETNs (the “ETNs”). The ETNs will track the performance of the Pacer Barclays Gold Trendpilot Total Return Index (the “Index”).
“At Pacer Financial we are pleased to extend our relationship with Barclays by adding a second ETN that tracks gold,” says Sean O’Hara, President at Pacer Financial. “In addition to GBUG, a zero investor fee ETN that tracks the price of gold, Pacer and Barclays are adding a gold ETN that utilizes the Pacer Trendpilot methodology (ticker: PBUG).”
“We are excited to further expand our iPath platform with today’s launch of the Pacer iPath Gold Trendpilot ETN. Not only does this reinforce our commitment to offering investors with innovative risk management solutions, but it also marks our second product partnership with Pacer Financial,” says Shilpa Akella, Managing Director and Head of Cross-Asset Structuring Americas. “This could not come at a better time, as we continue to see investor demand for commodities and we believe that the Trendpilot methodology is uniquely positioned to offer risk mitigated access to gold.”
The Index is calculated on a total return basis and is intended to reflect (1) the performance over time of a dynamic allocation strategy by taking 100%, 50% or 0% notional exposure to the Barclays Gold 3 Month Deferred Index Excess Return (the “Gold Index”) on a daily basis based on three specified signals that reference the short-term and long-term performance of the Gold Index and (2) the return that corresponds to the weekly announced interest rate for specified 3-month U.S. Treasury bills. The Gold Index is intended to reflect the performance of a rolling position in specified gold futures contracts that will become the first liquid nearby futures contracts three months in the future in accordance with a specified schedule.
The ETNs do not guarantee any return of principal at or prior to maturity and do not pay any interest during their term. Instead, you will receive a cash payment in U.S. dollars at maturity or upon early redemption based on the performance of the Index.
The ETNs are expected to begin trading on the NYSE Arca exchange on June 16, 2021. The ETNs will feature an investor fee of 0.65% per annum and will also be redeemable at the sole discretion of Barclays on any trading day on or after their inception until maturity. Please refer to the ETN prospectus for further details.
Barclays is a top issuer of ETNs in the US, with over 30% market share of notional value* and Barclays Capital Inc. is the issuer’s agent in the distribution. Please contact Barclays further questions:
- Directly contact Barclays at firstname.lastname@example.org or 1-212-528-7990 to obtain further information
- Instruct your broker/advisor/custodian to email us at email@example.com or to call us at: 1-212-528-7990
You may call in together with your broker/advisor/custodian or have them speak to us on your behalf.
*Source: Bloomberg, as of June 6, 2021.
Barclays is a transatlantic consumer and wholesale bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US.
With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 83,500 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
About Pacer Financial LLC
Pacer Financial’s mission is to use our experience and position in the financial services network to grow the businesses of our distribution partners and financial advisors. Pacer Financial does this by working with our distribution partners to bring products and ideas to financial advisors that address the challenges of the current market and meet the needs of investors. Pacer Financial is selective in our collaborations with distribution partners – only choosing a small group of partners with diverse and innovative strategies that address wealth accumulation and distribution, downside protection and taxes. Pacer Financial only works through retail broker-dealers and registered investment advisors. We do not work with the public directly. Pacer Financial, Inc., member FINRA, SIPC is the distributor for Pacer ETFs.
Selected Risk Considerations
An investment in the iPath ETNs described herein 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 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 level has increased or decreased, as the case may be. Because the ETNs are subject to an investor fee and 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: If specified in the applicable prospectus, Barclays Bank PLC will have the right to redeem or call a series of 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.
Market and Volatility Risk: The market value of the ETNs may be influenced by many unpredictable factors and may fluctuate between the date you purchase them and the maturity date or redemption date. You may also sustain a significant loss if you sell your ETNs in the secondary market. Factors that may influence the market value of the ETNs include prevailing market prices of the U.S. stock markets, the index components included in the underlying index, and prevailing market prices of options on such index or any other financial instruments related to such index; and supply and demand for the ETNs, including economic, financial, political, regulatory, geographical or judicial events that affect the level of such index or other financial instruments related to such index.
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.
No Direct Exposure to Gold: THE ETNS OFFER EXPOSURE TO FUTURES CONTRACTS AND NOT DIRECT EXPOSURE TO GOLD OR ITS SPOT PRICES. THESE FUTURES CONTRACTS WILL NOT TRACK THE PERFORMANCE OF GOLD. In addition, the nature of the futures market for gold has historically resulted in a cost to maintain a rolling position in the futures contracts underlying each index. As a result, the level of the underlying index, which tracks a rolling position in specified futures contracts, may experience significant declines as a result of these costs, known as roll costs, especially over a longer period. The price of gold will perform differently than the underlying index and, in certain cases, may have positive performance during periods where the underlying index is experiencing negative performance. In turn, an investment in the ETNs may experience a significant decline in value over time, the risk of which increases the longer that the ETNs are held.
A Trading Market for the ETNs May Not Develop: Although the ETNs are listed on a U.S. national securities 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.
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 5,000 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 product prospectus.
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.
The ETNs may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of ETNs you may redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemption or maturity of ETNs. Sales in the secondary market may result in significant losses.
The “Pacer Barclays Gold Trendpilot Total Return Index” and the “Barclays Gold 3 Month Deferred Index Excess Return” are trademarks of Barclays Bank PLC.
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