NEW YORK–(BUSINESS WIRE)–Barclays Bank PLC (“Barclays”) and Pacer Financial LLC (“Pacer”) announced today a partnership focused on marketing and education for the iPath® Gold ETNs (the “ETNs”). As part of the agreement with Barclays, Pacer will provide marketing, educational and promotional services in connection with the marketing for sale of the ETNs.
Barclays additionally announced today that it plans to change the name for the iPath® Gold ETNs, which are currently listed on the New York Stock Exchange under the ticker symbol “GBUG”. The current and proposed names for the ETNs are listed in the table below. The ETNs will continue to trade under the same ticker symbol following the name change, which will be effective before the open of trading on September 14, 2020.
Current ETN Name
New ETN Name
iPath® Gold ETNs
Pacer® iPath® Gold ETNs
The partnership combines Pacer’s distribution capabilities across a wide array of investment offerings, with Barclays’ brand and position in exchange-traded notes.
“Investors have witnessed an incredible performance in gold this year, and investor appetite is strong for products that can offer both exposure to this safe haven asset and minimal fees” said Sean O’Hara, Director at Pacer Financial. “Partnering with Barclays’ iPath business was a natural choice. Combining our firms’ efforts provides an advantageous position to bolster this investment product through education and marketing. Two areas we thrive in.”
“We are excited to enter a distribution and innovation partnership with Pacer on our core suite of iPath Commodity ETNs.” said Gavin Filmore, Head of Exchange Traded Product Platforms, at Barclays. “The commodities asset class continues to offer investors the potential for strategic diversification and tactical investment opportunities. iPath Commodities ETNs are generally used as part of a larger asset allocation toolkit for advisors, and since 2006, have had a unique role to play in many investor portfolios.”
“This partnership provides an opportunity to expand upon the strategic expertise from both Pacer and Barclays,” said Joe Thomson, President at Pacer Financial. “Our shared experience and resources in marketing and distribution, paired with the timely strategy behind the iPath® Gold ETN, brings a unique solution for investors eager to capitalize on the commodities market.”
The prospectus relating to the ETNs can be found on EDGAR, the SEC website at: www.sec.gov, as well as on the product website at the link listed below:
Barclays is a British universal bank. We are diversified by business, by different types of customer and client, and 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 home.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. Therefore, a decrease in the level of the Index could cause you to lose up to your entire investment in the ETNs. The ETNs are riskier than ordinary unsecured debt securities and have no principal protection.
The ETNs May Generate a Profit for the Issuer and Its Affiliates: Although the ETNs do not have an investor fee, the ETNs may generate a profit for the issuer and its affiliates from a return generated on the principal amount that the issuer receives from the sale of the ETNs to the extent such return exceeds the interest rate included in the total return feature of the underlying index together with the costs of providing the ETNs and their exposure to the underlying index. It is possible that the issuer and its affiliates could receive substantial returns from the ETNs while the market value of the ETNs declines.
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. 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, 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.
No Direct Exposure to Gold or Silver: THE ETNS OFFER EXPOSURE TO FUTURES CONTRACTS AND NOT DIRECT EXPOSURE TO GOLD OR SILVER OR THEIR SPOT PRICES. THESE FUTURES CONTRACTS WILL NOT TRACK THE PERFORMANCE OF GOLD OR SILVER. In addition, the nature of the futures market for gold and silver 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 or silver 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.
“Barclays Gold 3 Month Index Total Return” is a trademarks of Barclays Bank PLC.
© 2020 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
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