Barclays Clarifies Treatment of Corporate Actions Affecting Constituents of the Atlantic Trust Select MLP Index

New York - 25 November 2014

Atlantic Trust Select MLP Index used as underlying index in the Barclays ETN+ Select MLP ETNs (ticker: ATMP) 

It has been announced that two constituents of the Atlantic Trust Select MLP Index (the “Index”) are expected to be acquired by Kinder Morgan Inc. (NYSE:KMI) which is currently also a constituent of the Index. The two Index constituents are:
  • El Paso Pipeline Partners LP; (NYSE:EPB)
  • Kinder Morgan Energy Partners LP; (NYSE:KMP)

The two acquisitions are anticipated to be completed by 2014 year end. In accordance with the index methodology, each acquisition will be treated as a special case of delisting. A notional cash allocation equal to the number of constituent shares times the closing price of the respective constituent on the day preceding the effective date of the acquisition will replace both Index constituents, respectively. Such cash allocation will remain in the index until the next scheduled rebalance, and will be reinvested into the Index on the next Rebalancing Date. The Index is rebalanced quarterly over four index business days starting on, January 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 Barclays ETN+ Select MLP ETNs are linked to the performance of the Volume-Weighted Average Price (“VWAP”) of the Index. The ETNs were listed on the NYSE Arca stock exchange in March 2013 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.

The Index Selection Agent, AT Investment Advisers, Inc., provides the Index Constituents selected by the Atlantic Trust Select Master Limited Partnership Strategy to Barclays Bank PLC, the Index Sponsor.

The Atlantic Trust Select MLP Index is designed to provide exposure to a basket of midstream US and Canadian master limited partnerships, limited liability companies and corporations (collectively, the “Index Constituents”) that trade on major US exchanges, 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 Constituents are selected for inclusion in the Index using the Atlantic Trust Select Master Limited Partnership. 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.

Atlantic Trust is one of the nation’s leading private wealth management firms, offering integrated wealth management for high-net-worth individuals, families, foundations and endowments. The firm considers clients’ financial, trust, estate planning and philanthropic needs in developing customized asset allocation and investment management strategies. Experienced professionals deliver a broad range of solutions, including proprietary investment offerings and a robust open architecture platform of traditional and alternative managers. Atlantic Trust operates in 12 full-service locations throughout the U.S. with $24.0 billion in assets under management (as of December 31, 2013). 

CIBC is a leading Canadian-based global financial institution. Through our Retail and Business Banking, Wealth Management and Wholesale Banking businesses, CIBC provides a full range of financial products to individual, small business, commercial, corporate and institutional clients in Canada and around the world. CIBC Wealth Management provides relationship-based advisory services and an extensive suite of leading investment solutions to meet the needs of personal, institutional and high-net-worth clients through an extensive distribution network that includes CIBC Private Wealth Management, CIBC Wood Gundy and CIBC Investor’s Edge. Our asset management, retail brokerage and private wealth management businesses combine to create an integrated offer, delivered through nearly 1,500 advisors across Canada. In addition, CIBC Asset Management provides global money manager services to institutional and high-net-worth clients and industry-leading retail investment solutions through our two mutual fund families—CIBC and Renaissance—and the CIBC family of managed portfolio solutions.

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