Barclays launches Gold Trendpilot ETNs, PBUG
Tuesday, Barclays Bank API announced the launch of the ETN Pacer® iPath® Gold Trendpilot (PBUG). ETNs will track the performance of the Pacer Barclays Gold Trendpilot Total Return Index.
“At Pacer Financial, we are delighted to extend our relationship with Barclays by adding a second AND N following gold, ”said Sean O’Hara, president of Pacer Financial. “In addition to GBUG, zero investor fees AND N which tracks the price of gold, Pacer and Barclays add a gold AND N which uses the Pacer Trendpilot methodology (PBUG). “
“We are delighted to further expand our iPath platform with today’s launch of the Pacer iPath Gold Trendpilot AND N. Not only does this reinforce our commitment to providing investors with innovative risk management solutions, it also marks our second product partnership with Pacer Financial, ”said Shilpa Akella, Managing Director and Head of Cross-Asset Structuring Americas. “It couldn’t come at a better time, as we continue to see investor demand for commodities, and we believe the Trendpilot methodology is uniquely positioned to provide access to gold with mitigated risk.”
The index is calculated on a total return basis. It is intended to reflect (1) the performance over time of a dynamic allocation strategy by taking a notional exposure of 100%, 50% or 0% to the Barclays Gold 3 Month Deferred Index Excess Return (the “Index gold ”) daily on the basis of three specified signals which refer to the short and long term performance of the Gold Index and (2) the return which corresponds to the weekly interest rate announced for bonds of the US Treasury at 3 months specified.
In addition, the Gold Index is intended to reflect the performance of a moving position in specified gold futures that will become the first liquid futures near three months in the future according to a specified timeframe.
ETNs do not guarantee any repayment of capital at or before maturity and pay no interest during their term. Instead, investors receive a cash payment in US dollars at maturity or on early redemption depending on the performance of the index.
ETNs are expected to start trading on the NYSE Arca exchange on June 16, 2021. ETNs will have an investor fee of 0.65% per annum. They will also be redeemable at Barclays sole discretion on any trading day from inception until maturity. Please refer to AND N prospectus for more details.
Barclays is one of the largest issuers of ETNs in the United States, with over 30% market share in notional value. The ETN prospectus is available on the product’s website at www.iPathETN.com/.