iPath® Pure Beta Coffee ETN (CAFE)
The iPath® Pure Beta Coffee ETN is designed to provide investors with exposure to the Barclays Coffee Pure Beta Total Return Index.
The Barclays Coffee Pure Beta Total Return Index (the "Index") reflects the returns that are potentially available through an unleveraged investment in the futures contracts in the Coffee markets. The Index may roll into one of a number of futures contracts with varying expiration dates, as selected using the Barclays Pure Beta Series 2 Methodology.
|Daily Indicative Value†||$25.03|
† The "Daily Indicative Value" is historical, does not guarantee future performance, and is shown for illustrative purposes only. The issuer or an affiliate will provide the official Redemption Value to the redeeming holder in advance of any redemption. See additional information below.
* Market Capitalization = Daily Indicative Value x ETNs Outstanding
|20-Day Volume Average||2,091|
|Primary Exchange||NYSE Arca|
|Intraday Indicative Value Ticker||CAFE.IV|
|Bloomberg ETN Keystroke||CAFE<EQUITY><GO>|
|Bloomberg Index Ticker||BCC2KCPT|
|Futures Execution Cost||0.10%|
|iPath Indicative Value Return||11.14%||-6.40%||49.66%||69.15%||49.87%||-14.67%||N/A||N/A||-19.29%|
|iPath Market Price Return||11.87%||-5.68%||49.77%||67.85%||50.14%||-14.53%||N/A||N/A||-19.21%|
Source: BlackRock. Period ending 07/31/2014.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investment, when sold or redeemed may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. See additional market price information.
|Barclays Coffee Pure Beta TR||1.00|
|MSCI EAFE Index||0.14|
|MSCI Emerging Markets IndexSM||0.12|
|Barclays US Aggregate Bond Index||0.16|
|Bloomberg Commodity℠ (Total Return Index)||0.54|
Sources: S&P, UBS Securities LLC, Dow Jones Opco, LLC, Barclays, MSCI Inc., BlackRock, 3 years based on monthly returns.
Index Returns measure returns over the relevant period using the change in the index level expressed as a percentage from the beginning of the relevant period to the end of the relevant period. Index Returns are for illustrative purposes only and do not represent actual iPath ETN performance. Index Returns do not reflect any management fees, transaction costs, or expenses which would reduce your actual return. Indexes are unmanaged and one cannot invest directly in an index.
Market Returns measure returns over the relevant period using the change in the midpoint of the bid/ask spread at 4:00 pm Eastern time (or the last midpoint of the bid/ask spread prior to 4:00 pm Eastern time) expressed as a percentage from the beginning of the relevant period to the end of the relevant period and do not represent the returns you would receive if you traded at other times. Market Returns do not account for brokerage commissions, which will reduce actual returns.
Indicative Value Returns
The Indicative Value Returns measure the returns over the relevant period using the change in the Indicative Value expressed as a percentage from the beginning of the relevant period to the end of the relevant period.
Subject to the notification requirements described in the applicable prospectus, the ETNs may be redeemed by the holder on any Redemption Date during the term of the ETNs. If the ETNs are redeemed by the holder, on such Redemption Date, the holder will receive a cash payment in the U.S. dollars per ETN in an amount equal to the Closing Indicative Value of the ETNs of the applicable Valuation Date. A holder must redeem at least 50,000 iPath ETNs2 of the same series at one time in order to exercise the right to redeem ETNs on any Redemption Date.
A Redemption Date is the third business day following each Valuation Date (other than the Final Valuation Date). The Final Redemption Date will be the third business day following the Valuation Date that is immediately prior to the Final Valuation Date. Valuation Date means each business day from the Initial Valuation Date to the Final Valuation Date, inclusive or, if such date is not a trading day, the next succeeding trading day, not to exceed five business days.
An "intraday indicative value" meant to approximate the intrinsic economic value of each series of iPath ETNs, is calculated and published every 15 seconds during each trading day by NYSE Arca or a successor via the facilities of the Consolidated Tape Association under the respective ticker symbol listed above. Additionally, the Daily Indicative Value of the iPath ETNs is calculated and posted each trading day to the Indicative Values table above. In connection with iPath ETNs, the term "intraday indicative value" refers to the value at a given time determined based on the following equation:
Intraday Indicative Value = Closing Indicative Value on the immediately preceding calendar day X Current Daily Index Factor
Closing Indicative Value = The Closing Indicative Value of the iPath ETNs calculated in the manner described in the applicable prospectus;
Current Daily Index Factor = The most recent published level of the Index underlying the iPath ETNs as reported by the relevant index sponsor / the closing level of that Index on the immediately preceding trading day.
The intraday indicative value calculation is provided for reference purposes only. It is not intended as a price or quotation, or as an offer or solicitation for the purchase, sale, redemption or termination of the iPath ETNs, nor does it reflect hedging or transaction costs, credit considerations, market liquidity, or bid-offer spreads. Furthermore, as the intraday indicative note value is calculated using the Closing Indicative Value on the immediately preceding calendar day, the intraday indicative value published at any time during a given trading day will not reflect the Futures Execution Cost or the Investor Fee that may have accrued over the course of such trading day. Published Index levels from the index sponsor may occasionally be subject to delay or postponement. Any such delays or postponements will affect the Current Index Level and therefore the intraday indicative value of the iPath ETN. Index levels provided by the index sponsor do not necessarily reflect the depth and liquidity of the underlying commodities markets. For this reason and others, the actual trading price of the iPath ETN may be different from their intraday indicative value.
1 The Investor Fee per ETN is equal to the Yearly Fee times the applicable Closing Indicative Value times the applicable Daily Index Factor, calculated on a daily basis in the following manner. The Investor Fee on the Inception Date equaled zero. On each subsequent calendar day until maturity or early redemption, the Investor Fee per ETN will be equal to (1) the Yearly Fee times (2) the applicable Closing Indicative Value on the immediately preceding calendar day times (3) the applicable Daily Index Factor on that day (or, if such day is not an index business day, one) divided by (4) 365. The Daily Index Factor on any index business day will be the closing level of the Index to which those ETNs are linked on such index business day divided by (2) the closing level of such underlying Index on the immediately preceding index business day. The initial index level is the level of the Index on the Inception Date. In addition, on each calendar day, a "Futures Execution Cost" will be charged and deducted from the Closing Indicative Value of the ETNs. The net effect of the Futures Execution Cost accumulates over time and is subtracted at a rate of 0.10% per year. See the applicable prospectus for more details.
2 The issuer may from time to time in its sole discretion reduce, in part or in whole, the minimum redemption amount of 50,000 ETNs, applicable to all holders, at the time the reduction becomes effective.
Selected Risk Considerations
An investment in the iPath ETNs described herein (the "ETNs") 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 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.
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.
Barclays Pure Beta Series 2 Methodology: The Barclays Pure Beta Series 2 Methodology seeks to mitigate distortions in the commodities markets associated with investment flows and supply and demand distortions. However, there is no guarantee that the Pure Beta Series 2 Methodology will succeed in these objectives and an investment in the ETNs linked to indices using this methodology may underperform compared to an investment in a traditional commodity index linked to the same commodities.
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.
Each of the Barclays commodities indices referenced herein is a trademark of Barclays Bank PLC.