Barclays Bank has partnered with OFI Global Asset Management to launch the new Barclays OFI SteelPath MLP ETNs.
Additionally, Barclays is planning to list the new ETNs on the NYSE Arca Stock Exchange.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Barclays anticipates that the ETNs will start trading on NYSE Arca from 24 April 2014, following the approval from the exchange.
The ETNs will be linked to the Volume-Weighted Average Price (VWAP) of the Barclays OFI SteelPath Midstream MLP Index (the Index).
The ETNs will also be subject to certain investor fees and may exhibit high volatility.
According to Barclays, the MLP Index will track the performance of a basket of direct interests in master limited partnerships and limited liability companies.
The Index will focus on distribution growth and low commodity sensitivity incorporates key aspects of the OFI SteelPath Midstream MLP Strategy.
The deal will integrate OFI SteelPath’s expertise within the energy infrastructure space with Barclays’ role in exchange-traded notes.
The ETNs will offer investor’s exposure to the OFI SteelPath Midstream MLP Strategy, which expands OFI SteelPath’s footprint beyond mutual funds and separately managed accounts offered by the OFI Global Asset Management franchise.
Krishna Memani, CIO of OppenheimerFunds, said: "This partnership provides OFI SteelPath with another investment vehicle to better serve our clients’ needs. However, as our firm continues to grow and evolve, we recognize that certain investors have a preference for the ETN structure in this asset class."
Ian Merrill, head of ETNs for Americas, at Barclays, added: "The MLP asset class continues to offer investors the potential for income producing investment opportunities, and these ETNs provides investors strategy-based exposure to midstream MLPs in an exchange-traded format."
