Barclays Plc (BARC) is offering exchange- traded notes tied to an index of master-limited partnerships and limited liability companies that specialize in energy transportation and storage.
The Barclays ETN+ Select MLP security, which started trading yesterday under the ticker ATMP, is linked to the price of the Atlantic Trust Select MLP Index, according to a filing with the U.S. Securities and Exchange Commission. The bank charges 0.95 percent a year in fees, according to a prospectus available on its website.
The benchmark is “more of a pure play on energy infrastructure,” as opposed to other MLP indexes that include refineries, producers, or exploration companies, said Adam Karpf, portfolio manager for Atlantic Trust Group Inc. It started on Feb. 20, according to the SEC filing.
The note is Barclays’s second tied to MLP assets this year, after the iPath S&P MLP ETN, which started trading on Jan. 4. MLPs are companies that pay no corporate income tax and distribute cash to owners of limited partnership units.
Mark Lane, a spokesman for Barclays, declined to comment.
The JPMorgan Alerian MLP Index ETN (AMJ) is the largest U.S. exchange-traded note by assets, with $5.52 billion under management, according to data compiled by Bloomberg. Last year, the bank capped issuance of shares of the security.
UBS AG started selling its own ETN tied to the Alerian MLP Index in July.
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