Free Writing Prospectus - iPath DJP Info Sheet
Free Writing Prospectus
Filed Pursuant to Rule 433
Registration No. 333-145845
February 6, 2008
iPath Exchange Traded Notes
iPATH ® DOW JONES–AIG COMMODITY INDEX TOTAL
RETURNSM ETN
iPath Exchange Traded Notes (ETNs) are unsecured debt securities issued by
Barclays Bank PLC that are linked to the total return of a market index. Investors can trade on an exchange at market price or receive a cash payment at the scheduled maturity or early redemption,1 based on the performance of the index
less investor fees. The iPath® Dow Jones–AIG Commodity Index Total ReturnSM ETN is designed to provide investors with a cost-effective investment in broad-based commodities
as measured by the Dow Jones–AIG Commodity Index Total ReturnSM (the “Index”).
NOTE DETAILS
|
|
|
|
Ticker |
|
DJP |
|
Intraday indicative value ticker |
|
DJP.IV |
|
Bloomberg index ticker |
|
DJAIGTR |
|
CUSIP |
|
06738C778 |
|
Primary exchange |
|
NYSE Arca |
|
Yearly fee |
|
0.75 |
% * |
Inception date |
|
06/06/06 |
|
Maturity date |
|
06/12/36 |
|
Index |
|
Dow Jones–AIG Commodity Index Total ReturnSM |
|
* |
The investor fee is equal to the Yearly Fee times the principal amount of your securities times the index factor, calculated on a daily basis in the following manner: The investor
fee on the inception date will equal zero. On each subsequent calendar day until maturity or early redemption, the investor fee will increase by an amount equal to the Yearly Fee times the principal amount of your securities times the index factor
on that day (or, if such day is not a trading day, the index factor on the immediately preceding trading day) divided by 365. The index factor on any given day will be equal to the closing value of the index on that day divided by the initial index
level. The initial index level is the value of the index on the inception date. |
INDEX COMMODITY GROUPS
Source: Dow Jones and AIG Financial Products Corp., as of 12/31/07. Subject to change. For current commodity group
weightings, please go to www.iPathETN.com.
ISSUER DETAILS
|
|
|
Barclays Bank PLC long-term unsecured obligations† |
S&P Rating |
|
AA |
Moody’s Rating |
|
Aa1 |
† |
The iPath ETNs are not rated, but rely on the ratings of their issuer, Barclays Bank PLC. Credit ratings are subject to revision or withdrawal at any time by the assigning rating
organization, which may have an adverse effect on the market price or marketability of the iPath ETNs. |
INDEX CORRELATIONS
|
|
|
Dow Jones–AIG Commodity Index Total ReturnSM |
|
1.00 |
S&P GSCI™ Total Return Index |
|
0.88 |
S&P GSCI™ Crude Oil Total Return Index |
|
0.72 |
S&P 500® Index |
|
0.10 |
Lehman U.S. Aggregate Index |
|
0.01 |
MSCI EAFE Index |
|
0.24 |
Sources: Dow Jones and AIG Financial Products Corp., S&P, Lehman Brothers, MSCI, Bloomberg
(12/92–12/07) based on monthly returns.
INDEX TOTAL RETURNS & STANDARD DEVIATION
(as of 12/31/07)
|
|
|
|
|
|
|
|
|
|
|
1-YEAR RETURN % |
|
3-YEAR RETURN % ANNUALIZED |
|
5-YEAR RETURN % ANNUALIZED |
|
STANDARD DEVIATION % ANNUALIZED† |
Dow Jones–AIG Commodity Index Total ReturnSM |
|
16.23 |
|
12.92 |
|
14.26 |
|
13.93 |
S&P GSCI™ Total Return Index |
|
32.67 |
|
12.25 |
|
14.90 |
|
22.35 |
S&P GSCI™ Crude Oil Total Return Index |
|
47.45 |
|
14.07 |
|
22.33 |
|
29.16 |
S&P 500® Index |
|
5.49 |
|
8.62 |
|
12.83 |
|
8.61 |
Lehman U.S. Aggregate Index |
|
6.97 |
|
4.56 |
|
4.42 |
|
3.59 |
MSCI EAFE Index |
|
11.17 |
|
16.83 |
|
21.59 |
|
10.71 |
† |
Based on monthly returns, calculated for time period of 12/31/02–12/31/07. |
Sources: Dow Jones and AIG Financial Products Corp., S&P, Lehman Brothers, MSCI, Bloomberg.
Index returns are for illustrative purposes only and do not represent actual iPath ETN performance. Index performance returns do not reflect any
management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. For current index and iPath ETN performance, go to www.iPathETN.com.
An investment in iPath ETNs involves risks, including possible loss of principal. For a description of the main risks see “Risk
Factors” in the applicable prospectus.
1. |
Investors may redeem at least 50,000 units of the iPath® Dow
Jones–AIG Commodity Index Total ReturnSM ETN directly to the issuer, Barclays Bank PLC, subject to the procedures described in the relevant prospectus. |
iPATH®
DOW JONES–AIG COMMODITY INDEX TOTAL RETURNSM ETN
The Dow Jones–AIG
Commodity Index Total ReturnSM was introduced in July 1998 to provide a unique, diversified, economically rational and liquid benchmark for commodities as an asset class. The Index was created using the following four main principles as
goals: economic significance (as measured by liquidity data and dollar-weighted production data of a particular commodity), diversification, continuity and liquidity. The Index currently is composed of the prices of 19 exchange traded futures
contracts on physical commodities.
TOP TEN CONTRACTS INCLUDED IN THE DOW JONES–AIG
COMMODITY INDEX TOTAL RETURNSM FOR 2007*
|
|
|
|
|
|
|
|
|
|
COMMODITY |
|
TICKER |
|
2007 REFERENCE PRICE DOLLAR WEIGHTING |
|
|
TRADING FACILITY |
|
COMMODITY GROUP |
Oil–WTI crude oil |
|
CL |
|
12.72 |
% |
|
NYM |
|
Energy |
Natural gas |
|
NG |
|
12.55 |
% |
|
NYM |
|
Energy |
Soybeans |
|
S |
|
7.75 |
% |
|
CBT |
|
Agriculture |
Gold |
|
GC |
|
6.83 |
% |
|
CMX |
|
Precious metals |
High-grade primary aluminum |
|
IA |
|
6.80 |
% |
|
LME |
|
Industrial metals |
Copper |
|
HG |
|
6.19 |
% |
|
COMEX |
|
Industrial metals |
Cattle-live |
|
LC |
|
6.14 |
% |
|
CME |
|
Livestock |
Corn |
|
C |
|
5.63 |
% |
|
CBT |
|
Agriculture |
Wheat–Chicago |
|
W |
|
4.72 |
% |
|
CBT |
|
Agriculture |
Unleaded gas (RBOB) |
|
RB |
|
3.94 |
% |
|
NYM |
|
Energy |
* |
As of September 2007 rebalancing. Source: Dow Jones and AIG Financial Products Corp., NYM–NYMEX Division New York Mercantile Exchange, CBT–Chicago Board of Trade,
CME–Chicago Mercantile Exchange, LME–London Mercantile Exchange, CMX–COMEX Division–New York Mercantile Exchange. |
An investment in iPath ETNs involves risks,
including possible loss of principal. For a description of the main risks see “Risk Factors” in the applicable prospectus.
Barclays Bank
PLC has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus and other documents Barclays Bank PLC has filed with the SEC for
more complete information about the issuer and this offering. You may get these documents for free by visiting www.iPathETN.com or EDGAR on the SEC website at www.sec.gov. Alternatively, Barclays Bank PLC will arrange for Barclays Capital Inc. to
send you the prospectus if you request it by calling toll-free 1-877-76-iPATH, or you may request a copy from any other dealer participating in the offering.
Barclays Global Investors Services, a subsidiary of Barclays Global Investors, N.A. (“BGINA”), assists in the promotion of the Securities. Barclays Global Investors, N.A. and Barclays Capital Inc. (“BCI”) are affiliates
of Barclays Bank PLC.
iPath ETNs (the “Securities”) are unsecured obligations of Barclays Bank PLC and are not secured debt. The Securities
are riskier than ordinary unsecured debt securities and have no principal protection. Risks of investing in the Securities include limited portfolio diversification, trade price fluctuations, uncertain principal repayment, and illiquidity.
Investing in the Securities is not equivalent to direct investment in index or index components. The investor fee will reduce the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of
your investment at maturity or upon redemption of your Securities even if the value of the relevant index has increased. An investment in iPath ETNs may not be suitable for all investors.
The Securities may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of Securities you may redeem
directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemption or maturity of Securities. Sales in the secondary market may result in significant
losses.
The index components for iPath ETNs linked to commodities indexes are concentrated in the commodities sector. The market value of the
Securities may be influenced by many unpredictable factors, including, where applicable, highly volatile commodities prices, changes in supply and demand relationships; weather; agriculture; trade; pestilence; changes in interest rates; and monetary
and other governmental policies, action and inaction. Index components that track the performance of a single commodity, or index components concentrated in a single sector, are speculative and may typically exhibit higher volatility. The current or
“spot” prices
of the underlying
physical commodities may also affect, in a volatile and inconsistent manner, the prices of futures contracts in respect of the relevant commodity. These factors may affect the value of the index and the value of your Securities in varying ways.
iPath ETNs typically have lower investor fees than currently existing mutual funds that invest in similar markets and are available to retail investors.
Buying and selling iPath ETNs will result in brokerage commissions.
BGINA and its affiliates, and BCI and its affiliates do not provide tax advice and
nothing contained herein should be construed to be tax advice. Please be advised that any discussion of U.S. tax matters contained herein (including any attachments) (i) is not intended or written to be used, and cannot be used, by you for the
purpose of avoiding U.S. tax-related penalties; and (ii) was written to support the promotion or marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on your particular circumstances from an
independent tax advisor.
“Dow Jones®”, “AIG®”, “Dow Jones-AIG Commodity IndexSM”, “DJ-AIGCISM”, “Dow Jones-AIG Commodity Index
Total ReturnSM”, “Dow Jones-AIG Agriculture Total Return Sub-IndexSM”, “Dow Jones-AIG Copper Total Return Sub-IndexSM”, “Dow Jones-AIG Energy Total Return Sub-IndexSM”,
“Dow Jones-AIG Grains Total Return Sub-IndexSM”, “Dow Jones-AIG Industrial Metals Total Return Sub-IndexSM”, “Dow Jones-AIG Livestock Total Return Sub-IndexSM”, “Dow Jones-AIG
Natural Gas Total Return Sub-IndexSM” and “Dow Jones-AIG Nickel Total Return Sub-IndexSM” are registered trademarks or service-marks of Dow Jones & Company, Inc. (“Dow Jones”), and American
International Group, Inc. (“AIG”), as the case may be, and have been licensed for use for certain purposes by Barclays Bank PLC for the Securities. The Securities based on the Dow Jones–AIG Commodity Index Total ReturnSM
are not sponsored, endorsed, sold or promoted by Dow Jones, AIG Financial Products Corp. (“AIG-FP”), AIG, or any of their respective subsidiaries or affiliates and none of Dow Jones, AIG-FP, AIG, or any of their respective subsidiaries or
affiliates makes any representation regarding the advisability of investing in such Securities.
©2008 BGINA. All rights reserved. iPath, iPath ETNs
and the iPath logo are registered trademarks of Barclays Bank PLC. All other trademarks, servicemarks or registered trademarks are the property, and used with the permission, of their respective owners. 6158-iP-0108 511-35BR–1/08
Not FDIC Insured • No Bank Guarantee • May Lose Value
BCY-M-501-01008