Financial Advisors Might Have Unreasonably Recommended, Sold Alerian Energy Infrastructure & MLP Capital Strength Portfolio Series 9 (NASDAQ: CAMIIX)

Soreide Law Group is investigating possible investor claims against securities brokers and financial advisors who possibly recommended or sold Guggenheim Defined Portfolios’ Alerian Energy Infrastructure & MLP Capital Strength Portfolio Series 9 (NASDAQ: CAMIIX), a poorly performing investment. Here’s more on CAMIIX and what you could do if your financial advisor sold you unsuitable or misrepresented investments.

Who Is Alerian?

Evidently, Alerian provides energy infrastructure indexes which investors depend on when selecting investment vehicles. Apparently, the company licenses indexes to third parties like Guggenheim for investment funds including structured notes, exchange-traded notes (ETNs) and exchange-traded funds (ETFs). According to Alerian, it uses a proprietary methodology for MLP investing which aims to deliver attractive risk-adjusted returns relative to traditional cap-weighted MLP indices and actively managed portfolios by identifying high quality energy infrastructure companies and MLPs with attractive capital structures, credit ratings and balance sheets.


Evidently, CAMIIX (also called the Trust) is an energy-sector unit investment trust which Guggenheim created on January 7, 2020 for purposes of replicating the securities comprising the Alerian Energy Infrastructure Capital Strength Select Index. Apparently, the Trust, which matures on April 8, 2021, seeks to provide total return through capital appreciation and dividend income.

As of July 24, 2020, the Trust was comprised of 21.39% large-cap, 43.44% mid-cap and 6.11% small-cap companies. The Trust invests in 46.04% US common stock, 32.38% Canadian common stock and 21.57% MLPs. Notably, 80% of the value of the Trusts assets invest in equity securities of MLPs as well as energy infrastructure companies who earn their cashflows from midstream activities or business activities and who are included in the Index. Also, 84.87% of CAMIIX is in the energy sector, with the remainder invested in utilities and industrials.

Apparently, as of July 24, 2020, CAMIIX sold for $6.23 per unit, with a 52-week range of $3.70 to $9.89.

CAMIIX Substantially Underperforms Since Inception

Unfortunately, CAMIXX has plummeted in value as of July 24, 2020, with a cumulative total return of -35.39% based on distributions reinvested with a transactional sales charge. Apparently, Alerian Midstream Energy Select Index has a cumulative total return since inception of -31.62%. Moreover, Alerian MLP has a cumulative total return since inception of -39.81%. For those investors who purchased CAMIIX at inception, they have seen substantial declines in the value of their assets.

Risks Of Investing In CAMIIX

Particularly, risks of investing in CAMIIX include that the securities will be volatile especially since the Trust invests in MLPs. Notably, MLPs – limited partnerships or limited liabilities companies whose interests are traded on securities exchanges like stocks – often concentrate in real estate, natural resources or energy. Because of this, MLPs contain risks including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Not only that, but issuers may reduce or cancel dividends or distributions which could result in a lower distribution rate by the Trust. In fact, a number of United States energy companies have suspended distributions or filed for bankruptcy because of Covid-19.

Advisors Possibly Sold Unsuitable, Misrepresented Investments

It is possible that financial advisors provided bad investment advice about CAMIIX. Namely, CAMIXX may not be consistent with investors’ objectives, risk tolerances and needs. Specifically, financial professionals are responsible for recommending only those investments matching their clients’ suitability profiles. Some investment professionals do not always do this but instead breach their fiduciary duties and act negligently. Also, securities brokers and financial advisors may have misrepresented risks of CAMIIX to induce sales.

Losses On CAMIIX Investments?

Lars Soreide AVVO 2020 Top Lawyer

Have you experienced losses because of purchasing Guggenheim Defined Portfolios Alerian Energy Infrastructure & MLP Capital Strength Portfolio Series 9 (NASDAQ: CAMIIX) from your broker or financial advisor? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of securities brokers and financial advisors.