id Your Financial Advisor Recommend Alerian Energy Infrastructure And MLP Capital Strength Portfolio Series 11 (CAMIKX)?
Soreide Law Group is evaluating possible investor claims against securities brokers and financial advisors who might have sold unsuitable and misrepresented investments including Guggenheim Defined Portfolios’ Alerian Energy Infrastructure and MLP Capital Strength Portfolio Series 11 (NASDAQ: CAMIKX).
Who Is Alerian?
Evidently, Alerian is a “leading provider” of energy infrastructure indexes that investors depend on when selecting investment vehicles. Apparently, the company licenses indexes to third parties like Guggenheim for investment funds including structured notes, ETNs and ETFs. Apparently, Alerian 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.
What Is CAMIKX?
Apparently, Guggenheim partnered with Alerian to offer CAMIKX (also known as the Trust) on July 8, 2020 as a way to replicate the securities comprising the Alerian Energy Infrastructure Capital Strength Select Index in proportion to their weightings in the Index. Evidently, the investment objective of CAMIKX (also known as the Trust) is to provide total return through capital appreciation and dividend income. Apparently, CAMIKX matures on October 8, 2021.
Evidently, as of July 7, 2020, the Trust was comprised of 27.62% large-cap, 49.54% mid-cap and 22.84% small-cap. The Trust is concentrated in the midstream infrastructure sector, which constitutes 75.65% of its portfolio. These companies include Enbridge Inc., Gibson Energy Inc., Hess Midstream LP, Inter Pipeline Limited, Keyera Corporation, Kinder Morgan Inc., ONEOK Inc. and Pembina Pipeline Corporation. Also, the Trust’s portfolio invests 13.62% in the refining sector, with investments in HollyFrontier Corporation, Marathon Petroleum Corporation and Phillips 66. Finally, the Portfolio concentrates 10.73% in the utilities sector, with investments in CenterPoint Energy Inc., OGE Energy Corporation and Sempra Energy.
As of July 24, 2020, CAMIKX is worth $10.11 per unit. It’s 52-week range is $9.72 to $10.30.
Advisors Possibly Sold Unsuitable, Misrepresented Investments
It is possible that financial advisors provided bad investment advice about CAMIKX. Particularly, risks of investing in CAMIKX include that the securities will be volatile especially since the Trust invests MLPs. Notably, MLPs are limited partnerships or limited liabilities companies whose interests trade on securities exchanges like stocks. Normally, MLPs concentrate in real estate, natural resources or energy.
Also, MLPs contain unique risks including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Not only that, but issuers in the Trust may reduce or cancel dividends or distributions which could result in a lower distribution rate by the Trust. Notably, Covid-19 has caused much volatility in the energy sector, with many energy companies filing for bankruptcy.
Critically, financial professionals are responsible for recommending only those investments which match their clients’ suitability profiles. It is possible that CAMIKX may not have been consistent with some investors’ objectives, risk tolerances and needs. Also, securities brokers and financial advisors may have misrepresented risks of CAMIKX.
Losses On CAMIKX Investments?
Did your financial advisor cause you losses by selling you Guggenheim Defined Portfolios Alerian Energy Infrastructure & MLP Capital Strength Portfolio Series 11 (NASDAQ: CAMIKX) 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 sales practice violations of securities brokers and financial advisors including suitability, misrepresentation and breach of fiduciary duty.