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MainStay CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) Declares Monthly Distribution for April 2024 and Availability of 19(a) Notice

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MainStay CBRE Global Infrastructure Megatrends Term Fund (MEGI) announces monthly distributions for April 2024, with a distribution rate of 12.35% based on closing price. The Fund's Ex-Dividend Date is 4-19-2024, Record Date is 4-22-2024, and Payable Date is 4-30-2024.
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  • The Fund, MEGI, declared monthly distributions for April 2024 at $0.1250 per common share.
  • MEGI's current annualized distribution rate stands at 12.35% based on the closing price of $12.15 on April 10, 2024.
  • The Fund's distribution rate is 10.90% based on the closing NAV of $13.76 as of the same date.
  • Ex-Dividend Date for MEGI is 4-19-2024, Record Date is 4-22-2024, and Payable Date is 4-30-2024.
  • The reported distributions in the notice are estimates and not for tax reporting purposes. Actual amounts may vary based on the Fund's investment experience and tax regulations.
  • Investors will receive a Form 1099-DIV for the calendar year to report these distributions for federal income tax purposes.
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  • None.

The announcement by MainStay CBRE Global Infrastructure Megatrends Term Fund (MEGI) regarding its monthly distributions is a key piece of information for current and potential investors. The distribution rate of 12.35% based on the closing price and 10.90% based on the closing NAV, is considerably higher than the average dividend yield for equity investments, which typically hovers around 2-4%. This high yield could be indicative of the fund's strong cash flow generation abilities, possibly stemming from investments in infrastructure assets that often provide stable, long-term cash flows.

However, high yields can also signal potential risks. It is not uncommon for high distribution rates to be unsustainable or a sign that the market is pricing in some form of risk, such as underlying asset volatility or management's aggressive payout policies. Investors should analyze the fund's portfolio and performance to assess the sustainability of these distributions. The notice also indicates that the actual amounts and sources for tax purposes are estimates, suggesting that investors should be cautious about the reliability of the distribution's composition until finalized tax documents are provided.

From a taxation perspective, the notice provided by the Fund is a prelude to the tax implications that investors will face. The distinction between the distribution rate based on the closing price versus the NAV is important for investors to understand. The Fund's emphasis on the estimated nature of the distributions for tax reporting purposes implies that there could be adjustments to the character of the distributions, such as ordinary income, capital gains, or return of capital, which can affect an investor's tax liability.

Investors should be aware that infrastructure funds, like MEGI, may have different tax treatment compared to other types of investments due to the nature of their underlying assets. The form 1099-DIV, which will be sent out, is important for investors to accurately report income and understand their tax obligations. Tax efficiency is an important aspect of investment returns and the fund's ability to manage this can have a significant impact on after-tax returns for investors.

The infrastructure sector, which is the focus of the MainStay CBRE Global Infrastructure Megatrends Term Fund, is typically influenced by long-term trends such as urbanization, renewable energy expansion and government spending on public works. The fund's performance and distribution rates are likely reflective of these macroeconomic factors. The sector is known for its resilience during economic downturns due to the essential nature of infrastructure services, which can make it an attractive option for investors seeking stability.

Investors should examine the fund's strategy in capitalizing on infrastructure megatrends, as well as its asset allocation and management's expertise in this area. The ability of the fund to maintain its distribution rate amidst economic cycles will be a test of its investment thesis. Market trends such as interest rate changes, regulatory developments and technological advancements in the infrastructure space can all have significant implications for the fund's performance and, by extension, its distribution payouts.

NEW YORK, April 12, 2024 /PRNewswire/ -- MainStay CBRE Global Infrastructure Megatrends Term Fund (the "Fund") (NYSE: MEGI) today announced the Fund's monthly distributions for April 2024 of $0.1250 per common share. The Fund's current annualized distribution rate is 12.35% based upon the closing price of $12.15 on April 10, 2024, and 10.90% based upon the Fund's closing NAV of $13.76 as of the same date.

Dividend Distribution Schedule:


Ex-Dividend Date

Record Date

Payable Date

April

4-19-2024

4-22-2024

4-30-2024

The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Distribution Policy.

Future earnings of the Fund cannot be guaranteed, and the Fund's distribution policy is subject to change. For more information on the Fund, please visit the Fund's website here.

The Fund's monthly distribution is set by its Board of Trustees. The Board reviews the Fund's distribution on a quarterly basis in view of its net investment income, realized and unrealized gains, and other net unrealized appreciation or income expected during the remainder of the year. The Fund strives to establish a level monthly distribution that, over the course of the year, will serve to distribute an amount closely approximating the Fund's net investment income and net realized capital gains during the year.

The following table sets forth the estimated sources of income of the current distribution, and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. All amounts are expressed on a per share of common stock basis and as a percentage of the distribution amount.

Data as of 4/30/2024

Source

Current
Distribution per
Share

Percent of
Current
Distribution

Fiscal YTD

Cumulative
Distribution per Share

Fiscal YTD Percent of
Total Cumulative
Distributions

Net Investment Income

$0.0000

0 %

$0.8819

66 %

Net Realized Short-Term Capital Gains

$0.0000

0 %

$0.0350

2 %

Net Realized Long-Term Capital Gains

$0.0000

0 %

$0.1747

13 %

Return of Capital or Other Capital Sources

$0.1250

100 %

$0.2500

19 %

Total per Share

$0.1250

100 %

$1.3416

100 %

Fund Performance and Distribution Rate Information as of 3/31/2024


Average annual total return1 (in relation to the net asset value (NAV)):

-6.13 %

Annualized current distribution rate expressed as a percentage of month end NAV as of
3/31/2024:

10.53%2

Cumulative total return3 (in relation to NAV (not annualized)) for the fiscal period ending
3/31/2024:

-3.82 %

Cumulative fiscal year distribution rate as a percentage of NAV as of 3/31/2024:

8.54%4

 

  1. Represents the annualized total return in relation to the change in NAV from inception (10/27/2021) through 3/31/2024.
  2. Represents the current monthly distribution rate annualized as a percentage of NAV as of 3/31/2024.
  3. Represents the cumulative total return in relation to the change in NAV for the current fiscal period 6/1/2023 through 3/31/2024.
  4. Represents the cumulative distribution rate for the current fiscal period 6/1/2023 through 3/31/2024, which is determined by dividing the dollar value of distributions in the period by the NAV as of 3/31/2024.

There is no assurance the Fund will continue to pay regular monthly distributions or that it will do so at a particular rate.

You should not draw any conclusions about the Fund's investment performance from the amount of its distribution to shareholders.

Any distributions in excess of the Fund's current and accumulated earnings and profits will be treated first, as a tax-deferred return of capital, which is applied against and will reduce the adjusted tax basis of shares and, after such adjusted basis is reduced to zero, will generally constitute capital gains. A return of capital distribution may lower a shareholder's basis in the Fund, causing a potential future tax consequence in connection with the sale of Fund shares, even if such shares are sold at a loss to the shareholder's initial investments.

Any amounts and sources of distributions are only estimated and are not being provided for tax reporting purposes. The actual amounts and sources of income of the amounts for tax reporting purposes will depend on the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send a Form 1099-DIV for the calendar year that will advise how to report these distributions for federal income tax purposes.

The Fund is a closed-end fund, which is traded on the New York Stock Exchange and invests primarily in income-producing equity securities issued by infrastructure companies. Holdings are subject to change. Past performance is no guarantee of future results.

The Fund's daily New York Stock Exchange closing prices, net asset values per share, as well as other information are available by clicking here or by calling the Fund's shareholder servicing agent at (855) 456-9683.

Before considering an investment in the Fund, you should understand that you could lose money. There are risks inherent in all investments.

For more information about the Fund, including specific risks, please visit our website here.

About New York Life Investments
With over $716 billion in Assets Under Management* as of December 31, 2023, New York Life Investments, Pensions and Investments' 25th Largest Money Manager**, is comprised of the affiliated global asset management businesses of its parent company, New York Life Insurance Company, and offers clients access to specialized, independent investment teams through its family of affiliated boutiques. New York Life Investments remains committed to clients through a combination of the diverse perspectives of its boutiques and a long-lasting focus on sustainable relationships.

*Assets under management (AUM) includes assets of the investment advisers affiliated with New York Life Insurance Company, other than Kartesia Management. As of 12/31/2022 New York Life Investments changed its AUM calculation methodology, and AUM now includes certain assets, such as non-discretionary AUM, external fund selection, and overlay services, including ESG screening services, advisory consulting services, white labeling investment management services, and model portfolio delivery services, that do not qualify as Regulatory Assets Under Management, as defined in the SEC's Form ADV. AUM is reported in USD. AUM not denominated in USD is converted at the spot rate as of 3/31/2023. This total AUM figure is less than the sum of the AUM of each affiliated investment adviser in the group because it does not count AUM where the same assets can be counted by more than one affiliated investment adviser.

** On June 12, 2023, New York Life Investments was ranked #25 in Pensions & Investments' Largest Money Managers 2023 for the time period 12/31/21 – 12/31/22. (Managers are ranked by total worldwide institutional assets under management. Full list here.) No direct or indirect compensation was paid for the creation and distribution of this ranking. For more information about ranking click here - Largest Money Managers 2023 | Pensions & Investments (pionline.com)

"New York Life Investments" is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company.

About CBRE Investment Management
CBRE Investment Management Listed Real Assets LLC is the listed real assets arm of CBRE Investment Management, a leading global real assets investment management firm with $147.5 billion in assets under management* as of December 31, 2023, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE's data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management's presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.

This press release is not an offer to sell securities and is not a solicitation of an offer to buy securities, nor will there be any sales of securities in any jurisdiction where the offer or sale is not permitted.

New York Life Investment Management LLC engages the services of SEC-registered advisors. CBRE Investment Management Listed Real Assets (CBRE Investment Management) is unaffiliated with New York Life Investment Management LLC. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

Media Contacts:
New York Life Investments: 
Sara Guenoun
Sara_J_Guenoun@newyorklife.com

Cision View original content:https://www.prnewswire.com/news-releases/mainstay-cbre-global-infrastructure-megatrends-term-fund-nyse-megi-declares-monthly-distribution-for-april-2024-and-availability-of-19a-notice-302114963.html

SOURCE New York Life Investments

FAQ

What are the monthly distributions announced by MainStay CBRE Global Infrastructure Megatrends Term Fund for April 2024?

The Fund announced monthly distributions of $0.1250 per common share for April 2024.

What is the current annualized distribution rate for MEGI based on the closing price on April 10, 2024?

MEGI's annualized distribution rate is 12.35% based on the closing price of $12.15 on April 10, 2024.

When is the Ex-Dividend Date for MEGI?

MEGI's Ex-Dividend Date is 4-19-2024.

What is the Record Date for MainStay CBRE Global Infrastructure Megatrends Term Fund?

The Record Date for the Fund is 4-22-2024.

When is the Payable Date for MEGI's distributions in April 2024?

The Payable Date for MEGI's distributions in April 2024 is 4-30-2024.

What will investors receive for federal income tax reporting purposes?

Investors will receive a Form 1099-DIV for the calendar year to report distributions for federal income tax purposes.

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