NYLI CBRE Global Infras Megatrends Term Stock Price, News & Analysis

NYLI CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) is a non-diversified, closed-end management investment company in the asset management segment of the financial services sector. The fund’s stated investment objective is to seek a high level of total return with an emphasis on current income. According to available information, it focuses on investment megatrends that influence infrastructure assets, including decarbonization, digital transformation and asset modernization. The fund’s common shares trade on the New York Stock Exchange under the symbol MEGI.

The fund invests primarily in income-producing equity securities issued by infrastructure companies. These holdings are described as infrastructure-related and are selected in the context of long-term themes that affect demand for infrastructure assets and their income and growth potential. As a closed-end fund, MEGI issues a fixed number of shares that trade on an exchange, and its market price can differ from its net asset value (NAV). The fund’s materials emphasize that holdings are subject to change and that past performance is not a guarantee of future results.

MEGI’s investment approach is tied to the megatrends of decarbonization, digital transformation and asset modernization, which it identifies as reshaping infrastructure demand and influencing income and growth opportunities for infrastructure-related securities. The fund seeks to provide shareholders with exposure to these themes through a portfolio of income-producing equity securities associated with infrastructure companies.

Fund structure and distribution approach

The fund is described as a closed-end fund traded on the New York Stock Exchange. Its common shares are subject to market risk, and investors are cautioned that they could lose money and that there are risks inherent in all investments. The fund’s Board of Trustees sets a monthly distribution, and the Board reviews the distribution on a quarterly basis in view of factors such as net investment income, realized and unrealized gains, and other net unrealized appreciation or income expected during the remainder of the year.

According to the fund’s disclosures, it strives to establish a level monthly distribution that, over the course of a year, will serve to distribute an amount that closely approximates its net investment income and net realized capital gains during that year. The fund regularly issues Section 19(a) notices that set forth the estimated sources of income of current distributions and cumulative distributions for the fiscal year to date. These notices break out amounts from net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital sources on a per-share basis and as a percentage of the distribution amount.

The fund repeatedly notes that the amounts and sources of distributions are only estimates and are not provided for tax reporting purposes. Actual amounts and sources for tax reporting depend on the fund’s investment experience during the remainder of its fiscal year and may change based on tax regulations. Shareholders receive a Form 1099-DIV for the calendar year that explains how to report distributions for federal income tax purposes.

Return of capital and tax considerations

In several notices, the fund states that it has at times distributed more than its income and net realized capital gains, so a portion of distributions may be classified as a return of capital. The fund explains that a return of capital may occur when some or all of the money originally invested in the fund is paid back to shareholders. It emphasizes that a return of capital distribution does not necessarily reflect investment performance and should not be confused with yield or income.

The fund also explains that any distributions in excess of current and accumulated earnings and profits will be treated first as a tax-deferred return of capital, which reduces a shareholder’s adjusted tax basis in the fund shares. After the adjusted basis is reduced to zero, such amounts generally constitute capital gains. The fund notes that a return of capital distribution may lower a shareholder’s basis in the fund, potentially creating a future tax consequence when shares are sold, even if the sale is at a loss relative to the shareholder’s initial investment.

Performance and NAV-related information

The fund periodically discloses average annual total return in relation to NAV from inception, cumulative total return for specified fiscal periods, and various distribution rate measures expressed as percentages of month-end NAV. These data are presented for specific dates and fiscal periods and are accompanied by explanations of how each measure is calculated, such as dividing the dollar value of distributions in a period by NAV as of a particular date. The fund’s communications highlight that future earnings cannot be guaranteed and that the distribution policy is subject to change.

Fund materials state that daily New York Stock Exchange closing prices and net asset values per share, as well as other information, are made available through the fund’s information channels. However, investors are reminded that there is no assurance the fund will continue to pay regular monthly distributions or that it will do so at any particular rate, and that past performance is no guarantee of future results.

Sponsorship and affiliated managers

The fund is associated with New York Life Investments and CBRE Investment Management Listed Real Assets LLC. New York Life Investments is described as being comprised of affiliated global asset management businesses of New York Life Insurance Company and as a Pensions & Investments Top 30 Largest Money Manager based on institutional assets under management for specified historical dates. CBRE Investment Management Listed Real Assets LLC is described as the listed real assets arm of CBRE Investment Management, which is characterized as a global real assets investment management firm with assets under management across real assets categories, geographies, risk profiles and execution formats.

CBRE Investment Management is identified as an independently operated affiliate of CBRE Group, Inc., which is described as the world’s largest commercial real estate services and investment firm based on a specific historical revenue reference. The fund’s communications note that CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. New York Life Investment Management LLC is said to engage the services of SEC-registered advisors, and CBRE Investment Management Listed Real Assets is stated to be unaffiliated with New York Life Investment Management LLC.

Risk disclosures and investor guidance

Across its notices, the fund repeatedly emphasizes that investments involve risk and that investors could lose money. It cautions shareholders not to draw conclusions about investment performance from the amount of any distribution or from the terms of the distribution policy. The fund also notes that its communications are not offers to sell securities or solicitations of offers to buy securities, and that no sales will occur in jurisdictions where offers or sales are not permitted.

For tax and regulatory purposes, the fund underscores that information in Section 19(a) notices is preliminary and may change. The definitive tax characterization of distributions is provided in the Form 1099-DIV sent to shareholders for each calendar year. The fund’s disclosures encourage investors to understand the potential impact of return of capital distributions on tax basis and future tax consequences when fund shares are sold.

Key themes and positioning

In summary, NYLI CBRE Global Infrastructure Megatrends Term Fund (MEGI) is presented as a closed-end NYSE-listed fund that focuses on income-producing equity securities of infrastructure companies and aligns its strategy with infrastructure-related megatrends such as decarbonization, digital transformation and asset modernization. Its communications highlight a structured monthly distribution policy, detailed reporting of estimated distribution sources, and extensive risk and tax disclosures. The fund’s association with New York Life Investments and CBRE Investment Management Listed Real Assets LLC provides context for its asset management and infrastructure focus as described in available materials.