If You Invested in NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD)

NYLI MacKay DefinedTerm Muni Opportunities Fund (NYSE: MMD) is a U.S.-based diversified closed-end management investment company. According to its stated investment objective, the fund seeks current income exempt from regular U.S. federal income taxes, as well as total return. To pursue this objective, it predominantly invests in municipal bonds where the interest is, in the opinion of bond counsel to the issuers, generally excludable from gross income for regular U.S. federal income tax purposes.

The fund is organized as a Delaware statutory trust and operates as a closed-end management investment company. Its shares trade on the New York Stock Exchange under the ticker symbol MMD, and shareholders buy and sell shares on the exchange rather than directly with the fund. As a closed-end fund, its shares can trade at a premium or discount to net asset value, and the fund’s disclosures note that shares of closed-end funds frequently trade at a discount from their net asset value, which may increase investor risk.

Investment objective and portfolio focus

The fund’s primary objective is to generate current income that is exempt from regular U.S. federal income taxes. In addition, it aims to provide total return. The fund predominantly invests in municipal bonds. The interest on these bonds is, in the opinion of bond counsel to the issuers, generally excludable from gross income for regular U.S. federal income tax purposes. The fund’s dividend disclosures state that its monthly dividend distributions are expected to be derived from undistributed net investment income and are not expected to contain any return of principal, unless otherwise noted in compliance notices.

In certain communications, the fund notes that, in compliance with Section 19 of the Investment Company Act of 1940, a notice would be provided for any distribution that does not consist solely of income. Such a notice would disclose estimated portions of the distribution, if any, consisting of net investment income, capital gains, and return of capital, with final tax character determined after year-end.

Structure, governance, and shareholder meetings

NYLI MacKay DefinedTerm Muni Opportunities Fund is overseen by a Board of Trustees. The fund’s proxy materials describe it as a closed-end management investment company organized as a Delaware statutory trust. The Board is divided into three classes of Trustees, with each class serving three-year terms, and one class standing for election each year. Shareholders vote on the election of Trustees and any other matters that properly come before the annual meeting.

The definitive proxy statement (DEF 14A) describes an Annual Meeting of Shareholders scheduled to be held on October 1, 2025, at the offices of New York Life Investment Management LLC in New York, New York. The purposes of that meeting include electing Class I Trustees for three-year terms or until their successors are duly elected and qualify, and transacting any other business that may properly come before the meeting. The proxy statement outlines voting procedures, the record date for determining shareholders entitled to vote, quorum requirements, and how proxies may be submitted or revoked.

Management and affiliated firms

The fund’s public communications associate it with New York Life Investments, MacKay Municipal Managers™, and MacKay Shields LLC. New York Life Investments is described as being comprised of the affiliated global asset management businesses of New York Life Insurance Company and as offering clients access to specialized, independent investment teams through a family of affiliated boutiques. New York Life Investments is identified as a Pensions & Investments Top 30 Largest Money Manager based on institutional assets under management over specified historical periods.

MacKay Municipal Managers™ is described in fund communications as a recognized leader in active municipal bond investing and as managing a suite of highly rated municipal bond solutions available in multiple investment products and vehicles. The team is characterized as a fundamental relative-value bond manager that combines a top-down approach with bottom-up credit research, with an investment philosophy centered on achieving strong long-term performance through a relative value, research-driven approach in a highly fragmented, inefficient municipal bond market.

MacKay Shields LLC, a New York Life Investments company, is described as a global asset management firm that manages fixed income strategies for high-net-worth individuals and institutional clients through separately managed accounts and collective investment vehicles, including private funds, collective investment trusts, UCITS, ETFs, closed-end funds, and mutual funds. MacKay Shields provides specialty fixed income expertise across global fixed income markets, including municipal bonds, high yield, investment grade, structured credit, convertible, and emerging markets debt. MacKay Shields is a wholly owned subsidiary of New York Life Investment Management Holdings LLC, which is wholly owned by New York Life Insurance Company.

Distributions and income characteristics

The fund regularly announces monthly dividend distributions per common share. In multiple announcements, the fund states that its dividend will be derived from its monthly undistributed net investment income and is not expected to contain any return of principal. These announcements also reiterate that there are risks inherent in any investment, including market risk, interest rate risk, credit risk, and the possible loss of principal, and that there can be no assurance the fund’s investment objectives will be achieved.

Disclosures also note that shares of closed-end funds frequently trade at a discount from their net asset value, which may increase investor risk. The fund indicates that its daily New York Stock Exchange closing prices, net asset values per share, and other information are available through its shareholder servicing channels.

Risk considerations

Fund communications repeatedly highlight that investing in the fund involves risks. These include market risk, interest rate risk, credit risk, and the possible loss of principal. The fund also notes that there can be no assurance that its investment objectives of current income exempt from regular U.S. federal income taxes and total return will be achieved.

Because the fund invests predominantly in municipal bonds, its performance and income characteristics are influenced by conditions in the municipal bond market and by the credit quality and other characteristics of the issuers of the bonds it holds. The fund’s materials emphasize that shares of closed-end funds may trade at a discount to net asset value, which can affect the market value of an investor’s holdings relative to the underlying portfolio value.

Shareholder information and reports

The proxy statement notes that copies of the fund’s most recent annual report and semi-annual report, including financial statements, are available upon request at no charge. Shareholders can obtain these documents by writing to the distributor or by calling a toll-free number identified in the proxy materials. These reports provide additional detail on the fund’s holdings, financial condition, and results over the reporting periods.

Shareholders receive proxy materials in connection with annual meetings, including information on proposals such as the election of Trustees. The proxy statement describes how shareholders can vote by mail, via specified electronic methods, or in person at the meeting, and explains how proxies may be revoked prior to being exercised.

Position within the financial sector

Within the broader finance and insurance sector, NYLI MacKay DefinedTerm Muni Opportunities Fund is categorized in the securities and commodity exchanges industry. As a closed-end management investment company listed on the New York Stock Exchange, it provides investors with exchange-traded exposure to a portfolio that predominantly consists of municipal bonds whose interest is generally excludable from gross income for regular U.S. federal income tax purposes, according to bond counsel opinions cited in the fund’s description.

The fund’s association with New York Life Investments, MacKay Municipal Managers™, and MacKay Shields LLC links it to asset managers that focus on fixed income and municipal bond strategies, as described in the fund’s public communications. These relationships are part of the fund’s context within the asset management and investment company landscape.