MainStay CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) Declares Monthly Distribution for January 2024 and Availability of 19(a) Notice
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Insights
The announcement of MainStay CBRE Global Infrastructure Megatrends Term Fund's (MEGI) monthly distributions is a critical piece of information for investors, as it directly relates to the income generated from their investment. The current annualized distribution rate of 11.06% based upon the recent closing price and 9.75% based on the closing NAV, are significant figures. These rates are particularly noteworthy in the context of the broader market, where fixed-income yields have been historically low. Investors may compare these rates to current bond yields or dividend yields from other equities to assess the attractiveness of MEGI's income-generating potential.
The distinction between the distribution rate based on closing price and NAV is important, as it implies a difference in yield calculations depending on the price at which the shares were purchased. A higher rate based on the closing price could suggest that the market price of the fund is trading at a discount to its NAV, which could be an indicator of market sentiment or perceived risks associated with the fund's underlying assets.
From a taxation perspective, the notice that the sources of distributions are estimates and not for tax reporting purposes is crucial. Investors should be aware that these monthly distributions can consist of dividends, capital gains, or return of capital, each with different tax implications. The mention of a Form 1099-DIV indicates that the fund will provide investors with the necessary documentation to accurately report income for tax purposes. However, the uncertainty of the exact composition of distributions until the end of the fiscal year means that investors need to be prepared for potential tax adjustments. This uncertainty can affect tax planning, especially for those in higher tax brackets or those with significant investments in the fund.
Understanding the infrastructure sector is essential when evaluating MEGI's distribution announcements. This sector is often seen as a stable investment with the potential for long-term growth, driven by global trends such as urbanization, technological advancements and the need for sustainable development. The fund's focus on global infrastructure megatrends suggests an investment strategy that is aligned with these large-scale shifts. However, the performance of such funds can be influenced by regulatory changes, economic cycles and geopolitical events. Investors should consider how these factors could impact the fund's asset value and its ability to maintain or grow distributions over time.
Dividend Distribution Schedule:
Ex-Dividend Date | Record Date | Payable Date | |
January | 1-25-2024 | 1-26-2024 | 1-31-2024 |
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 1/31/2024 | ||||
Source | Current | Percent of | Fiscal YTD Cumulative | Fiscal YTD Percent of |
Net Investment | 100 % | 78 % | ||
Net Realized Short- | 0 % | 4 % | ||
Net Realized Long- |
| 11 % | 18 % | |
Return of Capital or | $- | - % | $- | - % |
Total per Share | 100 % | 100 % | ||
Fund Performance and Distribution Rate Information as of 12/31/2023 | ||||
Average annual total return1 (in relation to the net asset value (NAV)): | -4.21 % | |||
Annualized current distribution rate expressed as a percentage of month end NAV as of | ||||
Cumulative total return3 (in relation to NAV (not annualized)) for the fiscal period ending | 2.11 % | |||
Cumulative fiscal year distribution rate as a percentage of NAV as of 12/31/2023: | ||||
- Represents the annualized total return in relation to the change in NAV from inception (10/27/2021) through 12/31/2023.
- Represents the current monthly distribution rate annualized as a percentage of NAV as of 12/31/2023.
- Represents the cumulative total return in relation to the change in NAV for the current fiscal period 6/1/2023 through 12/31/2023.
- Represents the cumulative distribution rate for the current fiscal period 6/1/2023 through 12/31/2023, which is determined by dividing the
dollar value of distributions in the period by the NAV as of 12/31/2023.
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
*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
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 2022 revenue). CBRE has approximately 115,000 employees (excluding 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,
Media Contacts:
New York Life Investments:
Sara Guenoun
Sara_J_Guenoun@newyorklife.com
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FAQ
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