NYLI CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) Declares Availability of Section 19(a) Notice for April 2025

Rhea-AI Summary

NYLI CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) has announced its Section 19(a) notice for April 2025. The Fund currently offers an annualized distribution rate of 12.59% based on the closing price of $11.91 and 11.23% based on NAV of $13.36 as of April 7, 2025.

The Fund's performance metrics as of March 31, 2025 show an average annual total return of -0.70% since inception (10/27/2021), with a cumulative total return of 6.54% for the fiscal period. The current monthly distribution includes 100% return of capital ($0.1250 per share), while the fiscal YTD distributions comprise 44% from net investment income, 14% from short-term capital gains, 6% from long-term capital gains, and 36% from return of capital.

Positive

• High current distribution rate of 12.59% based on market price
• Positive cumulative total return of 6.54% for current fiscal period
• 64% of fiscal YTD distributions come from actual earnings (investment income and capital gains)

Negative

• Average annual total return since inception is negative at -0.70%
• Current monthly distribution consists entirely of return of capital (100%), which may reduce shareholders' cost basis
• 36% of fiscal YTD distributions come from return of capital, potentially indicating insufficient earnings to cover distributions

Insights

Financial Analyst

This Section 19(a) notice reveals concerning fundamentals for the NYLI CBRE Global Infrastructure Megatrends Term Fund. The 100% return of capital composition of April's distribution is a significant red flag, indicating the fund is simply returning investors' own money rather than distributing actual earnings.

The fund's performance metrics tell a troubling story: a negative 0.70% average annual total return since inception (October 2021), demonstrating that despite paying high distributions, the fund has actually lost value over its lifetime. The 12.59% distribution rate based on market price appears attractive superficially but is mathematically unsustainable given the negative returns.

While fiscal year-to-date figures show some distribution components from investment income (44%) and capital gains (20% combined), the current month's complete reliance on return of capital suggests deteriorating fundamentals. The fund explicitly acknowledges distributing more than its earnings and capital gains.

The $13.36 NAV versus $11.91 market price indicates the fund trades at an 11% discount, reflecting investor skepticism about its sustainability. Most concerning for long-term investors: return of capital distributions erode your investment base by lowering cost basis while potentially creating deferred tax liabilities when shares are eventually sold.

This distribution pattern represents a classic yield trap - high distributions masking poor total returns and gradually depleting investor capital rather than reflecting genuine income generation capability.

NEW YORK--(BUSINESS WIRE)-- NYLI CBRE Global Infrastructure Megatrends Term Fund (the "Fund") (NYSE: MEGI) today announced the availability of the Section 19(a) notice for April 2025. The Fund’s current annualized distribution rate is 12.59% based upon the closing price of $11.91 on April 7, 2025, and 11.23% based upon the Fund’s closing NAV of $13.36 as of the same date. The distribution schedule for the fund can be found here.

Data as of 4/30/2025
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%	$0.6015	44%
Net Realized Short-Term Capital Gains	$0.0000	0%	$0.1972	14%
Net Realized Long-Term Capital Gains	$0.0000	0%	$0.0763	6%
Return of Capital or Other Capital Sources	$0.1250	100%	$0.5000	36%
Total per Share	$0.1250	100%	$1.3750	100%

Fund Performance and Distribution Rate Information as of 3/31/2025
Average annual total return1 (in relation to the net asset value (NAV))	−0.70%
Annualized current distribution rate expressed as a percentage of month end NAV as of 3/31/2025	10.24%2
Cumulative total return3 (in relation to NAV (not annualized)) for the fiscal period ending 3/31/2025	6.54%
Cumulative fiscal year distribution rate as a percentage of NAV as of 3/31/2025	8.53%4

1. Represents the annualized total return in relation to the change in NAV from inception (10/27/2021) through 3/31/2025.
2. Represents the current monthly distribution rate annualized as a percentage of NAV as of 3/31/2025.
3. Represents the cumulative total return in relation to the change in NAV for the current fiscal period 6/1/2024 through 3/31/2025.
4. Represents the cumulative distribution rate for the current fiscal period 6/1/2024 through 3/31/2025, which is determined by dividing the dollar value of distributions in the period by the NAV as of 3/31/2025.

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 above 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.

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.

The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.’’

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 $739 billion in assets under management as of December 31, 2024, New York Life Investments, a Pensions & Investments’ Top 30 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.

*New York Life Investment Management ranked 26^th largest institutional investment manager in Pensions & Investments' Largest Money Managers 2024 published June 2024, based on worldwide institutional AUM as of 12/31/23. No direct or indirect compensation was paid for the creation and distribution of this ranking.

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 $146.2 billion in assets under management* as of December 31, 2024, operating in 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 2024 revenue). The company has more than 140,000 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. "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. Securities distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, Member FINRA/SIPC.

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New York Life Investments:

Sara Guenoun

Sara_J_Guenoun@newyorklife.com

Source: New York Life Investments

FAQ

What is MEGI's current distribution rate and NAV as of April 2025?

MEGI's annualized distribution rate is 12.59% (based on $11.91 closing price) and 11.23% (based on $13.36 NAV) as of April 7, 2025.

How has MEGI's fund performed since its inception?

MEGI has shown an average annual total return of -0.70% since its inception (10/27/2021) through March 31, 2025.

What is the composition of MEGI's current monthly distribution?

The current monthly distribution of $0.1250 per share consists of 100% return of capital.

How are MEGI's fiscal YTD distributions broken down by source?

MEGI's fiscal YTD distributions comprise 44% net investment income, 14% short-term capital gains, 6% long-term capital gains, and 36% return of capital.