CA - MEGI: Discounted Infrastructure Exposure With Activist Potential

2025-06-01 12:20:00 ET

Summary

• MEGI offers diversified, thematic infrastructure exposure focused on decarbonization, digital transformation, and asset modernization, with a high distribution rate.
• The fund's discount to NAV has narrowed but remains attractive enough to consider, and activist investor Saba Capital has increased its stake, raising the possibility of future corporate actions.
• Distribution yield is boosted by the fund's discount, but sustainability requires ongoing capital gains; NAV performance has been strong, supporting the previous distribution increase.
• MEGI stands out among infrastructure CEFs for its unique portfolio focus and activist interest, making it an appealing option despite a less pronounced discount than before.

Written by Nick Ackerman, co-produced by Stanford Chemist

NYLI CBRE Global Infrastructure Megatrends Term Fund ( MEGI ) is a leveraged closed-end fund providing investors exposure to a diversified portfolio of infrastructure investments. Infrastructure can be a relatively boring area to invest in, but that is part of its appeal as it is generally quite stable, providing regular cash flows based on the necessity to function as a society....

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