MEGI Fund Offers High Yield Amid Global Infrastructure Trends

The NYLI CBRE Global Infrastructure Megatrends Term Fund, known as MEGI, has emerged as a strong investment opportunity, currently offering a yield exceeding 10% while trading at a -7% discount to its net asset value (NAV). Investors are increasingly attracted to MEGI due to its alignment with global infrastructure trends, growth in artificial intelligence (AI)-driven data centers, and anticipated interest rate cuts, all of which could enhance both income generation and capital appreciation.

MEGI’s appeal lies in its robust monthly distribution, which is well-covered and does not include a return of capital. The fund has demonstrated strong total returns, and there has been ongoing buying activity from both insiders and activist investors. These factors contribute to a positive outlook for shareholders looking for reliable passive income.

Investment Risks and Diversification

While MEGI presents numerous advantages, it is not without risks. The fund has a limited operating history, employs leverage, and has exposure to foreign markets, which introduces industry-specific uncertainties. Nevertheless, MEGI’s diversified holdings and structured investment approach provide significant upside potential, making it an intriguing option for investors.

As a retired income investor, I actively seek quality stocks and funds that can deliver passive income simply by holding shares. It is essential to recognize that different asset classes perform variably over time based on shifting market conditions. Therefore, a strategic approach to investing is vital for long-term financial success.

Analyst’s Disclosure

I hold a beneficial long position in the shares of MEGI and DNP, either through stock ownership, options, or other derivatives. I authored this article independently, expressing my personal opinions without receiving compensation, aside from contributions from Seeking Alpha. It is important to note that past performance does not guarantee future results, and no specific investment recommendations are made. The views expressed may not represent those of Seeking Alpha as a whole, which does not engage in securities trading or investment advice.

Investors should conduct their own research and consider their financial situations before making investment decisions.