Stock Analysis & Valuation NYLI CBRE Global Infrastructure Megatrends Term Fund (MEGI)

• Previous Close: $14.29
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	553.66	3774
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

MainStay CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) is a non-diversified, closed-end management investment firm focused on global infrastructure megatrends. Launched in March 2021 and headquartered in New York, MEGI invests in infrastructure assets that benefit from long-term structural trends such as urbanization, digital transformation, and energy transition. The fund targets essential infrastructure sectors including transportation, utilities, renewable energy, and digital infrastructure, offering investors exposure to stable, inflation-protected cash flows. Managed by CBRE Investment Management, MEGI leverages deep sector expertise to capitalize on the growing demand for sustainable and resilient infrastructure globally. With a market cap of approximately $716 million, MEGI provides a unique investment vehicle for those seeking diversified infrastructure exposure with a focus on long-term capital appreciation and income generation.

Investment Summary

MEGI presents an attractive investment opportunity for those seeking exposure to global infrastructure megatrends, benefiting from stable cash flows and inflation hedging. The fund's focus on essential infrastructure sectors provides resilience against economic downturns, while its closed-end structure allows for strategic long-term investments. However, risks include interest rate sensitivity due to its leveraged position ($265.3M in debt) and potential volatility in infrastructure valuations. The fund's dividend yield of $1.50 per share adds income appeal, but investors should monitor its ability to sustain payouts amid fluctuating cash flows. Given its beta of 1.006, MEGI closely tracks market movements, making it suitable for investors with a moderate risk appetite.

Competitive Analysis

MEGI differentiates itself through its specialized focus on global infrastructure megatrends, managed by CBRE Investment Management, which brings deep sector expertise. Its closed-end structure allows for concentrated, long-term investments in high-growth infrastructure sectors, unlike open-end funds that face liquidity constraints. The fund's emphasis on sustainability and digital infrastructure aligns with global investment trends, enhancing its appeal. However, competition is intense in the infrastructure investment space, with larger players offering broader diversification. MEGI's relatively small size ($716M market cap) may limit its ability to compete with mega-funds, but its niche focus provides a unique value proposition. The fund's leverage (debt-to-equity ratio) could amplify returns but also increases risk in rising rate environments. Its performance will hinge on CBRE's ability to identify undervalued infrastructure assets and capitalize on megatrends ahead of competitors.

Major Competitors

• Brookfield Infrastructure Corporation (BIPC): BIPC is a leader in global infrastructure investing with a diversified portfolio across utilities, transport, and data infrastructure. Its scale ($5B+ market cap) and Brookfield's operational expertise give it an edge in acquiring large assets. However, its broader focus may lack MEGI's targeted megatrend approach.
• Cohen & Steers Infrastructure Fund (UTF): UTF is a well-established infrastructure fund with a global mandate similar to MEGI. Its longer track record and higher AUM ($3B+) provide stability, but its higher expense ratio and less focus on emerging megatrends could make MEGI more attractive for targeted exposure.
• iShares U.S. Infrastructure ETF (IFRA): IFRA offers passive exposure to U.S. infrastructure equities at a lower cost than MEGI. While it lacks MEGI's global scope and active management, its ETF structure provides better liquidity for short-term investors.