The NYLI CBRE Global Infrastructure Megatrends Term Fund is a closed-end fund (CEF) focused on infrastructure investments aligned with major global trends such as renewable energy, digital connectivity, and water sustainability. Managed by CBRE Investment Management, the fund seeks to capitalize on long-term megatrends driving demand for infrastructure assets globally.
CBRE Investment Management Expertise
CBRE Investment Management, the entity managing the NYLI CBRE Global Infrastructure Megatrends Term Fund (MEGI), is a globally recognized leader in real estate and infrastructure investments. It is a division of CBRE Group, a Fortune 500 company and the largest commercial real estate services and investment firm globally. The group’s vast resources and expertise have positioned it as a trusted name in institutional and retail investment management.
CBRE Group Overview
CBRE Group operates in over 100 countries, managing billions in real estate and infrastructure assets. Its deep market insights, extensive global network, and ability to leverage real-time data provide a strong foundation for informed investment decisions. The firm specializes in identifying trends, sourcing high-quality assets, and implementing strategies to maximize long-term returns.
Expertise in Infrastructure Investing
CBRE Investment Management focuses on infrastructure assets that provide essential services, including energy, transportation, water, and digital communication. This expertise is crucial in addressing the growing demand for sustainable and resilient infrastructure globally.
Key strengths include:
- Track Record: Decades of experience managing infrastructure and real assets with a focus on delivering stable, risk-adjusted returns.
- Sustainability Focus: Prioritizing investments in renewable energy, water sustainability, and digital connectivity, aligning portfolios with global megatrends and ESG principles.
- Global Reach: Access to investment opportunities across developed and emerging markets, ensuring portfolio diversification and exposure to high-growth regions.
- Active Management: A hands-on approach to optimizing asset performance through operational improvements, capital investment, and strategic partnerships.
Experience in Real Estate Investing
CBRE’s expertise in real estate complements its infrastructure capabilities. The firm manages real estate investments across sectors, including commercial, residential, industrial, and mixed-use developments. This holistic approach enables CBRE Investment Management to identify synergies between real estate and infrastructure investments, enhancing portfolio performance.
Notable accomplishments:
- Leadership in institutional real estate funds, with billions of dollars under management globally.
- Development of proprietary data analytics tools to assess market trends, risks, and opportunities effectively.
- A robust network of local experts worldwide, ensuring insights into regional markets and asset-specific nuances.
Application to MEGI
CBRE Investment Management’s infrastructure expertise underpins the NYLI CBRE Global Infrastructure Megatrends Term Fund’s strategy. The firm’s ability to identify and capitalize on transformative trends such as renewable energy, 5G networks, and sustainable transportation ensures MEGI’s portfolio is positioned to benefit from long-term global demand. Additionally, CBRE’s proven capabilities in operational efficiency strengthen the fund’s prospects for delivering consistent income and capital appreciation.
Investment Strategy
The fund invests primarily in equity and debt securities of companies involved in infrastructure-related industries, including utilities, transportation, communications, and energy. The portfolio is globally diversified, providing exposure to developed and emerging markets. MEGI also utilizes leverage to enhance returns, typical for infrastructure-focused CEFs.
Top 10 Holdings Description
- NextEra Energy (NEE)
A leading renewable energy company based in the U.S., focusing on solar and wind energy development. NextEra benefits from its dominant position in clean energy and its regulated utility operations in Florida. - American Tower Corporation (AMT)
A global leader in wireless communication infrastructure, American Tower owns and operates cell towers and is pivotal in the rollout of 5G networks worldwide. - Enbridge Inc. (ENB)
A major North American energy infrastructure company that operates extensive oil and natural gas pipeline networks, ensuring critical energy transportation services. - Iberdrola SA
A Spanish multinational electric utility company, Iberdrola is a significant player in renewable energy generation, especially wind and hydroelectric power. - Union Pacific Corporation (UNP)
One of the largest freight railroad networks in the United States, Union Pacific provides essential transportation services and benefits from strong economic activity. - Vinci SA
A French concessions and construction company with substantial interests in toll roads, airports, and other critical infrastructure globally. - Brookfield Infrastructure Partners (BIP)
This partnership manages and invests in essential infrastructure assets across utilities, transport, energy, and communications sectors. - Crown Castle International (CCI)
Focused on U.S. wireless infrastructure, Crown Castle owns and leases cell towers, fiber networks, and small cell networks critical to modern digital connectivity. - Transurban Group
An Australian company specializing in toll road operations, Transurban is integral to urban infrastructure in Australia and North America. - E.ON SE
A German utility company with a strong focus on renewable energy solutions, energy efficiency, and smart grids, supporting Europe’s transition to sustainable energy.
Yield and Discount to Net Asset Value (NAV)
As of the latest data, MEGI offers a current yield of approximately 12%, making it attractive to income-focused investors. The distribution is supported by a combination of dividends from underlying holdings and managed distributions, typical in CEFs leveraging infrastructure assets.
The fund is trading at a discount to NAV of approximately 14.8%, reflecting investor sentiment and market conditions. Such a discount provides an appealing entry point for investors seeking long-term exposure to infrastructure megatrends at a reduced cost.
Conclusion
NYLI CBRE Global Infrastructure Megatrends Term Fund is positioned to benefit from transformative global trends in infrastructure. Its diversified portfolio, combined with a high yield and discounted valuation, makes it an attractive option for investors seeking long-term growth and income. The top holdings represent a mix of leaders in renewable energy, digital infrastructure, and essential transportation, highlighting the fund’s alignment with critical sectors poised for sustained demand.