DEFA14A: MainStay CBRE Global Infrastructure Megatrends Term Fund Faces Proxy Contest from Saba Capital

MainStay CBRE Global Infrastructure Megatrends Term Fund urges shareholders to vote using the WHITE proxy card in support of its current trustee nominees amidst a proxy contest initiated by Saba Capital Master Fund Ltd.

Summary

• MainStay CBRE Global Infrastructure Megatrends Term Fund is holding its Annual Meeting of Shareholders on September 27, 2024.
• The fund's board is encouraging shareholders to vote FOR their current trustee nominees using the WHITE proxy card.
• Saba Capital Master Fund Ltd. has nominated a candidate for election as a trustee and may send its own proxy statement and gold proxy card.
• The fund's board believes that Saba regularly seeks actions that can have adverse consequences for long-term investors.
• Shareholders are advised to disregard any proxy cards other than the WHITE proxy card.
• Shareholders can contact EQ Fund Solutions at 1-800-848-3374 for any questions.

Sentiment

Score: 5

Explanation: The sentiment is neutral, focusing on procedural aspects of the upcoming vote and the board's recommendation. There's a slight negative undertone due to the proxy contest and the board's concerns about Saba Capital.

Positives

• The fund is actively communicating with shareholders regarding the upcoming annual meeting and proxy vote.
• Shareholders have access to a dedicated phone line (1-800-848-3374) for questions and assistance.

Negatives

• The proxy contest initiated by Saba Capital introduces uncertainty and potential disruption to the fund's strategy.
• The board expresses concerns about Saba's intentions and potential adverse consequences for long-term investors.

Risks

• Saba Capital's involvement could lead to changes in the fund's investment strategy or governance.
• The proxy contest may distract management from focusing on the fund's core operations.
• There is a risk that Saba's actions could negatively impact the fund's performance and shareholder value.

Future Outlook

The document does not contain specific forward-looking statements regarding financial performance, but focuses on the upcoming vote.

Management Comments

• The Funds Board strongly encourages you to vote the WHITE proxy card FOR your current trustee nominees.
• Your Funds Board urges you to support your Boards nominees by using the WHITE proxy card.

Industry Context

Proxy contests are a relatively common occurrence in the closed-end fund space, where activist investors like Saba Capital often seek to unlock value or influence fund strategy.

Comparison to Industry Standards

• Saba Capital is known for engaging in activist strategies within closed-end funds, similar to other firms like Bulldog Investors or Karpus Management.
• Proxy contests are a standard mechanism for shareholders to express their views on fund management and direction, aligning with corporate governance norms.

Stakeholder Impact

• Shareholders are directly impacted by the outcome of the proxy vote, which will determine the composition of the board.
• The fund's management and employees could be affected by any changes in strategy or governance resulting from the proxy contest.

Next Steps

• Shareholders need to review the proxy materials and vote using the WHITE proxy card.
• The Annual Meeting will be held on September 27, 2024.

Key Dates

Keywords

Proxy Contest, Annual Meeting, Saba Capital, Trustee Nominees, WHITE Proxy Card, Shareholders, MainStay CBRE Global Infrastructure Megatrends Term Fund, Investment, Fund