DEFA14A: NYLI CBRE Global Infrastructure Megatrends Term Fund Faces Proxy Fight from Saba Capital

NYLI CBRE Global Infrastructure Megatrends Term Fund urges shareholders to vote for its incumbent trustees and reject Saba Capital's nominee at the upcoming annual meeting.

Summary

• NYLI CBRE Global Infrastructure Megatrends Term Fund (MEGI) is asking shareholders to vote for its incumbent trustees at the September 27, 2024, Annual Meeting.
• The fund is facing a proxy fight from Saba Capital Management, L.P., a hedge fund firm.
• Saba has nominated an opposing trustee and is soliciting proxies from shareholders.
• The Fund's Board of Trustees unanimously recommends that shareholders vote for the Fund's nominated Incumbent Trustees.
• The Fund's Trustees oppose the Saba proxy solicitation and trustee.
• The Fund warns that Saba's initiatives are intended to generate short-term profits for Saba and its investors.
• The Fund claims that if Saba's solicitation is successful, it could disrupt MEGI's operation and Saba's nominee may propose a liquidity event that could adversely impact the Fund.
• Shareholders are urged to discard any GOLD proxy cards received from Saba and to vote using the WHITE proxy cards from MEGI.
• EQ Fund Solutions is available to answer questions at 800-848-3374.

Sentiment

Score: 4

Explanation: The sentiment is negative due to the proxy fight and the potential for disruption. The fund is actively defending against an activist investor.

Positives

• The Fund's Board of Trustees is unified in its recommendation to vote for the incumbent trustees.
• The Fund is actively communicating with shareholders to ensure they are informed about the proxy vote.

Negatives

• The fund is under attack by New York City based hedge fund firm, Saba Capital Management, L.P. (Saba).
• Saba's initiatives are intended to generate short-term profits for Saba and its investors.
• If Sabas solicitation is successful, it could disrupt MEGIs operation and Sabas nominee may propose a liquidity event that could adversely impact the Fund.

Risks

• Saba's potential success in the proxy fight could lead to a disruption of MEGI's operations.
• A liquidity event proposed by Saba's nominee could adversely impact the Fund.
• Saba's focus on short-term profits may not align with the long-term interests of all shareholders.

Future Outlook

The document focuses on the immediate action required for the upcoming shareholder vote and does not provide a broader future outlook for the fund.

Management Comments

• Kirk C. Lehneis, President, urges shareholders to vote using the WHITE proxy cards and discard the GOLD proxy cards from Saba.

Industry Context

Hedge fund activism in closed-end funds is a common strategy to unlock value or force corporate actions. Saba Capital is known for this type of activism.

Stakeholder Impact

• Shareholders are directly impacted by the proxy vote and the potential changes to the fund's direction.
• The outcome of the proxy fight could affect the fund's investment strategy and performance.

Next Steps

• Shareholders need to vote on the nominated trustees by following the instructions on the WHITE proxy card.
• The Annual Meeting of Shareholders will be held on September 27, 2024.

Key Dates

Keywords

proxy fight, Saba Capital, trustees, shareholders, MEGI, NYLI CBRE Global Infrastructure Megatrends Term Fund, proxy solicitation, Annual Meeting