How does MEGI’s current distribution yield compare to similar infrastructure or megatrends funds?

MEGI is currently offering a 10.5 % annualized distribution based on its market price ($14.29) and 9.6 % based on its NAV ($15.62). By comparison, the broader universe of listed infrastructure‑oriented vehicles typically trades in the 5 %–7 % range. For example, the iShares Global Infrastructure ETF (IGF) and the SPDR S&P Global Infrastructure ETF (GII) have price‑based yields hovering around 4.5 %‑5.5 %, while pure‑play megatrend funds such as the Global X MSCI SuperDividend Alternatives ETF (ALTY) or the Invesco Global Clean Energy ETF (PBD) sit in the 6 %–8 % band. Even newer, higher‑yielding players like the Pacer Benchmark Industrial Real Estate SCTR (RERE) are capped near 8 %–9 % on a price basis. In short, MEGI’s distribution is well above the peer set, reflecting either a more aggressive payout policy, higher underlying cash flow from its CBRE‑sponsored infrastructure assets, or a pricing discount relative to NAV.

From a trading standpoint, the elevated yield creates a risk‑adjusted upside if the fund can sustain cash distributions, but it also flags potential sustainability concerns—MEGI’s leverage profile, asset turnover, and the impending Section 19(a) redemption window (August 2025) deserve close monitoring. Technically, the $14.29 price sits near its 50‑day moving average and above the 200‑day trend line, suggesting short‑term support, while the NAV discount (~8 %) offers a cushion for yield‑focused buyers. A prudent entry could be a partial long position at current levels with a stop‑loss around $12.80 (roughly 10 % below the price) and a target near $16 where the price‑based yield would compress to ~6.5 %, aligning more closely with peers. If the fund’s cash flow deteriorates or redemption pressure spikes, expect the price to converge toward NAV and the yield to fall sharply, which would be an exit trigger.