Mainstay Funds Trust N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act File Number 811-22321

MAINSTAY FUNDS TRUST

(Exact name of Registrant as specified in charter)

51 Madison Avenue, New York, NY 10010
(Address of principal executive offices) (Zip code)

J. Kevin Gao, Esq.
169 Lackawanna Avenue
Parsippany, New Jersey 07054
(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 624-6782

Date of fiscal year end: October 31

Date of reporting period: April 30, 2011

Item 1. Reports to Stockholders.

MainStay 130/30 Funds

Message from the President and Semiannual Report

Unaudited - April 30, 2011

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay 130/30 International Fund

This page intentionally left blank

Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
MainStay 130/30 Core Fund	5
MainStay 130/30 Growth Fund	30
MainStay 130/30 International Fund	47
Notes to Financial Statements	74
Board Consideration and Approval of Management Agreements and Subadvisory Agreements	85
Proxy Voting Policies and Procedures and Proxy Voting Record	89
Shareholder Reports and Quarterly Portfolio Disclosure	89

Investors should refer to each Fund’s Summary Prospectus and/or Prospectus and consider each Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information. You may obtain copies of each Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read each Fund’s Summary Prospectus and/or Prospectus carefully before investing.

MainStay 130/30 Core Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(6/29/07)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		9	.71%		10	.47%		–5	.62%		2	.53%
		Excluding sales charges		16	.10		16	.90		–4	.22		2	.53
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		9	.75		10	.65		–5	.46		2	.32
		Excluding sales charges		16	.13		17	.09		–4	.05		2	.32
Class C Shares	Maximum 1% CDSC	With sales charges		14	.62		14	.95		–4	.94		3	.26
	if Redeemed Within One Year of Purchase	Excluding sales charges		15	.62		15	.95		–4	.94		3	.26
Class I Shares	No Sales Charge			16	.36		17	.48		–3	.83		2	.04

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Since
Benchmark Performance	Months			Year			Inception
Russell 1000® Index4		17	.12%		18	.02%		0	.13%
Average Lipper Extended U.S. Large-Cap Core Fund5		16	.90		16	.72		–3	.26

4.

The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000® Index represents approximately 92% of the Russell 3000® Index. Total returns assume reinvestment of all dividends and capital gains. The Russell 1000® Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an Index.

5.

The average Lipper extended U.S. large-cap core fund is representative of funds that combine long and short stock selection to invest in a diversified portfolio of U.S. large-cap equities, with a target net exposure of 100% long. Typical strategies vary between 110% long and 10% short to 160% long and 60% short. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay 130/30 Core Fund

Cost in Dollars of a $1,000 Investment in MainStay 130/30 Core Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,161.00	$	12.22	$	1,013.50	$	11.38
Class A Shares	$	1,000.00	$	1,161.30	$	11.09	$	1,014.50	$	10.34
Class C Shares	$	1,000.00	$	1,156.20	$	16.15	$	1,009.80	$	15.05
Class I Shares	$	1,000.00	$	1,163.60	$	9.76	$	1,015.80	$	9.10

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (2.28% for Investor Class, 2.07% for Class A, 3.02% for Class C and 1.82% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Industry Composition as of April 30, 2011 (Unaudited)

Oil, Gas & Consumable Fuels	12.5	%
Insurance	6.1
Semiconductors & Semiconductor Equipment	6.0
Computers & Peripherals	5.8
Specialty Retail	5.4
Media	5.3
Health Care Providers & Services	4.6
IT Services	4.5
Machinery	4.4
Diversified Financial Services	4.1
Energy Equipment & Services	4.1
Pharmaceuticals	4.0
Software	3.7
Communications Equipment	3.4
Capital Markets	3.2
Food & Staples Retailing	3.2
Commercial Banks	3.0
Chemicals	2.8
Diversified Telecommunication Services	2.8
Biotechnology	2.7
Wireless Telecommunication Services	2.6
Hotels, Restaurants & Leisure	2.1
Industrial Conglomerates	2.1
Auto Components	2.0
Food Products	2.0
Internet Software & Services	2.0
Metals & Mining	1.9
Diversified Consumer Services	1.7
Health Care Equipment & Supplies	1.6
Beverages	1.5
Electrical Equipment	1.5
Internet & Catalog Retail	1.5
Household Durables	1.4
Life Sciences Tools & Services	1.4
Road & Rail	1.4
Aerospace & Defense	1.3
Automobiles	1.3
Consumer Finance	1.2
Real Estate Investment Trusts	1.1
Real Estate Management & Development	1.0
Tobacco	1.0
Multiline Retail	0.9
Household Products	0.8
Electronic Equipment & Instruments	0.7
Exchange Traded Funds	0.7
Paper & Forest Products	0.7
Air Freight & Logistics	0.6
Construction & Engineering	0.6
Personal Products	0.6
Airlines	0.5
Multi-Utilities	0.5
Trading Companies & Distributors	0.5
Commercial Services & Supplies	0.4
Gas Utilities	0.4
Professional Services	0.4
Independent Power Producers & Energy Traders	0.3
Building Products	0.2
Electric Utilities	0.2
Containers & Packaging	0.1
Office Electronics	0.1
Textiles, Apparel & Luxury Goods	0.0	‡
Short-Term Investment	0.1
Other Assets, Less Liabilities	0.0	‡
Investments Sold Short	–34.5
	100.0	%

See Portfolio of Investments beginning on page 12 for specific holdings within these categories.

‡  Less than one-tenth of a percent.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	ExxonMobil Corp.
2.	Apple, Inc.
3.	Chevron Corp.
4.	International Business Machines Corp.
5.	JPMorgan Chase & Co.
6.	Microsoft Corp.
7.	Wells Fargo & Co.
8.	Intel Corp.
9.	AT&T, Inc.
10.	ConocoPhillips

8    MainStay 130/30 Core Fund

Top Five Short Positions as of April 30, 2011

1.	Dendreon Corp.
2.	Vertex Pharmaceuticals, Inc.
3.	Royal Gold, Inc.
4.	Green Mountain Coffee Roasters, Inc.
5.	Human Genome Sciences, Inc.

mainstayinvestments.com    9

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Harvey J. Fram, CFA, and Mona Patni of Madison Square Investors LLC, the Fund’s Subadvisor.

How did MainStay 130/30 Core Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay 130/30 Core Fund returned 16.10% for Investor Class shares, 16.13% for Class A shares and 15.62% for Class C shares for the six months ended April 30, 2011. Over the same period, the Fund’s Class I shares returned 16.36%. All share classes underperformed the 16.90% return of the average Lipper¹ extended U.S. large-cap core fund and the 17.12% return of the Russell 1000^® Index² for the six months ended April 30, 2011. The Russell 1000^® Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

While earnings-based factors in our model worked well, price-based momentum factors in our model suffered, especially during the second half of April 2011. Within the valuation factors of our model, operating cash flow-based multiples worked better than free cash flow multiples. Earnings quality and sales-to-enterprise factors showed positive returns.³

During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?

An underweight position in the financials sector made the strongest positive contribution to the Fund’s performance relative to the Russell 1000^® Index. (Contributions take weightings and total returns into account.) The Fund had a benchmark-neutral allocation to industrials, but favorable stock selection in the sector made a positive contribution to the Fund’s relative performance. In utilities, the poorest-performing sector in the benchmark during the reporting period, an underweight position made a positive contribution to the Fund’s relative performance.

An overweight allocation to information technology detracted from the Fund’s performance relative to the Russell 1000^® Index, as did stock selection in the health care sector. An underweight position in the materials sector also detracted from the Fund’s relative performance.

During the reporting period, which individual stocks made the strongest positive contributions to the Fund’s absolute performance and which stocks detracted the most?

Given the substantial increase in energy prices during the reporting period, it should not be surprising that the strongest contributors to the Fund’s absolute performance came from the energy sector. The strongest positive contributions to the Fund’s absolute performance came from long positions in integrated oil companies ExxonMobil, Chevron and ConocoPhillips.

The worst detractor from the Fund’s absolute performance was a short position in coffee company Green Mountain Coffee Roasters. Our model regarded the stock as expensive relative to the company’s cash flow and revenues, and it scored the stock poorly on earnings quality. Nevertheless, the stock rose more than 100% during the reporting period, surging more than 40% in a single day when the company agreed to distribute Starbucks’ coffee. A long position in networking and communications provider Cisco Systems and a short position in semiconductor equipment company Nvidia also detracted from the Fund’s absolute performance.

Did the Fund make any significant purchases or sales during the reporting period?

In November 2010, the Fund started buying Liberty Media Corp. Interactive, a catalog/retail company, based on valuation and sales multiples. In the same month, the Fund also started covering a short position in Dresser-Rand Group, an oilfield machinery equipment company, and steadily built an overweight position because of the stock’s short interest change, sales multiple, price momentum and positive management signal.

In February 2011, we sold the Fund’s entire long position in athletic products giant Nike, prior to the company’s earnings/revenue disappointment in March. Nike had scored poorly on earnings quality and industry momentum. In December 2010, we began to trim the Fund’s overweight position in discount broker Charles Schwab, initially based on poor momentum scores. In March 2011, we eliminated the Fund’s long position in Charles Schwab, as the stock’s valuation reading also started to deteriorate.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, we increased the Fund’s weightings relative to the Russell 1000^® Index in financials and information technology. The shift in financials came primarily from covering on the short side. In information technology, we added long positions.

Over the same period, we decreased the Fund’s weightings in the materials sector by reducing long positions and increasing short positions. The Fund also reduced its overweight position in industrials, primarily by trimming long positions.

  
1. See footnote on page 6 for more information on Lipper Inc.
2. See footnote on page 6 for more information on the Russell 1000^® Index.
3. Operating cash flow measures revenues minus operating expenses, or the cash a company generates from running its business. Free cash flow measures operating cash flow minus operating expenses. A company with high expenditures may appear cheaper (or have a lower multiple) on an operating cash flow basis than on a free cash flow basis. Each measure helps select different types of stocks, and the Fund’s model uses both measures for diversification purposes. Sales-to-enterprise value is the ratio of a company’s sales to a broad measure of market value (essentially, market value of equity plus debt on the balance sheet). The Fund considers sales-to-enterprise value on an industry-relative basis to avoid mistaken comparisons (such as high-margin Intel against low-margin Wal-Mart Stores).

10    MainStay 130/30 Core Fund

How was the Fund positioned at the end of April 2011?

As of April 30, 2011, the Fund was overweight relative to the Russell 1000^® Index in the consumer discretionary and information technology sectors. On the same date, the Fund held underweight positions relative to the Russell 1000^® Index in utilities, materials and financials.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    11

Portfolio of Investments^†††April 30, 2011 (unaudited)

	Shares		Value
Common Stocks 133.7%†
Aerospace & Defense 1.3%
Honeywell International, Inc. (a)		37,119	$	2,272,797
Huntington Ingalls Industries, Inc. (b)		8,255		330,200
ITT Corp.		628		36,292
L-3 Communications Holdings, Inc.		267		21,411
Textron, Inc. (a)		24,481		638,954
United Technologies Corp. (a)		2,316		207,467
				3,507,121
Air Freight & Logistics 0.6%
FedEx Corp. (a)		17,725		1,695,751
Airlines 0.5%
Southwest Airlines Co. (a)		79,908		938,919
United Continental Holdings, Inc. (a)(b)		18,422		420,390
				1,359,309
Auto Components 2.0%
Autoliv, Inc. (a)		13,507		1,082,316
Federal-Mogul Corp. (a)(b)		22,711		601,841
Goodyear Tire & Rubber Co. (The) (a)(b)		53,858		977,523
Lear Corp. (a)		26,618		1,361,244
TRW Automotive Holdings Corp. (a)(b)		24,793		1,414,689
				5,437,613
Automobiles 1.3%
Ford Motor Co. (a)(b)		155,153		2,400,217
Harley-Davidson, Inc. (a)		30,496		1,136,281
				3,536,498
Beverages 1.5%
Coca-Cola Co. (The) (a)		20,133		1,358,172
Constellation Brands, Inc. Class A (b)		20,544		459,980
Dr. Pepper Snapple Group, Inc. (a)		39,732		1,557,495
PepsiCo., Inc. (a)		10,807		744,494
				4,120,141
Biotechnology 2.7%
Amgen, Inc. (a)(b)		35,651		2,026,759
Biogen Idec, Inc. (a)(b)		6,087		592,569
Cephalon, Inc. (a)(b)		21,982		1,688,218
Gilead Sciences, Inc. (a)(b)		29,763		1,155,995
Myriad Genetics, Inc. (a)(b)		51,620		1,106,733
Talecris Biotherapeutics Holdings Corp. (b)		12,616		352,239
United Therapeutics Corp. (b)		6,140		411,134
				7,333,647
Building Products 0.2%
Armstrong World Industries, Inc.		9,604		429,779
Capital Markets 3.2%
Ameriprise Financial, Inc. (a)		8,435		523,476
Bank of New York Mellon Corp. (The) (a)		67,324		1,949,703
Goldman Sachs Group, Inc. (The) (a)		17,579		2,654,605
Morgan Stanley		5,021		131,299
Northern Trust Corp. (a)		30,520		1,525,695
Raymond James Financial, Inc.		5,803		217,612
State Street Corp. (a)		38,247		1,780,398
				8,782,788
Chemicals 2.8%
Ashland, Inc. (a)		17,553		1,089,690
Cabot Corp.		1,605		71,984
CF Industries Holdings, Inc. (a)		10,784		1,526,475
Dow Chemical Co. (The) (a)		8,595		352,309
E.I. du Pont de Nemours & Co. (a)		7,297		414,397
Ecolab, Inc.		26,785		1,413,177
Lubrizol Corp. (The) (a)		1,334		179,450
Monsanto Co. (a)		24,007		1,633,436
Nalco Holding Co. (a)		5,240		153,060
PPG Industries, Inc. (a)		1,274		120,610
Scotts Miracle-Gro Co. (The) Class A (a)		6,972		393,709
Sherwin-Williams Co. (The)		2,433		200,211
				7,548,508
Commercial Banks 3.0%
BOK Financial Corp. (a)		918		49,370
CIT Group, Inc. (b)		10,544		447,698
East West Bancorp, Inc. (a)		20,172		426,234
First Citizens BancShares, Inc. Class A (a)		2,430		486,024
Huntington Bancshares, Inc.		873		5,928
KeyCorp (a)		90,581		785,337
PNC Financial Services Group, Inc. (a)		30,223		1,884,102
Popular, Inc. (b)		54,177		170,658
X  Wells Fargo & Co. (a)		135,159		3,934,479
				8,189,830
Commercial Services & Supplies 0.4%
Avery Dennison Corp.		2,347		97,964
Covanta Holding Corp.		18,035		309,661
Iron Mountain, Inc.		1,143		36,404
KAR Auction Services, Inc. (b)		3,829		74,665
R.R. Donnelley & Sons Co. (a)		24,760		466,974
				985,668
Communications Equipment 3.4%
Brocade Communications Systems, Inc. (a)(b)		7,446		46,537
Cisco Systems, Inc. (a)		179,514		3,152,266
EchoStar Corp. Class A (a)(b)		27,320		1,013,026
Harris Corp. (a)		27,719		1,472,710
Motorola Mobility Holdings, Inc. (a)(b)		37,745		983,635

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

12    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares		Value
Common Stocks (continued)
Communications Equipment (continued)
Motorola Solutions, Inc. (a)(b)		26,678	$	1,223,987
QUALCOMM, Inc. (a)		7,847		446,023
Tellabs, Inc. (a)		205,279		1,009,973
				9,348,157
Computers & Peripherals 5.8%
X  Apple, Inc. (a)(b)		19,269		6,710,044
Dell, Inc. (a)(b)		121,828		1,889,552
EMC Corp. (a)(b)		8,960		253,926
Hewlett-Packard Co. (a)		54,919		2,217,080
Lexmark International, Inc. Class A (a)(b)		12,271		395,740
SanDisk Corp. (a)(b)		31,292		1,537,689
Seagate Technology PLC (a)		90,970		1,602,891
Western Digital Corp. (a)(b)		27,432		1,091,794
				15,698,716
Construction & Engineering 0.6%
Chicago Bridge & Iron Co. N.V. (a)		5,623		227,956
KBR, Inc. (a)		39,739		1,524,786
				1,752,742
Consumer Finance 1.2%
American Express Co. (a)		48,676		2,389,018
Capital One Financial Corp.		5,385		294,721
Discover Financial Services (a)		20,475		508,599
				3,192,338
Containers & Packaging 0.1%
Crown Holdings, Inc. (b)		9,293		347,558
Diversified Consumer Services 1.7%
Apollo Group, Inc. Class A (a)(b)		34,101		1,365,063
Career Education Corp. (a)(b)		42,002		916,064
DeVry, Inc.		5,929		313,644
H&R Block, Inc. (a)		55,056		951,918
ITT Educational Services, Inc. (a)(b)		15,708		1,126,735
				4,673,424
Diversified Financial Services 4.1%
Bank of America Corp. (a)		287,770		3,533,816
Citigroup, Inc. (a)(b)		120,520		553,187
Interactive Brokers Group, Inc. (a)		65,163		1,142,959
X  JPMorgan Chase & Co. (a)		105,110		4,796,169
Leucadia National Corp.		26,388		1,020,160
NASDAQ OMX Group, Inc. (The) (b)		5,103		138,291
				11,184,582
Diversified Telecommunication Services 2.8%
X  AT&T, Inc. (a)		118,296		3,681,372
CenturyLink, Inc.		12,318		502,328
Verizon Communications, Inc. (a)		89,681		3,388,148
				7,571,848
Electric Utilities 0.2%
Edison International (a)		10,227		401,615
N.V. Energy, Inc.		1,938		29,438
				431,053
Electrical Equipment 1.5%
AMETEK, Inc.		8,605		396,174
Emerson Electric Co. (a)		36,486		2,216,889
Hubbel, Inc. Class B (a)		4,747		332,243
Thomas & Betts Corp. (a)(b)		18,278		1,059,576
				4,004,882
Electronic Equipment & Instruments 0.7%
Jabil Circuit, Inc.		22,678		449,932
Vishay Intertechnology, Inc. (a)(b)		66,781		1,274,181
Vishay Precision Group, Inc. (a)(b)		14,577		240,520
				1,964,633
Energy Equipment & Services 4.1%
Diamond Offshore Drilling, Inc. (a)		18,779		1,424,763
Dresser-Rand Group, Inc. (a)(b)		27,704		1,455,568
Exterran Holdings, Inc. (a)(b)		45,889		996,250
Helmerich & Payne, Inc.		2,253		149,464
Oceaneering International, Inc. (a)(b)		16,869		1,474,688
Patterson-UTI Energy, Inc. (a)		49,670		1,545,234
Schlumberger, Ltd.		11,423		1,025,214
SEACOR Holdings, Inc. (a)		11,069		1,093,949
Superior Energy Services, Inc. (a)(b)		33,669		1,293,563
Unit Corp. (a)(b)		10,156		640,031
				11,098,724
Food & Staples Retailing 3.2%
Costco Wholesale Corp. (a)		25,943		2,099,307
Kroger Co. (The) (a)		44,515		1,082,160
Safeway, Inc. (a)		48,302		1,174,222
SUPERVALU, Inc.		10,729		120,808
Wal-Mart Stores, Inc. (a)		49,342		2,712,823
Walgreen Co. (a)		35,361		1,510,622
				8,699,942
Food Products 2.0%
Corn Products International, Inc. (a)		9,548		526,095
Flowers Foods, Inc. (a)		33,847		1,034,364
Sara Lee Corp. (a)		85,280		1,637,376
Smithfield Foods, Inc. (a)(b)		38,096		897,542
Tyson Foods, Inc. Class A (a)		74,611		1,484,759
				5,580,136

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
Gas Utilities 0.4%
Questar Corp.		49,527	$	870,189
UGI Corp.		4,698		156,444
				1,026,633
Health Care Equipment & Supplies 1.6%
Baxter International, Inc. (a)		22,623		1,287,249
Beckman Coulter, Inc.		468		38,774
Becton, Dickinson & Co. (a)		14,425		1,239,684
Cooper Cos., Inc. (The) (a)		19,188		1,437,181
Zimmer Holdings, Inc. (b)		6,664		434,826
				4,437,714
Health Care Providers & Services 4.6%
Aetna, Inc. (a)		1,316		54,456
AmerisourceBergen Corp. (a)		39,437		1,602,720
CIGNA Corp.		11,599		543,181
Community Health Systems, Inc. (b)		10,406		319,777
Emergency Medical Services Class A (b)		392		25,010
Express Scripts, Inc. (a)(b)		20,283		1,150,858
Health Management Associates, Inc. Class A (b)		83,911		946,516
Health Net, Inc. (a)(b)		43,954		1,463,668
Humana, Inc. (a)(b)		23,375		1,779,305
Lincare Holdings, Inc. (a)		31,593		992,652
McKesson Corp. (a)		1,812		150,414
Medco Health Solutions, Inc. (a)(b)		16,304		967,316
UnitedHealth Group, Inc. (a)		51,323		2,526,631
Universal Health Services, Inc. Class B (a)		171		9,367
				12,531,871
Hotels, Restaurants & Leisure 2.1%
Brinker International, Inc. (a)		44,331		1,067,934
Darden Restaurants, Inc.		11,902		559,037
Marriott International, Inc. Class A (a)		15,216		537,125
McDonald’s Corp.		3,304		258,736
Panera Bread Co. Class A (a)(b)		5,592		677,247
Penn National Gaming, Inc. (b)		7,136		285,511
Royal Caribbean Cruises, Ltd. (a)(b)		4,356		173,456
Starbucks Corp. (a)		3,967		143,566
Wendy’s/Arby’s Group, Inc. Class A (a)		219,475		1,057,870
Wynn Resorts, Ltd. (a)		7,489		1,102,006
				5,862,488
Household Durables 1.4%
D.R. Horton, Inc.		72,489		901,763
Garmin, Ltd. (a)(b)		10,143		347,195
Leggett & Platt, Inc.		1,937		50,924
Pulte Group, Inc. (b)		144,064		1,171,240
Whirlpool Corp. (a)		14,700		1,266,846
				3,737,968
Household Products 0.8%
Procter & Gamble Co. (The) (a)		34,376		2,231,002
Independent Power Producers & Energy Traders 0.3%
AES Corp. (The) (b)		29,086		385,099
NRG Energy, Inc. (a)(b)		19,713		477,054
				862,153
Industrial Conglomerates 2.1%
3M Co. (a)		12,196		1,185,573
General Electric Co. (a)		139,933		2,861,630
Tyco International, Ltd. (a)		37,161		1,811,227
				5,858,430
Insurance 6.1%
ACE, Ltd. (a)		22,179		1,491,538
Aflac, Inc. (a)		7,250		407,378
Allied World Assurance Co. Holdings, Ltd.		12,365		803,354
American Financial Group, Inc.		19,527		698,481
American International Group, Inc. (b)		4,366		136,001
Arch Capital Group, Ltd. (a)(b)		284		29,536
Aspen Insurance Holdings, Ltd. (a)		17,653		504,346
Assurant, Inc.		11,646		462,346
Assured Guaranty, Ltd.		17,073		290,241
Axis Capital Holdings, Ltd. (a)		33,760		1,193,754
Berkshire Hathaway, Inc. Class B (a)(b)		17,507		1,458,333
Chubb Corp. (The) (a)		17,123		1,116,248
Endurance Specialty Holdings, Ltd. (a)		17,862		792,001
Hartford Financial Services Group, Inc. (The) (a)		55,733		1,614,585
PartnerRe, Ltd. (a)		4,442		356,959
Principal Financial Group, Inc. (a)		29,947		1,010,711
Protective Life Corp.		3,517		94,642
Prudential Financial, Inc. (a)		9,887		627,034
RenaissanceRe Holdings, Ltd. (a)		9,566		672,298
StanCorp Financial Group, Inc.		32		1,379
Symetra Financial Corp.		31,669		439,566
Travelers Cos., Inc. (The) (a)		29,325		1,855,686
Validus Holdings, Ltd.		19,370		630,300
				16,686,717
Internet & Catalog Retail 1.5%
Amazon.com, Inc. (b)		7,133		1,401,634
Expedia, Inc. (a)		40,161		1,005,230
Liberty Media Corp. Interactive Class A (a)(b)		88,937		1,554,619
				3,961,483
Internet Software & Services 2.0%
AOL, Inc. (a)(b)		55,043		1,121,776
Google, Inc. Class A (a)(b)		4,632		2,520,271
IAC/InterActiveCorp (a)(b)		35,292		1,274,394
VeriSign, Inc. (a)		13,211		488,279
				5,404,720

14    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares		Value
Common Stocks (continued)
IT Services 4.5%
Accenture PLC Class A (a)		36,325	$	2,075,247
Alliance Data Systems Corp. (b)		5,090		483,550
Amdocs, Ltd. (a)(b)		47,797		1,469,758
Booz Allen Hamilton Holding Corp. (b)		2,350		45,449
Broadridge Financial Solutions, Inc. (a)		1,352		31,420
Computer Sciences Corp.		19,719		1,005,275
Convergys Corp. (a)(b)		46,655		676,497
DST Systems, Inc.		7,175		353,799
X  International Business Machines Corp. (a)		32,548		5,552,038
Lender Processing Services, Inc.		6,081		178,964
Total System Services, Inc. (a)		20,541		387,198
				12,259,195
Life Sciences Tools & Services 1.4%
Bio-Rad Laboratories, Inc. Class A (a)(b)		5,981		748,342
Covance, Inc. (b)		24,140		1,511,164
Pharmaceutical Product Development, Inc. (a)		46,775		1,443,009
				3,702,515
Machinery 4.4%
AGCO Corp. (a)(b)		26,413		1,520,861
Bucyrus International, Inc. Class A		1,634		149,429
Caterpillar, Inc. (a)		12,552		1,448,626
CNH Global N.V. (a)(b)		22,537		1,088,537
Dover Corp.		312		21,229
Harsco Corp.		877		31,221
Joy Global, Inc.		392		39,572
Manitowoc Co., Inc. (The) (a)		60,916		1,351,726
Navistar International Corp. (a)(b)		21,009		1,460,546
Oshkosh Corp. (a)(b)		38,127		1,207,101
PACCAR, Inc. (a)		32,466		1,724,269
Timken Co. (The) (a)		13,274		748,521
Toro Co. (The) (a)		17,161		1,165,404
				11,957,042
Media 5.3%
CBS Corp. Class B (a)		24,634		621,270
Comcast Corp. Class A (a)		37,817		992,318
DIRECTV Class A (b)		44,325		2,153,752
DISH Network Corp. Class A (a)(b)		44,004		1,101,860
Gannett Co., Inc. (a)		77,145		1,161,804
Interpublic Group of Cos., Inc. (The) (a)		117,739		1,383,433
John Wiley & Sons, Inc. Class A		679		34,581
Liberty Global, Inc. Class A (b)		15,033		699,035
McGraw-Hill Cos., Inc. (The) (a)		33,118		1,340,285
Time Warner Cable, Inc. (a)		24,602		1,922,154
Virgin Media, Inc. (a)		54,036		1,635,129
Walt Disney Co. (The) (a)		6,638		286,098
Washington Post Co. Class B (a)		2,541		1,107,622
				14,439,341
Metals & Mining 1.9%
Alcoa, Inc.		76,056		1,292,952
Cliffs Natural Resources, Inc.		9,559		895,869
Freeport-McMoRan Copper & Gold, Inc. (a)		42,320		2,328,870
Newmont Mining Corp. (a)		12,278		719,614
				5,237,305
Multi-Utilities 0.5%
Alliant Energy Corp. (a)		6,365		251,672
CMS Energy Corp.		346		6,851
Integrys Energy Group, Inc. (a)		21,845		1,143,804
TECO Energy, Inc.		3,737		72,012
				1,474,339
Multiline Retail 0.9%
Big Lots, Inc. (a)(b)		18,814		773,444
Nordstrom, Inc.		5,986		284,634
Target Corp. (a)		30,941		1,519,203
				2,577,281
Office Electronics 0.1%
Xerox Corp.		21,899		220,961
Oil, Gas & Consumable Fuels 12.5%
Alpha Natural Resources, Inc. (a)(b)		26,080		1,517,074
Anadarko Petroleum Corp. (a)		18,301		1,444,681
Arch Coal, Inc. (a)		42,146		1,445,608
Chesapeake Energy Corp. (a)		42,226		1,421,749
X  Chevron Corp. (a)		51,157		5,598,622
Cimarex Energy Co. (a)		2,454		271,388
X  ConocoPhillips (a)		45,676		3,605,207
X  ExxonMobil Corp. (a)		94,090		8,279,920
Frontier Oil Corp.		3,920		109,525
Hess Corp. (a)		16,778		1,442,237
Holly Corp. (a)		20,144		1,166,338
Marathon Oil Corp. (a)		39,659		2,143,172
Murphy Oil Corp. (a)		21,988		1,703,630
Occidental Petroleum Corp.		2,420		276,582
Sunoco, Inc. (a)		32,693		1,394,683
Tesoro Corp. (b)		17,270		468,362
Valero Energy Corp. (a)		57,107		1,616,128
Whiting Petroleum Corp. (b)		2,709		188,275
				34,093,181
Paper & Forest Products 0.7%
Domtar Corp. (a)		15,454		1,437,531
MeadWestvaco Corp. (a)		12,311		414,758
				1,852,289
Personal Products 0.6%
Herbalife, Ltd. (a)		17,928		1,609,576

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
Pharmaceuticals 4.0%
Abbott Laboratories (a)		21,427	$	1,115,061
Eli Lilly & Co. (a)		55,177		2,042,101
Endo Pharmaceuticals Holdings, Inc. (a)(b)		13,324		521,768
Forest Laboratories, Inc. (a)(b)		25,546		847,105
Johnson & Johnson (a)		35,115		2,307,758
Merck & Co., Inc. (a)		20,966		753,728
Novartis A.G., ADR (c)		5,863		346,914
Pfizer, Inc. (a)		88,072		1,845,989
Warner Chilcott PLC Class A (a)		46,865		1,080,238
				10,860,662
Professional Services 0.4%
FTI Consulting, Inc. (a)(b)		27,670		1,104,033
Real Estate Investment Trusts 1.1%
Annaly Capital Management, Inc. (a)		87,111		1,554,060
Rayonier, Inc. (a)		22,875		1,517,985
				3,072,045
Real Estate Management & Development 1.0%
CB Richard Ellis Group, Inc. Class A (a)(b)		54,880		1,465,845
Jones Lang LaSalle, Inc. (a)		13,632		1,395,644
				2,861,489
Road & Rail 1.4%
CSX Corp.		15,750		1,239,367
Hertz Global Holdings, Inc. (a)(b)		73,912		1,272,026
J.B. Hunt Transport Services, Inc.		760		36,237
Ryder System, Inc. (a)		22,021		1,178,124
Union Pacific Corp.		801		82,879
				3,808,633
Semiconductors & Semiconductor Equipment 6.0%
Applied Materials, Inc. (a)		99,448		1,560,339
Atheros Communications, Inc. (a)(b)		1,346		60,382
Cypress Semiconductor Corp. (a)(b)		19,234		418,532
Fairchild Semiconductor International, Inc. (a)(b)		57,921		1,214,603
X  Intel Corp. (a)		168,204		3,900,651
Lam Research Corp. (a)(b)		27,666		1,336,544
LSI Corp. (b)		142,107		1,041,644
Marvell Technology Group, Ltd. (a)(b)		87,855		1,355,603
Maxim Integrated Products, Inc. (a)		54,884		1,500,529
MEMC Electronic Materials, Inc. (b)		1,114		13,179
Micron Technology, Inc. (a)(b)		135,539		1,530,235
National Semiconductor Corp.		1,497		36,108
Novellus Systems, Inc. (b)		12,464		400,094
ON Semiconductor Corp. (b)		35,073		368,617
Rambus, Inc. (b)		18,851		375,135
Teradyne, Inc. (a)(b)		77,030		1,240,183
				16,352,378
Software 3.7%
Activision Blizzard, Inc. (a)		103,794		1,182,214
Autodesk, Inc. (a)(b)		4,439		199,666
BMC Software, Inc. (a)(b)		13,414		673,785
CA, Inc.		1,258		30,934
Cadence Design Systems, Inc. (b)		717		7,443
Intuit, Inc. (a)(b)		2,564		142,456
X  Microsoft Corp. (a)		177,509		4,618,784
Oracle Corp. (a)		33,282		1,199,816
Symantec Corp. (a)(b)		86,356		1,696,895
Synopsys, Inc. (a)(b)		8,768		240,156
				9,992,149
Specialty Retail 5.4%
Advance Auto Parts, Inc. (a)		16,606		1,087,029
Aeropostale, Inc. (a)(b)		32,039		817,956
American Eagle Outfitters, Inc. (a)		89,525		1,393,009
AutoZone, Inc. (a)(b)		2,562		723,458
Best Buy Co., Inc.		17,788		555,341
Chico’s FAS, Inc. (a)		67,897		993,333
Dick’s Sporting Goods, Inc. (b)		4,565		186,845
Foot Locker, Inc. (a)		36,664		789,009
GameStop Corp. Class A (a)(b)		31,835		817,523
Gap, Inc. (The) (a)		64,983		1,510,205
Limited Brands, Inc. (a)		29,174		1,200,802
Lowe’s Cos., Inc.		8,806		231,157
PetSmart, Inc. (a)		33,170		1,398,779
Ross Stores, Inc. (a)		3,964		292,107
TJX Cos., Inc. (a)		22,043		1,181,946
Williams-Sonoma, Inc. (a)		35,248		1,530,116
				14,708,615
Textiles, Apparel & Luxury Goods 0.0%‡
VF Corp. (a)		559		56,213
Tobacco 1.0%
Philip Morris International, Inc. (a)		38,922		2,702,743
Trading Companies & Distributors 0.5%
W.W. Grainger, Inc. (a)		9,386		1,422,918
Wireless Telecommunication Services 2.6%
Leap Wireless International, Inc. (b)		44,644		662,517
MetroPCS Communications, Inc. (a)(b)		92,228		1,552,197
NII Holdings, Inc. (a)(b)		35,712		1,484,905
Sprint Nextel Corp. (a)(b)		347,104		1,797,999
Telephone and Data Systems, Inc. (a)		30,483		1,023,010

16    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares			Value
Common Stocks (continued)
Wireless Telecommunication Services (continued)
United States Cellular Corp. (a)(b)		13,759		$	677,493
					7,198,121
Total Common Stocks (Cost $312,799,616)					364,639,591
Exchange Traded Fund 0.7% (d)
S&P 500 Index-SPDR Trust Series 1		14,512			1,981,468
Total Exchange Traded Fund (Cost $1,910,596)					1,981,468
	Principal
	Amount
Short-Term Investment 0.1%
Repurchase Agreement 0.1%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $124,361 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $130,000 and a Market Value of $129,999)	$	124,361			124,361
Total Short-Term Investment (Cost $124,361)					124,361
Total Investments, Before Investments Sold Short (Cost $314,834,573) (e)		134.5	%		366,745,420
	Shares
Investments Sold Short (34.5%) Common Stocks Sold Short (34.5%)
Aerospace & Defense (0.4%)
Spirit Aerosystems Holdings, Inc. Class A (b)		(43,653	)		(1,073,864	)
Airlines (0.0%)‡
AMR Corp. (b)		(9,056	)		(53,159	)
Auto Components (0.5%)
Gentex Corp.		(41,337	)		(1,295,915	)
Automobiles (0.6%)
Tesla Motors, Inc. (b)		(27,905	)		(770,178	)
Thor Industries, Inc.		(27,847	)		(863,535	)
					(1,633,713	)
Beverages (0.3%)
Central European Distribution Corp. (b)		(70,661	)		(835,213	)
Hansen Natural Corp. (b)		(251	)		(16,604	)
					(851,817	)
Biotechnology (2.7%)
Alexion Pharmaceuticals, Inc. (b)		(12	)		(1,163	)
Amylin Pharmaceuticals, Inc. (b)		(64,390	)		(856,387	)
BioMarin Pharmaceuticals, Inc. (b)		(39,424	)		(1,060,111	)
Dendreon Corp. (b)		(33,532	)		(1,456,295	)
Human Genome Sciences, Inc. (b)		(44,979	)		(1,325,531	)
Regeneron Pharmaceuticals, Inc. (b)		(23,422	)		(1,197,099	)
Vertex Pharmaceuticals, Inc. (b)		(26,267	)		(1,445,210	)
					(7,341,796	)
Building Products (0.4%)
USG Corp. (b)		(61,545	)		(949,024	)
Capital Markets (1.1%)
E*TRADE Financial Corp. (b)		(60,368	)		(980,376	)
Greenhill & Co., Inc.		(15,244	)		(899,396	)
Jefferies Group, Inc.		(26,221	)		(633,762	)
Lazard, Ltd. Class A		(973	)		(39,893	)
LPL Investment Holdings, Inc. (b)		(11,178	)		(410,009	)
					(2,963,436	)
Chemicals (0.3%)
Intrepid Potash, Inc. (b)		(22,959	)		(786,575	)
Commercial Banks (2.3%)
Associated Banc-Corp.		(46,422	)		(677,761	)
BancorpSouth, Inc.		(65,752	)		(890,940	)
CapitalSource, Inc.		(110,410	)		(737,539	)
Comerica, Inc.		(9,925	)		(376,455	)
First Horizon National Corp.		(45,128	)		(494,151	)
Marshall & Ilsley Corp.		(129,357	)		(1,056,847	)
Regions Financial Corp.		(154,098	)		(1,131,079	)
Synovus Financial Corp.		(383,818	)		(959,545	)
Wilmington Trust Corp.		(5,672	)		(25,581	)
					(6,349,898	)
Communications Equipment (1.0%)
Ciena Corp. (b)		(38,513	)		(1,087,607	)
F5 Networks, Inc. (b)		(245	)		(24,833	)
JDS Uniphase Corp. (b)		(32,986	)		(687,428	)
Polycom, Inc. (b)		(17,538	)		(1,049,299	)
					(2,849,167	)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares			Value
Common Stocks Sold Short (continued)
Construction & Engineering (1.0%)
Aecom Technology Corp. (b)		(39,314	)	$	(1,071,700	)
Jacobs Engineering Group, Inc. (b)		(16,757	)		(831,315	)
Quanta Services, Inc. (b)		(23,273	)		(504,559	)
Shaw Group, Inc. (The) (b)		(10,814	)		(420,664	)
					(2,828,238	)
Construction Materials (0.8%)
Eagle Materials, Inc.		(33,774	)		(982,486	)
Vulcan Materials Co.		(26,768	)		(1,209,913	)
					(2,192,399	)
Consumer Finance (0.1%)
Green Dot Corp. (b)		(6,974	)		(300,998	)
SLM Corp. (b)		(1,605	)		(26,627	)
					(327,625	)
Containers & Packaging (0.1%)
Temple-Inland, Inc.		(13,819	)		(325,161	)
Distributors (0.2%)
LKQ Corp. (b)		(16,537	)		(417,063	)
Diversified Financial Services (0.5%)
CBOE Holdings, Inc.		(8,954	)		(240,146	)
MSCI, Inc. Class A (b)		(34,908	)		(1,238,187	)
					(1,478,333	)
Diversified Telecommunication Services (0.1%)
Level 3 Communications, Inc. (b)		(134,492	)		(209,807	)
Electrical Equipment (0.2%)
Babcock & Wilcox Co. (b)		(13,585	)		(426,705	)
Electronic Equipment & Instruments (1.2%)
Arrow Electronics, Inc. (b)		(810	)		(36,928	)
Avnet, Inc. (b)		(32,842	)		(1,192,822	)
Dolby Laboratories, Inc. Class A (b)		(5,039	)		(252,252	)
FLIR Systems, Inc.		(25,049	)		(882,226	)
Ingram Micro, Inc. Class A (b)		(20,044	)		(375,424	)
National Instruments Corp.		(9,324	)		(282,890	)
Tech Data Corp. (b)		(2,938	)		(156,096	)
Trimble Navigation, Ltd. (b)		(285	)		(13,349	)
					(3,191,987	)
Food Products (0.8%)
Archer-Daniels-Midland Co.		(8,363	)		(309,598	)
Bunge, Ltd.		(5,350	)		(403,604	)
Green Mountain Coffee Roasters, Inc. (b)		(20,016	)		(1,340,272	)
					(2,053,474	)
Health Care Equipment & Supplies (0.8%)
Boston Scientific Corp. (b)		(119,156	)		(892,478	)
Edwards Lifesciences Corp. (b)		(7,453	)		(643,567	)
Intuitive Surgical, Inc. (b)		(1,953	)		(682,964	)
					(2,219,009	)
Health Care Providers & Services (0.5%)
Brookdale Senior Living, Inc. (b)		(37,744	)		(1,028,147	)
VCA Antech, Inc. (b)		(8,599	)		(211,535	)
					(1,239,682	)
Health Care Technology (0.1%)
Emdeon, Inc. Class A (b)		(13,146	)		(205,866	)
Hotels, Restaurants & Leisure (0.1%)
Choice Hotels International, Inc.		(8,390	)		(313,618	)
Las Vegas Sands Corp. (b)		(335	)		(15,748	)
WMS Industries, Inc. (b)		(1,182	)		(38,770	)
					(368,136	)
Household Durables (2.3%)
KB Home		(77,842	)		(919,314	)
Lennar Corp. Class A		(62,592	)		(1,188,622	)
M.D.C. Holdings, Inc.		(35,793	)		(1,044,798	)
NVR, Inc. (b)		(1,560	)		(1,153,355	)
Stanley Black & Decker, Inc.		(731	)		(53,107	)
Tempur-Pedic International, Inc. (b)		(12,512	)		(785,503	)
Toll Brothers, Inc. (b)		(59,632	)		(1,252,868	)
					(6,397,567	)
Independent Power Producers & Energy Traders (0.5%)
GenOn Energy, Inc. (b)		(201,052	)		(790,134	)
Ormat Technologies, Inc.		(26,136	)		(650,787	)
					(1,440,921	)
Industrial Conglomerates (0.2%)
Carlisle Cos., Inc.		(13,241	)		(655,959	)
Insurance (1.4%)
American National Insurance Co.		(743	)		(58,771	)
Genworth Financial, Inc. Class A (b)		(94,684	)		(1,154,198	)
MBIA, Inc. (b)		(93,642	)		(966,386	)
Old Republic International Corp.		(91,031	)		(1,153,363	)
OneBeacon Insurance Group, Ltd. Class A		(7,923	)		(111,318	)
Wesco Financial Corp.		(919	)		(360,248	)
					(3,804,284	)
Internet Software & Services (0.5%)
Akamai Technologies, Inc. (b)		(2,092	)		(72,049	)
Monster Worldwide, Inc. (b)		(55,863	)		(916,712	)
WebMD Health Corp. (b)		(2,437	)		(141,029	)
Yahoo!, Inc. (b)		(18,435	)		(327,221	)
					(1,457,011	)

18    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares			Value
Common Stocks Sold Short (continued)
IT Services (0.6%)
FleetCor Technologies, Inc. (b)		(1,807	)	$	(67,781	)
Genpact, Ltd. (b)		(71,606	)		(1,152,140	)
Global Payments, Inc.		(8,986	)		(478,415	)
					(1,698,336	)
Life Sciences Tools & Services (0.0%)‡
Techne Corp.		(916	)		(71,182	)
Machinery (0.3%)
Terex Corp. (b)		(25,486	)		(886,403	)
Media (2.1%)
Central European Media Enterprises, Ltd. Class A (b)		(46,737	)		(1,070,745	)
Discovery Communications, Inc. Class A (b)		(25,148	)		(1,113,050	)
DreamWorks Animation SKG, Inc. Class A (b)		(36,414	)		(964,607	)
Liberty Media Corp.—Starz Series A (b)		(10,623	)		(816,377	)
Liberty Media Corp. Capital Series A (b)		(9,180	)		(755,239	)
Morningstar, Inc.		(15,532	)		(894,643	)
New York Times Co. (The) Class A (b)		(2,560	)		(20,813	)
					(5,635,474	)
Metals & Mining (2.5%)
AK Steel Holding Corp.		(64,881	)		(1,054,316	)
Allegheny Technologies, Inc.		(17,798	)		(1,281,456	)
Carpenter Technology Corp.		(23,666	)		(1,213,119	)
Commercial Metals Co.		(4,989	)		(83,615	)
Royal Gold, Inc.		(22,216	)		(1,354,732	)
Titanium Metals Corp. (b)		(38,799	)		(777,144	)
United States Steel Corp.		(21,132	)		(1,008,208	)
					(6,772,590	)
Multiline Retail (0.2%)
Dollar General Corp. (b)		(17,718	)		(577,430	)
Oil, Gas & Consumable Fuels (1.8%)
Cobalt International Energy, Inc. (b)		(72,730	)		(1,018,220	)
EXCO Resources, Inc.		(10,748	)		(225,170	)
Frontline, Ltd.		(4,864	)		(107,543	)
PetroHawk Energy Corp. (b)		(46,595	)		(1,258,531	)
Range Resources Corp.		(22,500	)		(1,270,125	)
SandRidge Energy, Inc. (b)		(41,313	)		(510,629	)
Teekay Corp.		(15,083	)		(512,671	)
					(4,902,889	)
Pharmaceuticals (0.4%)
Hospira, Inc. (b)		(7,074	)		(401,308	)
Perrigo Co.		(7,307	)		(660,260	)
					(1,061,568	)
Professional Services (0.1%)
Nielsen Holdings N.V. (b)		(4,261	)		(127,362	)
Towers Watson & Co. Class A		(773	)		(44,339	)
					(171,701	)
Real Estate Management & Development (0.0%)‡
Howard Hughes Corp. (The) (b)		(554	)		(35,883	)
Semiconductors & Semiconductor Equipment (2.0%)
Advanced Micro Devices, Inc. (b)		(142,396	)		(1,295,804	)
Atmel Corp. (b)		(20,825	)		(318,622	)
Cree, Inc. (b)		(25,943	)		(1,056,918	)
NVIDIA Corp. (b)		(15,126	)		(302,520	)
Skyworks Solutions, Inc. (b)		(27,291	)		(858,575	)
SunPower Corp. Class A (b)		(22,009	)		(479,136	)
Varian Semiconductor Equipment Associates, Inc. (b)		(27,381	)		(1,148,085	)
					(5,459,660	)
Software (0.6%)
Citrix Systems, Inc. (b)		(2,689	)		(226,790	)
Informatica Corp. (b)		(2,136	)		(119,637	)
Red Hat, Inc. (b)		(7,950	)		(377,387	)
Salesforce.com, Inc. (b)		(6,541	)		(906,583	)
					(1,630,397	)
Specialty Retail (1.4%)
Aaron’s, Inc.		(43,696	)		(1,258,008	)
AutoNation, Inc. (b)		(5,219	)		(176,976	)
CarMax, Inc. (b)		(34,256	)		(1,188,683	)
RadioShack Corp.		(24,156	)		(381,907	)
Tiffany & Co.		(7,124	)		(494,691	)
Urban Outfitters, Inc. (b)		(10,942	)		(344,235	)
					(3,844,500	)
Textiles, Apparel & Luxury Goods (0.6%)
Hanesbrands, Inc. (b)		(39,123	)		(1,271,889	)
Phillips-Van Heusen Corp.		(5,465	)		(384,790	)
					(1,656,679	)
Thrifts & Mortgage Finance (0.8%)
Capitol Federal Financial, Inc.		(44,170	)		(500,004	)
People’s United Financial, Inc.		(37,609	)		(514,867	)
TFS Financial Corp.		(98,087	)		(1,067,187	)
					(2,082,058	)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares			Value
Common Stocks Sold Short (continued)
Wireless Telecommunication Services (0.1%)
Clearwire Corp. Class A (b)		(62,823	)	$	(305,320	)
Total Common Stocks Sold Short (Proceeds $83,828,215)					(94,179,661	)
Total Investments Sold Short (Proceeds $83,828,215)		(34.5	)%		(94,179,661	)
Total Investments, Net of Investments Sold Short (Cost $231,006,358)		100.0			272,565,759
Other Assets, Less Liabilities		0.0	‡		114,438
Net Assets		100.0	%	$	272,680,197

†††	On a daily basis New York Life Investments confirms that the value of the Fund’s liquid assets (liquid portfolio securities and cash) is sufficient to cover its potential senior securities (e.g., futures, swaps, options).
‡	Less than one-tenth of a percent.
(a)	Security, or a portion thereof, is maintained in a segregated account at the Fund’s custodian as collateral for securities sold short (See Note 2(I)).
(b)	Non-income producing security.
(c)	ADR—American Depositary Receipt.
(d)	Exchange Traded Fund—An investment vehicle that represents a basket of securities that is traded on an exchange.
(e)	At April 30, 2011, cost is $321,710,750 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	56,731,291
Gross unrealized depreciation		(11,696,621	)
Net unrealized appreciation	$	45,034,670

20    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets and liabilities.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	364,639,591	$	—	$	—	$	364,639,591
Exchange Traded Fund		1,981,468		—		—		1,981,468
Short-Term Investment
Repurchase Agreement		—		124,361		—		124,361
Total Investments in Securities	$	366,621,059	$	124,361	$	—	$	366,745,420

Liability Valuation Inputs

	Quoted
	Prices in
	Active			Significant
	Markets for			Other		Significant
	Identical			Observable		Unobservable
	Assets			Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Investments Sold Short (a)
Common Stocks Sold Short	$	(94,179,661	)	$	—	$	—	$	(94,179,661	)
Total Investments Sold Short	$	(94,179,661	)	$	—	$	—	$	(94,179,661	)

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities before investments sold short, at value (identified cost $314,834,573)	$	366,745,420
Cash collateral on deposit at broker		487
Receivables:
Dividends and interest		322,091
Investment securities sold		13,444
Fund shares sold		9,173
Other assets		89,368
Total assets		367,179,983
Liabilities
Investments sold short (proceeds $83,828,215)		94,179,661
Payables:
Manager (See Note 3)		221,929
Professional fees		43,843
Dividends on investments sold short		18,391
Shareholder communication		17,619
Investment securities purchased		10,857
Custodian		2,487
Transfer agent (See Note 3)		1,912
Trustees		1,612
NYLIFE Distributors (See Note 3)		431
Accrued expenses		1,044
Total liabilities		94,499,786
Net assets	$	272,680,197
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) 800 million shares authorized	$	32,093
Additional paid-in capital		210,562,398
		210,594,491
Undistributed net investment income		216,104
Accumulated net realized gain (loss) on investments and investments sold short		20,310,201
Net unrealized appreciation (depreciation) on investments		51,910,847
Net unrealized appreciation (depreciation) on investments sold short		(10,351,446	)
Net assets	$	272,680,197
Investor Class
Net assets applicable to outstanding shares	$	137,138
Shares of beneficial interest outstanding		16,228
Net asset value per share outstanding	$	8.45
Maximum sales charge (5.50% of offering price)		0.49
Maximum offering price per share outstanding	$	8.94
Class A
Net assets applicable to outstanding shares	$	303,602
Shares of beneficial interest outstanding		35,801
Net asset value per share outstanding	$	8.48
Maximum sales charge (5.50% of offering price)		0.49
Maximum offering price per share outstanding	$	8.97
Class C
Net assets applicable to outstanding shares	$	435,169
Shares of beneficial interest outstanding		52,863
Net asset value and offering price per share outstanding	$	8.23
Class I
Net assets applicable to outstanding shares	$	271,804,288
Shares of beneficial interest outstanding		31,988,244
Net asset value and offering price per share outstanding	$	8.50

22    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends	$	3,904,096
Interest		57
Total income		3,904,153
Expenses
Manager (See Note 3)		1,559,518
Broker fees and charges on short sales		674,511
Dividends on investments sold short		461,136
Professional fees		45,507
Registration		35,838
Shareholder communication		25,484
Custodian		19,811
Transfer agent (See Note 3)		5,991
Trustees		5,189
Distribution/Service—Investor Class (See Note 3)		137
Distribution/Service—Class A (See Note 3)		288
Distribution/Service—Class C (See Note 3)		1,974
Miscellaneous		8,211
Total expenses		2,843,595
Net investment income (loss)		1,060,558
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Security transactions		59,782,726
Investments sold short		(17,068,756	)
Net realized gain (loss) on investments and investments sold short		42,713,970
Net change in unrealized appreciation (depreciation) on:
Investments		9,682,414
Investments sold short		(4,743,304	)
Net change in unrealized appreciation (depreciation) on investments and investments sold short		4,939,110
Net realized and unrealized gain (loss) on investments and investments sold short		47,653,080
Net increase (decrease) in net assets resulting from operations	$	48,713,638

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    23

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,060,558		$	908,053
Net realized gain (loss) on investments and investments sold short		42,713,970			14,035,513
Net change in unrealized appreciation (depreciation) on investments and investments sold short		4,939,110			20,613,931
Net increase (decrease) in net assets resulting from operations		48,713,638			35,557,497
Dividends to shareholders:
From net investment income:
Investor Class		(25	)		(65	)
Class A		(220	)		(320	)
Class C		(101	)		—
Class I		(1,166,377	)		(1,164,352	)
Total dividends to shareholders		(1,166,723	)		(1,164,737	)
Capital share transactions:
Net proceeds from sale of shares		29,803,451			144,763,911
Net asset value of shares issued to shareholders in reinvestment of dividends		1,166,596			1,084,477
Cost of shares redeemed		(141,423,325	)		(35,060,774	)
Increase (decrease) in net assets derived from capital share transactions		(110,453,278	)		110,787,614
Net increase (decrease) in net assets		(62,906,363	)		145,180,374
Net Assets
Beginning of period		335,586,560			190,406,186
End of period	$	272,680,197		$	335,586,560
Undistributed net investment income at end of period	$	216,104		$	322,269

24    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Cash Flows

for the six months ended April 30, 2011 (unaudited)

Cash flows used in operating activities:
Net increase in net assets resulting from operations	$	48,713,638
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
Investments purchased		(208,274,433	)
Investments sold		359,178,061
Purchases to cover securities sold short		(120,608,317	)
Securities sold short		79,471,727
Purchase of short term investments, net		717,827
Decrease in investment securities sold receivable		2,196,076
Decrease in dividends and interest receivable		37,104
Increase in cash collateral on deposit at broker		(14	)
Increase in other assets		(63,131	)
Decrease in investment securities purchased payable		(2,167,139	)
Decrease in dividends payable for securities sold short		(29,116	)
Increase in professional fees payable		19,463
Decrease in custodian payable		(849	)
Decrease in shareholder communication payable		(4,474	)
Increase in due to Trustees		960
Decrease in due to manager		(57,444	)
Decrease in due to transfer agent		(59	)
Increase in due to NYLIFE Distributors		124
Decrease in accrued expenses and other liabilities		(1,172	)
Net change in unrealized (appreciation) depreciation on investments		(9,682,414	)
Net realized gain from investments		(59,782,726	)
Net change in unrealized (appreciation) depreciation on securities sold short		4,743,304
Net realized loss from securities sold short		17,068,756
Net cash provided by operating activities		111,475,752
Cash flows from financing activities:
Proceeds from shares sold		29,967,841
Payment on shares redeemed		(141,443,466	)
Cash distributions paid		(127	)
Net cash used in financing activities		(111,475,752	)
Net increase (decrease) in cash:		—
Cash at beginning of period		—
Cash at end of period	$	—

Non cash financing activities not included herein consist of all reinvestment of dividends and distributions of $1,166,596.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    25

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	7.28		$	6.40		$	6.00		$	8.68
Net investment income (loss) (a)		0.01			(0.01	)		0.02			(0.02	)
Net realized and unrealized gain (loss) on investments		1.16			0.90			0.38			(2.66	)
Total from investment operations		1.17			0.89			0.40			(2.68	)
Less dividends:
From net investment income		(0.00	)‡		(0.01	)		—			—
Net asset value at end of period	$	8.45		$	7.28		$	6.40		$	6.00
Total investment return (b)		16.10	%(c)		13.88	%		6.67	%(d)		(30.76	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.15	%††		(0.16	%)		0.38	%		(0.37	%)††
Net expenses (excluding short sale expenses)		1.56	%††		1.58	%		1.60	%		1.59	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		2.28	%††		2.50	%		2.57	%		2.59	% ††
Short sale expenses		0.72	%††		0.92	%		0.87	%		0.82	% ††
Portfolio turnover rate		49	%		117	%		163	%		244	%
Net assets at end of period (in 000’s)	$	137		$	81		$	53		$	41

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

26    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	7.31		$	6.41		$	6.00		$	9.64		$	10.00
Net investment income (loss) (a)		0.02			0.00	‡		0.05			(0.02	)		(0.00	)‡
Net realized and unrealized gain (loss) on investments		1.16			0.92			0.37			(3.61	)		(0.36	)
Total from investment operations		1.18			0.92			0.42			(3.63	)		(0.36	)
Less dividends:
From net investment income		(0.01	)		(0.02	)		(0.01	)		(0.01	)		—
Net asset value at end of period	$	8.48		$	7.31		$	6.41		$	6.00		$	9.64
Total investment return (b)		16.13	%(c)		14.31	%		6.77	%		(37.57	%)		(3.60	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.40	%††		0.07	%		0.83	%		(0.20	%)		(0.14	%)††
Net expenses (excluding short sales expenses)		1.34	%††		1.34	%		1.46	%		1.50	%		1.50	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		2.07	%††		2.29	%		2.40	%		2.60	%		2.90	% ††
Short sale expenses		0.73	%††		0.95	%		0.94	%		0.85	%		0.53	% ††
Portfolio turnover rate		49	%		117	%		163	%		244	%		59	%
Net assets at end of period (in 000’s)	$	304		$	229		$	138		$	390		$	356

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    27

Financial Highlights selected per share data and ratios

	Class C
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	7.12		$	6.30		$	5.95		$	9.61		$	10.00
Net investment income (loss) (a)		(0.02	)		(0.06	)		(0.02	)		(0.09	)		(0.03	)
Net realized and unrealized gain (loss) on investments		1.13			0.88			0.37			(3.57	)		(0.36	)
Total from investment operations		1.11			0.82			0.35			(3.66	)		(0.39	)
Less dividends:
From net investment income		(0.00	)‡		—			—			—			—
Net asset value at end of period	$	8.23		$	7.12		$	6.30		$	5.95		$	9.61
Total investment return (b)		15.62	%(c)		13.02	%		5.88	%		(38.15	%)		(3.80	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.57	%)††		(0.87	%)		(0.41	%)		(1.12	%)		(0.86	%)††
Net expenses (excluding short sale expenses)		2.30	% ††		2.34	%		2.35	%		2.33	%		2.25	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		3.02	% ††		3.23	%		3.31	%		3.41	%		3.65	% ††
Short sale expenses		0.72	% ††		0.89	%		0.86	%		0.81	%		0.53	% ††
Portfolio turnover rate		49	%		117	%		163	%		244	%		59	%
Net assets at end of period (in 000’s)	$	435		$	289		$	370		$	228		$	35

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

28    MainStay 130/30 Core Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

								��
	Class I
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	7.33		$	6.43		$	6.02		$	9.65		$	10.00
Net investment income (loss) (a)		0.03			0.02			0.04			0.01			0.01
Net realized and unrealized gain (loss) on investments		1.17			0.91			0.38			(3.62	)		(0.36	)
Total from investment operations		1.20			0.93			0.42			(3.61	)		(0.35	)
Less dividends:
From net investment income		(0.03	)		(0.03	)		(0.01	)		(0.02	)		—
Net asset value at end of period	$	8.50		$	7.33		$	6.43		$	6.02		$	9.65
Total investment return (b)		16.36	%(c)		14.53	%		7.05	%		(37.48	%)		(3.50	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.68	%††		0.33	%		0.69	%		0.07	%		0.27	% ††
Net expenses (excluding short sale expenses)		1.09	%††		1.09	%		1.22	%		1.25	%		1.25	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		1.82	%††		2.01	%		2.08	%		2.16	%		2.52	% ††
Short sale expenses		0.73	%††		0.92	%		0.86	%		0.81	%		0.53	% ††
Portfolio turnover rate		49	%		117	%		163	%		244	%		59	%
Net assets at end of period (in 000’s)	$	271,804		$	334,987		$	189,845		$	84,861		$	24,123

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    29

MainStay 130/30 Growth Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(6/29/07)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		6	.11%		7	.98%		–3	.99%		2	.71%
		Excluding sales charges		12	.28		14	.27		–2	.57		2	.71
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		6	.12		7	.86		–4	.02		2	.57
		Excluding sales charges		12	.30		14	.14		–2	.60		2	.57
Class C Shares	Maximum 1% CDSC	With sales charges		10	.85		12	.44		–3	.33		3	.47
	if Redeemed Within One Year of Purchase	Excluding sales charges		11	.85		13	.44		–3	.33		3	.47
Class I Shares	No Sales Charge			12	.52		14	.77		–2	.23		2	.36

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operation Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

30    MainStay 130/30 Growth Fund

	Six			One			Since
Benchmark Performance	Months			Year			Inception
Russell 1000® Growth Index4		16	.96%		20	.87%		2	.93%
Average Lipper Long/Short Equity Fund5		7	.42		8	.22		–1	.21

4.

The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values. Total returns assume reinvestment of all dividends and capital gains. The Russell 1000® Growth Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.

5.

The average Lipper long/short equity fund is representative of funds that employ portfolio strategies combining long holdings of equities with short sales of equity, equity options, or equity index options. The funds may be either net long or net short, depending on the portfolio manager’s view of the market. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    31

Cost in Dollars of a $1,000 Investment in MainStay 130/30 Growth Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,122.80	$	12.11	$	1,013.40	$	11.48
Class A Shares	$	1,000.00	$	1,123.00	$	11.95	$	1,013.50	$	11.33
Class C Shares	$	1,000.00	$	1,118.50	$	16.07	$	1,009.60	$	15.25
Class I Shares	$	1,000.00	$	1,125.20	$	10.64	$	1,014.80	$	10.09

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (2.30% for Investor Class, 2.27% for Class A, 3.06% for Class C and 2.02% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

32    MainStay 130/30 Growth Fund

Industry Composition as of April 30, 2011 (Unaudited)

Software	11.2	%
Computers & Peripherals	7.6
Oil, Gas & Consumable Fuels	6.3
Aerospace & Defense	6.0
Energy Equipment & Services	5.8
IT Services	4.8
Machinery	4.5
Health Care Providers & Services	4.2
Hotels, Restaurants & Leisure	4.1
Communications Equipment	4.0
Capital Markets	3.6
Specialty Retail	3.6
Internet & Catalog Retail	3.5
Electrical Equipment	3.4
Semiconductors & Semiconductor Equipment	3.4
Internet Software & Services	3.3
Chemicals	3.1
Life Sciences Tools & Services	2.8
Health Care Equipment & Supplies	2.7
Biotechnology	2.5
Exchange Traded Fund	2.5
Beverages	2.4
Metals & Mining	2.4
Consumer Finance	2.3
Food & Staples Retailing	2.3
Diversified Financial Services	2.1
Paper & Forest Products	2.0
Road & Rail	1.5
Industrial Conglomerates	1.4
Wireless Telecommunication Services	1.4
Health Care Technology	1.3
Household Durables	1.3
Textiles, Apparel & Luxury Goods	1.3
Food Products	1.2
Household Products	1.2
Multiline Retail	1.2
Media	1.1
Pharmaceuticals	1.1
Building Products	1.0
Commercial Banks	1.0
Thrifts & Mortgage Finance	0.9
Construction & Engineering	0.8
Personal Products	0.8
Professional Services	0.8
Diversified Consumer Services	0.5
Short-Term Investment	2.1
Other Assets, Less Liabilities	–0.3
Investments Sold Short	–28.0
	100.0	%

See Portfolio of Investments beginning on page 35 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1	Apple, Inc.
2	Oracle Corp.
3	Google, Inc. Class A
4	QUALCOMM, Inc.
5	Schlumberger, Ltd.
6	United Technologies Corp.
7	iShares Russell 1000 Growth Index Fund
8	PepsiCo., Inc.
9	Cognizant Technology Solutions Corp. Class A
10	Danaher Corp.

Top Five Short Positions as of April 30, 2011

1	Canadian Pacific Railway, Ltd.
2	Xilinx, Inc.
3	GlaxoSmithKline PLC, Sponsored ADR
4	Progressive Corp. (The)
5	RR Donnelley & Sons Co.

mainstayinvestments.com    33

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Harish Kumar, PhD, CFA, and Martin J. Mickus, CFA, of Madison Square Investors LLC, the Fund’s Subadvisor.

How did MainStay 130/30 Growth Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay 130/30 Growth Fund returned 12.28% for Investor Class shares, 12.30% for Class A shares and 11.85% for Class C shares for the six months ended April 30, 2011. Over the same period, the Fund’s Class I shares returned 12.52%. All share classes outperformed the 7.42% return of the average Lipper¹ long/short equity fund for the six months ended April 30, 2011. All share classes underperformed the 16.96% return of the Russell 1000^® Growth Index² over the same period. The Russell 1000^® Growth Index is the Fund’s broad-based securities-market index. See page 30 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund underperformed the Russell 1000^® Growth Index during the reporting period primarily because of stock selection in the industrials and consumer discretionary sectors.

During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?

The materials, health care and utilities sectors made the strongest positive contributions to the Fund’s performance relative to the Russell 1000^® Growth Index. (Contributions take weightings and total returns into account.) The Fund’s investments in industrials, consumer discretionary and consumer staples made the weakest contributions to the Fund’s relative performance.

During the reporting period, which individual stocks made the strongest positive contributions to the Fund’s absolute performance and which stocks detracted the most?

The strongest positive contributions to the Fund’s absolute performance came from long positions in computers & periph-erals company Apple and integrated oil company ExxonMobil and from a short position in wireless solutions provider Research in Motion. On the same basis, major detractors from the Fund’s absolute performance included long positions in Internet software & services company Google and pharmaceutical company Abbott Laboratories and a short position in online media and mobile value-added services company SINA.

Did the Fund make any significant purchases or sales during the reporting period?

During the reporting period, we initiated new long positions for the Fund in rehabilitation health care services provider HealthSouth and commercial bank PNC Financial Services Group. Significant new short sales included property and casualty insurer Progressive and freight transportation company Canadian Pacific Railway.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, we increased the Fund’s weightings relative to the Russell 1000^® Growth Index in the industrials and financials sectors. Over the same period, we decreased the Fund’s weightings in the information technology and health care sectors.

How was the Fund positioned at the end of April 2011?

The Fund’s sector positioning is a result of our bottom-up stock selection process rather than a top-down macroeconomic viewpoint. As of April 30, 2011, the Fund was overweight relative to the Russell 1000^® Growth Index in the industrials, health care and materials sectors. On the same date, the Fund held underweight positions relative to the Russell 1000^® Growth Index in the consumer staples, consumer discretionary and financials sectors.

  
1. See footnote on page 31 for more information on Lipper Inc.
2. See footnote on page 31 for more information on the Russell 1000^® Growth Index. Th e opi nion s exp res sed ar et hos e of the p ortf oli o man ager s as of th ed ate o ft his re por t an d are su bje ct to ch ang e. The re is no g uar ante e tha ta ny fo rec ast ma de wi ll com e to pas s. Thi s mat eri al doe s no t con stit ute i nve stm ent ad vic e and is n ot in tend ed as a ne ndo rse men t of any s pec ifi ci nve stm ent .

34    MainStay 130/30 Growth Fund

Portfolio of Investments^†††April 30, 2011 (unaudited)

	Shares		Value
Common Stocks 123.7%†
Aerospace & Defense 6.0%
Curtiss-Wright Corp.		1,760	$	58,520
Goodrich Corp.		509		44,980
Precision Castparts Corp. (a)		643		99,357
X  United Technologies Corp. (a)		1,707		152,913
				355,770
Beverages 2.4%
X  PepsiCo., Inc. (a)		2,089		143,911
Biotechnology 2.5%
Alexion Pharmaceuticals, Inc. (b)		546		52,902
Gilead Sciences, Inc. (a)(b)		2,410		93,604
				146,506
Building Products 1.0%
Simpson Manufacturing Co., Inc.		2,154		60,140
Capital Markets 3.6%
Ameriprise Financial, Inc.		743		46,111
BlackRock, Inc.		258		50,552
Goldman Sachs Group, Inc. (The) (a)		307		46,360
TD Ameritrade Holding Corp.		3,301		71,104
				214,127
Chemicals 3.1%
Eastman Chemical Co.		814		87,301
Praxair, Inc. (a)		893		95,033
				182,334
Commercial Banks 1.0%
PNC Financial Services Group, Inc.		920		57,353
Communications Equipment 4.0%
Juniper Networks, Inc. (a)(b)		1,824		69,914
X  QUALCOMM, Inc. (a)		2,932		166,655
				236,569
Computers & Peripherals 7.6%
X  Apple, Inc. (a)(b)		959		333,953
EMC Corp. (a)(b)		4,031		114,238
				448,191
Construction & Engineering 0.8%
Fluor Corp. (a)		680		47,559
Consumer Finance 2.3%
American Express Co. (a)		1,991		97,718
Capital One Financial Corp.		660		36,122
				133,840
Diversified Consumer Services 0.5%
DeVry, Inc.		598		31,634
Diversified Financial Services 2.1%
CME Group, Inc. (a)		206		60,929
JPMorgan Chase & Co. (a)		1,419		64,749
				125,678
Electrical Equipment 3.4%
Cooper Industries PLC (a)		1,015		66,939
Emerson Electric Co. (a)		1,342		81,540
Rockwell Automation, Inc.		620		54,021
				202,500
Energy Equipment & Services 5.8%
Baker Hughes, Inc. (a)		1,051		81,358
Nabors Industries, Ltd. (b)		1,384		42,406
X  Schlumberger, Ltd. (a)		1,774		159,216
Transocean, Ltd. (a)(b)		821		59,728
				342,708
Food & Staples Retailing 2.3%
Walgreen Co. (a)		1,750		74,760
Whole Foods Market, Inc.		979		61,442
				136,202
Food Products 1.2%
General Mills, Inc.		1,916		73,919
Health Care Equipment & Supplies 2.7%
Covidien PLC		1,569		87,378
Stryker Corp. (a)		1,263		74,517
				161,895
Health Care Providers & Services 4.2%
AmerisourceBergen Corp. (a)		2,210		89,814
Express Scripts, Inc. (a)(b)		1,610		91,352
HEALTHSOUTH Corp. (b)		2,730		69,970
				251,136
Health Care Technology 1.3%
Cerner Corp. (a)(b)		639		76,795
Hotels, Restaurants & Leisure 4.1%
Las Vegas Sands Corp. (b)		1,190		55,942
Starbucks Corp. (a)		2,143		77,555

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    35

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
Hotels, Restaurants & Leisure (continued)
Starwood Hotels & Resorts Worldwide, Inc. (a)		1,035	$	61,655
Wendy’s/Arby’s Group, Inc. Class A		9,452		45,559
				240,711
Household Durables 1.3%
Whirlpool Corp.		870		74,977
Household Products 1.2%
Procter & Gamble Co. (The) (a)		1,123		72,883
Industrial Conglomerates 1.4%
General Electric Co.		4,040		82,618
Internet & Catalog Retail 3.5%
Amazon.com, Inc. (a)(b)		530		104,145
Priceline.com, Inc. (a)(b)		185		101,197
				205,342
Internet Software & Services 3.3%
X  Google, Inc. Class A (a)(b)		361		196,420
IT Services 4.8%
X  Cognizant Technology Solutions Corp. Class A (a)(b)		1,547		128,246
International Business Machines Corp. (a)		500		85,290
Paychex, Inc. (a)		2,086		68,233
				281,769
Life Sciences Tools & Services 2.8%
Agilent Technologies, Inc. (a)(b)		1,705		85,096
Pharmaceutical Product Development, Inc. (a)		2,675		82,524
				167,620
Machinery 4.5%
X  Danaher Corp.		2,314		127,825
Deere & Co.		701		68,348
Flowserve Corp. (a)		541		68,501
				264,674
Media 1.1%
Scripps Networks Interactive Class A		1,292		66,435
Metals & Mining 2.4%
Freeport-McMoRan Copper & Gold, Inc.		1,813		99,770
Newmont Mining Corp. (a)		676		39,620
				139,390
Multiline Retail 1.2%
Macy’s, Inc. (a)		2,942		70,343
Oil, Gas & Consumable Fuels 6.3%
Concho Resources, Inc. (a)(b)		526		56,203
Devon Energy Corp. (a)		463		42,133
EOG Resources, Inc. (a)		527		59,504
Marathon Oil Corp.		1,121		60,579
Occidental Petroleum Corp. (a)		919		105,032
Southwestern Energy Co. (b)		1,091		47,851
				371,302
Paper & Forest Products 2.0%
International Paper Co.		3,909		120,710
Personal Products 0.8%
Estee Lauder Cos., Inc. (The) Class A		488		47,336
Pharmaceuticals 1.1%
Shire PLC, Sponsored ADR (a)(c)		674		62,823
Professional Services 0.8%
Verisk Analytics, Inc. Class A (b)		1,418		46,652
Road & Rail 1.5%
Union Pacific Corp. (a)		887		91,778
Semiconductors & Semiconductor Equipment 3.4%
Applied Materials, Inc.		3,098		48,608
Broadcom Corp. Class A (b)		1,355		47,669
NetLogic Microsystems, Inc. (b)		1,288		55,551
Texas Instruments, Inc.		1,328		47,184
				199,012
Software 11.2%
Autodesk, Inc. (a)(b)		1,644		73,947
Citrix Systems, Inc. (b)		911		76,834
Informatica Corp. (a)(b)		1,361		76,230
Intuit, Inc. (a)(b)		1,461		81,173
Microsoft Corp. (a)		4,446		115,685
X  Oracle Corp. (a)		5,838		210,460
Salesforce.com, Inc. (a)(b)		221		30,630
				664,959
Specialty Retail 3.6%
Dick’s Sporting Goods, Inc. (b)		1,136		46,496
Home Depot, Inc. (The) (a)		2,652		98,495
Lowe’s Cos., Inc.		2,554		67,043
				212,034
Textiles, Apparel & Luxury Goods 1.3%
Coach, Inc. (a)		1,331		79,607

36    MainStay 130/30 Growth Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares			Value
Common Stocks (continued)
Thrifts & Mortgage Finance 0.9%
Brookline Bancorp, Inc. (a)		5,821		$	53,670
Wireless Telecommunication Services 1.4%
American Tower Corp. Class A (a)(b)		1,598			83,591
Total Common Stocks (Cost $6,320,624)					7,325,423
Exchange Traded Fund 2.5% (d)
X  iShares Russell 1000 Growth Index Fund (a)		2,379			148,569
Total Exchange Traded Fund (Cost $142,666)					148,569
	Principal
	Amount
Short-Term Investment 2.1%
Repurchase Agreement 2.1%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $124,148 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $130,000 and a Market Value of $129,999)	$	124,148			124,148
Total Short-Term Investment (Cost $124,148)					124,148
Total Investments, Before Investments Sold Short (Cost $6,587,438) (e)		128.3	%		7,598,140
	Shares
Investments Sold Short (28.0%) Common Stocks Sold Short (28.0%)
Aerospace & Defense (0.3%)
Northrop Grumman Corp.		(287	)		(18,256	)
Air Freight & Logistics (0.7%)
Expeditors International of Washington, Inc.		(377	)		(20,460	)
United Parcel Service, Inc. Class B		(254	)		(19,042	)
					(39,502	)
Airlines (0.2%)
AMR Corp. (b)		(2,250	)		(13,208	)
Auto Components (0.3%)
Autoliv, Inc.		(244	)		(19,552	)
Beverages (0.3%)
Coca-Cola Enterprises, Inc.		(698	)		(19,830	)
Biotechnology (0.3%)
Celgene Corp. (b)		(281	)		(16,545	)
Capital Markets (1.3%)
Bank of New York Mellon Corp. (The)		(935	)		(27,078	)
Eaton Vance Corp.		(589	)		(19,890	)
Federated Investors, Inc. Class B		(672	)		(17,324	)
Janus Capital Group, Inc.		(1,223	)		(14,884	)
					(79,176	)
Chemicals (0.5%)
Calgon Carbon Corp. (b)		(669	)		(11,480	)
Dow Chemical Co. (The)		(448	)		(18,364	)
					(29,844	)
Commercial Services & Supplies (0.9%)
Pitney Bowes, Inc.		(850	)		(20,876	)
RR Donnelley & Sons Co.		(1,690	)		(31,873	)
					(52,749	)
Communications Equipment (0.8%)
F5 Networks, Inc. (b)		(157	)		(15,914	)
Harris Corp.		(319	)		(16,948	)
Research In Motion, Ltd. (b)		(354	)		(17,222	)
					(50,084	)
Construction & Engineering (0.2%)
Shaw Group, Inc. (The) (b)		(311	)		(12,098	)
Construction Materials (0.2%)
Vulcan Materials Co.		(321	)		(14,509	)
Containers & Packaging (0.5%)
Owens-Illinois, Inc. (b)		(392	)		(11,630	)
Temple-Inland, Inc.		(643	)		(15,130	)
					(26,760	)
Diversified Financial Services (0.5%)
Bank of America Corp.		(1,297	)		(15,927	)
MSCI, Inc. Class A (b)		(394	)		(13,975	)
					(29,902	)
Diversified Telecommunication Services (0.7%)
AT&T, Inc.		(481	)		(14,969	)
Telefonica S.A., Sponsored ADR (c)		(367	)		(9,894	)
Verizon Communications, Inc.		(479	)		(18,097	)
					(42,960	)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    37

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares			Value
Common Stocks Sold Short (continued)
Electric Utilities (0.4%)
N.V. Energy, Inc.		(1,372	)	$	(20,841	)
Electrical Equipment (0.9%)
EnerSys (b)		(754	)		(28,569	)
Regal-Beloit Corp.		(332	)		(25,162	)
					(53,731	)
Electronic Equipment & Instruments (0.7%)
AVX Corp.		(1,139	)		(18,577	)
Vishay Intertechnology, Inc. (b)		(1,059	)		(20,206	)
					(38,783	)
Energy Equipment & Services (0.5%)
RPC, Inc.		(995	)		(26,915	)
Food & Staples Retailing (0.3%)
Sysco Corp.		(652	)		(18,849	)
Food Products (0.3%)
Mead Johnson Nutrition Co.		(247	)		(16,519	)
Health Care Equipment & Supplies (0.5%)
Alere, Inc. (b)		(417	)		(15,487	)
Teleflex, Inc.		(267	)		(16,824	)
					(32,311	)
Health Care Technology (0.6%)
Emdeon, Inc. Class A (b)		(902	)		(14,125	)
SXC Health Solutions Corp. (b)		(373	)		(20,575	)
					(34,700	)
Hotels, Restaurants & Leisure (0.9%)
Choice Hotels International, Inc.		(419	)		(15,662	)
International Game Technology		(873	)		(15,443	)
McDonald’s Corp.		(244	)		(19,108	)
					(50,213	)
Household Durables (0.5%)
Lennar Corp. Class A		(809	)		(15,363	)
Toll Brothers, Inc. (b)		(582	)		(12,228	)
					(27,591	)
Insurance (2.8%)
ACE, Ltd.		(295	)		(19,839	)
Aflac, Inc.		(294	)		(16,520	)
Allstate Corp. (The)		(689	)		(23,316	)
Brown & Brown, Inc.		(828	)		(21,404	)
Marsh & McLennan Cos., Inc.		(636	)		(19,258	)
MetLife, Inc.		(326	)		(15,253	)
PartnerRe, Ltd.		(227	)		(18,242	)
Progressive Corp. (The)		(1,508	)		(33,085	)
					(166,917	)
Internet Software & Services (0.6%)
SINA Corp. (b)		(134	)		(18,057	)
Yahoo!, Inc. (b)		(946	)		(16,791	)
					(34,848	)
IT Services (0.6%)
Broadridge Financial Solutions, Inc.		(798	)		(18,546	)
Lender Processing Services, Inc.		(566	)		(16,657	)
					(35,203	)
Life Sciences Tools & Services (0.3%)
Mettler-Toledo International, Inc. (b)		(90	)		(16,866	)
Machinery (0.6%)
Ingersoll-Rand PLC		(352	)		(17,776	)
Navistar International Corp. (b)		(230	)		(15,990	)
					(33,766	)
Media (1.3%)
Discovery Communications, Inc. Class A (b)		(343	)		(15,181	)
Lamar Advertising Co. Class A (b)		(428	)		(13,919	)
Morningstar, Inc.		(271	)		(15,610	)
Omnicom Group, Inc.		(318	)		(15,642	)
Thomson Reuters Corp.		(383	)		(15,500	)
					(75,852	)
Metals & Mining (0.5%)
AK Steel Holding Corp.		(734	)		(11,928	)
Allegheny Technologies, Inc.		(251	)		(18,072	)
					(30,000	)
Multiline Retail (0.6%)
J.C. Penney Co., Inc.		(483	)		(18,571	)
Kohl’s Corp.		(352	)		(18,554	)
					(37,125	)
Oil, Gas & Consumable Fuels (0.2%)
Oasis Petroleum, Inc. (b)		(461	)		(14,167	)
Pharmaceuticals (2.0%)
Abbott Laboratories		(384	)		(19,983	)
GlaxoSmithKline PLC, Sponsored ADR (c)		(770	)		(33,618	)
Johnson & Johnson		(414	)		(27,208	)
Sanofi-Aventis S.A., ADR (c)		(408	)		(16,124	)
Teva Pharmaceutical Industries, Ltd., Sponsored ADR (c)		(524	)		(23,963	)
					(120,896	)
Professional Services (0.3%)
Dun & Bradstreet Corp.		(216	)		(17,751	)

38    MainStay 130/30 Growth Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares			Value
Common Stocks Sold Short (continued)
Real Estate Investment Trusts (1.3%)
Equity Residential		(336	)	$	(20,066	)
Rayonier, Inc.		(297	)		(19,709	)
Simon Property Group, Inc.		(145	)		(16,608	)
UDR, Inc.		(719	)		(18,615	)
					(74,998	)
Real Estate Management & Development (0.3%)
Jones Lang LaSalle, Inc.		(152	)		(15,562	)
Road & Rail (0.6%)
Canadian Pacific Railway, Ltd.		(536	)		(35,505	)
Semiconductors & Semiconductor Equipment (1.8%)
Advanced Micro Devices, Inc. (b)		(1,354	)		(12,321	)
Analog Devices, Inc.		(625	)		(25,194	)
Hittite Microwave Corp. (b)		(208	)		(13,393	)
Microchip Technology, Inc.		(482	)		(19,781	)
Xilinx, Inc.		(1,002	)		(34,930	)
					(105,619	)
Specialty Retail (0.6%)
Best Buy Co., Inc.		(562	)		(17,546	)
Gap, Inc. (The)		(798	)		(18,545	)
					(36,091	)
Textiles, Apparel & Luxury Goods (0.3%)
Phillips-Van Heusen Corp.		(291	)		(20,489	)
Total Investments Sold Short (Proceeds $1,540,640)		(28.0	)%		(1,657,083	)
Total Investments, Net of Investments Sold Short (Cost $5,046,798)		100.3			5,941,057
Other Assets, Less Liabilities		(0.3	)		(18,274	)
Net Assets		100.0	%	$	5,922,783

†††	On a daily basis New York Life Investments confirms that the value of the Fund’s liquid assets (liquid portfolio securities and cash) is sufficient to cover its potential senior securities (e.g., futures, swaps, options).
(a)	Security, or a portion thereof, is maintained in a segregated account at the Fund’s custodian as collateral for securities sold short (See Note 2(I)).
(b)	Non-income producing security.
(c)	ADR—American Depositary Receipt.
(d)	Exchange Traded Fund—An investment vehicle that represents a basket of securities that is traded on an exchange.
(e)	At April 30, 2011, cost is $6,759,359 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	1,075,312
Gross unrealized depreciation		(236,531	)
Net unrealized appreciation	$	838,781

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    39

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets and liabilities.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	7,325,423	$	—	$	—	$	7,325,423
Exchange Traded Funds		148,569		—		—		148,569
Short-Term Investment
Repurchase Agreement		—		124,148		—		124,148
Total Investments in Securities	$	7,473,992	$	124,148	$	—	$	7,598,140

Liability Valuation Inputs

	Quoted
	Prices in
	Active			Significant
	Markets for			Other		Significant
	Identical			Observable		Unobservable
	Assets			Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Investments in Securities Sold Short (a)
Common Stocks Sold Short	$	(1,657,083	)	$	—	$	—	$	(1,657,083	)
Total Investments in Securities Sold Short	$	(1,657,083	)	$	—	$	—	$	(1,657,083	)

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

40    MainStay 130/30 Growth Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities before investments sold short, at value (identified cost $6,587,438)	$	7,598,140
Receivables:
Fund shares sold		8,200
Dividends and interest		6,075
Manager (See Note 3)		5,667
Other assets		36,093
Total assets		7,654,175
Liabilities
Investments sold short (proceeds $1,540,640)		1,657,083
Cash collateral due to broker		953
Payables:
Professional fees		22,174
Fund shares redeemed		16,195
Broker fees and charges on short sales		14,682
Shareholder communication		11,012
Dividends on investments sold short		2,491
Custodian		2,476
Transfer agent (See Note 3)		1,866
Trustees		377
NYLIFE Distributors (See Note 3)		324
Accrued expenses		1,759
Total liabilities		1,731,392
Net assets	$	5,922,783
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	648
Additional paid-in capital		6,580,558
		6,581,206
Net investment loss		(28,483	)
Accumulated net realized gain (loss) on investments, investments sold short, futures transactions and foreign currency transactions		(1,524,199	)
Net unrealized appreciation (depreciation) on investments		1,010,702
Net unrealized appreciation (depreciation) on investments sold short		(116,443	)
Net assets	$	5,922,783
Investor Class
Net assets applicable to outstanding shares	$	185,937
Shares of beneficial interest outstanding		20,549
Net asset value per share outstanding	$	9.05
Maximum sales charge (5.50% of offering price)		0.53
Maximum offering price per share outstanding	$	9.58
Class A
Net assets applicable to outstanding shares	$	328,614
Shares of beneficial interest outstanding		36,336
Net asset value per share outstanding	$	9.04
Maximum sales charge (5.50% of offering price)		0.53
Maximum offering price per share outstanding	$	9.57
Class C
Net assets applicable to outstanding shares	$	252,720
Shares of beneficial interest outstanding		28,786
Net asset value and offering price per share outstanding	$	8.78
Class I
Net assets applicable to outstanding shares	$	5,155,512
Shares of beneficial interest outstanding		562,046
Net asset value and offering price per share outstanding	$	9.17

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    41

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	48,175
Interest		6
Total income		48,181
Expenses
Manager (See Note 3)		37,136
Registration		31,944
Professional fees		21,425
Dividends on investments sold short		16,012
Broker fees and charges on short sales		12,424
Custodian		8,984
Shareholder communication		6,038
Transfer agent (See Note 3)		5,830
Distribution/Service—Investor Class (See Note 3)		199
Distribution/Service—Class A (See Note 3)		510
Distribution/Service—Class C (See Note 3)		1,047
Trustees		44
Miscellaneous		3,397
Total expenses before waiver/reimbursement		144,990
Expense waiver/reimbursement from Manager (See Note 3)		(68,326	)
Net expenses		76,664
Net investment income (loss)		(28,483	)
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions		1,541,930
Futures transactions		6,187
Investments sold short		(372,971	)
Foreign currency transactions		(5	)
Net realized gain (loss) on investments, investments sold short, futures transactions and foreign currency transactions		1,175,141
Net change in unrealized appreciation (depreciation) on:
Investments		(209,145	)
Investments sold short		913
Net change in unrealized appreciation (depreciation) on investments and investments sold short		(208,232	)
Net realized and unrealized gain (loss) on investments, futures transactions, investments sold short and foreign currency transactions		966,909
Net increase (decrease) in net assets resulting from operations	$	938,426

(a)  Dividends recorded net of foreign withholding taxes in the amount of $25.

42    MainStay 130/30 Growth Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(28,483	)	$	(163,332	)
Net realized gain (loss) on investments, futures transactions, investments sold short and foreign currency transactions		1,175,141			11,721,801
Net change in unrealized appreciation (depreciation) on investments and investments sold short		(208,232	)		(8,192,222	)
Net increase (decrease) in net assets resulting from operations		938,426			3,366,247
Capital share transactions:
Net proceeds from sale of shares		2,533,363			2,728,141
Cost of shares redeemed		(6,838,144	)		(62,868,708	)
Increase (decrease) in net assets derived from capital share transactions		(4,304,781	)		(60,140,567	)
Net increase (decrease) in net assets		(3,366,355	)		(56,774,320	)
Net Assets
Beginning of period		9,289,138			66,063,458
End of period	$	5,922,783		$	9,289,138
Net investment loss at end of period	$	(28,483	)	$	—

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    43

Statement of Cash Flows

for the six months ended April 30, 2011 (unaudited)

Cash flows used in operating activities:
Net increase in net assets resulting from operations	$	938,426
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
Investments purchased		(7,724,027	)
Investments sold		12,898,801
Purchases to cover securities sold short		(4,614,887	)
Securities sold short		3,762,257
Sell of short term investments, net		9,533
Decrease in investment securities sold receivable		44,077
Decrease in dividends and interest receivable		1,277
Increase in manager receivable		(5,667	)
Decrease in cash collateral on deposit at broker		1,957
Increase in other assets		(11,033	)
Decrease in investment securities purchased payable		(40,414	)
Decrease in broker fees and charges payable on short sales		(1,956	)
Increase in dividends payable for securities sold short		1,156
Increase in cash collateral due to broker		953
Increase in professional fees payable		11,520
Increase in custodian payable		565
Increase in shareholder communication payable		3,921
Decrease in due to Trustees		(54	)
Decrease in due to manager		(738	)
Decrease in due to transfer agent		(83	)
Increase in due to NYLIFE Distributors		66
Increase in accrued expenses		55
Net change in unrealized (appreciation) depreciation on investments		209,145
Net realized gain from investments		(1,541,930	)
Net change in unrealized (appreciation) depreciation on securities sold short		(913	)
Net realized loss from securities sold short		372,971
Net cash provided by operating activities		4,314,978
Cash flows from financing activities:
Proceeds from shares sold		2,527,955
Payment on shares redeemed		(6,842,933	)
Net cash used in financing activities		(4,314,978	)
Net increase (decrease) in cash:		—
Cash at beginning of period		—
Cash at end of period	$	—

44    MainStay 130/30 Growth Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.06		$	7.42		$	6.69		$	9.68
Net investment income (loss) (a)		(0.04	)		(0.07	)		(0.02	)		(0.07	)
Net realized and unrealized gain (loss) on investments		1.03			0.71			0.75			(2.92	)
Total from investment operations		0.99			0.64			0.73			(2.99	)
Net asset value at end of period	$	9.05		$	8.06		$	7.42		$	6.69
Total investment return (b)		12.28	% (c)		8.63	%		10.91	%		(30.89	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(1.02	%)††		(0.97	%)		(0.33	%)		(1.20	%)††
Net expenses (excluding short sale expenses)		1.55	% ††		1.60	%		1.60	%		1.60	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		4.14	% ††		2.70	%		2.58	%		2.73	% ††
Short sale expenses		0.75	% ††		0.75	%		0.79	%		0.69	% ††
Portfolio turnover rate		82	%		167	%		203	%		311	%
Net assets at end of period (in 000’s)	$	186		$	128		$	93		$	60

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

	Class A
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	8.05		$	7.42		$	6.68		$	10.63		$	10.00
Net investment income (loss) (a)		(0.04	)		(0.07	)		(0.00	)‡		(0.10	)		(0.03	)
Net realized and unrealized gain (loss) on investments		1.03			0.70			0.74			(3.85	)		0.66
Total from investment operations		0.99			0.63			0.74			(3.95	)		0.63
Net asset value at end of period	$	9.04		$	8.05		$	7.42		$	6.68		$	10.63
Total investment return (b)		12.30	% (c)		8.49	%		11.08	%		(37.16	%)		6.40	% (c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.98	%)††		(0.92	%)		(0.06	%)		(1.09	%)		(0.91	%)††
Net expenses (excluding short sales expenses)		1.50	% ††		1.50	%		1.50	%		1.50	%		1.50	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		4.11	% ††		2.56	%		2.30	%		2.77	%		3.68	% ††
Short sale expenses		0.77	% ††		0.75	%		0.79	%		0.70	%		0.47	% ††
Portfolio turnover rate		82	%		167	%		203	%		311	%		137	%
Net assets at end of period (in 000’s)	$	329		$	370		$	166		$	239		$	477

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    45

Financial Highlights selected per share data and ratios

	Class C
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	7.85		$	7.28		$	6.61		$	10.61		$	10.00
Net investment income (loss) (a)		(0.07	)		(0.13	)		(0.06	)		(0.17	)		(0.05	)
Net realized and unrealized gain (loss) on investments		1.00			0.70			0.73			(3.83	)		0.66
Total from investment operations		0.93			0.57			0.67			(4.00	)		0.61
Net asset value at end of period	$	8.78		$	7.85		$	7.28		$	6.61		$	10.61
Total investment return (b)		11.85	% (c)		7.83	%		10.14	% (d)		(37.70	%)		6.10	% (c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(1.77	%)††		(1.72	%)		(0.96	%)		(1.88	%)		(1.54	%)††
Net expenses (excluding short sale expenses)		2.30	% ††		2.35	%		2.35	%		2.32	%		2.25	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		4.90	% ††		3.46	%		3.32	%		3.56	%		4.43	% ††
Short sale expenses		0.76	% ††		0.77	%		0.79	%		0.69	%		0.47	% ††
Portfolio turnover rate		82	%		167	%		203	%		311	%		137	%
Net assets at end of period (in 000’s)	$	253		$	180		$	172		$	165		$	71

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

	Class I
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	8.15		$	7.47		$	6.71		$	10.65		$	10.00
Net investment income (loss) (a)		(0.03	)		(0.05	)		(0.01	)		(0.07	)		(0.02	)
Net realized and unrealized gain (loss) on investments		1.05			0.73			0.77			(3.87	)		0.67
Total from investment operations		1.02			0.68			0.76			(3.94	)		0.65
Net asset value at end of period	$	9.17		$	8.15		$	7.47		$	6.71		$	10.65
Total investment return (b)		12.52	% (c)		9.10	%(d)		11.33	% (d)		(37.00	%)		6.50	% (c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.72	%)††		(0.58	%)		(0.08	%)		(0.73	%)		(0.56	%)††
Net expenses (excluding short sale expenses)		1.25	% ††		1.25	%		1.25	%		1.25	%		1.25	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		3.86	% ††		2.35	%		2.05	%		2.28	%		3.38	% ††
Short sale expenses		0.77	% ††		0.79	%		0.79	%		0.65	%		0.47	% ††
Portfolio turnover rate		82	%		167	%		203	%		311	%		137	%
Net assets at end of period (in 000’s)	$	5,156		$	8,611		$	65,632		$	46,311		$	18,320

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

46    MainStay 130/30 Growth Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

MainStay 130/30 International Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(9/28/07)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		8	.79%		16	.91%		–7	.52%		3	.08%
		Excluding sales charges		15	.12		23	.71		–6	.05		3	.08
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		9	.03		17	.16		–7	.45		2	.89
		Excluding sales charges		15	.38		23	.98		–5	.98		2	.89
Class C Shares	Maximum 1% CDSC	With sales charges		13	.63		21	.76		–6	.83		3	.83
	If Redeemed Within One Year of Purchase	Excluding sales charges		14	.63		22	.76		–6	.83		3	.83
Class I Shares	No Sales Charge			15	.39		24	.15		–5	.80		2	.67

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expenses ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    47

	Six			One
Benchmark Performance	Months			Year			Since Inception
MSCI EAFE Index4		12	.71%		19	.18%		–3	.96%
Average Lipper Long/Short Equity Fund5		7	.42		8	.22		–1	.82%

4.

The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE® Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. The MSCI EAFE® Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an Index.

5.

The average Lipper long/short equity fund is representative of funds that employ portfolio strategies combining long holdings of equities with short sales of equity, equity options, or equity index options. The funds may be either net long or net short, depending on the portfolio manager’s view of the market. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

48    MainStay 130/30 International Fund

Cost in Dollars of a $1,000 Investment in MainStay 130/30 International Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,151.20	$	14.72	$	1,011.10	$	13.76
Class A Shares	$	1,000.00	$	1,153.80	$	14.31	$	1,011.50	$	13.37
Class C Shares	$	1,000.00	$	1,146.30	$	18.73	$	1,007.30	$	17.52
Class I Shares	$	1,000.00	$	1,153.90	$	12.87	$	1,012.80	$	12.03

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (2.76% for Investor Class, 2.68% for Class A, 3.52% for Class C and 2.41% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    49

Portfolio Composition as of April 30, 2011 (Unaudited)

Common Stocks	128.6
Exchange Traded Fund		4.60
Other Assets, Less Liabilities		0.70
Preferred Stocks		0.60
Short-Term Investment		0.10
Convertible Preferred Stock		0.00
Warrants		0.00
Investments Sold Short		(34.60	)

See Portfolio of Investments beginning on page 53 for specific holdings within these categories.

‡  Less than one-tenth of a percent.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	iShares MSCI Emerging Markets Index Fund
2.	Nestle S.A. Registered
3.	Vodafone Group PLC
4.	Total S.A.
5.	Rio Tinto PLC
6.	BASF S.E.
7.	Roche Holding A.G., Genusscheine
8.	Sanofi-Aventis
9.	BHP Billiton, Ltd.
10.	Royal Dutch Shell PLC Class A

Top Five Short Positions as of April 30, 2011

1.	iShares MSCI EAFE Index Fund
2.	Imagination Technologies Group PLC
3.	OSAKA Titanium Technologies Co.
4.	Asahi Diamond Industrial Co., Ltd.
5.	Geely Automobile Holdings, Ltd.

50    MainStay 130/30 International Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio manager Andrew Ver Planck of Madison Square Investors LLC, the Fund’s Subadvisor.

How did MainStay 130/30 International Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay 130/30 International Fund returned 15.12% for Investor Class shares, 15.38% for Class A shares and 14.63% for Class C shares for the six months ended April 30, 2011. Over the same period, the Fund’s Class I shares returned 15.39%. All share classes outperformed the 7.42% return of the average Lipper¹ long/short equity fund and the 12.71% return of the MSCI EAFE^® Index² for the six months ended April 30, 2011. The MSCI EAFE^® Index is the Fund’s broad-based securities-market index. See page 47 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund outperformed the MSCI EAFE^® Index during the reporting period primarily because of effective stock selection in longs and shorts alike, especially in smaller-capitalization European equities that are not components of the MSCI EAFE^® Index. In light of Japan’s earthquake- and tsunami-related difficulties, the Fund also benefited from having an underweight position in Japan during the reporting period.

During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?

During the reporting period, the sectors that made the strongest positive contributions to the Fund’s performance relative to the MSCI EAFE^® Index were energy, financials and health care. (Contributions take weightings and total returns into account.) Industrials, information technology and consumer discretionary made the weakest contributions to the Fund’s relative performance.

Which regions were the strongest positive contributors to the Fund’s relative performance and which regions were particularly weak?

The regions that made the strongest positive contributions to the Fund’s performance relative to the MSCI EAFE^® Index were Norway, Japan and Germany. The regions that detracted the most from the Fund’s performance relative to the MSCI EAFE^® Index were Switzerland, Australia and the United Kingdom.

Did events in Japan affect the Fund’s performance during the reporting period?

Fortunately, the Fund did not hold a position in Tokyo Electric Power Company (TEPCO) during the reporting period. TEPCO was severely affected by the events following the earthquake off the coast of Sendai, Japan, in March. From March 15 through April 30, TEPCO’s stock declined approximately 80%. Because the Fund maintained an underweight position in Japan, however, the net impact of the earthquake on the Fund’s performance was less than it might have been had the Fund been fully-weighted relative to the MSCI EAFE^® Index.

During the reporting period, which individual Fund holdings made the strongest positive contributions to the Fund’s absolute performance and which holdings detracted the most?

The individual holdings that made the strongest positive contributions to the Fund’s absolute performance were a long position in German solar-power developer Solarworld, a long position in Swiss insurer Swiss Life Holding and a short position in Australian biotechnology company Intercell. Major detractors included short positions in Sky Deutschland, a pay television provider in Germany; Osaka Titanium Technologies, a nonferrous metals producer in Japan; and OC Oerlikon, an industrial equipment manufacturer headquartered in Switzerland.

Did the Fund make any significant purchases or sales during the reporting period?

In early November 2010, we initiated a significant long position in Schneider Electric, a French manufacturer of electrical equip-ment. In January 2011, we established a new long position in Origin Energy, an Australian oil, gas & consumable fuels company.

In early November 2010, we significantly reduced the Fund’s long positions in U.K. pharmaceuticals company GlaxoSmithKline and French energy company Total. We moved to underweight positions relative to the MSCI EAFE^® Index in both stocks. At the same time, the Fund sold its long position in Swiss financial services company Credit Suisse Group. In December 2010, we eliminated the Fund’s short position in Switzerland-based health care equipment & supplies company Nobel Biocare.

How did the Fund’s sector and country weightings change relative to the MSCI EAFE^® Index during the reporting period?

During the reporting period, the Fund’s most significant sector-weighting increases relative to the MSCI EAFE^® Index were in energy and health care. Over the same period, the Fund’s most significant sector-weighting decrease relative to the benchmark was in consumer discretionary.

From a country perspective, the Fund’s most significant weighting increases relative to the MSCI EAFE^® Index during the reporting period were in Norway, Sweden and France. Over the same period, the Fund’s relative regional weightings decreased most in Germany, Spain and Australia.

  
1. See footnote on page 48 for more information on Lipper Inc.
2. See footnote on page 48 for more information on the MSCI EAFE^® Index.

mainstayinvestments.com    51

How was the Fund positioned at the end of April 2011?

The Fund’s sector and regional positioning is a result of our bottom-up stock selection process rather than a top-down macroeconomic viewpoint. As of April 30, 2011, the Fund held overweight positions relative to the MSCI EAFE^® Index in the energy, materials and telecommunication services sectors. As of the same date, the Fund was underweight relative to the MSCI EAFE^® Index in consumer staples, information technology and utilities.

From a regional perspective, the Fund held overweight positions relative to the MSCI EAFE^® Index in France, Finland and Norway as of April 30, 2011. On the same date, the Fund was under-weight relative to the MSCI EAFE^® Index in Japan, Spain, the United Kingdom and Singapore.

The opinions expressed are those of the portfolio manager as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

52    MainStay 130/30 International Fund

Portfolio of Investments^†††April 30, 2011 (unaudited)

	Shares		Value
Common Stocks 128.6%†
Australia 13.0%
ASX, Ltd. (Diversified Financial Services) (a)		9,624	$	338,618
Ausdrill, Ltd. (Metals & Mining)		128,461		473,108
Australia & New Zealand Banking Group, Ltd. (Commercial Banks) (a)		68,184		1,810,864
Beach Petroleum, Ltd. (Oil, Gas & Consumable Fuels)		414,679		436,348
BGP Holdings PLC (Diversified Financial Services) (b)(c)		106,339		12
X  BHP Billiton, Ltd. (Metals & Mining) (a)		43,686		2,194,533
Caltex Australia, Ltd. (Oil, Gas & Consumable Fuels) (a)		65,033		1,011,501
Challenger, Ltd. (Diversified Financial Services) (a)		68,684		362,871
Commonwealth Bank of Australia (Commercial Banks) (a)		12,220		719,410
CSL, Ltd. (Biotechnology) (a)		32,236		1,213,718
Emeco Holdings, Ltd. (Trading Companies & Distributors)		372,975		447,655
Grange Resources, Ltd. (Metals & Mining) (d)		194,364		139,543
Iluka Resources, Ltd. (Metals & Mining) (d)		42,857		587,664
Industrea, Ltd. (Machinery)		12,714		20,764
Kingsgate Consolidated, Ltd. (Metals & Mining)		73,934		628,863
Lynas Corp, Ltd. (Metals & Mining) (d)		232,279		532,116
Macquarie Airports (Transportation Infrastructure) (a)		67,537		218,380
Medusa Mining, Ltd. (Metals & Mining)		7,572		66,646
Metcash, Ltd. (Food & Staples Retailing) (a)		53,812		239,472
Minara Resources, Ltd. (Metals & Mining)		103,554		87,399
Mount Gibson Iron, Ltd. (Metals & Mining) (d)		354,270		730,033
New Hope Corp, Ltd. (Oil, Gas & Consumable Fuels) (a)		30,295		162,711
Origin Energy, Ltd. (Oil, Gas & Consumable Fuels) (a)		46,486		833,086
OZ Minerals, Ltd. (Metals & Mining) (a)		622,590		982,686
Panoramic Resources, Ltd. (Metals & Mining)		140,136		316,422
Rio Tinto, Ltd. (Metals & Mining) (a)		9,077		817,932
Seven Group Holdings, Ltd. (Trading Companies & Distributors)		11,667		116,628
St Barbara, Ltd. (Metals & Mining) (a)(d)		35,853		87,243
Stockland (Real Estate Investment Trusts) (a)		49,498		205,083
Suncorp-Metway, Ltd. (Insurance) (a)		49,736		453,570
Telstra Corp, Ltd. (Diversified Telecommunication Services) (a)		388,037		1,237,702
Western Areas NL (Metals & Mining) (a)		46,297		340,506
Westfield Group (Real Estate Investment Trusts) (a)		112,977		1,116,983
Westpac Banking Corp. (Commercial Banks) (a)		64,578		1,758,272
				20,688,342
Austria 0.8%
OMV A.G. (Oil, Gas & Consumable Fuels) (a)		2,178		99,327
Schoeller-Bleckmann Oilfield Equipment A.G. (Energy Equipment & Services) (a)		1,979		200,435
Semperit A.G. Holding (Machinery) (a)		3,787		221,420
Strabag SE (Construction & Engineering) (a)		5,309		178,264
Voestalpine A.G. (Metals & Mining) (a)		10,910		536,894
				1,236,340
Belgium 2.0%
AGFA-Gevaert N.V. (Health Care Technology) (d)		675		3,009
Barco N.V. (Electronic Equipment & Instruments) (d)		319		27,872
Bekaert S.A. (Electrical Equipment) (a)		8,331		1,042,561
D’ieteren S.A. (Distributors)		3,459		251,503
Delhaize Group (Food & Staples Retailing) (a)		11,727		1,015,418
Omega Pharma S.A. (Health Care Equipment & Supplies) (a)		8,170		418,695
Umicore S.A. (Chemicals) (a)		7,241		415,326
				3,174,384
Bermuda 1.6%
China Green Holdings Ltd/Bermuda (Food Products)		228,000		193,761
Giordano International, Ltd. (Specialty Retail)		658,000		475,311
GuocoLeisure, Ltd. (Hotels, Restaurants & Leisure)		106,000		63,649
Johnson Electric Holdings, Ltd. (Electrical Equipment) (a)		1,007,000		619,792
Luk Fook Holdings International, Ltd. (Specialty Retail)		22,000		81,584
SmarTone Telecommunications Holding, Ltd. (Wireless Telecommunication Services) (a)		459,000		709,223
TPV Technology, Ltd. (Computers & Peripherals) (a)		394,000		226,266
Yue Yuen Industrial Holdings, Ltd. (Textiles, Apparel & Luxury Goods) (a)		73,500		253,636
				2,623,222
Cayman Islands 1.1%
361 Degrees International, Ltd. (Textiles, Apparel & Luxury Goods)		198,000		131,554
AMVIG Holdings, Ltd. (Containers & Packaging)		118,000		85,542
Bosideng International Holdings, Ltd. (Textiles, Apparel & Luxury Goods)		174,000		55,340

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    53

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
Cayman Islands (continued)
China Metal Recycling Holdings, Ltd. (Metals & Mining)		154,200	$	214,038
China Qinfa Group, Ltd. (Oil, Gas & Consumable Fuels)(d)		110,000		65,154
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings, Ltd. (Metals & Mining) (d)		96,000		50,063
EVA Precision Industrial Holdings, Ltd. (Machinery)		274,000		234,618
Hutchison Telecommunications Hong Kong Holdings, Ltd. (Diversified Telecommunication Services)		90,000		28,276
Kingboard Chemical Holdings, Ltd. (Electronic Equipment & Instruments) (a)		41,000		224,896
Kingboard Laminates Holdings, Ltd. (Electronic Equipment & Instruments)		241,500		213,941
Lonking Holdings, Ltd. (Machinery)		202,000		148,777
Polytec Asset Holdings, Ltd. (Real Estate Management & Development)		825,000		125,350
Silver base Group Holdings, Ltd. (Distributors)		132,000		109,118
Wynn Macau, Ltd. (Hotels, Restaurants & Leisure)		9,600		34,364
				1,721,031
China 0.4%
Anhui Expressway Co. Class H (Transportation Infrastructure)		78,000		65,282
Harbin Power Equipment Co., Ltd. (Electrical Equipment)		420,000		406,683
Weiqiao Textile Co. (Textiles, Apparel & Luxury Goods)		163,000		148,177
				620,142
Cyprus 0.3%
Songa Offshore SE (Energy Equipment & Services) (d)		86,979		532,159
Denmark 1.3%
H Lundbeck A/S (Pharmaceuticals) (a)		14,755		354,289
Novo-Nordisk A/S Class B (Pharmaceuticals) (a)		12,399		1,567,389
Royal UNIBREW A/S (Beverages)		1,856		137,124
				2,058,802
Finland 2.3%
Kesko Oyj (Food & Staples Retailing) (a)		5,620		291,758
Metso Oyj (Machinery) (a)		19,266		1,181,384
Nokia Oyj (Communications Equipment) (a)		108,092		995,825
Stora Enso Oyj (Paper & Forest Products) (a)		54,603		657,920
Wartsila Oyj (Machinery) (a)		12,408		487,755
				3,614,642
France 12.6%
Arkema S.A. (Chemicals)		6,100		635,613
AXA S.A. (Insurance) (a)		71,687		1,608,615
BNP Paribas S.A. (Commercial Banks) (a)		26,651		2,109,103
Christian Dior S.A. (Textiles, Apparel & Luxury Goods) (a)		2,310		370,715
Ciments Francais S.A. (Construction Materials) (a)		659		69,653
Credit Agricole S.A. (Commercial Banks) (a)		73,380		1,221,640
Derichebourg S.A. (Commercial Services & Supplies) (d)		81,511		772,069
Natixis (Commercial Banks)(d)		194,035		1,115,667
Nexity S.A (Household Durables)		2,832		153,942
Peugeot S.A. (Automobiles) (a)(d)		12,425		564,245
Plastic Omnium S.A. (Auto Components)		2,574		246,668
Rallye S.A. (Food & Staples Retailing) (a)		11,568		608,512
Renault S.A. (Automobiles) (a)(d)		21,198		1,291,690
X  Sanofi-Aventis (Pharmaceuticals) (a)		28,359		2,243,010
Schneider Electric S.A. (Electrical Equipment) (a)		3,970		701,504
Societe Generale (Commercial Banks) (a)		24,629		1,647,403
X  Total S.A. (Oil, Gas & Consumable Fuels) (a)		42,749		2,736,590
Vivendi S.A. (Media) (a)		45,753		1,435,645
Wendel (Industrial Conglomerates)		5,124		641,837
				20,174,121
Germany 10.3%
Aareal Bank A.G. (Thrifts & Mortgage Finance) (a)(d)		4,423		134,102
Allianz SE (Insurance) (a)		13,301		2,094,193
X  BASF S.E. (Chemicals) (a)		23,906		2,457,341
Bayer A.G. (Pharmaceuticals) (a)		3,451		303,364
Bayerische Motoren Werke A.G. (Automobiles) (a)		16,462		1,552,446
Bechtle A.G. (IT Services)		1,180		56,190
Bertrandt A.G. (Professional Services) (a)		6,727		492,456
Daimler A.G. (Automobiles) (a)		4,474		345,846
Deutsche Lufthansa A.G. (Airlines) (a)(d)		9,643		218,811
Duerr A.G. (Machinery)(d)		3,657		142,483
Indus Holding A.G. (Industrial Conglomerates)		6,188		204,846
Infineon Technologies A.G. (Semiconductors & Semiconductor Equipment) (a)		94,754		1,075,603
Lanxess A.G. (Chemicals) (a)		11,069		1,015,333
MAN A.G. (Machinery) (a)(d)		9,565		1,332,992
Pfeiffer Vacuum Technology A.G. (Machinery)		2,930		405,768
QSC A.G. (Diversified Telecommunication Services) (a)(d)		31,237		119,276
Siemens A.G. (Industrial Conglomerates) (a)		8,079		1,175,321
Sixt A.G. (Road & Rail) (a)		4,230		212,894
Stada Arzneimittel A.G. (Pharmaceuticals) (a)		21,089		933,175

54    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares		Value
Common Stocks (continued)
Germany (continued)
Suedzucker A.G. (Food Products) (a)		31,062	$	958,106
Volkswagen A.G. (Automobiles) (a)(d)		6,941		1,237,792
				16,468,338
Greece 1.0%
Motor Oil Hellas Corinth Refineries S.A. (Oil, Gas & Consumable Fuels)		6,765		89,679
OPAP S.A. (Hotels, Restaurants & Leisure) (a)		47,407		1,001,995
Public Power Corp. S.A. (Electric Utilities) (a)		28,833		477,026
				1,568,700
Hong Kong 3.0%
Cathay Pacific Airways, Ltd. (Airlines) (a)		159,000		397,999
China Pharmaceutical Group, Ltd. (Pharmaceuticals)		798,000		473,688
CNOOC, Ltd. (Oil, Gas & Consumable Fuels) (a)		321,000		791,934
Dah Chong Hong Holdings, Ltd. (Distributors) (a)		760,000		869,969
Emperor Watch & Jewellery, Ltd. (Specialty Retail)		2,950,000		429,229
HongKong Electric Holdings (Electric Utilities) (a)		56,500		396,128
Melco International Development (Hotels, Restaurants & Leisure)		501,000		425,120
New World Development, Ltd. (Real Estate Management & Development) (a)		190,000		333,211
Shun Tak Holdings, Ltd. (Industrial Conglomerates)		332,000		206,906
Singamas Container Holdings, Ltd. (Machinery) (d)		930,000		426,306
SJM Holdings, Ltd. (Hotels, Restaurants & Leisure) (a)		35,000		75,532
				4,826,022
Israel 1.0%
Delek Group, Ltd. (Industrial Conglomerates) (a)		3,579		950,800
Discount Investment Corp. (Industrial Conglomerates) (a)		35,660		723,697
				1,674,497
Italy 4.4%
Autostrada Torino-Milano S.p.A. (Transportation Infrastructure) (a)		19,347		325,530
Brembo S.p.A (Auto Components)		24,865		339,561
Danieli & C Officine Meccaniche S.p.A. (Machinery) (a)		20,845		663,803
De’Longhi S.p.A (Household Durables)		23,422		299,388
Enel Green Power S.p.A (Independent Power Producers & Energy Traders) (a)(d)		354,664		1,051,672
Enel S.p.A. (Electric Utilities)		10,399		74,148
ENI S.p.A. (Oil, Gas & Consumable Fuels) (a)		53,426		1,428,331
Indesit Co. S.p.A. (Household Durables) (a)		73,289		965,570
Interpump Group S.p.A (Machinery) (d)		18,081		163,362
Intesa Sanpaolo S.p.A. (Commercial Banks) (a)		31,498		104,597
Mediobanca S.p.A. (Capital Markets) (a)		11,901		135,553
Telecom Italia S.p.A (Diversified Telecommunication Services) (a)		1,008,417		1,474,090
				7,025,605
Japan 26.5%
Aeon Co., Ltd. (Food & Staples Retailing) (a)		57,800		694,042
Aichi Steel Corp. (Metals & Mining) (a)		36,000		216,138
Aisin Seiki Co., Ltd. (Auto Components) (a)		26,900		944,808
AOYAMA TRADING Co., Ltd. (Specialty Retail) (a)		33,100		544,764
Central Japan Railway Co. (Road & Rail) (a)		92		692,991
Century Tokyo Leasing Corp. (Diversified Financial Services)		20,500		350,786
Chugoku Bank, Ltd. (The) (Commercial Banks) (a)		16,000		185,810
Chugoku Marine Paints, Ltd. (Chemicals)		27,000		227,677
CKD Corp. (Machinery)		25,000		224,989
Coca-Cola West Co., Ltd. (Beverages) (a)		13,100		270,188
Cosmo Oil Co., Ltd. (Oil, Gas & Consumable Fuels) (a)		75,000		245,022
Credit Saison Co., Ltd. (Consumer Finance) (a)		51,100		852,349
Daifuku Co., Ltd. (Machinery) (a)		22,000		148,086
Daihatsu Motor Co., Ltd. (Automobiles) (a)		40,000		641,558
Daiichikosho Co., Ltd. (Media) (a)		12,300		214,566
Daiwa House Industry Co., Ltd. (Real Estate Management & Development) (a)		3,000		35,986
EDION Corp. (Specialty Retail) (a)		84,800		729,710
Fields Corp. (Leisure Equipment & Products)		37		57,428
Foster Electric Co., Ltd. (Household Durables)		13,800		316,950
Fuji Heavy Industries, Ltd. (Automobiles) (a)		83,000		615,990
FUJIFILM Holdings Corp. (Electronic Equipment & Instruments) (a)		19,100		591,025
Fujikura, Ltd. (Electrical Equipment) (a)		23,000		117,956
Furukawa-Sky Aluminum Corp. (Metals & Mining)		4,000		11,391
Fuyo General Lease Co., Ltd. (Diversified Financial Services) (a)		8,600		266,116
Geo Corp. (Specialty Retail)		350		403,871
H.I.S Co., Ltd. (Hotels, Restaurants & Leisure)		14,200		339,442
Higo Bank, Ltd. (The) (Commercial Banks) (a)		15,000		86,174
Hitachi, Ltd. (Electronic Equipment & Instruments) (a)		129,000		696,567
Hokuhoku Financial Group, Inc. (Commercial Banks) (a)		180,000		341,737
Honda Motor Co., Ltd. (Automobiles) (a)		3,600		141,577
Idemitsu Kosan Co., Ltd. (Oil, Gas & Consumable Fuels) (a)		8,700		1,017,851

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    55

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
Japan (continued)
Jaccs Co., Ltd. (Consumer Finance) (a)		106,000	$	291,413
Japan Petroleum Exploration Co., Ltd. (Oil, Gas & Consumable Fuels) (a)		8,500		413,919
Japan Securities Finance Co., Ltd. (Diversified Financial Services)		53,300		329,860
JFE Shoji Holdings, Inc. (Trading Companies & Distributors)		27,000		118,166
JSP Corp. (Chemicals)		10,600		187,393
K’s Holdings Corp. (Specialty Retail) (a)		17,300		536,179
Kansai Electric Power Co., Inc. (The) (Electric Utilities) (a)		22,200		465,813
Kanto Auto Works, Ltd. (Auto Components)		5,300		34,303
KDDI Corp. (Wireless Telecommunication Services) (a)		210		1,392,837
Keiyo Bank, Ltd. (The) (Commercial Banks) (a)		15,000		73,414
Kitz Corp. (Machinery)		40,000		207,113
Kyocera Corp. (Electronic Equipment & Instruments) (a)		6,400		701,424
Melco Holdings, Inc. (Computers & Peripherals) (a)		1,800		57,274
Mitsubishi Corp. (Trading Companies & Distributors) (a)		24,800		666,205
Mitsubishi Steel Manufacturing Co., Ltd. (Metals & Mining)		40,000		134,131
Mitsubishi UFJ Financial Group, Inc. (Commercial Banks) (a)		398,000		1,898,860
Mitsubishi UFJ Lease & Finance Co., Ltd. (Diversified Financial Services) (a)		11,850		471,137
MITSUI & Co., Ltd. (Trading Companies & Distributors) (a)		81,700		1,442,328
NEC Networks & System Integration Corp. (Construction & Engineering) (d)		8,800		114,346
NET One Systems Co., Ltd. (IT Services) (a)		583		1,045,037
Nichias Corp. (Building Products)		9,000		54,367
Nippo Corp. (Construction & Engineering) (a)		48,000		382,864
Nippon Chemi-Con Corp. (Electronic Equipment & Instruments)		48,000		247,353
Nippon Densetsu Kogyo Co., Ltd. (Construction & Engineering)		11,000		105,505
Nippon Meat Packers, Inc. (Food Products) (a)		41,000		565,099
Nippon Synthetic Chemical Industry Co., Ltd. (The) (Chemicals) (a)		31,000		196,055
Nippon Telegraph & Telephone Corp. (Diversified Telecommunication Services) (a)		30,000		1,385,071
Nishi-Nippon City Bank, Ltd. (The) (Commercial Banks) (a)		285,000		801,085
Nissin Electric Co., Ltd. (Electrical Equipment)		12,000		97,639
NTT Data Corp. (IT Services) (a)		109		357,712
NTT DoCoMo, Inc. (Wireless Telecommunication Services) (a)		521		958,951
Osaka Gas Co., Ltd. (Gas Utilities) (a)		92,000		337,989
Otsuka Holdings Co., Ltd. (Pharmaceuticals)		2,900		77,653
Plenus Co., Ltd. (Hotels, Restaurants & Leisure)		3,600		54,545
Promise Co., Ltd. (Consumer Finance) (a)(d)		98,750		833,924
Ricoh Leasing Co., Ltd. (Diversified Financial Services)		6,600		146,947
Ryobi, Ltd. (Machinery)		114,000		439,894
Sakai Chemical Industry Co., Ltd. (Chemicals)		37,000		192,948
Sanden Corp. (Auto Components) (a)		58,000		271,713
Seiko Epson Corp. (Computers & Peripherals) (a)		27,800		483,583
Sekisui Chemical Co., Ltd. (Household Durables) (a)		95,000		789,373
Seven & I Holdings Co., Ltd. (Food & Staples Retailing) (a)		31,000		773,137
Showa Corp. (Auto Components) (d)		11,900		77,020
Sintokogio, Ltd. (Machinery)		8,000		79,985
SKY Perfect JSAT Holdings, Inc. (Media) (a)		252		100,502
Sojitz Corp. (Trading Companies & Distributors) (a)		297,700		565,195
Sony Corp. (Household Durables) (a)		39,600		1,103,322
Sumitomo Corp. (Trading Companies & Distributors) (a)		91,100		1,243,268
Sumitomo Electric Industries, Ltd. (Electrical Equipment) (a)		21,300		294,364
Sumitomo Forestry Co., Ltd. (Household Durables) (a)		69,400		603,181
Sumitomo Mitsui Financial Group, Inc. (Commercial Banks) (a)		43,900		1,350,311
Takeda Pharmaceutical Co., Ltd. (Pharmaceuticals) (a)		16,800		811,884
Toda Corp. (Construction & Engineering) (a)		36,000		133,144
Toei Co., Ltd. (Media)		12,000		54,441
Toho Zinc Co., Ltd. (Metals & Mining)		84,000		453,578
Tokai Rubber Industries, Inc. (Auto Components) (a)		14,700		177,781
Tokyo Gas Co., Ltd. (Gas Utilities) (a)		100,000		442,582
Toshiba Machine Co., Ltd. (Machinery)		59,000		311,311
Toyota Motor Corp. (Automobiles) (a)		12,900		513,678
TV Asahi Corp. (Media) (a)		65		98,804
Unipres Corp. (Auto Components) (a)		52,800		1,122,199
Yamaguchi Financial Group, Inc. (Commercial Banks) (a)		39,000		350,502
				42,245,156

56    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares		Value
Common Stocks (continued)
Netherlands 3.6%
European Aeronautic Defence and Space Co. N.V. (Aerospace & Defense) (a)(d)		40,547	$	1,254,574
Heineken Holding N.V. (Beverages) (a)		20,440		1,078,839
ING Groep N.V. (Diversified Financial Services) (a)(d)		125,625		1,656,019
STMicroelectronics N.V. (Semiconductors & Semiconductor Equipment) (a)		35,231		416,050
STMicroelectronics N.V. (Semiconductors & Semiconductor Equipment)		67,169		792,915
Ten Cate N.V. (Textiles, Apparel & Luxury Goods) (a)		9,552		442,123
Unilever N.V., CVA (Food Products)		1,215		39,987
				5,680,507
Norway 4.7%
Aker Solutions ASA (Energy Equipment & Services) (d)		15,789		380,987
Atea ASA (IT Services) (a)		59,776		660,811
Austevoll Seafood A.S.A. (Food Products)		42,069		323,139
Cermaq ASA (Food Products) (a)(d)		42,720		879,381
Fred Olsen Energy ASA (Energy Equipment & Services) (a)		11,318		522,044
Gjensidige Forsikring ASA (Insurance)		45,416		591,656
Marine Harvest (Food Products) (a)		681,010		899,516
Norske Skogindustrier ASA (Paper & Forest Products) (d)		69,519		197,429
StatoilHydro ASA (Oil, Gas & Consumable Fuels) (a)		51,883		1,517,943
TGS Nopec Geophysical Co. ASA (Energy Equipment & Services)		27,464		722,902
Yara International ASA (Chemicals) (a)		13,936		816,249
				7,512,057
Singapore 0.3%
Hi-P International, Ltd. (Machinery)		51,000		50,831
Hong Leong Asia, Ltd. (Industrial Conglomerates)		114,000		250,529
Hutchison Port Holdings Trust (Transportation Infrastructure) (d)		68,000		62,560
Singapore Airlines, Ltd. (Airlines) (a)		7,000		80,520
XP Power, Ltd. (Electrical Equipment)		2,456		69,330
				513,770
Spain 3.2%
Almirall S.A. (Pharmaceuticals)		27,008		308,022
Banco Bilbao Vizcaya Argentaria S.A. (Commercial Banks) (a)		102,360		1,312,947
Banco Santander S.A. (Commercial Banks) (a)		32,667		417,173
Criteria Caixacorp S.A. (Diversified Financial Services)		105,672		780,233
Endesa S.A. (Electric Utilities) (a)		13,755		479,484
Grifols S.A. (Biotechnology) (a)		33,180		657,063
International Consolidated Airlines Group S.A. (Airlines) (d)		11,138		44,410
Telefonica S.A. (Diversified Telecommunication Services) (a)		42,125		1,132,441
				5,131,773
Sweden 3.1%
Alfa Laval AB (Machinery) (a)		42,072		942,059
Bilia AB (Specialty Retail)		9,267		238,483
Billerud AB (Paper & Forest Products)		7,947		96,667
Boliden AB (Metals & Mining) (a)(d)		48,605		1,095,582
Hoganas AB (Metals & Mining) (a)(d)		13,081		543,377
Industrivarden AB (Diversified Financial Services)		29,104		652,648
Meda AB Class A (Pharmaceuticals)		29,956		317,038
Oresund Investment AB (Diversified Financial Services)		5,577		101,988
PA Resources AB (Oil, Gas & Consumable Fuels) (d)		209,327		154,507
SAAB AB (Aerospace & Defense)		4,326		97,725
Scania AB Class B (Machinery) (a)		24,354		632,786
SKF AB (Machinery) (a)		3,597		113,521
				4,986,381
Switzerland 8.1%
Credit Suisse Group A.G. (Capital Markets)		39,386		1,789,900
GAM Holding, Ltd.A.G. (Capital Markets) (a)(d)		24,404		481,027
X  Nestle S.A. Registered (Food Products) (a)		54,851		3,405,201
Novartis A.G. (Pharmaceuticals) (a)		33,394		1,982,407
Pargesa Holding S.A. (Diversified Financial Services) (a)		365		37,513
X  Roche Holding A.G., Genusscheine (Pharmaceuticals) (a)		14,637		2,374,070
Swiss Life Holding (Insurance) (a)(d)		6,557		1,196,179
Swiss Reinsurance Co.,Ltd. (Insurance) (a)(d)		17,134		1,021,107
Zurich Financial Services A.G. (Insurance) (a)(d)		2,274		638,823
				12,926,227
United Kingdom 24.0%
Anglo American PLC (Metals & Mining) (a)		37,215		1,939,767
Antofagasta PLC (Metals & Mining) (a)		7,342		167,645
Ashtead Group PLC (Trading Companies & Distributors) (a)		172,020		580,988
AstraZeneca PLC (Pharmaceuticals) (a)		40,963		2,045,834
Aviva PLC (Insurance) (a)		183,695		1,370,938
Barclays PLC (Commercial Banks) (a)		379,022		1,787,239
Beazley PLC (Insurance)		12,750		27,878
BG Group PLC (Oil, Gas & Consumable Fuels) (a)		5,096		130,533
BHP Billiton PLC (Metals & Mining) (a)		28,841		1,216,167
Bodycote PLC (Machinery) (a)		151,382		981,100

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    57

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
United Kingdom (continued)
BP PLC (Oil, Gas & Consumable Fuels) (a)		244,207	$	1,886,793
British American Tobacco PLC (Tobacco) (a)		17,241		751,929
BT Group PLC (Diversified Telecommunication Services) (a)		445,127		1,455,808
Centrica PLC (Multi-Utilities) (a)		206,490		1,106,818
Dairy Crest Group PLC (Food Products) (a)		48,014		322,405
Diploma PLC (Electronic Equipment & Instruments)		13,865		85,227
Drax Group PLC (Independent Power Producers & Energy Traders) (a)		89,727		659,302
DS Smith PLC (Containers & Packaging) (a)		130,928		474,351
Electrocomponents PLC (Electronic Equipment & Instruments)		22,885		106,345
Elementis PLC (Chemicals) (a)		96,403		267,304
Enterprise Inns PLC (Hotels, Restaurants & Leisure) (a)(d)		219,440		349,314
F&C Asset Management PLC (Capital Markets)		42,622		56,635
Fenner PLC (Machinery)		37,787		244,770
Filtrona PLC (Chemicals) (a)		30,981		178,017
GlaxoSmithKline PLC (Pharmaceuticals) (a)		36,521		796,392
HSBC Holdings PLC (Commercial Banks) (a)		145,322		1,590,909
Intermediate Capital Group PLC (Capital Markets) (a)		135,142		744,924
Interserve PLC (Construction & Engineering)		41,777		196,088
Investec PLC (Capital Markets)		13,149		105,710
ITV PLC (Media) (a)(d)		655,893		833,181
JKX Oil & Gas PLC (Oil, Gas & Consumable Fuels)		21,223		109,185
John Wood Group PLC (Energy Equipment & Services)		54,531		634,868
Kier Group PLC (Construction & Engineering)		3,887		86,352
Legal & General Group PLC (Insurance) (a)		292,888		600,769
Logica PLC (IT Services) (a)		58,807		132,412
Marks & Spencer Group PLC (Multiline Retail) (a)		74,656		483,842
Melrose PLC (Machinery)		31,436		185,935
Mondi PLC (Paper & Forest Products)		33,855		334,774
Paragon Group of Cos. PLC (Thrifts & Mortgage Finance) (a)		158,185		456,844
Persimmon PLC (Household Durables) (a)		112,619		908,774
Petrofac, Ltd. (Energy Equipment & Services) (a)		20,977		529,088
Premier Farnell PLC (Electronic Equipment & Instruments)		10,715		51,098
X  Rio Tinto PLC (Metals & Mining) (a)		33,771		2,459,449
X  Royal Dutch Shell PLC Class A (Oil, Gas & Consumable Fuels) (a)		54,923		2,130,676
Royal Dutch Shell PLC Class B (Oil, Gas & Consumable Fuels) (a)		49,326		1,917,254
RPC Group PLC (Containers & Packaging)		38,890		217,486
Schroders PLC (Capital Markets) (a)		5,992		189,966
Senior PLC (Machinery) (a)		163,174		416,468
Spectris PLC (Electronic Equipment & Instruments)		1,197		29,651
Tesco PLC (Food & Staples Retailing) (a)		67,058		452,018
Trinity Mirror PLC (Media)(d)		81,391		65,936
Tullett Prebon PLC (Capital Markets) (a)		8,442		59,295
Vedanta Resources PLC (Metals & Mining) (a)		2,515		97,672
X  Vodafone Group PLC (Wireless Telecommunication Services) (a)		1,054,055		3,021,259
William Hill PLC (Hotels, Restaurants & Leisure) (a)		53,585		200,045
				38,231,427
Total Common Stocks (Cost $174,040,174)				205,233,645
Convertible Preferred Stock 0.0%‡
Germany 0.0%‡
KSB A.G. 2.37% (Machinery)		42		37,048
Total Convertible Preferred Stock (Cost $25,720)				37,048
Exchange Traded Fund 4.6% (e)
United States 4.6%
X  iShares MSCI Emerging Markets Index Fund (Capital Markets)		146,939		7,346,950
Total Exchange Traded Fund (Cost $6,851,974)				7,346,950
Preferred Stocks 0.6%
Germany 0.6%
Jungheinrich A.G. 0.40% (Machinery) (a)		7,811		358,879
Volkswagen A.G. 1.54% (Automobiles) (a)		3,369		663,669
Total Preferred Stocks (Cost $767,231)				1,022,548

58    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Number of
	Warrants			Value
Warrants 0.0%‡
Cayman Islands 0.0%‡
Kingboard Chemical Holdings, Ltd. Strike Price HK$40.00 Expires 10/31/12 (Electronic Equipment & Instruments) (d)		11,400		$	9,541
Spain 0.0%‡
Promotora de Informaciones S.A. Strike Price €2.00 Expires 6/28/14 (Media) (d)		85,100			50,419
Total Warrants (Cost $0)					59,960
	Principal
	Amount
Short-Term Investment 0.1%
Repurchase Agreement 0.1%
United States 0.1%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $87,895 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $90,000 and a Market Value of $90,000) (Capital Markets)	$	87,895			87,895
Total Short-Term Investment (Cost $87,895)					87,895
Total Investments, Before Investments Sold Short (Cost $181,772,994) (f)		133.9	%		213,788,046
	Shares
Investments Sold Short (34.6%) Common Stocks Sold Short (30.0%)
Australia (4.5%)
Arafura Resources, Ltd. (Metals & Mining) (d)		(54,677	)		(70,120	)
Aristocrat Leisure, Ltd. (Hotels, Restaurants & Leisure)		(256,040	)		(735,291	)
Austar United Communications, Ltd. (Media) (d)		(617,863	)		(839,777	)
Billabong International, Ltd. (Textiles, Apparel & Luxury Goods)		(16,047	)		(118,726	)
Coalspur Mines, Ltd. (Oil, Gas & Consumable Fuels) (d)		(38,218	)		(73,099	)
Cockatoo Coal, Ltd. (Oil, Gas & Consumable Fuels) (d)		(780,898	)		(423,691	)
CSR, Ltd. (Industrial Conglomerates)		(35,391	)		(116,376	)
Cudeco, Ltd. (Metals & Mining) (b)(d)		(130,141	)		(489,281	)
Discovery Metals, Ltd. (Metals & Mining) (d)		(47,170	)		(65,663	)
Eastern Star Gas, Ltd. (Oil, Gas & Consumable Fuels) (d)		(714,230	)		(594,979	)
Energy World Corp, Ltd. (Independent Power Producers & Energy Traders) (d)		(134,869	)		(73,176	)
Extract Resources, Ltd. (Oil, Gas & Consumable Fuels) (d)		(95,390	)		(698,440	)
Gunns, Ltd. (Paper & Forest Products) (d)		(42,699	)		(24,571	)
Ivanhoe Australia, Ltd. (Metals & Mining) (d)		(3,223	)		(11,340	)
Karoon Gas Australia, Ltd. (Oil, Gas & Consumable Fuels) (d)		(14,865	)		(107,700	)
Murchison Metals, Ltd. (Metals & Mining) (d)		(489,369	)		(563,217	)
Pharmaxis, Ltd. (Pharmaceuticals) (d)		(18,189	)		(59,612	)
Sandfire Resources NL (Metals & Mining) (d)		(13,324	)		(104,422	)
Sundance Resources Ltd/Australia (Metals & Mining) (d)		(1,277,491	)		(560,103	)
TPG Telecom, Ltd. (Diversified Telecommunication Services)		(83,132	)		(153,083	)
Transpacific Industries Group, Ltd. (Commercial Services & Supplies) (d)		(125,792	)		(153,047	)
Virgin Blue Holdings, Ltd. (Airlines) (d)		(1,614,651	)		(504,398	)
Wotif.com Holdings, Ltd. (Internet & Catalog Retail)		(100,410	)		(627,338	)
					(7,167,450	)
Austria (0.5%)
Intercell A.G. (Biotechnology) (d)		(36,320	)		(328,689	)
Wienerberger A.G. (Building Products) (d)		(18,648	)		(398,702	)
					(727,391	)
Belgium (0.2%)
Hansen Transmissions International N.V. (Machinery) (d)		(262,998	)		(218,551	)
Telenet Group Holding N.V. (Diversified Telecommunication Services) (d)		(3,486	)		(173,306	)
Tessenderlo Chemie N.V. (Chemicals) (d)		(3	)		(2	)
					(391,859	)
Bermuda (1.1%)
Biosensors International Group, Ltd. (Health Care Equipment & Supplies) (d)		(117,000	)		(129,039	)
China Gas Holdings, Ltd. (Gas Utilities)		(1,126,000	)		(440,758	)
China Oil and Gas Group, Ltd. (Gas Utilities) (d)		(1,140,000	)		(123,303	)
Ports Design, Ltd. (Textiles, Apparel & Luxury Goods)		(201,000	)		(556,446	)
Sinofert Holdings, Ltd. (Chemicals) (d)		(632,000	)		(261,223	)
Skyworth Digital Holdings, Ltd. (Household Durables)		(5,135	)		(3,293	)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    59

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares			Value
Common Stocks Sold Short (continued)
Bermuda (continued)
VODone, Ltd. (Media)		(758,000	)	$	(228,388	)
					(1,742,450	)
Cayman Islands (1.1%)
BaWang International Group Holding, Ltd. (Personal Products)		(242,000	)		(67,307	)
China High Speed Transmission Equipment Group Co., Ltd. (Electrical Equipment)		(256,000	)		(341,498	)
Geely Automobile Holdings, Ltd. (Automobiles)		(2,310,000	)		(925,041	)
Ju Teng International Holdings, Ltd. (Electronic Equipment & Instruments)		(188,000	)		(62,213	)
Lijun International Pharmaceutical Holding, Ltd. (Pharmaceuticals)		(675,000	)		(167,745	)
Tianjin Port Development Holdings, Ltd. (Transportation Infrastructure)		(342,000	)		(79,266	)
Wasion Group Holdings, Ltd. (Electronic Equipment & Instruments)		(276,000	)		(144,641	)
					(1,787,711	)
Denmark (0.3%)
ALK-Abello A/S (Pharmaceuticals)		(1,497	)		(90,978	)
Bang & Olufsen A/S (Household Durables) (d)		(2,798	)		(43,900	)
Genmab A/S (Biotechnology) (d)		(29,457	)		(318,258	)
Torm A/S (Oil, Gas & Consumable Fuels) (d)		(5,993	)		(39,076	)
					(492,212	)
Finland (0.1%)
Poyry Oyj (Professional Services)		(1,423	)		(24,238	)
Stockmann Oyj Abp (Multiline Retail)		(2,395	)		(73,501	)
					(97,739	)
France (0.6%)
BioMerieux (Health Care Equipment & Supplies)		(1,093	)		(118,908	)
Bull S.A. (Computers & Peripherals) (d)		(86,632	)		(576,134	)
PagesJaunes Groupe (Media)		(11,761	)		(122,618	)
Stallergenes S.A. (Pharmaceuticals)		(991	)		(85,413	)
					(903,073	)
Germany (1.5%)
Asian Bamboo A.G. (Food Products)		(1,272	)		(64,057	)
Balda A.G. (Communications Equipment) (d)		(51,879	)		(691,566	)
Demag Cranes A.G. (Machinery)		(11,743	)		(631,284	)
Fielmann A.G. (Specialty Retail)		(949	)		(101,007	)
Heidelberger Druckmaschinen A.G. (Machinery) (d)		(54,925	)		(245,114	)
MLP A.G. (Capital Markets)		(12,026	)		(119,343	)
Nordex A.G. (Electrical Equipment) (d)		(45,482	)		(457,278	)
Solar Millennium A.G. (Construction & Engineering) (d)		(4,376	)		(134,005	)
					(2,443,654	)
Greece (0.4%)
Marfin Investment Group S.A. (Diversified Financial Services) (d)		(116,168	)		(122,164	)
Piraeus Bank S.A. (Commercial Banks) (d)		(280,173	)		(456,476	)
TT Hellenic Postbank S.A. (Commercial Banks) (d)		(28,905	)		(124,157	)
					(702,797	)
Hong Kong (0.4%)
Citic 1616 Holdings, Ltd. (Diversified Telecommunication Services)		(731,000	)		(208,016	)
Dah Sing Banking Group, Ltd. (Commercial Banks)		(142,000	)		(230,016	)
Dah Sing Financial Holdings, Ltd. (Commercial Banks)		(22,400	)		(140,897	)
					(578,929	)
Italy (1.2%)
Milano Assicurazioni S.p.A. (Insurance) (d)		(324,638	)		(478,915	)
Telecom Italia Media S.p.A (Media) (d)		(365,022	)		(107,103	)
Trevi Finanziaria S.p.A. (Construction & Engineering)		(41,375	)		(672,883	)
Yoox S.p.A (Internet & Catalog Retail) (d)		(36,412	)		(661,741	)
					(1,920,642	)
Japan (8.6%)
Akebono Brake Industry Co., Ltd. (Auto Components)		(24,400	)		(127,843	)
Asahi Diamond Industrial Co., Ltd. (Machinery)		(48,000	)		(991,185	)
Cedyna Financial Corp. (Consumer Finance) (c)(d)		(55,400	)		(102,242	)
Cosel Co., Ltd. (Electrical Equipment)		(12,700	)		(200,094	)
CSK Holdings Corp. (IT Services) (d)		(127,800	)		(404,914	)
Daiichi Chuo KK (Marine) (d)		(100,000	)		(193,552	)
Daiseki Co., Ltd. (Commercial Services & Supplies)		(11,800	)		(249,631	)
FujiI Media Holdings, Inc. (Media)		(89	)		(118,169	)
Fujiya Co., Ltd. (Food Products) (d)		(24,000	)		(39,647	)
Funai Electric Co., Ltd. (Household Durables)		(24,800	)		(752,117	)
GCA Savvian Group Corp. (Capital Markets)		(102	)		(176,298	)
Gulliver International Co., Ltd. (Specialty Retail)		(1,570	)		(62,905	)
Harmonic Drive Systems, Inc. (Machinery)		(4,200	)		(105,939	)
Haseko Corp. (Household Durables) (d)		(540,500	)		(359,822	)
Ishihara Sangyo Kaisha, Ltd. (Chemicals) (d)		(340,000	)		(402,392	)
Ito En, Ltd. (Beverages)		(6,800	)		(119,963	)
Kakaku.com, Inc. (Internet Software & Services)		(38	)		(216,668	)
Matsui Securities Co., Ltd. (Capital Markets)		(23,700	)		(115,995	)
Mitsumi Electric Co., Ltd. (Electronic Equipment & Instruments)		(9,300	)		(118,665	)
Nichi-iko Pharmaceutical Co., Ltd. (Pharmaceuticals)		(16,900	)		(437,110	)
Nissan Chemical Industries, Ltd. (Chemicals)		(11,800	)		(122,197	)

60    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares			Value
Common Stocks Sold Short (continued)
Japan (continued)
Nisshinbo Holdings, Inc. (Textiles, Apparel & Luxury Goods)		(12,000	)	$	(118,203	)
Orient Corp. (Consumer Finance) (d)		(513,500	)		(620,391	)
Osaka Securities Exchange Co., Ltd. (Diversified Financial Services)		(32	)		(162,140	)
OSAKA Titanium Technologies Co. (Metals & Mining)		(13,500	)		(1,030,204	)
Pigeon Corp. (Household Products)		(17,600	)		(599,504	)
Pioneer Corp. (Household Durables) (d)		(179,400	)		(751,969	)
Sapporo Holdings, Ltd. (Beverages)		(30,000	)		(119,830	)
Seiko Holdings Corp. (Textiles, Apparel & Luxury Goods)		(174,000	)		(568,452	)
Senshu Ikeda Holdings, Inc. (Commercial Banks)		(82,500	)		(122,049	)
Shinko Electric Industries Co., Ltd. (Semiconductors & Semiconductor Equipment)		(11,900	)		(121,179	)
SHO-BOND Holdings Co., Ltd. (Construction & Engineering)		(9,900	)		(258,134	)
Skymark Airlines, Inc. (Airlines)		(41,800	)		(552,421	)
Start Today Co., Ltd. (Internet & Catalog Retail)		(43,300	)		(747,334	)
Stella Chemifa Corp. (Chemicals)		(6,200	)		(225,559	)
Sugi Holdings Co., Ltd. (Food & Staples Retailing)		(2,900	)		(69,430	)
Taikisha, Ltd. (Construction & Engineering)		(17,700	)		(339,533	)
Taiyo Holdings Co., Ltd. (Chemicals)		(2,600	)		(79,684	)
The Daiei, Inc. (Multiline Retail) (d)		(23,700	)		(82,394	)
Toho Titanium Co., Ltd. (Metals & Mining)		(28,300	)		(791,974	)
Tokuyama Corp. (Chemicals)		(23,000	)		(118,807	)
Tokyo Tatemono Co., Ltd. (Real Estate Management & Development)		(33,000	)		(118,387	)
Topcon Corp. (Electronic Equipment & Instruments)		(8,600	)		(48,770	)
Wacom Co., Ltd/Japan (Computers & Peripherals)		(589	)		(752,270	)
					(13,815,966	)
Netherlands (0.4%)
BinckBank N.V. (Capital Markets)		(9,534	)		(172,350	)
Wavin N.V. (Construction & Engineering) (d)		(28,667	)		(512,919	)
					(685,269	)
New Zealand (0.0%)‡
Fletcher Building, Ltd. (Construction Materials) (d)		(3,227	)		(23,840	)
Norway (1.6%)
Algeta ASA (Biotechnology) (d)		(13,245	)		(382,461	)
DNO International ASA (Oil, Gas & Consumable Fuels) (d)		(348,433	)		(522,656	)
Norwegian Air Shuttle ASA (Airlines) (d)		(830	)		(16,294	)
Norwegian Energy Co. ASA (Oil, Gas & Consumable Fuels) (d)		(119,891	)		(329,057	)
Petroleum Geo-Services ASA (Energy Equipment & Services) (d)		(51,779	)		(817,651	)
Pronova BioPharma AS (Pharmaceuticals) (d)		(8,500	)		(13,933	)
Sevan Marine ASA (Energy Equipment & Services) (d)		(600,194	)		(424,183	)
					(2,506,235	)
Portugal (0.1%)
Brisa Auto-Estradas de Portugal S.A. (Transportation Infrastructure) (d)		(17,749	)		(118,747	)
Singapore (0.2%)
Gallant Venture, Ltd. (Industrial Conglomerates) (d)		(384,000	)		(136,465	)
Oceanus Group, Ltd. (Distributors) (d)		(256,000	)		(57,514	)
Raffles Education Corp., Ltd. (Diversified Consumer Services) (d)		(38,000	)		(20,645	)
Sound Global, Ltd. (Water Utilities) (d)		(141,000	)		(86,393	)
					(301,017	)
Spain (0.9%)
Grupo Empresarial Ence S.A. (Paper & Forest Products) (d)		(16,534	)		(69,305	)
Promotora de Informaciones S.A. (Media) (d)		(151,458	)		(428,474	)
SOS Corp. Alimentaria S.A. (Food Products) (d)		(483,716	)		(458,532	)
Tubacex S.A. (Metals & Mining) (d)		(9,355	)		(40,044	)
Zeltia S.A. (Biotechnology) (d)		(93,789	)		(391,048	)
					(1,387,403	)
Sweden (0.5%)
Axis Communications AB (Communications Equipment)		(6,987	)		(178,073	)
KappAhl Holding AB (Specialty Retail)		(9,576	)		(56,736	)
Rezidor Hotel Group AB (Hotels, Restaurants & Leisure) (d)		(4,916	)		(35,472	)
SAS AB (Airlines) (d)		(163,170	)		(542,779	)
Swedish Orphan Biovitrum AB (Biotechnology) (d)		(10,336	)		(42,935	)
					(855,995	)
Switzerland (1.4%)
Basilea Pharmaceutica Registered (Biotechnology) (d)		(8,719	)		(699,032	)
Dufry Group (Specialty Retail) (d)		(4,176	)		(546,018	)
Kudelski S.A. (Electronic Equipment & Instruments)		(16,061	)		(294,297	)
OC Oerlikon Corp. A.G. (Machinery) (d)		(52,941	)		(465,146	)
Schmolz & Bickenbach A.G. (Metals & Mining) (d)		(6,023	)		(71,371	)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    61

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares			Value
Common Stocks Sold Short (continued)
Switzerland (continued)
Valiant Holding A.G. (Commercial Banks)		(749	)	$	(106,419	)
					(2,182,283	)
United Kingdom (4.4%)
Britvic PLC (Beverages)		(48,167	)		(329,466	)
Cable & Wireless Worldwide PLC (Diversified Telecommunication Services)		(146,429	)		(117,622	)
Carpetright PLC (Specialty Retail)		(8,332	)		(96,517	)
CSR PLC (Semiconductors & Semiconductor Equipment) (d)		(79,682	)		(497,117	)
De La Rue PLC (Commercial Services & Supplies)		(27,307	)		(361,477	)
Dialog Semiconductor PLC (Semiconductors & Semiconductor Equipment) (d)		(37,443	)		(781,413	)
Domino’s Pizza UK & IRL PLC (Hotels, Restaurants & Leisure)		(18,823	)		(145,509	)
DSG International PLC (Specialty Retail) (d)		(2,393,952	)		(576,218	)
FirstGroup PLC (Road & Rail)		(22,746	)		(123,366	)
Imagination Technologies Group PLC (Computers & Peripherals) (d)		(125,059	)		(1,044,461	)
Jazztel PLC (Diversified Telecommunication Services) (d)		(116,609	)		(713,315	)
Mothercare PLC (Multiline Retail)		(26,496	)		(185,838	)
Premier Foods PLC (Food Products) (d)		(878,162	)		(471,882	)
Punch Taverns PLC (Hotels, Restaurants & Leisure) (d)		(213,311	)		(279,164	)
Redrow PLC (Household Durables) (d)		(162,327	)		(356,282	)
Regus PLC (Commercial Services & Supplies)		(81,858	)		(153,413	)
Rightmove PLC (Media)		(3,196	)		(56,587	)
SIG PLC (Trading Companies & Distributors) (d)		(134,646	)		(314,418	)
St. James’s Place PLC (Insurance)		(14,303	)		(84,789	)
SuperGroup PLC (Specialty Retail) (d)		(6,432	)		(170,395	)
Taylor Wimpey PLC (Household Durables) (d)		(40,448	)		(26,288	)
Telecity Group PLC (Internet Software & Services) (d)		(2,933	)		(25,745	)
Thomas Cook Group PLC (Hotels, Restaurants & Leisure)		(42,753	)		(122,330	)
					(7,033,612	)
Total Common Stocks Sold Short (Proceeds $46,350,632)					(47,866,274	)
Exchange Traded Fund Sold Short (4.6%) (e)
United States (4.6%)
iShares MSCI EAFE Index Fund (Capital Markets)		(116,850	)		(7,415,301	)
Total Exchange Traded Fund Sold Short (Proceeds $7,103,660)					(7,415,301	)
Total Investments Sold Short (Proceeds $53,454,292)		(34.6	)%		(55,281,575	)
Total Investments, Net of Investments Sold Short (Cost $128,318,702)		99.3			158,506,471
Other Assets, Less Liabilities		0.7			1,118,700
Net Assets		100.0	%	$	159,625,171

†††	On a daily basis New York Life Investments confirms that the value of the Fund’s liquid assets (liquid portfolio securities and cash) is sufficient to cover its potential senior securities (e.g., futures, swaps, options).
‡	Less than one-tenth of a percent.
(a)	Security, or a portion thereof, is maintained in a segregated account at the Fund’s custodian as collateral for securities sold short (See Note 2(I)).
(b)	Illiquid security. The total market value of these securities at April 30, 2011 is $(489,269), which represents (0.3)% of the Fund’s net assets.
(c)	Fair valued security. The total market value of these securities at April 30, 2011 is $(102,230), which represents (0.1)% of the Fund’s net assets.
(d)	Non-income producing security.
(e)	Exchange Traded Fund—An investment vehicle that represents a basket of securities that is traded on an exchange.
(f)	At April 30, 2011, cost is $183,806,488 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	33,790,951
Gross unrealized depreciation		(3,809,393	)
Net unrealized appreciation	$	29,981,558

The following abbreviation is used in the above portfolio:

€—Euro

HK$—Hong Kong Dollar

62    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets and liabilities.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks (b)	$	205,233,633	$	—	$	12	$	205,233,645
Convertible Preferred Stock		37,048		—		—		37,048
Exchange Traded Fund		7,346,950		—		—		7,346,950
Preferred Stocks		1,022,548		—		—		1,022,548
Warrants		59,960		—		—		59,960
Short-Term Investment
Repurchase Agreement		—		87,895		—		87,895
Total Investments in Securities	$	213,700,139	$	87,895	$	12	$	213,788,046

Liability Valuation Inputs

	Quoted
	Prices in
	Active			Significant
	Markets for			Other		Significant
	Identical			Observable		Unobservable
	Assets			Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)			Total
Investments Sold Short (a)
Common Stocks Sold Short (c)	$	(47,764,032	)	$	—	$	(102,242	)	$	(47,866,274	)
Exchange Traded Fund Sold Short		(7,415,301	)		—		—			(7,415,301	)
Total Investments Sold Short Instruments	$	(55,179,333	)	$	—	$	(102,242	)	$	(55,281,575	)

(a)	For a complete listing of investments and their industries, see the Portfolio of Investments.
(b)	The level 3 security valued at $12 is held in Australia within Common Stock section of the Portfolio of Investments.
(c)	The level 3 security valued at $(102,242) is held in Japan within Common Stock Sold Short section of the Portfolio of Investments.

The Fund recognizes transfers between the levels as of the beginning of the period.

At October 31, 2010 and April 30, 2011 foreign equity securities were not fair valued, as a result there were no transfers between Level 1 and Level 2 for value measurements. (See Note 2)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

																								Change in
																								Unrealized
																								Appreciation
																								(Depreciation)
																								from
																								Investments
	Balance							Change in													Balance			Still
	as of			Accrued		Realized		Unrealized								Transfers			Transfers		as of			Held at
	October 31,			Discounts		Gain		Appreciation								in to			out of		April 30,			April 30,
Investments in Securities	2010			(Premiums)		(Loss)		(Depreciation)			Purchases		Sales			Level 3			Level 3		2011			2011 (a)
Common Stock
Australia	$	10		$	—	$	—	$	2		$	—	$	—		$	—		$	—	$	12		$	2
Common Stock Sold Short
Japan		—			—		1,328		(63,365	)		130,432		—			(170,637	)		—		(102,242	)		(25,135	)
Rights Sold Short
Hong Kong		(583	)		—		23		583			—		(23	)		—			—		—			—
Total	$	(573	)	$	—	$	1,351	$	(62,780	)	$	130,432	$	(23	)	$	(170,637	)	$	—	$	(102,230	)	$	(25,133	)

(a)  Included in “Net change in unrealized appreciation (depreciation) on investments” in the Statement of Operations.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    63

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

The table below sets forth the diversification of MainStay 130/30 International Fund investments by industry.

Industry Diversification

	Value			Percent†
Aerospace & Defense	$	1,352,299			0.8	%
Airlines		741,740			0.5
Auto Components		3,214,053			2.0
Automobiles		7,568,491			4.7
Beverages		1,486,151			0.9
Biotechnology		1,870,781			1.2
Building Products		54,367			0.0	‡
Capital Markets		10,997,855			6.9
Chemicals		6,589,256			4.1
Commercial Banks		20,683,117			13.0
Commercial Services & Supplies		772,069			0.5
Communications Equipment		995,825			0.6
Computers & Peripherals		767,123			0.5
Construction & Engineering		1,196,563			0.7
Construction Materials		69,653			0.0	‡
Consumer Finance		1,977,686			1.2
Containers & Packaging		777,379			0.5
Distributors		1,230,590			0.8
Diversified Financial Services		5,494,748			3.4
Diversified Telecommunication Services		6,832,664			4.3
Electric Utilities		1,892,599			1.2
Electrical Equipment		3,349,829			2.1
Electronic Equipment & Instruments		2,984,940			1.9
Energy Equipment & Services		3,522,483			2.2
Food & Staples Retailing		4,074,357			2.6
Food Products		7,586,595			4.8
Gas Utilities		780,571			0.5
Health Care Equipment & Supplies		418,695			0.3
Health Care Technology		3,009			0.0	‡
Hotels, Restaurants & Leisure		2,544,006			1.6
Household Durables		5,140,500			3.2
Independent Power Producers & Energy Traders		1,710,974			1.1
Industrial Conglomerates		4,153,936			2.6
Insurance		9,603,728			6.0
IT Services		2,252,162			1.4
Leisure Equipment & Products		57,428			0.0	‡
Machinery		10,804,207			6.8
Media		2,853,494			1.8
Metals & Mining		17,120,586			10.7
Multi-Utilities		1,106,818			0.7
Multiline Retail		483,842			0.3
Oil, Gas & Consumable Fuels		17,178,344			10.8
Paper & Forest Products		1,286,790			0.8
Pharmaceuticals		14,588,215			9.1
Professional Services		492,456			0.3
Real Estate Investment Trusts		1,322,066			0.8
Real Estate Management & Development		494,547			0.3
Road & Rail		905,885			0.6
Semiconductors & Semiconductor Equipment		2,284,568			1.4
Specialty Retail		3,439,131			2.2
Textiles, Apparel & Luxury Goods		1,401,545			0.9
Thrifts & Mortgage Finance		590,946			0.4
Tobacco		751,929			0.5
Trading Companies & Distributors		5,180,433			3.2
Transportation Infrastructure		671,752			0.4
Wireless Telecommunication Services		6,082,270			3.8
		213,788,046			133.9
Other Assets, Less Liabilities		(54,162,875	)		(33.9	)
Net Assets	$	159,625,171			100.0	%

†	Percentages indicated are based on Fund net assets
‡	Less than one-tenth of a percent.

64    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The table below sets forth the diversification of MainStay 130/30 International Fund investments sold short by industry.

	Value			Percent†
Airlines	$	(1,615,892	)		(1.0	)%
Auto Components		(127,843	)		(0.1	)
Automobiles		(925,041	)		(0.6	)
Beverages		(569,259	)		(0.4	)
Biotechnology		(2,162,423	)		(1.4	)
Building Products		(398,702	)		(0.2	)
Capital Markets		(7,999,287	)		(5.0	)
Chemicals		(1,209,864	)		(0.8	)
Commercial Banks		(1,180,014	)		(0.7	)
Commercial Services & Supplies		(917,568	)		(0.6	)
Communications Equipment		(869,639	)		(0.5	)
Computers & Peripherals		(2,372,865	)		(1.5	)
Construction & Engineering		(1,917,474	)		(1.2	)
Construction Materials		(23,840	)		(0.0	)‡
Consumer Finance		(722,633	)		(0.4	)
Distributors		(57,514	)		(0.0	)‡
Diversified Consumer Services		(20,645	)		(0.0	)‡
Diversified Financial Services		(284,304	)		(0.2	)
Diversified Telecommunication Services		(1,365,342	)		(0.9	)
Electrical Equipment		(998,870	)		(0.6	)
Electronic Equipment & Instruments		(668,586	)		(0.4	)
Energy Equipment & Services		(1,241,834	)		(0.8	)
Food & Staples Retailing		(69,430	)		(0.0	)‡
Food Products		(1,034,118	)		(0.6	)
Gas Utilities		(564,061	)		(0.4	)
Health Care Equipment & Supplies		(247,947	)		(0.2	)
Hotels, Restaurants & Leisure		(1,317,766	)		(0.8	)
Household Durables		(2,293,671	)		(1.4	)
Household Products		(599,504	)		(0.4	)
Independent Power Producers & Energy Traders		(73,176	)		(0.0	)‡
Industrial Conglomerates		(252,841	)		(0.2	)
Insurance		(563,704	)		(0.3	)
Internet & Catalog Retail		(2,036,413	)		(1.3	)
Internet Software & Services		(242,413	)		(0.1	)
IT Services		(404,914	)		(0.3	)
Machinery		(2,657,219	)		(1.7	)
Marine		(193,552	)		(0.1	)
Media		(1,901,116	)		(1.2	)
Metals & Mining		(3,797,739	)		(2.4	)
Multiline Retail		(341,733	)		(0.2	)
Oil, Gas & Consumable Fuels		(2,788,698	)		(1.7	)
Paper & Forest Products		(93,876	)		(0.1	)
Personal Products		(67,307	)		(0.0	)‡
Pharmaceuticals		(854,791	)		(0.5	)
Professional Services		(24,238	)		(0.0	)‡
Real Estate Management & Development		(118,387	)		(0.1	)
Road & Rail		(123,366	)		(0.1	)
Semiconductors & Semiconductor Equipment		(1,399,709	)		(0.9	)
Specialty Retail		(1,609,796	)		(1.0	)
Textiles, Apparel & Luxury Goods		(1,361,827	)		(0.9	)
Trading Companies & Distributors		(314,418	)		(0.2	)
Transportation Infrastructure		(198,013	)		(0.1	)
Water Utilities		(86,393	)		(0.1	)
	$	(55,281,575	)		(34.6	)%

†	Percentages indicated are based on Fund net assets.
‡	Less than one-tenth of a percent.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    65

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities before investments sold short, at value (identified cost $181,772,994)	$	213,788,046
Cash denominated in foreign currencies (identified cost $77,064)		77,478
Cash		6,679
Receivables:
Investment securities sold		2,895,906
Dividends		1,053,772
Other assets		141,036
Total assets		217,962,917
Liabilities
Investments sold short (proceeds $53,454,292)		55,281,575
Cash collateral due to broker		22
Payables:
Investment securities purchased		2,756,918
Manager (See Note 3)		136,785
Dividends on investments sold short		77,752
Professional fees		33,769
Custodian		25,827
Shareholder communication		15,440
Fund shares redeemed		6,587
Transfer agent (See Note 3)		1,865
Trustees		408
NYLIFE Distributors (See Note 3)		187
Accrued expenses		611
Total liabilities		58,337,746
Net assets	$	159,625,171
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	20,821
Additional paid-in capital		160,060,852
		160,081,673
Undistributed net investment income		1,015,745
Accumulated net realized gain (loss) on investments, investments sold short and foreign currency transactions		(31,684,336	)
Net unrealized appreciation (depreciation) on investments		32,015,052
Net unrealized appreciation (depreciation) on investments sold short		(1,827,283	)
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies		24,320
Net assets	$	159,625,171
Investor Class
Net assets applicable to outstanding shares	$	252,421
Shares of beneficial interest outstanding		33,049
Net asset value per share outstanding	$	7.64
Maximum sales charge (5.50% of offering price)		0.44
Maximum offering price per share outstanding	$	8.08
Class A
Net assets applicable to outstanding shares	$	122,065
Shares of beneficial interest outstanding		15,964
Net asset value per share outstanding	$	7.65
Maximum sales charge (5.50% of offering price)		0.45
Maximum offering price per share outstanding	$	8.10
Class C
Net assets applicable to outstanding shares	$	145,235
Shares of beneficial interest outstanding		19,345
Net asset value and offering price per share outstanding	$	7.51
Class I
Net assets applicable to outstanding shares	$	159,105,450
Shares of beneficial interest outstanding		20,753,081
Net asset value and offering price per share outstanding	$	7.67

66    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	2,628,330
Total income		2,628,330
Expenses
Manager (See Note 3)		737,433
Broker fees and charges on short sales		543,592
Dividends on investments sold short		163,915
Custodian		90,634
Professional fees		33,748
Registration		32,708
Shareholder communication		14,135
Transfer agent (See Note 3)		5,736
Trustees		1,967
Distribution/Service—Investor Class (See Note 3)		265
Distribution/Service—Class A (See Note 3)		130
Distribution/Service—Class C (See Note 3)		574
Miscellaneous		10,041
Total expenses before waiver/reimbursement		1,634,878
Expense waiver/reimbursement from Manager (See Note 3)		(22,294	)
Net expenses		1,612,584
Net investment income (loss)		1,015,746
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions		9,230,943
Investments sold short		(4,010,902	)
Foreign currency transactions		(25,426	)
Net realized gain (loss) on investments, investments sold short and foreign currency transactions		5,194,615
Net change in unrealized appreciation (depreciation) on:
Investments		15,363,062
Investments sold short		(1,032,479	)
Translation of other assets and liabilities in foreign currencies		3,418
Net change in unrealized appreciation (depreciation) on investments, investments sold short and foreign currency transactions		14,334,001
Net realized and unrealized gain (loss) on investments, investments sold short and foreign currency transactions		19,528,616
Net increase (decrease) in net assets resulting from operations	$	20,544,362

(a)  Dividends recorded net of foreign withholding taxes in the amount of $224,079.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    67

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,015,746		$	1,589,405
Net realized gain (loss) on investments, investments sold short and foreign currency transactions		5,194,615			4,784,954
Net change in unrealized appreciation (depreciation) on investments, investments sold short and foreign currency translations		14,334,001			5,047,602
Net increase (decrease) in net assets resulting from operations		20,544,362			11,421,961
Dividends to shareholders:
From net investment income:
Investor Class		(3,935	)		(2,435	)
Class A		(1,691	)		(2,160	)
Class C		(1,377	)		(1,314	)
Class I		(2,890,412	)		(2,760,270	)
Total dividends to shareholders		(2,897,415	)		(2,766,179	)
Capital share transactions:
Net proceeds from sale of shares		23,934,625			26,499,972
Net asset value of shares issued to shareholders in reinvestment of dividends		2,896,720			2,765,720
Cost of shares redeemed		(11,615,793	)		(23,259,559	)
Increase (decrease) in net assets derived from capital share transactions		15,215,552			6,006,133
Net increase (decrease) in net assets		32,862,499			14,661,915
Net Assets
Beginning of period		126,762,672			112,100,757
End of period	$	159,625,171		$	126,762,672
Undistributed net investment income at end of period	$	1,015,745		$	2,897,414

68    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Cash Flowsfor the six months ended April 30, 2011 (unaudited)

Cash flows used in operating activities:
Net increase in net assets resulting from operations	$	20,544,362
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
Investments purchased		(148,068,109	)
Investments sold		125,286,390
Purchases to cover securities sold short		(47,067,724	)
Securities sold short		56,569,463
Purchase of short term investments, net		470,439
Increase in investment securities sold receivable		(2,895,906	)
Increase in dividends and interest receivable		(550,318	)
Increase in other assets		(106,129	)
Increase in investment securities purchased payable		2,756,847
Increase in dividends payable for securities sold short		44,588
Decrease in cash collateral due to broker		(479	)
Increase in professional fees payable		13,112
Increase in custodian payable		10,675
Increase in shareholder communication payable		1,918
Increase in due to Trustees		149
Increase in due to manager		51,684
Decrease in due to transfer agent		(75	)
Increase in due to NYLIFE Distributors		45
Decrease in accrued expenses and other liabilities		(472	)
Net change in unrealized (appreciation) depreciation on investments		(15,363,062	)
Net realized gain from investments		(9,230,943	)
Net change in unrealized (appreciation) depreciation on securities sold short		1,032,479
Net realized loss from securities sold short		4,010,902
Net cash used in operating activities		(12,490,164	)
Cash flows from financing activities:
Proceeds from shares sold		23,962,979
Payment on shares redeemed		(11,609,206	)
Cash distributions paid		(695	)
Net cash from financing activities		12,353,078
Net decrease in cash:		(137,086	)
Cash at beginning of period		221,243
Cash at end of period	$	84,157

Non cash financing activities not included herein consist of all reinvestment of dividends and distributions of $2,896,720.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    69

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	6.77		$	6.31		$	5.20		$	8.74
Net investment income (loss) (a)		0.04			0.07			0.07			0.04
Net realized and unrealized gain (loss) on investments		0.97			0.52			1.04			(3.58	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		—			—			—
Total from investment operations		1.01			0.59			1.11			(3.54	)
Less dividends:
From net investment income		(0.14	)		(0.13	)		—			—
Net asset value at end of period	$	7.64		$	6.77		$	6.31		$	5.20
Total investment return (b)		15.12	%(c)		9.57	%		21.35	%		(40.50	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.16	%††		1.06	%		1.37	%		0.82	% ††
Net expenses (excluding short sale expenses)		1.70	%††		1.70	%		1.70	%		1.70	% ††
Expenses (including short sales expenses, before waiver/reimbursement)		2.85	%††		3.06	%		3.28	%		3.40	% ††
Short sale expenses		1.06	%††		1.18	%		1.37	%		1.19	% ††
Portfolio turnover rate		70	%		160	%		143	%		204	%
Net assets at end of period (in 000’s)	$	252		$	186		$	111		$	90

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

70    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
													September 28,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	6.77		$	6.31		$	5.19		$	10.32		$	10.00
Net investment income (loss) (a)		0.05			0.05			0.07			0.08			0.05
Net realized and unrealized gain (loss) on investments		0.97			0.55			1.05			(5.17	)		0.27
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		—			—			—			—
Total from investment operations		1.02			0.60			1.12			(5.09	)		0.32
Less dividends and distributions:
From net investment income		(0.14	)		(0.14	)		—			(0.02	)		—
From net realized gain on investments		—			—			—			(0.02	)		—
Total dividends and distributions		(0.14	)		(0.14	)		—			(0.04	)		—
Net asset value at end of period	$	7.65		$	6.77		$	6.31		$	5.19		$	10.32
Total investment return (b)		15.38	%(c)		9.49	%		21.58	%(d)		(49.50	%)		3.20	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.55	%††		0.88	%		1.27	%		0.96	%		6.17	%††
Net expenses (excluding short sales expenses)		1.60	%††		1.60	%		1.60	%		1.60	%		1.60	%††
Expenses (including short sales expenses, before waiver/reimbursement)		2.71	%††		2.87	%		3.13	%		3.11	%		7.37	%††
Short sale expenses		1.08	%††		1.15	%		1.32	%		1.05	%		0.98	%††
Portfolio turnover rate		70	%		160	%		143	%		204	%		26	%
Net assets at end of period (in 000’s)	$	122		$	75		$	97		$	61		$	32

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    71

Financial Highlights selected per share data and ratios

	Class C
													September 28,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	6.64		$	6.20		$	5.15		$	10.32		$	10.00
Net investment income (loss) (a)		0.02			0.02			0.02			(0.01	)		0.05
Net realized and unrealized gain (loss) on investments		0.94			0.52			1.03			(5.13	)		0.27
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		—			—			—			—
Total from investment operations		0.96			0.54			1.05			(5.14	)		0.32
Less dividends and distributions:
From net investment income		(0.09	)		(0.10	)		—			(0.01	)		—
From net realized gain on investments		—			—			—			(0.02	)		—
Total dividends and distributions		(0.09	)		(0.10	)		—			(0.03	)		—
Net asset value at end of period	$	7.51		$	6.64		$	6.20		$	5.15		$	10.32
Total investment return (b)		14.63	%(c)		8.84	%		20.39	%		(49.90	%)		3.10	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.57	%††		0.33	%		0.36	%		(0.08	%)		5.75	%††
Net expenses (excluding short sale expenses)		2.45	%††		2.45	%		2.45	%		2.41	%		2.35	%††
Expenses (including short sales expenses, before waiver/reimbursement)		3.61	%††		3.81	%		3.98	%		3.94	%		8.12	%††
Short sale expenses		1.07	%††		1.19	%		1.32	%		1.01	%		0.98	%††
Portfolio turnover rate		70	%		160	%		143	%		204	%		26	%
Net assets at end of period (in 000’s)	$	145		$	100		$	69		$	44		$	27

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

72    MainStay 130/30 International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
													September 28,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	6.80		$	6.34		$	5.21		$	10.32		$	10.00
Net investment income (loss) (a)		0.05			0.09			0.09			0.22			0.06
Net realized and unrealized gain (loss) on investments		0.98			0.52			1.04			(5.29	)		0.26
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		—			—			—			—
Total from investment operations		1.03			0.61			1.13			(5.07	)		0.32
Less dividends and distributions:
From net investment income		(0.16	)		(0.15	)		—			(0.02	)		—
From net realized gain on investments		—			—			—			(0.02	)		—
Total dividends and distributions		(0.16	)		(0.15	)		—			(0.04	)		—
Net asset value at end of period	$	7.67		$	6.80		$	6.34		$	5.21		$	10.32
Total investment return (b)		15.39	%(c)		9.83	%		21.69	%		(49.29	%)		3.20	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.52	%††		1.37	%		1.74	%		2.80	%		6.78	%††
Net expenses (excluding short sale expenses)		1.35	%††		1.35	%		1.35	%		1.35	%		1.35	%††
Expenses (including short sales expenses, before waiver/reimbursement)		2.44	%††		2.65	%		2.92	%		2.73	%		7.12	%††
Short sale expenses		1.06	%††		1.18	%		1.36	%		0.98	%		0.98	%††
Portfolio turnover rate		70	%		160	%		143	%		204	%		26	%
Net assets at end of period (in 000’s)	$	159,105		$	126,402		$	111,823		$	75,912		$	11,905

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    73

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds” and each individually, referred to as a “Fund”). These financial statements and notes relate to the MainStay 130/30 Core Fund, MainStay 130/30 Growth Fund and MainStay 130/30 International Fund (collectively, referred to as the “130/30 Funds” and each individually referred to as a “130/30 Fund”). Each is a diversified fund. Each 130/30 Fund is the successor of a series of Eclipse Funds Inc. with the same name (each a “Predecessor Fund”). The reorganizations of the Predecessor Funds with and into the respective 130/30 Funds occurred on February 26, 2010. All information and references to periods prior to February 26, 2010 relate to the respective Predecessor Fund.

A 130/30 fund is a fund that invests up to approximately 130 percent of its assets in long positions (either directly or indirectly through derivatives), while up to approximately 30 percent of its assets are sold short (either directly or indirectly through derivatives). The proceeds from the short strategies may be used to purchase all or a portion of the additional 30% of the long positions.

Class A, Class C and Class I shares of the 130/30 Funds commenced operations on the dates indicated below:

Commencement
of Operations	Funds
June 29, 2007	MainStay 130/30 Core Fund MainStay 130/30 Growth Fund
September 28, 2007	MainStay 130/30 International Fund

Investor Class shares for the 130/30 Funds commenced operations on February 28, 2008.

The 130/30 Funds each currently offer four classes of shares, Investor Class, Class A, Class C and Class I. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV without imposition of a front-end sales charge or a CDSC. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The four classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The investment objective for each of the 130/30 Funds is as follows:

The MainStay 130/30 Core Fund seeks long-term growth of capital, with income as a secondary consideration.

The MainStay 130/30 Growth Fund seeks long-term growth of capital.

The MainStay 130/30 International Fund seeks to provide long-term growth of capital with income as a secondary objective.

Note 2–Significant Accounting Policies

The 130/30 Funds prepare their financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the 130/30 Funds are open for business (“valuation date”).

“Fair value” is defined as the price that a 130/30 Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the 130/30 Funds. Unobservable inputs reflect each 130/30 Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the 130/30 Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the 130/30 Funds to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The 130/30 Funds may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have

74    MainStay 130/30 Funds

prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The 130/30 Funds have procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the 130/30 Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The 130/30 Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for each 130/30 Fund’s investments is included at the end of each 130/30 Fund’s Portfolio of Investments.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Options contracts are valued at the last posted settlement price on the market where such options are principally traded. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Foreign currency forward contracts are valued at their fair market values determined on the basis of the mean between the last current bid and ask prices based on dealer or exchange quotations and are generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the 130/30 Funds’ Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the 130/30 Funds’ Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the MainStay 130/30 International Fund held a security with a value of $12 and a security sold short with a value of $(102,242) that were valued in such a manner. Additionally at April 30, 2011, the MainStay 130/30 Core and MainStay 130/30 Growth Funds did not hold any securities that were valued in such a manner.

Certain events may occur between the time that foreign markets close, on which securities held by the 130/30 Funds principally trade, and the time at which the 130/30 Funds’ NAVs are calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisor conclude that such events may have affected the accuracy of the last price reported on the local foreign market, the Manager or Subadvisor may, pursuant to procedures adopted by the 130/30 Funds’ Board, adjust the value of the local price to reflect the impact on the price of such securities as a result of such events. In this instance, securities are generally categorized as Level 3 in the hierarchy.

Additionally, foreign equity securities are also fair valued whenever the movement of a particular index exceeds certain thresholds. In such cases, the securities are fair valued by applying factors provided by a third party vendor in accordance with the Fund’s policies and procedures and are generally categorized as Level 2 in the hierarchy. At April 30, 2011, foreign equity securities held by the 130/30 Funds were not fair valued.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued. Its illiquidity might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of a 130/30 Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the 130/30 Funds to rely on judgments that may be somewhat subjective in determining value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to a 130/30 Fund. Under the supervision of the Board, the Manager or Subadvisor determines the liquidity of the 130/30 Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued in such manner as the Board in good faith deems appropriate to reflect their fair market value.

mainstayinvestments.com    75

Notes to Financial Statements (unaudited) (continued)

(B) Income Taxes. Each of the 130/30 Funds is treated as a separate entity for federal income tax purposes. The 130/30 Funds’ policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of each 130/30 Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Investment income received by the 130/30 Funds from foreign sources may be subject to foreign income taxes. These foreign income taxes are generally withheld at the source.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the 130/30 Funds’ tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the 130/30 Funds’ financial statements. The 130/30 Funds’ federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The 130/30 Funds intend to declare and pay dividends of net investment income and distributions of net realized capital gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the respective 130/30 Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The 130/30 Funds record security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the 130/30 Funds are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual 130/30 Funds in proportion to the net assets of the respective 130/30 Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by each 130/30 Fund, including those of related parties to the 130/30 Funds, are shown in each 130/30 Fund’s Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The 130/30 Funds may enter into repurchase agreements to earn income. The 130/30 Funds may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the 130/30 Funds’ Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the 130/30 Funds invest in repurchase agreements, the 130/30 Funds’ custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the 130/30 Funds have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the respective 130/30 Fund.

(H) Futures Contracts. A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., foreign currency, interest rate, security, or securities index). The MainStay 130/30 Growth Fund is subject to equity price risk in the normal course of investment in these transactions. The MainStay 130/30 Growth Fund enters into futures contracts for market exposure. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking to market” such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. The MainStay 130/30 Growth Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin.” When the futures contract is closed, the MainStay 130/30 Growth Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract. As of April 30, 2011, the MainStay 130/30 Core Fund and the MainStay 130/30 International Fund did not hold any futures contracts.

The use of futures contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract or notional amounts and variation margin reflect the extent of the MainStay 130/30 Growth Fund’s involvement in open futures positions. Risks arise from the possible imperfect correlation in movements in the price of futures contracts,

76    MainStay 130/30 Funds

interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts. However, the MainStay 130/30 Growth Fund’s activities in futures contracts have minimal counterparty risk as they are conducted through regulated exchanges that guarantee the futures against default by the counterparty. In the event of a bankruptcy or insolvency of a futures commission merchant that holds margin on behalf of the MainStay 130/30 Growth Fund, the MainStay 130/30 Growth Fund may not be entitled to the return of all of the margin owed to the MainStay 130/30 Growth Fund, potentially resulting in a loss. The MainStay 130/30 Growth Fund invests in futures contracts to provide an efficient means of maintaining liquidity while being fully invested in the market. The MainStay 130/30 Growth Fund’s investment in futures contracts and other derivatives may increase the volatility of the MainStay 130/30 Growth Fund’s NAV and may result in a loss to the MainStay 130/30 Growth Fund. The MainStay 130/30 Growth Fund had no open futures contracts at April 30, 2011.

(I) Securities Sold Short. The 130/30 Funds typically engage in short sales as part of their investment strategies. When a 130/30 Fund enters into a short sale, it must segregate the cash proceeds from the security sold short or other securities, as collateral for its obligation to deliver the security upon conclusion of the sale. A gain, limited to the price at which the 130/30 Funds sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon termination of a short sale if the market price on the date the short position is closed out is less or greater, respectively, than the proceeds originally received. Any such gain or loss may be offset, completely or in part, by the change in the value of the hedged investments. Dividends declared on short positions existing on the record date are recorded on the ex-dividend date as a dividend expense on the Statement of Operations.

(J) Statement of Cash Flows. The cash amount shown in the Statement of Cash Flows of each 130/30 Fund is the amount included in the 130/30 Fund’s Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any Short-Term Investments or deposit at brokers for securities sold short or restricted cash. Cash may include domestic and foreign currency.

(K) Foreign Currency Forward Contracts. The 130/30 Funds may enter into foreign currency forward contracts, which are agreements to buy or sell currencies of different countries on a specified future date at a specified rate. The 130/30 Funds are subject to foreign currency exchange rate risk in the normal course of investing in these transactions. During the period the forward contract is open, changes in the value of the contract are recognized as unrealized gains or losses by ”marking to market” such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. Cash movement occurs on settlement date. When the forward contract is closed, the 130/30 Funds record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the 130/30 Funds’ basis in the contract. The 130/30 Funds enter into foreign currency forward contracts primarily to hedge their foreign currency denominated investments and receivables and payables against adverse movements in future foreign exchange rates or to try to enhance the 130/30 Funds’ returns.

The use of foreign currency forward contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract amount reflects the extent of a 130/30 Fund’s involvement in these financial instruments. Risks arise from the possible movements in the foreign exchange rates underlying these instruments. While the 130/30 Funds may enter into forward contracts to reduce currency exchange risks, changes in currency exchange rates may result in poorer overall performance for the 130/30 Funds than if they had not engaged in such transactions. Exchange rate movements can be large, depending on the currency, and can last for extended periods of time, affecting the value of the 130/30 Funds’ assets. Moreover, there may be an imperfect correlation between the 130/30 Funds’ holdings of securities denominated in a particular currency and the forward contracts entered into by the 130/30 Funds. Such imperfect correlation may prevent the 130/30 Funds from achieving the intended hedge or expose the 130/30 Funds to the risk of currency exchange loss. The unrealized appreciation (depreciation) on forward contracts reflects a 130/30 Fund’s exposure at valuation date to credit loss in the event of a counterparty’s failure to perform its obligations. As of April 30, 2011, the 130/30 Funds did not hold any foreign currency forward contracts.

(L) Foreign Currency Transactions. The books and records of the 130/30 Funds are kept in U.S. dollars. Prices of securities denominated in foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling exchange rates last quoted by any major U.S. bank at the following dates:

(i)  market value of investment securities, other assets and liabilities—at the valuation date, and

(ii)  purchases and sales of investment securities, income and expenses—at the date of such transactions.

The assets and liabilities that are denominated in foreign currency amounts are presented at the exchange rates and market values at the close of the period. The realized and unrealized changes in net assets arising from fluctuations in exchange rates and market prices of securities are not separately presented.

Net realized gain (loss) on foreign currency transactions represents net gains and losses on foreign currency forward contracts, net currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the 130/30 Funds’ books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or losses from valuing such foreign currency denominated assets and liabilities, other than investments at valuation date exchange rates, are reflected in unrealized foreign exchange gains or losses.

(M) Rights/Warrants. A right is a certificate that permits the holder to purchase a certain number of shares, or a fractional share, of a new stock from the issuer at a specific price. A warrant is an instrument that entitles the holder to buy an equity security at a specific price for a specific period of time. The 130/30 Funds generally enter into rights and warrants when securities are acquired through a corporate action. With respect to warrants in international markets, the securities are only purchased when the underlying security can not be purchased due to the many restrictions an industry and/or country might place on foreign investors. These investments can provide a

mainstayinvestments.com    77

Notes to Financial Statements (unaudited) (continued)

greater potential for profit or loss than an equivalent investment in the underlying security. Prices of these investments do not necessarily move in tandem with the prices of the underlying securities, and are speculative investments.

There is risk involved in the purchase of rights and warrants in that these investments are speculative investments. The 130/30 Funds could also lose the entire value of the investment in warrants if the warrant is not exercised by the date of its expiration. The securities are sold as soon as the opportunity becomes available. The 130/30 Funds are exposed to risk until each sale is completed.

(N) Concentration of Risk. The MainStay 130/30 International Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic instruments. These risks include those resulting from currency fluctuations, future adverse political and economic developments and possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. These risks are likely to be greater in emerging markets than in developed markets. The ability of issuers of debt securities held by the MainStay 130/30 International Fund to meet its obligations may be affected by economic or political developments in a specific country, industry or region.

(O) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the 130/30 Funds enter into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The 130/30 Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the 130/30 Funds that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the 130/30 Funds.

(P) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures about the 130/30 Funds’ derivative and hedging activities, including how such activities are accounted for and their effect on the 130/30 Funds’ financial positions, performance and cash flows. These derivatives are not accounted for as hedging instruments.

MainStay 130/30 Core Fund

The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2011 is as follows:

Realized Gain (Loss)

	Statement of	Equity
	Operations	Contracts
	Location	Risk			Total
Rights Sold Short	Net realized gain (loss) on investments sold short	$	(7,059	)	$	(7,059	)
Total Realized Loss		$	(7,059	)	$	(7,059	)

Change in Unrealized Appreciation (Depreciation)

	Statement of	Equity
	Operations	Contracts
	Location	Risk			Total
Rights Sold Short	Net change in unrealized appreciation (depreciation) on investments sold short	$	(4,290	)	$	(4,290	)
Total Change in Unrealized Appreciation (Depreciation)		$	(4,290	)	$	(4,290	)

Number of Contracts, Notional Amounts or Shares/Units (1)

	Equity
	Contracts
	Risk	Total
Rights Sold Short (2)	(9,533)–0	(9,533)–0

(1)	Amount disclosed represents the minimum and maximum held during the six-month period ended April 30, 2011.
(2)	Amount(s) represent(s) number of contracts or number of shares/units.

MainStay 130/30 Growth Fund

The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2011 is as follows:

Realized Gain (Loss)

	Statement of	Equity
	Operations	Contracts
	Location	Risk		Total
Futures Contracts	Net realized gain (loss) on futures transactions	$	6,187	$	6,187
Total Realized Gain		$	6,187	$	6,187

Number of Contracts, Notional Amounts or Shares/Units (1)

	Equity
	Contracts
	Risk		Total
Futures Contracts (2)		2		2

(1)	Amount disclosed represents the weighted average held during the six-month period ended April 30, 2011.
(2)	Amount(s) represent(s) number of contracts or number of shares/units.

78    MainStay 130/30 Funds

MainStay 130/30 International Fund

Fair value of derivatives as of April 30, 2011:

Asset Derivatives

	Statement of
	Assets and	Equity
	Liabilities	Contracts
	Location	Risk		Total
Warrants	Investment in securities, at value	$	59,960	$	59,960
Total Fair Value		$	59,960	$	59,960

The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2011 is as follows:

Realized Gain (Loss)

	Statement of	Equity
	Operations	Contracts
	Location	Risk		Total
Rights	Net realized gain (loss) on security transactions	$	83,715	$	83,715
Total Realized Gain (Loss)		$	83,715	$	83,715

Change in Unrealized Appreciation (Depreciation)

	Statement of	Equity
	Operations	Contracts
	Location	Risk		Total
Rights	Net change in unrealized appreciation (depreciation) on security transactions	$	119	$	119
Warrants	Net change in unrealized appreciation (depreciation) on security transactions		53,430		53,430
Rights Sold Short	Net change in unrealized appreciation (depreciation) on investments sold short		583		583
Total Change in Unrealized Appreciation (Depreciation)		$	54,132	$	54,132

Number of Contracts, Notional Amounts or Shares/Units (1)

	Equity
	Contracts
	Risk			Total
Rights (2)		20,465			20,465
Warrants (2)		82,317			82,317
Rights Sold Short (2)		(7,070	)		(7,070	)

(1)	Amount disclosed represents the weighted average held during the six-month period ended April 30, 2011.
(2)	Amount(s) represent(s) number of contracts or number of shares/units.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the 130/30 Funds’ Manager, pursuant to a Management Agreement, as amended (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the 130/30 Funds. Except for the portion of salaries and expenses that are the responsibility of the 130/30 Funds, the Manager also pays the salaries and expenses of all personnel affiliated with the 130/30 Funds and the operational expenses of the 130/30 Funds. Madison Square Investors LLC (“Madison Square Investors” or “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to and manages the day-to-day investment operations of the 130/30 Funds. Pursuant to the terms of a Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and Madison Square Investors, New York Life Investments pays for the Subadvisor’s services.

Each 130/30 Fund is contractually obligated to pay the Manager a monthly fee for services performed and facilities furnished at an annual rate of average daily net assets of each 130/30 Fund as follows:

MainStay 130/30 Core Fund	1.00	%
MainStay 130/30 Growth Fund	1.00
MainStay 130/30 International Fund	1.10

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses do not exceed the percentages of average daily net assets for Class A shares as set forth in the table below:

	Class A
MainStay 130/30 Core Fund		1.50	%
MainStay 130/30 Growth Fund		1.50
MainStay 130/30 International Fund		1.60

New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points, to the other share classes of each 130/30 Fund. This expense limitation agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

Additionally, the Manager has agreed to voluntarily waive fees and/or reimburse expenses of the appropriate class of each 130/30 Fund so that Total Annual Fund Operating Expenses do not exceed the following percentages:

	Investor
	Class			Class C
MainStay 130/30 Core Fund		1.60	%		2.35	%
MainStay 130/30 Growth Fund		1.60			2.35
MainStay 130/30 International Fund		1.70			2.45

mainstayinvestments.com    79

Notes to Financial Statements (unaudited) (continued)

These voluntary waivers or reimbursements may be discontinued at any time without notice.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the 130/30 Funds and waived/reimbursed its fees pursuant to the agreements described above as follows:

			Waived
	Fees		Fees
MainStay 130/30 Core Fund	$	1,559,518	$	—
MainStay 130/30 Growth Fund		37,136		68,326
MainStay 130/30 International Fund		737,433		22,294

State Street Bank & Trust (“State Street”), 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the 130/30 Funds pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the 130/30 Funds, maintaining the general ledger and sub-ledger accounts for the calculation of the 130/30 Funds’ respective NAVs, and assisting New York Life Investments in conducting various aspects of the 130/30 Funds’ administrative operations. For providing these services to the 130/30 Funds, State Street is compensated by New York Life Investments.

(B) Distribution, Service and Shareholder Fees. The Trust, on behalf of the 130/30 Funds, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The 130/30 Funds have adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from applicable Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class C Plans, applicable Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares of the 130/30 Funds for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the 130/30 Funds’ shares and service activities.

(C) Sales Charges. The 130/30 Funds were advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares for the six-month period ended April 30, 2011 were as follows:

MainStay 130/30 Core Fund
Investor Class	$	268
Class A		518

MainStay 130/30 Growth Fund
Investor Class	$	242
Class A		99

MainStay 130/30 International Fund
Investor Class	$	291
Class A		107

The MainStay 130/30 Core and MainStay 130/30 International Fund were also advised that the Distributor retained CDSCs on redemptions of Class C shares of $25 and $13, respectively for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the 130/30 Funds’ transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the 130/30 Funds for the six-month period ended April 30, 2011, were as follows:

MainStay 130/30 Core Fund	Total
Investor Class	$	116
Class A		4
Class C		414
Class I		5,457

MainStay 130/30 Growth Fund	Total
Investor Class	$	159
Class A		316
Class C		209
Class I		5,146

MainStay 130/30 International Fund	Total
Investor Class	$	178
Class A		4
Class C		97
Class I		5,457

(E) Small Account Fees. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the 130/30 Funds have implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

80    MainStay 130/30 Funds

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the 130/30 Funds with the following values and percentages of net assets as follows:

MainStay 130/30 Core Fund
Investor Class	$	24,372	17.8	%
Class A		21,223	7.0
Class C		20,580	4.7
Class I		21,274,994	7.8

MainStay 130/30 Growth Fund
Investor Class	$	23,373	12.6	%
Class A		22,600	6.9
Class C		21,950	8.7
Class I		1,188,538	23.1

MainStay 130/30 International Fund
Investor Class	$	22,768	9.0	%
Class A		20,040	16.4
Class C		19,397	13.4
Class I		27,471	0.0	‡

‡  Less than one-tenth of a percent.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the 130/30 Funds by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the 130/30 Funds through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were as follows:

MainStay 130/30 Core Fund	$	3,935
MainStay 130/30 Growth Fund		94
MainStay 130/30 International Fund		1,830

Effective March 18, 2011, the 130/30 Funds are no longer directly responsible for any portion of the cost of legal services provided to the 130/30 Funds by OGC.

Note 4–Federal Income Tax

MainStay 130/30 Core Fund

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $14,138,361 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the MainStay 130/30 Core Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2017	$	14,138

MainStay 130/30 Growth Fund

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $2,523,451 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the MainStay 130/30 Growth Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2017	$	2,523

MainStay 130/30 International Fund

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $34,750,327 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the MainStay 130/30 International Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2016	$	5,878
	2017		28,872
	Total	$	34,750

The tax character of distributions paid during the year ended October 31, 2010 shown in the Statement of Changes in Net Assets, was as follows:

	2010
	Tax Based		Tax Based
	Distributions		Distributions
	from Ordinary		from Long-Term
	Income		Capital Gains		Total
MainStay 130/30 Core Fund	$	1,164,737	$	—	$	1,164,737
MainStay 130/30 Growth Fund		—		—		—
MainStay 130/30 International Fund		2,766,179		—		2,766,179

mainstayinvestments.com    81

Notes to Financial Statements (unaudited) (continued)

Note 5–Foreign Currency Transactions

MainStay 130/30 International Fund

As of April 30, 2011, the Fund held the following foreign currencies:

	Currency			Cost			Value
Australian Dollar (a)	AUD	(475	)	USD	(519	)	USD	(521	)
Euro	EUR	2,161			3,207			3,201
Hong Kong Dollar (a)	HKD	(176	)		(23	)		(23	)
Israeli Shekel	ILS	110,584			32,566			32,715
Japanese Yen	JPY	1,215,914			14,927			14,990
Pound Sterling	GBP	7,788			12,944			13,009
Swiss Franc	CHF	12,202			13,962			14,107
Total				USD	77,064		USD	77,478

(a)  Currency was overdrawn as of April 30, 2011.

Note 6–Custodian

State Street is the custodian of the cash and the securities of the 130/30 Funds. Custodial fees are charged to the 130/30 Funds based on the market value of securities in the 130/30 Funds and the number of certain cash transactions incurred by the 130/30 Funds.

Note 7–Line of Credit

The 130/30 Funds and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the 130/30 Funds on the amended credit agreement during the six-month period ended April 30, 2011.

Note 8–Purchases and Sales of Securities (in 000’s)

For the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were as follows:

	MainStay 130/30				MainStay 130/30				MainStay 130/30
	Core Fund				Growth Fund				International Fund
	Purchases		Sales		Purchases		Sales		Purchases		Sales
U.S. Government Securities	$	—	$	—	$	—	$	—	$	—	$	—
All Others		207,671		358,604		7,684		12,849		148,068		125,286
Total	$	207,671	$	358,604	$	7,684	$	12,849	$	148,068	$	125,286

82    MainStay 130/30 Funds

Note 9–Capital Share Transactions

MainStay 130/30 Core Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		6,343		$	49,874
Shares issued to shareholders in reinvestment of dividends		3			25
Shares redeemed		(1,243	)		(10,241	)
Net increase (decrease)		5,103		$	39,658
Year ended October 31, 2010:
Shares sold		3,416		$	23,443
Shares issued to shareholders in reinvestment of dividends		9			65
Shares redeemed		(147	)		(924	)
Net increase (decrease) in shares outstanding before conversion		3,278			22,584
Shares converted from Investor Class (See Note 1)		(442	)		(3,035	)
Net increase (decrease)		2,836		$	19,549
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		14,485		$	117,741
Shares issued to shareholders in reinvestment of dividends		21			162
Shares redeemed		(10,053	)		(78,772	)
Net increase (decrease)		4,453		$	39,131
Year ended October 31, 2010:
Shares sold		38,796		$	280,300
Shares issued to shareholders in reinvestment of dividends		30			205
Shares redeemed		(29,511	)		(196,775	)
Net increase (decrease) in shares outstanding before conversion		9,315			83,730
Shares converted into Class A (See Note 1)		442			3,035
Shares converted from Class A (a)		(1	)		(8	)
Net increase (decrease)		9,756		$	86,757
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		13,454		$	98,006
Shares issued to shareholders in reinvestment of dividends		4			32
Shares redeemed		(1,222	)		(9,073	)
Net increase (decrease)		12,236		$	88,965
Year ended October 31, 2010:
Shares sold		6,170		$	42,929
Shares redeemed		(24,324	)		(159,236	)
Net increase (decrease)		(18,154	)	$	(116,307	)
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		3,759,652		$	29,537,830
Shares issued to shareholders in reinvestment of dividends		151,742			1,166,377
Shares redeemed		(17,637,190	)		(141,325,239	)
Net increase (decrease)		(13,725,796	)	$	(110,621,032	)
Year ended October 31, 2010:
Shares sold		21,018,600		$	144,417,239
Shares issued to shareholders in reinvestment of dividends		158,510			1,084,207
Shares redeemed		(4,981,718	)		(34,703,839	)
Net increase (decrease) in shares outstanding before conversion		16,195,392			110,797,607
Shares converted into Class I (a)		1			8
Net increase (decrease)		16,195,393		$	110,797,615

MainStay 130/30 Growth Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		5,686		$	48,077
Shares redeemed		(982	)		(8,589	)
Net increase (decrease)		4,704		$	39,488
Year ended October 31, 2010:
Shares sold		8,406		$	63,475
Shares redeemed		(5,134	)		(38,755	)
Net increase (decrease)		3,272		$	24,720
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		13,355		$	119,745
Shares redeemed		(22,958	)		(202,186	)
Net increase (decrease)		(9,603	)	$	(82,441	)
Year ended October 31, 2010:
Shares sold		46,247		$	353,699
Shares redeemed		(21,412	)		(159,860	)
Net increase (decrease) in shares outstanding before conversion		24,835			193,839
Shares converted from Class A (a)		(1,332	)		(10,280	)
Net increase (decrease)		23,503		$	183,559
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		6,235		$	54,633
Shares redeemed		(456	)		(3,896	)
Net increase (decrease)		5,779		$	50,737
Year ended October 31, 2010:
Shares sold		13,525		$	107,106
Shares redeemed		(14,097	)		(100,116	)
Net increase (decrease)		(572	)	$	6,990

mainstayinvestments.com    83

Notes to Financial Statements (unaudited) (continued)

Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		260,793		$	2,310,908
Shares redeemed		(754,787	)		(6,623,473	)
Net increase (decrease)		(493,994	)	$	(4,312,565	)
Year ended October 31, 2010:
Shares sold		289,232		$	2,203,861
Shares redeemed		(8,016,108	)		(62,569,977	)
Net increase (decrease) in shares outstanding before conversion		(7,726,876	)		(60,366,116	)
Shares converted into Class I (a)		1,321			10,280
Net increase (decrease)		(7,725,555	)	$	(60,355,836	)

MainStay 130/30 International Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		7,486		$	52,531
Shares issued to shareholders in reinvestment of dividends		569			3,906
Shares redeemed		(2,408	)		(16,670	)
Net increase (decrease)		5,647		$	39,767
Year ended October 31, 2010:
Shares sold		10,716		$	66,638
Shares issued to shareholders in reinvestment of dividends		384			2,435
Shares redeemed		(1,358	)		(8,605	)
Net increase (decrease)		9,742		$	60,468
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		19,999		$	141,705
Shares issued to shareholders in reinvestment of dividends		240			1,648
Shares redeemed		(15,313	)		(104,006	)
Net increase (decrease)		4,926		$	39,347
Year ended October 31, 2010:
Shares sold		6,096		$	38,868
Shares issued to shareholders in reinvestment of dividends		275			1,741
Shares redeemed		(7,610	)		(47,119	)
Net increase (decrease) in shares outstanding before conversion		(1,239	)		(6,510	)
Shares converted from Class A (a)		(3,061	)		(18,452	)
Net increase (decrease)		(4,300	)	$	(24,962	)
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		4,296		$	30,126
Shares issued to shareholders in reinvestment of dividends		183			1,237
Shares redeemed		(236	)		(1,689	)
Net increase (decrease)		4,243		$	29,674
Year ended October 31, 2010:
Shares sold		5,989		$	37,783
Shares issued to shareholders in reinvestment of dividends		203			1,274
Shares redeemed		(2,286	)		(14,305	)
Net increase (decrease)		3,906		$	24,752
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		3,372,911		$	23,710,263
Shares issued to shareholders in reinvestment of dividends		420,048			2,889,929
Shares redeemed		(1,619,235	)		(11,493,428	)
Net increase (decrease)		2,173,724		$	15,106,764
Year ended October 31, 2010:
Shares sold		4,276,409		$	26,356,683
Shares issued to shareholders in reinvestment of dividends		434,005			2,760,270
Shares redeemed		(3,784,390	)		(23,189,530	)
Net increase (decrease) in shares outstanding before conversion		926,024			5,927,423
Shares converted into Class I (a)		3,051			18,452
Net increase (decrease)		929,075		$	5,945,875

(a)  In addition to any automatic conversion features described above in Note 1 with respect to Investor Class and Class A shares, an investor generally may also elect to convert their shares on a voluntary basis into another share class of the same fund for which an investor is eligible. However, the following limitations apply:

•   Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and

•   All Class C shares are ineligible for a voluntary conversion.

These limitations do not impact any automatic conversion features described in Note 1 with respect to Investor Class and Class A shares.

An investor or an investor’s financial intermediary may contact the applicable 130/30 Fund to request a voluntary conversion between shares classes of the same 130/30 Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will be made on the basis of the relevant NAVs of the two classes without the imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an investor may automatically be converted back to their original share class, or into another share class, if appropriate.

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the 130/30 Funds as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the 130/30 Funds’ management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

84    MainStay 130/30 Funds

Board Consideration and Approval of Management Agreements and Subadvisory Agreements (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreements between the MainStay 130/30 Core Fund, MainStay 130/30 Growth Fund and MainStay 130/30 International Fund (“130/30 Funds”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreements between New York Life Investments and Madison Square Investors LLC (“MSI”) on behalf of the 130/30 Funds.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and MSI as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and MSI in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and MSI at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the 130/30 Funds prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the 130/30 Funds’ investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and MSI on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the 130/30 Funds, and the rationale for any differences in the 130/30 Funds’ management and/or subadvisory fees and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the 130/30 Funds to New York Life Investments and its affiliates, including MSI as subadvisor to the 130/30 Funds, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the 130/30 Funds prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the 130/30 Funds by New York Life Investments and MSI; (ii) the investment performance of the 130/30 Funds, New York Life Investments and MSI; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates, including MSI as subadvisor to the 130/30 Funds, from their relationship with the 130/30 Funds; (iv) the extent to which economies of scale may be realized as the 130/30 Funds grow, and the extent to which economies of scale may benefit 130/30 Funds investors; and (v) the reasonableness of the 130/30 Funds’ management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the 130/30 Funds, and that the 130/30 Funds’ shareholders, having had the opportunity to consider other investment options, have chosen to invest in the 130/30 Funds. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and MSI

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the 130/30 Funds. The Board evaluated New York Life Investments’ experience in serving as manager of the 130/30 Funds, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the 130/30 Funds, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the 130/30 Funds’ legal and compliance environment, for overseeing MSI’s compliance with the 130/30 Funds’ policies and investment objectives, and for implementing Board directives as they relate to the 130/30 Funds. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the 130/30 Funds, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the

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Board Consideration and Approval of Management Agreements and Subadvisory Agreements (Unaudited) (continued)

130/30 Funds’ officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the 130/30 Funds’ prospectus.

The Board also examined the nature, extent and quality of the services that MSI provides to the 130/30 Funds. The Board evaluated MSI’s experience in serving as subadvisor to the 130/30 Funds and managing other portfolios. It examined MSI’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at MSI, and MSI’s overall legal and compliance environment. The Board also reviewed MSI’s willingness to invest in personnel designed to benefit the 130/30 Funds. In this regard, the Board considered the experience of the 130/30 Funds’ portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the 130/30 Funds likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and MSI’s experience, personnel, operations and resources.

Investment Performance

In evaluating the 130/30 Funds’ investment performance, the Board considered investment performance results in light of the 130/30 Funds’ investment objectives, strategies and risks, as disclosed in the 130/30 Funds’ prospectus. Throughout the year, the Board particularly considered the detailed investment report on the 130/30 Funds’ performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the 130/30 Funds’ gross and net returns, the 130/30 Funds’ investment performance relative to relevant investment categories and Fund benchmarks, the 130/30 Funds’ risk-adjusted investment performance, and the 130/30 Funds’ investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the 130/30 Funds as compared to peer funds. In evaluating the performance of the 130/30 Funds, the Board also took into account whether the 130/30 Funds had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the 130/30 Funds’ investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the 130/30 Funds’ investment performance, as well as discussions between the 130/30 Funds’ portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board also considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the 130/30 Funds, along with ongoing efforts by New York Life Investments and MSI to enhance investment returns, supported a determination to approve the Agreements. The 130/30 Funds disclose more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the 130/30 Funds’ prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and MSI

The Board considered the costs of the services provided by New York Life Investments and MSI under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the 130/30 Funds. Because MSI is an affiliate of New York Life Investments whose subadvisory fees are paid directly by New York Life Investments, the Board considered cost and profitability information for New York Life Investments and MSI in the aggregate.

In evaluating any costs and profits of New York Life Investments and its affiliates, including MSI, due to their relationships with the 130/30 Funds, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the 130/30 Funds, and that New York Life Investments is responsible for paying the subadvisory fees for the 130/30 Funds. The Board acknowledged that New York Life Investments and MSI must be in a position to pay and retain experienced professional personnel to provide services to the 130/30 Funds, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the 130/30 Funds. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that each 130/30 Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the 130/30 Funds, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the 130/30 Funds, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the 130/30 Funds. The Board recognized, for example, the benefits to MSI from legally permitted “soft-dollar” arrangements by

86    MainStay 130/30 Funds

which brokers provide research and other services to MSI in exchange for commissions paid by certain 130/30 Funds with respect to trades on the respective 130/30 Funds’ portfolio securities. The Board further considered that, in addition to fees earned by New York Life Investments for managing the 130/30 Funds, New York Life Investments’ affiliates also earn revenues from serving the 130/30 Funds in various other capacities, including as the 130/30 Funds’ transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the 130/30 Funds to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the 130/30 Funds to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the 130/30 Funds on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates (including MSI) due to their relationships with the 130/30 Funds supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the 130/30 Funds Grow

The Board also considered whether the 130/30 Funds’ expense structures permitted economies of scale to be shared with 130/30 Fund investors. The Board reviewed information from New York Life Investments showing how the 130/30 Funds’ management fee schedules compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the 130/30 Funds’ management fee schedules hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the 130/30 Funds benefit from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the 130/30 Funds in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the 130/30 Funds’ expense structures appropriately reflect economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the 130/30 Funds’ expense structures as the 130/30 Funds grow over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the 130/30 Funds’ expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the 130/30 Funds to New York Life Investments, since the fees to be paid to MSI are paid by New York Life Investments, not the 130/30 Funds. The Board also considered the impact of the 130/30 Funds’ expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the 130/30 Funds’ total ordinary operating expenses.

In assessing the reasonableness of the 130/30 Funds’ fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and MSI on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the 130/30 Funds. In this regard, the Board took into account explanations from New York Life Investments and MSI about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the 130/30 Funds’ management fees and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the 130/30 Funds based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the 130/30 Funds’ average net assets. The Board took into account information from New York Life Investments showing that the 130/30 Funds’ transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the 130/30 Funds’ transfer agent, charges the 130/30 Funds are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the 130/30 Funds.

The Board observed that, because the 130/30 Funds’ transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class

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Board Consideration and Approval of Management Agreements and Subadvisory Agreements (Unaudited) (continued)

shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the 130/30 Funds’ management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

88    MainStay 130/30 Funds

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the 130/30 Funds’ securities is available without charge, upon request, (i) by visiting the MainStay Funds’ website at mainstayinvestments.com; and (ii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The 130/30 Funds are required to file with the SEC its proxy voting records for each of its funds for the 12-month period ending June 30 on Form N-PX. The most recent Form N-PX is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the MainStay Funds’ website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

Each 130/30 Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Each 130/30 Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com    89

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23015 MS136-11 MS30ALL10-06/11

C2

MainStay Cash Reserves Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	10
Financial Statements	15
Notes to Financial Statements	19
Board Consideration and Approval of Management Agreement	23
Proxy Voting Policies and Procedures and Proxy Voting Record	26
Shareholder Reports and Quarterly Portfolio Disclosure	26

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Average Annual Total Returns for the Period Ended April 30, 2011

														Gross
														Expenses
Class	Sales Charge	Six Months			One Year			Five Years			Ten Years			Ratio2
Class I Shares3	No Sales Charge		0	.01%		0	.01%		2	.06%		1	.97%		0	.59%
Sweep Shares3	No Sales Charge		0	.01		0	.01		1	.76		1	.57		1	.09

7-Day Current Yield: 0.01%

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.

The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.

3.

As of April 30, 2011, MainStay Cash Reserves Fund had an effective 7-day yield of 0.01% and a 7-day current yield of 0.01% for Class I shares and an effective 7-day yield of 0.01% and a 7-day current yield of 0.01% for Sweep Shares. These yields reflect certain expense limitations. Had these expense limitations not been in effect, the effective 7-day yield and the 7-day current yield would have been −0.39% and −0.39% for Class I shares, respectively, and −0.89% and −0.89% for Sweep Shares, respectively. The current yield reflects the Fund’s earnings better than does the Fund’s total return. For information on current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
Average Lipper Institutional Money Market Fund4		0	.03%		0	.07%		2	.23%		2	.11%

4.   The average Lipper institutional money market fund is an equally weighted performance average adjusted for capital gains distributions and income dividends of all of the institutional money market funds in the Lipper Universe. Lipper Inc., a wholly-owned subsidiary of Thomson Reuters, is an independent monitor of mutual fund performance. Results do not reflect any deduction of sales charges, expenses or taxes. Lipper averages are not class specific. Lipper returns are unaudited.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Cash Reserves Fund

Cost in Dollars of a $1,000 Investment in MainStay Cash Reserves Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Class I Shares	$	1,000.00	$	1,000.10	$	1.04	$	1,023.80	$	1.05
Sweep Shares	$	1,000.00	$	1,000.10	$	1.04	$	1,023.80	$	1.05

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.21% for Class I Shares and 0.21% for Sweep Shares) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com7

Portfolio Composition as of April 30, 2011 (Unaudited)

Other Commercial Paper	44.5
Financial Company Commercial Paper	13.8
Treasury Repurchase Agreements	12.9
Treasury Debt	9.3
Other Notes	8.0
Government Agency Debt	6.3
Government Agency Repurchase Agreement	4.3
Asset - Backed Commercial Paper	1.2
Other Assets, Less Liabilities	(0.3	)

See Portfolio of Investments beginning on page 10 for specific holdings within these categories.

8MainStay Cash Reserves Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers David E. Clement, CFA, and Thomas J. Girard of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Cash Reserves Fund perform relative to its peers during the six months ended April 30, 2011?

As of April 30, 2011, MainStay Cash Reserves Fund Class I shares and Sweep Shares each provided a 7-day current yield of 0.01% and a 7-day effective yield of 0.01%. For the six months ended April 30, 2011, MainStay Cash Reserves Fund Class I shares and Sweep Shares both returned 0.01%. Both share classes underperformed the 0.03% return of the average Lipper² institutional money market fund for the six months ended April 30, 2011.

What factors affected the Fund’s relative performance during the reporting period?

A variety of factors affected the Fund’s relative performance during the reporting period. Repurchase rates declined dramatically, which detracted from the Fund’s relative performance because we had been using these securities to help satisfy the five-day liquidity requirement instituted by regulators last year. During the reporting period, some of the longer-dated higher-yielding floating-rate securities backed by the Federal Deposit Insurance Corporation (FDIC) that we purchased in 2009 began to mature. The maturities of the higher-yielding FDIC-backed securities detracted from performance. An underweight position in longer-maturity European bank securities—a higher-yielding sector—detracted from relative performance. On the positive side, asset-backed securities and floating-rate agency securities added to the Fund’s relative performance.

What was the Fund’s duration³ (or days-to-maturity) strategy during the reporting period?

During the reporting period, we kept the Fund’s average weighted duration at 50 days or longer (but less than 60 days). We view this as a longer duration because regulations prevent money market funds from maintaining an average weighted duration longer than 60 days. Our positioning sought to capitalize on an upward-sloping yield curve,⁴ primarily by investing in longer-maturity Treasury coupon securities (270 to 397 days to maturity at the time of purchase).

What specific factors, risks or market forces prompted significant decisions for the Fund during the reporting period?

The Federal Open Market Committee (FOMC) kept the federal funds target rate in a very low range, which gave us the confidence to go out further on an upward-sloping yield curve. The results were investments primarily in longer-dated Treasury coupon securities and asset-backed securities. (Asset-backed securities must be recorded as though they will mature on their legal maturity date even though their average lives are typically much shorter.) We were comfortable “using duration” in this environment, that is, having a longer average life, because the FOMC stated that economic conditions were “likely to warrant exceptionally low levels for the federal funds rate for an extended period.”

We hedged this positioning by participating in the floating-rate securities market. In our opinion, the use of floating-rate securities offered two potential advantages. First, if interest rates rose we would participate in the upward movement. Second, floating-rate securities offered what we felt were compelling yields compared to other available investments.

Our negative view on foreign banks continued during the reporting period and was reinforced during the European sovereign debt crisis. For the most part, we avoided this sector, except for certain shorter-dated commercial paper investments in some of the stronger issuers.

During the reporting period, which market segments were the strongest contributors to the Fund’s performance and which market segments were particularly weak?

The strongest contributors to the Fund’s performance included floating-rate securities (corporate and agency floaters) and asset-backed securities. The weakest contributors to the Fund’s performance were repurchase agreements and the Fund’s nonparticipation in longer-maturity Yankee bank issues.

Did the Fund make any significant purchases or sales during the reporting period?

Significant purchases that added to the Fund’s return during the reporting period included the asset-backed securities of Great America Leasing Receivables and Macquarie Equipment Funding Trust. The Fund’s yield was also strengthened by investments in the floating-rate securities of Federal Farm Credit Bank, Federal Home Loan Bank, Toronto-Dominion Bank and Sanofi-Aventis S.A. There were no significant sales during the reporting period.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, we increased the Fund’s weightings in repurchase agreements, Treasury securities and asset-backed securities. The Fund decreased its weightings in FDIC-backed securities and agency securities.

 
 1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.
2. See footnote on page 6 for more information on Lipper Inc.
3. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of days and is considered a more accurate sensitivity gauge than average maturity.
4. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.

  
The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com9

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Principal		Amortized
	Amount		Cost
Short-Term Investments 100.3%†
Asset-Backed Commercial Paper 1.2%
Straight-A Funding LLC 0.20%, due 7/5/11 (a)(b)	$	9,005,000	$	9,001,748
				9,001,748
Financial Company Commercial Paper 13.8%
Bank of America Corp. 0.24%, due 5/9/11 (a)		9,250,000		9,249,507
BNP Paribas Finance, Inc. 0.08%, due 5/6/11 (a)		9,250,000		9,249,897
0.24%, due 6/6/11 (a)		9,000,000		8,997,840
0.30%, due 8/29/11 (a)		9,210,000		9,200,790
John Deere Credit Ltd. 0.14%, due 5/18/11 (a)(b)		12,300,000		12,299,187
National Cooperative Services
0.22%, due 5/4/11 (a)		5,405,000		5,404,901
0.28%, due 6/1/11 (a)		9,005,000		9,002,829
National Rural Utilities Cooperative Finance Corp. 0.23%, due 5/31/11 (a)		6,845,000		6,843,688
PACCAR Financial Corp. 0.15%, due 5/3/11 (a)		8,280,000		8,279,931
0.24%, due 5/12/11 (a)		7,225,000		7,224,470
Private Export Funding Corp. 0.31%, due 5/11/11 (a)(b)		8,825,000		8,824,240
Rabobank U.S.A. Financial Corp. 0.20%, due 7/7/11 (a)		9,005,000		9,001,648
				103,578,928
Government Agency Debt 6.3%
Federal Farm Credit Bank
0.14%, due 11/4/11 (c)		6,920,000		6,920,000
0.176%, due 9/16/11 (c)		5,250,000		5,249,901
0.25%, due 1/12/12 (c)		8,840,000		8,840,000
Federal Home Loan Bank
0.19%, due 1/24/12 (c)		7,135,000		7,135,000
0.201%, due 7/29/11 (c)		8,500,000		8,500,000
Federal Home Loan Mortgage Corporation (Discount Note) 0.25%, due 5/2/11 (a)		2,200,000		2,199,985
Federal National Mortgage Association 0.174%, due 9/19/11 (c)		8,750,000		8,750,179
				47,595,065
Government Agency Repurchase Agreement 4.3%
SG Americas Securities LLC 0.03%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $32,400,081 (Collateralized by United States Agency Obligations with rates between 3.125%—4.875% and maturity dates between 5/18/12—12/13/13, with a Principal Amount of $31,019,000 and a Market Value of $33,048,621)		32,400,000		32,400,000
				32,400,000
Other Commercial Paper 44.5%
Archer-Daniels-Midland Co. 0.20%, due 5/12/11 (a)(b)		10,000,000		9,999,389
0.28%, due 5/10/11 (a)(b)		9,000,000		8,999,370
Basin Electric Power Cooperative, Inc. 0.20%, due 5/6/11 (a)(b)		9,000,000		8,999,750
0.21%, due 5/11/11 (a)(b)		7,200,000		7,199,580
Becton, Dickinson & Co. 0.13%, due 5/11/11 (a)		8,575,000		8,574,690
Campbell Soup Co.
0.301%, due 12/14/11 (a)(b)		9,210,000		9,192,578
0.401%, due 11/29/11 (a)(b)		7,230,000		7,212,969
Clorox Co. 0.28%, due 5/13/11 (a)(b)		2,945,000		2,944,725
Coca-Cola Co. (The)
0.17%, due 5/17/11 (a)(b)		9,000,000		8,999,320
0.20%, due 5/9/11 (a)(b)		9,060,000		9,059,597
Colgate-Palmolive Co. 0.08%, due 5/4/11 (a)(b)		9,210,000		9,209,939
Deere & Co. 0.13%, due 5/26/11 (a)(b)		9,210,000		9,209,169
Emerson Electric Co. 0.11%, due 5/2/11 (a)(b)		8,000,000		7,999,976
General Electric Co. 0.19%, due 6/14/11 (a)		7,200,000		7,198,328
General Mills, Inc. 0.20%, due 5/2/11 (a)(b)		2,905,000		2,904,984
Google, Inc. 0.12%, due 5/20/11 (a)(b)		7,005,000		7,004,556
0.13%, due 5/16/11 (a)(b)		9,085,000		9,084,508
H.J. Heinz Finance Co. 0.28%, due 5/26/11 (a)(b)		2,945,000		2,944,427
Honeywell International, Inc. 0.18%, due 6/27/11 (a)(b)		9,000,000		8,997,435
0.24%, due 6/28/11 (a)(b)		7,400,000		7,397,139

†  Percentages indicated are based on Fund net assets.

10    MainStay Cash Reserves Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal		Amortized
	Amount		Cost
Short-Term Investments (continued)
Other Commercial Paper (continued)
Illinois Tool Works, Inc. 0.12%, due 5/6/11 (a)(b)	$	5,405,000	$	5,404,910
0.13%, due 6/13/11 (a)(b)		7,365,000		7,363,856
0.14%, due 5/10/11 (a)(b)		5,450,000		5,449,809
International Business Machines Corp. 0.11%, due 5/18/11 (a)(b)		6,616,000		6,615,656
Kellogg Co. 0.24%, due 5/18/11 (a)(b)		2,960,000		2,959,664
Medtronic, Inc. 0.10%, due 5/26/11 (a)(b)		3,700,000		3,699,743
0.15%, due 6/9/11 (a)(b)		4,360,000		4,359,291
Novartis Finance Corp. 0.10%, due 5/2/11 (a)(b)		5,550,000		5,549,985
NSTAR Electric Co. 0.08%, due 5/4/11 (a)		7,735,000		7,734,948
PepsiCo, Inc. 0.16%, due 5/23/11 (a)(b)		3,600,000		3,599,648
Procter & Gamble Co. (The)
0.19%, due 6/3/11 (a)(b)		9,120,000		9,118,412
0.20%, due 6/15/11 (a)(b)		9,000,000		8,997,750
Schlumberger Technology Corp. 0.14%, due 5/19/11 (a)(b)		7,400,000		7,399,482
0.16%, due 6/16/11 (a)(b)		2,945,000		2,944,398
0.24%, due 5/31/11 (a)(b)		3,700,000		3,699,260
0.24%, due 6/20/11 (a)(b)		2,825,000		2,824,058
Societe Generale North America, Inc. 0.11%, due 5/2/11 (a)		9,225,000		9,224,972
0.11%, due 5/5/11 (a)		9,250,000		9,249,887
0.235%, due 6/2/11 (a)		9,000,000		8,998,120
South Carolina Electric & Gas Co. 0.32%, due 5/23/11 (a)		2,650,000		2,649,482
Southern Co. Funding Corp. 0.20%, due 5/3/11 (a)(b)		5,550,000		5,549,938
0.20%, due 5/10/11 (a)(b)		7,400,000		7,399,630
0.22%, due 5/5/11 (a)(b)		7,205,000		7,204,824
United Technologies Corp. 0.10%, due 5/23/11 (a)(b)		8,100,000		8,099,505
Virginia Electric and Power Co. 0.33%, due 5/4/11 (a)		2,880,000		2,879,921
Walt Disney Co. (The) 0.13%, due 6/20/11 (a)(b)		9,250,000		9,248,330
WW Grainger, Inc. 0.15%, due 5/19/11 (a)		7,205,000		7,204,460
0.17%, due 5/3/11 (a)		7,200,000		7,199,932
0.17%, due 5/13/11 (a)		9,005,000		9,004,490
				334,766,790
Other Notes 8.0%
Ally Auto Receivables Trust
Series 2011-1, Class A1 0.315%, due 2/15/12		2,177,586		2,177,586
Series 2010-4, Class A1 0.336%, due 11/15/11		651,141		651,141
BMW Vehicle Lease Trust
Series 2011-1, Class A1 0.289%, due 4/20/12		2,925,000		2,925,000
Series 2010-1, Class A1 0.298%, due 10/17/11		216,172		216,172
CarMax Auto Owner Trust
Series 2010-3, Class A1 0.313%, due 11/15/11		388,480		388,480
Series 2011-1, Class A1 0.334%, due 3/15/12		1,826,824		1,826,824
CNH Equipment Trust Series 2010-C, Class A1 0.427%, due 12/9/11		1,409,764		1,409,764
Ford Credit Auto Owner Trust Series 2011-A, Class A1 0.289%, due 2/15/12 (b)		1,534,572		1,534,572
GE Equipment Midticket LLC Series 2010-1, Class A1 0.351%, due 9/14/11 (b)		48,644		48,644
GE Equipment Small Ticket LLC Series 2011-1A, Class A1 0.383%, due 2/21/12 (b)		1,479,535		1,479,535
Great America Leasing Receivables Series 2011-1, Class A1 0.405%, due 3/15/12 (b)		2,755,757		2,755,757
Holmes Master Issuer PLC Series 2010-1A, Class A1 0.369%, due 10/15/11 (b)(c)		3,500,000		3,500,000
Hyundai Auto Receivables Trust Series 2011-A, Class A1 0.318%, due 2/15/12		2,158,331		2,158,331
John Deere Owner Trust Series 2011-A, Class A1 0.306%, due 5/11/12		2,925,000		2,925,000
Macquarie Equipment Funding Trust Series 2011-A, Class A1 0.432%, due 3/20/12 (b)		2,349,042		2,349,042
Mercedes-Benz Auto Lease Trust Series 2011-1A, Class A1 0.308%, due 3/15/12 (b)		2,127,345		2,127,345
Navistar Financial Corp. Owner Trust Series 2010-B, Class A1 0.345%, due 10/18/11 (b)		734,445		734,445

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal			Amortized
	Amount			Cost
Short-Term Investments (continued)
Other Notes (continued)
Nissan Auto Receivables Owner Trust
Series 2011-A, Class A1 0.261%, due 4/16/12	$	2,925,000		$	2,925,000
Series 2010-A, Class A1 0.356%, due 10/17/11		802,142			802,142
PepsiCo, Inc. 0.308%, due 7/15/11 (c)		5,250,000			5,250,559
Sanofi-Aventis SA. 0.358%, due 3/28/12 (c)		8,995,000			8,995,000
Toronto-Dominion Bank (The) 0.307%, due 1/12/12 (c)		7,135,000			7,135,000
Volkswagen Auto Lease Trust Series 2010-A, Class A1 0.299%, due 11/21/11		998,022			998,022
World Omni Auto Receivables Trust Series 2011-A, Class A1 0.294%, due 3/15/12		2,748,820			2,748,820
World Omni Automobile Lease Securitization Trust Series 2011-A, Class A1 0.301%, due 4/15/12		1,900,000			1,900,000
					59,962,181
Treasury Debt 9.3%
United States Treasury Bills
0.15%, due 5/19/11 (a)		9,365,000			9,364,309
0.195%, due 6/30/11 (a)		8,900,000			8,897,107
United States Treasury Notes
0.875%, due 1/31/12		5,525,000			5,553,923
0.875%, due 2/29/12		5,780,000			5,808,302
1.00%, due 8/31/11		8,750,000			8,770,474
1.00%, due 9/30/11		8,670,000			8,695,898
1.00%, due 10/31/11		8,865,000			8,895,975
1.00%, due 12/31/11		5,335,000			5,358,314
1.00%, due 3/31/12		5,830,000			5,869,471
1.00%, due 4/30/12		2,520,000			2,536,659
					69,750,432
Treasury Repurchase Agreements 12.9%
Bank of America N.A. 0.02%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $32,492,054 (Collateralized by a United States Treasury Bond with a rate of 4.375% and a maturity date of 11/15/39, with a Principal Amount of $32,765,000 and a Market Value of $33,141,840)		32,492,000			32,492,000
BNP Paribas 0.03%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $32,400,081 (Collateralized by a United States Treasury Note with a rate of 2.625% and a maturity date of 11/15/20 with a Principal Amount of $34,548,300 and a Market Value of $33,048,032)		32,400,000			32,400,000
Deutsche Bank Securities, Inc. 0.02%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $32,400,054 (Collateralized by a United States Treasury Bond with a rate of 4.500% and maturity date of 5/15/38 with a Principal Amount of $31,885,800 and a Market Value of $33,048,071)		32,400,000			32,400,000
					97,292,000
Total Short-Term Investments (Amortized Cost $754,347,144) (d)		100.3	%		754,347,144
Other Assets, Less Liabilities		(0.3	)		(2,312,091	)
Net Assets		100.0	%	$	752,035,053

(a)	Interest rate presented is yield to maturity.
(b)	May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.
(c)	Floating rate—Rate shown is the rate in effect at April 30, 2011.
(d)	The amortized cost also represents the aggregate cost for federal income tax purposes.

12    MainStay Cash Reserves Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Short-Term Investments
Asset-Backed Commercial Paper	$	—	$	9,001,748	$	—	$	9,001,748
Financial Company Commercial Paper		—		103,578,928		—		103,578,928
Government Agency Debt		—		47,595,065		—		47,595,065
Government Agency Repurchase Agreements		—		32,400,000		—		32,400,000
Other Commercial Paper		—		334,766,790		—		334,766,790
Other Notes		—		59,962,181		—		59,962,181
Treasury Debt		—		69,750,432		—		69,750,432
Treasury Repurchase Agreements		—		97,292,000		—		97,292,000
Total Investments in Securities	$	—	$	754,347,144	$	—	$	754,347,144

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

The table below sets forth the diversification of MainStay Cash Reserves Fund investments by industry.

Industry Diversification

	Amortized
	Cost			Percent †
Aerospace & Defense	$	8,099,505			1.1	%
Agriculture		18,998,759			2.5
Automobile ABS		24,113,880			3.2
Banks		36,722,486			4.9
Beverages		26,909,124			3.6
Certificate of Deposit		7,135,000			0.9
Computers		6,615,656			0.9
Cosmetics & Personal Care		27,326,101			3.6
Distribution & Wholesale		23,408,882			3.1
Diversified Financial Services		9,001,648			1.2
Electric		49,618,073			6.6
Electrical Components & Equipment		7,999,976			1.1
Finance—Auto Loans		15,504,401			2.1
Finance—Consumer Loans		12,299,187			1.6
Finance—Investment Banker/Broker		27,448,527			3.7
Finance—Other Services		30,075,658			4.0
Food		25,214,622			3.4
Health Care—Products		16,633,724			2.2
Household Products & Wares		2,944,725			0.4
Internet		16,089,064			2.1
Machinery—Diversified		9,209,169			1.2
Media		9,248,330			1.2
Miscellaneous—Manufacturing		41,811,477			5.6
Oil & Gas		16,867,198			2.2
Other ABS		10,967,742			1.5
Pharmaceuticals		14,544,985			1.9
Repurchase Agreements		129,692,000			17.2
Special Purpose Entity		9,001,748			1.2
U.S. Government & Agency		117,345,497			15.6
WL Collateral CMO		3,500,000			0.5
		754,347,144			100.3
Other Assets, Less Liabilities		(2,312,091	)		(0.3	)
Net Assets	$	752,035,053			100.0	%

† Percentages indicated are based on Fund net assets.

14    MainStay Cash Reserves Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (amortized cost $624,655,144)	$	624,655,144
Repurchase agreements, at value (identified cost $129,692,000)		129,692,000
Cash		930
Receivables:
Fund shares sold		2,867,961
Interest		144,968
Manager (See Note 3)		205,544
Other assets		29,025
Total assets		757,595,572
Liabilities
Payables:
Fund shares redeemed		3,283,223
Investment securities purchased		1,900,000
NYLIFE Distributors (See Note 3)		157,698
Transfer agent (See Note 3)		108,658
Professional fees		51,380
Shareholder communication		49,963
Custodian		4,293
Trustees		3,634
Accrued expenses		1,646
Dividend payable		24
Total liabilities		5,560,519
Net assets	$	752,035,053
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	752,034
Additional paid-in capital		751,282,581
		752,034,615
Accumulated net realized gain (loss) on investments		438
Net assets	$	752,035,053
Class I
Net assets applicable to outstanding shares	$	368,792,578
Shares of beneficial interest outstanding		368,806,223
Net asset value and offering price per share outstanding	$	1.00
Sweep Shares
Net assets applicable to outstanding shares	$	383,242,475
Shares of beneficial interest outstanding		383,227,633
Net asset value and offering price per share outstanding	$	1.00

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Interest	$	784,730
Expenses
Manager (See Note 3)		1,573,533
Distribution—Sweep Shares (See Note 3)		476,096
Service—Sweep Shares (See Note 3)		476,093
Transfer agent (See Note 3)		324,173
Shareholder communication		83,456
Professional fees		72,426
Registration		34,293
Custodian		14,206
Trustees		11,111
Miscellaneous		14,113
Total expenses before waiver/reimbursement		3,079,500
Expense waiver/reimbursement from Manager (See Note 3)		(2,329,648	)
Net expenses		749,852
Net investment income (loss)		34,878
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		438
Net increase (decrease) in net assets resulting from operations	$	35,316

16    MainStay Cash Reserves Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	34,878		$	74,566
Net realized gain (loss) on investments		438			1,819
Net increase (decrease) in net assets resulting from operations		35,316			76,385
Dividends to shareholders:
From net investment income:
Class I		(27,112	)		(35,670	)
Sweep Shares		(30,455	)		(38,748	)
Total dividends to shareholders		(57,567	)		(74,418	)
Capital share transactions:
Net proceeds from sale of shares		509,340,025			956,296,790
Net asset value of shares issued to shareholders in reinvestment of dividends		57,255			74,261
Cost of shares redeemed		(467,596,374	)		(1,033,178,831	)
Increase (decrease) in net assets derived from capital share transactions		41,800,906			(76,807,780	)
Net increase (decrease) in net assets		41,778,655			(76,805,813	)
Net Assets
Beginning of period		710,256,398			787,062,211
End of period	$	752,035,053		$	710,256,398
Undistributed net investment income at end of period	$	—		$	22,689

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income (loss)		0.00‡			0.00‡			0.00‡			0.03			0.05			0.04
Net realized and unrealized gain (loss) on investments		0.00‡			0.00‡			0.00‡			0.00‡			(0.00	)‡		—
Total from investment operations		0.00‡			0.00‡			0.00‡			0.03			0.05			0.04
Less dividends:
From net investment income		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.03	)		(0.05	)		(0.04	)
Net asset value at end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return		0.01	%(a)		0.01	%		0.36	%		2.66	%		4.93	%		4.39	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.01	% ††		0.01	%		0.36	%		2.66	%		4.82	%		4.32	%
Net expenses		0.21	% ††		0.24	%		0.50	%		0.50	%		0.50	%		0.50	%
Expenses (before reimbursement/waiver)		0.59	% ††		0.59	%		0.65	%		0.57	%		0.57	%		0.54	%
Net assets at end of period (in 000’s)	$	368,793		$	332,539		$	382,535		$	347,264		$	350,717		$	253,013

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Total investment return is not annualized.

	Sweep Shares
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income (loss)		0.00‡			0.00‡			0.00‡			0.02			0.04			0.04
Net realized and unrealized gain (loss) on investments		0.00‡			0.00‡			0.00‡			0.00‡			(0.00	)‡		—
Total from investment operations		0.00‡			0.00‡			0.00‡			0.02			0.04			0.04
Less dividends:
From net investment income		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.02	)		(0.04	)		(0.04	)
Net asset value at end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return		0.01	%(a)		0.01	%		0.15	%		2.15	%		4.41	%		3.88	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.01	% ††		0.01	%		0.16	%		2.10	%		4.32	%		3.82	%
Net expenses		0.21	% ††		0.24	%		0.71	%		1.00	%		1.00	%		1.00	%
Expenses (before waiver/reimbursement)		1.09	% ††		1.09	%		1.15	%		1.07	%		1.07	%		1.04	%
Net assets at end of period (in 000’s)	$	383,242		$	377,717		$	404,528		$	436,211		$	373,383		$	311,020

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Total investment return is not annualized.

18    MainStay Cash Reserves Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Cash Reserves Fund (the “Fund”), a diversified fund. The Fund is the successor of the MainStay Cash Reserves Fund, a series of Eclipse Funds Inc. (the “Predecessor Fund”). The reorganization of the Predecessor Fund with and into the Fund occurred on February 26, 2010. All information and references to periods prior to February 26, 2010, relate to the Predecessor Fund.

The Fund currently offers two classes of shares. Class I shares commenced operations (under a former designation known as “No-Load Class” shares) on January 2, 1991. The Fund’s No-Load Class shares were redesignated as Class I shares on January 1, 2004. The Sweep Shares commenced operations on December 8, 1998. Class I shares and the Sweep Shares are offered at net asset value (“NAV”) without imposition of a front-end sales charge or a contingent deferred sales charge (“CDSC”). Each class of shares has the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights and the same terms and conditions, except that the classes are subject to different distribution fee rates. Sweep Shares are subject to distribution and service fees under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. In addition, Sweep Shares are subject to a shareholder service fee under a shareholder service plan. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek a high level of current income while preserving capital and maintaining liquidity.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Valuation of Fund Shares. The Fund seeks to maintain a NAV of $1.00 per share, although there is no assurance that it will be able to do so on a continuous basis, and it has adopted certain investment, portfolio and dividend and distribution policies designed to enable it to do as such. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

(B) Securities Valuation. Securities are valued at their amortized cost per the requirement of Rule 2a-7 under the 1940 Act. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between such cost and the value on maturity date. Amortized cost approximates the current fair value of a security.

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models and option adjusted spread pricing. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

Securities valued at amortized cost are not obtained from a quoted price in an active market and considered to be generally categorized as Level 2 in the hierarchy. The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

(C) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required. Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to

mainstayinvestments.com    19

Notes to Financial Statements (unaudited) (continued)

examination by the Internal Revenue Service and state and local departments of revenue.

(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund declares dividends of net investment income daily and the Fund pays them monthly and declares and pays distribution of net realized capital gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(E) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Interest income is accrued daily and discounts and premiums on securities purchased for the Fund are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(F) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(G) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(H) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager (as defined in Note 3(A)) to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(I) Concentrations of Risk. The Fund’s investments may include securities such as variable rate master demand notes, floating-rate notes and mortgage-related and asset-backed securities. If expectations about changes in interest rates, or assessments of an issuer’s credit worthiness or market conditions are incorrect, these types of investments could lose money.

The Fund may also invest in U.S. dollar denominated securities of foreign issuers, which carry certain risks in addition to the usual risks inherent in domestic instruments. These risks include those resulting from future adverse political or economic developments and possible imposition of foreign governmental laws or restrictions. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific country, industry or region.

(J) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

New York Life Investment Management LLC (“New York Life Investments” or “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. The Fund is advised by New York Life Investments directly, without a subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.45% up to $500 million, 0.40% from $500 million to $1 billion and 0.35% in excess of $1 billion. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.43% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets: Class I, 0.50%; and Sweep Shares, 1.00%. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses,

20    Mainstay Cash Reserves Fund

brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

From time to time, the Manager may limit expenses of the Fund to the extent it deems appropriate to enhance the yield of the Fund, or a particular class of the Fund, during periods when expenses have a significant impact on the yield of the Fund, or a particular class of the Fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and in addition to any contractual arrangements that may be in place with respect to the Fund and described in the Fund’s prospectus. It may be revised or terminated by the Manager at any time without notice.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $1,573,533 and waived its fees or reimbursed expenses in the amount of $2,329,648.

State Street Bank and Trust Company (“State Street”), 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted a distribution plan (the “Plan”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Sweep Shares Plan, the Distributor, receives a monthly distribution fee from the Sweep Shares at an annual rate of 0.25% of the average daily net assets of the Fund’s Sweep Shares for distribution or service activities as designated by the Distributor.

The Plan provides that distribution and service fees are payable thereunder to the Distributor regardless of the amounts actually expended by the Distributor for distribution and service activities for the Fund’s Sweep Shares. Class I shares of the Fund are not subject to a distribution or service fee.

In accordance with a separate Shareholder Service Plan, the Manager has agreed to provide, through its affiliates or independent third parties, various shareholder and administrative support services to shareholders of the Sweep Shares. For its services, the Manager is entitled to a Shareholder Service Fee accrued daily and paid monthly at an annual rate of 0.25% of the average daily net assets attributable to the Sweep Shares of the Fund.

(C) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Class I	$	154,415
Sweep Shares		171,390

(D) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(E) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Class I $ 20,906 0.0 %‡

‡  Less than one-tenth of a percent.

(F) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $9,585. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

The tax character of distributions paid during the year ended October 31, 2010 shown in the Statement of Changes in Net Assets, was as follows:

	2010
Distributions paid from:
Ordinary Income	$	74,418

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

mainstayinvestments.com    21

Notes to Financial Statements (unaudited) (continued)

Note 6–Capital Share Transactions

Class I (at $1 per share)	Shares
Six-month period ended April 30, 2011:
Shares sold		410,703,129
Shares issued to shareholders in reinvestment of dividends		26,802
Shares redeemed		(374,461,918	)
Net increase (decrease)		36,268,013
Year ended October 31, 2010:
Shares sold		815,711,798
Shares issued to shareholders in reinvestment of dividends		35,512
Shares redeemed		(865,746,938	)
Net increase (decrease)		(49,999,628	)
Sweep Shares (at $1 per share)	Shares
Six-month period ended April 30, 2011:
Shares sold		98,636,896
Shares issued to shareholders in reinvestment of dividends		30,453
Shares redeemed		(93,134,456	)
Net increase (decrease)		5,532,893
Year ended October 31, 2010:
Shares sold		140,584,992
Shares issued to shareholders in reinvestment of dividends		38,749
Shares redeemed		(167,431,893	)
Net increase (decrease)		(26,808,152	)

Note 7–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

22    Mainstay Cash Reserves Fund

Board Consideration and Approval of Management Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreement. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Cash Reserves Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”).

The Board previously considered and approved this agreement (the “Agreement”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreement in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decision to approve the Agreement, the Board particularly considered information presented to the Board by New York Life Investments as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreement, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments; (ii) the investment performance of the Fund and New York Life Investments; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decision to approve the Agreement was based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year with respect to New York Life Investments and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreement also were based, in part, on the Board’s consideration of the Agreement earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decision to approve the Agreement is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments

In considering the approval of the Agreement, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds and serves a variety of other investment advisory clients, including other pooled investment vehicles, generally, and other money market funds specifically. The Board considered the experience of senior personnel at New York Life Investments providing investment advisory, management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and New York Life Investments’ method for compensating portfolio managers. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreement, that the Fund likely would continue to benefit from the nature, extent and

mainstayinvestments.com    23

Board Consideration and Approval of Management Agreement (Unaudited) (continued)

quality of these services as a result of New York Life Investments’ experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreement, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments to enhance investment returns, supported a determination to approve the Agreement. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments

The Board considered the costs of the services provided by New York Life Investments under the Agreement, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Fund.

In evaluating any costs and profits of New York Life Investments and its affiliates due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ investments in personnel, systems, equipment and other resources necessary to manage the Fund. The Board acknowledged that New York Life Investments must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreement, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreement, that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund supported the Board’s determination to approve the Agreement.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of

24    Mainstay Cash Reserves Fund

management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreement, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreement and the Fund’s expected total ordinary operating expenses. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreement, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreement.

mainstayinvestments.com    25

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request (i) by visiting the Fund’s website at mainstayinvestments.com; or (ii) on the SEC’s website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX is available free of charge upon request (i) by calling 800-MAINSTAY (624-6782); (ii) by visiting the Fund’s website at
mainstayinvestments.com; or (iii) on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q and every month on Form N-MFP. In addition, the Fund will make available its complete schedule of portfolio holdings on its website at www.mainstayinvestments.com, five days after month-end. The Fund’s Form N-Q is available without charge on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). Form N-MFP will be made available to the public by the SEC 60 days after the month to which the information pertains, and a link to each of the most recent 12 months of filings on Form N-MFP will be provided on the Fund’s website. You can also obtain and review copies of Forms N-Q and N-MFP by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

26    Mainstay Cash Reserves Fund

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23065 MS136-11 MSCR10-06/11

B2

MainStay Asset Allocation Funds

Message from the President and Semiannual Report

Unaudited - April 30, 2011

MainStay Conservative Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Growth Allocation Fund

This page intentionally left blank

Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
MainStay Conservative Allocation Fund	5
MainStay Moderate Allocation Fund	20
MainStay Moderate Growth Allocation Fund	35
MainStay Growth Allocation Fund	50
Notes to Financial Statements	65
Board Consideration and Approval of Management Agreements	77
Proxy Voting Policies and Procedures and Proxy Voting Record	80
Shareholder Reports and Quarterly Portfolio Disclosure	80

Investors should refer to each Fund’s Summary Prospectus and/or Prospectus and consider each Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about each Fund. You may obtain copies of each Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read each Fund’s Summary Prospectus and/or Prospectus carefully before investing.

MainStay Conservative Allocation Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(4/4/05)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		1	.59%		5	.36%		4	.46%		4	.90%		1	.48%
		Excluding sales charges		7	.50		11	.49		5	.65		5	.88		1	.48
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		1	.65		5	.47		4	.49		4	.92		1	.27
		Excluding sales charges		7	.56		11	.61		5	.68		5	.90		1	.27
Class B Shares	Maximum 5% CDSC	With sales charges		2	.13		5	.71		4	.54		5	.11		2	.23
	if Redeemed Within the First Six Years of Purchase	Excluding sales charges		7	.13		10	.71		4	.87		5	.11		2	.23
Class C Shares	Maximum 1% CDSC	With sales charges		6	.14		9	.61		4	.87		5	.09		2	.23
	if Redeemed Within One Year of Purchase	Excluding sales charges		7	.14		10	.61		4	.87		5	.09		2	.23
Class I Shares	No Sales Charge			7	.64		11	.91		5	.98		6	.23		1	.02

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Since
Benchmark Performance	Months			Year			Years			Inception
S&P 500® Index4		16	.36%		17	.22%		2	.95%		4	.60%
MSCI EAFE® Index5		12	.71		19	.18		1	.54		5	.98
Barclays Capital U.S. Aggregate Bond Index6		0	.02		5	.36		6	.33		5	.50
Average Lipper Mixed-Asset Target Allocation Conservative Fund7		5	.77		10	.01		4	.36		4	.72

4.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all income and capital gains. The S&P 500® Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.
5.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE® Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
6.	The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
7.	The average Lipper mixed-asset target allocation conservative fund is representative of funds that, by portfolio practice, maintain a mix of between 20%-40% equity securities, with the remainder invested in bonds, cash, and cash equivalents. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Conservative Allocation Fund

Cost in Dollars of a $1,000 Investment in MainStay Conservative Allocation Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,075.00	$	2.57	$	1,022.30	$	2.51
Class A Shares	$	1,000.00	$	1,075.60	$	2.06	$	1,022.80	$	2.01
Class B Shares	$	1,000.00	$	1,071.30	$	6.42	$	1,018.60	$	6.26
Class C Shares	$	1,000.00	$	1,071.40	$	6.42	$	1,018.60	$	6.26
Class I Shares	$	1,000.00	$	1,076.40	$	0.77	$	1,024.10	$	0.75

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.50% for Investor Class, 0.40% for Class A, 1.25% for Class B and Class C and 0.15% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

mainstayinvestments.com    7

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

Total Return	38.70
Current Income	23.50
Capital Appreciation	23.00
Growth of Capital	14.70
Other Assets, Less Liabilities	0.10

See Portfolio of Investments on page 11 for specific holdings within these categories.

8    MainStay Conservative Allocation Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Conservative Allocation Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Conservative Allocation Fund returned 7.50% for Investor Class shares, 7.56% for Class A shares, 7.13% for Class B shares and 7.14% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 7.64%. All share classes outperformed the 5.77% return of the average Lipper² mixed-asset target allocation conservative fund for the reporting period. All share classes underperformed the 16.36% return of the S&P 500^® Index³ for the six months ended April 30, 2011. The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index,⁴ which is an additional benchmark for the Fund. All share classes underperformed the 12.71% return of the MSCI EAFE^® Index,⁵ which is a secondary benchmark for the Fund. See page 5 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in fixed-income securities or in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility (pre-ferring stocks over bonds, high-yield bonds over investment- grade bonds, etc.) as we had done for some time.

We maintained a modest overweight in Underlying Equity Funds relative to the Fund’s target allocation. In the fixed-income portion of the Fund, we emphasized Underlying Funds that invest in convertible and high-yield bonds. This mix contributed positively to relative performance.

During the reporting period, the equity portion of the Fund reflected our preference for Underlying Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ hold-ings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum. Underlying Fixed Income Funds were selected based upon the type and country of issuance of the securities in which they invested and the average credit quality and duration⁶ of those securities.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery (such as stocks over bonds, lower-credit-quality bonds over U.S. Treasury securities and shorter-duration debt instruments over longer-dated securities). As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.

2. See footnote on page 6 for more information on Lipper Inc.

3. See footnote on page 6 for more information on the S&P 500^® Index.

4. See footnote on page 6 for more information on the Barclays Capital U.S. Aggregate Bond Index.

5. See footnote on page 6 for more information on the MSCI EAFE^® Index.

6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

mainstayinvestments.com    9

How did the Fund’s allocations change over the course of the reporting period?

The largest change was a shift out of MainStay Indexed Bond Fund, MainStay Intermediate Term Bond Fund and MainStay High Yield Opportunities Fund into MainStay Flexible Bond Opportunities Fund. MainStay Flexible Bond Opportunities Fund is a multisector bond fund that can move among security types somewhat more nimbly than is possible at the fund-of-funds level.

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underlying Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay Common Stock Fund and MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund, MainStay MAP Fund and MainStay Epoch U.S. All Cap Fund.

We lowered the Fund’s allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

We initiated a position in MainStay Epoch International Small Cap Fund toward the end of the reporting period to access an additional market segment.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Under-lying Equity Funds had the lowest total returns?

Among the Underlying Equity Funds in which the Fund invested, the highest total returns came from MainStay Large Cap Growth Fund and MainStay Epoch U.S. All Cap Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and MainStay 130/30 Growth Fund.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

MainStay Epoch U.S. All Cap Fund and MainStay 130/30 Core Fund made the strongest contributions to the performance of the equity portion of the Fund. (Contributions take weightings and total returns into account.) Although all of the Fund’s Underlying Equity Funds posted positive returns, the Underlying Equity Funds that made the weakest contributions were MainStay S&P 500 Index Fund and MainStay Growth Equity Fund.

What factors and risks affected the Fund’s Underlying Fixed Income Fund investments during the reporting period?

We anticipated that the yield curve⁷ would eventually rise and flatten in response to several factors. First, we believed the Federal Reserve would eventually need to normalize monetary policy; second, public debt was growing; and third, corporate fundamentals were improving. With these factors in mind, we kept the Fund’s duration shorter than that of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s fixed-income benchmark, through investments in cash and Underlying Funds that invest in floating-rate instruments. At the same time, credit quality was held lower than that of the Barclays Capital U.S. Aggregate Bond Index. Both positioning strategies contributed positively, if only marginally, to relative performance as interest rates moved up slightly and credit spreads⁸ continued to narrow.

During the reporting period, which fixed-income market segments were strong performers and which segments were particularly weak?

The best results came from Underlying Fixed Income Funds that invest in security types that are either directly linked to equity markets (convertible bonds) or especially sensitive to corporate fundamentals (high-yield bonds). Longer-dated U.S. Treasury bonds trailed the broader market and lost value as yields rose modestly during the reporting period.

Which Underlying Fixed Income Funds made the strongest contributions to the Fund’s overall perfor-mance, and which Underlying Fixed Income Funds were the greatest detractors?

The strongest contributions to return came from a relatively small position in MainStay Convertible Fund and a much larger position in MainStay Floating Rate Fund. At the other end of the spectrum, a very large position in MainStay Indexed Bond Fund detracted from the Fund’s performance. MainStay Intermediate Term Bond Fund and MainStay Global High Income Fund also detracted from the Fund’s fixed-income performance.

7. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The U.S. Treasury yield curve is said to flatten when the differential in yield between shorter-maturity and longer-maturity Treasury securities narrows.

8. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.


The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay Conservative Allocation Fund

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 99.9%†
Equity Funds 42.6%
MainStay 130/30 Core Fund Class I		1,333,359		$	11,333,548
MainStay 130/30 Growth Fund Class I (a)		13,777			126,332
MainStay 130/30 International Fund Class I		554,637			4,254,065
MainStay Common Stock Fund Class I		396,371			4,918,963
MainStay Epoch Global Choice Fund Class I		159,545			2,614,940
MainStay Epoch International Small Cap Fund Class I		106,947			2,325,023
MainStay Epoch U.S. All Cap Fund Class I		688,543			18,039,833
MainStay Growth Equity Fund Class I (a)		6,158			74,630
MainStay ICAP Equity Fund Class I		152,569			6,021,885
MainStay ICAP International Fund Class I		154,175			5,095,467
MainStay ICAP Select Equity Fund Class I		212,873			8,129,621
MainStay International Equity Fund Class I		7,695			102,571
MainStay Large Cap Growth Fund Class I (a)		2,060,985			16,508,487
MainStay MAP Fund Class I		636,767			22,191,313
MainStay U.S. Small Cap Fund Class I		353,273			6,493,164
Total Equity Funds (Cost $90,088,991)					108,229,842
Fixed Income Funds 57.3%
MainStay Cash Reserves Fund Class I		6,217,740			6,217,740
MainStay Convertible Fund Class I		388,730			6,752,233
MainStay Flexible Bond Opportunities Fund Class I (b)		1,746,883			15,861,697
MainStay Floating Rate Fund Class I		2,494,123			23,793,936
MainStay Global High Income Fund Class I		39,010			468,125
MainStay High Yield Corporate Bond Fund Class I		958,274			5,759,226
MainStay High Yield Opportunities Fund Class I		640,430			7,762,009
MainStay Indexed Bond Fund Class I (b)		5,272,807			59,635,442
MainStay Intermediate Term Bond Fund Class I		1,797,751			19,217,954
Total Fixed Income Funds (Cost $139,618,756)					145,468,362
Total Investments (Cost $229,707,747) (c)		99.9	%		253,698,204
Other Assets, Less Liabilities		0.1			253,636
Net Assets		100.0	%	$	253,951,840

†	Percentages indicated are based on Fund net assets.
(a)	Non-income producing Underlying Fund.
(b)	The Fund’s ownership exceeds 5% of the outstanding shares of the Underlying Fund’s share class. (See Note 3)
(c)	At April 30, 2011, cost is $232,558,335 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	24,002,987
Gross unrealized depreciation		(2,863,118	)
Net unrealized appreciation	$	21,139,869

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Affiliated Investment Companies
Equity Funds	$	108,229,842	$	—	$	—	$	108,229,842
Fixed Income Funds		145,468,362		—		—		145,468,362
Total Investments in Securities	$	253,698,204	$	—	$	—	$	253,698,204

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $229,707,747)	$	253,698,204
Receivables:
Fund shares sold		493,593
Investment securities sold		59,400
Manager (See Note 3)		4,859
Other assets		52,863
Total assets		254,308,919
Liabilities
Due to custodian		59,399
Payables:
Fund shares redeemed		109,758
NYLIFE Distributors (See Note 3)		88,051
Transfer agent (See Note 3)		45,995
Shareholder communication		25,866
Professional fees		25,173
Custodian		1,097
Trustees		825
Accrued expenses		915
Total liabilities		357,079
Net assets	$	253,951,840
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	22,244
Additional paid-in capital		236,285,755
		236,307,999
Distributions in excess of net investment income		(594,739	)
Accumulated net realized gain (loss) on investments		(5,751,877	)
Net unrealized appreciation (depreciation) on investments		23,990,457
Net assets	$	253,951,840
Investor Class
Net assets applicable to outstanding shares	$	40,038,256
Shares of beneficial interest outstanding		3,503,313
Net asset value per share outstanding	$	11.43
Maximum sales charge (5.50% of offering price)		0.67
Maximum offering price per share outstanding	$	12.10
Class A
Net assets applicable to outstanding shares	$	140,968,194
Shares of beneficial interest outstanding		12,339,701
Net asset value per share outstanding	$	11.42
Maximum sales charge (5.50% of offering price)		0.66
Maximum offering price per share outstanding	$	12.08
Class B
Net assets applicable to outstanding shares	$	34,261,745
Shares of beneficial interest outstanding		3,009,462
Net asset value and offering price per share outstanding	$	11.38
Class C
Net assets applicable to outstanding shares	$	30,624,716
Shares of beneficial interest outstanding		2,690,175
Net asset value and offering price per share outstanding	$	11.38
Class I
Net assets applicable to outstanding shares	$	8,058,929
Shares of beneficial interest outstanding		701,149
Net asset value and offering price per share outstanding	$	11.49

12    MainStay Conservative Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	3,421,410
Expenses
Distribution/Service—Investor Class (See Note 3)		45,988
Distribution/Service—Class A (See Note 3)		161,222
Distribution/Service—Class B (See Note 3)		159,675
Distribution/Service—Class C (See Note 3)		140,831
Transfer agent (See Note 3)		144,807
Registration		45,622
Shareholder communication		26,655
Professional fees		25,855
Custodian		4,396
Trustees		3,424
Miscellaneous		6,121
Total expenses before waiver/reimbursement		764,596
Expense waiver/reimbursement from Manager (See Note 3)		(37,071	)
Net expenses		727,525
Net investment income (loss)		2,693,885
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Affiliated investment company transactions		7,734,388
Realized capital gain distributions from affiliated investment companies		1,659,951
Net realized gain (loss) on investments from affiliated investment companies		9,394,339
Net change in unrealized appreciation (depreciation) on investments		4,985,771
Net realized and unrealized gain (loss) on investments		14,380,110
Net increase (decrease) in net assets resulting from operations	$	17,073,995

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	2,693,885		$	4,093,290
Net realized gain (loss) on investments from affiliated and unaffiliated investment company transactions		9,394,339			3,029,431
Net change in unrealized appreciation (depreciation) on investments		4,985,771			14,121,623
Net increase (decrease) in net assets resulting from operations		17,073,995			21,244,344
Dividends to shareholders:
From net investment income:
Investor Class		(596,774	)		(669,755	)
Class A		(2,206,440	)		(2,496,024	)
Class B		(407,727	)		(440,162	)
Class C		(360,064	)		(369,258	)
Class I		(113,224	)		(95,852	)
Total dividends to shareholders		(3,684,229	)		(4,071,051	)
Capital share transactions:
Net proceeds from sale of shares		39,348,422			69,657,748
Net asset value of shares issued to shareholders in reinvestment of dividends		3,395,122			3,725,788
Cost of shares redeemed		(21,825,972	)		(40,727,750	)
Increase (decrease) in net assets derived from capital share transactions		20,917,572			32,655,786
Net increase (decrease) in net assets		34,307,338			49,829,079
Net Assets
Beginning of period		219,644,502			169,815,423
End of period	$	253,951,840		$	219,644,502
Undistributed (distributions in excess of) net investment income at end of period	$	(594,739	)	$	395,605

14    MainStay Conservative Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	10.81		$	9.90		$	8.76		$	10.69
Net investment income (loss) (a)		0.13			0.23			0.27			0.19
Net realized and unrealized gain (loss) on investments		0.67			0.91			1.25			(1.91	)
Total from investment operations		0.80			1.14			1.52			(1.72	)
Less dividends and distributions:
From net investment income		(0.18	)		(0.23	)		(0.27	)		(0.21	)
From net realized gain on investments		—			—			(0.11	)		—
Total dividends and distributions		(0.18	)		(0.23	)		(0.38	)		(0.21	)
Net asset value at end of period	$	11.43		$	10.81		$	9.90		$	8.76
Total investment return (b)		7.50	%(c)		11.70	%		18.01	%		(16.36	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.46	%††		2.26	%		2.98	%		2.72	% ††
Net expenses (d)		0.50	%††		0.50	%		0.50	%		0.50	% ††
Expenses (before waiver/reimbursement) (d)		0.58	%††		0.63	%		0.74	%		0.62	% ††
Portfolio turnover rate		23	%		32	%		36	%		35	%
Net assets at end of period (in 000’s)	$	40,038		$	34,979		$	25,216		$	17,140

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Financial Highlights selected per share data and ratios

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.80		$	9.90		$	8.76		$	11.47		$	10.80		$	10.21
Net investment income (loss) (a)		0.14			0.24			0.27			0.30			0.34			0.28
Net realized and unrealized gain (loss) on investments		0.67			0.90			1.25			(2.39	)		0.73			0.65
Total from investment operations		0.81			1.14			1.52			(2.09	)		1.07			0.93
Less dividends and distributions:
From net investment income		(0.19	)		(0.24	)		(0.27	)		(0.49	)		(0.23	)		(0.34	)
From net realized gain on investments		—			—			(0.11	)		(0.13	)		(0.17	)		(0.00	)‡
Total dividends and distributions		(0.19	)		(0.24	)		(0.38	)		(0.62	)		(0.40	)		(0.34	)
Net asset value at end of period	$	11.42		$	10.80		$	9.90		$	8.76		$	11.47		$	10.80
Total investment return (b)		7.56	%(c)		11.68	%		18.05	%		(19.14	%)		10.22	%		9.36	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.55	%††		2.35	%		3.06	%		2.91	%		3.12	%		2.71	%
Net expenses (d)		0.40	%††		0.42	%		0.47	%		0.49	%		0.48	%		0.53	%
Expenses (before waiver/reimbursement) (d)		0.40	%††		0.42	%		0.47	%		0.49	%		0.48	%		0.61	%
Portfolio turnover rate		23	%		32	%		36	%		35	%		10	%		33	%
Net assets at end of period (in 000’s)	$	140,968		$	121,439		$	94,643		$	84,434		$	80,018		$	40,889

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

16    MainStay Conservative Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class B
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.76		$	9.86		$	8.73		$	11.42		$	10.78		$	10.18
Net investment income (loss) (a)		0.09			0.16			0.20			0.22			0.26			0.22
Net realized and unrealized gain (loss) on investments		0.67			0.90			1.24			(2.39	)		0.73			0.65
Total from investment operations		0.76			1.06			1.44			(2.17	)		0.99			0.87
Less dividends and distributions:
From net investment income		(0.14	)		(0.16	)		(0.20	)		(0.39	)		(0.18	)		(0.27	)
From net realized gain on investments		—			—			(0.11	)		(0.13	)		(0.17	)		(0.00	)‡
Total dividends and distributions		(0.14	)		(0.16	)		(0.31	)		(0.52	)		(0.35	)		(0.27	)
Net asset value at end of period	$	11.38		$	10.76		$	9.86		$	8.73		$	11.42		$	10.78
Total investment return (b)		7.13	%(c)		10.92	%		17.09	%		(19.78	%)		9.37	%		8.67	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.69	%††		1.51	%		2.25	%		2.11	%		2.38	%		2.07	%
Net expenses (d)		1.25	%††		1.25	%		1.25	%		1.25	%		1.23	%		1.28	%
Expenses (before waiver/reimbursement) (d)		1.33	%††		1.38	%		1.48	%		1.33	%		1.23	%		1.36	%
Portfolio turnover rate		23	%		32	%		36	%		35	%		10	%		33	%
Net assets at end of period (in 000’s)	$	34,262		$	31,241		$	27,417		$	23,226		$	20,919		$	13,426

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class C
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.76		$	9.86		$	8.73		$	11.42		$	10.78		$	10.18
Net investment income (loss) (a)		0.09			0.16			0.21			0.22			0.26			0.21
Net realized and unrealized gain (loss) on investments		0.67			0.90			1.23			(2.39	)		0.73			0.66
Total from investment operations		0.76			1.06			1.44			(2.17	)		0.99			0.87
Less dividends and distributions:
From net investment income		(0.14	)		(0.16	)		(0.20	)		(0.39	)		(0.18	)		(0.27	)
From net realized gain on investments		—			—			(0.11	)		(0.13	)		(0.17	)		(0.00	)‡
Total dividends and distributions		(0.14	)		(0.16	)		(0.31	)		(0.52	)		(0.35	)		(0.27	)
Net asset value at end of period	$	11.38		$	10.76		$	9.86		$	8.73		$	11.42		$	10.78
Total investment return (b)		7.14	%(c)		10.82	%		17.09	%		(19.79	%)		9.37	%		8.67	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.69	%††		1.51	%		2.29	%		2.12	%		2.38	%		2.02	%
Net expenses (d)		1.25	%††		1.25	%		1.25	%		1.25	%		1.23	%		1.28	%
Expenses (before waiver/reimbursement) (d)		1.33	%††		1.38	%		1.48	%		1.33	%		1.23	%		1.36	%
Portfolio turnover rate		23	%		32	%		36	%		35	%		10	%		33	%
Net assets at end of period (in 000’s)	$	30,625		$	26,375		$	21,498		$	18,846		$	17,628		$	8,066

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

18    MainStay Conservative Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.87		$	9.95		$	8.81		$	11.54		$	10.85		$	10.21
Net investment income (loss) (a)		0.15			0.27			0.30			0.33			0.36			0.33
Net realized and unrealized gain (loss) on investments		0.67			0.92			1.24			(2.41	)		0.75			0.68
Total from investment operations		0.82			1.19			1.54			(2.08	)		1.11			1.01
Less dividends and distributions:
From net investment income		(0.20	)		(0.27	)		(0.29	)		(0.52	)		(0.25	)		(0.37	)
From net realized gain on investments		—			—			(0.11	)		(0.13	)		(0.17	)		(0.00	)‡
Total dividends and distributions		(0.20	)		(0.27	)		(0.40	)		(0.65	)		(0.42	)		(0.37	)
Net asset value at end of period	$	11.49		$	10.87		$	9.95		$	8.81		$	11.54		$	10.85
Total investment return (b)		7.64	%(c)		12.10	%		18.23	%		(18.90	%)		10.47	%		10.13	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.75	%††		2.58	%		3.37	%		3.16	%		3.30	%		3.15	%
Net expenses (d)		0.15	%††		0.17	%		0.22	%		0.23	%		0.25	%		0.25	%
Expenses (before reimbursement/waiver) (d)		0.15	%††		0.17	%		0.22	%		0.28	%		0.35	%		0.33	%
Portfolio turnover rate		23	%		32	%		36	%		35	%		10	%		33	%
Net assets at end of period (in 000’s)	$	8,059		$	5,611		$	1,041		$	1,150		$	1,108		$	607

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

MainStay Moderate Allocation Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(4/4/05)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		4	.23%		7	.59%		3	.89%		4	.99%		1	.57%
		Excluding sales charges		10	.29		13	.85		5	.08		5	.97		1	.57
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		4	.26		7	.63		3	.91		5	.00		1	.35
		Excluding sales charges		10	.33		13	.89		5	.09		5	.98		1	.35
Class B Shares	Maximum 5% CDSC	With sales charges		4	.82		7	.87		3	.92		5	.15		2	.32
	if Redeemed Within the First Six Years of Purchase	Excluding sales charges		9	.82		12	.87		4	.26		5	.15		2	.32
Class C Shares	Maximum 1% CDSC	With sales charges		8	.83		11	.88		4	.25		5	.14		2	.32
	if Redeemed Within One Year of Purchase	Excluding sales charges		9	.83		12	.88		4	.25		5	.14		2	.32
Class I Shares	No Sales Charge			10	.53		14	.19		5	.37		6	.28		1	.10

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for the Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

20    MainStay Moderate Allocation Fund

	Six			One			Five			Since
Benchmark Performance	Months			Year			Years			Inception
S&P 500® Index4		16	.36%		17	.22%		2	.95%		4	.60%
MSCI EAFE® Index5		12	.71		19	.18		1	.54		5	.98
Barclays Capital U.S. Aggregate Bond Index6		0	.02		5	.36		6	.33		5	.50
Average Lipper Mixed-Asset Target Allocation Moderate Fund7		9	.30		12	.88		3	.92		5	.01

4.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all income and capital gains. The S&P 500® Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.
5.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI® EAFE Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
6.	The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
7.	The average Lipper mixed-asset target allocation moderate fund is representative of funds that, by portfolio practice, maintain a mix of between 40%-60% equity securities, with the remainder invested in bonds, cash, and cash equivalents. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    21

Cost in Dollars of a $1,000 Investment in MainStay Moderate Allocation Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,102.90	$	2.61	$	1,022.30	$	2.51
Class A Shares	$	1,000.00	$	1,103.30	$	1.93	$	1,023.00	$	1.86
Class B Shares	$	1,000.00	$	1,098.20	$	6.50	$	1,018.60	$	6.26
Class C Shares	$	1,000.00	$	1,098.30	$	6.50	$	1,018.60	$	6.26
Class I Shares	$	1,000.00	$	1,105.30	$	0.63	$	1,024.20	$	0.60

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.50% for Investor Class, 0.37% for Class A, 1.25% for Class B and Class C and 0.12% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

22    MainStay Moderate Allocation Fund

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

Total Return	29.60
Capital Appreciation	28.20
Growth of Capital	24.50
Current Income	17.80
Other Assets, Less Liabilities	(0.10	)

See Portfolio Investments on page 26 for specific holdings within these categories.

mainstayinvestments.com    23

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Moderate Allocation Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Moderate Allocation Fund returned 10.29% for Investor Class shares, 10.33% for Class A shares, 9.82% for Class B shares and 9.83% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 10.53%. All share classes outperformed the 9.30% return of the average Lipper² mixed-asset target allocation moderate fund for the reporting period. All share classes underperformed the 16.36% return of the S&P 500^® Index³ for the six months ended April 30, 2011. The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index,⁴ which is an additional benchmark for the Fund. All share classes underperformed the 12.71% return of the MSCI EAFE^® Index,⁵ which is a secondary benchmark for the Fund. See page 20 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in fixed-income securities or in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility (pre-ferring stocks over bonds, high-yield bonds over investment-grade bonds, etc.) as we had done for some time.

We maintained a modest overweight in Underlying Equity Funds relative to the Fund’s target allocation. In the fixed-income portion of the Fund, we emphasized Underlying Funds that invest in convertible and high-yield bonds. This mix contributed positively to relative performance.

During the reporting period, the equity portion of the Fund reflected our preference for Underlying Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ hold-ings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum. Underlying Fixed Income Funds were selected based upon the type and country of issuance of the securities in which they invested and the average credit quality and duration⁶ of those securities.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery (such as stocks over bonds, lower-credit-quality bonds over U.S. Treasury securities and shorter-duration debt instruments over longer-dated securities). As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.

2. See footnote on page 21 for more information on Lipper Inc.

3. See footnote on page 21 for more information on the S&P 500^® Index.

4. See footnote on page 21 for more information on the Barclays Capital U.S. Aggregate Bond Index.

5. See footnote on page 21 for more information on the MSCI EAFE^® Index.

6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

24    MainStay Moderate Allocation Fund

How did the Fund’s allocations change over the course of the reporting period?

The largest change was a shift out of MainStay Indexed Bond Fund, MainStay Intermediate Term Bond Fund and MainStay High Yield Opportunities Fund into MainStay Flexible Bond Opportunities Fund. MainStay Flexible Bond Opportunities Fund is a multisector bond fund that can move among security types somewhat more nimbly than is possible at the fund-of-funds level.

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underlying Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay Common Stock Fund and MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund, MainStay MAP Fund and MainStay Epoch U.S. All Cap Fund.

We lowered the Fund’s allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

We initiated a position in MainStay Epoch International Small Cap Fund toward the end of the reporting period to access an additional market segment.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Under-lying Equity Funds had the lowest total returns?

Among the Underlying Equity Funds in which the Fund invested, the highest total returns came from MainStay Large Cap Growth Fund and MainStay Epoch U.S. All Cap Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and MainStay 130/30 Growth Fund.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

MainStay Epoch U.S. All Cap Fund and MainStay 130/30 Core Fund made the strongest contributions to the performance of the equity portion of the Fund. (Contributions take weightings and total returns into account.) Although all of the Fund’s Underlying Equity Funds posted positive returns, the Under- lying Equity Funds that made the weakest contributions were MainStay S&P 500 Index Fund and MainStay Growth Equity Fund.

What factors and risks affected the Fund’s Underlying Fixed Income Fund investments during the reporting period?

We anticipated that the yield curve⁷ would eventually rise and flatten in response to several factors. First, we believed the Federal Reserve would eventually need to normalize monetary policy; second, public debt was growing; and third, corporate fundamentals were improving. With these factors in mind, we kept the Fund’s duration shorter than that of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s fixed-income benchmark, through investments in cash and Underlying Funds that invest in floating-rate instruments. At the same time, credit quality was held lower than that of the Barclays Capital U.S. Aggregate Bond Index. Both positioning strategies contributed positively, if only marginally, to relative performance as interest rates moved up slightly and credit spreads⁸ continued to narrow.

During the reporting period, which fixed-income market segments were strong performers and which segments were particularly weak?

The best results came from Underlying Fixed Income Funds that invest in security types that are either directly linked to equity markets (convertible bonds) or especially sensitive to corporate fundamentals (high-yield bonds). Longer-dated U.S. Treasury bonds trailed the broader market and lost value as yields rose modestly during the reporting period.

Which Underlying Fixed Income Funds made the strongest contributions to the Fund’s overall perfor-mance, and which Underlying Fixed Income Funds were the greatest detractors?

The strongest contributions to return came from a position in MainStay Convertible Fund and a much larger position in MainStay Floating Rate Fund. At the other end of the spectrum, a large position in MainStay Indexed Bond Fund detracted from the Fund’s performance. MainStay Intermediate Term Bond Fund and MainStay Global High Income Fund also detracted from the Fund’s fixed-income performance.

7. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The U.S. Treasury yield curve is said to flatten when the differential in yield between shorter-maturity and longer-maturity Treasury securities narrows.

8. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.


The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    25

Portfolio of Investments April 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 100.1%†
Equity Funds 62.7%
MainStay 130/30 Core Fund Class I (a)		3,859,131		$	32,802,613
MainStay 130/30 Growth Fund Class I (a)(b)		65,820			603,567
MainStay 130/30 International Fund Class I (a)		2,126,741			16,312,105
MainStay Common Stock Fund Class I (a)		1,797,219			22,303,488
MainStay Epoch Global Choice Fund Class I (a)		286,582			4,697,081
MainStay Epoch International Small Cap Fund Class I		199,676			4,340,952
MainStay Epoch U.S. All Cap Fund Class I (a)		1,713,123			44,883,821
MainStay Growth Equity Fund Class I (b)		15,150			183,616
MainStay ICAP Equity Fund Class I		454,793			17,950,699
MainStay ICAP International Fund Class I		648,843			21,444,255
MainStay ICAP Select Equity Fund Class I		448,083			17,112,296
MainStay International Equity Fund Class I		194,742			2,595,917
MainStay Large Cap Growth Fund Class I (b)		4,677,045			37,463,129
MainStay MAP Fund Class I		1,481,177			51,619,027
MainStay U.S. Small Cap Fund Class I (a)		761,686			13,999,783
Total Equity Funds (Cost $236,548,684)					288,312,349
Fixed Income Funds 37.4%
MainStay Cash Reserves Fund Class I		11,188,873			11,188,873
MainStay Convertible Fund Class I		611,788			10,626,756
MainStay Flexible Bond Opportunities Fund Class I (a)		2,628,779			23,869,317
MainStay Floating Rate Fund Class I (a)		3,162,164			30,167,045
MainStay Global High Income Fund Class I		58,254			699,052
MainStay High Yield Corporate Bond Fund Class I		1,023,600			6,151,836
MainStay High Yield Opportunities Fund Class I		776,719			9,413,829
MainStay Indexed Bond Fund Class I (a)		4,951,273			55,998,900
MainStay Intermediate Term Bond Fund Class I		2,213,287			23,660,041
Total Fixed Income Funds (Cost $165,549,367)					171,775,649
Total Investments (Cost $402,098,051) (c)		100.1	%		460,087,998
Other Assets, Less Liabilities		(0.1	)		(257,125	)
Net Assets		100.0	%	$	459,830,873

†	Percentages indicated are based on Fund net assets.
(a)	The Fund’s ownership exceeds 5% of the outstanding shares of the Underlying Fund’s share class. (See Note 3)
(b)	Non-income producing Underlying Fund.
(c)	At April 30, 2011, cost is $410,316,866 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	58,010,942
Gross unrealized depreciation		(8,239,810	)
Net unrealized appreciation	$	49,771,132

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Affiliated Investment Companies
Equity Funds	$	288,312,349	$	—	$	—	$	288,312,349
Fixed Income Funds		171,775,649		—		—		171,775,649
Total Investments in Securities	$	460,087,998	$	—	$	—	$	460,087,998

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

26    MainStay Moderate Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $402,098,051)	$	460,087,998
Cash		170,171
Receivables:
Fund shares sold		421,353
Manager (See Note 3)		8,297
Other assets		59,244
Total assets		460,747,063
Liabilities
Payables:
Fund shares redeemed		396,455
Investment securities purchased		170,171
NYLIFE Distributors (See Note 3)		164,871
Transfer agent (See Note 3)		97,146
Shareholder communication		48,767
Professional fees		34,504
Custodian		1,843
Trustees		1,469
Accrued expenses		964
Total liabilities		916,190
Net assets	$	459,830,873
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	39,229
Additional paid-in capital		428,672,116
		428,711,345
Undistributed net investment income		46,396
Accumulated net realized gain (loss) on investments		(26,916,815	)
Net unrealized appreciation (depreciation) on investments		57,989,947
Net assets	$	459,830,873
Investor Class
Net assets applicable to outstanding shares	$	91,112,487
Shares of beneficial interest outstanding		7,751,684
Net asset value per share outstanding	$	11.75
Maximum sales charge (5.50% of offering price)		0.68
Maximum offering price per share outstanding	$	12.43
Class A
Net assets applicable to outstanding shares	$	235,552,303
Shares of beneficial interest outstanding		20,048,784
Net asset value per share outstanding	$	11.75
Maximum sales charge (5.50% of offering price)		0.68
Maximum offering price per share outstanding	$	12.43
Class B
Net assets applicable to outstanding shares	$	80,736,902
Shares of beneficial interest outstanding		6,935,705
Net asset value and offering price per share outstanding	$	11.64
Class C
Net assets applicable to outstanding shares	$	43,113,152
Shares of beneficial interest outstanding		3,702,837
Net asset value and offering price per share outstanding	$	11.64
Class I
Net assets applicable to outstanding shares	$	9,316,029
Shares of beneficial interest outstanding		789,637
Net asset value and offering price per share outstanding	$	11.80

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    27

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	5,364,900
Expenses
Distribution/Service—Investor Class (See Note 3)		104,040
Distribution/Service—Class A (See Note 3)		276,459
Distribution/Service—Class B (See Note 3)		379,243
Distribution/Service—Class C (See Note 3)		194,352
Transfer agent (See Note 3)		300,526
Registration		49,321
Shareholder communication		46,103
Professional fees		38,221
Trustees		6,342
Custodian		5,410
Miscellaneous		8,958
Total expenses before waiver/reimbursement		1,408,975
Expense waiver/reimbursement from Manager (See Note 3)		(65,243	)
Net expenses		1,343,732
Net investment income (loss)		4,021,168
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Affiliated investment company transactions		9,368,816
Realized capital gain distributions from affiliated investment companies		2,069,281
Net realized gain (loss) on investments from affiliated investment companies		11,438,097
Net change in unrealized appreciation (depreciation) on investments		26,750,590
Net realized and unrealized gain (loss) on investments		38,188,687
Net increase (decrease) in net assets resulting from operations	$	42,209,855

28    MainStay Moderate Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	4,021,168		$	5,590,619
Net realized gain (loss) on investments from affiliated and unaffiliated investment company transactions		11,438,097			(744,142	)
Net change in unrealized appreciation (depreciation) on investments		26,750,590			38,377,303
Net increase (decrease) in net assets resulting from operations		42,209,855			43,223,780
Dividends to shareholders:
From net investment income:
Investor Class		(1,540,632	)		(1,212,168	)
Class A		(4,491,728	)		(3,395,080	)
Class B		(919,988	)		(828,622	)
Class C		(459,470	)		(418,401	)
Class I		(193,133	)		(93,813	)
Total dividends to shareholders		(7,604,951	)		(5,948,084	)
Capital share transactions:
Net proceeds from sale of shares		53,902,840			93,395,160
Net asset value of shares issued to shareholders in reinvestment of dividends		7,234,901			5,618,137
Cost of shares redeemed		(44,506,963	)		(72,503,377	)
Increase (decrease) in net assets derived from capital share transactions		16,630,778			26,509,920
Net increase (decrease) in net assets		51,235,682			63,785,616
Net Assets
Beginning of period		408,595,191			344,809,575
End of period	$	459,830,873		$	408,595,191
Undistributed net investment income at end of period	$	46,396		$	3,630,179

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    29

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	10.86		$	9.84		$	8.77		$	11.12
Net investment income (loss)		0.11			0.17	(a)		0.22	(a)		0.14	(a)
Net realized and unrealized gain (loss) on investments		0.99			1.03			1.22			(2.49	)
Total from investment operations		1.10			1.20			1.44			(2.35	)
Less dividends and distributions:
From net investment income		(0.21	)		(0.18	)		(0.26	)		—
From net realized gain on investments		—			—			(0.11	)		—
Total dividends and distributions		(0.21	)		(0.18	)		(0.37	)		—
Net asset value at end of period	$	11.75		$	10.86		$	9.84		$	8.77
Total investment return (b)		10.29	%(c)		12.49	%		17.12	%		(21.13	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.02	%††		1.64	%		2.48	%		1.94	% ††
Net expenses (d)		0.50	%††		0.50	%		0.46	%		0.45	% ††
Expenses (before waiver/reimbursement) (d)		0.57	%††		0.60	%		0.73	%		0.61	% ††
Portfolio turnover rate		26	%		41	%		35	%		40	%
Net assets at end of period (in 000’s)	$	91,112		$	78,993		$	63,454		$	46,290

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

30    MainStay Moderate Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.87		$	9.83		$	8.76		$	12.32		$	11.34		$	10.35
Net investment income (loss)		0.12			0.18	(a)		0.22	(a)		0.24	(a)		0.27			0.20	(a)
Net realized and unrealized gain (loss) on investments		0.99			1.05			1.22			(3.29	)		1.18			1.04
Total from investment operations		1.11			1.23			1.44			(3.05	)		1.45			1.24
Less dividends and distributions:
From net investment income		(0.23	)		(0.19	)		(0.26	)		(0.31	)		(0.20	)		(0.25	)
From net realized gain on investments		—			—			(0.11	)		(0.20	)		(0.27	)		(0.00	)‡
Total dividends and distributions		(0.23	)		(0.19	)		(0.37	)		(0.51	)		(0.47	)		(0.25	)
Net asset value at end of period	$	11.75		$	10.87		$	9.83		$	8.76		$	12.32		$	11.34
Total investment return (b)		10.33	%(c)		12.65	%		17.14	%		(25.78	%)		13.18	%		12.18	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.12	%††		1.76	%		2.56	%		2.17	%		2.27	%		1.84	%
Net expenses (d)		0.37	%††		0.38	%		0.43	%		0.46	%		0.46	%		0.45	%
Portfolio turnover rate		26	%		41	%		35	%		40	%		10	%		48	%
Net assets at end of period (in 000’s)	$	235,552		$	210,071		$	176,139		$	146,133		$	192,835		$	107,586

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    31

Financial Highlights selected per share data and ratios

	Class B
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.72		$	9.72		$	8.65		$	12.23		$	11.30		$	10.32
Net investment income (loss)		0.08			0.09	(a)		0.15	(a)		0.15	(a)		0.18			0.13	(a)
Net realized and unrealized gain (loss) on investments		0.98			1.03			1.21			(3.27	)		1.18			1.02
Total from investment operations		1.06			1.12			1.36			(3.12	)		1.36			1.15
Less dividends and distributions:
From net investment income		(0.14	)		(0.12	)		(0.18	)		(0.26	)		(0.16	)		(0.17	)
From net realized gain on investments		—			—			(0.11	)		(0.20	)		(0.27	)		(0.00	)‡
Total dividends and distributions		(0.14	)		(0.12	)		(0.29	)		(0.46	)		(0.43	)		(0.17	)
Net asset value at end of period	$	11.64		$	10.72		$	9.72		$	8.65		$	12.23		$	11.30
Total investment return (b)		9.82	%(c)		11.71	%		16.34	%		(26.41	%)		12.38	%		11.31	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.25	%††		0.89	%		1.77	%		1.38	%		1.54	%		1.21	%
Net expenses (d)		1.25	%††		1.25	%		1.21	%		1.22	%		1.21	%		1.20	%
Expenses (before waiver/reimbursement) (d)		1.32	%††		1.35	%		1.49	%		1.32	%		1.21	%		1.20	%
Portfolio turnover rate		26	%		41	%		35	%		40	%		10	%		48	%
Net assets at end of period (in 000’s)	$	80,737		$	72,829		$	67,726		$	58,738		$	63,929		$	37,649

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

32    MainStay Moderate Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class C
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.73		$	9.72		$	8.66		$	12.23		$	11.30		$	10.32
Net investment income (loss)		0.08			0.09	(a)		0.15	(a)		0.15	(a)		0.19			0.12	(a)
Net realized and unrealized gain (loss) on investments		0.97			1.04			1.20			(3.26	)		1.17			1.03
Total from investment operations		1.05			1.13			1.35			(3.11	)		1.36			1.15
Less dividends and distributions:
From net investment income		(0.14	)		(0.12	)		(0.18	)		(0.26	)		(0.16	)		(0.17	)
From net realized gain on investments		—			—			(0.11	)		(0.20	)		(0.27	)		(0.00	)‡
Total dividends and distributions		(0.14	)		(0.12	)		(0.29	)		(0.46	)		(0.43	)		(0.17	)
Net asset value at end of period	$	11.64		$	10.73		$	9.72		$	8.66		$	12.23		$	11.30
Total investment return (b)		9.83	%(c)		11.69	%		16.19	%		(26.33	%)		12.37	%		11.31	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.28	%††		0.90	%		1.78	%		1.39	%		1.52	%		1.11	%
Net expenses (d)		1.25	%††		1.25	%		1.21	%		1.22	%		1.21	%		1.20	%
Expenses (before waiver/reimbursement) (d)		1.32	%††		1.35	%		1.49	%		1.32	%		1.21	%		1.20	%
Portfolio turnover rate		26	%		41	%		35	%		40	%		10	%		48	%
Net assets at end of period (in 000’s)	$	43,113		$	37,895		$	33,043		$	27,005		$	31,191		$	15,192

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    33

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.92		$	9.87		$	8.80		$	12.37		$	11.36		$	10.35
Net investment income (loss)		0.14			0.20	(a)		0.25	(a)		0.27	(a)		0.29			0.22	(a)
Net realized and unrealized gain (loss) on investments		0.99			1.06			1.21			(3.31	)		1.20			1.06
Total from investment operations		1.13			1.26			1.46			(3.04	)		1.49			1.28
Less dividends and distributions:
From net investment income		(0.25	)		(0.21	)		(0.28	)		(0.33	)		(0.21	)		(0.27	)
From net realized gain on investments		—			—			(0.11	)		(0.20	)		(0.27	)		(0.00	)‡
Total dividends and distributions		(0.25	)		(0.21	)		(0.39	)		(0.53	)		(0.48	)		(0.27	)
Net asset value at end of period	$	11.80		$	10.92		$	9.87		$	8.80		$	12.37		$	11.36
Total investment return (b)		10.53	%(c)		12.94	%		17.40	%		(25.54	%)		13.44	%		12.63	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.41	%††		1.93	%		2.81	%		2.52	%		2.66	%		2.04	%
Net expenses (d)		0.12	%††		0.13	%		0.18	%		0.19	%		0.18	%		0.18	%
Portfolio turnover rate		26	%		41	%		35	%		40	%		10	%		48	%
Net assets at end of period (in 000’s)	$	9,316		$	8,806		$	4,447		$	5,358		$	1,446		$	105

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

34    MainStay Moderate Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

MainStay Moderate Growth Allocation Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(4/4/05)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		7	.28%		10	.09%		3	.01%		4	.79%		1	.77%
		Excluding sales charges		13	.52		16	.49		4	.18		5	.77		1	.77
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		7	.38		10	.19		3	.04		4	.81		1	.52
		Excluding sales charges		13	.63		16	.60		4	.21		5	.79		1	.52
Class B Shares	Maximum 5% CDSC	With sales charges		8	.12		10	.68		3	.05		4	.96		2	.52
	if Redeemed Within the First Six Years of Purchase	Excluding sales charges		13	.12		15	.68		3	.41		4	.96		2	.52
Class C Shares	Maximum 1% CDSC	With sales charges		12	.12		14	.67		3	.40		4	.96		2	.52
	if Redeemed Within One Year of Purchase	Excluding sales charges		13	.12		15	.67		3	.40		4	.96		2	.52
Class I Shares	No Sales Charge			13	.77		16	.95		4	.51		6	.12		1	.27

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for the Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    35

	Six			One			Five			Since
Benchmark Performance	Months			Year			Years			Inception
S&P 500® Index4		16	.36%		17	.22%		2	.95%		4	.60%
MSCI EAFE® Index5		12	.71		19	.18		1	.54		5	.98
Barclays Capital U.S. Aggregate Bond Index6		0	.02		5	.36		6	.33		5	.50
Average Lipper Mixed-Asset Target Allocation Growth Fund7		11	.59		14	.93		3	.64		5	.15

4.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all income and capital gains. The S&P 500® Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.
5.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI® EAFE Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
6.	The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
7.	The average Lipper mixed-asset target allocation growth fund is representative of funds that, by portfolio practice, maintain a mix of between 60%-80% equity securities, with the remainder invested in bonds, cash, and cash equivalents. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

36    MainStay Moderate Growth Allocation Fund

Cost in Dollars of a $1,000 Investment in MainStay Moderate Growth Allocation Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,135.20	$	2.65	$	1,022.30	$	2.51
Class A Shares	$	1,000.00	$	1,136.30	$	2.07	$	1,022.90	$	1.96
Class B Shares	$	1,000.00	$	1,131.20	$	6.61	$	1,018.60	$	6.26
Class C Shares	$	1,000.00	$	1,131.20	$	6.61	$	1,018.60	$	6.26
Class I Shares	$	1,000.00	$	1,137.70	$	0.74	$	1,024.10	$	0.70

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.50% for Investor Class, 0.39% for Class A, 1.25% for Class B and Class C and 0.14% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

mainstayinvestments.com    37

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

Capital Appreciation	38.10
Growth of Capital	33.00
Total Return	16.20
Current Income	12.80
Other Assets, Less Liabilities	(0.10	)

See Portfolio of Investments on page 41 for specific holdings within these categories.

38    MainStay Moderate Growth Allocation Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Moderate Growth Allocation Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Moderate Growth Allocation Fund returned 13.52% for Investor Class shares, 13.63% for Class A shares and 13.12% for Class B shares and Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 13.77%. All share classes outperformed the 11.59% return of the average Lipper² mixed-asset target allocation growth fund for the reporting period. All share classes underperformed the 16.36% return of the S&P 500^® Index³ for the six months ended April 30, 2011. The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index,⁴ which is an additional benchmark for the Fund. All share classes outperformed the 12.71% return of the MSCI EAFE^® Index,⁵ which is a secondary benchmark for the Fund. See page 35 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in fixed-income securities or in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility (pre-ferring stocks over bonds, high-yield bonds over investment- grade bonds, etc.) as we had done for some time.

We maintained a modest overweight in Underlying Equity Funds relative to the Fund’s target allocation. In the fixed-income portion of the Fund, we emphasized Underlying Funds that invest in convertible and high-yield bonds. This mix contributed positively to relative performance.

During the reporting period, the equity portion of the Fund reflected our preference for Underlying Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ hold-ings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum. Underlying Fixed Income Funds were selected based upon the type and country of issuance of the securities in which they invested and the average credit quality and duration⁶ of those securities.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery (such as stocks over bonds, lower-credit-quality bonds over U.S. Treasury securities and shorter-duration debt instruments over longer-dated securities). As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.

2. See footnote on page 36 for more information on Lipper Inc.

3. See footnote on page 36 for more information on the S&P 500^® Index.

4. See footnote on page 36 for more information on the Barclays Capital U.S. Aggregate Bond Index.

5. See footnote on page 36 for more information on the MSCI EAFE^® Index.

6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

mainstayinvestments.com    39

How did the Fund’s allocations change over the course of the reporting period?

One of the changes implemented during the reporting period was a partial shift out of MainStay Indexed Bond Fund and MainStay High Yield Opportunities Fund into MainStay Flexible Bond Opportunities Fund. MainStay Flexible Bond Opportunities Fund is a multisector bond fund that can move among security types somewhat more nimbly than is possible at the fund-of-funds level.

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underlying Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund and MainStay MAP Fund.

We lowered the Fund’s allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

We initiated a position in MainStay Epoch International Small Cap Fund toward the end of the reporting period to access an additional market segment.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Under-lying Equity Funds had the lowest total returns?

Among the Underlying Equity Funds in which the Fund invested, the highest total returns came from MainStay Large Cap Growth Fund and MainStay Epoch U.S. All Cap Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and MainStay 130/30 Growth Fund.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

MainStay Epoch U.S. All Cap Fund and MainStay 130/30 Core Fund made the strongest contributions to the performance of the equity portion of the Fund. (Contributions take weightings and total returns into account.) Although all of the Fund’s Underlying Equity Funds posted positive returns, the Under-
lying Equity Funds that made the weakest contributions were MainStay S&P 500 Index Fund and MainStay Growth Equity Fund.

What factors and risks affected the Fund’s Underlying Fixed Income Fund investments during the reporting period?

We anticipated that the yield curve⁷ would eventually rise and flatten in response to several factors. First, we believed the Federal Reserve would eventually need to normalize monetary policy; second, public debt was growing; and third, corporate fundamentals were improving. With these factors in mind, we kept the Fund’s duration shorter than that of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s fixed-income benchmark, through investments in cash and Underlying Funds that invest in floating-rate instruments. At the same time, credit quality was held lower than that of the Barclays Capital U.S. Aggregate Bond Index. Both positioning strategies contributed positively, if only marginally, to relative performance as interest rates moved up slightly and credit spreads⁸ continued to narrow.

During the reporting period, which fixed-income market segments were strong performers and which segments were particularly weak?

The best results came from Underlying Fixed Income Funds that invest in security types that are either directly linked to equity markets (convertible bonds) or especially sensitive to corporate fundamentals (high-yield bonds). Longer-dated U.S. Treasury bonds trailed the broader market and lost value as yields rose modestly during the reporting period.

Which Underlying Fixed Income Funds made the strongest contributions to the Fund’s overall perfor-mance, and which Underlying Fixed Income Funds were the greatest detractors?

The strongest contributions to return came from a position in MainStay Convertible Fund and a much larger position in MainStay Floating Rate Fund. At the other end of the spectrum, a position in MainStay Indexed Bond Fund detracted from the Fund’s performance. MainStay Intermediate Term Bond Fund and MainStay Global High Income Fund also detracted from the Fund’s fixed-income performance.

7. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The U.S. Treasury yield curve is said to flatten when the differential in yield between shorter-maturity and longer-maturity Treasury securities narrows.

8. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.


The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

40    MainStay Moderate Growth Allocation Fund

Portfolio of Investments April 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 100.1%†
Equity Funds 82.5%
MainStay 130/30 Core Fund Class I (a)		4,998,824		$	42,490,007
MainStay 130/30 Growth Fund Class I (a)(b)		50,979			467,478
MainStay 130/30 International Fund Class I (a)		3,130,918			24,014,144
MainStay Common Stock Fund Class I (a)		2,246,718			27,881,775
MainStay Epoch Global Choice Fund Class I (a)		278,622			4,566,608
MainStay Epoch International Small Cap Fund Class I		200,533			4,359,584
MainStay Epoch U.S. All Cap Fund Class I (a)		2,037,483			53,382,044
MainStay Growth Equity Fund Class I (a)(b)		58,954			714,528
MainStay ICAP Equity Fund Class I		246,492			9,729,033
MainStay ICAP International Fund Class I		892,076			29,483,107
MainStay ICAP Select Equity Fund Class I		473,586			18,086,251
MainStay International Equity Fund Class I		616,781			8,221,685
MainStay Large Cap Growth Fund Class I (b)		5,482,146			43,911,987
MainStay MAP Fund Class I (a)		1,823,250			63,540,276
MainStay U.S. Small Cap Fund Class I (a)		2,073,263			38,106,566
Total Equity Funds (Cost $308,746,857)					368,955,073
Fixed Income Funds 17.6%
MainStay Cash Reserves Fund Class I		5,760,917			5,760,917
MainStay Convertible Fund Class I		390,031			6,774,836
MainStay Flexible Bond Opportunities Fund Class I (a)		1,462,040			13,275,326
MainStay Floating Rate Fund Class I		2,696,187			25,721,625
MainStay Global High Income Fund Class I		47,904			574,850
MainStay High Yield Corporate Bond Fund Class I		749,785			4,506,209
MainStay High Yield Opportunities Fund Class I		602,240			7,299,150
MainStay Indexed Bond Fund Class I		504,050			5,700,807
MainStay Intermediate Term Bond Fund Class I		848,126			9,066,465
Total Fixed Income Funds (Cost $74,770,282)					78,680,185
Total Investments (Cost $383,517,139) (c)		100.1	%		447,635,258
Other Assets, Less Liabilities		(0.1	)		(463,448	)
Net Assets		100.0	%	$	447,171,810

†	Percentages indicated are based on Fund net assets.
(a)	The Fund’s ownership exceeds 5% of the outstanding shares of the Underlying Fund’s share class. (See Note 3)
(b)	Non-income producing Underlying Fund.
(c)	At April 30, 2011, cost is $391,198,886 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	64,203,353
Gross unrealized depreciation		(7,766,981	)
Net unrealized appreciation	$	56,436,372

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted Prices
	in Active		Significant
	Markets for		Other		Unobservable
	Identical		Observable		Significant
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Affiliated Investment Companies
Equity Funds	$	368,955,073	$	—	$	—	$	368,955,073
Fixed Income Funds		78,680,185		—		—		78,680,185
Total Investments in Securities	$	447,635,258	$	—	$	—	$	447,635,258

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    41

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $383,517,139)	$	447,635,258
Cash		77,557
Receivables:
Fund shares sold		436,225
Manager (See Note 3)		14,892
Other assets		54,856
Total assets		448,218,788
Liabilities
Payables:
Fund shares redeemed		586,422
NYLIFE Distributors (See Note 3)		170,117
Transfer agent (See Note 3)		124,789
Investment securities purchased		77,557
Shareholder communication		49,439
Professional fees		33,235
Custodian		2,078
Trustees		1,366
Accrued expenses		1,975
Total liabilities		1,046,978
Net assets	$	447,171,810
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	37,835
Additional paid-in capital		426,003,436
		426,041,271
Distributions in excess of net investment income		(166,065	)
Accumulated net realized gain (loss) on investments		(42,821,515	)
Net unrealized appreciation (depreciation) on investments		64,118,119
Net assets	$	447,171,810
Investor Class
Net assets applicable to outstanding shares	$	128,108,199
Shares of beneficial interest outstanding		10,800,014
Net asset value per share outstanding	$	11.86
Maximum sales charge (5.50% of offering price)		0.69
Maximum offering price per share outstanding	$	12.55
Class A
Net assets applicable to outstanding shares	$	183,706,587
Shares of beneficial interest outstanding		15,488,748
Net asset value per share outstanding	$	11.86
Maximum sales charge (5.50% of offering price)		0.69
Maximum offering price per share outstanding	$	12.55
Class B
Net assets applicable to outstanding shares	$	104,720,551
Shares of beneficial interest outstanding		8,934,203
Net asset value and offering price per share outstanding	$	11.72
Class C
Net assets applicable to outstanding shares	$	29,208,461
Shares of beneficial interest outstanding		2,492,045
Net asset value and offering price per share outstanding	$	11.72
Class I
Net assets applicable to outstanding shares	$	1,428,012
Shares of beneficial interest outstanding		119,503
Net asset value and offering price per share outstanding	$	11.95

42    MainStay Moderate Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	4,290,100
Interest		10
Total income		4,290,110
Expenses
Distribution/Service—Investor Class (See Note 3)		146,149
Distribution/Service—Class A (See Note 3)		213,603
Distribution/Service—Class B (See Note 3)		491,942
Distribution/Service—Class C (See Note 3)		134,181
Transfer agent (See Note 3)		379,862
Shareholder communication		47,240
Registration		45,691
Professional fees		37,383
Trustees		6,152
Custodian		5,652
Miscellaneous		8,778
Total expenses before waiver/reimbursement		1,516,633
Expense waiver/reimbursement from Manager (See Note 3)		(110,704	)
Net expenses		1,405,929
Net investment income (loss)		2,884,181
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Affiliated investment company transactions		6,600,617
Realized capital gain distributions from affiliated investment companies		576,383
Net realized gain (loss) on investments from affiliated investment companies		7,177,000
Net change in unrealized appreciation (depreciation) on investments		42,704,298
Net realized and unrealized gain (loss) on investments		49,881,298
Net increase (decrease) in net assets resulting from operations	$	52,765,479

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    43

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	2,884,181		$	3,420,795
Net realized gain (loss) on investments from affiliated and unaffiliated investment company transactions		7,177,000			(8,182,778	)
Net change in unrealized appreciation (depreciation) on investments		42,704,298			51,085,445
Net increase (decrease) in net assets resulting from operations		52,765,479			46,323,462
Dividends to shareholders:
From net investment income:
Investor Class		(1,421,593	)		(1,204,021	)
Class A		(2,286,332	)		(2,008,728	)
Class B		(555,953	)		(623,191	)
Class C		(149,275	)		(156,948	)
Class I		(26,034	)		(11,153	)
Total dividends to shareholders		(4,439,187	)		(4,004,041	)
Capital share transactions:
Net proceeds from sale of shares		44,620,178			74,685,446
Net asset value of shares issued to shareholders in reinvestment of dividends		4,323,926			3,893,632
Cost of shares redeemed		(40,594,436	)		(67,000,942	)
Increase (decrease) in net assets derived from capital share transactions		8,349,668			11,578,136
Net increase (decrease) in net assets		56,675,960			53,897,557
Net Assets
Beginning of period		390,495,850			336,598,293
End of period	$	447,171,810		$	390,495,850
Undistributed (distributions in excess of) net investment income at end of period	$	(166,065	)	$	1,388,941

44    MainStay Moderate Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	10.58		$	9.40		$	8.36		$	11.37
Net investment income (loss)		0.09	(a)		0.11	(a)		0.17	(a)		0.15	(a)
Net realized and unrealized gain (loss) on investments		1.33			1.20			1.17			(3.16	)
Total from investment operations		1.42			1.31			1.34			(3.01	)
Less dividends and distributions:
From net investment income		(0.14	)		(0.13	)		(0.19	)		—
From net realized gain on investments		—			—			(0.11	)		—
Total dividends and distributions		(0.14	)		(0.13	)		(0.30	)		—
Net asset value at end of period	$	11.86		$	10.58		$	9.40		$	8.36
Total investment return (b)		13.52	%(c)		14.02	%		16.87	%		(26.47	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.59	%††		1.12	%		2.02	%		2.16	% ††
Net expenses (d)		0.50	%††		0.50	%		0.47	%		0.45	% ††
Expenses (before waiver/reimbursement) (d)		0.59	%††		0.65	%		0.79	%		0.67	% ††
Portfolio turnover rate		26	%		54	%		36	%		40	%
Net assets at end of period (in 000’s)	$	128,108		$	109,893		$	86,438		$	61,901

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    45

Financial Highlights selected per share data and ratios

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.58		$	9.40		$	8.35		$	13.10		$	11.68		$	10.46
Net investment income (loss)		0.09	(a)		0.12	(a)		0.18	(a)		0.15	(a)		0.20			0.11	(a)
Net realized and unrealized gain (loss) on investments		1.34			1.19			1.17			(4.28	)		1.60			1.35
Total from investment operations		1.43			1.31			1.35			(4.13	)		1.80			1.46
Less dividends and distributions:
From net investment income		(0.15	)		(0.13	)		(0.19	)		(0.36	)		(0.15	)		(0.24	)
From net realized gain on investments		—			—			(0.11	)		(0.26	)		(0.23	)		(0.00	)‡
Total dividends and distributions		(0.15	)		(0.13	)		(0.30	)		(0.62	)		(0.38	)		(0.24	)
Net asset value at end of period	$	11.86		$	10.58		$	9.40		$	8.35		$	13.10		$	11.68
Total investment return (b)		13.63	%(c)		14.07	%		17.00	%		(32.92	%)		15.83	%		14.20	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.66	%††		1.22	%		2.18	%		1.30	%		1.46	%		0.98	%
Net expenses (d)		0.39	%††		0.40	%		0.43	%		0.46	%		0.46	%		0.43	%
Expenses (before waiver/reimbursement) (d)		0.39	%††		0.40	%		0.43	%		0.49	%		0.49	%		0.43	%
Portfolio turnover rate		26	%		54	%		36	%		40	%		13	%		61	%
Net assets at end of period (in 000’s)	$	183,707		$	159,791		$	140,284		$	127,086		$	207,499		$	112,099

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

46    MainStay Moderate Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class B
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.42		$	9.27		$	8.23		$	12.93		$	11.60		$	10.42
Net investment income (loss)		0.05	(a)		0.04	(a)		0.11	(a)		0.05	(a)		0.12			0.04	(a)
Net realized and unrealized gain (loss) on investments		1.31			1.18			1.16			(4.21	)		1.57			1.33
Total from investment operations		1.36			1.22			1.27			(4.16	)		1.69			1.37
Less dividends and distributions:
From net investment income		(0.06	)		(0.07	)		(0.12	)		(0.28	)		(0.13	)		(0.19	)
From net realized gain on investments		—			—			(0.11	)		(0.26	)		(0.23	)		(0.00	)‡
Total dividends and distributions		(0.06	)		(0.07	)		(0.23	)		(0.54	)		(0.36	)		(0.19	)
Net asset value at end of period	$	11.72		$	10.42		$	9.27		$	8.23		$	12.93		$	11.60
Total investment return (b)		13.12	%(c)		13.17	%		16.06	%		(33.42	%)		14.95	%		13.28	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.83	%††		0.39	%		1.35	%		0.48	%		0.73	%		0.32	%
Net expenses (d)		1.25	%††		1.25	%		1.21	%		1.22	%		1.21	%		1.18	%
Expenses (before waiver/reimbursement) (d)		1.34	%††		1.40	%		1.54	%		1.37	%		1.24	%		1.18	%
Portfolio turnover rate		26	%		54	%		36	%		40	%		13	%		61	%
Net assets at end of period (in 000’s)	$	104,721		$	94,448		$	87,220		$	76,188		$	93,540		$	48,046

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    47

Financial Highlights selected per share data and ratios

	Class C
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.42		$	9.27		$	8.23		$	12.93		$	11.60		$	10.42
Net investment income (loss)		0.05	(a)		0.04	(a)		0.11	(a)		0.06	(a)		0.13			0.03	(a)
Net realized and unrealized gain (loss) on investments		1.31			1.18			1.16			(4.22	)		1.56			1.34
Total from investment operations		1.36			1.22			1.27			(4.16	)		1.69			1.37
Less dividends and distributions:
From net investment income		(0.06	)		(0.07	)		(0.12	)		(0.28	)		(0.13	)		(0.19	)
From net realized gain on investments		—			—			(0.11	)		(0.26	)		(0.23	)		(0.00	)‡
Total dividends and distributions		(0.06	)		(0.07	)		(0.23	)		(0.54	)		(0.36	)		(0.19	)
Net asset value at end of period	$	11.72		$	10.42		$	9.27		$	8.23		$	12.93		$	11.60
Total investment return (b)		13.12	%(c)		13.16	%		16.07	%		(33.42	%)		14.95	%		13.28	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.83	%††		0.37	%		1.39	%		0.50	%		0.73	%		0.25	%
Net expenses (d)		1.25	%††		1.25	%		1.21	%		1.22	%		1.21	%		1.18	%
Expenses (before waiver/reimbursement) (d)		1.34	%††		1.40	%		1.54	%		1.36	%		1.24	%		1.18	%
Portfolio turnover rate		26	%		54	%		36	%		40	%		13	%		61	%
Net assets at end of period (in 000’s)	$	29,208		$	25,524		$	21,968		$	18,993		$	27,284		$	15,639

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

48    MainStay Moderate Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.67		$	9.48		$	8.42		$	13.20		$	11.74		$	10.47
Net investment income (loss)		0.12	(a)		0.15	(a)		0.19	(a)		0.17	(a)		0.22			0.15	(a)
Net realized and unrealized gain (loss) on investments		1.33			1.19			1.20			(4.30	)		1.63			1.38
Total from investment operations		1.45			1.34			1.39			(4.13	)		1.85			1.53
Less dividends and distributions:
From net investment income		(0.17	)		(0.15	)		(0.22	)		(0.39	)		(0.16	)		(0.26	)
From net realized gain on investments		—			—			(0.11	)		(0.26	)		(0.23	)		(0.00	)‡
Total dividends and distributions		(0.17	)		(0.15	)		(0.33	)		(0.65	)		(0.39	)		(0.26	)
Net asset value at end of period	$	11.95		$	10.67		$	9.48		$	8.42		$	13.20		$	11.74
Total investment return (b)		13.77	%(c)		14.29	%		17.37	%		(32.72	%)		16.17	%		14.86	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.15	%††		1.47	%		2.30	%		1.51	%		1.46	%		1.36	%
Net expenses (d)		0.14	%††		0.15	%		0.19	%		0.22	%		0.25	%		0.17	%
Expenses (before reimbursement/waiver) (d)		0.14	%††		0.15	%		0.19	%		0.26	%		0.31	%		0.17	%
Portfolio turnover rate		26	%		54	%		36	%		40	%		13	%		61	%
Net assets at end of period (in 000’s)	$	1,428		$	840		$	688		$	532		$	681		$	12

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    49

MainStay Growth Allocation Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(4/4/05)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		9	.43%		11	.73%		1	.82%		4	.19%		1	.93%
		Excluding sales charges		15	.80		18	.23		2	.98		5	.17		1	.93
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		9	.47		11	.76		1	.83		4	.20		1	.68
		Excluding sales charges		15	.84		18	.27		2	.99		5	.18		1	.68
Class B Shares	Maximum 5% CDSC	With sales charges		10	.45		12	.44		1	.83		4	.38		2	.68
	if Redeemed Within the First Six Years of Purchase	Excluding sales charges		15	.45		17	.44		2	.20		4	.38		2	.68
Class C Shares	Maximum 1% CDSC	With sales charges		14	.44		16	.43		2	.20		4	.39		2	.68
	if Redeemed Within One Year of Purchase	Excluding sales charges		15	.44		17	.43		2	.20		4	.39		2	.68
Class I Shares	No Sales Charge			16	.03		18	.67		3	.24		5	.51		1	.43

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

50    MainStay Growth Allocation Fund

	Six			One			Five			Since
Benchmark Performance	Months			Year			Years			Inception
S&P 500® Index4		16	.36%		17	.22%		2	.95%		4	.60%
MSCI EAFE® Index5		12	.71		19	.18		1	.54		5	.98
Average Lipper Multi-Cap Core Fund6		16	.89		18	.00		2	.79		5	.18

4.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all income and capital gains. The S&P 500® Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.
5.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE® Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
6.	The average Lipper multi-cap core fund is representative of funds that, by portfolio practice, invest in a variety of market-capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time. Multi-cap core funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    51

Cost in Dollars of a $1,000 Investment in MainStay Growth Allocation Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,158.00	$	2.68	$	1,022.30	$	2.51
Class A Shares	$	1,000.00	$	1,158.40	$	2.35	$	1,022.60	$	2.21
Class B Shares	$	1,000.00	$	1,154.50	$	6.68	$	1,018.60	$	6.26
Class C Shares	$	1,000.00	$	1,154.40	$	6.68	$	1,018.60	$	6.26
Class I Shares	$	1,000.00	$	1,160.30	$	1.02	$	1,023.90	$	0.95

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.50% for Investor Class, 0.44% for Class A, 1.25% for Class B and Class C and 0.19% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

52    MainStay Growth Allocation Fund

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

Capital Appreciation	44.00
Growth of Capital	41.10
Total Return	15.00
Other Assets, Less Liabilities	(0.10	)

See Portfolio Investments on page 56 for specific holdings within these categories.

mainstayinvestments.com    53

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Growth Allocation Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Growth Allocation Fund returned 15.80% for Investor Class shares, 15.84% for Class A shares, 15.45% for Class B shares and 15.44% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 16.03%. All share classes underperformed the 16.89% return of the average Lipper² multi-cap core fund and the 16.36% return of the S&P 500^® Index³ for the six months ended April 30, 2011. The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 12.71% return of the MSCI EAFE^® Index,⁴ which is a secondary benchmark for the Fund. See page 50 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility, as we had done for some time.

During the reporting period, the Fund reflected our preference for Underlying Equity Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because the stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ hold-ings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery. As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

How did the Fund’s allocations change over the course of the reporting period?

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underlying Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund and MainStay MAP Fund.

We lowered the Fund’s allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.
2. See footnote on page 51 for more information on Lipper Inc.
3. See footnote on page 51 for more information on the S&P 500^® Index.
4. See footnote on page 51 for more information on the MSCI EAFE^® Index.

54    MainStay Growth Allocation Fund

We initiated a position in MainStay Epoch International Small Cap Fund toward the end of the reporting period to access an additional market segment.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Underlying Equity Funds had the lowest total returns?

The highest total returns among the Underlying Equity Funds in which the Fund invested came from MainStay Large Cap Growth Fund and MainStay Epoch U.S. All Cap Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and MainStay 130/30 Growth Fund.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

MainStay Epoch U.S. All Cap Fund and MainStay 130/30 Core Fund made the strongest contributions to the performance of the Fund. Although all of the Fund’s Underlying Equity Funds posted positive returns, the Underlying Equity Fund holdings that made the weakest contributions were positions in MainStay S&P 500 Index Fund and MainStay Growth Equity Fund.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    55

Portfolio of Investments April 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 100.1%†
Equity Funds 100.1%
MainStay 130/30 Core Fund Class I (a)		2,938,200		$	24,974,698
MainStay 130/30 Growth Fund Class I (b)		23,974			219,840
MainStay 130/30 International Fund Class I (a)		2,177,671			16,702,735
MainStay Common Stock Fund Class I (a)		1,623,827			20,151,690
MainStay Epoch Global Choice Fund Class I		146,177			2,395,847
MainStay Epoch International Small Cap Fund Class I		106,170			2,308,141
MainStay Epoch U.S. All Cap Fund Class I		1,180,003			30,916,077
MainStay Growth Equity Fund Class I (a)(b)		126,129			1,528,684
MainStay ICAP Equity Fund Class I		145,117			5,727,751
MainStay ICAP International Fund Class I		565,784			18,699,163
MainStay ICAP Select Equity Fund Class I		288,148			11,004,363
MainStay International Equity Fund Class I		488,105			6,506,435
MainStay Large Cap Growth Fund Class I (b)		3,313,615			26,542,055
MainStay MAP Fund Class I		1,154,484			40,233,768
MainStay U.S. Small Cap Fund Class I (a)		1,518,870			27,916,822
Total Investments (Cost $198,301,748) (c)		100.1	%		235,828,069
Other Assets, Less Liabilities		(0.1	)		(225,604	)
Net Assets		100.0	%	$	235,602,465

†	Percentages indicated are based on Fund net assets.
(a)	The Fund’s ownership exceeds 5% of the outstanding shares of the Underlying Fund’s share class. (See Note 3)
(b)	Non-income producing Underlying Fund.
(c)	At April 30, 2011, cost is $206,159,931 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	37,526,321
Gross unrealized depreciation		(7,858,183	)
Net unrealized appreciation	$	29,668,138

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Affiliated Investment Companies
Equity Funds	$	235,828,069	$	—	$	—	$	235,828,069
Total Investments in Securities	$	235,828,069	$	—	$	—	$	235,828,069

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

56    MainStay Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $198,301,748)	$	235,828,069
Receivables:
Fund shares sold		155,881
Manager (See Note 3)		15,572
Investment securities sold		6,587
Other assets		47,422
Total assets		236,053,531
Liabilities
Due to custodian		6,586
Payables:
Fund shares redeemed		218,054
NYLIFE Distributors (See Note 3)		90,093
Transfer agent (See Note 3)		82,114
Shareholder communication		27,578
Professional fees		22,635
Custodian		1,245
Trustees		670
Accrued expenses		2,091
Total liabilities		451,066
Net assets	$	235,602,465
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	20,105
Additional paid-in capital		229,887,393
		229,907,498
Undistributed net investment income		257,608
Accumulated net realized gain (loss) on investments		(32,088,962	)
Net unrealized appreciation (depreciation) on investments		37,526,321
Net assets	$	235,602,465
Investor Class
Net assets applicable to outstanding shares	$	77,351,508
Shares of beneficial interest outstanding		6,566,667
Net asset value per share outstanding	$	11.78
Maximum sales charge (5.50% of offering price)		0.69
Maximum offering price per share outstanding	$	12.47
Class A
Net assets applicable to outstanding shares	$	84,213,248
Shares of beneficial interest outstanding		7,148,546
Net asset value per share outstanding	$	11.78
Maximum sales charge (5.50% of offering price)		0.69
Maximum offering price per share outstanding	$	12.47
Class B
Net assets applicable to outstanding shares	$	58,519,418
Shares of beneficial interest outstanding		5,054,882
Net asset value and offering price per share outstanding	$	11.58
Class C
Net assets applicable to outstanding shares	$	13,869,277
Shares of beneficial interest outstanding		1,196,415
Net asset value and offering price per share outstanding	$	11.59
Class I
Net assets applicable to outstanding shares	$	1,649,014
Shares of beneficial interest outstanding		138,581
Net asset value and offering price per share outstanding	$	11.90

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    57

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	1,745,029
Expenses
Distribution/Service—Investor Class (See Note 3)		88,163
Distribution/Service—Class A (See Note 3)		97,374
Distribution/Service—Class B (See Note 3)		273,838
Distribution/Service—Class C (See Note 3)		62,103
Transfer agent (See Note 3)		246,989
Registration		42,124
Shareholder communication		28,439
Professional fees		24,896
Custodian		4,447
Trustees		3,207
Miscellaneous		6,011
Total expenses before waiver/reimbursement		877,591
Expense waiver/reimbursement from Manager (See Note 3)		(106,856	)
Net expenses		770,735
Net investment income (loss)		974,294
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on affiliated investment company transactions		7,664,827
Net change in unrealized appreciation (depreciation) on investments		23,347,548
Net realized and unrealized gain (loss) on investments		31,012,375
Net increase (decrease) in net assets resulting from operations	$	31,986,669

58    MainStay Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	974,294		$	238,326
Net realized gain (loss) on investments from affiliated and unaffiliated investment company transactions		7,664,827			(8,268,603	)
Net change in unrealized appreciation (depreciation) on investments		23,347,548			33,238,207
Net increase (decrease) in net assets resulting from operations		31,986,669			25,207,930
Dividends to shareholders:
From net investment income:
Investor Class		(317,839	)		(316,041	)
Class A		(387,343	)		(373,510	)
Class I		(11,504	)		(9,797	)
Total dividends to shareholders		(716,686	)		(699,348	)
Capital share transactions:
Net proceeds from sale of shares		22,852,168			36,153,029
Net asset value of shares issued to shareholders in reinvestment of dividends		683,170			669,513
Cost of shares redeemed		(22,328,059	)		(36,201,746	)
Increase (decrease) in net assets derived from capital share transactions		1,207,279			620,796
Net increase (decrease) in net assets		32,477,262			25,129,378
Net Assets
Beginning of period		203,125,203			177,995,825
End of period	$	235,602,465		$	203,125,203
Undistributed net investment income at end of period	$	257,608		$	—

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    59

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	10.22		$	8.97		$	8.09		$	11.68
Net investment income (loss) (a)		0.06			0.03			0.10			0.01
Net realized and unrealized gain (loss) on investments		1.55			1.27			1.00			(3.60	)
Total from investment operations		1.61			1.30			1.10			(3.59	)
Less dividends and distributions:
From net investment income		(0.05	)		(0.05	)		(0.14	)		—
From net realized gain on investments		—			—			(0.08	)		—
Total dividends and distributions		(0.05	)		(0.05	)		(0.22	)		—
Net asset value at end of period	$	11.78		$	10.22		$	8.97		$	8.09
Total investment return (b)		15.80	%(c)		14.54	%		14.13	%		(30.74	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.13	%††		0.35	%		1.30	%		0.19	% ††
Net expenses (d)		0.50	%††		0.50	%		0.50	%		0.50	% ††
Expenses (before waiver/reimbursement) (d)		0.66	%††		0.73	%		0.88	%		0.75	% ††
Portfolio turnover rate		28	%		54	%		42	%		37	%
Net assets at end of period (in 000’s)	$	77,352		$	66,013		$	54,578		$	38,881

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

60    MainStay Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.22		$	8.97		$	8.08		$	13.78		$	12.08		$	10.51
Net investment income (loss) (a)		0.06			0.04			0.12			0.07			0.05			(0.03	)
Net realized and unrealized gain (loss) on investments		1.55			1.26			0.99			(5.11	)		2.11			1.74
Total from investment operations		1.61			1.30			1.11			(5.04	)		2.16			1.71
Less dividends and distributions:
From net investment income		(0.05	)		(0.05	)		(0.14	)		(0.32	)		(0.14	)		(0.09	)
From net realized gain on investments		—			—			(0.08	)		(0.34	)		(0.32	)		(0.05	)
Total dividends and distributions		(0.05	)		(0.05	)		(0.22	)		(0.66	)		(0.46	)		(0.14	)
Net asset value at end of period	$	11.78		$	10.22		$	8.97		$	8.08		$	13.78		$	12.08
Total investment return (b)		15.84	%(c)		14.57	%		14.29	%		(38.20	%)		18.42	%		16.49	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.13	%††		0.38	%		1.55	%		0.60	%		0.41	%		(0.25	%)
Net expenses (d)		0.44	%††		0.48	%		0.48	%		0.49	%		0.48	%		0.52	%
Expenses (before waiver/reimbursement) (d)		0.44	%††		0.48	%		0.52	%		0.57	%		0.55	%		0.55	%
Portfolio turnover rate		28	%		54	%		42	%		37	%		17	%		84	%
Net assets at end of period (in 000’s)	$	84,213		$	71,983		$	62,210		$	58,165		$	116,123		$	54,499

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    61

Financial Highlights selected per share data and ratios

	Class B
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.03		$	8.82		$	7.94		$	13.56		$	11.97		$	10.47
Net investment income (loss) (a)		0.02			(0.04	)		0.05			(0.03	)		(0.04	)		(0.10	)
Net realized and unrealized gain (loss) on investments		1.53			1.25			0.98			(5.01	)		2.07			1.72
Total from investment operations		1.55			1.21			1.03			(5.04	)		2.03			1.62
Less dividends and distributions:
From net investment income		—			—			(0.07	)		(0.24	)		(0.12	)		(0.07	)
From net realized gain on investments		—			—			(0.08	)		(0.34	)		(0.32	)		(0.05	)
Total dividends and distributions		—			—			(0.15	)		(0.58	)		(0.44	)		(0.12	)
Net asset value at end of period	$	11.58		$	10.03		$	8.82		$	7.94		$	13.56		$	11.97
Total investment return (b)		15.45	%(c)		13.72	%		13.32	%		(38.65	%)		17.44	%		15.59	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.37	%††		(0.38	%)		0.65	%		(0.24	%)		(0.34	%)		(0.91	%)
Net expenses (d)		1.25	%††		1.25	%		1.25	%		1.25	%		1.23	%		1.27	%
Expenses (before waiver/reimbursement) (d)		1.41	%††		1.48	%		1.64	%		1.44	%		1.30	%		1.30	%
Portfolio turnover rate		28	%		54	%		42	%		37	%		17	%		84	%
Net assets at end of period (in 000’s)	$	58,519		$	52,053		$	49,206		$	42,501		$	59,902		$	27,770

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

62    MainStay Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class C
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.04		$	8.84		$	7.96		$	13.58		$	11.97		$	10.46
Net investment income (loss) (a)		0.02			(0.04	)		0.05			(0.02	)		(0.03	)		(0.11	)
Net realized and unrealized gain (loss) on investments		1.53			1.24			0.98			(5.02	)		2.08			1.74
Total from investment operations		1.55			1.20			1.03			(5.04	)		2.05			1.63
Less dividends and distributions:
From net investment income		—			—			(0.07	)		(0.24	)		(0.12	)		(0.07	)
From net realized gain on investments		—			—			(0.08	)		(0.34	)		(0.32	)		(0.05	)
Total dividends and distributions		—			—			(0.15	)		(0.58	)		(0.44	)		(0.12	)
Net asset value at end of period	$	11.59		$	10.04		$	8.84		$	7.96		$	13.58		$	11.97
Total investment return (b)		15.44	%(c)		13.57	%		13.29	%		(38.58	%)		17.51	%		15.79	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.35	%††		(0.39	%)		0.61	%		(0.21	%)		(0.26	%)		(0.95	%)
Net expenses (d)		1.25	%††		1.25	%		1.25	%		1.25	%		1.23	%		1.27	%
Expenses (before waiver/reimbursement) (d)		1.41	%††		1.48	%		1.64	%		1.44	%		1.30	%		1.30	%
Portfolio turnover rate		28	%		54	%		42	%		37	%		17	%		84	%
Net assets at end of period (in 000’s)	$	13,869		$	11,599		$	10,773		$	8,682		$	13,668		$	8,640

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    63

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.33		$	9.06		$	8.17		$	13.91		$	12.17		$	10.52
Net investment income (loss) (a)		0.08			0.06			0.12			0.07			0.05			0.01
Net realized and unrealized gain (loss) on investments		1.57			1.28			1.01			(5.12	)		2.16			1.79
Total from investment operations		1.65			1.34			1.13			(5.05	)		2.21			1.80
Less dividends and distributions:
From net investment income		(0.08	)		(0.07	)		(0.16	)		(0.35	)		(0.15	)		(0.10	)
From net realized gain on investments		—			—			(0.08	)		(0.34	)		(0.32	)		(0.05	)
Total dividends and distributions		(0.08	)		(0.07	)		(0.24	)		(0.69	)		(0.47	)		(0.15	)
Net asset value at end of period	$	11.90		$	10.33		$	9.06		$	8.17		$	13.91		$	12.17
Total investment return (b)		16.03	%(c)		14.87	%		14.40	%		(38.00	%)		18.68	%		17.36	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.47	%††		0.64	%		1.50	%		0.62	%		0.41	%		0.06	%
Net expenses (d)		0.19	%††		0.23	%		0.25	%		0.25	%		0.24	%		0.25	%
Expenses (before reimbursement/waiver) (d)		0.19	%††		0.23	%		0.27	%		0.28	%		0.40	%		0.28	%
Portfolio turnover rate		28	%		54	%		42	%		37	%		17	%		84	%
Net assets at end of period (in 000’s)	$	1,649		$	1,478		$	1,229		$	849		$	107		$	14

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

64    MainStay Growth Allocation Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009 and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds” and each individually, referred to as a “Fund”). These financial statements and notes relate to the MainStay Conservative Allocation Fund, MainStay Moderate Allocation Fund, MainStay Moderate Growth Allocation Fund and MainStay Growth Allocation Fund (collectively referred to as the “Allocation Funds” and each individually referred to as an “Allocation Fund”). Each is a diversified fund. Each Allocation Fund is the successor of a series of Eclipse Funds Inc. with the same name (collectively referred to as the “Predecessor Funds” and each individually referred to as a “Predecessor Fund”). The reorganizations of the Predecessor Funds with and into the respective Allocation Funds occurred on February 26, 2010. All information and references to periods prior to February 26, 2010 relate to the respective Predecessor Fund.

The Allocation Funds each currently offer five classes of shares. Class A shares, Class B shares, Class C shares and Class I shares commenced operations on April 4, 2005. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class B shares and Class C shares are offered at NAV without an initial sales charge, although a declining CDSC may be imposed on redemptions made within six years of purchase of Class B shares and a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Class B shares convert to either Investor Class or Class A shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The investment objective for each of the Allocation Funds is as follows:

The MainStay Conservative Allocation Fund seeks current income and, secondarily, long-term growth of capital.

The MainStay Moderate Allocation Fund seeks long-term growth of capital and, secondarily, current income.

The MainStay Moderate Growth Allocation Fund seeks long-term growth of capital and, secondarily, current income.

The MainStay Growth Allocation Fund seeks long-term growth of capital.

The Allocation Funds are “funds-of-funds” and may invest in other Funds of the Trust as well as Funds of the Eclipse Funds and The MainStay Funds, each a Massachusetts business trust, and Eclipse Funds Inc., a Maryland Corporation, for which New York Life Investment Management LLC (“New York Life Investments” or “Manager”) also serves as Manager (“Underlying Funds”).

Note 2–Significant Accounting Policies

The Allocation Funds prepare their financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Allocation Funds are open for business (“valuation date”).

“Fair value” is defined as the price that an Allocation Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Allocation Funds. Unobservable inputs reflect each Allocation Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Allocation Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Allocation Funds to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Allocation Funds may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would

mainstayinvestments.com    65

Notes to Financial Statements (unaudited) (continued)

have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Allocation Funds have procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Allocation Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Allocation Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for each Allocation Fund’s investments is included at the end of each Allocation Fund’s Portfolio of Investments.

Investments in Underlying Funds are valued at their NAV at the close of business each day. These securities are generally categorized as Level 1 in the hierarchy.

The Allocation Funds’ other investments and securities held by the Affiliated Underlying Funds are valued as described below.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Options contracts are valued at the last posted settlement price on the market where such options are principally traded.

Debt securities are valued at the evaluated bid prices supplied by a pricing agent or brokers selected by the Underlying Fund’s manager in consultation with the Underlying Fund’s subadvisor whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by the Underlying Fund’s manager, in consultation with the Underlying Fund’s subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Debt securities, include corporate bonds, U.S. government & federal agency bonds, municipal bonds, foreign bonds, Yankee bonds, convertible bonds, asset-backed securities, and mortgage-backed securities.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost.

Foreign currency forward contracts are valued at their fair market values determined on the basis of the mean between the last current bid and ask prices based on dealer or exchange quotations.

Loan assignments, participations and commitments are valued at the average of bid quotations obtained from a pricing service. The Underlying Fund has engaged an independent pricing service to provide market value quotations from dealers in loans.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Allocation Funds’ Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Allocation Funds’ Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Allocation Funds did not hold securities that were valued in such a manner.

(B) Income Taxes. Each of the Allocation Funds is treated as a separate entity for federal income tax purposes. The Allocation Funds’ policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of each Allocation Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Allocation Funds’ tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Allocation Funds’ financial statements. The Allocation Funds’ federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The

66    MainStay Asset Allocation Funds

Conservative Allocation Fund intends to declare and pay dividends of net investment income, if any, quarterly and distributions of net realized capital gains, if any, annually. The other Allocation Funds intend to declare and pay dividends of net investment income and distributions of net realized capital gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the respective Allocation Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Allocation Funds record security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividends and distributions received by the Allocation Funds from the Underlying Funds are recorded on the ex-dividend date.

Investment income and realized and unrealized gains and losses on investments of the Allocation Funds are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Allocation Funds in proportion to the net assets of the respective Allocation Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by each Allocation Fund, including those of related parties to the Allocation Funds, are shown in each Allocation Fund’s Statement of Operations.

In addition, the Allocation Funds bear a pro rata share of the fees and expenses of the Underlying Funds in which they invest. Because the Underlying Funds have varied expense and fee levels and the Allocation Funds may own different proportions of the Underlying Funds at different times, the amount of fees and expenses incurred indirectly by the Allocation Funds may vary.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Allocation Funds enter into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Allocation Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Allocation Funds that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Allocation Funds.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investments, a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Allocation Funds’ Manager, pursuant to a Management Agreement, as amended (“Management Agreement”) and is responsible for the day-to-day portfolio management of the Funds. The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Allocation Funds. Except for the portion of salaries and expenses that are the responsibility of the Allocation Funds, the Manager also pays the salaries and expenses of all personnel affiliated with the Allocation Funds and the operational expenses of the Allocation Funds. Prior to January 1, 2011, Madison Square Investors LLC, a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, served as subadvisor to the Allocation Funds and was responsible for the day-to-day portfolio management of the Allocation Funds. Pursuant to the terms of a Subadvisory Agreement, as amended between New York Life Investments and the Subadvisor, New York Life Investments paid for the services of the Subadvisor.

The Allocation Funds do not pay any fees to the Manager in return for the services performed. The Allocation Funds do, however, indirectly pay a proportionate share of the management fees paid to the Manager’s of the Underlying Funds in which the Allocation Funds invest.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets for each class:

	Investor
	Class			Class A			Class B			Class C			Class I
MainStay Conservative Allocation Fund		0.50	%		0.50	%		1.25	%		1.25	%		0.25	%
MainStay Moderate Allocation Fund		0.50			0.50			1.25			1.25			0.25
MainStay Moderate Growth Allocation Fund		0.50			0.50			1.25			1.25			0.25
MainStay Growth Allocation Fund		0.50			0.50			1.25			1.25			0.25

This expense limitation agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

mainstayinvestments.com    67

Notes to Financial Statements (unaudited) (continued)

For the six-month period ended April 30, 2011, New York Life Investments reimbursed expenses of the Allocation Funds as follows:

	Total
MainStay Conservative Allocation Fund	$	37,071
MainStay Moderate Allocation Fund		65,243
MainStay Moderate Growth Allocation Fund		110,704
MainStay Growth Allocation Fund		106,856

State Street Bank and Trust Company (“State Street”), 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Allocation Funds pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Allocation Funds, maintaining the general ledger and sub-ledger accounts for the calculation of the Allocation Funds’ respective NAVs, and assisting New York Life Investments in conducting various aspects of the Allocation Funds’ administrative operations. For providing these services to the Allocation Funds, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Allocation Funds, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Allocation Funds have adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from the Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and Class C shares of the Fund pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Fund’s Class B and Class C shares along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class B and Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Allocation Funds’ shares and service activities.

(C) Sales Charges. The Allocation Funds were advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares for the six-month period ended April 30, 2011 were as follows:

MainStay Conservative Allocation Fund
Investor Class	$	33,431
Class A		44,926

MainStay Moderate Allocation Fund
Investor Class	$	73,680
Class A		54,629

MainStay Moderate Growth Allocation Fund
Investor Class	$	91,799
Class A		35,839

MainStay Growth Allocation Fund
Investor Class	$	48,974
Class A		17,174

The Allocation Funds were also advised that the Distributor retained CDSCs on redemptions of Investor Class, Class A, Class B and Class C shares, for the six-month period ended April 30, 2011 were as follows:

MainStay Conservative Allocation Fund
Investor Class	$	1
Class A		49
Class B		25,559
Class C		3,602

MainStay Moderate Allocation Fund
Class A	$	4
Class B		63,490
Class C		1,671

MainStay Moderate Growth Allocation Fund
Class B	$	106,850
Class C		3,779

MainStay Growth Allocation Fund
Investor Class	$	58
Class A		1,423
Class B		70,328
Class C		577

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Allocation Funds’ transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC.

68    MainStay Asset Allocation Funds

Transfer agent expenses incurred by the Allocation Funds for the six-month period ended April 30, 2011, were as follows:

MainStay Conservative Allocation Fund	Total
Investor Class	$	42,332
Class A		31,673
Class B		36,776
Class C		32,396
Class I		1,630

MainStay Moderate Allocation Fund	Total
Investor Class	$	101,420
Class A		56,976
Class B		92,464
Class C		47,388
Class I		2,278

MainStay Moderate Growth Allocation Fund	Total
Investor Class	$	156,983
Class A		54,174
Class B		132,183
Class C		36,047
Class I		475

MainStay Growth Allocation Fund	Total
Investor Class	$	107,433
Class A		36,448
Class B		83,464
Class C		18,906
Class I		738

(E) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Allocation Funds with the following values and percentages of net assets as follows:

MainStay Conservative Allocation Fund
Class I	$	14,437	0.2	%

MainStay Moderate Allocation Fund
Class I	$	14,471	0.2	%

MainStay Moderate Growth Allocation Fund
Class I	$	14,342	1.0	%

MainStay Growth Allocation Fund
Class I	$	13,851	0.8	%

At April 30, 2011, the Allocation Funds held the following percentages of outstanding shares of affiliated investment companies:

MainStay Conservative Allocation Fund
MainStay 130/30 Core Fund Class I	4.17	%
MainStay 130/30 Growth Fund Class I	2.45
MainStay 130/30 International Fund Class I	2.67
MainStay Cash Reserves Fund Class I	1.69
MainStay Common Stock Fund Class I	2.25
MainStay Convertible Fund Class I	2.01
MainStay Epoch Global Choice Fund Class I	4.75
MainStay Epoch International Small Cap Fund Class I	0.94
MainStay Epoch U.S. All Cap Fund Class I	2.70
MainStay Flexible Bond Opportunities Fund Class I	8.86
MainStay Floating Rate Fund Class I	4.46
MainStay Global High Income Fund Class I	1.28
MainStay Growth Equity Fund Class I	1.05
MainStay High Yield Corporate Bond Fund Class I	0.30
MainStay High Yield Opportunities Fund Class I	1.77
MainStay ICAP Equity Fund Class I	0.81
MainStay ICAP International Fund Class I	0.66
MainStay ICAP Select Equity Fund Class I	0.31
MainStay Indexed Bond Fund Class I	12.25
MainStay Intermediate Term Bond Fund Class I	4.04
MainStay International Equity Fund Class I	0.04
MainStay Large Cap Growth Fund Class I	0.27
MainStay MAP Fund Class I	2.10
MainStay U.S. Small Cap Fund Class I	3.11

MainStay Moderate Allocation Fund
MainStay 130/30 Core Fund Class I	12.06	%
MainStay 130/30 Growth Fund Class I	11.71
MainStay 130/30 International Fund Class I	10.25
MainStay Cash Reserves Fund Class I	3.03
MainStay Common Stock Fund Class I	10.19
MainStay Convertible Fund Class I	3.16
MainStay Epoch Global Choice Fund Class I	8.54
MainStay Epoch International Small Cap Fund Class I	1.76
MainStay Epoch U.S. All Cap Growth Fund Class I	6.71
MainStay Flexible Bond Opportunities Fund Class I	13.33
MainStay Floating Rate Fund Class I	5.66
MainStay Global High Income Fund Class I	1.91
MainStay Growth Equity Fund Class I	2.58
MainStay High Yield Corporate Bond Fund Class I	0.32
MainStay High Yield Opportunities Fund Class I	2.15

mainstayinvestments.com    69

Notes to Financial Statements (unaudited) (continued)

MainStay Moderate Allocation Fund (continued)
MainStay ICAP Equity Fund Class I	2.40	%
MainStay ICAP International Fund Class I	2.77
MainStay ICAP Select Equity Fund Class I	0.66
MainStay Indexed Bond Fund Class I	11.51
MainStay Intermediate Term Bond Fund Class I	4.98
MainStay International Equity Fund Class I	0.98
MainStay Large Cap Growth Fund Class I	0.59
MainStay MAP Fund Class I	4.89
MainStay U.S. Small Cap Fund Class I	6.71

MainStay Moderate Growth Allocation Fund
MainStay 130/30 Core Fund Class I	15.63	%
MainStay 130/30 Growth Fund Class I	9.07
MainStay 130/30 International Fund Class I	15.09
MainStay Cash Reserves Fund Class I	1.56
MainStay Common Stock Fund Class I	12.74
MainStay Convertible Fund Class I	2.01
MainStay Epoch Global Choice Fund Class I	8.30
MainStay Epoch International Small Cap Fund Class I	1.77
MainStay Epoch U.S. All Cap Fund Class I	7.98
MainStay Flexible Bond Opportunities Fund Class I	7.41
MainStay Floating Rate Fund Class I	4.83
MainStay Global High Income Fund Class I	1.57
MainStay Growth Equity Fund Class I	10.02
MainStay High Yield Corporate Bond Fund Class I	0.24
MainStay High Yield Opportunities Fund Class I	1.66
MainStay ICAP Equity Fund Class I	1.30
MainStay ICAP International Fund Class I	3.81
MainStay ICAP Select Equity Fund Class I	0.70
MainStay Indexed Bond Fund Class I	1.17
MainStay Intermediate Term Bond Fund Class I	1.91
MainStay International Equity Fund Class I	3.09
MainStay Large Cap Growth Fund Class I	0.69
MainStay MAP Fund Class I	6.02
MainStay U.S. Small Cap Fund Class I	18.26

MainStay Growth Allocation Fund
MainStay 130/30 Core Fund Class I	9.19	%
MainStay 130/30 Growth Fund Class I	4.27
MainStay 130/30 International Fund Class I	10.49
MainStay Common Stock Fund Class I	9.21
MainStay Epoch Global Choice Fund Class I	4.36
MainStay Epoch International Small Cap Fund Class I	0.93
MainStay Epoch U.S. All Cap Fund Class I	4.62
MainStay Growth Equity Fund Class I	21.44
MainStay ICAP Equity Fund Class I	0.77
MainStay ICAP International Fund Class I	2.41
MainStay ICAP Select Equity Fund Class I	0.43
MainStay International Equity Fund Class I	2.45
MainStay Large Cap Growth Fund Class I	0.42
MainStay MAP Fund Class I	3.81
MainStay U.S. Small Cap Fund Class I	13.37

(F) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Allocation Funds have implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Allocation Funds by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Allocation Funds through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were as follows:

MainStay Conservative Allocation Fund	$	3,158
MainStay Moderate Allocation Fund		5,787
MainStay Moderate Growth Allocation Fund		5,622
MainStay Growth Allocation Fund		2,943

Effective March 18, 2011, the Allocation Funds are no longer directly responsible for any portion of the cost of legal services provided to the Allocation Funds by OGC.

Note 4–Federal Income Tax

MainStay Conservation Allocation Fund

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $12,295,628 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the MainStay Conservative Allocation Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2017	$	9,959
	2018		2,337
	Total	$	12,296

70    MainStay Asset Allocation Funds

MainStay Moderate Allocation Fund

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $30,136,097 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the MainStay Moderate Allocation Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2017	$	25,133
	2018		5,003
	Total	$	30,136

MainStay Moderate Growth Allocation Fund

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $42,316,768 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the MainStay Moderate Growth Allocation Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2017	$	33,934
	2018		8,383
	Total	$	42,317

MainStay Growth Allocation Fund

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $31,895,606 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the MainStay Growth Allocation Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2017	$	21,809
	2018		10,087
	Total	$	31,896

The tax character of distributions paid during the year ended October 31, 2010 shown in the Statement of Changes in Net Assets, was as follows:

	2010
	Tax Based		Tax Based
	Distributions		Distributions
	from		from Long-
	Ordinary		Term Capital
	Income		Gains		Total
MainStay Conservative Allocation Fund	$	4,071,051	$	—	$	4,071,051
MainStay Moderate Allocation Fund		5,948,084		—		5,948,084
MainStay Moderate Growth Allocation Fund		4,004,041		—		4,004,041
MainStay Growth Allocation Fund		699,348		—		699,348

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Allocation Funds. Custodial fees are charged to the Allocation Funds based on the market value of securities in the Allocation Funds and the number of certain cash transactions incurred by the Allocation Funds.

Note 6–Line of Credit

The Allocation Funds and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Allocation Funds on the amended credit agreement during the six-month period ended April 30, 2011.

mainstayinvestments.com    71

Notes to Financial Statements (unaudited) (continued)

Note 7—Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities were as follows:

	Purchases		Sales
MainStay Conservative Allocation Fund	$	76,189	$	54,858
MainStay Moderate Allocation Fund		128,489		113,343
MainStay Moderate Growth Allocation Fund		116,426		108,670
MainStay Growth Allocation Fund		61,522		60,194

Note 8–Capital Share Transactions

MainStay Conservative Allocation Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		672,292		$	7,447,560
Shares issued to shareholders in reinvestment of dividends		54,226			594,083
Shares redeemed		(293,819	)		(3,255,654	)
Net increase (decrease) in shares outstanding before conversion		432,699			4,785,989
Shares converted into Investor Class (See Note 1)		101,327			1,124,078
Shares converted from Investor Class (See Note 1)		(267,859	)		(2,965,127	)
Net increase (decrease)		266,167		$	2,944,940
Year ended October 31, 2010:
Shares sold		1,272,615		$	13,108,678
Shares issued to shareholders in reinvestment of dividends		64,931			666,390
Shares redeemed		(511,712	)		(5,272,444	)
Net increase (decrease) in shares outstanding before conversion		825,834			8,502,624
Shares converted into Investor Class (See Note 1)		212,631			2,201,452
Shares converted from Investor Class (See Note 1)		(348,219	)		(3,604,600	)
Net increase (decrease)		690,246		$	7,099,476
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,734,038		$	19,168,879
Shares issued to shareholders in reinvestment of dividends		182,597			1,998,902
Shares redeemed		(1,113,969	)		(12,333,089	)
Net increase (decrease) in shares outstanding before conversion		802,666			8,834,692
Shares converted into Class A (See Note 1)		321,704			3,554,911
Shares converted from Class A (See Note 1)		(28,076	)		(314,170	)
Net increase (decrease)		1,096,294		$	12,075,433
Year ended October 31, 2010:
Shares sold		3,324,275		$	34,262,636
Shares issued to shareholders in reinvestment of dividends		217,173			2,227,781
Shares redeemed		(2,254,484	)		(23,253,208	)
Net increase (decrease) in shares outstanding before conversion		1,286,964			13,237,209
Shares converted into Class A (See Note 1)		462,810			4,788,103
Shares converted from Class A (See Note 1)		(70,095	)		(737,389	)
Net increase (decrease)		1,679,679		$	17,287,923
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		412,667		$	4,556,479
Shares issued to shareholders in reinvestment of dividends		36,074			392,795
Shares redeemed		(213,839	)		(2,354,594	)
Net increase (decrease) in shares outstanding before conversion		234,902			2,594,680
Shares converted from Class B (See Note 1)		(127,553	)		(1,399,692	)
Net increase (decrease)		107,349		$	1,194,988
Year ended October 31, 2010:
Shares sold		841,150		$	8,635,556
Shares issued to shareholders in reinvestment of dividends		41,398			422,699
Shares redeemed		(501,971	)		(5,141,901	)
Net increase (decrease) in shares outstanding before conversion		380,577			3,916,354
Shares converted from Class B (See Note 1)		(258,150	)		(2,647,566	)
Net increase (decrease)		122,427		$	1,268,788
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		549,888		$	6,064,625
Shares issued to shareholders in reinvestment of dividends		27,634			300,943
Shares redeemed		(337,591	)		(3,728,852	)
Net increase (decrease)		239,931		$	2,636,716
Year ended October 31, 2010:
Shares sold		918,173		$	9,429,966
Shares issued to shareholders in reinvestment of dividends		30,861			315,028
Shares redeemed		(678,099	)		(6,965,387	)
Net increase (decrease)		270,935		$	2,779,607
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		188,750		$	2,110,879
Shares issued to shareholders in reinvestment of dividends		9,816			108,399
Shares redeemed		(13,827	)		(153,783	)
Net increase (decrease)		184,739		$	2,065,495

72    MainStay Asset Allocation Funds

Class I	Shares			Amount
Year ended October 31, 2010:
Shares sold		411,893		$	4,220,912
Shares issued to shareholders in reinvestment of dividends		9,075			93,890
Shares redeemed		(9,174	)		(94,810	)
Net increase (decrease)		411,794		$	4,219,992

MainStay Moderate Allocation Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,304,407		$	14,667,924
Shares issued to shareholders in reinvestment of dividends		140,066			1,537,922
Shares redeemed		(597,900	)		(6,707,085	)
Net increase (decrease) in shares outstanding before conversion		846,573			9,498,761
Shares converted into Investor Class (See Note 1)		185,750			2,096,370
Shares converted from Investor Class (See Note 1)		(551,441	)		(6,195,855	)
Net increase (decrease)		480,882		$	5,399,276
Year ended October 31, 2010:
Shares sold		1,963,067		$	20,157,776
Shares issued to shareholders in reinvestment of dividends		119,553			1,209,844
Shares redeemed		(1,122,124	)		(11,480,471	)
Net increase (decrease) in shares outstanding before conversion		960,496			9,887,149
Shares converted into Investor Class (See Note 1)		416,693			4,275,033
Shares converted from Investor Class (See Note 1)		(558,097	)		(5,751,131	)
Net increase (decrease)		819,092		$	8,411,051
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,982,739		$	22,167,846
Shares issued to shareholders in reinvestment of dividends		383,698			4,209,163
Shares redeemed		(2,250,954	)		(25,261,129	)
Net increase (decrease) in shares outstanding before conversion		115,483			1,115,880
Shares converted into Class A (See Note 1)		642,975			7,215,511
Shares converted from Class A (See Note 1)		(42,120	)		(479,331	)
Net increase (decrease)		716,338		$	7,852,060
Year ended October 31, 2010:
Shares sold		4,221,034		$	43,540,034
Shares issued to shareholders in reinvestment of dividends		310,694			3,141,111
Shares redeemed		(3,822,538	)		(39,081,017	)
Net increase (decrease) in shares outstanding before conversion		709,190			7,600,128
Shares converted into Class A (See Note 1)		803,116			8,260,200
Shares converted from Class A (See Note 1)		(88,016	)		(923,758	)
Shares converted from Class A (a)		(14,050	)		(141,066	)
Net increase (decrease)		1,410,240		$	14,795,504
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		826,232		$	9,185,913
Shares issued to shareholders in reinvestment of dividends		82,894			903,548
Shares redeemed		(526,387	)		(5,843,671	)
Net increase (decrease) in shares outstanding before conversion		382,739			4,245,790
Shares converted from Class B (See Note 1)		(237,837	)		(2,636,695	)
Net increase (decrease)		144,902		$	1,609,095
Year ended October 31, 2010:
Shares sold		1,462,183		$	14,860,776
Shares issued to shareholders in reinvestment of dividends		80,744			812,281
Shares redeemed		(1,141,578	)		(11,526,687	)
Net increase (decrease) in shares outstanding before conversion		401,349			4,146,370
Shares converted from Class B (See Note 1)		(579,240	)		(5,860,344	)
Net increase (decrease)		(177,891	)	$	(1,713,974	)
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		653,392		$	7,333,724
Shares issued to shareholders in reinvestment of dividends		36,863			402,187
Shares redeemed		(520,339	)		(5,781,996	)
Net increase (decrease)		169,916		$	1,953,915
Year ended October 31, 2010:
Shares sold		984,769		$	10,061,723
Shares issued to shareholders in reinvestment of dividends		36,117			363,340
Shares redeemed		(887,066	)		(9,007,820	)
Net increase (decrease)		133,820		$	1,417,243
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		47,762		$	547,433
Shares issued to shareholders in reinvestment of dividends		16,538			182,081
Shares redeemed		(80,896	)		(913,082	)
Net increase (decrease)		(16,596	)	$	(183,568	)

mainstayinvestments.com    73

Notes to Financial Statements (unaudited) (continued)

Class I	Shares			Amount
Year ended October 31, 2010:
Shares sold		470,412		$	4,774,851
Shares issued to shareholders in reinvestment of dividends		9,026			91,561
Shares redeemed		(137,732	)		(1,407,382	)
Net increase (decrease) in shares outstanding before conversion		341,706			3,459,030
Shares converted into Class I (a)		14,009			141,066
Net increase (decrease)		355,715		$	3,600,096

MainStay Moderate Growth Allocation Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,425,469		$	15,968,199
Shares issued to shareholders in reinvestment of dividends		129,809			1,417,518
Shares redeemed		(713,253	)		(7,979,776	)
Net increase (decrease) in shares outstanding before conversion		842,025			9,405,941
Shares converted into Investor Class (See Note 1)		205,469			2,301,848
Shares converted from Investor Class (See Note 1)		(635,017	)		(7,072,593	)
Net increase (decrease)		412,477		$	4,635,196
Year ended October 31, 2010:
Shares sold		2,545,088		$	25,270,104
Shares issued to shareholders in reinvestment of dividends		121,674			1,202,108
Shares redeemed		(1,491,708	)		(14,729,589	)
Net increase (decrease) in shares outstanding before conversion		1,175,054			11,742,623
Shares converted into Investor Class (See Note 1)		531,286			5,268,732
Shares converted from Investor Class (See Note 1)		(511,051	)		(5,100,057	)
Net increase (decrease)		1,195,289		$	11,911,298
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,326,990		$	14,876,953
Shares issued to shareholders in reinvestment of dividends		201,336			2,198,593
Shares redeemed		(1,844,276	)		(20,684,653	)
Net increase (decrease) in shares outstanding before conversion		(315,950	)		(3,609,107	)
Shares converted into Class A (See Note 1)		734,388			8,173,755
Shares converted from Class A (See Note 1)		(30,666	)		(349,894	)
Net increase (decrease)		387,772		$	4,214,754
Year ended October 31, 2010:
Shares sold		2,689,273		$	26,869,688
Shares issued to shareholders in reinvestment of dividends		195,391			1,927,906
Shares redeemed		(3,422,884	)		(33,918,541	)
Net increase (decrease) in shares outstanding before conversion		(538,220	)		(5,120,947	)
Shares converted into Class A (See Note 1)		828,201			8,249,330
Shares converted from Class A (See Note 1)		(111,157	)		(1,135,492	)
Net increase (decrease)		178,824		$	1,992,891
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		842,954		$	9,337,247
Shares issued to shareholders in reinvestment of dividends		50,809			549,758
Shares redeemed		(745,423	)		(8,230,110	)
Net increase (decrease) in shares outstanding before conversion		148,340			1,656,895
Shares converted from Class B (See Note 1)		(278,182	)		(3,053,116	)
Net increase (decrease)		(129,842	)	$	(1,396,221	)
Year ended October 31, 2010:
Shares sold		1,709,624		$	16,740,837
Shares issued to shareholders in reinvestment of dividends		62,979			616,569
Shares redeemed		(1,368,005	)		(13,330,092	)
Net increase (decrease) in shares outstanding before conversion		404,598			4,027,314
Shares converted from Class B (See Note 1)		(746,529	)		(7,282,513	)
Net increase (decrease)		(341,931	)	$	(3,255,199	)
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		321,143		$	3,561,595
Shares issued to shareholders in reinvestment of dividends		12,230			132,330
Shares redeemed		(290,808	)		(3,201,756	)
Net increase (decrease)		42,565		$	492,169
Year ended October 31, 2010:
Shares sold		580,786		$	5,719,600
Shares issued to shareholders in reinvestment of dividends		13,881			135,896
Shares redeemed		(514,103	)		(4,988,663	)
Net increase (decrease)		80,564		$	866,833
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		81,488		$	876,184
Shares issued to shareholders in reinvestment of dividends		2,341			25,727
Shares redeemed		(43,043	)		(498,141	)
Net increase (decrease)		40,786		$	403,770

74    MainStay Asset Allocation Funds

Class I	Shares			Amount
Year ended October 31, 2010:
Shares sold		8,465		$	85,217
Shares issued to shareholders in reinvestment of dividends		1,122			11,153
Shares redeemed		(3,428	)		(34,057	)
Net increase (decrease)		6,159		$	62,313

MainStay Growth Allocation Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		739,252		$	8,118,200
Shares issued to shareholders in reinvestment of dividends		29,537			317,227
Shares redeemed		(457,332	)		(5,030,030	)
Net increase (decrease) in shares outstanding before conversion		311,457			3,405,397
Shares converted into Investor Class (See Note 1)		121,178			1,332,657
Shares converted from Investor Class (See Note 1)		(327,076	)		(3,559,278	)
Net increase (decrease)		105,559		$	1,178,776
Year ended October 31, 2010:
Shares sold		1,495,246		$	14,302,491
Shares issued to shareholders in reinvestment of dividends		32,807			315,270
Shares redeemed		(1,082,793	)		(10,281,933	)
Net increase (decrease) in shares outstanding before conversion		445,260			4,335,828
Shares converted into Investor Class (See Note 1)		318,289			3,035,630
Shares converted from Investor Class (See Note 1)		(388,946	)		(3,771,980	)
Net increase (decrease)		374,603		$	3,599,478
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		684,890		$	7,545,681
Shares issued to shareholders in reinvestment of dividends		33,130			355,813
Shares redeemed		(968,511	)		(10,682,154	)
Net increase (decrease) in shares outstanding before conversion		(250,491	)		(2,780,660	)
Shares converted into Class A (See Note 1)		373,366			4,058,217
Shares converted from Class A (See Note 1)		(19,739	)		(222,463	)
Net increase (decrease)		103,136		$	1,055,094
Year ended October 31, 2010:
Shares sold		1,062,680		$	10,154,424
Shares issued to shareholders in reinvestment of dividends		35,847			344,446
Shares redeemed		(1,466,617	)		(14,028,997	)
Net increase (decrease) in shares outstanding before conversion		(368,090	)		(3,530,127	)
Shares converted into Class A (See Note 1)		519,624			5,023,595
Shares converted from Class A (See Note 1)		(39,936	)		(393,783	)
Shares converted from Class A (a)		(727	)		(6,836	)
Net increase (decrease)		110,871		$	1,092,849
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		458,405		$	4,952,802
Shares redeemed		(442,425	)		(4,787,635	)
Net increase (decrease) in shares outstanding before conversion		15,980			165,167
Shares converted from Class B (See Note 1)		(150,404	)		(1,609,133	)
Net increase (decrease)		(134,424	)	$	(1,443,966	)
Year ended October 31, 2010:
Shares sold		904,614		$	8,516,103
Shares redeemed		(876,132	)		(8,183,484	)
Net increase (decrease) in shares outstanding before conversion		28,482			332,619
Shares converted from Class B (See Note 1)		(415,474	)		(3,893,462	)
Net increase (decrease)		(386,992	)	$	(3,560,843	)
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		186,753		$	2,027,583
Shares redeemed		(145,273	)		(1,558,293	)
Net increase (decrease)		41,480		$	469,290
Year ended October 31, 2010:
Shares sold		277,537		$	2,638,164
Shares redeemed		(341,778	)		(3,224,797	)
Net increase (decrease)		(64,241	)	$	(586,633	)
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		19,079		$	207,902
Shares issued to shareholders in reinvestment of dividends		935			10,130
Shares redeemed		(24,486	)		(269,947	)
Net increase (decrease)		(4,472	)	$	(51,915	)
Year ended October 31, 2010:
Shares sold		56,448		$	541,847
Shares issued to shareholders in reinvestment of dividends		1,011			9,797
Shares redeemed		(50,697	)		(482,535	)
Net increase (decrease) in shares outstanding before conversion		6,762			69,109
Shares converted into Class I (a)		720			6,836
Net increase (decrease)		7,482		$	75,945

mainstayinvestments.com    75

Notes to Financial Statements (unaudited) (continued)

(a)  In addition to any automatic conversion features described above in Note 1 with respect to Investor Class, Class A and B shares, an investor generally may also elect to convert their shares on a voluntary basis into another share class of the same fund for which an investor is eligible. However, the following limitations apply;

    •  Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and

    •  All Class B and C shares are ineligible for a voluntary conversion.

These limitations do not impact any automatic conversion features described in Note 1 with respect to investor Class, Class A and B shares.

An investor or an investor’s financial intermediary may contact the Allocation Funds to request a voluntary conversion between shares classes of the same Allocation Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will be made on the basis of the relevant NAVs of the two classes without the imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an investor may automatically be converted back to their original share class, or into another share class, if appropriate.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Allocation Funds as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Allocation Funds’ management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

76    MainStay Asset Allocation Funds

Board Consideration and Approval of Management Agreements (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreements between the MainStay Conservative Allocation Fund, MainStay Growth Allocation Fund, MainStay Moderate Allocation Fund and MainStay Moderate Growth Allocation Fund (“Allocation Funds”) and New York Life Investment Management LLC (“New York Life Investments”). In approving these agreements (the “Agreements”), the Board noted that because it had approved the termination of the Subadvisory Agreements between New York Life Investments and Madison Square Investors LLC (“MSI”) on behalf of the Allocation Funds at its meeting on December 2, 2010, to be effective January 1, 2011, New York Life Investments would be assuming day-to-day portfolio management responsibilities for the Allocation Funds on that date.

The Board previously considered and approved the Agreements at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Allocation Funds prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Allocation Funds’ investment performance, management fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Allocation Funds, and the rationale for any differences in the Allocation Funds’ management fees and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Allocation Funds to New York Life Investments and its affiliates, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Allocation Funds prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Allocation Funds by New York Life Investments; (ii) the investment performance of the Allocation Funds and New York Life Investments; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates from their relationship with the Allocation Funds; (iv) the extent to which economies of scale may be realized as the Allocation Funds grow, and the extent to which economies of scale may benefit Allocation Funds investors; and (v) the reasonableness of the Allocation Funds’ management fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year with respect to New York Life Investments and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Allocation Funds, and that the Allocation Funds’ shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Allocation Funds. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Allocation Funds. The Board evaluated New York Life Investments’ experience in serving as manager of the Allocation Funds, noting that New York Life Investments manages other mutual funds and serves a variety of other investment advisory clients, including other pooled investment vehicles. The Board considered the experience of senior personnel at New York Life Investments providing investment advisory, management and administrative services to the Allocation Funds, as well as New York Life Investments’ reputation and financial condition. In this regard, the Board considered the experience of each Allocation Fund’s portfolio managers, the number of accounts managed by the portfolio managers and New York Life Investments’ method for compensating portfolio managers. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Allocation Funds’ legal and compliance environment, for overseeing compliance with the Allocation Funds’ policies and investment objectives, and for implementing Board directives as they relate to the Allocation Funds. The Board considered New York Life Investments’ willingness to

mainstayinvestments.com    77

Board Consideration and Approval of Management Agreements (Unaudited) (continued)

invest in personnel that benefit the Allocation Funds, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Allocation Funds’ officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Allocation Funds’ prospectus.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Allocation Funds likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ experience, personnel, operations and resources.

Investment Performance

In evaluating the Allocation Funds’ investment performance, the Board considered investment performance results in light of the Allocation Funds’ investment objectives, strategies and risks, as disclosed in the Allocation Funds’ prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Allocation Funds’ performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Allocation Funds’ gross and net returns, the Allocation Funds’ investment performance relative to relevant investment categories and Fund benchmarks, the Allocation Funds’ risk-adjusted investment performance, and the Allocation Funds’ investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Allocation Funds as compared to peer funds. In evaluating the performance of the Allocation Funds, the Board also took into account whether the Allocation Funds had been in operation for a sufficient time period to establish a meaningful investment performance track record. The Board further noted that, while the historical investment performance of the Allocation Funds related to periods in which MSI served as subadvisor, one of the portfolio managers of the Allocation Funds for MSI would remain a portfolio manager as an employee of New York Life Investments upon the assumption of day-to-day portfolio management responsibilities by New York Life Investments.

In considering the Allocation Funds’ investment performance, the Board focused principally on the Allocation Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Allocation Funds’ investment performance, as well as discussions between the Allocation Funds’ portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Because the Allocation Funds invest substantially all of their assets in other funds advised by New York Life Investments, the Board considered the rationale for the allocation among and selection of the underlying funds in which the Allocation Funds invest, including the investment performance of the underlying funds.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Allocation Funds, along with ongoing efforts by New York Life Investments to enhance investment returns, supported a determination to approve the Agreements. The Allocation Funds disclose more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Allocation Funds’ prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments

The Board considered the costs of the services provided by New York Life Investments under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Allocation Funds. The Board noted that the Allocation Funds do not pay a management fee to New York Life Investments, but that the shareholders of the Allocation Funds indirectly pay the management fees of the underlying funds in which the Allocation Funds invest. The Board considered that the underlying funds are affiliates of New York Life Investments, thereby indirectly benefiting New York Life Investments.

In evaluating any costs and profits of New York Life Investments and its affiliates due to their relationships with the Allocation Funds, the Board considered, among other factors, New York Life Investments’ investments in personnel, systems, equipment and other resources necessary to manage the Allocation Funds. The Board acknowledged that New York Life Investments must be in a position to pay and retain experienced professional personnel to provide services to the Allocation Funds, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Allocation Funds. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that each Allocation Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board acknowledged that New York Life Investments’ efforts to encourage New York Life Insurance Company (“New York Life”) agents to consolidate multiple small accounts held by the same investor into an Allocation Fund account, among other initiatives discussed below, is intended to mitigate the effect of small accounts on Funds in the MainStay Group of Funds.

The Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Allocation Funds, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Allocation Funds, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Allocation Funds. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Allocation Funds, New York Life Investments’ affiliates also earn

78    MainStay Asset Allocation Funds

revenues from serving the Allocation Funds in various other capacities, including as the Allocation Funds’ transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Allocation Funds to New York Life Investments and its affiliates was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Allocation Funds to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Allocation Funds on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates due to their relationships with the Allocation Funds supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the Allocation Funds Grow

The Board also considered whether the Allocation Funds’ expense structures permitted economies of scale to be shared with Allocation Fund investors. The Board noted that New York Life Investments does not charge a management fee to the Allocation Funds, and that the Board separately considers economies of scale as part of its review of the management agreements of the underlying funds in which the Allocation Funds invest.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Allocation Funds’ expense structures appropriately reflect economies of scale for the benefit of Fund investors.

Management Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Allocation Funds’ expected total ordinary operating expenses. The Board also considered the impact of the Allocation Funds’ expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Allocation Funds’ total ordinary operating expenses. The Board also considered the impact of the Allocation Funds’ expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Allocation Funds’ total ordinary operating expenses.

In assessing the reasonableness of the Allocation Funds’ fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. Because the Allocation Funds do not pay a management fee to New York Life Investments, the Board considered the reasonableness of the fees and expenses the Allocation Funds indirectly pay by investing in underlying funds that charge management fees. The Board considered New York Life Investments’ process for monitoring and disclosing potential conflicts in the selection of underlying funds for the Allocation Funds. In addition, the Board considered information provided by New York Life Investments on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Allocation Funds. In this regard, the Board took into account explanations from New York Life Investments about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Allocation Funds based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees, which are charged based on the Allocation Funds’ average net assets. The Board took into account information from New York Life Investments showing that the Allocation Funds’ transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Allocation Funds’ transfer agent, charges the Allocation Funds are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC���s profitability in connection with the transfer agent services it provides to the Funds.

The Board observed that, because the Allocation Funds’ transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Allocation Funds’ management fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

mainstayinvestments.com    79

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Allocation Funds’ securities is available without charge, upon request, (i) by visiting the Allocation Funds’ website at mainstayinvestments.com; and (ii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The MainStay Funds are required to file with the SEC their proxy voting records for each Allocation Fund for the 12-month period ending June 30 on Form N-PX. The most recent Form N-PX is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the MainStay Funds’ website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

Each Allocation Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Each Allocation Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

80    MainStay Asset Allocation Funds

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MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23078 MS136-11 MSAA10-06/11

A2

MainStay Epoch Global Choice Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	14
Notes to Financial Statements	21
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	27
Proxy Voting Policies and Procedures and Proxy Voting Record	31
Shareholder Reports and Quarterly Portfolio Disclosure	31

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since
												Inception			Gross
												of Class			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(11/16/09)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		6	.33%		9	.57%		0	.45%		1	.27%		2	.10%
		Excluding sales charges		12	.52		15	.94		1	.59		2	.26		2	.10

												Since
												Inception			Gross
												of Class			Expense
Class	Sales Charge			Six Months			One Year			Five Years		(8/15/06)			Ratio2
Class A Shares4	Maximum 5.5% Initial Sales Charge	With sales charges	��		6	.39%		9	.78%		—		1	.21%		1	.88%
		Excluding sales charges			12	.58		16	.17		—		2	.43		1	.88

												Since
												Inception			Gross
												of Class			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(11/16/09)			Ratio2
Class C Shares3	Maximum 1% CDSC	With sales charges		11	.11%		13	.96%		1	.22%		1	.83%		2	.85%
	if Redeemed Within One Year of Purchase	Excluding sales charges		12	.11		14	.96		1	.22		1	.83		2	.85

											Since
											Inception			Gross
											of Class			Expense
Class	Sales Charge	Six Months			One Year			Five Years			(7/25/05)			Ratio2
Class I Shares4	No Sales Charge		12	.73%		16	.40%		2	.28%		2	.90%		1	.63%

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class and Class C shares, first offered on November 16, 2009, includes the historical performance of Class I shares through November 15, 2009 adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class and Class C shares might have been lower.
4.	Performance figures for Class I shares and Class A shares reflect the historical performance of the Institutional shares since July 25, 2005 and

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

										Since
	Six			One			Five			Inception
Benchmark Performance	Months			Year			Years			of the Fund
MSCI World Index5		14	.75%		18	.25%		2	.32%		4	.97%
Average Lipper Global Multi-Cap Growth Fund6		13	.09		21	.15		3	.98		6	.42

the Class P shares since August 15, 2006, respectively, of the Epoch U.S. All Cap Equity Fund (the predecessor to the Fund), which was subject to a different fee structure and for which Epoch Investment Partners, Inc. served as investment advisor, for periods prior to November 16, 2009.

5.

The Morgan Stanley Capital International (“MSCI”) World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. Total returns assume reinvestment of all dividends and capital gains. The MSCI World Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an Index.

6.

The average Lipper global multi-cap growth fund is representative of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time. Global multi-cap growth funds typically have an above-average price-to cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to the S&P/Citigroup BMI Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on total returns with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Epoch Global Choice Fund

Cost in Dollars of a $1,000 Investment in MainStay Epoch Global Choice Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,125.20	$	9.06	$	1,016.30	$	8.60
Class A Shares	$	1,000.00	$	1,125.80	$	8.12	$	1,017.20	$	7.70
Class C Shares	$	1,000.00	$	1,121.10	$	12.99	$	1,012.50	$	12.33
Class I Shares	$	1,000.00	$	1,127.30	$	6.80	$	1,018.40	$	6.46

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.72% for Investor Class, 1.54% for Class A, 2.47% for Class C and 1.29% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Industry Composition as of April 30, 2011 (Unaudited)

Health Care Providers & Services	11.6	%
Media	9.1
Internet Software & Services	7.7
Software	5.4
Aerospace & Defense	5.2
Oil, Gas & Consumable Fuels	4.7
Diversified Financial Services	4.3
Beverages	4.1
Energy Equipment & Services	3.9
Insurance	3.7
Chemicals	3.2
Machinery	3.2
Pharmaceuticals	3.1
Textiles, Apparel & Luxury Goods	3.0
Metals & Mining	2.9
Food & Staples Retailing	2.7
Wireless Telecommunication Services	2.6
Household Durables	2.5
IT Services	2.4
Computers & Peripherals	2.3
Auto Components	2.2
Electrical Equipment	2.2
Semiconductors & Semiconductor Equipment	1.6
Short-Term Investment	2.4
Other Assets, Less Liabilities	4.0
	100.0	%

See Portfolio of Investments beginning on page 11 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	InBev N.V.
2.	Fresenius Medical Care A.G. & Co. KGaA
3.	MetLife, Inc.
4.	Comcast Corp. Class A
5.	Oracle Corp.
6.	BASF S.E.
7.	Danaher Corp.
8.	Teva Pharmaceutical Industries, Ltd., Sponsored ADR
9.	Yahoo!, Inc.
10.	Laboratory Corp. of America Holdings

8    MainStay Epoch Global Choice Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers William Priest, CFA, Michael Welhoelter, CFA, and David Pearl of Epoch Investment Partners, Inc., the Fund’s Subadvisor.

How did MainStay Epoch Global Choice Fund perform relative to its peers and its benchmark for the six months ended April 30, 2011?

Excluding all sales charges, MainStay Epoch Global Choice Fund returned 12.52% for Investor Class shares, 12.58% for Class A shares and 12.11% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 12.73%. All share classes underperformed the 13.09% return of the average Lipper¹ global multi-cap growth fund and the 14.75% return of the MSCI World Index² for the six months ended April 30, 2011. The MSCI World Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

During the reporting period, the Fund produced strong absolute returns, but lagged the MSCI World Index. The very low interest-rate environment encouraged and supported speculation. In the equity market, this translated into stronger performance among securities with higher risk. Lower-quality stocks performed much better than stocks of large, well-capitalized companies. Equity markets rose in response to the supportive monetary-policy environment expressed through the Federal Reserve’s second round of quantitative easing. (Quantitative easing is the direct purchase of securities by the Federal Reserve.) Improving employment data in the United States, better-than-expected corporate earnings reports and a modest pickup in merger and acquisition activity also helped the market. Investors generally ignored the challenges of higher oil prices stemming from unrest in the Middle East, the negative market consequences following the earthquake in Japan and the renewal of widening spreads³ for European sovereign debt.

The Fund’s performance relative to the MSCI World Index was hurt by an underweight position in the industrials sector (industrial stocks performed well during the reporting period) and by an underweight position in energy stocks. The Fund’s exposure to telecommunication services stocks also proved to be a drag on returns as the sector lagged other defensive areas.

The Fund’s returns were helped by an overweight position relative to the MSCI World Index in the consumer discretionary sector. An underweight position in financials relative to the benchmark helped as that sector lagged the MSCI World Index.

On the country level, the Fund’s exposure to emerging markets Brazil and China proved negative, while having relatively little exposure to Japan was helpful, as that market proved to be very weak over the reporting period. Stock selection and a modest overweight in the U.S. relative to the MSCI World Index also contributed to relative performance.

During the reporting period, which sectors were the strongest contributors to the Funds relative perfor-mance and which sectors were particularly weak?

During the reporting period, the consumer discretionary sector made the strongest positive sector contribution to the Fund’s performance relative to the MSCI World Index. (Contributions take weightings and total returns into account.) The Fund benefited from strong stock selection along with an overweight position in this sector which performed well. Financials made the second-strongest sector contribution to the Fund’s relative performance. A significantly underweight position in this sector, which performed modestly relative to the overall market, and strong stock selection contributed positively to the Fund’s relative performance.

During the reporting period, industrials made the weakest sector contribution to the Fund’s relative performance because of poor stock selection and a slightly underweight position relative to the MSCI World Index. The Fund’s underweight position in energy detracted from the Fund’s relative performance when the sector outpaced the MSCI World Index. Telecommunication services made the third-weakest contribution to the Fund’s relative performance because of weak stock selection in the sector which lagged the benchmark.

During the reporting period, which individual stocks made the strongest contributions to the Fund’s absolute performance and which stocks detracted the most?

During the reporting period, the stock that made the strongest contribution to the Fund’s absolute performance was Comcast, a provider of video, high-speed Internet and phone services to residential and business customers in the United States. During the reporting period, Comcast completed its merger with NBC Universal, increased its annual dividend and initiated a share repurchase program. The company also posted strong earnings and continued to make investments in its products and services.

The Fund’s second-strongest contributor to absolute performance was Tupperware Brands, a U.S.-based global direct seller of food storage equipment. The company benefited from exposure to emerging-market consumers, with emerging-market sales up more than 20% year-over-year. Tupperware also bene-fited from a weakening dollar as the majority of the company’s sales are from outside the United States.

Integrated oil and gas company Occidental Petroleum made the third-strongest contribution to the Fund’s absolute performance.

  1. See footnote on page 6 for more information on Lipper Inc.

2. See footnote on page 6 for more information on the MSCI World Index.
3. The term “spread” may refer to the difference in yield between a security or type of security and comparable U.S. treasury issues. The term may also refer to the difference in yield between two specific securities or types of securities at a given time.

mainstayinvestments.com    9

During the reporting period, the company reported improved earnings and benefited from higher crude oil prices.

The Fund’s weakest contribution to absolute performance came from OGX Petroleo e Gas Participacoes S.A., a Brazil-based company focused on oil & gas exploration & production in offshore sedimentary basins. We believed that the company suffered from a lack of progress in realizing value from its oil and gas reserves.

China Mobile Ltd., which provides a range of mobile telecommunication services in mainland China, was the Fund’s second-weakest contributor. The company faced concerns over possible increased competition from other mobile operators and challenges to growth from increased market penetration. In our view, investors also became concerned that tightening measures taken to address underlying inflationary pressures in China might broadly affect consumer spending.

Global pharmaceutical company Teva Pharmaceutical Industries develops, produces and markets generic drugs in all treatment categories. Near-term weak generic drug sales in the United States, coupled with a lack of new launches and a drop in production capacity, weighed on the company’s stock price, making it the third-weakest contributor to the Fund’s absolute performance.

Did the Fund make any significant purchases or sales during the reporting period?

The Fund purchased BASF S.E., a leading chemical company. By disposing of its commodity chemical businesses, BASF has moved up the value chain into specialty ingredients that are more defensive and less cyclical. Over the medium-term, we expect that BASF’s partnership with Monsanto should provide a significant uplift to BASF’s agricultural solutions segment, which today represents less than 10% of BASF’s profit. Finally, the management team is very much aligned with our free cash flow and capital allocation philosophy, with a particularly strong emphasis on return on invested capital relative to the company’s weighted average cost of capital.

Internet company Yahoo! was repurchased at what we felt was an attractive valuation after we saw signs that the company was making slow but steady progress in its operational turnaround. We also gained increased confidence in management’s commitment to unlocking the value of Yahoo’s Asian assets.

The Fund also added a position in Pearson PLC, a U.K. firm with leadership in both traditional and digital education materials. Despite state funding issues in the United States, school system adoptions of Pearson’s products should be positive this year, and the company is a leader in education initiatives in the emerging world.

Significant sales included Anadarko Petroleum, an independent oil & gas exploration & production company. The stock was sold following a sharp rise in the company’s share price from the low point experienced after the Gulf of Mexico crisis.

We sold the Fund’s position in OGX Petroleo e Gas Participacoes after the company announced that it was postponing the sale of a minority interest in its offshore Brazilian acreage. We saw this potential transaction as a key value-realization catalyst and decided to exit the position once the delay was announced.

We sold the Fund’s position in China Mobile on concerns that Chinese interest-rate-tightening policy measures in response to inflationary pressures might dampen the company’s growth prospects and affect the stock’s valuation.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, we increased the Fund’s positions in the consumer discretionary and information technology sectors. In both cases, the Fund moved from overweight positions relative to the MSCI World Index to significantly overweight positions relative to the benchmark. We also increased the Fund’s materials allocation, but remained underweight relative to the benchmark.

Over the same period, the Fund reduced its allocation to the health care sector, but remained overweight relative to the MSCI World Index. We reduced the Fund’s position in telecommunication services, moving from an overweight position to an underweight position relative to the benchmark. The Fund’s energy exposure was also reduced, as the Fund moved from a market-neutral position to one that was underweight relative to the MSCI World Index.

How was the Fund positioned at the end of April 2011?

As of April 30, 2011, the Fund’s most substantially overweight sectors relative to the MSCI World Index were information technology, consumer discretionary and health care. As of the same date, the Fund’s most substantially underweight sectors relative to the MSCI World Index were financials, energy and consumer staples.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay Epoch Global Choice Fund

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares		Value
Common Stocks 93.6%†
Aerospace & Defense 5.2%
Boeing Co. (The)		18,850	$	1,503,853
Rockwell Collins, Inc.		23,000		1,451,300
				2,955,153
Auto Components 2.2%
Compagnie Generale des Etablissements Michelin Class B		12,500		1,252,868
Beverages 4.1%
X  InBev N.V.		36,700		2,340,121
Chemicals 3.2%
X  BASF S.E.		17,850		1,834,834
Computers & Peripherals 2.3%
Apple, Inc. (a)		3,850		1,340,686
Diversified Financial Services 4.3%
Deutsche Boerse A.G.		12,950		1,076,048
NYSE Euronext		34,700		1,389,735
				2,465,783
Electrical Equipment 2.2%
Alstom S.A.		19,350		1,286,702
Energy Equipment & Services 3.9%
Core Laboratories N.V.		8,650		830,227
Subsea 7 S.A.		52,350		1,376,949
				2,207,176
Food & Staples Retailing 2.7%
Carrefour S.A.		32,650		1,547,989
Health Care Providers & Services 11.6%
Bio-Reference Laboratories, Inc. (a)		47,150		1,188,652
X  Fresenius Medical Care A.G. & Co. KGaA		27,600		2,169,079
X  Laboratory Corp. of America Holdings (a)		17,750		1,712,342
UnitedHealth Group, Inc.		31,500		1,550,745
				6,620,818
Household Durables 2.5%
Tupperware Brands Corp.		22,250		1,416,658
Insurance 3.7%
X  MetLife, Inc.		44,700		2,091,513
Internet Software & Services 7.7%
Gree, Inc.		71,800		1,460,519
Tencent Holdings, Ltd.		41,900		1,197,721
X  Yahoo!, Inc. (a)		97,200		1,725,300
				4,383,540
IT Services 2.4%
Visa, Inc. Class A		17,610		1,375,693
Machinery 3.2%
X  Danaher Corp.		32,650		1,803,586
Media 9.1%
X  Comcast Corp. Class A		81,500		2,000,825
Pearson PLC		81,000		1,557,284
SES S.A.		61,800		1,622,917
				5,181,026
Metals & Mining 2.9%
Barrick Gold Corp.		31,900		1,629,137
Oil, Gas & Consumable Fuels 4.7%
Devon Energy Corp.		15,750		1,433,250
Occidental Petroleum Corp.		11,150		1,274,333
				2,707,583
Pharmaceuticals 3.1%
X  Teva Pharmaceutical Industries, Ltd., Sponsored ADR (b)		38,450		1,758,319
Semiconductors & Semiconductor Equipment 1.6%
Varian Semiconductor Equipment Associates, Inc. (a)		22,200		930,846
Software 5.4%
Microsoft Corp.		43,950		1,143,579
X  Oracle Corp.		54,430		1,962,201
				3,105,780
Textiles, Apparel & Luxury Goods 3.0%
LVMH Moet Hennessy Louis Vuitton S.A.		9,500		1,706,100
Wireless Telecommunication Services 2.6%
Vodafone Group PLC		510,150		1,462,253
Total Common Stocks (Cost $45,722,304)				53,404,164

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. Any of the ten largest holdings may be a security traded on more than one exchange. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal
	Amount			Value
Short-Term Investment 2.4%
Repurchase Agreement 2.4%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $1,351,644 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $1,380,000 and a Market Value of $1,379,993)	$	1,351,643		$	1,351,643
Total Short-Term Investment (Cost $1,351,643)					1,351,643
Total Investments (Cost $47,073,947) (c)		96.0	%		54,755,807
Other Assets, Less Liabilities		4.0			2,278,686
Net Assets		100.0	%	$	57,034,493

(a)	Non-income producing security.
(b)	ADR—American Depositary Receipt.
(c)	At April 30, 2011, cost is $47,550,304 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	8,144,841
Gross unrealized depreciation		(939,338	)
Net unrealized appreciation	$	7,205,503

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	53,404,164	$	—	$	—	$	53,404,164
Short-Term Investment
Repurchase Agreement		—		1,351,643		—		1,351,643
Total Investments in Securities	$	53,404,164	$	1,351,643	$	—	$	54,755,807

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

The Fund recognizes transfers between the levels as of the beginning of the period.

At October 31, 2010 and April 30, 2011 foreign equity securities were not fair valued, as a result there were no transfers between Level 1 and Level 2 for value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

12    MainStay Epoch Global Choice Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

																						Change in
																						Unrealized
																						Appreciation
																						(Depreciation)
																						from
	Balance							Change in												Balance		Investments
	as of		Accrued		Realized			Unrealized								Transfers		Transfers		as of		Still Held at
Investments in	October 31,		Discounts		Gain			Appreciation								in to		out of		April 30,		April 30,
Securities	2010		(Premiums)		(Loss)			(Depreciation)			Purchases		Sales			Level 3		Level 3		2011		2011 (a)
Common Stock
Aerospace & Defense	$	14,577	$	—	$	(65	)	$	(167	)	$	—	$	(14,345	)	$	—	$	—	$	—	$	—
Total	$	14,577	$	—	$	(65	)	$	(167	)	$	—	$	(14,345	)	$	—	$	—	$	—	$	—

(a)  Included in “Net change in unrealized appreciation (depreciation) on investments” in the Statement of Operations.

The table below sets forth the diversification of the Mainstay Epoch Global Choice Fund investments by country.

Country Composition

	Value		Percent †
Belgium	$	2,340,121		4.1	%
Canada		1,629,137		2.8
Cayman Islands		1,197,721		2.1
France		5,793,659		10.2
Germany		5,079,961		8.9
Israel		1,758,319		3.1
Japan		1,460,519		2.6
Luxembourg		2,999,866		5.3
Netherlands		830,227		1.4
United Kingdom		3,019,537		5.3
United States		28,646,740		50.2
		54,755,807		96.0
Other Assets, Less Liabilities		2,278,686		4.0
Net Assets	$	57,034,493		100.0	%

† Percentages indicated are based on Fund net assets.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $47,073,947)	$	54,755,807
Cash denominated in foreign currencies (identified cost $1,104,875)		1,144,877
Receivables:
Investment securities sold		1,051,264
Dividends		131,628
Fund shares sold		6,803
Other assets		28,814
Total assets		57,119,193
Liabilities
Payables:
Manager (See Note 3)		42,450
Professional fees		26,060
Shareholder communication		8,070
Custodian		5,168
Transfer agent (See Note 3)		2,097
NYLIFE Distributors (See Note 3)		421
Trustees		232
Accrued expenses		202
Total liabilities		84,700
Net assets	$	57,034,493
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	3,483
Additional paid-in capital		59,838,056
		59,841,539
Distribution in excess of net investment income		(247,686	)
Accumulated net realized gain (loss) on investments and foreign currency transactions		(10,290,634	)
Net unrealized appreciation (depreciation) on investments		7,681,860
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies		49,414
Net assets	$	57,034,493
Investor Class
Net assets applicable to outstanding shares	$	219,198
Shares of beneficial interest outstanding		13,707
Net asset value per share outstanding	$	15.99
Maximum sales charge (5.50% of offering price)		0.93
Maximum offering price per share outstanding	$	16.92
Class A
Net assets applicable to outstanding shares	$	1,752,412
Shares of beneficial interest outstanding		109,429
Net asset value per share outstanding	$	16.01
Maximum sales charge (5.50% of offering price)		0.93
Maximum offering price per share outstanding	$	16.94
Class C
Net assets applicable to outstanding shares	$	53,070
Shares of beneficial interest outstanding		3,353
Net asset value and offering price per share outstanding	$	15.83
Class I
Net assets applicable to outstanding shares	$	55,009,813
Shares of beneficial interest outstanding		3,356,354
Net asset value and offering price per share outstanding	$	16.39

14    MainStay Epoch Global Choice Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	422,233
Expenses
Manager (See Note 3)		280,870
Registration		41,279
Professional fees		25,514
Custodian		15,311
Shareholder communication		13,457
Transfer agent (See Note 3)		6,902
Distribution/Service—Investor Class (See Note 3)		191
Distribution/Service—Class A (See Note 3)		2,162
Distribution/Service—Class C (See Note 3)		213
Trustees		892
Miscellaneous		11,719
Total expenses before waiver/reimbursement		398,510
Expense waiver/reimbursement from Manager (See Note 3)		(33,457	)
Net expenses		365,053
Net investment income (loss)		57,180
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions	$	3,265,520
Foreign currency transactions		32,868
Net realized gain (loss) on investments and foreign currency transactions		3,298,388
Net change in unrealized appreciation (depreciation) on:
Investments		3,312,434
Translation of other assets and liabilities in foreign currencies		31,014
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		3,343,448
Net realized and unrealized gain (loss) on investments and foreign currency transactions		6,641,836
Net increase (decrease) in net assets resulting from operations	$	6,699,016

(a)  Dividends recorded net of foreign withholding taxes in the amount of $27,653.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited), the period January 1, 2010 through October 31, 2010 (a) and the year ended December 31, 2009

	2011			2010			2009
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	57,180		$	153,793		$	389,464
Net realized gain (loss) on investments and foreign currency transactions		3,298,388			(195,401	)		(7,201,136	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		3,343,448			2,877,788			22,464,691
Net increase (decrease) in net assets resulting from operations		6,699,016			2,836,180			15,653,019
Dividends and distributions to shareholders:
From net investment income:
Investor Class		—			—			(88	)
Class A		(1,344	)		—			(16,477	)
Class C		—			—			(71	)
Class I		(197,166	)		—			(376,919	)
Total dividends and distributions to shareholders		(198,510	)		—			(393,555	)
Capital share transactions:
Net proceeds from sale of shares	$	13,154,579		$	32,585,851		$	42,609,969
Net asset value of shares issued to shareholders in reinvestment of dividends		189,249			—			349,914
Cost of shares redeemed		(19,516,904	)		(20,719,033	)(b)		(73,269,346	)(b)
Increase (decrease) in net assets derived from capital share transactions		(6,173,076	)		11,866,818			(30,309,463	)
Net increase (decrease) in net assets		327,430			14,702,998			(15,049,999	)
Net Assets
Beginning of period		56,707,063			42,004,065			57,054,064
End of period	$	57,034,493		$	56,707,063		$	42,004,065
Distributions in excess of net investment income at end of period	$	(247,686	)	$	(106,356	)	$	(66,130	)

(a)	The Fund changed its fiscal year end from December 31 to October 31.
(b)	Cost of shares redeemed net of redemption fees of $1 and $— for the ten-month period ended October 31, 2010 and year ended December 31, 2009, respectively. (See Note 2 (J))

16    MainStay Epoch Global Choice Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
				January 1,			November 16,
	Six months			2010			2009**
	ended			through			through
	April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	14.22		$	13.49		$	13.36
Net investment income (loss) (a)		(0.01	)		(0.02	)		0.00	‡
Net realized and unrealized gain (loss) on investments		1.76			0.80			0.18
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.05	)		(0.00	)‡
Total from investment operations		1.77			0.73			0.18
Less dividends:
From net investment income		—			—			(0.05	)
Net asset value at end of period	$	15.99		$	14.22		$	13.49
Total investment return (b)		12.45	% (c)(d)		5.41	% (c)		1.33	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.17	%)††		(0.17	%)††		0.03	%††
Net expenses		1.72	% ††		1.76	% ††		1.53	%††
Expenses (before waiver/reimbursement)		1.84	% ††		2.10	% ††		1.72	%††
Portfolio turnover rate		67	%		151	%		74	%
Net assets at end of period (in 000’s)	$	219		$	119		$	28

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class A
				January 1,												August 15,
	Six months			2010												2006**
	ended			through												through
	April 30,			October 31,			Year ended December 31,									December 31,
	2011*			2010***			2009			2008			2007			2006
Net asset value at beginning of period	$	14.24		$	13.49		$	10.84		$	17.43		$	16.97		$	15.31
Net investment income (loss)		(0.00	) (a)		0.01	(a)		0.04	(a)		0.02	(a)		0.01			(0.01	)
Net realized and unrealized gain (loss) on investments		1.76			0.79			2.70			(6.58	)		1.45			1.67
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.05	)		(0.01	)		—			—			—
Total from investment operations		1.78			0.75			2.73			(6.56	)		1.46			1.66
Less dividends and distributions:
From net investment income		(0.01	)		—			(0.08	)		(0.03	)		(0.01	)		—
From net realized gain on investments		—			—			—			(0.00	)‡		(1.05	)		—
Total dividends and distributions		(0.01	)		—			(0.08	)		(0.03	)		(1.06	)		—
Redemption fee (b)		—			—			—			—			0.06			—
Net asset value at end of period	$	16.01		$	14.24		$	13.49		$	10.84		$	17.43		$	16.97
Total investment return (c)		12.58	% (d)		5.56	%(d)		25.17	%		(37.63	%)		8.90	%		10.84	% (d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.05	%)††		0.11	%††		0.30	%		0.21	%		0.01	%		(0.21	%)††
Net expenses		1.54	% ††		1.54	%††		1.55	%		1.54	%		1.54	%		1.54	% ††
Expenses (before waiver/reimbursement)		1.66	% ††		1.88	%††		1.78	%		1.75	%		1.95	%		1.97	% ††
Portfolio turnover rate		67	%		151	%		74	%		47	%		43	%		64	%
Net assets at end of period (in 000’s)	$	1,752		$	1,855		$	2,973		$	339		$	120		$	142

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(d)	Total investment return is not annualized.

18    MainStay Epoch Global Choice Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class C
				January 1,			November 16,
	Six months			2010			2009**
	ended			through			through
	April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	14.12		$	13.49		$	13.36
Net investment income (loss) (a)		(0.07	)		(0.10	)		(0.01	)
Net realized and unrealized gain (loss) on investments		1.76			0.78			0.17
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.05	)		(0.00	)‡
Total from investment operations		1.71			0.63			0.16
Less dividends:
From net investment income		—			—			(0.03	)
Net asset value at end of period	$	15.83		$	14.12		$	13.49
Total investment return (b)		12.11	% (c)		4.67	% (c)		1.23	% (c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.93	%)††		(0.92	%)††		(0.78	%)††
Net expenses		2.47	% ††		2.51	% ††		2.28	% ††
Expenses (before waiver/reimbursement)		2.59	% ††		2.85	% ††		2.47	% ††
Portfolio turnover rate		67	%		151	%		74	%
Net assets at end of period (in 000’s)	$	53		$	38		$	28

*	Unaudited.
***	The Fund changed its fiscal year end from December 31 to October 31.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Financial Highlights selected per share data and ratios

	Class I
				January 1,															July 25,
	Six months			2010															2005**
	ended			through															through
	April 30,			October 31,			Year ended December 31,												December 31,
	2011*			2010***			2009			2008			2007			2006			2005
Net asset value at beginning of period	$	14.59		$	13.79		$	11.06		$	17.47		$	16.99		$	14.91		$	15.00
Net investment income (loss)		0.02	(a)		0.04	(a)		0.07	(a)		0.05	(a)		0.04			0.01			(0.00	)‡
Net realized and unrealized gain (loss) on investments		1.81			0.81			2.76			(6.41	)		1.54			2.07			(0.09	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.05	)		(0.01	)		—			—			—			—
Total from investment operations		1.85			0.80			2.82			(6.36	)		1.58			2.08			(0.09	)
Less dividends and distributions:
From net investment income		(0.05	)		—			(0.09	)		(0.05	)		(0.05	)		(0.00	)‡		—
From net realized gain on investments		—			—			—			(0.00	)‡		(1.05	)		—			—
Total dividends and distributions		(0.05	)		—			(0.09	)		(0.05	)		(1.10	)		(0.00	)‡		—
Redemption fee (b)		—			0.00	‡		—			0.00	‡		—			—			—
Net asset value at end of period	$	16.39		$	14.59		$	13.79		$	11.06		$	17.47		$	16.99		$	14.91
Total investment return (c)		12.73	%(d)		5.80	%(d)		25.53	%		(36.37	%)		9.27	%		13.96	%		0.60	% (d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.21	%††		0.35	%††		0.62	%		0.42	%		0.26	%		0.05	%		(0.07	%)††
Net expenses		1.29	%††		1.29	%††		1.29	%		1.29	%		1.29	%		1.29	%		1.29	% ††
Expenses (before reimbursement/waiver)		1.41	%††		1.63	%††		1.54	%		1.50	%		1.70	%		1.72	%		2.55	% ††
Portfolio turnover rate		67	%		151	%		74	%		47	%		43	%		64	%		17	%
Net assets at end of period (in 000’s)	$	55,010		$	54,695		$	38,976		$	56,715		$	34,911		$	27,108		$	14,088

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(d)	Total investment return is not annualized.

20    MainStay Epoch Global Choice Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Epoch Global Choice Fund (the “Fund”), a diversified fund. The Fund is the successor to the Epoch U.S. All Cap Equity Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Epoch Investment Partners, Inc. served as investment advisor.

The Fund currently offers four classes of shares. Investor Class and Class C shares commenced operations on November 16, 2009. Class I shares and Class A shares commenced operations (under former designations) on July 25, 2005 and August 15, 2006, respectively. Effective January 4, 2010, the Fund changed its fiscal year end from December 31 to October 31. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The four classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek long-term capital appreciation.

The financial statements of the Fund reflect the historical results of the Institutional Class and Class P shares of the Predecessor Fund prior to its reorganization. Upon the completion of the reorganization, the Class I and Class A shares of the Fund assumed the performance, financial and other information of the Institutional Class and Class P shares of the Predecessor Fund, respectively. All information and references to periods prior to the commencement of operations of the Fund refer to the Predecessor Fund.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had

mainstayinvestments.com    21

Notes to Financial Statements (unaudited) (continued)

an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

Certain events may occur between the time that foreign markets close, on which securities held by the Fund principally trade, and the time at which the Fund’s NAV is calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisor conclude that such events may have affected the accuracy of the last price reported on the local foreign market, the Manager or Subadvisor may, pursuant to procedures adopted by the Fund’s Board, adjust the value of the local price to reflect the impact on the price of such securities as a result of such events. In this instance, securities are generally categorized as Level 3 in the hierarchy. Additionally, foreign equity securities are also fair valued whenever the movement of a particular index exceeds certain thresholds. In such cases, the securities are fair valued by applying factors provided by a third party vendor in accordance with the Fund’s policies and procedures and are generally categorized as Level 2 in the hierarchy. At April 30, 2011, foreign equity securities held by the Fund were not fair valued.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required. Investment income received by the Fund from foreign sources may be subject to foreign income taxes. These foreign income taxes are generally withheld at the source.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the

22    MainStay Epoch Global Choice Fund

expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Foreign Currency Transactions. The books and records of the Fund are kept in U.S. dollars. Prices of securities denominated in foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling exchange rates last quoted by any major U.S. bank at the following dates:

(i) market value of investment securities, other assets and liabilities—at the valuation date, and

(ii) purchases and sales of investment securities, income and expenses—at the date of such transactions.

The assets and liabilities that are denominated in foreign currency amounts are presented at the exchange rates and market values at the close of the period. The realized and unrealized changes in net assets arising from fluctuations in exchange rates and market prices of securities are not separately presented.

Net realized gain (loss) on foreign currency transactions represents net gains and losses on foreign currency forward contracts, net currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the Fund’s books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or losses from valuing such foreign currency denominated assets and liabilities, other than investments at valuation date exchange rates, are reflected in unrealized foreign exchange gains or losses.

(I) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(J) Redemption Fee. Prior to April 1, 2010, the Fund imposed a 2.00% redemption fee on redemptions (including exchanges) of Fund shares made within 60 days of their date of purchase for any class. The redemption fee was designed to offset brokerage commissions and other costs associated with short-term trading and was not assessed on shares acquired through the reinvestment of dividends or distributions paid by the Fund. The redemption fees are included in the Statement of Changes in Net Assets’ shares redeemed amount and were retained by the Fund for the fiscal year ended October 31, 2010.

(K) Concentration of Risk. The Fund may invest in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic instruments. These risks include those resulting from currency fluctuations, future adverse political and economic developments and possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. These risks are likely to be greater in emerging markets than in developed markets.

(L) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that

mainstayinvestments.com    23

Notes to Financial Statements (unaudited) (continued)

material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. Epoch Investment Partners, Inc. (“Epoch” or “Subadvisor”), a registered investment adviser, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of 1.00% of the Fund’s average daily net assets. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 1.00% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive a portion of the management fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets: Class A, 1.54% and Class I, 1.29%. New York Life Investments will apply an equivalent waiver or reimbursement, in an amount equal to the number of basis points waived for Class A shares, to Investor Class and Class C shares of the Fund. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $280,870 and waived/reimbursed its fees in the amount of $33,457.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from applicable Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class C Plans, applicable Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $435 and $1,490, respectively, for the six-month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Class C shares of $17 for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	158
Class A		207
Class C		44
Class I		6,493

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Investor Class	$	30,047	13.7	%
Class C		29,700	56.0

24    MainStay Epoch Global Choice Fund

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $749. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Income Tax

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $13,372,364 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2016	$	1,567
	2017		6,772
	2018		5,033
	Total	$	13,372

The tax character of distributions paid during the ten-month period ended October 31, 2010, and fiscal year ended December 31, 2009, shown in the Statements of Changes in Net Assets as follows:

	2010		2009
Distributions paid from:
Ordinary Income	$	—	$	393,555
Long-Term Capital Gains		—		—
Total	$	—	$	393,555

Note 5–Foreign Currency Transactions

As of April 30, 2011, the Fund held the following foreign currencies:

	Currency		Cost		Value
Brazilian Real	BRL	168,697	USD	101,337	USD	107,232
Canadian Dollar	CAD	47,923		50,035		50,651
Euro	EUR	127,570		186,414		188,951
Japanese Yen	YEN	1,205,280		14,631		14,859
New Taiwan Dollar	TWD	14,741,019		498,529		514,727
Pound Sterling	GBP	96,412		157,520		161,041
South Korean Won	KRW	10,489,518		8,807		9,788
Swiss Franc	CHF	84,448		87,602		97,628
Total			USD	1,104,875	USD	1,144,877

Note 6–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 7–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 8–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $36,261 and $44,225, respectively.

Note 9–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		5,778		$	85,680
Shares redeemed		(408	)		(5,878	)
Net increase (decrease)		5,370		$	79,802
Ten-month period ended October 31, 2010:
Shares sold		6,305		$	85,170
Shares redeemed		(30	)		(401	)
Net increase (decrease)		6,275		$	84,769
Period ended December 31, 2009 (a):
Shares sold		2,056		$	27,501
Shares issued to shareholders in reinvestment of dividends and distributions		6			88
Net increase (decrease)		2,062		$	27,589

mainstayinvestments.com    25

Notes to Financial Statements (unaudited) (continued)

Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		25,256		$	374,706
Shares issued to shareholders in reinvestment of dividends		84			1,225
Shares redeemed		(46,199	)		(679,171	)
Net increase (decrease)		(20,859	)	$	(303,240	)
Ten-month period ended October 31, 2010:
Shares sold		28,573		$	389,854
Shares redeemed		(118,700	)		(1,577,933	)
Net increase (decrease)		(90,127	)	$	(1,188,079	)
Year ended December 31, 2009:
Shares sold		232,099		$	2,718,761
Shares issued to shareholders in reinvestment of dividends and distributions		1,055			14,207
Shares redeemed		(44,035	)		(489,842	)
Net increase (decrease)		189,119		$	2,243,126
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,062		$	15,667
Shares redeemed		(430	)		(6,258	)
Net increase (decrease)		632		$	9,409
Ten-month period ended October 31, 2010:
Shares sold		1,063		$	14,340
Shares redeemed		(407	)		(5,555	)
Net increase (decrease)		656		$	8,785
Period ended October 31, 2009 (a):
Shares sold		2,060		$	27,500
Shares issued to shareholders in reinvestment of dividends and distributions		5			71
Net increase (decrease)		2,065		$	27,571
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		840,608		$	12,678,526
Shares issued to shareholders in reinvestment of dividends		12,661			188,024
Shares redeemed		(1,245,529	)		(18,825,597	)
Net increase (decrease)		(392,260	)	$	(5,959,047	)
Ten-month period ended October 31, 2010:
Shares sold		2,328,069		$	32,096,487
Shares redeemed		(1,404,901	)		(19,135,144	)
Net increase (decrease)		923,168		$	12,961,343
Year ended December 31, 2009:
Shares sold		3,257,545		$	39,836,207
Shares issued to shareholders in reinvestment of dividends and distributions		24,319			335,548
Shares redeemed		(5,582,489	)		(72,779,504	)
Net increase (decrease)		(2,300,625	)	$	(32,607,749	)

(a) Investor Class shares and Class C shares were first offered on November 16, 2009.

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

26    MainStay Epoch Global Choice Fund

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Epoch Global Choice Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and Epoch Investment Partners, Inc. (“Epoch”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and Epoch as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and Epoch in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and Epoch at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and Epoch on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates and Epoch as subadvisor to the Fund, and responses from New York Life Investments and Epoch to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the investment performance of the Fund, New York Life Investments and Epoch; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates and by Epoch as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and Epoch

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing Epoch’s compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same

mainstayinvestments.com    27

Board Consideration and Approval of Management Agreement and Subadvisory Agreement(Unaudited) (continued)

class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

The Board also examined the nature, extent and quality of the services that Epoch provides to the Fund. The Board evaluated Epoch’s experience in serving as subadvisor to the Fund and managing other portfolios. It examined Epoch’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at Epoch, and Epoch’s overall legal and compliance environment. The Board also reviewed Epoch’s willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and Epoch’s experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and Epoch to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and Epoch

The Board considered the costs of the services provided by New York Life Investments and Epoch under the Agreements, and the profits realized by New York Life Investments, its affiliates and Epoch due to their relationships with the Fund.

In evaluating any costs and profits of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and Epoch must be in a position to pay and retain experienced professional personnel to provide services to the Fund and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board considered representations from Epoch and New York Life Investments that the subadvisory fee paid by New York Life Investments to Epoch for services provided to the Fund was the result of arm’s-length negotiations. Because Epoch is not affiliated with New York Life Investments, and Epoch’s fees are paid directly by New York Life Investments, the Board focused primarily on the profitability of the relationship between New York Life Investments and its affiliates and the Fund.

The Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board recognized, for example, the benefits to Epoch from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to Epoch in exchange for commissions paid by the Fund with respect to trades on the Fund’s portfolio securities. The Board requested and received information from Epoch

28    MainStay Epoch Global Choice Fund

and New York Life Investments concerning other business relationships between Epoch and its affiliates and New York Life Investments and its affiliates.

The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates and Epoch due to their relationships with the Fund supported the Board’s determination to approve the Agreements. With respect to Epoch, the Board concluded that any profits realized by Epoch due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and Epoch, and are based on subadvisory fees paid to Epoch by New York Life Investments, not the Fund.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to Epoch are paid by New York Life Investments, not the Fund. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and Epoch on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and Epoch about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the

mainstayinvestments.com    29

Board Consideration and Approval of Management Agreement and Subadvisory Agreement(Unaudited) (continued)

same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares and $500 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

30    MainStay Epoch Global Choice Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting records for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the Fund’s website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com    31

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MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23117 MS136-11 MSEGC10-06/11

F2

MainStay Epoch Global Equity Yield Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	15
Notes to Financial Statements	22
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	29
Proxy Voting Policies and Procedures and Proxy Voting Record	33
Shareholder Reports and Quarterly Portfolio Disclosure	33

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since
												Inception			Gross
												of Class			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(11/16/09)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		6	.81%		16	.66%		3	.91%		5	.38%		1	.31%
		Excluding sales charges		13	.03		23	.45		5	.09		6	.51		1	.31

											Since
											Inception			Gross
											of Class			Expense
Class	Sales Charge		Six Months			One Year			Five Years		(8/2/06)			Ratio2
Class A Shares4	Maximum 5.5% Initial Sales Charge	With sales charges		6	.87%		16	.68%		—		4	.05%		1	.39%
		Excluding sales charges		13	.09		23	.47		—		5	.30		1	.39

												Since
												Inception			Gross
												of Class			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(11/16/09)			Ratio2
Class C Shares3	Maximum 1% CDSC	With sales charges		11	.72%		21	.71%		4	.21%		5	.62%		2	.06%
	if Redeemed Within One Year of Purchase	Excluding sales charges		12	.72		22	.71		4	.21		5	.62		2	.06

											Since
											Inception			Gross
											of Class			Expense
Class	Sales Charge	Six Months			One Year			Five Years			(12/27/05)			Ratio2
Class I Shares4	No Sales Charge		13	.29%		23	.78%		5	.22%		6	.65%		1	.13%

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class and Class C shares, first offered on November 16, 2009, includes the historical performance of Class I shares through November 15, 2009, adjusted for differences in certain expenses

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

										Since
	Six			One			Five			Inception
Benchmark Performance	Months			Year			Years			of the Fund
MSCI World Index5		14	.75%		18	.25%		2	.32%		3	.88%
Average Lipper Global Multi-Cap Core Fund6		13	.86		18	.25		2	.10		3	.81

and fees. Unadjusted, the performance shown for Investor Class and Class C shares might have been lower.

4.	Performance figures for Class I shares and Class A shares reflect the historical performance of the Institutional shares since December 27, 2005 and the Class P shares since August 2, 2006, respectively, of the Epoch Global Equity Shareholder Yield Fund (the predecessor to the Fund), which was subject to a different fee structure, and for which Epoch Investment Partner, Inc. served as investment adviser, for periods prior to November 16, 2009.
5.	The Morgan Stanley Capital International (“MSCI”’) World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. Total returns assume reinvestment of all dividends and capital gains. The MSCI World Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.
6.	The average Lipper global multi-cap core fund is representative of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Global multi-cap core funds typically have an average price-to-cash flow ratio, price-to book ratio, and three-year sales-per-share growth value compared to the S&P/Citigroup BMI Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on total returns with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Epoch Global Equity Yield Fund

Cost in Dollars of a $1,000 Investment in MainStay Epoch Global Equity Yield Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,130.30	$	5.92	$	1,019.20	$	5.61
Class A Shares	$	1,000.00	$	1,130.90	$	6.34	$	1,018.80	$	6.01
Class C Shares	$	1,000.00	$	1,127.20	$	9.81	$	1,015.60	$	9.30
Class I Shares	$	1,000.00	$	1,132.90	$	5.08	$	1,020.00	$	4.81

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.12% for Investor Class, 1.20% for Class A, 1.86% for Class C and 0.96% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Portfolio Composition as of April 30, 2011 (Unaudited)

Common Stocks	96.9
Short-Term Investment	4.0
Preferred Stock	0.7
Other Assets, Less Liabilities	(1.6	)

See Portfolio of Investments beginning on page 11 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	National Grid PLC
2.	BCE, Inc.
3.	Philip Morris International, Inc.
4.	Swisscom A.G.
5.	Imperial Tobacco Group PLC
6.	BASF S.E.
7.	Vivendi S.A.
8.	Pearson PLC
9.	Total S.A.
10.	Vodafone Group PLC

8    MainStay Epoch Global Equity Yield Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Eric Sappenfield, Michael Welhoelter, CFA, and William Priest, CFA, of Epoch Investment Partners, Inc., the Fund’s Subadvisor.

How did MainStay Epoch Global Equity Yield Fund perform relative to its peers and its benchmark for the six months ended April 30, 2011?

Excluding all sales charges, MainStay Epoch Global Equity Yield Fund returned 13.03% for Investor Class shares, 13.09% for Class A shares and 12.72% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 13.29%. All share classes underperformed the 13.86% return of the average Lipper¹ global multi-cap core fund and the 14.75% return of the MSCI World Index² for the six months ended April 30, 2011. The MSCI World Index is the Fund’s broad-based securities market index. See page 5 for performance with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund produced strong absolute returns, but lagged the MSCI World Index during the reporting period. The very low interest-rate environment encouraged and supported speculation. In the equity market, this translated into stronger performance among securities with higher risk. Lower-quality stocks performed much better than stocks of large, well-capitalized companies. Equity markets rose in response to the supportive monetary-policy environment expressed through the Federal Reserve’s second round of quantitative easing. (Quantitative easing is the direct purchase of securities by the Federal Reserve.) Improving employment data in the United States, better-than-expected corporate earnings reports and a modest pickup in merger and acquisition activity also helped the market. Investors generally ignored the challenges of higher oil prices stemming from unrest in the Middle East, the negative market consequences following the earthquake in Japan and the renewal of widening spreads³ for European sovereign debt.

The Fund was underweight relative to the MSCI World Index in energy stocks. This detracted from the Fund’s relative performance because the sector did well as the price of oil rose following the political unrest in the Middle East. The Fund’s overweight position in telecommunication services relative to the benchmark detracted from relative performance as the sector lagged other less defensive areas. Being underweight in industrial stocks relative to the MSCI World Index also negatively affected the Fund’s relative results as the sector outperformed the overall market.

On the other hand, the Fund enjoyed generally strong stock selection. Holdings in the information technology sector were a standout. An underweight position in financials relative to the benchmark helped relative performance, as that sector lagged the MSCI World Index. An overweight position in consumer discretionary stocks, which performed well, helped the Fund’s relative performance.

During the reporting period, which sectors were the strongest contributors to the Fund’s relative performance and which sectors were particularly weak?

During the reporting period, the sectors that provided the strongest positive contributions to the Fund’s performance relative to the MSCI World Index were information technology, financials and consumer discretionary. (Contributions take weightings and total returns into account.)

In information technology, the Fund enjoyed strong stock performance from companies with exposure to fast growing Android-based cell phone and tablet equipment sales. The Fund’s underweight position in financials helped relative performance as the sector lagged, especially in Europe because of sovereign debt concerns and fears of rising interest rates. Stock selection in the financials sector was beneficial, as we focused on higher-quality stocks in the insurance industry group. The Fund also benefited from its overweight position in the consumer discretionary sector.

During the reporting period, the weakest contributions to the Fund’s relative performance came from industrials, telecommunication services and energy. Industrials performed well, but the Fund was underweight the sector. The Fund’s telecommunication services stocks lagged as sectors considered to be more cyclical outperformed the MSCI World Index. The Fund maintained an underweight position in energy, which detracted from relative performance when the sector outpaced the market as the price of oil rose.

During the reporting period, which individual stocks made the strongest contributions to the Fund’s absolute performance and which stocks detracted the most?

On an absolute basis, Taiwanese information technology company HTC, U.S.-based global direct seller of food-storage equipment Tupperware Brands and leading chemical company BASF SE made the largest contributions to the Fund’s performance.

In our view, HTC’s new product introductions and continued growth in the global smart phone and tablet markets continued to benefit the company’s stock. We believed Tupperware Brands continued to benefit from the company’s emerging-market exposure, which drove strong earnings growth and increased shareholder returns. BASF benefited from a combination of better-than-expected performance in its commodity businesses, such as oil and gas, as global supply-and-demand conditions remained tight and usage of BASF’s production capacity remained high. In our view, BASF was also rewarded for its

 1. See footnote on page 6 for more information on Lipper Inc.
2. See footnote on page 6 for more information on the MSCI World Index.
3. The term “spread” may refer to the difference in yield between a security or type of security and comparable U.S. treasury issues. The term may also refer to the difference in yield between two specific securities or types of securities at a given time.

mainstayinvestments.com    9

recent shift toward higher value-added products and products such as fertilizers and fine chemicals that have more stable demand.

The greatest detractors from the Fund’s absolute performance were U.K. and U.S. transportation company FirstGroup PLC, Chinese telecommunication leader China Mobile and U.S. utility holding company WGL Holdings.

FirstGroup experienced weakness in the U.S. school transit market because of budget cuts and poor weather, offsetting gains in the company’s U.K. rail operations. While the company’s outlook remains challenging, management reiterated 2011 guidance and their intent to recommend a 7% dividend increase at their 2011 annual general meeting. In our view, China Mobile lagged because investors became concerned that tightening measures taken to address underlying inflationary pressures in China might affect consumer spending and slow cell-phone sales growth. Shares of WGL Holdings were weak on growing concerns about higher costs and lower margins. The company’s management also provided a cautious outlook, and we exited the position during the reporting period.

Did the Fund make any significant purchases or sales during the reporting period?

Among the stocks that the Fund purchased during the reporting period were U.S. movie theater operator Regal Entertainment, energy infrastructure company Williams Partners and global media and entertainment company Time Warner.

In our view, Regal Entertainment was well-positioned to continue to benefit from the growth in 3-D movies. The company returns cash to shareholders through an attractive dividend. We believe that Williams Partners has a strong balance sheet and high cash distributions. We also believed that Time Warner had a good mix of businesses with high recurring revenue and low requirements for new capital investment. We believe that an increased focus on return on invested capital by the company’s new management team has improved Time Warner’s operating and financial performance.

During the reporting period, we sold the Fund’s positions in U.S. energy and shipping company Nicor, Germany-based utility E.ON A.G. and Taiwan-based computer assembler Quanta Computer. We exited Nicor when it was announced the company was being acquired by AGL Resources. We sold E.ON A.G. after efforts to negotiate a balance between tax increases and nuclear-plant life extensions became bogged down. This led us to question the sustainability of the company’s dividend in the next few years. Declining personal computer sales led to poor interim results at Quanta Computer, and we exited the position.

How did the Fund’s sector weightings change during the reporting period?

Two sector weightings increased during the reporting period. Consumer discretionary stocks were added to the Fund, and the sector moved from an underweight to a slight overweight position relative to the MSCI World Index. We also added to energy holdings, but the Fund remained underweight relative to the benchmark in the sector.

During the reporting period, we reduced the Fund’s exposure to utilities, although the Fund remains significantly overweight relative to the MSCI World Index. We reduced the Fund’s position in industrials to become even more underweight relative to the benchmark. The Fund’s financials exposure was also reduced, and the sector continues to be the Fund’s most underweight sector relative to the MSCI World Index.

How was the Fund positioned at the end of April 2011?

As of April 30, 2011, the Fund’s most substantially overweight sector positions relative to the MSCI World Index were in con-
sumer staples, telecommunication services and utilities. As of the same date, the Fund’s most substantially underweight sector positions relative to the MSCI World Index were in financials, infor-
mation technology and materials. The Fund continues to focus on companies with strong balance sheets and growing free cash flow that deliver returns to shareholders through significant cash dividends, share repurchases and debt pay-downs.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay Epoch Global Equity Yield Fund

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares		Value
Common Stocks 96.9%†
Australia 1.5%
BHP Billiton, Ltd., Sponsored ADR (Metals & Mining) (a)		31,000	$	3,138,440
JB Hi-Fi, Ltd. (Specialty Retail)		146,200		3,030,322
Westpac Banking Corp. (Commercial Banks)		131,002		3,566,806
				9,735,568
Belgium 2.3%
InBev N.V. (Beverages)		147,000		9,373,236
Mobistar S.A. (Wireless Telecommunication Services)		67,700		5,022,718
				14,395,954
Brazil 0.9%
CPFL Energia S.A. (Electric Utilities)		210,300		6,084,958
Canada 3.5%
X  BCE, Inc. (Diversified Telecommunication Services)		335,600		12,577,684
Rogers Communications, Inc. Class B (Wireless Telecommunication Services)		138,150		5,228,718
Shaw Communications, Inc. (Media)		209,900		4,432,492
				22,238,894
Finland 0.5%
Fortum Oyj (Electric Utilities)		91,300		3,145,427
France 8.1%
Air Liquide S.A. (Chemicals)		25,533		3,777,283
France Telecom S.A. (Diversified Telecommunication Services)		401,300		9,412,095
SCOR SE (Insurance)		210,300		6,424,396
X  Total S.A. (Oil, Gas & Consumable Fuels)		174,600		11,177,073
Vinci S.A. (Construction & Engineering)		137,000		9,151,582
X  Vivendi S.A. (Media)		357,600		11,220,832
				51,163,261
Germany 3.8%
X  BASF S.E. (Chemicals)		110,500		11,358,496
Daimler A.G. (Automobiles)		83,300		6,439,192
Muenchener Rueckversicherungs-Gesellschaft A.G. Registered (Insurance)		37,270		6,152,315
				23,950,003
Hong Kong 0.5%
China Mobile, Ltd., Sponsored ADR (Wireless Telecommunication Services) (a)		68,100		3,138,729
Italy 1.3%
Terna S.p.A. (Electric Utilities)		1,598,700		8,003,552
Norway 1.0%
Orkla ASA (Industrial Conglomerates)		355,200		3,598,308
StatoilHydro ASA, Sponsored ADR (Oil, Gas & Consumable Fuels) (a)		104,800		3,071,688
				6,669,996
Philippines 0.6%
Philippine Long Distance Telephone Co., Sponsored ADR (Wireless Telecommunication Services) (a)		68,531		3,974,113
Spain 1.6%
Telefonica S.A. (Diversified Telecommunication Services)		371,600		9,989,676
Sweden 0.5%
Assa Abloy AB (Building Products)		106,900		3,209,238
Switzerland 5.1%
Nestle S.A. Registered (Food Products)		168,200		10,442,012
Novartis A.G. (Pharmaceuticals)		78,900		4,683,832
Roche Holding A.G., Genusscheine (Pharmaceuticals)		28,400		4,606,382
X  Swisscom A.G. (Diversified Telecommunication Services)		26,800		12,297,017
				32,029,243
Taiwan 1.6%
HTC Corp. (Communications Equipment)		105,600		4,793,547
Taiwan Semiconductor Manufacturing Co., Ltd., Sponsored ADR (Semiconductors & Semiconductor Equipment) (a)		397,300		5,363,550
				10,157,097
United Kingdom 20.4%
AstraZeneca PLC, Sponsored ADR (Pharmaceuticals) (a)		173,800		8,660,454
BAE Systems PLC (Aerospace & Defense)		1,277,300		6,995,870
British American Tobacco PLC (Tobacco)		108,700		4,740,715
Compass Group PLC (Hotels, Restaurants & Leisure)		440,200		4,297,758
Diageo PLC, Sponsored ADR (Beverages) (a)		113,300		9,219,221
FirstGroup PLC (Road & Rail)		1,410,600		7,650,566
X  Imperial Tobacco Group PLC (Tobacco)		323,200		11,374,788
Meggitt PLC (Aerospace & Defense)		722,500		4,332,512

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. Any of the ten largest holdings may be a security traded on more than one exchange. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
United Kingdom (continued)
X  National Grid PLC (Multi-Utilities)		1,231,310	$	12,628,251
Next PLC (Multiline Retail)		119,000		4,446,521
X  Pearson PLC (Media)		581,800		11,185,527
Reckitt Benckiser Group PLC (Household Products)		83,700		4,647,227
Royal Dutch Shell PLC Class A, ADR (Oil, Gas & Consumable Fuels) (a)		130,200		10,087,896
Scottish & Southern Energy PLC (Electric Utilities)		293,100		6,648,490
Unilever PLC (Food Products)		97,600		3,165,968
United Utilities Group PLC (Multi-Utilities)		402,959		4,250,516
X  Vodafone Group PLC (Wireless Telecommunication Services)		3,745,200		10,734,943
WM Morrison Supermarkets PLC (Food & Staples Retailing)		763,750		3,760,851
				128,828,074
United States 43.7%
Abbott Laboratories (Pharmaceuticals)		66,500		3,460,660
Altria Group, Inc. (Tobacco)		327,200		8,782,048
Arthur J. Gallagher & Co. (Insurance)		195,000		5,807,100
AT&T, Inc. (Diversified Telecommunication Services)		227,455		7,078,400
Automatic Data Processing, Inc. (IT Services)		68,500		3,722,975
Bemis Co., Inc. (Containers & Packaging)		88,100		2,761,054
Bristol-Myers Squibb Co. (Pharmaceuticals)		245,100		6,887,310
CenturyLink, Inc. (Diversified Telecommunication Services)		248,300		10,125,674
Chevron Corp. (Oil, Gas & Consumable Fuels)		44,900		4,913,856
CMS Energy Corp. (Multi-Utilities)		217,500		4,306,500
Coca-Cola Co. (The) (Beverages)		49,700		3,352,762
Coca-Cola Enterprises, Inc. (Beverages)		121,300		3,446,133
Comcast Corp. Class A (Media)		211,900		5,202,145
ConocoPhillips (Oil, Gas & Consumable Fuels)		43,700		3,449,241
Diamond Offshore Drilling, Inc. (Energy Equipment & Services)		75,300		5,713,011
Diebold, Inc. (Computers & Peripherals)		84,100		2,842,580
Duke Energy Corp. (Electric Utilities)		162,950		3,039,017
E.I. du Pont de Nemours & Co. (Chemicals)		114,900		6,525,171
Emerson Electric Co. (Electrical Equipment)		51,700		3,141,292
Enterprise Products Partners, L.P. (Oil, Gas & Consumable Fuels)		102,100		4,417,867
ExxonMobil Corp. (Oil, Gas & Consumable Fuels)		35,600		3,132,800
Genuine Parts Co. (Distributors)		65,700		3,528,090
H.J. Heinz Co. (Food Products)		61,700		3,160,891
Honeywell International, Inc. (Aerospace & Defense)		96,100		5,884,203
Integrys Energy Group, Inc. (Multi-Utilities)		54,689		2,863,516
Johnson & Johnson (Pharmaceuticals)		72,500		4,764,700
Kellogg Co. (Food Products)		69,300		3,968,811
Kimberly-Clark Corp. (Household Products)		100,100		6,612,606
Kinder Morgan Energy Partners, L.P. (Oil, Gas & Consumable Fuels)		84,900		6,564,468
Lorillard, Inc. (Tobacco)		89,700		9,553,050
McDonald’s Corp. (Hotels, Restaurants & Leisure)		40,400		3,163,724
Merck & Co., Inc. (Pharmaceuticals)		120,900		4,346,355
Microchip Technology, Inc. (Semiconductors & Semiconductor Equipment)		160,600		6,591,024
Microsoft Corp. (Software)		256,300		6,668,926
NiSource, Inc. (Multi-Utilities)		445,700		8,668,865
Oracle Corp. (Software)		203,800		7,346,990
PepsiCo., Inc. (Beverages)		44,900		3,093,161
X  Philip Morris International, Inc. (Tobacco)		179,000		12,429,760
Pitney Bowes, Inc. (Commercial Services & Supplies)		255,900		6,284,904
Progress Energy, Inc. (Electric Utilities)		128,600		6,102,070
Regal Entertainment Group Class A (Media)		444,900		6,130,722
Reynolds American, Inc. (Tobacco)		124,900		4,635,039
SCANA Corp. (Multi-Utilities)		72,500		3,010,200
Southern Co. (Electric Utilities)		143,400		5,598,336
Spectra Energy Corp. (Oil, Gas & Consumable Fuels)		117,700		3,418,008
TECO Energy, Inc. (Multi-Utilities)		299,600		5,773,292
Time Warner, Inc. (Media)		123,300		4,668,138
Travelers Cos., Inc. (The) (Insurance)		55,700		3,524,696
Tupperware Brands Corp. (Household Durables)		80,100		5,099,967
Vectren Corp. (Multi-Utilities)		154,200		4,407,036
Verizon Communications, Inc. (Diversified Telecommunication Services)		207,400		7,835,572
Waste Management, Inc. (Commercial Services & Supplies)		79,300		3,129,178
Williams Partners, L.P. (Oil, Gas & Consumable Fuels)		90,900		5,072,220
				276,006,114
Total Common Stocks (Cost $514,451,894)				612,719,897
Preferred Stock 0.7%
United States 0.7%
MetLife, Inc. 6.50% (Insurance)		167,000		4,266,850
Total Preferred Stock (Cost $3,971,018)				4,266,850

12    MainStay Epoch Global Equity Yield Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount			Value
Short-Term Investment 4.0%
Repurchase Agreement 4.0% United States 4.0%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $25,336,702 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $25,845,000 and a Market Value of $25,844,860) (Capital Markets)	$	25,336,681		$	25,336,681
Total Short-Term Investment (Cost $25,336,681)					25,336,681
Total Investments (Cost $543,759,593) (b)		101.6	%		642,323,428
Other Assets, Less Liabilities		(1.6	)		(10,263,848	)
Net Assets		100.0	%	$	632,059,580

(a)	ADR—American Depositary Receipt.
(b)	At April 30, 2011, cost is $544,054,556 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	101,454,752
Gross unrealized depreciation		(3,185,880	)
Net unrealized appreciation	$	98,268,872

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	612,719,897	$	—	$	—	$	612,719,897
Preferred Stock		4,266,850		—		—		4,266,850
Short-Term Investment Repurchase Agreement		—		25,336,681		—		25,336,681
Total Investments in Securities	$	616,986,747	$	25,336,681	$	—	$	642,323,428

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

At October 31, 2010 and April 30, 2011 foreign equity securities were not fair valued, as a result there were no transfers between Level 1 and Level 2 for value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

The table below sets forth the diversification of MainStay Epoch Global Equity Yield Fund investments by industry.

Industry Diversification

	Value			Percent †
Aerospace & Defense	$	17,212,585			2.7	%
Automobiles		6,439,192			1.0
Beverages		28,484,513			4.5
Building Products		3,209,238			0.5
Capital Markets		25,336,681			4.0
Chemicals		21,660,950			3.4
Commercial Banks		3,566,806			0.6
Commercial Services & Supplies		9,414,082			1.5
Communications Equipment		4,793,547			0.8
Computers & Peripherals		2,842,580			0.4
Construction & Engineering		9,151,582			1.4
Containers & Packaging		2,761,054			0.4
Distributors		3,528,090			0.6
Diversified Telecommunication Services		69,316,118			11.0
Electric Utilities		38,621,850			6.1
Electrical Equipment		3,141,292			0.5
Energy Equipment & Services		5,713,011			0.9
Food & Staples Retailing		3,760,851			0.6
Food Products		20,737,682			3.3
Hotels, Restaurants & Leisure		7,461,482			1.2
Household Durables		5,099,967			0.8
Household Products		11,259,833			1.8
Industrial Conglomerates		3,598,308			0.6
Insurance		26,175,357			4.1
IT Services		3,722,975			0.6
Media		42,839,856			6.8
Metals & Mining		3,138,440			0.5
Multi-Utilities		45,908,176			7.3
Multiline Retail		4,446,521			0.7
Oil, Gas & Consumable Fuels		55,305,117			8.7
Pharmaceuticals		37,409,693			5.9
Road & Rail		7,650,566			1.2
Semiconductors & Semiconductor Equipment		11,954,574			1.9
Software		14,015,916			2.2
Specialty Retail		3,030,322			0.5
Tobacco		51,515,400			8.2
Wireless Telecommunication Services		28,099,221			4.4
		642,323,428			101.6
Other Assets, Less Liabilities		(10,263,848	)		(1.6	)
Net Assets	$	632,059,580			100.0	%

† Percentages indicated are based on Fund net assets.

14    MainStay Epoch Global Equity Yield Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $543,759,593)	$	642,323,428
Cash denominated in foreign currencies (identified cost $508,144)		510,722
Receivables:
Investment securities sold		6,179,197
Fund shares sold		3,661,373
Dividends		2,635,618
Other assets		38,726
Total assets		655,349,064
Liabilities
Payables:
Investment securities purchased		18,136,488
Fund shares redeemed		4,552,999
Manager (See Note 3)		348,627
Transfer agent (See Note 3)		140,881
Professional fees		44,501
NYLIFE Distributors (See Note 3)		42,799
Custodian		14,039
Shareholder communication		7,449
Trustees		804
Accrued expenses		897
Total liabilities		23,289,484
Net assets	$	632,059,580
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	38,377
Additional paid-in capital		655,296,846
		655,335,223
Undistributed net investment income		4,117,287
Accumulated net realized gain (loss) on investments and foreign currency transactions		(126,014,621	)
Net unrealized appreciation (depreciation) on investments		98,563,835
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies		57,856
Net assets	$	632,059,580
Investor Class
Net assets applicable to outstanding shares	$	868,309
Shares of beneficial interest outstanding		52,737
Net asset value per share outstanding	$	16.46
Maximum sales charge (5.50% of offering price)		0.96
Maximum offering price per share outstanding	$	17.42
Class A
Net assets applicable to outstanding shares	$	136,962,473
Shares of beneficial interest outstanding		8,305,856
Net asset value per share outstanding	$	16.49
Maximum sales charge (5.50% of offering price)		0.96
Maximum offering price per share outstanding	$	17.45
Class C
Net assets applicable to outstanding shares	$	21,301,635
Shares of beneficial interest outstanding		1,296,721
Net asset value and offering price per share outstanding	$	16.43
Class I
Net assets applicable to outstanding shares	$	472,927,163
Shares of beneficial interest outstanding		28,721,968
Net asset value and offering price per share outstanding	$	16.47

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	11,134,004
Total income		11,134,004
Expenses
Manager (See Note 3)		1,845,826
Transfer agent (See Note 3)		472,010
Distribution/Service—Investor Class (See Note 3)		595
Distribution/Service—Class A (See Note 3)		103,082
Distribution/Service—Class C (See Note 3)		67,552
Professional fees		53,251
Registration		45,682
Custodian		45,118
Shareholder communication		23,600
Trustees		6,999
Miscellaneous		28,186
Total expenses		2,691,901
Net investment income (loss)		8,442,103
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions		18,206,658
Foreign currency transactions		(13,636	)
Net realized gain (loss) on investments and foreign currency transactions		18,193,022
Net change in unrealized appreciation (depreciation) on:
Investments		44,678,396
Translation of other assets and liabilities in foreign currencies		35,453
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		44,713,849
Net realized and unrealized gain (loss) on investments and foreign currency transactions		62,906,871
Net increase (decrease) in net assets resulting from operations	$	71,348,974

(a)  Dividends recorded net of foreign withholding taxes in the amount of $533,787.

16    MainStay Epoch Global Equity Yield Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited), the period January 1, 2010 through October 31, 2010 (a) and the year ended December 31, 2009

	2011			2010			2009
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	8,442,103		$	11,574,322		$	13,501,084
Net realized gain (loss) on investments and foreign currency transactions		18,193,022			6,266,260			(55,755,456	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		44,713,849			24,011,180			122,178,121
Net increase (decrease) in net assets resulting from operations		71,348,974			41,851,762			79,923,749
Dividends to shareholders:
From net investment income:
Investor Class		(5,473	)		(3,160	)		(151	)
Class A		(945,636	)		(595,753	)		(665,965	)
Class C		(113,850	)		(65,459	)		(181	)
Class I		(4,750,657	)		(10,622,360	)		(10,698,508	)
Total dividends to shareholders		(5,815,616	)		(11,286,732	)		(11,364,805	)
Capital share transactions:
Net proceeds from sale of shares		230,690,248			124,739,455			184,852,742
Net asset value of shares issued to shareholders in reinvestment of dividends		4,686,372			9,885,810			10,140,348
Cost of shares redeemed		(107,936,163	)		(132,730,489	)(b)		(170,919,032	)(b)
Increase (decrease) in net assets derived from capital share transactions		127,440,457			1,894,776			24,074,058
Net increase (decrease) in net assets		192,973,815			32,459,806			92,633,002
Net Assets
Beginning of period		439,085,765			406,625,959			313,992,957
End of period	$	632,059,580		$	439,085,765		$	406,625,959
Undistributed net investment income at end of period	$	4,117,287		$	1,490,800		$	1,392,718

(a)	The Fund changed its fiscal year end from December 31 to October 31.
(b)	Cost of shares redeemed net of redemption fees of $11,487 and $136 for the ten-month period ended October 31, 2010 and the year ended December 31, 2009, respectively. (See Note 2(J))

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Investor Class
				January 1,			November 16,
	Six months			2010			2009**
	ended			through			through
	April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	14.72		$	13.72		$	13.46
Net investment income (loss)		0.24	(a)		0.38	(a)		0.05
Net realized and unrealized gain (loss) on investments		1.66			1.02			0.29
Net realized and unrealized gain (loss) on foreign currency transactions		0.00	‡		(0.01	)		—
Total from investment operations		1.90			1.39			0.34
Less dividends:
From net investment income		(0.16	)		(0.39	)		(0.08	)
Net asset value at end of period	$	16.46		$	14.72		$	13.72
Total investment return (b)		13.03	%(c)		10.44	%(c)		2.54	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.23	%††		3.36	%††		2.67	%††
Net expenses		1.12	%††		1.16	%††		1.09	%††
Expenses (before waiver/reimbursement)		1.12	%††		1.31	%††		1.09	%††
Portfolio turnover rate		19	%		41	%		59	%
Net assets at end of period (in 000’s)	$	868		$	230		$	26

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

18    MainStay Epoch Global Equity Yield Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
				January 1,												August 2,
	Six months			2010												2006**
	ended			through												through
	April 30,			October 31,			Year ended December 31,									December 31,
	2011*			2010***			2009			2008			2007			2006
Net asset value at beginning of period	$	14.73		$	13.72		$	11.52		$	17.72		$	17.94		$	16.00
Net investment income (loss)		0.24	(a)		0.36	(a)		0.44			0.59	(a)		0.69			0.19
Net realized and unrealized gain (loss) on investments		1.68			1.03			2.14			(6.18	)		0.79			1.99
Net realized and unrealized gain (loss) on foreign currency transactions		0.00	‡		(0.01	)		(0.03	)		—			—			—
Total from investment operations		1.92			1.38			2.55			(5.59	)		1.48			2.18
Less dividends and distributions:
From net investment income		(0.16	)		(0.37	)		(0.35	)		(0.48	)		(0.72	)		(0.21	)
From net realized gain on investments		—			—			—			(0.08	)		(0.99	)		(0.03	)
Return of capital		—			—			—			(0.05	)		—			—
Total dividends and distributions		(0.16	)		(0.37	)		(0.35	)		(0.61	)		(1.71	)		(0.24	)
Redemption fee (b)		—			—			0.00	‡		0.00	‡		0.01			—
Net asset value at end of period	$	16.49		$	14.73		$	13.72		$	11.52		$	17.72		$	17.94
Total investment return (c)		13.09	% (d)		10.40	% (d)		22.47	%		(32.19	%)		8.34	%		13.73	%(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.14	%††		3.22	%††		3.66	%		4.01	%		3.97	%		2.74	%††
Net expenses		1.20	%††		1.24	%††		1.21	%		1.18	%		1.16	%		1.30	%††
Expenses (before waiver/reimbursement)		1.20	%††		1.39	%††		1.21	%		1.18	%		1.16	%		1.30	%††
Portfolio turnover rate		19	%		41	%		59	%		72	%		47	%		32	%
Net assets at end of period (in 000’s)	$	136,962		$	33,559		$	23,336		$	16,480		$	19,390		$	1,593

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(d)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Financial Highlights selected per share data and ratios

	Class C
				January 1,			November 16,
	Six months			2010			2009**
	ended			through			through
	April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	14.68		$	13.72		$	13.46
Net investment income (loss)		0.18			0.27	(a)		0.03
Net realized and unrealized gain (loss) on investments		1.69			1.04			0.30
Net realized and unrealized gain (loss) on foreign currency transactions		0.00‡			(0.01	)		—
Total from investment operations		1.87			1.30			0.33
Less dividends:
From net investment income		(0.12	)		(0.34	)		(0.07	)
Net asset value at end of period	$	16.43		$	14.68		$	13.72
Total investment return (b)		12.72	%(c)		9.83	%(c)		2.45	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.41	%††		2.33	%††		1.80	%††
Net expenses		1.86	%††		1.91	%††		1.84	%††
Expenses (before waiver/reimbursement)		1.86	%††		2.06	%††		1.84	%††
Portfolio turnover rate		19	%		41	%		59	%
Net assets at end of period (in 000’s)	$	21,302		$	6,547		$	36

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

20    MainStay Epoch Global Equity Yield Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
				January 1,															December 27,
	Six months			2010															2005**
	ended			through															through
	April 30,			October 31,			Year ended December 31,												December 31,
	2011*			2010***			2009			2008			2007			2006			2005
Net asset value at beginning of period	$	14.70		$	13.70		$	11.53		$	17.75		$	18.02		$	14.92		$	15.00
Net investment income (loss)		0.24	(a)		0.41	(a)		0.44			0.66	(a)		0.77			0.63			(0.00	)‡
Net realized and unrealized gain (loss) on investments		1.70			1.00			2.13			(6.24	)		0.72			3.13			(0.08	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.00	‡		(0.01	)		(0.03	)		—			—			—			—
Total from investment operations		1.94			1.40			2.54			(5.58	)		1.49			3.76			(0.08	)
Less dividends and distributions:
From net investment income		(0.17	)		(0.40	)		(0.37	)		(0.51	)		(0.77	)		(0.63	)		—
From net realized gain on investments		—			—			—			(0.08	)		(0.99	)		(0.03	)		—
Return of capital		—			—			—			(0.05	)		—			—			—
Total dividends and distributions		(0.17	)		(0.40	)		(0.37	)		(0.64	)		(1.76	)		(0.66	)		—
Redemption fee (b)		—			—			0.00	‡		0.00	‡		0.00	‡		—			—
Net asset value at end of period	$	16.47		$	14.70		$	13.70		$	11.53		$	17.75		$	18.02		$	14.92
Total investment return (c)		13.29	%(d)		10.54	%(d)		22.49	%		(32.10	%)		8.28	%		25.71	%		(0.53	%)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.24	%††		3.61	%††		3.85	%		4.40	%		4.21	%		3.88	%		(1.10	%)††
Net expenses		0.96	%††		0.99	%††		0.96	%		0.93	%		0.91	%		1.05	%		1.10	% ††
Expenses (before reimbursement/waiver)		0.96	%††		1.13	%††		0.96	%		0.93	%		0.91	%		1.05	%		3.59	% ††
Portfolio turnover rate		19	%		41	%		59	%		72	%		47	%		32	%		0	%
Net assets at end of period (in 000’s)	$	472,927		$	398,750		$	383,228		$	297,513		$	535,229		$	272,016		$	71,432

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(d)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Epoch Global Equity Yield Fund (the “Fund”), a diversified fund. The Fund is the successor to the Epoch Global Equity Shareholder Yield Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Epoch Investment Partners, Inc. served as investment advisor.

The Fund currently offers four classes of shares. Investor Class and Class C shares commenced operations on November 16, 2009. Class I shares and Class A shares commenced operations (under former designations) on December 27, 2005 and August 2, 2006, respectively. Effective January 4, 2010, the Fund changed its fiscal year end from December 31 to October 31. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The four classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek to provide a high level of income. Capital appreciation is a secondary investment objective.

The financial statements of the Fund reflect the historical results of the Institutional Class and Class P shares of the Predecessor Fund prior to its reorganization. Upon the completion of the reorganization, the Class I and Class A shares of the Fund assumed the performance, financial and other information of the Institutional Class and Class P shares of the Predecessor Fund, respectively. All information and references to periods prior to the commencement of operations of the Fund refer to the Predecessor Fund.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had

22    MainStay Epoch Global Equity Yield Fund

an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

Certain events may occur between the time that foreign markets close, on which securities held by the Fund principally trade, and the time at which the Fund’s NAV is calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisor conclude that such events may have affected the accuracy of the last price reported on the local foreign market, the Manager or Subadvisor may, pursuant to procedures adopted by the Fund’s Board, adjust the value of the local price to reflect the impact on the price of such securities as a result of such events. In this instance, securities are generally categorized as Level 3 in the hierarchy. Additionally, foreign equity securities are also fair valued whenever the movement of a particular index exceeds certain thresholds. In such cases, the securities are fair valued by applying factors provided by a third party vendor in accordance with the Fund’s policies and procedures and are generally categorized as Level 2 in the hierarchy. At April 30, 2011, foreign equity securities held by the Fund were not fair valued.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Investment income received by the Fund from foreign sources may be subject to foreign income taxes. These foreign income taxes are generally withheld at the source.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income, if any, quarterly and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution

mainstayinvestments.com    23

Notes to Financial Statements (unaudited) (continued)

plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Foreign Currency Transactions. The books and records of the Fund are kept in U.S. dollars. Prices of securities denominated in foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling exchange rates last quoted by any major U.S. bank at the following dates:

(i) market value of investment securities, other assets and liabilities—at the valuation date, and

(ii) purchases and sales of investment securities, income and expenses—at the date of such transactions.

The assets and liabilities that are denominated in foreign currency amounts are presented at the exchange rates and market values at the close of the period. The realized and unrealized changes in net assets arising from fluctuations in exchange rates and market prices of securities are not separately presented.

Net realized gain (loss) on foreign currency transactions represents net gains and losses on foreign currency forward contracts, net currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the Fund’s books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or losses from valuing such foreign currency denominated assets and liabilities, other than investments at valuation date exchange rates, are reflected in unrealized foreign exchange gains or losses.

(I) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(J) Redemption Fee. Prior to April 1, 2010, the Fund imposed a 2.00% redemption fee on redemptions (including exchanges) of Fund shares made within 60 days of their date of purchase for any class. The redemption fee was designed to offset brokerage commissions and other costs associated with short-term trading and was not assessed on shares acquired through the reinvestment of dividends or distributions paid by the Fund. The redemption fees are included in the Statement of Changes in Net Assets’ shares redeemed amount and were retained by the Fund for the fiscal year ended October 31, 2010.

(K) Concentration of Risk. The Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic instruments. These risks include those resulting from currency fluctuations, future adverse political and economic developments and possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. These risks are likely to be greater in emerging markets than in developed markets. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific country, industry or region.

(L) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that

24    MainStay Epoch Global Equity Yield Fund

material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

(M) Large Transaction Risks. From time to time, the Fund may receive large purchase or redemption orders from affiliated or unaffiliated mutual funds or other investors. Such large transactions could have adverse effects on a Fund’s performance if the Fund were required to sell securities or invest cash at times when it otherwise would not do so. This activity could also accelerate the realization of capital gains and increase the Fund’s transaction costs. The Fund has adopted procedures designed to mitigate the negative impacts of such large transactions, but there can be no assurance that these procedures will be effective.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. Epoch Investment Partners, Inc. (”Epoch” or “Subadvisor”), a registered investment adviser, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of 0.70% of the Fund’s average daily net assets. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.70% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses for Class A shares and Class I shares do not exceed the following percentages of average daily net assets: Class A, 1.24% and Class I, 0.99%. New York Life Investments will apply an equivalent waiver or reimbursement, in an amount equal to the number of basis points waived for Class A shares, to Investor Class and Class C shares of the Fund. This expense limitation agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $1,845,826.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution and service plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class C Plan, Class C shares of the Fund pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $2,271 and $28,361, respectively, for the six-month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares of $3 and $2,514, respectively, for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	210
Class A		74,043
Class C		5,878
Class I		391,879

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These

mainstayinvestments.com    25

Notes to Financial Statements (unaudited) (continued)

fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Investor Class	$	32,004	3.7	%
Class C		31,715	0.1

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $7,297. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $142,412,602 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2016	$	68,186
	2017		74,227
	Total	$	142,413

The tax character of distributions paid during the ten-month period ended October 31, 2010, and fiscal year ended December 31, 2009, shown in the Statements of Changes in Net Assets, was as follows:

	2010		2009
Distributions paid from:
Ordinary Income	$	11,286,732	$	11,364,805

Note 5–Foreign Currency Transactions:

As of April 30, 2011, the Fund held the following foreign currencies:

	Currency				Cost			Value
Brazilian Real		BRL	206,180	USD		130,804	USD		131,058
Canadian Dollar		CAD	13,274			13,968			14,030
Euro Currency		EUR	33			48			49
Norwegian Krone		NOK	659,625			125,742			125,724
Swiss Franc		CHF	207,480			237,582			239,861
Total				USD		508,144	USD		510,722

Note 6–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 7–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 8–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $218,842 and $98,118, respectively.

26    MainStay Epoch Global Equity Yield Fund

Note 9–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		47,019		$	716,245
Shares issued to shareholders in reinvestment of dividends		357			5,454
Shares redeemed		(6,102	)		(92,380	)
Net increase (decrease) in shares outstanding before conversion		41,274			629,319
Shares converted into Investor Class (See Note 1)		311			4,792
Shares converted from Investor Class (See Note 1)		(4,477	)		(68,638	)
Net increase (decrease)		37,108		$	565,473
Ten-month period ended October 31, 2010:
Shares sold		16,671		$	229,496
Shares issued to shareholders in reinvestment of dividends		238			3,160
Shares redeemed		(2,217	)		(29,558	)
Net increase (decrease) in shares outstanding before conversion		14,692			203,098
Shares converted into Investor Class (See Note 1)		733			10,398
Shares converted from Investor Class (See Note 1)		(1,665	)		(23,456	)
Net increase (decrease)		13,760		$	190,040
Period ended December 31, 2009 (a):
Shares sold		1,858		$	25,000
Shares issued to shareholders in reinvestment of dividends and distributions		11			151
Net increase (decrease)		1,869		$	25,151
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		6,586,368		$	99,682,246
Shares issued to shareholders in reinvestment of dividends		44,941			693,164
Shares redeemed		(608,369	)		(9,592,882	)
Net increase (decrease) in shares outstanding before conversion		6,022,940			90,782,528
Shares converted into Class A (See Note 1)		4,474			68,638
Shares converted from Class A (See Note 1)		(310	)		(4,792	)
Net increase (decrease)		6,027,104		$	90,846,374
Ten-month period ended October 31, 2010:
Shares sold		1,222,520		$	16,982,139
Shares issued to shareholders in reinvestment of dividends		40,192			535,377
Shares redeemed		(685,609	)		(9,115,426	)
Net increase (decrease) in shares outstanding before conversion		577,103			8,402,090
Shares converted into Class A (See Note 1)		1,665			23,456
Shares converted from Class A (See Note 1)		(733	)		(10,398	)
Net increase (decrease)		578,035		$	8,415,148
Year ended December 31, 2009:
Shares sold		873,503		$	9,944,403
Shares issued to shareholders in reinvestment of dividends and distributions		50,639			619,790
Shares redeemed		(653,938	)		(8,219,128	)
Net increase (decrease)		270,204		$	2,345,065
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		886,659		$	13,363,477
Shares issued to shareholders in reinvestment of dividends		4,150			63,544
Shares redeemed		(39,945	)		(608,749	)
Net increase (decrease)		850,864		$	12,818,272
Ten-month period ended October 31, 2010:
Shares sold		453,369		$	6,239,385
Shares issued to shareholders in reinvestment of dividends		4,266			56,160
Shares redeemed		(14,387	)		(185,272	)
Net increase (decrease)		443,248		$	6,110,273
Period ended October 31, 2009 (a):
Shares sold		2,596		$	35,007
Shares issued to shareholders in reinvestment of dividends and distributions		13			182
Net increase (decrease)		2,609		$	35,189
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		7,735,877		$	116,928,280
Shares issued to shareholders in reinvestment of dividends		257,629			3,924,210
Shares redeemed		(6,392,291	)		(97,642,152	)
Net increase (decrease)		1,601,215		$	23,210,338
Ten-month period ended October 31, 2010:
Shares sold		7,514,498		$	101,288,435
Shares issued to shareholders in reinvestment of dividends		701,597			9,291,113
Shares redeemed		(9,075,573	)		(123,400,233	)
Net increase (decrease)		(859,478	)	$	(12,820,685	)
Year ended December 31, 2009:
Shares sold		15,386,586		$	174,848,332
Shares issued to shareholders in reinvestment of dividends and distributions		777,370			9,520,225
Shares redeemed		(13,991,520	)		(162,699,904	)
Net increase (decrease)		2,172,436		$	21,668,653

(a)  Investor Class shares and Class C shares were first offered on November 16, 2009.

mainstayinvestments.com    27

Notes to Financial Statements (unaudited) (continued)

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

28    MainStay Epoch Global Equity Yield Fund

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Epoch Global Equity Yield Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and Epoch Investment Partners, Inc. (“Epoch”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and Epoch as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and Epoch in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and Epoch at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and Epoch on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates and Epoch as subadvisor to the Fund, and responses from New York Life Investments and Epoch to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the investment performance of the Fund, New York Life Investments and Epoch; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates and by Epoch as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and Epoch

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing Epoch’s compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same

mainstayinvestments.com    29

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)

class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

The Board also examined the nature, extent and quality of the services that Epoch provides to the Fund. The Board evaluated Epoch’s experience in serving as subadvisor to the Fund and managing other portfolios. It examined Epoch’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at Epoch, and Epoch’s overall legal and compliance environment. The Board also reviewed Epoch’s willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and Epoch’s experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and Epoch to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and Epoch

The Board considered the costs of the services provided by New York Life Investments and Epoch under the Agreements, and the profits realized by New York Life Investments, its affiliates and Epoch due to their relationships with the Fund.

In evaluating any costs and profits of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and Epoch must be in a position to pay and retain experienced professional personnel to provide services to the Fund and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board considered representations from Epoch and New York Life Investments that the subadvisory fee paid by New York Life Investments to Epoch for services provided to the Fund was the result of arm’s-length negotiations. Because Epoch is not affiliated with New York Life Investments, and Epoch’s fees are paid directly by New York Life Investments, the Board focused primarily on the profitability of the relationship between New York Life Investments and its affiliates and the Fund.

The Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board recognized, for example, the benefits to Epoch from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to Epoch in exchange for commissions paid by the Fund with respect to trades on the Fund’s portfolio securities. The Board also requested and received information from

30    MainStay Epoch Global Equity Yield Fund

Epoch and New York Life Investments concerning other business relationships between Epoch and its affiliates and New York Life Investments and its affiliates.

The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates and Epoch due to their relationships with the Fund supported the Board’s determination to approve the Agreements. With respect to Epoch, the Board concluded that any profits realized by Epoch due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and Epoch, and are based on subadvisory fees paid to Epoch by New York Life Investments, not the Fund.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to Epoch are paid by New York Life Investments, not the Fund. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and Epoch on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and Epoch about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the

mainstayinvestments.com    31

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)

same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares and $500 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

32    MainStay Epoch Global Equity Yield Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting records for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the Fund’s website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com    33

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23124 MS136-11 MSEGEY10-06/11

F3

MainStay Epoch International Small Cap Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	16
Notes to Financial Statements	23
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	30
Proxy Voting Policies and Procedures and Proxy Voting Record	34
Shareholder Reports and Quarterly Portfolio Disclosure	34

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹ (Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(11/16/09)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		7	.79%		24	.30%		3	.38%		9	.91%		1	.88%
		Excluding sales charges		14	.06		31	.54		4	.56		10	.91		1	.88

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months				One Year			Five Years		(8/2/06)			Ratio2
Class A Shares4	Maximum 5.5% Initial Sales Charge	With sales charges		7	.83%	��		24	.29%		—		5	.21%		1	.92%
		Excluding sales charges		14	.11			31	.53		—		6	.47		1	.92

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(11/16/09)			Ratio2
Class C Shares3	Maximum 1% CDSC	With sales charges		12	.61%		29	.51%		4	.01%		10	.28%		2	.63%
	if Redeemed Within One Year of Purchase	Excluding sales charges		13	.61		30	.51		4	.01		10	.28		2	.63

											Since			Gross
											Inception			Expense
Class	Sales Charge	Six Months			One Year			Five Years			(1/25/05)			Ratio2
Class I Shares4	No Sales Charge		14	.20%		31	.76%		5	.02%		11	.36%		1	.67%

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class and Class C shares, first offered on November 16, 2009, includes the historical performance of Class I shares through November 15, 2009 adjusted for differences in certain expenses and fees. Unadjusted, the performance for Investor Class and Class C shares might have been lower.
4.	Performance figures for Class I shares and Class A shares reflect the historical performance of the Institutional shares since January 25, 2005 and the Class P shares since August 2, 2006, respectively, of the Epoch International Small Cap Fund (the predecessor to the Fund), which was

The footnotes on the next page are an integral part of the tables and graphs and should be carefully read in conjunction with them.

mainstayinvestments.com    5

										Since
	Six			One			Five			Inception
Benchmark Performance	Months			Year			Years			of the Fund
MSCI World Ex U.S. Small Cap Index5		17	.50%		25	.57%		2	.41%		8	.17%
Average Lipper International Small/Mid-Cap Growth Fund6		14	.15		27	.40		3	.49		10	.01

subject to a different fee structure and for which Epoch Investment Partners Inc. served as investment advisor, for periods prior to November 16, 2009.

5.

The Morgan Stanley Capital International (“MSCI”) World Ex U.S. Small Cap Index is composed of small capitalization stocks designed to measure equity performance in global developed markets, excluding the U.S. Total returns assume reinvestment of all dividends and capital gains. The MSCI World Ex U.S. Small Cap Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.

6.

The average Lipper international small/mid-cap growth fund is representative of funds that, by portfolio practice, invest at least 75% of their equity assets in companies strictly outside of the U.S. with market capitalizations (on a three-year weighted basis) below Lipper’s international large-cap floor. International small/mid-cap growth funds typically have an above-average price-to-cash flow ratio, price-to book ratio, and three-year sales-per-share growth value compared to their cap-specific subset of the S&P/Citigroup World ex-U.S. BMI. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Epoch International Small Cap Fund

Cost in Dollars of a $1,000 Investment in MainStay Epoch International Small Cap Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,140.60	$	9.18	$	1,016.20	$	8.65
Class A Shares	$	1,000.00	$	1,141.10	$	9.08	$	1,016.30	$	8.55
Class C Shares	$	1,000.00	$	1,136.10	$	13.13	$	1,012.50	$	12.37
Class I Shares	$	1,000.00	$	1,142.00	$	7.81	$	1,017.50	$	7.35

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.73% for Investor Class, 1.71% for Class A, 2.48% for Class C and 1.47% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Portfolio Composition as of April 30, 2011 (Unaudited)

See Portfolio of Investments beginning on page 11 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	Afren PLC
2.	Nabtesco Corp.
3.	Sysmex Corp.
4.	Subsea 7 S.A.
5.	JGC Corp.
6.	Altran Technologies S.A.
7.	Localiza Rent a Car S.A.
8.	SThree PLC
9.	Ashtead Group PLC
10.	Intermediate Capital Group PLC

8    MainStay Epoch International Small Cap Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Emily Baker, Eric Citerne, CFA, Michael Welhoelter, CFA, and William Priest, CFA, of Epoch Investment Partners, Inc., the Fund’s Subadvisor.

How did MainStay Epoch International Small Cap Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Epoch International Small Cap Fund returned 14.06% for Investor Class shares, 14.11% for Class A shares and 13.61% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 14.20%. Class I shares outperformed—and all other share classes underperformed—the 14.15% return of the average Lipper¹ international small/mid-cap growth fund for the same period. All share classes underperformed the 17.50% return of the MSCI World Ex U.S. Small Cap Index² during the six months ended April 30, 2011. The MSCI World Ex U.S. Small Cap Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund produced a strong absolute return but lagged the MSCI World Ex U.S. Small Cap Index, which was up strongly over the reporting period. Despite the challenges of higher oil prices stemming from unrest in the Middle East, the potential negative consequences following the earthquake in Japan and the renewal of widening spreads³ for European sovereign debt, equity markets rose in response to the supportive monetary-policy environment expressed through the Federal Reserve’s second round of quantitative easing, improving employment data in the United States, better-than-expected corporate earnings reports and a modest pickup in merger and acquisition activity. (Quantitative easing is the direct purchase of securities by the Federal Reserve.)

The primary reasons for the Fund’s underperformance were stock selection in the consumer discretionary, consumer staples, materials and health care sectors, as well as the Fund’s expo-sure to Brazilian stocks. The main positive contributors to rela-tive results during the reporting period included an underweight exposure relative to the benchmark in financials and stock selection within the sector. Stock selection in industrials and information technology contributed positively to the Fund’s relative performance, as did strong stock selection and an overweight position in France.

During the reporting period, which sectors were the strongest contributors to the Fund’s relative performance, and which sectors were particularly weak?

During the reporting period, the sector that made the strongest contribution to the Fund’s performance relative to the MSCI World Ex U.S. Small Cap Index was financials. (Contributions take weightings and total returns into account.) The Fund benefited from a significantly underweight position relative to the benchmark and strong stock selection as financials overall lagged the benchmark. The Fund’s significant overweight position in the industrials sector proved beneficial as the sector performed well during the reporting period. Strong stock selection in information technology also contributed positively to the Fund’s relative results.

During the reporting period, the sector that detracted the most from the Fund’s performance relative to the MSCI World Ex U.S. Small Cap Index was consumer discretionary. Disappointing stock selection and a slightly overweight position in a sector that did not keep pace with the broader market also detracted from results. Weak stock selection in materials, coupled with a significantly underweight position in a sector that performed well during the reporting period, detracted from the Fund’s relative performance. While the Fund’s health care stocks produced positive absolute returns, the Fund’s holdings lagged those of the benchmark.

During the reporting period, which individual stocks made the strongest contributions to the Fund’s absolute performance and which stocks detracted the most?

On an absolute basis, U.K.-based construction equipment ren-tal company Ashtead Group PLC, French specialty chemicals company Rhodia S.A. and French engineering and technology consulting firm Altran Technologies S.A. were the strongest positive contributors to the Fund’s performance.

Ashtead benefited from better-than-expected equipment utilization and rising rental yield. Rhodia performed well because of strong results from its emerging-market exposure in the latter part of 2010 and a takeover bid from Solvay at a 50% premium in April 2011. Altran Technologies benefited from improved job demand in Europe.

On an absolute basis, mineral exploration, development and mining company Centamin Egypt, Chinese sofa and recliner manufacturing company Man Wah Holdings and Brazilian bank Banco ABC Brasil were the greatest detractors from the Fund’s performance during the reporting period.

Shares of Centamin Egypt fell as the revolution in Egypt broadly affected the country’s equity market. We continue to have conviction in the stock, based on the value of the company’s gold reserves. Man Wah Holdings’ stock declined as investors became concerned that tightening measures taken to address underlying inflationary pressures in China might affect consumer spending. Banco ABC Brasil, a leading performer in the first nine months of 2010, pulled back toward the end of the year as a result of increased reserve requirements by Brazil’s central bank. The Fund’s position in Banco ABC Brasil continued to

1. See footnote on page 6 for more information on Lipper Inc.

2. See footnote on page 6 for more information on the MSCI World Ex U.S. Small Cap Index.

3. The term “spread” may refer to the difference in yield between a security or type of security and comparable U.S. treasury issues. The term may also refer to the difference in yield between two specific securities or types of securities.

mainstayinvestments.com    9

underperform in the beginning of 2011 as emerging markets suffered broadly because of concerns over the impact of rising food and energy prices on growth, as well as a broad-based tightening stance by emerging-market governments.

Did the Fund make any significant purchases or sales during the reporting period?

Among the stocks that the Fund purchased during the reporting period was Altran Technologies. We added the stock on the belief that cost-cutting measures would lead to increased outsourcing to improve business productivity. The Fund initiated a position in SThree PLC, a specialist staffing company in the U.K. and Europe. We added the holding because we believed that the company’s increased use of temporary staffing provided a cost-effective way to improve business productivity as the economic recovery begins in Europe. We also purchased shares of Societe BIC S.A., a manufacturer of consumer products such as lighters, shavers and pens. We believe that the company will benefit from emerging consumer demand. Traditionally, demand for defensive, nondiscretionary products such as those manufactured by Societe BIC does not fall with a slowing economy, declining disposable income or a less positive job outlook.

During the reporting period, we sold the Fund’s position in Banco ABC Brasil when increased reserve requirements by Brazil’s central bank negatively affected the stock. We felt that the company’s outlook was clouded by the broad-based tightening stance taken by emerging-market governments in response to inflationary pressures. Viscofan S.A., a Spanish sausage casing manufacturer, was a strong performer over its holding period, and we sold the shares as the stock reached our price target. Next PLC is a U.K.-based retailer offering products in clothing, footwear, accessories and home products. As austerity measures in the U.K. and a rising value-added tax slowed consumer spending, we chose to exit the stock.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, we increased the Fund’s weightings in the information technology and health care sectors. The Fund’s information technology weighting moved from a market-neutral position to an overweight position relative to the MSCI World Ex U.S. Small Cap Index. In the health care sector, the Fund increased its overweight position relative to the Index to a more substantially overweight position as we added to defensive positions in the sector.

The Fund reduced its exposure to materials because Rhodia, our largest holding in the sector, was taken over. The Fund remains significantly underweight in the materials sector relative to the MSCI World Ex U.S. Small Cap Index. In consumer staples, the Fund shifted from a market-neutral to a modestly underweight position relative to the benchmark because of the sale of Viscofan S.A. The Fund’s financials weighting declined with the elimination of Banco ABC Brasil. The Fund remains significantly underweight relative to the MSCI World Ex U.S. Small Cap Index in financials.

How was the Fund positioned at the end of April 2011?

The Fund’s positioning is focused on investing in companies with exposure to secular growth themes, strong brands, improving free cash flow and reasonable valuations. As of April 30, 2011, the Fund’s most substantially overweight sectors relative to the MSCI World Ex U.S. Small Cap Index were industrials and health care. As of the same date, the Fund’s most substantially underweight sectors relative to the benchmark were financials and materials.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay Epoch International Small Cap Fund

Portfolio of Investments April 30, 2011 (unaudited)

	Shares		Value
Common Stocks 95.0%†
Australia 1.7%
Centamin Egypt, Ltd. (Metals & Mining) (a)		1,058,700	$	2,305,049
SAI Global, Ltd. (Professional Services)		394,974		2,164,654
				4,469,703
Austria 1.2%
Andritz A.G. (Machinery)		29,400		3,035,579
Belgium 1.1%
Telenet Group Holding N.V. (Diversified Telecommunication Services) (a)		59,702		2,968,073
Bermuda 2.9%
Biosensors International Group, Ltd. (Health Care Equipment & Supplies) (a)		963,900		1,063,082
Dockwise, Ltd. (Energy Equipment & Services) (a)		60,550		1,726,410
Huabao International Holdings, Ltd. (Chemicals)		420,000		626,248
Lancashire Holdings, Ltd. (Insurance)		118,950		1,281,538
Man Wah Holdings, Ltd. (Household Durables)		1,912,400		2,371,339
Peace Mark Holdings, Ltd. (Textiles, Apparel & Luxury Goods) (a)(b)(c)		1,118,750		1,441
Ship Finance International, Ltd. (Oil, Gas & Consumable Fuels)		28,000		559,720
				7,629,778
Brazil 5.2%
BR Properties S.A. (Real Estate Management & Development)		110,300		1,325,115
Diagnosticos da America S.A. (Health Care Providers & Services)		266,900		3,571,221
X  Localiza Rent a Car S.A. (Road & Rail)		302,400		5,189,931
Mills Estruturas e Servicos de Engenharia S.A. (Trading Companies & Distributors)		206,100		2,816,648
Rossi Residencial S.A. (Household Durables)		67,950		637,085
				13,540,000
British Virgin Islands 0.5%
Mail.ru Group, Ltd., GDR (Internet Software & Services) (a)(d)		1,800		54,522
Playtech, Ltd. (Software)		217,000		1,169,859
				1,224,381
Canada 5.0%
Crew Energy, Inc. (Oil, Gas & Consumable Fuels) (a)		230,200		3,977,984
Detour Gold Corp. (Metals & Mining) (a)		22,200		750,363
Paramount Resources, Ltd. (Oil, Gas & Consumable Fuels) (a)		55,850		1,735,444
Sino-Forest Corp. (Paper & Forest Products) (a)		176,150		4,376,987
SouthGobi Resources, Ltd. (Oil, Gas & Consumable Fuels) (a)		162,650		2,042,258
				12,883,036
Cayman Islands 2.1%
China High Precision Automation Group, Ltd. (Electronic Equipment & Instruments)		2,236,600		1,817,215
China Shanshui Cement Group (Construction Materials)		901,000		1,007,008
Little Sheep Group, Ltd. (Hotels, Restaurants & Leisure) (c)		769,000		495,091
Shenguan Holdings Group, Ltd. (Food Products)		1,298,000		1,721,474
Sino Biopharmaceutical, Ltd. (Biotechnology)		1,231,350		448,701
				5,489,489
China 1.5%
Dalian Port PDA Co., Ltd. (Transportation Infrastructure)		2,532,426		991,286
Shandong Weigao Group Medical Polymer Co., Ltd. (Health Care Equipment & Supplies) (a)		182,000		494,473
Zhuzhou CSR Times Electric Co., Ltd. (Electrical Equipment)		626,000		2,478,609
				3,964,368
France 9.2%
Alten, Ltd. (IT Services)		108,550		4,452,770
X  Altran Technologies S.A. (IT Services) (a)		659,600		5,207,232
EDF Energies Nouvelles S.A. (Independent Power Producers & Energy Traders)		14,375		855,068
Eurazeo (Diversified Financial Services)		15,250		1,270,323
Guyenne et Gascogne S.A. (Food & Staples Retailing)		3,300		476,120
IPSOS (Media)		67,300		3,498,818
Mersen (Electrical Equipment)		56,100		3,410,117
Rhodia S.A. (Chemicals)		16,950		790,196
Saft Groupe S.A. (Electrical Equipment)		22,456		1,031,082
Societe BIC S.A. (Commercial Services & Supplies)		29,943		2,911,139
				23,902,865
Germany 3.9%
Asian Bamboo A.G. (Food Products)		64,900		3,268,306
GFK SE (Media)		24,550		1,392,674
Hamburger Hafen und Logistik A.G. (Transportation Infrastructure)		15,205		737,559
Joyou A.G. (Household Durables) (a)		44,250		882,836
Morphosys A.G. (Life Sciences Tools & Services) (a)		69,050		2,030,127

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. Any of the ten largest holdings may be a security traded on more than one exchange. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of Investments April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
Germany (continued)
Software A.G. (Software)		6,750	$	1,277,214
Stroer Out-of-Home Media A.G. (Media) (a)		15,950		519,736
				10,108,452
Hong Kong 1.0%
Television Broadcasts, Ltd. (Media)		315,000		1,847,513
Vitasoy International Holdings, Ltd. (Food Products)		982,000		843,385
				2,690,898
Italy 8.3%
Amplifon S.p.A. (Health Care Providers & Services)		475,101		2,917,523
Astaldi S.p.A (Construction & Engineering)		74,748		652,100
Azimut Holding S.p.A (Capital Markets)		75,950		970,818
Danieli & Co. S.p.A. (Machinery)		58,250		1,043,089
Exor S.p.A (Diversified Financial Services)		80,914		2,918,245
Maire Tecnimont S.p.A (Construction & Engineering)		581,400		2,437,028
Mediolanum S.p.A. (Insurance)		446,150		2,622,114
Safilo Group S.p.A. (Textiles, Apparel & Luxury Goods) (a)		176,650		3,372,606
Tod’s S.p.A. (Textiles, Apparel & Luxury Goods)		33,269		4,516,181
				21,449,704
Japan 18.4%
Air Water, Inc. (Chemicals)		111,160		1,336,140
Daibiru Corp. (Real Estate Management & Development)		70,400		557,194
Daicel Chemical Industries, Ltd. (Chemicals)		304,000		1,948,838
Gree, Inc. (Internet Software & Services)		110,700		2,251,803
House Foods Corp. (Food Products)		83,200		1,358,032
X  JGC Corp. (Construction & Engineering)		218,750		5,390,880
Kansai Paint Co., Ltd. (Chemicals)		402,440		3,601,941
McDonald’s Holdings Co. Japan, Ltd. (Hotels, Restaurants & Leisure)		82,400		2,106,856
X  Nabtesco Corp. (Machinery)		236,300		5,954,475
NET One Systems Co., Ltd. (IT Services)		900		1,613,265
Nifco, Inc./Japan (Auto Components)		127,150		3,210,297
Nippon Shokubai Co, Ltd. (Chemicals)		107,000		1,389,028
Oracle Corp. Japan (Software)		39,700		1,715,447
ORIX Corp. (Diversified Financial Services)		3,050		297,423
Osaka Securities Exchange Co., Ltd. (Diversified Financial Services)		100		506,688
Santen Pharmaceutical Co., Ltd. (Pharmaceuticals)		38,000		1,463,971
Sapporo Holdings, Ltd. (Beverages)		183,000		730,962
Sawai Pharmaceutical Co., Ltd. (Pharmaceuticals)		49,400		4,415,336
Sohgo Security Services Co., Ltd. (Commercial Services & Supplies)		61,600		703,219
Start Today Co., Ltd. (Internet & Catalog Retail)		95,100		1,641,373
X  Sysmex Corp. (Health Care Equipment & Supplies)		158,206		5,509,856
				47,703,024
Luxembourg 2.5%
L’Occitane International S.A. (Specialty Retail) (a)		455,700		1,092,565
X  Subsea 7 S.A. (Energy Equipment & Services)		208,961		5,496,249
				6,588,814
Netherlands 3.7%
BinckBank N.V. (Capital Markets)		43,450		785,465
Core Laboratories N.V. (Energy Equipment & Services)		19,500		1,871,610
Imtech N.V. (Construction & Engineering)		30,550		1,160,188
SBM Offshore N.V. (Energy Equipment & Services) (a)		58,371		1,707,942
Ten Cate N.V. (Textiles, Apparel & Luxury Goods)		35,965		1,664,674
USG People N.V. (Professional Services) (a)		118,200		2,339,836
				9,529,715
Norway 0.5%
Marine Harvest (Food Products)		587,650		776,201
Petroleum Geo-Services ASA (Energy Equipment & Services) (a)		29,350		463,471
				1,239,672
Republic of Korea 0.7%
Glovis Co., Ltd. (Air Freight & Logistics)		12,026		1,716,958
Spain 1.2%
Construcciones y Auxiliar de Ferrocarriles S.A. (Machinery)		400		243,797
Ebro Puleva S.A. (Food Products)		9,541		235,504
Obrascon Huarte Lain S.A. (Construction & Engineering)		65,790		2,695,325
				3,174,626
Sweden 0.7%
Rezidor Hotel Group AB (Hotels, Restaurants & Leisure) (a)		252,100		1,819,057
Switzerland 3.9%
Clariant A.G. (Chemicals) (a)		50,650		1,051,061
EFG International A.G. (Capital Markets)		110,800		1,652,393
Helvetia Holding A.G. (Insurance) (a)		3,750		1,759,032
Partners Group Holding A.G. (Capital Markets)		6,450		1,369,786
Sulzer A.G. (Machinery)		5,300		955,225
Temenos Group A.G. Registered (Software) (a)		99,524		3,307,879
				10,095,376

12    MainStay Epoch International Small Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares			Value
Common Stocks (continued)
Taiwan 1.3%
Clevo Co. (Computers & Peripherals)		545,000		$	1,246,486
First Steamship Co., Ltd. (Marine)		198,000			480,507
Tong Yang Industry Co., Ltd. (Auto Components)		148,000			212,916
TXC Corp. (Electronic Equipment & Instruments)		444,500			870,732
WPG Holdings, Ltd. (Electronic Equipment & Instruments)		304,800			563,016
					3,373,657
United Kingdom 18.5%
X  Afren PLC (Oil, Gas & Consumable Fuels) (a)		2,377,600			6,350,306
Aggreko PLC (Commercial Services & Supplies)		18,350			547,732
X  Ashtead Group PLC (Trading Companies & Distributors)		1,442,350			4,871,461
Bovis Homes Group PLC (Household Durables)		45,800			336,609
Cookson Group PLC (Industrial Conglomerates) (a)		143,250			1,712,031
Domino’s Pizza UK & IRL PLC (Hotels, Restaurants & Leisure)		139,800			1,080,707
Homeserve PLC (Commercial Services & Supplies)		471,665			3,850,201
Informa PLC (Media)		256,597			1,786,004
X  Intermediate Capital Group PLC (Capital Markets)		872,100			4,807,150
Intertek Group PLC (Professional Services)		97,600			3,464,305
ITV PLC (Media) (a)		1,349,950			1,714,843
Jazztel PLC (Diversified Telecommunication Services) (a)		211,472			1,293,606
Meggitt PLC (Aerospace & Defense)		416,800			2,499,364
Micro Focus International PLC (Software)		94,350			585,475
Millennium & Copthorne Hotels PLC (Hotels, Restaurants & Leisure)		382,950			3,380,606
Misys PLC (Software) (a)		275,331			1,451,442
Restaurant Group PLC (Hotels, Restaurants & Leisure)		403,350			2,257,014
X  SThree PLC (Professional Services)		683,394			4,997,518
TUI Travel PLC (Hotels, Restaurants & Leisure)		282,100			1,127,124
					48,113,498
Total Common Stocks (Cost $189,695,166)					246,710,723
Preferred Stocks 2.0%
Germany 2.0%
Jungheinrich A.G. 0.54% (Machinery)		30,802			1,415,206
ProSiebenSat.1 Media A.G. 0.09% (Media)		128,950			3,692,875
Total Preferred Stocks (Cost $3,473,521)					5,108,081
	Principal
	Amount
Short-Term Investment 1.7%
Repurchase Agreement 1.7%
United States 1.7%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $4,519,471 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $4,610,000 and a Market Value of $4,609,975) (Capital Markets)	$	4,519,467			4,519,467
Total Short-Term Investment (Cost $4,519,467)					4,519,467
Total Investments (Cost $197,688,154) (e)		98.7	%		256,338,271
Other Assets, Less Liabilities		1.3			3,470,396
Net Assets		100.0	%	$	259,808,667

(a)	Non-income producing security.
(b)	Illiquid security—The total market value of this security at April 30, 2011 is $1,441, which represents less than one-tenth of a percent of the Fund’s net assets.
(c)	Fair valued security. The total market value of these securities at April 30, 2011 is $496,532, which represents 0.2% of the Fund’s net assets.
(d)	GDR—Global Depositary Receipt.
(e)	At April 30, 2011, cost is $202,799,797 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	61,253,496
Gross unrealized depreciation		(7,715,022	)
Net unrealized appreciation	$	53,538,474

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of Investments April 30, 2011 (unaudited) (continued)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks (b)	$	246,214,191	$	—	$	496,532	$	246,710,723
Preferred Stocks		5,108,081		—		—		5,108,081
Short-Term Investment
Repurchase Agreement		—		4,519,467		—		4,519,467
Total Investments in Securities	$	251,322,272	$	4,519,467	$	496,532	$	256,338,271

(a)	For a complete listing of investments and their industries, see the Portfolio of Investments.
(b)	The level 3 securities valued at $1,441 and $495,091 are held under Bermuda within the Textiles, Apparel & Luxury Goods industry and Cayman Islands within the Hotels, Restaurants & Leisure industry, respectively, within the Common Stocks section of the Portfolio of Investments.

The Fund recognizes transfers between the levels as of the beginning of the period.

At October 31, 2010 and April 30, 2011 foreign equity securities were not fair valued, as a result there were no transfers between Level 1 and Level 2 for value measurements. (See Note 2)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

																				Change in
																				Unrealized
																				Appreciation
																				(Depreciation)
																				from
	Balance						Change in											Balance		Investments
	as of		Accrued		Realized		Unrealized							Transfers		Transfers		as of		Still Held at
	October 31,		Discounts		Gain		Appreciation							in to		out of		April 30,		April 30,
Investments in Securities	2010		(Premiums)		(Loss)		(Depreciation)			Purchases		Sales		Level 3		Level 3		2011		2011 (a)
Common Stock
Bermuda	$	1,443	$	—	$	—	$	(2	)	$	—	$	—	$	—	$	—	$	1,441	$	(2	)
Cayman Islands		—						(2,364	)		497,455								495,091		(2,364	)
Total	$	1,443	$	—	$	—	$	(2,366	)	$	497,455	$	—	$	—	$	—	$	496,532	$	(2,366	)

(a)  Included in “Net change in unrealized appreciation (depreciation) on investments” in the Statement of Operations.

14    MainStay Epoch International Small Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The table below sets forth the diversification of MainStay Epoch International Small Cap Fund investments by industry.

Industry Diversification

	Value		Percent †
Aerospace & Defense	$	2,499,364		1.0	%
Air Freight & Logistics		1,716,958		0.7
Auto Components		3,423,213		1.3
Beverages		730,962		0.3
Biotechnology		448,701		0.2
Capital Markets		14,105,079		5.4
Chemicals		10,743,452		4.1
Commercial Services & Supplies		8,012,291		3.1
Computers & Peripherals		1,246,486		0.5
Construction & Engineering		12,335,521		4.7
Construction Materials		1,007,008		0.4
Diversified Financial Services		4,992,679		1.9
Diversified Telecommunication Services		4,261,679		1.6
Electrical Equipment		6,919,808		2.7
Electronic Equipment & Instruments		3,250,963		1.2
Energy Equipment & Services		11,265,682		4.3
Food & Staples Retailing		476,120		0.2
Food Products		8,202,902		3.1
Health Care Equipment & Supplies		7,067,411		2.7
Health Care Providers & Services		6,488,744		2.5
Hotels, Restaurants & Leisure		12,266,455		4.7
Household Durables		4,227,869		1.6
Independent Power Producers & Energy Traders		855,068		0.3
Industrial Conglomerates		1,712,031		0.7
Insurance		5,662,684		2.2
Internet & Catalog Retail		1,641,373		0.6
Internet Software & Services		2,306,325		0.9
IT Services		11,273,267		4.3
Life Sciences Tools & Services		2,030,127		0.8
Machinery		12,647,371		4.9
Marine		480,507		0.2
Media		14,452,463		5.6
Metals & Mining		3,055,412		1.2
Oil, Gas & Consumable Fuels		14,665,712		5.6
Paper & Forest Products		4,376,987		1.7
Pharmaceuticals		5,879,307		2.3
Professional Services		12,966,313		5.0
Real Estate Management & Development		1,882,309		0.7
Road & Rail		5,189,931		2.0
Software		9,507,316		3.7
Specialty Retail		1,092,565		0.4
Textiles, Apparel & Luxury Goods		9,554,902		3.7
Trading Companies & Distributors		7,688,109		3.0
Transportation Infrastructure		1,728,845		0.7
		256,338,271		98.7
Other Assets, Less Liabilities		3,470,396		1.3
Net Assets	$	259,808,667		100.0	%

† Percentages indicated are based on Fund net assets

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $197,688,154)	$	256,338,271
Cash denominated in foreign currencies (identified cost $1,657,398)		1,683,181
Receivables:
Investment securities sold		3,265,036
Dividends and interest		781,791
Fund shares sold		79,429
Other assets		31,252
Total assets		262,178,960
Liabilities
Payables:
Investment securities purchased		1,875,874
Manager (See Note 3)		220,655
Fund shares redeemed		150,732
Transfer agent (See Note 3)		66,922
Professional fees		31,322
Custodian		12,726
Shareholder communication		6,732
NYLIFE Distributors (See Note 3)		3,681
Trustees		620
Accrued expenses		1,029
Total liabilities		2,370,293
Net assets	$	259,808,667
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	11,969
Additional paid-in capital		290,678,409
		290,690,378
Distributions in excess of net investment income		(3,123,166	)
Accumulated net realized gain (loss) on investments and foreign currency transactions		(86,462,952	)
Net unrealized appreciation (depreciation) on investments		58,650,117
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies		54,290
Net assets	$	259,808,667
Investor Class
Net assets applicable to outstanding shares	$	811,113
Shares of beneficial interest outstanding		38,434
Net asset value per share outstanding	$	21.10
Maximum sales charge (5.50% of offering price)		1.23
Maximum offering price per share outstanding	$	22.33
Class A
Net assets applicable to outstanding shares	$	9,946,854
Shares of beneficial interest outstanding		470,860
Net asset value per share outstanding	$	21.12
Maximum sales charge (5.50% of offering price)		1.23
Maximum offering price per share outstanding	$	22.35
Class C
Net assets applicable to outstanding shares	$	2,144,078
Shares of beneficial interest outstanding		102,271
Net asset value and offering price per share outstanding	$	20.96
Class I
Net assets applicable to outstanding shares	$	246,906,622
Shares of beneficial interest outstanding		11,357,359
Net asset value and offering price per share outstanding	$	21.74

16    MainStay Epoch International Small Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	1,582,141
Interest		199
Total income		1,582,340
Expenses
Manager (See Note 3)		1,147,546
Transfer agent (See Note 3)		206,252
Custodian		60,970
Registration		42,853
Professional fees		35,819
Distribution/Service—Investor Class (See Note 3)		674
Distribution/Service—Class A (See Note 3)		9,231
Distribution/Service—Class C (See Note 3)		8,852
Shareholder communication		14,880
Trustees		2,991
Miscellaneous		17,236
Total expenses		1,547,304
Net investment income (loss)		35,036
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions		23,437,888
Foreign currency transactions		(89,429	)
Net realized gain (loss) on investments and foreign currency transactions		23,348,459
Net change in unrealized appreciation (depreciation) on:
Investments		5,097,308
Translation of other assets and liabilities in foreign currencies		25,490
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		5,122,798
Net realized and unrealized gain (loss) on investments and foreign currency transactions		28,471,257
Net increase (decrease) in net assets resulting from operations	$	28,506,293

(a)  Dividends recorded net of foreign withholding taxes in the amount of $84,157.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited), the period January 1, 2010 through October 31, 2010 (a) and the year ended December 31, 2009.

	2011			2010			2009
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	35,036		$	440,483		$	1,009,249
Net realized gain (loss) on investments and foreign currency transactions		23,348,459			7,190,724			(57,165,310	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		5,122,798			24,082,286			111,359,387
Net increase (decrease) in net assets resulting from operations		28,506,293			31,713,493			55,203,326
Dividends to shareholders:
From net investment income:
Investor Class		(10,628	)		—			—
Class A		(146,228	)		—			—
Class C		(33,623	)		—			—
Class I		(4,673,999	)		—			—
Total dividends to shareholders		(4,864,478	)		—			—
Capital share transactions:
Net proceeds from sale of shares		74,787,672			38,685,793			79,648,838
Net asset value of shares issued to shareholders in reinvestment of dividends		4,590,954			—			—
Cost of shares redeemed		(29,074,126	)		(54,910,830	)(b)		(115,080,875	)(b)
Increase (decrease) in net assets derived from capital share transactions		50,304,500			(16,225,037	)		(35,432,037	)
Net increase (decrease) in net assets		73,946,315			15,488,456			19,771,289
Net Assets
Beginning of period		185,862,352			170,373,896			150,602,607
End of period	$	259,808,667		$	185,862,352		$	170,373,896
Undistributed (distributions in excess of) net investment income at end of period	$	(3,123,166	)	$	1,706,276		$	1,018,573

(a)	The Fund changed its fiscal year end from December 31 to October 31.
(b)	Cost of shares redeemed net of redemption fees of $78 and $1 for the ten-month period ended October 31, 2010 and the year ended December 31, 2009, respectively. (See Note 2(J))

18    MainStay Epoch International Small Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
				January 1,			November 16,
	Six months			2010			2009**
	ended			through			through
	April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	18.97		$	15.81		$	16.11
Net investment income (loss) (a)		(0.01	)		0.04			0.00	‡
Net realized and unrealized gain (loss) on investments		2.64			3.13			(0.30	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		(0.01	)		—
Total from investment operations		2.62			3.16			(0.30	)
Less dividends:
From net investment income		(0.49	)		—			—
Redemption fee (b)(c)		—			—			0.00	‡
Net asset value at end of period	$	21.10		$	18.97		$	15.81
Total investment return (d)		14.06	% (e)		19.99	%(e)		(1.86	%)(e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.13	%)††		0.30	%††		0.15	%††
Net expenses		1.73	% ††		1.85	%††		1.59	%††
Expenses (before waiver/reimbursement)		1.73	% ††		1.88	%††		1.59	%††
Portfolio turnover rate		35	%		41	%		105	%
Net assets at end of period (in 000’s)	$	811		$	303		$	31

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fees have been reclassified from net realized and unrealized gain on investments to a separate line, “redemption fee”, to conform to the current year presentation.
(c)	The redemption fee was discontinued as of April 1, 2010.
(d)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(e)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Financial Highlights selected per share data and ratios

	Class A
				January 1,												August 2,
	Six months			2010												2006**
	ended			through												through
	April 30,			October 31,			Year ended December 31,									December 31,
	2011*			2010***			2009			2008			2007			2006
Net asset value at beginning of period	$	18.95		$	15.80		$	10.98		$	23.39		$	23.49		$	21.20
Net investment income (loss)		(0.02	)(a)		0.02	(a)		0.06	(a)		0.03	(a)		(0.04	)		(0.02	)
Net realized and unrealized gain (loss) on investments		2.65			3.14			4.76			(11.51	)		3.39			3.63
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		(0.01	)		—			—			—			—
Total from investment operations		2.62			3.15			4.82			(11.48	)		3.35			3.61
Less dividends and distributions:
From net investment income		(0.45	)		—			—			—			(0.01	)		(0.00	)‡
From net realized gain on investments		—			—			—			(0.94	)		(3.48	)		(1.32	)
Total dividends and distributions		(0.45	)		—			—			(0.94	)		(3.49	)		(1.32	)
Redemption fee (b)(c)		—			—			0.00	‡		0.01			0.04			—
Net asset value at end of period	$	21.12		$	18.95		$	15.80		$	10.98		$	23.39		$	23.49
Total investment return (d)		14.11	% (e)		19.94	%(e)		43.90	%		(49.01	%)		14.54	%		17.10	% (e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.18	%)††		0.12	%††		0.42	%		0.17	%		(0.10	%)		(0.41	%)††
Net expenses		1.71	% ††		1.89	%††		1.83	%		1.74	%		1.70	%		1.80	% ††
Expenses (before waiver/reimbursement)		1.71	% ††		1.92	%††		1.83	%		1.74	%		1.70	%		1.80	% ††
Portfolio turnover rate		35	%		41	%		105	%		107	%		140	%		75	%
Net assets at end of period (in 000’s)	$	9,947		$	5,175		$	2,749		$	1,098		$	2,858		$	268

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fees have been reclassified from net realized and unrealized gain on investments to a separate line, “redemption fee”, to conform to the current year presentation.
(c)	The redemption fee was discontinued as of April 1, 2010.
(d)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(e)	Total investment return is not annualized.

20    MainStay Epoch International Small Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class C
				January 1,			November 16,
	Six months			2010			2009**
	ended			through			through
	April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	18.84		$	15.79		$	16.11
Net investment income (loss) (a)		(0.09	)		(0.04	)		(0.01	)
Net realized and unrealized gain (loss) on investments		2.63			3.10			(0.31	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		(0.01	)		—
Total from investment operations		2.53			3.05			(0.32	)
Less dividends:
From net investment income		(0.41	)		—			—
Redemption fee (b)(c)		—			—			0.00	‡
Net asset value at end of period	$	20.96		$	18.84		$	15.79
Total investment return (d)		13.61	% (e)		19.32	% (e)		(1.99	%)(e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.94	%)††		(0.28	%)††		(0.65	%)††
Net expenses		2.48	% ††		2.60	% ††		2.34	% ††
Expenses (before waiver/reimbursement)		2.48	% ††		2.63	% ††		2.34	% ††
Portfolio turnover rate		35	%		41	%		105	%
Net assets at end of period (in 000’s)	$	2,144		$	1,476		$	25

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fees have been reclassified from net realized and unrealized gain on investments to a separate line, “redemption fee”, to conform to the current year presentation.
(c)	The redemption fee was discontinued as of April 1, 2010.
(d)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(e)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Financial Highlights selected per share data and ratios

	Class I
				January 1,															January 25,
	Six months			2010															2005**
	ended			through															through
	April 30,			October 31,			Year ended December 31,												December 31,
	2011*			2010***			2009			2008			2007			2006			2005
Net asset value at beginning of period	$	19.51		$	16.24		$	11.16		$	23.77		$	23.91		$	18.26		$	15.00
Net investment income (loss)		0.01	(a)		0.04	(a)		0.09	(a)		0.06	(a)		0.04			(0.01	)		0.02
Net realized and unrealized gain (loss) on investments		2.72			3.24			4.99			(11.69	)		3.31			7.00			3.24
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		(0.01	)		—			—			—			—			—
Total from investment operations		2.72			3.27			5.08			(11.63	)		3.35			6.99			3.26
Less dividends and distributions:
From net investment income		(0.49	)		—			—			(0.04	)		(0.01	)		(0.02	)		—
From net realized gain on investments		—			—			—			(0.94	)		(3.48	)		(1.32	)		—
Total dividends and distributions		(0.49	)		—			—			(0.98	)		(3.49	)		(1.34	)		—
Redemption fee (b)(c)		—			—			—			0.00	‡		—			—			—
Net asset value at end of period	$	21.74		$	19.51		$	16.24		$	11.16		$	23.77		$	23.91		$	18.26
Total investment return (d)		14.20	%(e)		20.14	%(e)		45.52	%		(48.89	%)		14.12	%		38.40	%		21.73	%(e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.05	%††		0.31	%††		0.67	%		0.30	%		0.15	%		0.11	%		0.13	%††
Net expenses		1.47	%††		1.65	%††		1.60	%		1.49	%		1.45	%		1.55	%		1.73	%††
Expenses (before reimbursement/waiver)		1.47	%††		1.67	%††		1.60	%		1.49	%		1.45	%		1.55	%		1.73	%††
Portfolio turnover rate		35	%		41	%		105	%		107	%		140	%		75	%		49	%
Net assets at end of period (in 000’s)	$	246,907		$	178,909		$	167,568		$	149,505		$	451,242		$	286,841		$	115,681

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fees have been reclassified from net realized and unrealized gain on investments to a separate line, “redemption fee”, to conform to the current year presentation.
(c)	The redemption fee was discontinued as of April 1, 2010.
(d)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(e)	Total investment return is not annualized.

22    MainStay Epoch International Small Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Epoch International Small Cap Fund (the “Fund”), a diversified fund. The Fund is the successor to the Epoch International Small Cap Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Epoch Investment Partners, Inc. served as investment advisor.

The Fund currently offers four classes of shares. Investor Class and Class C shares commenced operations on November 16, 2009. Class A shares and Class I shares commenced operations (under former designations) on August 2, 2006 and January 25, 2005, respectively. Effective January 4, 2010, the Fund changed its fiscal year end from December 31 to October 31. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The four classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek long-term capital appreciation.

The financial statements of the Fund reflect the historical results of the Institutional Class and Class P shares of the Predecessor Fund prior to its reorganization. Upon the completion of the reorganization, the Class I and Class A shares of the Fund assumed the performance, financial and other information of the Institutional Class and Class P shares of the Predecessor Fund, respectively. All information and references to periods prior to the commencement of operations of the Fund refer to the Predecessor Fund.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had

mainstayinvestments.com    23

Notes to Financial Statements (unaudited) (continued)

an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Options contracts are valued at the last posted settlement price on the market where such options are principally traded. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Foreign currency forward contracts are valued at their fair market values determined on the basis of the mean between the last current bid and ask prices based on dealer or exchange quotations and are generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund held a security with a value of $496,532, that was valued in such a manner.

Certain events may occur between the time that foreign markets close, on which securities held by the Fund principally trade, and the time at which the Fund’s NAV is calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisor conclude that such events may have affected the accuracy of the last price reported on the local foreign market, the Manager or Subadvisor may, pursuant to procedures adopted by the Fund’s Board, adjust the value of the local price to reflect the impact on the price of such securities as a result of such events. In this instance, securities are generally categorized as Level 3 in the hierarchy. Additionally, foreign equity securities are also fair valued whenever the movement of a particular index exceeds certain thresholds. In such cases, the securities are fair valued by applying factors provided by a third party vendor in accordance with the Fund’s policies and procedures and are generally categorized as Level 2 in the hierarchy. At April 30, 2011, foreign equity securities held by the Fund were not fair valued.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued. Its illiquidity might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of a Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in determining value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor determines the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued in such manner as the Board in good faith deems appropriate to reflect their fair market value.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required. Investment income received by the Fund from foreign sources may be subject to foreign income taxes. These foreign income taxes are generally withheld at the source.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

24    MainStay Epoch International Small Cap Fund

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Foreign Currency Transactions. The books and records of the Fund are kept in U.S. dollars. Prices of securities denominated in foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling exchange rates last quoted by any major U.S. bank at the following dates:

(i) market value of investment securities, other assets and liabilities—at the valuation date, and

(ii) purchases and sales of investment securities, income and expenses—at the date of such transactions.

The assets and liabilities that are denominated in foreign currency amounts are presented at the exchange rates and market values at the close of the period. The realized and unrealized changes in net assets arising from fluctuations in exchange rates and market prices of securities are not separately presented.

Net realized gain (loss) on foreign currency transactions represents net gains and losses on foreign currency forward contracts, net currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the Fund’s books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or losses from valuing such foreign currency denominated assets and liabilities, other than investments at valuation date exchange rates, are reflected in unrealized foreign exchange gains or losses.

(I) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(J) Redemption Fee. Prior to April 1, 2010, the Fund imposed a 2.00% redemption fee on redemptions (including exchanges) of Fund shares made within 60 days of their date of purchase for any class. The redemption fee was designed to offset brokerage commissions and other costs associated with short-term trading and was not

mainstayinvestments.com    25

Notes to Financial Statements (unaudited) (continued)

assessed on shares acquired through the reinvestment of dividends or distributions paid by the Fund. The redemption fees are included in the Statement of Changes in Net Assets’ shares redeemed amount and were retained by the Fund for the fiscal year ended October 31, 2010.

(K) Concentration of Risk. The Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic instruments. These risks include those resulting from currency fluctuations, future adverse political and economic developments and possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. These risks are likely to be greater in emerging markets than in developed markets. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific country, industry or region.

(L) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. Epoch Investment Partners, Inc. (“Epoch” or “Subadvisor”), a registered investment adviser, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of 1.10% of the Fund’s average daily net assets. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 1.10% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses for Class A and Class I shares do not exceed the following percentages of average daily net assets: Class A, 1.75% and Class I, 1.50%. New York Life Investments will apply an equivalent waiver or reimbursement, in an amount equal to the number of basis points waived for Class A shares, to Investor Class and Class C shares of the Fund. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

For the period November 14, 2009 through February 28, 2011, New York Life Investments had entered into a written expense limitation agreement under which it agreed to reimburse Class A and Class I shares of the Fund so that the total ordinary operating expenses for Class A and Class I shares did not exceed the following percentages of average daily net assets, Class A, 1.89% and Class I, 1.65%. New York Life Investments applied an equivalent waiver or reimbursement, in an amount equal to the number of basis points waived for Class A shares, to Investor Class and Class C shares of the Fund.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $1,147,546.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from applicable Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class C Plans, applicable Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $1,341 and $2,886, respectively, for the six-

26    MainStay Epoch International Small Cap Fund

month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Class C shares of $68 for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	564
Class A		7,249
Class C		1,839
Class I		196,600

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Investor Class	$	33,570	4.1	%
Class C		33,208	1.5

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $2,743. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Income Tax

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $107,858,260 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss	Capital Loss
Available Through	Amounts (000’s)
2016	$	41,095
2017		66,763
Total	$	107,858

Note 5–Foreign Currency Transactions

As of April 30, 2011, the Fund held the following foreign currencies:

	Currency		Cost		Value
Australian Dollar	AUD	41,539	USD	43,425	USD	45,531
Brazilian Real	BRL	136,295		86,468		86,636
Canadian Dollar	CAD	1,709		1,787		1,806
Euro	EUR	126,443		187,282		187,281
Hong Kong Dollar	HKD	256,442		33,020		33,020
Japanese Yen	JPY	11,507,505		140,584		141,866
New Taiwan Dollar	TWD	16,677,644		576,117		582,350
Norwegian Krone	NOK	21,178		3,888		4,037
Pound Sterling	GBP	348,758		567,111		582,548
South Korean Won	KRW	6,590,873		6,078		6,150
Swedish Krona	SEK	48		8		8
Swiss Franc	CHF	10,335		11,630		11,948
Total			USD	1,657,398	USD	1,683,181

mainstayinvestments.com    27

Notes to Financial Statements (unaudited) (continued)

Note 6–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 7–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 8–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $111,551 and $72,969, respectively.

Note 9–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		24,508		$	480,915
Shares issued to shareholders in reinvestment of dividends		548			10,564
Shares redeemed		(1,675	)		(33,669	)
Net increase (decrease) in shares outstanding before conversion		23,381			457,810
Shares converted into Investor Class (See Note 1)		1,321			26,019
Shares converted from Investor Class (See Note 1)		(2,250	)		(43,531	)
Net increase (decrease)		22,452		$	440,298
Ten-month period ended October 31, 2010:
Shares sold		13,339		$	215,984
Shares redeemed		(468	)		(7,323	)
Net increase (decrease) in shares outstanding before conversion		12,871			208,661
Shares converted into Investor Class (See Note 1)		2,046			34,741
Shares converted from Investor Class (See Note 1)		(927	)		(16,242	)
Net increase (decrease)		13,990		$	227,160
Period ended December 31, 2009 (a):
Shares sold		2,315		$	36,932
Shares redeemed		(323	)		(5,029	)
Net increase (decrease)		1,992		$	31,903
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		269,091		$	5,320,999
Shares issued to shareholders in reinvestment of dividends		6,720			129,495
Shares redeemed		(78,891	)		(1,562,953	)
Net increase (decrease) in shares outstanding before conversion		196,920			3,887,541
Shares converted into Class A (See Note 1)		2,248			43,531
Shares converted from Class A (See Note 1)		(1,319	)		(26,019	)
Net increase (decrease)		197,849		$	3,905,053
Ten-month period ended October 31, 2010:
Shares sold		161,069		$	2,637,725
Shares redeemed		(60,905	)		(981,161	)
Net increase (decrease) in shares outstanding before conversion		100,164			1,656,564
Shares converted into Class A (See Note 1)		928			16,242
Shares converted from Class A (See Note 1)		(2,047	)		(34,741	)
Net increase (decrease)		99,045		$	1,638,065
Year ended December 31, 2009:
Shares sold		96,215		$	1,346,882
Shares redeemed		(22,168	)		(300,828	)
Net increase (decrease)		74,047		$	1,046,054

28    MainStay Epoch International Small Cap Fund

Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		23,199		$	454,581
Shares issued to shareholders in reinvestment of dividends		1,687			32,362
Shares redeemed		(943	)		(18,704	)
Net increase (decrease)		23,943		$	468,239
Ten-month period ended October 31, 2010:
Shares sold		76,775		$	1,234,848
Net increase (decrease)		76,775		$	1,234,848
Period ended October 31, 2009 (a):
Shares sold		1,553		$	25,019
Net increase (decrease)		1,553		$	25,019
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		3,313,391		$	68,531,177
Shares issued to shareholders in reinvestment of dividends		222,933			4,418,533
Shares redeemed		(1,348,444	)		(27,458,800	)
Net increase (decrease)		2,187,880		$	45,490,910
Ten-month period ended October 31, 2010:
Shares sold		2,105,632		$	34,597,236
Shares redeemed		(3,254,522	)		(53,922,346	)
Net increase (decrease)		(1,148,890	)	$	(19,325,110	)
Year ended December 31, 2009:
Shares sold		6,676,243		$	78,240,005
Shares redeemed		(9,749,184	)		(114,775,018	)
Net increase (decrease)		(3,072,941	)	$	(36,535,013	)

(a)  Investor Class shares and Class C shares were first offered on November 16, 2009.

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

mainstayinvestments.com    29

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Epoch International Small Cap Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and Epoch Investment Partners, Inc. (“Epoch”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and Epoch as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and Epoch in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and Epoch at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and Epoch on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates and Epoch as subadvisor to the Fund, and responses from New York Life Investments and Epoch to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the investment performance of the Fund, New York Life Investments and Epoch; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates and by Epoch as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and Epoch

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing Epoch’s compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same

30    MainStay Epoch International Small Cap Fund

class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

The Board also examined the nature, extent and quality of the services that Epoch provides to the Fund. The Board evaluated Epoch’s experience in serving as subadvisor to the Fund and managing other portfolios. It examined Epoch’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at Epoch, and Epoch’s overall legal and compliance environment. The Board also reviewed Epoch’s willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and Epoch’s experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Invest-
ment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior mana-
gement at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and Epoch to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and Epoch

The Board considered the costs of the services provided by New York Life Investments and Epoch under the Agreements, and the profits realized by New York Life Investments, its affiliates and Epoch due to their relationships with the Fund.

In evaluating any costs and profits of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and Epoch must be in a position to pay and retain experienced professional personnel to provide services to the Fund and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board considered representations from Epoch and New York Life Investments that the subadvisory fee paid by New York Life Investments to Epoch for services provided to the Fund was the result of arm’s-length negotiations. Because Epoch is not affiliated with New York Life Investments, and Epoch’s fees are paid directly by New York Life Investments, the Board focused primarily on the profitability of the relationship between New York Life Investments and its affiliates and the Fund.

The Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board recognized, for example, the benefits to Epoch from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to Epoch in exchange for commissions paid by the Fund with respect to trades on the Fund’s portfolio securities. The Board also requested and received information from Epoch and New York Life Investments concerning other business

mainstayinvestments.com    31

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)

relationships between Epoch and its affiliates and New York Life Investments and its affiliates.

The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates and Epoch due to their relationships with the Fund supported the Board’s determination to approve the Agreements. With respect to Epoch, the Board concluded that any profits realized by Epoch due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and Epoch, and are based on subadvisory fees paid to Epoch by New York Life Investments, not the Fund.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to Epoch are paid by New York Life Investments, not the Fund. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses. The Board noted that New York Life Investments had proposed to modify the expense limitation agreement on the Fund’s share classes to increase the amount of New York Life Investments’ subsidization of class expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and Epoch on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and Epoch about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the

32    MainStay Epoch International Small Cap Fund

expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares and $500 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board approved New York Life Investments’ recommendation to modify the expense limitation agreement on the Fund’s share classes, and concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

mainstayinvestments.com    33

Proxy Voting Policies and
Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting records for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the Fund’s website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

34    MainStay Epoch International Small Cap Fund

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23127 MS136-11 MSEISC10-06/11
F4

MainStay Epoch U.S. All Cap Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	14
Notes to Financial Statements	20
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	26
Proxy Voting Policies and Procedures and Proxy Voting Record	30
Shareholder Reports and Quarterly Portfolio Disclosure	30

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

															Gross
															Expense
Class	Sales Charge		Six Months			One Year			Five Years			Ten Years			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		11	.45%		12	.04%		0	.47%		0	.28%		1	.69%
		Excluding sales charges		17	.94		18	.57		1	.61		0	.85		1	.69
Class A Shares4	Maximum 5.5% Initial Sales Charge	With sales charges		11	.73		12	.64		0	.74		0	.41		1	.19
		Excluding sales charges		18	.23		19	.20		1	.88		0	.98		1	.19
Class B Shares4	Maximum 5% CDSC	With sales charges		12	.58		12	.76		0	.47		0	.09		2	.44
	if Redeemed Within the First Six Years of Purchase	Excluding sales charges		17	.58		17	.76		0	.84		0	.09		2	.44
Class C Shares4	Maximum 1% CDSC	With sales charges		16	.56		16	.74		0	.84		0	.10		2	.44
	if Redeemed Within One Year of Purchase	Excluding sales charges		17	.56		17	.74		0	.84		0	.10		2	.44
Class I Shares	No Sales Charge			18	.35		19	.48		2	.30		1	.38		0	.94

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Performance figures for Class A, B and C shares, first offered on January 2, 2004, includes the historical performance of Class I shares through January 1, 2004, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class A, B and C shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
Russell 3000® Index5		17	.65%		18	.35%		3	.33%		3	.64%
Average Lipper Multi-Cap Core Fund6		16	.89		18	.00		2	.79		4	.10

5.

The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000® Index is the Fund’s broad-based securities market index for comparison purposes. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

6.

The average Lipper multi-cap core fund is representative of funds that, by portfolio practice, invest in a variety of market-capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time. Multi-cap core funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Epoch U.S. All Cap Fund

Cost in Dollars of a $1,000 Investment in MainStay Epoch U.S. All Cap Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,179.40	$	8.54	$	1,017.00	$	7.90
Class A Shares	$	1,000.00	$	1,182.30	$	6.28	$	1,019.00	$	5.81
Class B Shares	$	1,000.00	$	1,175.80	$	12.57	$	1,013.20	$	11.63
Class C Shares	$	1,000.00	$	1,175.60	$	12.57	$	1,013.20	$	11.63
Class I Shares	$	1,000.00	$	1,183.50	$	4.93	$	1,020.30	$	4.56

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.58% for Investor Class, 1.16% for Class A, 2.33% for Class B and Class C and 0.91% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Industry Composition as of April 30, 2011 (Unaudited)

Oil, Gas & Consumable Fuels	8.1	%
Health Care Providers & Services	7.6
Capital Markets	6.3
Software	6.0
Chemicals	5.7
Semiconductors & Semiconductor Equipment	4.2
Energy Equipment & Services	3.9
Pharmaceuticals	3.8
Aerospace & Defense	3.4
Computers & Peripherals	3.2
Machinery	3.2
Specialty Retail	3.1
IT Services	2.9
Insurance	2.6
Diversified Financial Services	2.4
Media	2.4
Gas Utilities	2.3
Auto Components	2.0
Distributors	1.9
Food Products	1.9
Commercial Services & Supplies	1.8
Life Sciences Tools & Services	1.8
Electronic Equipment & Instruments	1.7
Multi-Utilities	1.7
Household Durables	1.5
Building Products	1.4
Consumer Finance	1.4
Internet Software & Services	1.3
Road & Rail	1.3
Hotels, Restaurants & Leisure	1.2
Containers & Packaging	1.0
Textiles, Apparel & Luxury Goods	1.0
Commercial Banks	0.9
Real Estate Investment Trusts	0.9
Diversified Consumer Services	0.7
Short-Term Investment	3.2
Other Assets, Less Liabilities	0.3
	100.0	%

See Portfolio of Investments beginning on page 11 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	ExxonMobil Corp.
2.	Microsoft Corp.
3.	Praxair, Inc.
4.	MetLife, Inc.
5.	Devon Energy Corp.
6.	Laboratory Corp. of America Holdings
7.	Ameriprise Financial, Inc.
8.	Comcast Corp. Class A
9.	NYSE Euronext
10.	ONEOK, Inc.

8    MainStay Epoch U.S. All Cap Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers David Pearl, Michael Welhoelter, CFA, and William Priest, CFA, of Epoch Investment Partners, Inc., the Fund’s Subadvisor.

How did MainStay Epoch U.S. All Cap Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Epoch U.S. All Cap Fund returned 17.94% for Investor Class shares, 18.23% for Class A shares, 17.58% for Class B shares and 17.56% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 18.35%. All share classes out-performed the 16.89% return of the average Lipper¹ multi-cap core fund for the same period. Investor Class, Class A and Class I shares outperformed—and Class B and Class C shares underperformed—the 17.65% return of the Russell 3000^® Index² for the six months ended April 30, 2011. The Russell 3000^® Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The market overcame political unrest in the Middle East, con-cerns about European debt refinancings and natural disasters in Japan to produce strong returns for the six-month reporting period. The very low interest-rate environment encouraged and supported speculation. In the equity market, this translated into stronger performance among securities with higher risk. Lower-quality stocks performed much better than stocks of large, well-capitalized firms. Equity markets rose in response to the supportive monetary policy environment expressed through the Federal Reserve’s second round of quantitative easing. (Quantitative easing is the direct purchase of securities by the Federal Reserve.) Improving employment data in the United States, better-than-expected corporate earnings reports and a modest pickup in merger and acquisition activity also helped the market.

During the reporting period, the Fund produced strong absolute returns, and some share classes outperformed the Russell 3000^® Index while other share classes underperformed the benchmark. Security selection was the main driver of the Fund’s performance relative to the Russell 3000^® Index. Sector allocation had a modestly positive effect on the Fund’s relative per-formance as well.

During the reporting period, which sectors were the strongest contributors to the Fund’s relative perfor-mance and which sectors were particularly weak?

During the reporting period, the strongest sector contribution to the Fund’s relative performance came from consumer staples, where performance was driven by strong stock selection and an underweight position relative to the Russell 3000^® Index. (Contributions take weightings and total returns into account.) Consumer discretionary and utilities made the next-strongest contributions to the Fund’s relative performance. Strong stock selection also drove performance in those sectors.

During the reporting period, the sector that made the weakest contribution to the Fund’s relative performance was information technology where the Fund’s holdings did not keep pace with those of the benchmark. The Fund’s cash position, despite averaging only 3.7% of net assets during the reporting period, made the second-weakest contribution to the Fund’s relative performance in light of the 17.65% return of the Russell 3000^® Index. The third-weakest contribution came from industrials, where an underweight position relative to the Russell 3000^® Index and a lack of exposure to companies in this sector whose performance correlates with commodity prices hurt the Fund’s performance.

During the reporting period, which individual stocks made the strongest contributions to the Fund’s absolute performance and which stocks detracted the most?

On an absolute basis, the largest contributions to the Fund’s performance came from integrated energy company ExxonMobil, international oil & gas exploration & production company Occidental Petroleum and diversified energy company ONEOK.

ExxonMobil is the largest integrated energy company with the lowest exploration and development costs. The company gen-erates significant free cash flow, which it has been returning to shareholders through increased dividends and a significant share-repurchase program. ExxonMobil’s acquisition of oil and natural gas company XTO Energy, which was initially met with skepticism, has gone well. We believe that the pace of share repurchases will soon reduce the share count to levels preceding the merger. Additionally, ExxonMobil has benefited from the increasing price of oil.

Occidental Petroleum also benefited from higher oil prices. We believe that Occidental Petroleum is a well-managed and returns-focused company with superior growth prospects. ONEOK is a leader in the gathering, processing, storage and transportation of natural gas and natural gas liquids and is among the largest natural gas distributors in the United States. The company has benefited from rising energy prices and smart capital expenditures, and we believe its expanded capacity is beginning to pay off.

During the reporting period, bank holding company Hudson City Bancorp, developer, manufacturer and seller of silicon wafers for the semiconductor industry MEMC Electronic Materials and semiconductor company Varian Semiconductor Equipment made the weakest contributions to the Fund’s absolute performance.

We felt that Hudson City Bancorp’s need for a balance sheet restructuring would lead to a dividend cut and ultimately to lowered earnings power. As a result, we chose to exit the position when the company announced the restructuring.

MEMC Electronic Materials’ wafers are used as the starting material for the manufacture of various types of semiconductor

 
 1. See footnote on page 6 for more information on Lipper Inc.
2. See footnote on page 6 for more information on the Russell 3000^® Index.

mainstayinvestments.com    9

devices. With a large exposure to the solar energy sector, the company was negatively affected by concerns that spending and tax breaks for solar installations will be cut. We continue to believe that the company is well run and has differentiated products, and the Fund continues to hold the position.

Varian Semiconductor Equipment’s stock price suffered during the reporting period, as concern over weakening demand for semiconductors began to emerge. We believe that Varian is a well-run company with differentiated products that have significant performance advantages over their competitors, thus allowing for better pricing power. In our opinion, Varian Semiconductor Equipment has also been a good steward of capital; and since 2006, the company has bought back over 10% of its shares outstanding. The company is entering the solar business with what promises to be game-changing technology. The Fund continues to hold the stock.

Did the Fund make any significant purchases or sales during the reporting period?

Among the stocks that the Fund purchased during the reporting period were financial services company PNC Financial Services and automotive parts manufacturer Dana Holding.

While the Fund has been focused on nonbank financials, we are starting to see an improvement in U.S. credit metrics and have begun to very selectively increase exposure to the credit markets. PNC Financial Services is a well-run, well-capitalized bank that we believe is poised to generate substantial excess capital over the next two years. With a diverse business model, the company offers exposure to an uptick in commercial and industrial lending.

Dana Holding is positioned to benefit from the rebound in U.S. new vehicle sales. It offers exposure to a recovery in U.S. vehicle sales, global light-vehicle growth, a substantial increase in North American commercial-vehicle production and ongoing growth in global agricultural and construction equipment.

Among the stocks that the Fund sold during the reporting period were oil services company Weatherford, Bermuda-based reinsurance and insurance underwriter Everest Re Group Ltd. and Hudson City Bancorp.

We sold the Fund’s position in Weatherford during the reporting period because the company had reached our price objective and we felt the stock had begun to fully discount the expected improvement in the international demand for oilfield services. We chose to exit the Fund’s position in Everest Re Group based on valuation and our belief that better risk-return opportunities could be found elsewhere. We chose to exit Hudson City Bancorp when the company announced a restructuring of its balance sheet.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, the Fund’s weightings relative
to the Russell 3000^® Index did not change significantly. The Fund’s energy exposure decreased, moving from an over-weight position to a weighting that was similar to that of the benchmark. The Fund’s exposure to the financials sector increased during the reporting period, moving from a benchmark-neutral position to a modestly overweight position. The addition of two holdings in the materials sector increased the Fund’s overweight position.

How was the Fund positioned at the end of April 2011?

As of April 30, 2011, the Fund’s most substantially overweight sectors relative to the Russell 3000^® Index were consumer discretionary, materials and health care. As of the same date, the Fund’s most substantially underweight sectors relative to the Russell 3000^® Index were consumer staples and telecommunication services.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay Epoch U.S. All Cap Fund

Portfolio of Investments April 30, 2011 (unaudited)

	Shares		Value
Common Stocks 96.5%†
Aerospace & Defense 3.4%
Boeing Co. (The)		173,250	$	13,821,885
Rockwell Collins, Inc.		153,800		9,704,780
				23,526,665
Auto Components 2.0%
Dana Holding Corp. (a)		376,700		6,844,639
Visteon Corp. (a)		106,650		7,191,409
				14,036,048
Building Products 1.4%
Masco Corp.		715,300		9,599,326
Capital Markets 6.3%
X  Ameriprise Financial, Inc.		270,450		16,784,127
Franklin Resources, Inc.		124,600		16,088,352
TD Ameritrade Holding Corp.		544,050		11,718,837
				44,591,316
Chemicals 5.7%
E.I. du Pont de Nemours & Co.		252,350		14,330,956
Nalco Holding Co.		224,457		6,556,389
X  Praxair, Inc.		180,350		19,192,847
				40,080,192
Commercial Banks 0.9%
PNC Financial Services Group, Inc.		104,450		6,511,413
Commercial Services & Supplies 1.8%
Waste Management, Inc.		321,650		12,692,309
Computers & Peripherals 3.2%
Apple, Inc. (a)		37,100		12,919,333
Dell, Inc. (a)		624,850		9,691,423
				22,610,756
Consumer Finance 1.4%
American Express Co.		194,850		9,563,238
Containers & Packaging 1.0%
Rock-Tenn Co. Class A		98,550		6,806,849
Distributors 1.9%
Genuine Parts Co.		250,400		13,446,480
Diversified Consumer Services 0.7%
Service Corp. International		434,200		5,110,534
Diversified Financial Services 2.4%
X  NYSE Euronext		413,300		16,552,665
Electronic Equipment & Instruments 1.7%
Corning, Inc.		585,810		12,266,861
Energy Equipment & Services 3.9%
Cameron International Corp. (a)		189,933		10,013,268
Dril-Quip, Inc. (a)		54,300		4,157,208
National-Oilwell Varco, Inc.		169,300		12,983,617
				27,154,093
Food Products 1.9%
Corn Products International, Inc.		244,250		13,458,175
Gas Utilities 2.3%
X  ONEOK, Inc.		232,950		16,292,523
Health Care Providers & Services 7.6%
Aetna, Inc.		290,700		12,029,166
DaVita, Inc. (a)		138,350		12,187,251
X  Laboratory Corp. of America Holdings (a)		180,100		17,374,247
UnitedHealth Group, Inc.		245,000		12,061,350
				53,652,014
Hotels, Restaurants & Leisure 1.2%
International Game Technology		483,100		8,546,039
Household Durables 1.5%
Tupperware Brands Corp.		169,366		10,783,533
Insurance 2.6%
X  MetLife, Inc.		395,366		18,499,175
Internet Software & Services 1.3%
Yahoo!, Inc. (a)		501,750		8,906,063
IT Services 2.9%
Computer Sciences Corp.		121,900		6,214,462
Visa, Inc. Class A		184,800		14,436,576
				20,651,038
Life Sciences Tools & Services 1.8%
Thermo Fisher Scientific, Inc. (a)		215,750		12,942,843

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of Investments April 30, 2011 (unaudited) (continued)

	Shares			Value
Machinery 3.2%
Ingersoll-Rand PLC		193,600		$	9,776,800
Wabtec Corp.		179,132			12,786,442
					22,563,242
Media 2.4%
X  Comcast Corp. Class A		677,850			16,641,217
Multi-Utilities 1.7%
Wisconsin Energy Corp.		373,500			11,656,935
Oil, Gas & Consumable Fuels 8.1%
X  Devon Energy Corp.		198,800			18,090,800
X  ExxonMobil Corp.		265,850			23,394,800
Occidental Petroleum Corp.		134,857			15,412,807
					56,898,407
Pharmaceuticals 3.8%
Abbott Laboratories		203,450			10,587,538
Endo Pharmaceuticals Holdings, Inc. (a)		407,900			15,973,364
					26,560,902
Real Estate Investment Trusts 0.9%
Ventas, Inc.		116,250			6,501,863
Road & Rail 1.3%
Con-Way, Inc.		233,200			9,076,144
Semiconductors & Semiconductor Equipment 4.2%
MEMC Electronic Materials, Inc. (a)		646,500			7,648,095
Texas Instruments, Inc.		438,148			15,567,398
Varian Semiconductor Equipment Associates, Inc. (a)		148,350			6,220,316
					29,435,809
Software 6.0%
Electronic Arts, Inc. (a)		286,000			5,771,480
X  Microsoft Corp.		803,000			20,894,060
Oracle Corp.		425,100			15,324,855
					41,990,395
Specialty Retail 3.1%
Staples, Inc.		495,600			10,476,984
TJX Cos., Inc.		208,350			11,171,727
					21,648,711
Textiles, Apparel & Luxury Goods 1.0%
Warnaco Group, Inc. (The) (a)		110,250			7,095,690
Total Common Stocks (Cost $526,486,699)					678,349,463
	Principal
	Amount
Short-Term Investment 3.2%
Repurchase Agreement 3.2%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $22,940,731 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11 with a Principal Amount of $23,400,000 and a Market Value of $23,399,873)	$	22,940,712		$	22,940,712
Total Short-Term Investment (Cost $22,940,712)					22,940,712
Total Investments (Cost $549,427,411) (b)		99.7	%		701,290,175
Other Assets, Less Liabilities		0.3			1,863,719
Net Assets		100.0	%	$	703,153,894

(a)	Non-income producing security.
(b)	At April 30, 2011, cost is $549,699,648 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	155,008,446
Gross unrealized depreciation		(3,417,919	)
Net unrealized appreciation	$	151,590,527

12    MainStay Epoch U.S. All Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	678,349,463	$	—	$	—	$	678,349,463
Short-Term Investment
Repurchase Agreement		—		22,940,712		—		22,940,712
Total Investments in Securities	$	678,349,463	$	22,940,712	$	—	$	701,290,175

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $549,427,411)	$	701,290,175
Receivables:
Investment securities sold		1,415,520
Fund shares sold		586,162
Dividends and interest		452,625
Other assets		61,726
Total assets		703,806,208
Liabilities
Payables:
Manager (See Note 3)		471,847
Fund shares redeemed		55,974
Professional fees		52,821
Shareholder communication		30,701
Transfer agent (See Note 3)		25,317
NYLIFE Distributors (See Note 3)		13,863
Trustees		950
Custodian		841
Total liabilities		652,314
Net assets	$	703,153,894
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	26,951
Additional paid-in capital		543,998,074
		544,025,025
Undistributed net investment income		541,691
Accumulated net realized gain (loss) on investments		6,724,414
Net unrealized appreciation (depreciation) on investments		151,862,764
Net assets	$	703,153,894
Investor Class
Net assets applicable to outstanding shares	$	8,540,690
Shares of beneficial interest outstanding		349,104
Net asset value per share outstanding	$	24.46
Maximum sales charge (5.50% of offering price)		1.42
Maximum offering price per share outstanding	$	25.88
Class A
Net assets applicable to outstanding shares	$	13,481,187
Shares of beneficial interest outstanding		546,078
Net asset value per share outstanding	$	24.69
Maximum sales charge (5.50% of offering price)		1.44
Maximum offering price per share outstanding	$	26.13
Class B
Net assets applicable to outstanding shares	$	7,406,455
Shares of beneficial interest outstanding		320,954
Net asset value and offering price per share outstanding	$	23.08
Class C
Net assets applicable to outstanding shares	$	4,444,853
Shares of beneficial interest outstanding		192,458
Net asset value and offering price per share outstanding	$	23.10
Class I
Net assets applicable to outstanding shares	$	669,280,709
Shares of beneficial interest outstanding		25,542,574
Net asset value and offering price per share outstanding	$	26.20

14    MainStay Epoch U.S. All Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends	$	4,715,395
Interest		1,214
Total income		4,716,609
Expenses
Manager (See Note 3)		2,668,020
Distribution/Service—Investor Class (See Note 3)		9,602
Distribution/Service—Class A (See Note 3)		14,285
Distribution/Service—Class B (See Note 3)		33,805
Distribution/Service—Class C (See Note 3)		20,931
Transfer agent (See Note 3)		67,139
Professional fees		60,186
Registration		48,984
Shareholder communication		33,087
Trustees		8,866
Custodian		7,868
Miscellaneous		11,966
Total expenses		2,984,739
Net investment income (loss)		1,731,870
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		11,611,089
Net change in unrealized appreciation (depreciation) on investments		93,248,885
Net realized and unrealized gain (loss) on investments		104,859,974
Net increase (decrease) in net assets resulting from operations	$	106,591,844

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,731,870		$	2,258,534
Net realized gain (loss) on investments		11,611,089			18,742,961
Net change in unrealized appreciation (depreciation) on investments		93,248,885			40,617,929
Net increase (decrease) in net assets resulting from operations		106,591,844			61,619,424
Dividends to shareholders:
From net investment income:
Investor Class		—			(6,765	)
Class A		(23,610	)		(39,351	)
Class B		—			(7,024	)
Class C		—			(3,879	)
Class I		(2,706,237	)		(1,225,428	)
Total dividends to shareholders		(2,729,847	)		(1,282,447	)
Capital share transactions:
Net proceeds from sale of shares		116,141,985			321,911,388
Net asset value of shares issued to shareholders in reinvestment of dividends		2,664,958			1,247,383
Cost of shares redeemed		(57,085,754	)		(71,515,940	)
Increase (decrease) in net assets derived from capital share transactions		61,721,189			251,642,831
Net increase (decrease) in net assets		165,583,186			311,979,808
Net Assets
Beginning of period		537,570,708			225,590,900
End of period	$	703,153,894		$	537,570,708
Undistributed net investment income at end of period	$	541,691		$	1,539,668

16    MainStay Epoch U.S. All Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February
	Six months									28, 2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	20.74		$	17.66		$	15.40		$	23.34
Net investment income (loss) (a)		(0.01	)		(0.01	)		(0.05	)		(0.13	)
Net realized and unrealized gain (loss) on investments		3.73			3.11			2.31			(7.81	)
Total from investment operations		3.72			3.10			2.26			(7.94	)
Less dividends:
From net investment income		—			(0.02	)		—			—
Net asset value at end of period	$	24.46		$	20.74		$	17.66		$	15.40
Total investment return (b)		17.94	% (c)		17.56	%		14.68	% (d)		(34.02	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.07	%)††		(0.04	%)		(0.29	%)		(0.88	%)††
Net expenses		1.58	% ††		1.69	%		1.67	%		1.64	% ††
Expenses (before waiver/reimbursement)		1.58	% ††		1.69	%		1.96	%		1.66	% ††
Portfolio turnover rate		16	%		41	%		135	%		56	%
Net assets at end of period (in 000’s)	$	8,541		$	7,238		$	6,384		$	5,460

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	20.93		$	17.76		$	15.42		$	28.85		$	23.86		$	21.84
Net investment income (loss) (a)		0.04			0.09			0.02			(0.14	)		(0.21	)		(0.21	)
Net realized and unrealized gain (loss) on investments		3.77			3.13			2.32			(11.05	)		5.20			2.23
Total from investment operations		3.81			3.22			2.34			(11.19	)		4.99			2.02
Less dividends and distributions:
From net investment income		(0.05	)		(0.05	)		—			—			—			—
From net realized gain on investments		—			—			—			(2.24	)		—			—
Total dividends and distributions		(0.05	)		(0.05	)		—			(2.24	)		—			—
Net asset value at end of period	$	24.69		$	20.93		$	17.76		$	15.42		$	28.85		$	23.86
Total investment return (b)		18.23	%(c)		18.15	%		15.18	%(d)		(41.88	%)		20.91	%		9.25	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.33	% ††		0.48	%		0.13	%		(0.59	%)		(0.79	%)		(0.89	%)
Net expenses		1.16	% ††		1.19	%		1.26	%		1.39	%		1.55	%		1.50	%
Expenses (before waiver/reimbursement)		1.16	% ††		1.19	%		1.34	%		1.40	%		1.53	%(e)		1.54	%
Portfolio turnover rate		16	%		41	%		135	%		56	%		37	%		46	%
Net assets at end of period (in 000’s)	$	13,481		$	9,749		$	14,006		$	12,771		$	32,894		$	28,170

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.
(e)	Due to expense cap structure change, Class A, B and C were able to recoup expenses during year ended October 31, 2007.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class B
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	19.63		$	16.84		$	14.80		$	28.03		$	23.36		$	21.54
Net investment income (loss) (a)		(0.09	)		(0.14	)		(0.15	)		(0.34	)		(0.39	)		(0.37	)
Net realized and unrealized gain (loss) on investments		3.54			2.95			2.19			(10.65	)		5.06			2.19
Total from investment operations		3.45			2.81			2.04			(10.99	)		4.67			1.82
Less dividends and distributions:
From net investment income		—			(0.02	)		—			—			—			—
From net realized gain on investments		—			—			—			(2.24	)		—			—
Total dividends and distributions		—			(0.02	)		—			(2.24	)		—			—
Net asset value at end of period	$	23.08		$	19.63		$	16.84		$	14.80		$	28.03		$	23.36
Total investment return (b)		17.58	% (c)		16.69	%		13.78	% (d)		(42.43	%)		19.99	%		8.45	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.82	%)††		(0.77	%)		(1.04	%)		(1.55	%)		(1.54	%)		(1.63	%)
Net expenses		2.33	% ††		2.44	%		2.42	%		2.34	%		2.30	%		2.25	%
Expenses (before waiver/reimbursement)		2.33	% ††		2.44	%		2.71	%		2.35	%		2.28	% (e)		2.29	%
Portfolio turnover rate		16	%		41	%		135	%		56	%		37	%		46	%
Net assets at end of period (in 000’s)	$	7,406		$	6,362		$	6,383		$	6,191		$	11,925		$	10,770

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.
(e)	Due to expense cap structure change, Class A, B and C were able to recoup expenses during year ended October 31, 2007.

	Class C
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	19.65		$	16.86		$	14.82		$	28.06		$	23.38		$	21.56
Net investment income (loss) (a)		(0.09	)		(0.14	)		(0.15	)		(0.34	)		(0.39	)		(0.37	)
Net realized and unrealized gain (loss) on investments		3.54			2.95			2.19			(10.66	)		5.07			2.19
Total from investment operations		3.45			2.81			2.04			(11.00	)		4.68			1.82
Less dividends and distributions:
From net investment income		—			(0.02	)		—			—			—			—
From net realized gain on investments		—			—			—			(2.24	)		—			—
Total dividends and distributions		—			(0.02	)		—			(2.24	)		—			—
Net asset value at end of period	$	23.10		$	19.65		$	16.86		$	14.82		$	28.06		$	23.38
Total investment return (b)		17.56	% (c)		16.67	%		13.77	% (d)		(42.42	%)		20.02	%		8.44	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.82	%)††		(0.79	%)		(1.03	%)		(1.55	%)		(1.55	%)		(1.64	%)
Net expenses		2.33	% ††		2.44	%		2.42	%		2.34	%		2.30	%		2.25	%
Expenses (before waiver/reimbursement)		2.33	% ††		2.44	%		2.71	%		2.35	%		2.28	% (e)		2.29	%
Portfolio turnover rate		16	%		41	%		135	%		56	%		37	%		46	%
Net assets at end of period (in 000’s)	$	4,445		$	3,959		$	3,514		$	4,004		$	7,396		$	4,820

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.
(e)	Due to expense cap structure change, Class A, B and C were able to recoup expenses during year ended October 31, 2007.

18    MainStay Epoch U.S. All Cap Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	22.24		$	18.87		$	16.33		$	30.28		$	24.90		$	22.66
Net investment income (loss) (a)		0.07			0.13			0.07			(0.03	)		(0.05	)		(0.08	)
Net realized and unrealized gain (loss) on investments		4.00			3.34			2.47			(11.68	)		5.43			2.32
Total from investment operations		4.07			3.47			2.54			(11.71	)		5.38			2.24
Less dividends and distributions:
From net investment income		(0.11	)		(0.10	)		—			—			—			—
From net realized gain on investments		—			—			—			(2.24	)		—			—
Total dividends and distributions		(0.11	)		(0.10	)		—			(2.24	)		—			—
Net asset value at end of period	$	26.20		$	22.24		$	18.87		$	16.33		$	30.28		$	24.90
Total investment return (b)		18.35	%(c)		18.42	%		15.55	%(d)		(41.60	%)		21.61	%		9.89	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.59	%††		0.62	%		0.42	%		(0.14	%)		(0.18	%)		(0.31	%)
Net expenses		0.91	%††		0.94	%		0.95	%		0.93	%		0.93	%		0.93	%
Expenses (before reimbursement/waiver)		0.91	%††		0.94	%		1.09	%		0.97	%		0.95	%		0.97	%
Portfolio turnover rate		16	%		41	%		135	%		56	%		37	%		46	%
Net assets at end of period (in 000’s)	$	669,281		$	510,263		$	195,303		$	157,222		$	297,744		$	263,102

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Epoch U.S. All Cap Fund (the “Fund”), a diversified fund. The Fund is the successor of the MainStay Epoch U.S. All Cap Fund, a series of Eclipse Funds Inc. (the “Predecessor Fund”). The reorganization of the Predecessor Fund with and into the Fund occurred on February 26, 2010. All information and references to periods prior to February 26, 2010 relate to the Predecessor Fund.

The Fund currently offers five classes of shares. Class I shares commenced operations on January 2, 1991. Class A shares, Class B shares and Class C shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class B shares and Class C shares are offered at NAV without an initial sales charge, although a declining CDSC may be imposed on redemptions made within six years of purchase of Class B shares and a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Class B shares convert to either Investor Class or Class A shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek long-term capital appreciation.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

20    MainStay Epoch U.S. All Cap Fund

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Options contracts are valued at the last posted settlement price on the market where such options are principally traded. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

Certain events may occur between the time that foreign markets close, on which securities held by the Fund principally trade, and the time at which the Fund’s NAV is calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisor conclude that such events may have affected the accuracy of the last price reported on the local foreign market, the Manager or Subadvisor may, pursuant to procedures adopted by the Fund’s Board, adjust the value of the local price to reflect the impact on the price of such securities as a result of such events. In this instance, securities are generally categorized as Level 3 in the hierarchy. Additionally, foreign equity securities are also fair valued whenever the movement of a particular index exceeds certain thresholds. In such cases, the securities are fair valued by applying factors provided by a third party vendor in accordance with the Fund’s policies and procedures and are generally categorized as Level 2 in the hierarchy. At April 30, 2011, foreign equity securities held by the Fund were not fair valued.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the

mainstayinvestments.com    21

Notes to Financial Statements (unaudited) (continued)

expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(I) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. Epoch Investment Partners, Inc. (“Epoch” or “Subadvisor”), a registered investment adviser, is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.85% up to $500 million, 0.825% from $500 million to $1 billion and 0.80% in excess of $1 billion. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.85% for the six-month period ended April 30, 2011.

The Manager had contractually agreed to waive a portion of the management fee or reimburse expenses of the appropriate class of the Fund so that Total Annual Fund Operating Expenses of a class did not exceed the following percentages of average daily net assets: Investor Class, 1.85%; Class B, 2.60%; Class C, 2.60% and Class I, 1.00%. This agreement expired on February 28, 2011. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $2,668,020.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in

22    MainStay Epoch U.S. All Cap Fund

conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from the Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and Class C shares of the Fund pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Fund’s Class B and Class C shares along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class B and Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $3,280 and $3,049, respectively, for the six-month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Class B and Class C shares of $45, $5,164 and $118, respectively, for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	16,563
Class A		496
Class B		14,577
Class C		9,022
Class I		26,481

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Class A	$	1,419	0.0	%‡
Class B		1,326	0.0	‡
Class C		1,327	0.0	‡
Class I		159,460,926	23.8

‡  Less than one-tenth of a percent.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $8,627. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $4,614,438 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2017	$	4,614

The tax character of distributions paid during the year ended October 31, 2010, shown in the Statements of Changes in Net Assets, were as follows:

	2010
Distributions paid from:
Ordinary Income	$	1,282,447

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

mainstayinvestments.com    23

Notes to Financial Statements (unaudited) (continued)

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $153,184 and $98,086, respectively.

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		52,602		$	1,211,022
Shares redeemed		(42,284	)		(960,028	)
Net increase (decrease) in shares outstanding before conversion		10,318			250,994
Shares converted into Investor Class (See Note 1)		8,356			191,259
Shares converted from Investor Class (See Note 1)		(18,579	)		(417,918	)
Net increase (decrease)		95		$	24,335
Year ended October 31, 2010:
Shares sold		54,475		$	1,063,958
Shares issued to shareholders in reinvestment of dividends		351			6,740
Shares redeemed		(58,790	)		(1,124,327	)
Net increase (decrease) in shares outstanding before conversion		(3,964	)		(53,629	)
Shares converted into Investor Class (See Note 1)		15,772			301,797
Shares converted from Investor Class (See Note 1)		(24,325	)		(471,104	)
Net increase (decrease)		(12,517	)	$	(222,936	)
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		117,075		$	2,667,571
Shares issued to shareholders in reinvestment of dividends		960			21,054
Shares redeemed		(58,472	)		(1,326,272	)
Net increase (decrease) in shares outstanding before conversion		59,563			1,362,353
Shares converted into Class A (See Note 1)		22,725			514,282
Shares converted from Class A (See Note 1)		(2,023	)		(47,615	)
Net increase (decrease)		80,265		$	1,829,020
Year ended October 31, 2010:
Shares sold		170,827		$	3,314,377
Shares issued to shareholders in reinvestment of dividends		1,939			37,075
Shares redeemed		(527,210	)		(10,464,446	)
Net increase (decrease) in shares outstanding before conversion		(354,444	)		(7,112,994	)
Shares converted into Class A (See Note 1)		37,353			726,746
Shares converted from Class A (See Note 1)		(1,373	)		(27,300	)
Shares converted from Class A (a)		(4,282	)		(81,534	)
Net increase (decrease)		(322,746	)	$	(6,495,082	)
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		32,830		$	706,638
Shares redeemed		(24,645	)		(526,887	)
Net increase (decrease) in shares outstanding before conversion		8,185			179,751
Shares converted from Class B (See Note 1)		(11,265	)		(240,008	)
Net increase (decrease)		(3,080	)	$	(60,257	)
Year ended October 31, 2010:
Shares sold		41,262		$	764,994
Shares issued to shareholders in reinvestment of dividends		369			6,742
Shares redeemed		(67,468	)		(1,233,145	)
Net increase (decrease) in shares outstanding before conversion		(25,837	)		(461,409	)
Shares converted from Class B (See Note 1)		(29,101	)		(530,139	)
Net increase (decrease)		(54,938	)	$	(991,548	)
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		11,001		$	235,411
Shares redeemed		(20,034	)		(426,874	)
Net increase (decrease)		(9,033	)	$	(191,463	)
Year ended October 31, 2010:
Shares sold		16,979		$	317,126
Shares issued to shareholders in reinvestment of dividends		189			3,463
Shares redeemed		(24,079	)		(437,381	)
Net increase (decrease)		(6,911	)	$	(116,792	)

24    MainStay Epoch U.S. All Cap Fund

Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		4,693,853		$	111,321,343
Shares issued to shareholders in reinvestment of dividends		113,716			2,643,904
Shares redeemed		(2,209,917	)		(53,845,693	)
Net increase (decrease)		2,597,652		$	60,119,554
Year ended October 31, 2010:
Shares sold		15,392,314		$	316,450,933
Shares issued to shareholders in reinvestment of dividends		59,023			1,193,363
Shares redeemed		(2,861,310	)		(58,256,641	)
Net increase (decrease) in shares outstanding before conversion		12,590,027			259,387,655
Shares converted into Class I (a)		4,038			81,534
Net increase (decrease)		12,594,065		$	259,469,189

(a)  In addition to any automatic conversion features described above in Note 1 with respect to Investor Class, Class A and B shares, an investor generally may also elect to convert their shares on a voluntary basis into another share class of the same fund for which an investor is eligible. However, the following limitations apply:

•  Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and

•  All Class B and C shares are ineligible for a voluntary conversion.

These limitations do not impact any automatic conversion features described in Note 1 with respect to Investor Class, Class A and B shares.

An investor or an investor’s financial intermediary may contact the Fund to request a voluntary conversion between shares classes of the same Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will be made on the basis of the relevant NAVs of the two classes without the imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an investor may automatically be converted back to their original share class, or into another share class, if appropriate.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

mainstayinvestments.com    25

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Epoch U.S. All Cap Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and Epoch Investment Partners, Inc. (“Epoch”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and Epoch as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and Epoch in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and Epoch at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and Epoch on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates and Epoch as subadvisor to the Fund, and responses from New York Life Investments and Epoch to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the investment performance of the Fund, New York Life Investments and Epoch; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates and by Epoch as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and Epoch

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing Epoch’s compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same

26    MainStay Epoch U.S. All Cap Fund

class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

The Board also examined the nature, extent and quality of the services that Epoch provides to the Fund. The Board evaluated Epoch’s experience in serving as subadvisor to the Fund and managing other portfolios. It examined Epoch’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at Epoch, and Epoch’s overall legal and compliance environment. The Board also reviewed Epoch’s willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and Epoch’s experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and Epoch to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and Epoch

The Board considered the costs of the services provided by New York Life Investments and Epoch under the Agreements, and the profits realized by New York Life Investments, its affiliates and Epoch due to their relationships with the Fund.

In evaluating any costs and profits of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and Epoch must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board considered representations from Epoch and New York Life Investments that the subadvisory fee paid by New York Life Investments to Epoch for services provided to the Fund was the result of arm’s-length negotiations. Because Epoch is not affiliated with New York Life Investments, and Epoch’s fees are paid directly by New York Life Investments, the Board focused primarily on the profitability of the relationship between New York Life Investments and its affiliates and the Fund.

The Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board recognized, for example, the benefits to Epoch from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to Epoch in exchange for commissions paid by the Fund with respect to trades on the Fund’s portfolio securities. The Board also requested and received information from

mainstayinvestments.com    27

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)

Epoch and New York Life Investments concerning other business relationships between Epoch and its affiliates and New York Life Investments and its affiliates.

The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates and Epoch due to their relationships with the Fund supported the Board’s determination to approve the Agreements. With respect to Epoch, the Board concluded that any profits realized by Epoch due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and Epoch, and are based on subadvisory fees paid to Epoch by New York Life Investments, not the Fund.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to Epoch are paid by New York Life Investments, not the Fund. The Board also noted that New York Life Investments had not proposed to renew the Fund’s expense limitation agreement.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and Epoch on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and Epoch about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account;

28    MainStay Epoch U.S. All Cap Fund

(ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares and $500 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board approved New York Life Investments’ recommendation to not renew the Fund’s expense limitation agreement, and concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

mainstayinvestments.com    29

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; and (ii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the Fund’s website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

30    MainStay Epoch U.S. All Cap Fund

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23165 MS136-11 MSEUAC10-06/11

A1

MainStay Epoch U.S. Equity Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	13
Notes to Financial Statements	20
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	25
Proxy Voting Policies and Procedures and Proxy Voting Record	29
Shareholder Reports and Quarterly Portfolio Disclosure	29

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since
									Inception			Gross
									of Class			Expense
Class	Sales Charge		Six Months			One Year			(11/16/09)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		9	.83%		9	.91%		21	.67%		1	.43%
		Excluding sales charges		16	.22		16	.31		24	.56		1	.43

									Since
									Inception			Gross
									of Class			Expense
Class	Sales Charge		Six Months			One Year			(2/3/09)			Ratio2
Class A Shares4	Maximum 5.5% Initial Sales Charge	With sales charges		9	.86%		10	.11%		22	.19%		1	.37%
		Excluding sales charges		16	.26		16	.51		25	.32		1	.37

									Since
									Inception			Gross
									of Class			Expense
Class	Sales Charge		Six Months			One Year			(11/16/09)			Ratio2
Class C Shares3	Maximum 1% CDSC	With sales charges		14	.75%		14	.49%		23	.71%		2	.18%
	if Redeemed Within One Year of Purchase	Excluding sales charges		15	.75		15	.49		23	.71		2	.18

Since

Inception

Gross

of Class

Expense

Class

Sales Charge

Six Months

One Year

(12/3/08)

Ratio2

Class I Shares4

No Sales Charge

16

.39%

16

.82%

24

.99%

1

.12%

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class and Class C shares, first offered on November 16, 2009, includes the historical performance of Class I shares through November 15, 2009 adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class and Class C Shares might have been lower.
4.	Performance figures for Class I shares and Class A shares reflect the historical performance of the Institutional shares since December 3, 2008 and the Class P shares since February 3, 2009, respectively, of the Epoch U.S. Large Cap Equity Fund (the predecessor to the Fund), which was subject

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

							Since
				One			Inception
Benchmark Performance	Six Months			Year			of the Fund
Russell 1000® Index5		17	.12%		18	.02%		24	.87%
Russell 3000® Index6		17	.65		18	.35		25	.47
Average Lipper Multi-Cap Core Fund7		16	.89		18	.00		28	.70

to a different fee structure and for which Epoch Investment Partners, Inc. served as investment advisor for periods prior to November 16, 2009.

5.	The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000® Index represents approximately 92% of the total market capitalization of the Russell 3000® Index. The Fund has selected the Russell 1000® Index as its broad-based securities market index for comparison purposes. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.
6.	The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.
7.	The average Lipper multi-cap core fund is representative of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap core funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P Super Composite 1500 Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Epoch U.S. Equity Fund

Cost in Dollars of a $1,000 Investment in MainStay Epoch U.S. Equity Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,162.20	$	6.86	$	1,018.40	$	6.41
Class A Shares	$	1,000.00	$	1,162.60	$	6.65	$	1,018.60	$	6.21
Class C Shares	$	1,000.00	$	1,157.50	$	10.86	$	1,014.70	$	10.14
Class I Shares	$	1,000.00	$	1,163.90	$	5.31	$	1,019.90	$	4.96

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.28% for Investor Class, 1.24% for Class A, 2.03% for Class C and 0.99% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Industry Composition as of April 30, 2011 (Unaudited)

Health Care Providers & Services	8.5	%
Oil, Gas & Consumable Fuels	8.4
Software	7.3
Capital Markets	6.7
Insurance	5.2
Chemicals	4.9
Machinery	4.4
Aerospace & Defense	3.9
Media	3.8
Semiconductors & Semiconductor Equipment	3.8
IT Services	3.6
Specialty Retail	3.6
Energy Equipment & Services	3.4
Computers & Peripherals	3.3
Multi-Utilities	3.2
Life Sciences Tools & Services	2.4
Commercial Services & Supplies	2.2
Real Estate Investment Trusts	2.2
Diversified Financial Services	1.9
Pharmaceuticals	1.9
Electronic Equipment & Instruments	1.8
Commercial Banks	1.4
Consumer Finance	1.4
Multiline Retail	1.4
Internet Software & Services	1.3
Hotels, Restaurants & Leisure	1.2
Distributors	1.1
Diversified Telecommunication Services	1.0
Household Products	1.0
Paper & Forest Products	1.0
Short-Term Investment	2.6
Other Assets, Less Liabilities	0.2
	100.0	%

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	ExxonMobil Corp.
2.	Oracle Corp.
3.	Microsoft Corp.
4.	Comcast Corp. Class A
5.	Praxair, Inc.
6.	DaVita, Inc.
7.	Franklin Resources, Inc.
8.	Boeing Co. (The)
9.	Thermo Fisher Scientific, Inc.
10.	Ameriprise Financial, Inc.

8    MainStay Epoch U.S. Equity Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers David Pearl, Michael Welhoelter, CFA, and William Priest, CFA, of Epoch Investment Partners, Inc., the Fund’s Subadvisor.

How did MainStay Epoch U.S. Equity Fund perform relative to its peers and its benchmark for the six months ended April 30, 2011?

Excluding all sales charges, MainStay Epoch U.S. Equity Fund returned 16.22% for Investor Class shares, 16.26% for Class A shares and 15.75% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 16.39%. All share classes underperformed the 16.89% return of the average Lipper¹ multi-cap core fund and the 17.12% return of the Russell 1000^® Index² for the six months ended April 30, 2011. The Russell 1000^® Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The market overcame political unrest in the Middle East, concerns about European debt refinancings and natural disasters in Japan to produce strong returns for the six-month reporting period. The very low interest rate environment encouraged and supported speculation. In the equity market, this translated into stronger performance among securities with higher risk. Lower-quality stocks performed much better than stocks of large, well-capitalized firms. Equity markets rose in response to the supportive monetary policy environment expressed through the Federal Reserve’s second round of quantitative easing. (Quantitative easing is the direct purchase of securities by the Federal Reserve.) Improving employment data in the United States, better-than-expected corporate earnings reports and a modest pickup in merger and acquisition activity also helped the market.

During the reporting period, the Fund produced strong absolute returns but underperformed the Russell 1000^® Index. Security selection was strong during the reporting period. However, sector allocation had a modestly negative effect on the Fund’s relative performance.

During the reporting period, which sectors were the strongest contributors to the Fund’s relative perfor-mance and which sectors were particularly weak?

During the reporting period, the sector that made the strongest contribution to the Fund’s relative performance was health care, where performance was driven by strong stock selection. (Contributions take weightings and total returns into account.) The second-strongest sector contribution came from consumer staples, where a substantially underweight position relative to the Russell 1000^® Index was beneficial. The third-strongest contribution came from financials, where the Fund benefited from strong stock selection.

During the reporting period, the Fund’s cash position made the weakest contribution to the Fund’s relative performance. Despite averaging only 3.4% during the reporting period, the cash position was a drag on relative performance in light of the 17.12% return of the Russell 1000^® Index. Industrials and materials were both weak contributors. A lack of exposure to companies whose performance is correlated with commodity prices in both of these sectors detracted from the Fund’s relative performance.

During the reporting period, which individual stocks made the strongest contributions to the Fund’s absolute performance and which stocks detracted the most?

On an absolute basis, integrated energy company ExxonMobil, international oil & gas exploration & production company Occidental Petroleum and oil and gas equipment manufacturer and services company National Oilwell Varco were the strongest contributors to performance.

ExxonMobil is the largest integrated energy company with the lowest exploration and development costs. The company generates significant free cash flow, which it has been returning to shareholders through increased dividends and a significant share-repurchase program. ExxonMobil’s acquisition of oil and natural gas company XTO Energy, which was initially met with skepticism, has gone well. The pace of share repurchases will soon reduce the share count to levels preceding the merger. Additionally, ExxonMobil has benefited from the increasing price of oil.

Occidental Petroleum also benefited from higher oil prices. We believe that Occidental Petroleum is a well-managed and returns-focused company with superior growth prospects. National Oilwell Varco benefited from a growing order backlog and renewed spending within its industry, which made the stock a strong performer toward the end of the reporting period.

During the reporting period, the weakest contributors to the Fund’s performance included semiconductor manufacturer MEMC Electronic Materials, technology leader Microsoft and bank holding company Hudson City Bancorp.

MEMC Electronic Materials develops, manufactures and sells silicon wafers for the semiconductor industry worldwide. The company’s wafers are used as the starting material for the manufacture of various types of semiconductor devices. With a large exposure to the solar energy sector, the company was negatively affected by concerns that spending and tax breaks for solar installations will be cut. We continue to believe that the company is well run and has differentiated products, and the Fund continues to hold the position.

 
 1. See footnote on page 6 for more information on Lipper Inc.
2. See footnote on page 6 for more information on the Russell 1000^® Index.

mainstayinvestments.com    9

While frustrated with Microsoft’s stock price, we continue to believe that the company is executing well on its business plan. The market has largely ignored the double-digit revenue growth Microsoft is experiencing in many of its divisions, and we are encouraged by the success the company is having across various segments, including cloud computing³, server business, operating systems, gaming and online search. We feel that the company is taking the right steps to build shareholder value, and the Fund continues to hold the stock.

We felt that Hudson City Bancorp’s need for a balance sheet restructuring would lead to a dividend cut and ultimately to lowered earnings power. As a result, we chose to exit the Fund’s position when the company announced the restructuring.

Did the Fund make any significant purchases or sales during the reporting period?

Among the stocks that the Fund purchased during the reporting period were financial services company PNC Financial Services, value-oriented, family-focused department store company Kohl’s, entertainment company Time Warner and manufacturing technology solutions company Applied Materials.

While the Fund has been focused on nonbank financials, we are starting to see an improvement in U.S. credit metrics and have begun to very selectively increase exposure to the credit markets. PNC Financial Services is a well-run, well-capitalized bank that we believe is poised to generate substantial excess capital over the next two years. With a diverse business model, the company offers exposure to an uptick in commercial and industrial lending.

Kohl’s has a strong balance sheet, generates growing free cash flow and cash flow growth in the low teens. In our opinion, the company is a good steward of capital, having initiated a divi-dend for the first time this year. We felt that the stock was selling at an attractive valuation.

We added Time Warner, a leading global media and entertainment company that owns valuable businesses such as Warner Bros. Studios, HBO, CNN and People Magazine. Time Warner has a good mix of businesses with high recurring revenue and low capital intensity. The relatively new management team has increased the company’s focus on return on invested capital, which in turn has improved the company’s operating and financial performance. Management is committed to returning capital to shareholders, as evidenced by last year’s buyback program and the recent announcement of an additional $5 billion share-repurchase authorization along with an 11% increase in the company’s quarterly dividend.

The semiconductor industry underspent during the downturn, and in light of production utilization rates, we anticipate an uptick in investment, which we believe will benefit Applied Materials. The company serves the semiconductor, flat panel display, solar and related industries worldwide and has been gaining market share in several key areas. Applied Materials has an excellent history of shareholder yield, buying back more than 17% of its outstanding shares during the past five years.

Among the stocks that the Fund sold during the reporting period were oil services company Weatherford, Bermuda-based reinsurance and insurance underwriter Everest Re Group Ltd. and concentrated potash and phosphate nutrients producer Mosaic.

We sold the Fund’s position in Weatherford during the reporting period because the company had reached our price objective and we felt the stock had begun to fully discount the expected improvement in the international demand for oilfield services. We chose to exit the Fund’s position in Everest Re Group based on valuation and our belief that better risk-return opportunities could be found elsewhere. We chose to sell the Fund’s position in Mosaic after the stock reached our valuation target.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, the Fund’s consumer discretionary exposure increased with two new purchases. These transactions moved the Fund from an underweight position relative to the Russell 1000^® Index to a market-weight exposure. The Fund’s health care exposure increased because of strong returns from sector holdings, moving the Fund from a market-weight exposure to a slightly overweight position relative to the benchmark.

The Fund’s information technology and utilities weightings decreased with the sale of two holdings. These transactions slightly reduced the Fund’s overweight position in information technology and reduced the Fund’s utilities exposure from an overweight position relative to the benchmark to a slightly underweight position.

How was the Fund positioned at the end of April 2011?

As of April 30, 2011, the Fund’s most substantially overweight sector positions relative to the Russell 1000^® Index were in financials and information technology. As of the same date, consumer staples continued to be the Fund’s most substantially underweight sector relative to the Russell 1000^® Index.

 
 3. Cloud computing is a convenient, controlled and secure service that provides on-demand access to a wide range of shared applications, collaborative capabilities and networking services from anywhere in the world.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay Epoch U.S. Equity Fund

Portfolio of InvestmentsApril 30, 2011 (unaudited)

		Shares		Value
Common Stocks 97.2%†
Aerospace & Defense 3.9%
X  Boeing Co. (The)			77,550	$	6,186,939
Rockwell Collins, Inc.			50,700		3,199,170
					9,386,109
Capital Markets 6.7%
X  Ameriprise Financial, Inc.			90,700		5,628,842
X  Franklin Resources, Inc.			48,550		6,268,776
TD Ameritrade Holding Corp.			183,950		3,962,283
					15,859,901
Chemicals 4.9%
E.I. du Pont de Nemours & Co.			87,700		4,980,483
X  Praxair, Inc.			62,200		6,619,324
					11,599,807
Commercial Banks 1.4%
PNC Financial Services Group, Inc.			54,900		3,422,466
Commercial Services & Supplies 2.2%
Waste Management, Inc.			130,000		5,129,800
Computers & Peripherals 3.3%
Apple, Inc. (a)			12,630		4,398,145
Dell, Inc. (a)			216,600		3,359,466
					7,757,611
Consumer Finance 1.4%
American Express Co.			67,450		3,310,446
Distributors 1.1%
Genuine Parts Co.			48,550		2,607,135
Diversified Financial Services 1.9%
NYSE Euronext			116,100		4,649,805
Diversified Telecommunication Services 1.0%
CenturyLink, Inc.			56,460		2,302,439
Electronic Equipment & Instruments 1.8%
Corning, Inc.			206,002		4,313,682
Energy Equipment & Services 3.4%
Cameron International Corp. (a)			66,020		3,480,574
National-Oilwell Varco, Inc.			60,800		4,662,752
					8,143,326
Health Care Providers & Services 8.5%
Aetna, Inc.			109,490		4,530,696
X  DaVita, Inc. (a)			74,750		6,584,728
Laboratory Corp. of America Holdings(a)			50,700		4,891,029
UnitedHealth Group, Inc.			85,100		4,189,473
					20,195,926
Hotels, Restaurants & Leisure 1.2%
International Game Technology			163,600		2,894,084
Household Products 1.0%
Colgate-Palmolive Co.			28,150		2,374,452
	��
Insurance 5.2%
MetLife, Inc.			109,942		5,144,186
Prudential Financial, Inc.			77,153		4,893,043
Travelers Cos., Inc. (The)			36,325		2,298,646
					12,335,875
Internet Software & Services 1.3%
Yahoo!, Inc. (a)			173,200		3,074,300
IT Services 3.6%
Fidelity National Information Services, Inc.			108,669		3,596,944
Visa, Inc. Class A			62,700		4,898,124
					8,495,068
Life Sciences Tools & Services 2.4%
X  Thermo Fisher Scientific, Inc. (a)			93,900		5,633,061
Machinery 4.4%
Danaher Corp.			98,700		5,452,188
Ingersoll-Rand PLC			98,200		4,959,100
					10,411,288
Media 3.8%
X  Comcast Corp. Class A			275,645		6,767,085
Time Warner, Inc.			63,407		2,400,589
					9,167,674
Multi-Utilities 3.2%
NSTAR			65,700		3,041,910
Wisconsin Energy Corp.			146,800		4,581,628
					7,623,538
Multiline Retail 1.4%
Kohl’s Corp.			62,700		3,304,917
Oil, Gas & Consumable Fuels 8.4%
ConocoPhillips			34,100		2,691,513
Devon Energy Corp.			43,300		3,940,300

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Shares			Value
Common Stocks (continued)
Oil, Gas & Consumable Fuels (continued)
X  ExxonMobil Corp.		90,750		$	7,986,000
Occidental Petroleum Corp.		47,115			5,384,773
					20,002,586
Paper & Forest Products 1.0%
International Paper Co.		79,450			2,453,416
Pharmaceuticals 1.9%
Abbott Laboratories		86,100			4,480,644
Real Estate Investment Trusts 2.2%
Ventas, Inc.		92,300			5,162,339
Semiconductors & Semiconductor Equipment 3.8%
Applied Materials, Inc.		143,950			2,258,575
MEMC Electronic Materials, Inc. (a)		114,950			1,359,859
Texas Instruments, Inc.		150,800			5,357,924
					8,976,358
Software 7.3%
Electronic Arts, Inc. (a)		135,450			2,733,381
X  Microsoft Corp.		282,050			7,338,941
X  Oracle Corp.		205,200			7,397,460
					17,469,782
Specialty Retail 3.6%
Staples, Inc.		168,600			3,564,204
TJX Cos., Inc.		92,064			4,936,472
					8,500,676
Total Common Stocks (Cost $178,367,577)					231,038,511
	Principal
	Amount
Short-Term Investment 2.6%
Repurchase Agreement 2.6%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $6,094,724 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $6,220,000 and a Market Value of $6,219,966)	$	6,094,719		$	6,094,719
Total Short-Term Investment (Cost $6,094,719)					6,094,719
Total Investments (Cost $184,462,296) (b)		99.8	%		237,133,230
Other Assets, Less Liabilities		0.2			514,399
Net Assets		100.0	%	$	237,647,629

(a)	Non-income producing security.
(b)	At April 30, 2011, cost is $184,923,727 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	52,817,794
Gross unrealized depreciation		(608,291	)
Net unrealized appreciation	$	52,209,503

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	231,038,511	$	—	$	—	$	231,038,511
Short-Term Investment
Repurchase Agreement		—		6,094,719		—		6,094,719
Total Investments in Securities	$	231,038,511	$	6,094,719	$	—	$	237,133,230

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

12    MainStay Epoch U.S. Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $184,462,296)	$	237,133,230
Receivables:
Fund shares sold		707,822
Dividends and interest		156,604
Other assets		37,413
Total assets		238,035,069
Liabilities
Payables:
Fund shares redeemed		165,747
Manager (See Note 3)		150,978
Professional fees		33,179
Transfer agent (See Note 3)		25,401
Shareholder communication		8,413
Trustees		946
NYLIFE Distributors (See Note 3)		416
Accrued expenses		2,360
Total liabilities		387,440
Net assets	$	237,647,629
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	16,722
Additional paid-in capital		173,719,480
		173,736,202
Undistributed net investment income		90,991
Accumulated net realized gain (loss) on investments		11,149,502
Net unrealized appreciation (depreciation) on investments		52,670,934
Net assets	$	237,647,629
Investor Class
Net assets applicable to outstanding shares	$	246,248
Shares of beneficial interest outstanding		17,421
Net asset value per share outstanding	$	14.14
Maximum sales charge (5.50% of offering price)		0.82
Maximum offering price per share outstanding	$	14.96
Class A
Net assets applicable to outstanding shares	$	1,625,103
Shares of beneficial interest outstanding		114,811
Net asset value per share outstanding	$	14.15
Maximum sales charge (5.50% of offering price)		0.82
Maximum offering price per share outstanding	$	14.97
Class C
Net assets applicable to outstanding shares	$	68,960
Shares of beneficial interest outstanding		4,912
Net asset value and offering price per share outstanding	$	14.04
Class I
Net assets applicable to outstanding shares	$	235,707,318
Shares of beneficial interest outstanding		16,585,001
Net asset value and offering price per share outstanding	$	14.21

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends	$	1,871,654
Interest		554
Total income		1,872,208
Expenses
Manager (See Note 3)		907,452
Transfer agent (See Note 3)		95,051
Registration		42,017
Professional fees		33,129
Shareholder communication		15,562
Custodian		8,911
Trustees		3,534
Distribution/Service—Investor Class (See Note 3)		174
Distribution/Service—Class A (See Note 3)		1,489
Distribution/Service—Class C (See Note 3)		224
Miscellaneous		12,659
Total expenses		1,120,202
Net investment income (loss)		752,006
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		11,621,579
Net change in unrealized appreciation (depreciation) on investments		23,404,380
Net realized and unrealized gain (loss) on investments		35,025,959
Net increase (decrease) in net assets resulting from operations	$	35,777,965

14    MainStay Epoch U.S. Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited), the period January 1, 2010 through October 31, 2010 (a) and the year ended December 31, 2009

	2011			2010			2009
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	752,006		$	623,267		$	1,437,455
Net realized gain (loss) on investments		11,621,579			19,033,812			13,607,151
Net change in unrealized appreciation (depreciation) on investments		23,404,380			(3,429,280	)		25,404,187
Net increase (decrease) in net assets resulting from operations		35,777,965			16,227,799			40,448,793
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(812	)		—			(66	)
Class A		(3,699	)		—			(310	)
Class C		—			—			(42	)
Class I		(1,279,771	)		—			(1,464,922	)
		(1,284,282	)		—			(1,465,340	)
From net realized gain on investments:
Investor Class		(9,674	)		—			—
Class A		(94,019	)		—			(2,232	)
Class C		(3,339	)		—			—
Class I		(22,599,949	)		—			(10,499,362	)
		(22,706,981	)		—			(10,501,594	)
Total dividends and distributions to shareholders		(23,991,263	)		—			(11,966,934	)
Capital share transactions:
Net proceeds from sale of shares		92,352,899			148,726,720			91,138,718
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		3,161,160			—			374,971
Cost of shares redeemed		(100,440,611	)		(89,578,723	)		(63,361,768	)
Increase (decrease) in net assets derived from capital share transactions		(4,926,552	)		59,147,997			28,151,921
Net increase (decrease) in net assets		6,860,150			75,375,796			56,633,780
Net Assets
Beginning of period		230,787,479			155,411,683			98,777,903
End of period	$	237,647,629		$	230,787,479		$	155,411,683
Undistributed net investment income at end of period	$	90,991		$	623,267		$	—

(a)  The Fund changed its fiscal year end from December 31 to October 31.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Financial Highlights selected per share data and ratios

	Investor Class
				January 1,			November 16,
				2010			2009**
	Six months			through			through
	ended April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	13.51		$	12.67		$	12.38
Net investment income (loss) (a)		0.02			0.03			0.02
Net realized and unrealized gain (loss) on investments		2.01			0.81			0.30
Total from investment operations		2.03			0.84			0.32
Less dividends and distributions:
From net investment income		(0.05	)		—			(0.03	)
From net realized gain on investments		(1.35	)		—			—
Total dividends and distributions		(1.40	)		—			(0.03	)
Net asset value at end of period	$	14.14		$	13.51		$	12.67
Total investment return (b)		16.22	%(c)		6.63	%(c)		2.60	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.26	%††		0.25	%††		1.11	%††
Net expenses		1.28	%††		1.40	%††		1.19	%††
Expenses (before waiver/reimbursement)		1.28	%††		1.43	%††		1.19	%††
Portfolio turnover rate		34	%		54	%		54	%
Net assets at end of period (in 000’s)	$	246		$	74		$	28

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

16    MainStay Epoch U.S. Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
				January 1,			February 3,
				2010			2009**
	Six months			through			through
	ended April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	13.52		$	12.67		$	10.24
Net investment income (loss) (a)		0.02			0.02			0.08
Net realized and unrealized gain (loss) on investments		2.01			0.83			3.33
Total from investment operations		2.03			0.85			3.41
Less dividends and distributions:
From net investment income		(0.05	)		—			(0.10	)
From net realized gain on investments		(1.35	)		—			(0.88	)
Total dividends and distributions		(1.40	)		—			(0.98	)
Net asset value at end of period	$	14.15		$	13.52		$	12.67
Total investment return (b)		16.26	%(c)		6.71	% (c)		33.59	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.35	%††		0.19	%††		0.76	%††
Net expenses		1.24	%††		1.34	%††		1.35	%††
Expenses (before waiver/reimbursement)		1.24	%††		1.37	%††		1.44	%††
Portfolio turnover rate		34	%		54	%		54	%
Net assets at end of period (in 000’s)	$	1,625		$	850		$	127

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class C
				January 1,
				2010
	Six months			through			November 16, 2009** through
	ended April 30,			October 31,			December 31,
	2011*			2010***			2009
Net asset value at beginning of period	$	13.42		$	12.67		$	12.38
Net investment income (loss) (a)		(0.03	)		(0.07	)		0.01
Net realized and unrealized gain (loss) on investments		2.00			0.82			0.30
Total from investment operations		1.97			0.75			0.31
Less dividends and distributions:
From net investment income		—			—			(0.02	)
From net realized gain on investments		(1.35	)		—			—
Total dividends and distributions		(1.35	)		—			(0.02	)
Net asset value at end of period	$	14.04		$	13.42		$	12.67
Total investment return (b)		15.75	%(c)		5.92	%(c)(d)		2.51	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.43	%)††		(0.63	%)††		0.37	%††
Net expenses		2.03	% ††		2.15	% ††		1.94	%††
Expenses (before waiver/reimbursement)		2.03	% ††		2.18	% ††		1.94	%††
Portfolio turnover rate		34	%		54	%		54	%
Net assets at end of period (in 000’s)	$	69		$	33		$	26

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

18    MainStay Epoch U.S. Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
				January 1,						December 3,
				2010						2008**
	Six months			through			Year ended			through
	ended April 30,			October 31,			December 31,			December 31,
	2011*			2010***			2009			2008
Net asset value at beginning of period	$	13.58		$	12.70		$	10.85		$	10.00
Net investment income (loss)		0.04	(a)		0.04	(a)		0.11	(a)		0.01
Net realized and unrealized gain (loss) on investments		2.02			0.84			2.74			0.85
Total from investment operations		2.06			0.88			2.85			0.86
Less dividends and distributions:
From net investment income		(0.08	)		—			(0.12	)		(0.01	)
From net realized gain on investments		(1.35	)		—			(0.88	)		—
Total dividends and distributions		(1.43	)		—			(1.00	)		(0.01	)
Net asset value at end of period	$	14.21		$	13.58		$	12.70		$	10.85
Total investment return (b)		16.39	%(c)		6.93	%(c)		26.53	%		8.59	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.67	%††		0.40	%††		0.98	%		1.28	%††
Net expenses		0.99	%††		1.09	%††		1.09	%		1.09	%††
Expenses (before reimbursement/waiver)		0.99	%††		1.12	%††		1.19	%		1.16	%††
Portfolio turnover rate		34	%		54	%		54	%		1	%
Net assets at end of period (in 000’s)	$	235,707		$	229,830		$	155,231		$	98,778

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Epoch U.S. Equity Fund (the “Fund”), a diversified Fund. The Fund is the successor to the Epoch U.S. Large Cap Equity Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Epoch Investment Partners, Inc. served as investment advisor.

The Fund currently offers four classes of shares: Investor Class, Class A, Class C and Class I shares. Investor Class and Class C shares commenced operations on November 16, 2009. Class A and Class I shares commenced operations (under former designations), on February 3, 2009 and December 3, 2008, respectively. Effective January 4, 2010, the Fund changed its fiscal year end from December 31 to October 31. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The four classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek long-term capital appreciation.

The financial statements of the Fund reflect the historical results of the Institutional Class and Class P shares of the Predecessor Fund prior to its reorganization. Upon the completion of the reorganization, the Class I and Class A shares of the Fund assumed the performance, financial and other information of the Institutional Class and Class P shares of the Predecessor Fund, respectively. All information and references to periods prior to the commencement of operations of the Fund refer to the Predecessor Fund.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values

20    MainStay Epoch U.S. Equity Fund

may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Options contracts are valued at the last posted settlement price on the market where such options are principally traded. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required. Investment income received by the Fund from foreign sources may be subject to foreign income taxes. These foreign income taxes are generally withheld at the source.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

mainstayinvestments.com    21

Notes to Financial Statements (unaudited) (continued)

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(I) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. Epoch Investment Partners, Inc. (“Epoch” or “Subadvisor”), a registered investment adviser, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of 0.80% of the Fund’s average daily net assets. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.80% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses for Class A and Class I shares do not exceed the following percentages of average daily net assets: Class A, 1.34% and Class I, 1.09%. New York Life Investments will apply an equivalent waiver or reimbursement, in an amount equal to the number of basis points waived for Class A shares, to Investor Class and Class C shares of the Fund. This expense limitation agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $907,452.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution and service plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for

22    MainStay Epoch U.S. Equity Fund

distribution or service activities as designated by the Distributor. Pursuant to the Class C Plan, Class C shares of the Fund pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $559 and $1,178, respectively, for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	89
Class A		499
Class C		29
Class I		94,434

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Investor Class	$	31,792	12.9	%
Class C		31,477	45.6

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $3,014. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

The tax character of distributions paid during ten-month ended October 31, 2010 and the fiscal year ended December 31, 2009, shown in the Statements of Changes in Net Assets, was as follows:

	2010		2009
Distributions paid from:
Ordinary Income	$	—	$	11,966,934

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities in (000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $75,147 and $98,389, respectively.

mainstayinvestments.com    23

Notes to Financial Statements (unaudited) (continued)

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		11,425		$	154,406
Shares issued to shareholders in reinvestment of dividends and distributions		829			10,486
Shares redeemed		(643	)		(8,538	)
Net increase (decrease) in shares outstanding before conversion		11,611			156,354
Shares converted into Investor Class (See Note 1)		1,087			14,696
Shares converted from Investor Class (See Note 1)		(756	)		(9,811	)
Net increase (decrease)		11,942		$	161,239
Ten-month period ended October 31, 2010:
Shares sold		13,843		$	184,509
Shares redeemed		(542	)		(7,151	)
Net increase (decrease) in shares outstanding before conversion		13,301			177,358
Shares converted from Investor Class (See Note 1)		(10,045	)		(123,949	)
Net increase (decrease)		3,256		$	53,409
Period ended December 31, 2009 (a):
Shares sold		2,218		$	27,541
Shares issued to shareholders in reinvestment of dividends and distributions		5			66
Net increase (decrease)		2,223		$	27,607
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		63,764		$	850,229
Shares issued to shareholders in reinvestment of dividends and distributions		7,418			93,909
Shares redeemed		(18,890	)		(249,347	)
Net increase (decrease) in shares outstanding before conversion		52,292			694,791
Shares converted into Class A (See Note 1)		755			9,811
Shares converted from Class A (See Note 1)		(1,085	)		(14,696	)
Net increase (decrease)		51,962		$	689,906
Ten-month period ended October 31, 2010:
Shares sold		60,381		$	780,351
Shares redeemed		(17,575	)		(215,229	)
Net increase (decrease) in shares outstanding before conversion		42,806			565,122
Shares converted into Class A (See Note 1)		10,044			123,949
Net increase (decrease)		52,850		$	689,071
Period ended December 31, 2009 (b):
Shares sold		9,794		$	122,216
Shares issued to shareholders in reinvestment of dividends and distributions		205			127
Net increase (decrease)		9,999		$	122,343
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		2,173		$	29,130
Shares issued to shareholders in reinvestment of distributions		265			3,338
Net increase (decrease)		2,438		$	32,468
Ten-month period ended October 31, 2010:
Shares sold		451		$	5,796
Net increase (decrease)		451		$	5,796
Period ended October 31, 2009 (a):
Shares sold		2,020		$	25,000
Shares issued to shareholders in reinvestment of dividends and distributions		3			42
Net increase (decrease)		2,023		$	25,042
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		6,846,507		$	91,319,134
Shares issued to shareholders in reinvestment of dividends and distributions		240,427			3,053,427
Shares redeemed		(7,426,586	)		(100,182,726	)
Net increase (decrease)		(339,652	)	$	(5,810,165	)
Ten-month period ended October 31, 2010:
Shares sold		11,488,021		$	147,756,064
Shares redeemed		(6,788,013	)		(89,356,343	)
Net increase (decrease)		4,700,008		$	58,399,721
Year ended December 31, 2009:
Shares sold		8,316,820		$	90,963,961
Shares issued to shareholders in reinvestment of dividends and distributions		30,085			374,736
Shares redeemed		(5,228,135	)		(63,361,768	)
Net increase (decrease)		3,118,770		$	27,976,929

(a) Investor Class shares and Class C shares were first offered on November 16, 2009.

(b) Class A shares were first offered on February 3, 2009.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

24    MainStay Epoch U.S. Equity Fund

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Epoch U.S. Equity Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and Epoch Investment Partners, Inc. (“Epoch”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and Epoch as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and Epoch in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and Epoch at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and Epoch on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates and Epoch as subadvisor to the Fund, and responses from New York Life Investments and Epoch to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the investment performance of the Fund, New York Life Investments and Epoch; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates and by Epoch as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and Epoch

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing Epoch’s compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same

mainstayinvestments.com    25

Board Consideration and Approval of Management Agreement and Subadvisory Agreement(Unaudited) (continued)

class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

The Board also examined the nature, extent and quality of the services that Epoch provides to the Fund. The Board evaluated Epoch’s experience in serving as subadvisor to the Fund and managing other portfolios. It examined Epoch’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at Epoch, and Epoch’s overall legal and compliance environment. The Board also reviewed Epoch’s willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and Epoch’s experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and Epoch to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and Epoch

The Board considered the costs of the services provided by New York Life Investments and Epoch under the Agreements, and the profits realized by New York Life Investments, its affiliates and Epoch due to their relationships with the Fund.

In evaluating any costs and profits of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and Epoch must be in a position to pay and retain experienced professional personnel to provide services to the Fund and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board considered representations from Epoch and New York Life Investments that the subadvisory fee paid by New York Life Investments to Epoch for services provided to the Fund was the result of arm’s-length negotiations. Because Epoch is not affiliated with New York Life Investments, and Epoch’s fees are paid directly by New York Life Investments, the Board focused primarily on the profitability of the relationship between New York Life Investments and its affiliates and the Fund.

The Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board recognized, for example, the benefits to Epoch from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to Epoch in exchange for commissions

26    MainStay Epoch U.S. Equity Fund

paid by the Fund with respect to trades on the Fund’s portfolio securities. The Board also requested and received information from Epoch and New York Life Investments concerning other business relationships between Epoch and its affiliates and New York Life Investments and its affiliates.

The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates and Epoch due to their relationships with the Fund supported the Board’s determination to approve the Agreements. With respect to Epoch, the Board concluded that any profits realized by Epoch due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and Epoch, and are based on subadvisory fees paid to Epoch by New York Life Investments, not the Fund.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to Epoch are paid by New York Life Investments, not the Fund. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and Epoch on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and Epoch about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New

mainstayinvestments.com    27

Board Consideration and Approval of Management Agreement and Subadvisory Agreement(Unaudited) (continued)

York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares and $500 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

28    MainStay Epoch U.S. Equity Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting records for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the Fund’s website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com    29

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23166 MS136-11 MSEUE10-06/11

F1

MainStay Floating Rate Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	10
Financial Statements	21
Notes to Financial Statements	27
Board Consideration and Approval of Management Agreement	34
Proxy Voting Policies and Procedures and Proxy Voting Record	37
Shareholder Reports and Quarterly Portfolio Disclosure	37

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months			One Year			Five Year			(5/3/04)			Ratio2
Investor Class Shares3	Maximum 3% Initial Sales Charge	With sales charges		–0	.05%		2	.54%		3	.25%		3	.51%		1	.10%
		Excluding sales charges		3	.04		5	.71		3	.88		3	.96		1	.10
Class A Shares	Maximum 3% Initial Sales Charge	With sales charges		–0	.01		2	.63		3	.32		3	.56		1	.00
		Excluding sales charges		3	.08		5	.81		3	.95		4	.01		1	.00
Class B Shares	Maximum 3% CDSC if Redeemed	With sales charges		–0	.44		1	.83		3	.08		3	.19		1	.85
	Within the First Four Years of Purchase	Excluding sales charges		2	.56		4	.83		3	.08		3	.19		1	.85
Class C Shares	Maximum 1% CDSC if Redeemed	With sales charges		1	.56		3	.94		3	.08		3	.18		1	.85
	Within One Year of Purchase	Excluding sales charges		2	.56		4	.94		3	.08		3	.18		1	.85
Class I Shares	No Sales Charge			3	.09		6	.06		4	.21		4	.29		0	.75

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain contractual fees and expenses. Unadjusted, the performance shown for Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Since
Benchmark Performance	Months			Year			Years			Inception
Credit Suisse Leveraged Loan Index4		5	.15%		7	.47%		4	.55%		4	.92%
Average Lipper Loan Participation Fund5		4	.23		6	.78		3	.57		4	.04

4.

The Credit Suisse Leveraged Loan Index represents tradable, senior-secured, U.S. dollar-denominated non-investment-grade loans. Results assume reinvestment of all income and capital gains. The Credit Suisse Leveraged Loan Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.

5.

The average Lipper loan participation fund is representative of funds that invest primarily in participation interests in collateralized senior corporate loans that have floating or variable rates. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Floating Rate Fund

Cost in Dollars of a $1,000 Investment in MainStay Floating Rate Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,030.40	$	5.39	$	1,019.50	$	5.36
Class A Shares	$	1,000.00	$	1,030.80	$	4.93	$	1,019.90	$	4.91
Class B Shares	$	1,000.00	$	1,025.60	$	9.14	$	1,015.80	$	9.10
Class C Shares	$	1,000.00	$	1,025.60	$	9.04	$	1,015.90	$	9.00
Class I Shares	$	1,000.00	$	1,030.90	$	3.63	$	1,021.20	$	3.61

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.07% for Investor Class, 0.98% for Class A, 1.82% for Class B, 1.80% for Class C and 0.72% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Portfolio Composition as of April 30, 2011 (Unaudited)

Floating Rate Loans	78.4
Corporate Bonds	10.3
Short-Term Investments	8.5
Foreign Floating Rate Loans	3.6
Yankee Bonds	1.1
Common Stocks	0.1
Other Assets, Less Liabilities	(2.0	)

See Portfolio of Investments beginning on page 10 for specific holdings within these categories.

Top Ten Holdings or Issuers Held as of April 30, 2011 (excluding short-term investments)

1.	Aramark Corp., 2.119%–3.557%, due 1/27/14–7/26/16
2.	TransDigm, Inc., 4.00%–7.75%, due 2/14/17–12/15/18
3.	Community Health Systems, Inc., 2.561%–3.811%, due 7/25/14–1/25/17
4.	DaVita, Inc., 4.50%, due 10/20/16
5.	Intelsat Jackson Holdings, Ltd., 5.25%, due 4/2/18
6.	Nielsen Finance LLC, 2.231%–11.625%, due 8/9/13–5/2/16
7.	NRG Energy, Inc., 2.057%–3.557%, due 2/1/13–8/31/15
8.	Biomet, Inc., 3.281%, due 3/25/15
9.	Celanese U.S. Holdings LLC, 0.244%–3.303%, due 4/2/14–10/31/16
10.	Visant Holding Corp., 5.25%, due 12/31/16

8    MainStay Floating Rate Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio manager Robert H. Dial of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Floating Rate Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Floating Rate Fund returned 3.04% for Investor Class shares, 3.08% for Class A shares, 2.56% for Class B shares and 2.56% for Class C shares during the six months ended April 30, 2011. Over the same period, Class I shares returned 3.09%. All share classes underperformed the 4.23% return of the average Lipper² loan participation fund and the 5.15% return of the Credit Suisse Leveraged Loan Index³ for the six months ended April 30, 2011. The Credit Suisse Leveraged Loan Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund’s underperformance of its benchmark resulted from its cash position (needed to accommodate share repurchases), an overweight position relative to the benchmark in credits rated BB⁴ and a substantially underweight position in unrated credits and loans rated CCC⁵ and lower. Significant net inflows into the floating-rate loan asset class from December 2010 through mid-March 2011 helped the riskiest credits outperform their higher-rated counterparts.

What was the Fund’s duration⁶ strategy during the reporting period?

The Fund invested in floating-rate loans that had a weighted average effective duration of less than three months. Floating-rate loans mature, on average, in five to seven years, but loan maturity can be as long as nine years. The underlying interest rate contracts of the Fund’s loans, which are typically pegged to LIBOR,⁷ reset every 30, 60, 90 or 180 days. The Fund’s weighted average days-to-reset figure at April 30, 2011, was 41 days. Since actual reset dates may vary for different loans in the Fund, the actual period between a shift in interest rates and the time when the Fund would “catch up” may differ.

What specific factors, risks or market forces prompted significant decisions for the Fund during the reporting period?

Although the default environment for leveraged loans remained benign during the reporting period, the Fund maintained an underweight position relative to the Credit Suisse Leveraged Loan Index in unrated credits and loans rated CCC and below. Instead, we sought to invest in higher-rated credits that we believe will perform well in a variety of economic environments. However, during the reporting period, we increased the Fund’s exposure to fixed-rate bonds to 10.8% of net assets based on attractive relative-value opportunities available in the market. This bond exposure provided incremental yield and enhanced liquidity within the Fund.

How was the Fund positioned at the end of the reporting period?

As of April 30, 2011, the Fund was overweight relative to the Credit Suisse Leveraged Loan Index in credits rated BB (61.66% in the Fund; 39.96% in the Index). As of the same date, the Fund was significantly underweight in unrated credits and loans rated CCC or lower (3.19% in the Fund; 21.45% in the Index).

  
1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.
2. See footnote on page 6 for more information on Lipper Inc.
3. See footnote on page 6 for more information on the Credit Suisse Leveraged Loan Index.
4. Debt rated BB by Standard & Poor’s is deemed by Standard & Poor’s to be less vulnerable to nonpayment than other speculative issues. In the opinion of Standard & Poor’s, however, debt rated BB faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.
5. Debt rated CCC by Standard & Poor’s is deemed by Standard & Poor’s to be currently vulnerable to nonpayment and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitment on the obligation. It is the opinion of Standard & Poor’s that in the event of adverse business, financial or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.
6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity-gauge than average maturity.
7. London InterBank Offered Rate (LIBOR) is an interest rate that is widely used as a reference rate in bank, corporate and government lending agreements.

The opinions expressed are those of the portfolio manager as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    9

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Principal
	Amount		Value
Long-Term Bonds 93.4%† Corporate Bonds 10.3%
Aerospace & Defense 0.7%
Oshkosh Corp. 8.25%, due 3/1/17	$	3,400,000	$	3,752,750
Spirit Aerosystems, Inc. 7.50%, due 10/1/17		865,000		938,525
X  TransDigm, Inc. 7.75%, due 12/15/18 (a)		5,000,000		5,387,500
				10,078,775
Automobile 0.1%
Dana Holding Corp. 6.50%, due 2/15/19		800,000		806,000
Beverage, Food & Tobacco 0.2%
Dole Food Co., Inc. 8.00%, due 10/1/16 (a)		2,500,000		2,671,875
Broadcasting & Entertainment 0.7%
CSC Holdings LLC 8.625%, due 2/15/19		1,300,000		1,498,250
Insight Communications Co., Inc. 9.375%, due 7/15/18 (a)		2,500,000		2,793,750
Sinclair Television Group, Inc. 8.375%, due 10/15/18		5,000,000		5,350,000
				9,642,000
Buildings & Real Estate 0.6%
Building Materials Corp. of America 6.75%, due 5/1/21 (a)		1,700,000		1,723,375
6.875%, due 8/15/18 (a)		2,400,000		2,478,000
CB Richard Ellis Services, Inc. 6.625%, due 10/15/20		3,800,000		3,971,000
				8,172,375
Chemicals, Plastics & Rubber 1.3%
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC 8.875%, due 2/1/18		4,500,000		4,882,500
Huntsman International LLC 5.50%, due 6/30/16		5,000,000		4,987,500
KRATON Polymers LLC/KRATON Polymers Capital Corp. 6.75%, due 3/1/19 (a)		500,000		508,750
Nalco Co. 6.625%, due 1/15/19 (a)		2,000,000		2,060,000
8.25%, due 5/15/17		1,800,000		1,959,750
Nexeo Solutions LLC/Nexeo Solutions Finance Corp. 8.375%, due 3/1/18 (a)		3,000,000		3,112,500
				17,511,000
Containers, Packaging & Glass 1.7%
Ball Corp. 6.625%, due 3/15/18		2,000,000		2,065,000
Berry Plastics Corp. 4.185%, due 9/15/14 (b)		1,500,000		1,406,250
5.028%, due 2/15/15 (b)		3,000,000		2,955,000
9.50%, due 5/15/18		3,000,000		3,018,750
Crown Americas LLC/Crown Americas Capital Corp. II 7.625%, due 5/15/17		1,800,000		1,966,500
Crown Americas LLC/Crown Americas Capital Corp. III 6.25%, due 2/1/21 (a)		3,000,000		3,082,500
Greif, Inc. 7.75%, due 8/1/19		1,350,000		1,481,625
Reynolds Group Issuer, Inc. 6.875%, due 2/15/21 (a)		2,000,000		2,062,500
Silgan Holdings, Inc. 7.25%, due 8/15/16		1,000,000		1,076,250
Solo Cup Co. 10.50%, due 11/1/13		3,750,000		3,904,687
				23,019,062
Diversified Natural Resources, Precious Metals & Minerals 0.1%
Boise Paper Holdings LLC/Boise Co-Issuer Co. 8.00%, due 4/1/20		1,300,000		1,410,500
Diversified/Conglomerate Service 0.5%
Corrections Corp. of America 7.75%, due 6/1/17		3,000,000		3,285,000
Fidelity National Information Services, Inc. 7.625%, due 7/15/17		900,000		985,500
Geo Group, Inc. (The) 7.75%, due 10/15/17		2,000,000		2,140,000
				6,410,500
Ecological 0.2%
Clean Harbors, Inc. 7.625%, due 8/15/16		2,070,000		2,214,900
Healthcare, Education & Childcare 0.4%
Giant Funding Corp. 8.25%, due 2/1/18 (a)		1,385,000		1,436,938

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings or issuers held, as of April 30, 2011, excluding short-term investments. May be subject to change daily.

10    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Corporate Bonds (continued)
Healthcare, Education & Childcare (continued)
Mylan, Inc. 7.625%, due 7/15/17 (a)	$	3,500,000	$	3,832,500
				5,269,438
Hotels, Motels, Inns & Gaming 0.5%
American Casinos, Inc. 7.50%, due 4/15/21 (a)		2,800,000		2,866,500
MGM Resorts International 10.375%, due 5/15/14		300,000		346,875
11.125%, due 11/15/17		850,000		988,125
Scientific Games International, Inc. 7.875%, due 6/15/16 (a)		2,500,000		2,625,000
				6,826,500
Leisure, Amusement, Motion Pictures & Entertainment 0.0%‡
Cinemark USA, Inc. 8.625%, due 6/15/19		600,000		657,000
Machinery 0.5%
SPX Corp. 6.875%, due 9/1/17 (a)		6,000,000		6,420,000
Machinery (Non-Agriculture, Non-Construct & Non-Electronic) 0.1%
CPM Holdings, Inc. 10.875%, due 9/1/14 (a)		1,475,000		1,609,594
Mining, Steel, Iron & Non-Precious Metals 0.4%
Consol Energy, Inc. 8.00%, due 4/1/17		4,500,000		4,972,500
Oil & Gas 1.4%
Chesapeake Energy Corp. 6.125%, due 2/15/21		8,751,000		9,035,407
Energy Transfer Equity, L.P. 7.50%, due 10/15/20		1,462,000		1,600,890
Forest Oil Corp. 7.25%, due 6/15/19		3,000,000		3,120,000
Kinder Morgan Finance Co. LLC 6.00%, due 1/15/18 (a)		5,625,000		5,807,813
				19,564,110
Printing & Publishing 0.1%
X  Nielsen Finance LLC 11.625%, due 2/1/14		847,000		999,460
Telecommunications 0.5%
GCI, Inc. 7.25%, due 2/15/14		1,595,000		1,610,950
MetroPCS Wireless, Inc. 6.625%, due 11/15/20		5,000,000		5,006,250
				6,617,200
Utilities 0.3%
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc. 11.50%, due 10/1/20 (a)		4,370,000		4,490,175
Total Corporate Bonds (Cost $132,330,548)				139,362,964
Floating Rate Loans 78.4% (c)
Aerospace & Defense 2.2%
Pelican Products, Inc. New Term Loan B 5.00%, due 3/7/17		3,990,000		3,994,988
SI Organization, Inc. (The) New Term Loan B 4.50%, due 11/22/16		7,630,875		7,630,875
Spirit Aerosystems, Inc. Term Loan B2 3.531%, due 9/30/16		3,455,493		3,468,451
X  TransDigm, Inc. New Term Loan B 4.00%, due 2/14/17		12,385,559		12,507,408
Wesco Aircraft Hardware Corp. New Term Loan B 4.25%, due 4/4/17 (d)		2,351,902		2,374,440
				29,976,162
Automobile 5.9%
Allison Transmission, Inc. Term Loan B 2.99%, due 8/7/14		12,691,692		12,653,616
Capital Automotive L.P. New Term Loan B 5.00%, due 3/10/17		5,938,041		5,908,350
Federal-Mogul Corp.
Term Loan C 2.151%, due 12/28/15		4,644,212		4,523,026
Term Loan B 2.173%, due 12/29/14		4,265,155		4,153,860
Ford Motor Co. Term Loan B1 2.97%, due 12/16/13		10,185,015		10,192,970
Goodyear Tire & Rubber Co. (The) 2nd Lien Term Loan 1.94%, due 4/30/14		5,250,000		5,166,000
KAR Holdings, Inc. Term Loan B 2.97%, due 10/18/13		4,692,521		4,677,856

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Floating Rate Loans (continued)
Automobile (continued)
Key Safety Systems, Inc. 1st Lien Term Loan 2.462%, due 3/8/14	$	3,593,558	$	3,380,938
Metaldyne Co. LLC Term Loan B 7.75%, due 10/28/16		5,472,500		5,581,950
Pinafore LLC New Term Loan B 4.25%, due 9/29/16		9,389,507		9,469,224
Sensata Technologies Finance Co. LLC US Term Loan 2.023%, due 4/26/13		8,226,097		8,174,684
Tenneco, Inc. Tranche B Term Loan 4.807%, due 6/3/16 (d)		794,000		797,970
Tranche B1 Funded LOC 5.243%, due 3/17/14 (d)		2,361,559		2,374,843
UCI International, Inc. New Term Loan B 5.50%, due 7/26/17		3,192,000		3,219,930
				80,275,217
Beverage, Food & Tobacco 3.6%
American Seafoods Group LLC New Term Loan B 4.25%, due 3/8/18 (d)		2,658,510		2,658,510
Constellation Brands, Inc. Extended Term Loan B 3.00%, due 6/5/15		3,018,265		3,030,211
Dean Foods Co. Extended Term Loan B2 3.758%, due 4/2/17		8,543,184		8,457,692
Del Monte Foods Co. Term Loan 4.50%, due 3/8/18		10,200,000		10,241,371
Dole Food Co., Inc. Term Loan C 5.223%, due 3/2/17		5,150,627		5,193,120
Term Loan B 5.50%, due 3/2/17		2,073,730		2,090,839
Michael Foods Group, Inc. Term Loan 4.25%, due 2/23/18		9,169,500		9,240,564
Wm. Bolthouse Farms, Inc. New 1st Lien Term Loan 5.502%, due 2/11/16		7,952,769		7,999,157
				48,911,464
Broadcasting & Entertainment 6.5%
Atlantic Broadband Finance LLC New Term Loan B 4.00%, due 3/8/16		7,359,081		7,397,716
BBHI Acquisition LLC Term Loan B 4.50%, due 12/14/17		7,980,000		8,036,857
Charter Communications Operating LLC Replacement Term Loan 2.22%, due 3/6/14		796,861		795,984
Extended Term Loan 3.56%, due 9/6/16		3,954,811		3,963,436
New Term Loan 7.25%, due 3/6/14		2,374,704		2,409,137
CSC Holdings, Inc. Extended Term Loan B3 2.059%, due 3/29/16		990,000		991,232
Incremental B2 Term Loan 2.059%, due 3/29/16		10,677,183		10,703,875
Emmis Operating Co. Term Loan B 4.308%, due 11/1/13		256,785		237,848
Gray Television, Inc. Term Loan B 3.75%, due 12/31/14		7,302,427		7,240,817
Hubbard Radio LLC Term Loan B TBA, due 4/12/17 (d)		533,300		538,633
Insight Midwest Holdings LLC Initial Term Loan 2.022%, due 4/7/14		3,590,609		3,553,769
Knology, Inc. New Term Loan B 4.00%, due 8/18/17		9,925,125		9,959,248
LodgeNet Entertainment Corp. Term Loan 6.50%, due 4/4/14		620,262		591,833
MCC Iowa LLC Tranche D1 Term Loan 1.94%, due 1/31/15		1,847,547		1,836,000
Mediacom Broadband LLC Tranche F Term Loan 4.50%, due 10/23/17		1,945,300		1,941,248
Univision Communications, Inc. Extended Term Loan 4.461%, due 3/31/17		14,045,786		13,726,244
Weather Channel (The) New Term Loan B 4.25%, due 2/13/17		13,959,314		14,084,362
				88,008,239

12    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Floating Rate Loans (continued)
Buildings & Real Estate 1.8%
Armstrong World Industries, Inc. New Term Loan B 4.00%, due 3/9/18	$	8,785,714	$	8,836,232
Brickman Group Holdings, Inc. New Term Loan B 7.25%, due 10/14/16		6,982,500		7,119,238
Central Parking Corp.
Letter of Credit Term Loan 2.563%, due 5/22/14		568,966		496,423
Term Loan 2.563%, due 5/22/14		1,550,625		1,352,920
CPG International, Inc. New Term Loan B 6.00%, due 2/18/17		3,890,250		3,897,544
Realogy Corp.
Letter of Credit 3.244%, due 10/10/13		323,460		309,376
Term Loan 3.312%, due 10/10/13		2,729,468		2,610,622
				24,622,355
Chemicals, Plastics & Rubber 6.4%
X  Celanese U.S. Holdings LLC Synthetic Letter of Credit 0.244%, due 4/2/14		5,449,917		5,451,623
Extended Term Loan C 3.303%, due 10/31/16		9,583,518		9,644,747
General Chemical Corp. New Term Loan 5.002%, due 3/3/17		6,820,750		6,837,802
Huntsman International LLC New Term Loan 1.742%, due 4/21/14		871,333		861,122
Extended Term Loan B 2.773%, due 4/19/17		2,375,732		2,357,420
INEOS U.S. Finance LLC Term Loan A2 7.001%, due 12/14/12		151,709		157,777
Term Loan B2 7.501%, due 12/16/13		4,561,040		4,714,975
Term Loan C2 8.001%, due 12/16/14		4,968,151		5,135,826
ISP Chemco, Inc. Term Loan 1.75%, due 6/4/14		1,779,879		1,750,956
Nalco Co. Term Loan B1 4.50%, due 10/5/17		8,974,988		9,042,300
Rockwood Specialties Group, Inc. New Term Loan B 3.75%, due 2/9/18		9,802,600		9,894,499
Solutia, Inc. New Term Loan B 3.50%, due 8/1/17		7,963,612		8,004,855
Styron S.A.R.L. LLC New Term Loan B 6.00%, due 8/2/17		9,600,938		9,686,866
Univar, Inc. Term Loan B 5.00%, due 6/30/17		13,564,699		13,659,164
				87,199,932
Containers, Packaging & Glass 4.0%
BWAY Corp. New Term Loan B 4.50%, due 2/23/18		9,035,006		9,097,121
Graham Packaging Co., L.P.
Term Loan D 6.00%, due 9/23/16		1,061,333		1,069,459
Term Loan C 6.75%, due 4/5/14		9,280,144		9,356,993
Graphic Packaging International, Inc. Term Loan B 2.288%, due 5/16/14		2,959,010		2,950,790
Term Loan C 3.041%, due 5/16/14		9,256,653		9,263,077
Reynolds Group Holdings, Inc. Tranche E Term Loan 4.25%, due 2/9/18		11,000,000		11,058,927
Smurfit-Stone Container Enterprises, Inc. Exit Term Loan B 6.75%, due 7/15/16		11,695,660		11,695,660
				54,492,027
Diversified Natural Resources, Precious Metals & Minerals 0.7%
Georgia-Pacific Corp.
Term Loan B2 2.307%, due 12/20/12		1,477,501		1,477,081
New Term Loan B 2.309%, due 12/21/12		5,069,594		5,068,154
New Term Loan C 3.559%, due 12/23/14		2,823,612		2,834,201
				9,379,436
Diversified/Conglomerate Manufacturing 1.0%
Bucyrus International, Inc. Term Loan C 4.25%, due 2/19/16		10,891,854		10,928,157

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Floating Rate Loans (continued)
Diversified/Conglomerate Manufacturing (continued)
Walter Energy, Inc. Term Loan B TBA, due 4/2/18 (d)	$	2,600,000	$	2,620,800
				13,548,957
Diversified/Conglomerate Service 6.1%
Acosta, Inc. Term Loan 4.75%, due 3/1/18		6,835,700		6,875,573
Advantage Sales & Marketing, Inc. Term Loan B 5.25%, due 12/18/17		8,977,500		9,009,217
2nd Lien Term Loan 9.25%, due 6/18/18		1,800,000		1,833,750
Brock Holdings III, Inc. New Term Loan B 6.00%, due 3/16/17		5,500,000		5,506,875
New 2nd Lien Term Loan 10.00%, due 3/16/18		1,350,000		1,370,250
Fidelity National Information Solutions, Inc. Term Loan B 5.25%, due 7/18/16		11,912,133		11,986,584
Fifth Third Processing Solutions LLC Term Loan B 5.50%, due 11/3/16		9,483,750		9,557,249
First Data Corp.
Term Loan B1 2.963%, due 9/24/14		11,905,686		11,298,913
Term Loan B2 2.963%, due 9/24/14		874,576		829,952
Term Loan B3 2.963%, due 9/24/14		890,154		844,735
ServiceMaster Co.
Delayed Draw Term Loan 2.72%, due 7/24/14		941,661		925,855
Term Loan 2.763%, due 7/24/14		9,455,851		9,297,125
SunGard Data Systems, Inc. Tranche A 1.979%, due 2/28/14		4,650,785		4,595,556
Tranche B 3.929%, due 2/26/16		6,779,376		6,799,910
VeriFone, Inc. Term Loan B 2.97%, due 10/31/13		1,312,500		1,292,813
				82,024,357
Ecological 0.2%
Big Dumpster Merger Sub, Inc. Delayed Draw Term Loan B 2.47%, due 2/5/13 (d)		331,011		276,946
Term Loan B 2.47%, due 2/5/13 (d)		786,152		657,748
Synagro Technologies, Inc. Term Loan B 2.23%, due 4/2/14		962,500		907,156
2nd Lien Term Loan 4.98%, due 10/2/14		750,000		686,250
				2,528,100
Electronics 1.7%
AVG Technologies, Inc. Term Loan 7.50%, due 3/11/16		10,000,000		9,800,000
Dealer Computer Services, Inc. New Term Loan B 3.75%, due 4/20/18 (d)		3,500,000		3,527,650
NDS Finance, Ltd. New Term Loan B 4.00%, due 3/12/18		4,900,000		4,915,313
Rovi Solutions Corp. Tranche B Term Loan 4.00%, due 2/7/18		4,693,382		4,728,582
				22,971,545
Finance 2.7%
Brand Energy & Infrastructure Services, Inc. New Term Loan 2.563%, due 2/7/14		2,274,981		2,213,131
Harbourvest Partners LLC Term Loan B 6.25%, due 12/14/16		4,146,680		4,167,413
Hertz Corp. (The)
New Synthetic Letter of Credit 3.75%, due 3/9/18		8,000,000		7,953,336
Term Loan B 3.75%, due 3/9/18		6,000,000		6,049,998
Istar Financial, Inc. Term Loan A2 7.00%, due 6/30/14		8,083,300		8,106,394
MSCI, Inc. Term Loan B1 3.75%, due 3/14/17		8,122,328		8,188,322
				36,678,594
Grocery 0.6%
Roundy’s Supermarkets, Inc. Extended Term Loan 7.00%, due 11/3/13		3,441,343		3,444,571

14    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Floating Rate Loans (continued)
Grocery (continued)
SUPERVALU, Inc. Term Loan A 1.336%, due 6/2/11	$	2,500,000	$	2,493,425
Term Loan B1 1.586%, due 6/1/12		2,621,760		2,612,911
Extended Term Loan B2 3.461%, due 10/5/15		128,620		128,668
				8,679,575
Healthcare, Education & Childcare 10.9%
Alliance Healthcare Services, Inc. Term Loan B 5.50%, due 6/1/16		7,159,375		7,171,310
AMR HoldCo., Inc. New Term Loan 3.216%, due 4/8/15		4,143,750		4,141,160
Bausch & Lomb, Inc. Delayed Draw Term Loan 3.461%, due 4/24/15		1,911,723		1,911,962
Term Loan 3.536%, due 4/24/15		7,863,632		7,864,615
X  Biomet, Inc. Term Loan B 3.281%, due 3/25/15		15,973,566		15,939,622
X  Community Health Systems, Inc. Non-Extended Delayed Draw 2.561%, due 7/25/14		470,438		458,618
Non-Extended Term Loan 2.561%, due 7/25/14		9,143,723		8,913,987
Extended Term Loan B 3.811%, due 1/25/17		8,584,226		8,438,774
X  DaVita, Inc. New Term Loan B 4.50%, due 10/20/16		17,456,250		17,601,573
Gentiva Health Services, Inc. New Term Loan B 4.75%, due 8/17/16		9,255,297		9,351,710
Grifols, Inc. Term Loan B TBA, due 11/23/16 (d)		6,560,609		6,620,068
HCA, Inc.
Term Loan A 1.557%, due 11/19/12		3,000,000		2,991,237
Term Loan B 2.557%, due 11/18/13		7,566,658		7,548,748
Extended Term Loan B2 3.557%, due 3/31/17		3,654,681		3,656,713
Health Management Associates, Inc. Term Loan B 2.057%, due 2/28/14		5,741,320		5,650,607
IASIS Healthcare LLC Term Loan 5.00%, due 5/17/18		2,000,000		2,012,500
Mylan Laboratories, Inc. Term Loan B 3.563%, due 10/2/14		3,107,548		3,117,905
Quintiles Transnational Corp.
Term Loan B 2.31%, due 3/29/13		2,408,355		2,400,829
2nd Lien Term Loan C 4.31%, due 3/31/14		500,000		499,375
Royalty Pharma Finance Trust Term Loan B 2.557%, due 4/16/13		5,574,652		5,572,912
Rural/Metro Operating Co. LLC Term Loan B 6.00%, due 11/24/16		4,488,750		4,511,194
Select Medical Corp. Extended Term Loan B 4.064%, due 8/22/14		3,879,069		3,880,686
Sunrise Medical Holdings, Inc. Term Loan B1 7.00%, due 5/13/14 (d)		1,376,088		1,238,479
Universal Health Services, Inc. New Term Loan B 4.00%, due 11/15/16		9,745,375		9,788,011
Vanguard Health Holding Co. II LLC Term Loan B 5.00%, due 1/29/16		6,435,243		6,449,324
				147,731,919
Home and Office Furnishings, Housewares & Durable Consumer Products 0.6%
Jarden Corp. New Term Loan B 3.242%, due 1/31/17		6,160,000		6,218,520
National Bedding Co. LLC Extended 1st Lien Term Loan 3.813%, due 11/28/13		2,328,235		2,328,235
				8,546,755
Hotels, Motels, Inns & Gaming 1.6%
Ameristar Casinos, Inc. Term Loan B 4.00%, due 4/13/18		4,350,000		4,387,284
Las Vegas Sands LLC Extended Delayed Draw Term Loan 3.00%, due 11/23/16		1,982,687		1,948,611
Extended Term Loan B 3.00%, due 11/23/16 (f)		8,355,633		8,206,234

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Floating Rate Loans (continued)
Hotels, Motels, Inns & Gaming (continued)
Penn National Gaming, Inc. Term Loan B 1.996%, due 10/3/12	$	7,313,931	$	7,297,679
				21,839,808
Insurance 1.0%
Hub International Holdings, Inc. Delayed Draw Term Loan 2.807%, due 6/13/14		174,319		172,489
Initial Term Loan 2.807%, due 6/13/14		775,490		767,347
Add on Term Loan B 6.75%, due 6/13/14		1,984,887		1,981,413
Multiplan, Inc. New Term Loan B 4.75%, due 8/26/17		10,769,231		10,815,000
				13,736,249
Leisure, Amusement, Motion Pictures & Entertainment 3.4%
Cedar Fair, L.P. New Term Loan B 4.00%, due 12/15/17		11,863,406		11,967,127
Cinemark USA, Inc. Extended Term Loan 3.517%, due 4/29/16		4,823,252		4,850,229
Regal Cinemas, Inc. Term Loan B 3.557%, due 8/23/17		10,937,687		10,962,658
Six Flags Theme Parks, Inc. Add on Term Loan B 5.25%, due 6/30/16		6,563,312		6,602,967
Town Sports International, Inc. Term Loan 4.00%, due 2/27/14		1,329,738		1,319,765
Universal City Development Partners, Ltd. New Term Loan B 5.50%, due 11/6/14		10,733,939		10,809,968
				46,512,714
Machinery (Non-Agriculture, Non-Construct & Non-Electronic) 1.4%
Alliance Laundry Systems LLC Term Loan B 6.25%, due 9/30/16		5,047,368		5,095,737
Gleason Corp. New U.S. Term Loan 2.012%, due 6/30/13  (d)		1,268,971		1,256,281
Goodman Global Holdings, Inc. First Lien Term Loan 5.75%, due 10/28/16		3,109,375		3,132,192
2nd Lien Term Loan 9.00%, due 10/30/17		300,000		310,000
Manitowoc Co., Inc. (The) Term Loan B 8.00%, due 11/6/14		1,071,461		1,072,800
Rexnord Corp. Term Loan B 2.791%, due 7/19/13		7,412,851		7,394,319
				18,261,329
Mining, Steel, Iron & Non-Precious Metals 1.1%
JMC Steel Group, Inc. Term Loan 4.75%, due 4/3/17		3,375,000		3,383,437
Novelis, Inc. New Term Loan B 4.00%, due 3/10/17		11,482,500		11,586,566
				14,970,003
Personal & Nondurable Consumer Products (Manufacturing Only) 1.9%
Diversey Holdings, Inc. New Term Loan B 4.00%, due 11/24/15		7,350,422		7,364,204
Spectrum Brands, Inc. New Term Loan B 5.01%, due 6/17/16		2,793,000		2,819,933
X  Visant Holding Corp. Term Loan B 5.25%, due 12/31/16		14,962,500		15,025,941
				25,210,078
Personal Transportation 0.2%
United Airlines, Inc. Term Loan B 2.313%, due 2/3/14		2,708,422		2,635,392
Personal, Food & Miscellaneous Services 1.4%
X  Aramark Corp.
Synthetic Letter of Credit 2.119%, due 1/27/14		629,579		624,594
Term Loan 2.182%, due 1/27/14		6,989,107		6,933,774
Extended Letter of Credit 3.494%, due 7/26/16		707,973		708,100
Extended Term Loan B 3.557%, due 7/26/16		10,750,216		10,752,140
				19,018,608
Printing & Publishing 3.6%
Dex Media East LLC New Term Loan 2.801%, due 10/24/14		1,448,273		1,147,239

16    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Floating Rate Loans (continued)
Printing & Publishing (continued)
F&W Media, Inc. Term Loan 7.75%, due 6/9/14 (d)(e)	$	1,790,818	$	1,549,058
New 2nd Lien Term Loan 15.00%, due 12/9/14 (d)(e)(f)		829,520		485,269
Getty Images, Inc. New Term Loan 5.25%, due 11/7/16		8,450,393		8,529,615
Hanley Wood LLC New Term Loan B 2.624%, due 3/8/14		1,595,922		1,005,431
Lamar Media Corp. Term Loan B 4.00%, due 12/30/16		7,772,499		7,799,702
MediaNews Group New Term Loan 8.50%, due 3/19/14		291,230		291,230
Merrill Communications LLC Term Loan 7.50%, due 12/24/12		5,129,990		5,117,165
X  Nielsen Finance LLC Class A Term Loan 2.231%, due 8/9/13		211,938		211,068
Class C Term Loan 3.731%, due 5/2/16		14,429,569		14,423,552
Class B Term Loan 3.981%, due 5/2/16		1,483,750		1,487,459
Penton Media, Inc. New Term Loan B 5.00%, due 8/1/14 (d)(f)		5,340,040		4,445,584
R.H. Donnelley, Inc. New Term Loan 9.00%, due 10/24/14		2,464,804		1,934,871
SuperMedia, Inc. Exit Term Loan 11.00%, due 12/31/15		1,010,530		677,617
				49,104,860
Retail Store 3.5%
Michaels Stores, Inc. Term Loan B1 2.584%, due 10/31/13		3,493,569		3,459,489
Term Loan B2 4.834%, due 7/31/16		6,048,554		6,073,129
NBTY, Inc. New Term Loan B 4.25%, due 10/2/17		4,389,000		4,416,431
Neiman Marcus Group, Inc. (The) Extended Term Loan B2 4.31%, due 4/6/16		9,221,974		9,227,102
Pantry, Inc. (The)
Delayed Draw Term Loan B 1.97%, due 5/15/14		607,472		595,829
Term Loan B 1.97%, due 5/15/14		2,109,714		2,069,277
Petco Animal Supplies, Inc. New Term Loan 4.50%, due 11/24/17		9,991,650		10,072,832
Pilot Travel Centers LLC New Term Loan B 4.25%, due 3/30/18 (d)		7,196,600		7,235,152
Yankee Candle Co., Inc. (The) Term Loan B 2.22%, due 2/6/14		3,668,416		3,647,018
				46,796,259
Telecommunications 1.5%
MetroPCS Wireless, Inc. New Term Loan B 4.00%, due 3/15/18		1,414,056		1,414,940
Term Loan B 4.071%, due 11/4/13		328,967		328,967
Extended Term Loan B 4.071%, due 11/4/16		6,048,947		6,068,388
Syniverse Technologies, Inc. Term Loan B 5.25%, due 12/21/17		7,281,750		7,348,502
Windstream Corp. Tranche B2 3.017%, due 12/17/15		4,937,343		4,947,924
				20,108,721
Textiles & Leather 0.5%
Phillips-Van Heusen Corp. New Term Loan B1 3.50%, due 5/6/16		3,814,400		3,860,035
Spring Windows Fashions LLC Term Loan B 3.063%, due 12/31/12 (d)		2,245,259		2,242,340
				6,102,375
Utilities 2.4%
AES Corp. Term Loan 2.859%, due 8/10/11		2,000,000		1,995,000
BRSP LLC Term Loan B 7.50%, due 6/4/14		1,450,139		1,461,016

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Floating Rate Loans (continued)
Utilities (continued)
Dynegy Holdings, Inc. Synthetic Letter of Credit 4.03%, due 4/2/13	$	3,026,895	$	3,013,652
Term Loan B 4.03%, due 4/2/13		220,734		219,768
Equipower Resources Holdings LLC Term Loan B 5.75%, due 1/26/18		2,400,000		2,418,000
X  NRG Energy, Inc. Synthetic Letter of Credit 2.057%, due 2/1/13		4,864,642		4,847,159
Term Loan 2.057%, due 2/1/13		2,783,584		2,773,580
Extended Term Loan B 3.502%, due 8/31/15		3,869,423		3,895,422
Extended Letter of Credit 3.557%, due 8/31/15		5,116,676		5,140,663
Texas Competitive Electric Holdings Co. LLC Extended Term Loan 4.736%, due 10/10/17		5,571,479		4,464,426
TPF Generation Holdings LLC Synthetic Revolver 0.207%, due 12/15/11		8,196		8,124
Synthetic Letter of Credit 0.207%, due 12/13/13		26,144		25,915
Term Loan B 2.307%, due 12/15/13		53,580		53,111
2nd Lien Term Loan C 4.557%, due 12/15/14		1,600,000		1,556,000
TPF II LC LLC Term Loan B 3.057%, due 10/15/14 (d)		1,127,510		1,082,409
				32,954,245
Total Floating Rate Loans (Cost $1,060,232,906)				1,062,825,275
Foreign Floating Rate Loans 3.6% (c)
Broadcasting & Entertainment 0.3%
UPC Financing Partnership
Term Loan T 3.744%, due 12/30/16		1,762,638		1,764,841
Term Loan X 3.744%, due 12/29/17		3,241,439		3,244,140
				5,008,981
Chemicals, Plastics & Rubber 0.5%
Brenntag Holding GmbH & Co.
Acquisition Term Loan 3.725%, due 1/20/14		1,821,233		1,821,233
Term Loan B2 3.743%, due 1/20/14		4,868,406		4,868,406
				6,689,639
Containers, Packaging & Glass 0.1%
BWAY Corp. Canadian Term Loan C 4.50%, due 2/23/18		802,156		807,169
Electronics 0.7%
Flextronics International, Ltd.
Delayed Draw A1-A Term Loan 2.463%, due 10/1/14		1,104,625		1,096,142
Term Loan A 2.492%, due 10/1/14		3,844,093		3,814,575
Term Loan B 2.494%, due 10/1/12		4,417,373		4,388,846
				9,299,563
Leisure, Amusement, Motion Pictures & Entertainment 0.1%
Bombardier Recreational Products, Inc. Term Loan 2.786%, due 6/28/13 (d)		1,292,986		1,279,248
Printing & Publishing 0.1%
Yell Group PLC New Term Loan B1 3.961%, due 7/31/14		2,773,896		1,084,593
Telecommunications 1.8%
X  Intelsat Jackson Holdings, Ltd. Tranche B Term Loan 5.25%, due 4/2/18		17,000,000		17,151,402
Telesat Canada
U.S. Term I Loan 3.22%, due 10/31/14		7,181,837		7,170,295
U.S. Term II Loan 3.22%, due 10/31/14		616,903		615,912
				24,937,609
Total Foreign Floating Rate Loans (Cost $50,384,151)				49,106,802
Yankee Bonds 1.1% (g)
Aerospace & Defense 0.3%
Bombardier, Inc. 7.50%, due 3/15/18 (a)		4,200,000		4,656,750

18    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount			Value
Yankee Bonds (continued)
Leisure, Amusement, Motion Pictures & Entertainment 0.5%
Royal Caribbean Cruises, Ltd. 7.25%, due 3/15/18	$	6,000,000		$	6,345,000
Mining, Steel, Iron & Non-Precious Metals 0.3%
FMG Resources August 2006 Pty, Ltd. 6.375%, due 2/1/16 (a)		4,000,000			4,090,000
Total Yankee Bonds (Cost $14,653,054)					15,091,750
Total Long-Term Bonds (Cost $1,257,600,659)					1,266,386,791
	Shares
Common Stocks 0.1%
Beverage, Food & Tobacco 0.0%‡
Nellson Nutraceutical, Inc. (d)(e)		379			276,147
Leisure, Amusement, Motion Pictures & Entertainment 0.1%
MGM Studios, Inc. (d)(e)		53,236			1,264,355
Printing & Publishing 0.0%‡
F&W Publications, Inc. (d)(e)(h)		6,055			61
SuperMedia, Inc. (h)		5,307			27,278
					27,339
Total Common Stocks (Cost $2,235,617)					1,567,841
	Principal
	Amount
Short-Term Investments 8.5%
Other Commercial Paper 5.3%
Archer-Daniels-Midland Co. 0.14%, due 5/23/11 (a)(i)	$	10,000,000			9,999,145
Basin Electric Power Cooperative, Inc. 0.21%, due 5/16/11 (a)(i)		7,700,000			7,699,326
Electricite de France 0.20%, due 5/31/11 (a)(i)		15,000,000			14,997,500
General Electric Capital Corp. 0.12%, due 6/13/11(i)		15,000,000			14,997,850
John Deere Bank S.A. 0.16%, due 5/4/11 (a)(i)		9,800,000			9,799,869
Roche Holding, Inc. 0.15%, due 5/5/11 (a)(i)		14,000,000			13,999,767
Total Other Commercial Paper (Cost $71,493,457)					71,493,457
Repurchase Agreements 3.2%
BNP Paribas 0.04%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $39,013,130 (Collateralized by a U.S. Government Agency Obligation with a rate of 2.00% and a maturity date of 9/14/12, with a Principal Amount of $38,885,000 and a Market Value of $39,797,631)		39,013,000			39,013,000
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $3,731,509 (Collateralized by a United States Treasury Bill with a rate of 0.025% and a maturity date of 7/21/11, with a Principal Amount of $3,810,000 and a Market Value of $3,809,780)		3,731,506			3,731,506
Total Repurchase Agreements (Cost $42,744,506)					42,744,506
Total Short-Term Investments (Cost $114,237,963)					114,237,963
Total Investments (Cost $1,374,074,239) (j)		102.0	%		1,382,192,595
Other Assets, Less Liabilities		(2.0	)		(26,476,698	)
Net Assets		100.0	%	$	1,355,715,897

‡	Less than one-tenth of a percent.
(a)	May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.
(b)	Floating rate—Rate shown is the rate in effect at April 30, 2011.
(c)	Floating Rate Loan—generally pays interest at rates which are periodically re-determined at a margin above the London InterBank Offered Rate (“LIBOR”) or other short-term rates. The rate shown is the rate(s) in effect at April 30, 2011. Floating Rate Loans are generally considered restrictive in that the Fund is ordinarily contractually obligated to receive consent from the Agent Bank and/or borrower prior to disposition of a Floating Rate Loan.
(d)	Illiquid security. The total market value of these securities at April 30, 2011 is $44,801,991, which represents 3.3% of the Fund’s net assets.
(e)	Fair valued security. The total market value of these securities at April 30, 2011 is $3,574,890, which represents 0.3% of the Fund’s net assets.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

(f)	PIK (“Payment in Kind”)—security which may pay all or a portion of interest in additional securities.
(g)	Yankee Bond—dollar-denominated bond issued in the United States by a foreign bank or corporation.
(h)	Non-income producing security.
(i)	Interest rate presented is yield to maturity.
(j)	At April 30, 2011, cost is $1,374,038,042 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	18,005,748
Gross unrealized depreciation		(9,851,195	)
Net unrealized appreciation	$	8,154,553

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Long-Term Bonds
Corporate Bonds	$	—	$	139,362,964	$	—	$	139,362,964
Floating Rate Loans (b)		—		1,060,790,948		2,034,327		1,062,825,275
Foreign Floating Rate Loans		—		49,106,802		—		49,106,802
Yankee Bonds		—		15,091,750		—		15,091,750
Total Long-Term Bonds		—		1,264,352,464		2,034,327		1,266,386,791
Common Stocks (c)		27,278		—		1,540,563		1,567,841
Short-Term Investments
Other Commercial Paper		—		71,493,457		—		71,493,457
Repurchase Agreements		—		42,744,506		—		42,744,506
Total Short-Term Investments		—		114,237,963		—		114,237,963
Total Investments in Securities	$	27,278	$	1,378,590,427	$	3,574,890	$	1,382,192,595

(a)	For a complete listing of investments and their industries, see the Portfolio of Investments.
(b)	The level 3 securities valued at $1,549,058 and $485,269 are held in Printing & Publishing within the Floating Rate Loans section of the Portfolio of Investments.
(c)	The level 3 securities valued at $276,147, $1,264,355 and $61 are held in Beverage, Food & Tobacco, Leisure, Amusement, Motion Pictures & Entertainment and Printing & Publishing within the Common Stocks section of the Portfolio of Investments.

The Fund recognizes transfers between the levels as of the beginning of the period.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

																						Change in
																						Unrealized
																						Appreciation
																						(Depreciation)
																						from
	Balance							Change in												Balance		Investments
	as of		Accrued		Realized			Unrealized								Transfers		Transfers		as of		Still Held at
	October 31,		Discounts		Gain			Appreciation								in to		out of		April 30,		April 30,
Investments in Securities	2010		(Premiums)		(Loss)			(Depreciation)			Purchases		Sales			Level 3		Level 3		2011		2011 (a)
Long-Term Bonds
Floating Rate Loans
Printing & Publishing	$	2,642,500	$	—	$	—		$	(586,011	)	$	50,268	$	(72,430	)	$	—	$	—	$	2,034,327	$	(586,011	)
Common Stocks
Beverage, Food & Tobacco		265,475		—		—			10,672			—		—			—		—		276,147		10,672
Leisure, Amusement, Motion Pictures & Entertainment		—		—		—			—			—		—			1,264,355		—		1,264,355		—
Printing & Publishing		409,280		—		(286,863	)		427,284			—		(549,640	)		—		—		61		(66,244	)
Total	$	3,317,255	$	—	$	(286,863	)	$	(148,055	)	$	50,268	$	(622,070	)	$	1,264,355	$	—	$	3,574,890	$	(641,583	)

(a)  Included in “Net change in unrealized appreciation (depreciation) on investments” in the Statement of Operations.

20    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $1,374,074,239)	$	1,382,192,595
Cash		8,501,991
Receivables:
Fund shares sold		8,427,718
Interest		6,535,560
Investment securities sold		5,958,891
Other assets		119,526
Total assets		1,411,736,281
Liabilities
Payables:
Investment securities purchased		51,733,079
Fund shares redeemed		2,017,539
Manager (See Note 3)		652,505
NYLIFE Distributors (See Note 3)		307,113
Transfer agent (See Note 3)		150,112
Professional fees		104,118
Shareholder communication		35,320
Custodian		5,494
Trustees		2,633
Accrued expenses		2,190
Dividend payable		1,010,281
Total liabilities		56,020,384
Net assets	$	1,355,715,897
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	142,111
Additional paid-in capital		1,402,959,470
		1,403,101,581
Undistributed net investment income		87,377
Accumulated net realized gain (loss) on investments and foreign currency transactions		(55,591,417	)
Net unrealized appreciation (depreciation) on investments		8,118,356
Net assets	$	1,355,715,897
Investor Class
Net assets applicable to outstanding shares	$	25,272,944
Shares of beneficial interest outstanding		2,649,571
Net asset value per share outstanding	$	9.54
Maximum sales charge (3.00% of offering price)		0.30
Maximum offering price per share outstanding	$	9.84
Class A
Net assets applicable to outstanding shares	$	565,357,318
Shares of beneficial interest outstanding		59,274,376
Net asset value per share outstanding	$	9.54
Maximum sales charge (3.00% of offering price)		0.30
Maximum offering price per share outstanding	$	9.84
Class B
Net assets applicable to outstanding shares	$	17,115,155
Shares of beneficial interest outstanding		1,793,156
Net asset value and offering price per share outstanding	$	9.54
Class C
Net assets applicable to outstanding shares	$	214,913,833
Shares of beneficial interest outstanding		22,524,409
Net asset value and offering price per share outstanding	$	9.54
Class I
Net assets applicable to outstanding shares	$	533,056,647
Shares of beneficial interest outstanding		55,869,556
Net asset value and offering price per share outstanding	$	9.54

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Interest (a)	$	27,267,879
Expenses
Manager (See Note 3)		3,527,898
Distribution/Service—Investor Class (See Note 3)		29,304
Distribution/Service—Class A (See Note 3)		621,757
Distribution/Service—Class B (See Note 3)		86,034
Distribution/Service—Class C (See Note 3)		963,846
Transfer agent (See Note 3)		537,994
Professional fees		111,762
Registration		78,728
Shareholder communication		71,154
Custodian		17,350
Trustees		16,034
Miscellaneous		31,834
Total expenses		6,093,695
Net investment income (loss)		21,174,184
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions		3,595,450
Foreign currency transactions		16,046
Net realized gain (loss) on investments and foreign currency transactions		3,611,496
Net change in unrealized appreciation (depreciation) on:
Investments		9,526,361
Translation of other assets and liabilities in foreign currencies		(7,759	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		9,518,602
Net realized and unrealized gain (loss) on investments and foreign currency transactions		13,130,098
Net increase (decrease) in net assets resulting from operations	$	34,304,282

(a)  Interest recorded net of foreign withholding taxes in the amount of $3,437.

22    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	21,174,184		$	30,234,168
Net realized gain (loss) on investments and foreign currency transactions		3,611,496			(1,039,386	)
Net change in unrealized appreciation (depreciation) on investments, unfunded commitments and foreign currency translations		9,518,602			41,832,777
Net increase (decrease) in net assets resulting from operations		34,304,282			71,027,559
Dividends to shareholders:
From net investment income:
Investor Class		(409,936	)		(763,120	)
Class A		(8,907,092	)		(13,876,325	)
Class B		(237,663	)		(515,764	)
Class C		(2,674,868	)		(4,254,049	)
Class I		(8,707,204	)		(10,816,347	)
Total dividends to shareholders		(20,936,763	)		(30,225,605	)
Capital share transactions:
Net proceeds from sale of shares		521,297,714			428,461,625
Net asset value of shares issued to shareholders in reinvestment of dividends		15,865,301			22,548,577
Cost of shares redeemed		(180,158,308	)		(229,660,828	)(a)
Increase (decrease) in net assets derived from capital share transactions		357,004,707			221,349,374
Net increase (decrease) in net assets		370,372,226			262,151,328
Net Assets
Beginning of period		985,343,671			723,192,343
End of period	$	1,355,715,897		$	985,343,671
Undistributed (distributions in excess of) net investment income at end of period	$	87,377		$	(150,044	)

(a)  Cost of shares redeemed net of redemption fee of $17,341 for the year ended October 31, 2010. (See Note 2(J)).

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    23

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	9.42		$	8.97		$	7.61		$	8.94
Net investment income (loss)		0.16			0.32			0.29			0.28
Net realized and unrealized gain (loss) on investments		0.12			0.45			1.36			(1.33	)
Total from investment operations		0.28			0.77			1.65			(1.05	)
Less dividends:
From net investment income		(0.16	)		(0.32	)		(0.29	)		(0.28	)
Redemption fee (a)		—			0.00	‡		0.00	‡		0.00	‡
Net asset value at end of period	$	9.54		$	9.42		$	8.97		$	7.61
Total investment return (b)		3.04	%(c)		8.76	%		22.32	%		(12.19	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.54	%††		3.52	%		3.63	%		4.43	% ††
Net expenses		1.07	%††		1.10	%		1.19	%		1.05	% ††
Portfolio turnover rate		8	%		10	%		17	%		10	%
Net assets at end of period (in 000’s)	$	25,273		$	23,245		$	20,191		$	14,586

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	The redemption fee was discontinued as of April 1, 2010.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	9.42		$	8.97		$	7.61		$	9.65		$	9.93		$	9.99
Net investment income (loss)		0.17			0.33			0.31			0.46			0.62			0.59
Net realized and unrealized gain (loss) on investments		0.12			0.45			1.36			(2.03	)		(0.28	)		(0.06	)
Total from investment operations		0.29			0.78			1.67			(1.57	)		0.34			0.53
Less dividends:
From net investment income		(0.17	)		(0.33	)		(0.31	)		(0.47	)		(0.62	)		(0.59	)
Redemption fee (a)		—			0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Net asset value at end of period	$	9.54		$	9.42		$	8.97		$	7.61		$	9.65		$	9.93
Total investment return (b)		3.08	%(c)		8.87	%		22.53	%		(16.91	%)		3.65	%		5.34	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.63	%††		3.62	%		3.80	%		5.36	%		6.34	%		5.95	%
Net expenses		0.98	%††		1.00	%		1.01	%		1.00	%		1.01	%		1.00	%
Portfolio turnover rate		8	%		10	%		17	%		10	%		29	%		8	%
Net assets at end of period (in 000’s)	$	565,357		$	429,262		$	338,350		$	245,193		$	631,749		$	692,411

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	The redemption fee was discontinued as of April 1, 2010.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

24    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class B
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	9.43		$	8.97		$	7.61		$	9.65		$	9.93		$	9.99
Net investment income (loss)		0.13			0.25			0.23			0.39			0.55			0.51
Net realized and unrealized gain (loss) on investments		0.11			0.46			1.36			(2.03	)		(0.28	)		(0.06	)
Total from investment operations		0.24			0.71			1.59			(1.64	)		0.27			0.45
Less dividends:
From net investment income		(0.13	)		(0.25	)		(0.23	)		(0.40	)		(0.55	)		(0.51	)
Redemption fee (a)		—			0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Net asset value at end of period	$	9.54		$	9.43		$	8.97		$	7.61		$	9.65		$	9.93
Total investment return (b)		2.56	%(c)		8.06	%		21.41	%		(17.66	%)		2.88	%		4.66	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.80	%††		2.76	%		2.95	%		4.51	%		5.59	%		5.20	%
Net expenses		1.82	%††		1.85	%		1.94	%		1.79	%		1.76	%		1.75	%
Portfolio turnover rate		8	%		10	%		17	%		10	%		29	%		8	%
Net assets at end of period (in 000’s)	$	17,115		$	17,665		$	20,289		$	20,703		$	47,141		$	53,466

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	The redemption fee was discontinued as of April 1, 2010.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

	Class C
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	9.43		$	8.97		$	7.61		$	9.65		$	9.93		$	9.99
Net investment income (loss)		0.13			0.25			0.24			0.39			0.55			0.51
Net realized and unrealized gain (loss) on investments		0.11			0.46			1.35			(2.03	)		(0.28	)		(0.06	)
Total from investment operations		0.24			0.71			1.59			(1.64	)		0.27			0.45
Less dividends:
From net investment income		(0.13	)		(0.25	)		(0.23	)		(0.40	)		(0.55	)		(0.51	)
Redemption fee (a)		—			0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Net asset value at end of period	$	9.54		$	9.43		$	8.97		$	7.61		$	9.65		$	9.93
Total investment return (b)		2.56	%(c)		8.06	%		21.41	%		(17.66	%)		2.88	%		4.66	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.82	%††		2.76	%		2.89	%		4.52	%		5.59	%		5.20	%
Net expenses		1.80	%††		1.85	%		1.94	%		1.79	%		1.76	%		1.75	%
Portfolio turnover rate		8	%		10	%		17	%		10	%		29	%		8	%
Net assets at end of period (in 000’s)	$	214,914		$	173,005		$	132,105		$	104,048		$	232,130		$	242,469

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	The redemption fee was discontinued as of April 1, 2010.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    25

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	9.43		$	8.97		$	7.61		$	9.65		$	9.93		$	9.99
Net investment income (loss)		0.18			0.36			0.33			0.50			0.66			0.61
Net realized and unrealized gain (loss) on investments		0.11			0.46			1.36			(2.04	)		(0.28	)		(0.06	)
Total from investment operations		0.29			0.82			1.69			(1.54	)		0.38			0.55
Less dividends:
From net investment income		(0.18	)		(0.36	)		(0.33	)		(0.50	)		(0.66	)		(0.61	)
Redemption fee (a)		—			0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Net asset value at end of period	$	9.54		$	9.43		$	8.97		$	7.61		$	9.65		$	9.93
Total investment return (b)		3.09	%(c)		9.26	%		22.84	%		(16.67	%)		3.89	%		5.71	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.89	%††		3.87	%		3.97	%		5.33	%		6.68	%		6.20	%
Net expenses		0.72	%††		0.75	%		0.77	%		0.71	%		0.67	%		0.75	%
Portfolio turnover rate		8	%		10	%		17	%		10	%		29	%		8	%
Net assets at end of period (in 000’s)	$	533,057		$	342,167		$	212,257		$	103,930		$	61,992		$	47,743

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	The redemption fee was discontinued as of April 1, 2010.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.

26    MainStay Floating Rate Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Floating Rate Fund (the “Fund”), a diversified fund. The Fund is the successor of the MainStay Floating Rate Fund, a series of Eclipse Funds Inc. (the “Predecessor Fund”). The reorganization of the Predecessor Fund with and into the Fund occurred on February 26, 2010. All information and references to periods prior to February 26, 2010 relate to the Predecessor Fund.

The Fund currently offers five classes of shares. Class A shares, Class B shares, Class C shares and Class I shares commenced operations on May 3, 2004. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $500,000 or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class B shares and Class C shares are offered at NAV without an initial sales charge, although a declining CDSC may be imposed on redemptions made within four years of purchase of Class B shares and a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Class B shares convert to Investor Class or Class A shares at the end of the calendar quarter four years after the date they were purchased. Additionally, depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek to provide high current income.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

mainstayinvestments.com    27

Notes to Financial Statements (unaudited) (continued)

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities are valued at the evaluated bid prices supplied by a pricing agent or brokers selected by the Fund’s Manager (as defined in Note 3(A)) in consultation with the Fund’s Subadvisor (as defined in Note 3(A)) whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by the Fund’s Manager, in consultation with the Fund’s Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Debt securities, including corporate bonds, U.S. government & federal agency bonds, municipal bonds, foreign bonds, Yankee bonds, convertible bonds, asset-backed securities, and mortgage-backed securities, are generally categorized as Level 2 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Foreign currency forward contracts are valued at their fair market values determined on the basis of the mean between the last current bid and ask prices based on dealer or exchange quotations and are generally categorized as Level 2 in the hierarchy.

Loan assignments, participations and commitments are valued at the average of bid quotations obtained from a pricing service, and are generally categorized as Level 2 in the hierarchy. The Fund has engaged an independent pricing service to provide market value quotations from dealers in loans.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund held securities with a value of $3,574,890 that were valued in such a manner.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued. Its illiquidity might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of a Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in determining value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor determines the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued in such manner as the Board in good faith deems appropriate to reflect their fair market value.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund declares dividends of net investment income daily and the Fund pays them monthly and declares and pays distribution of net realized capital gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

28    MainStay Floating Rate Fund

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Foreign Currency Transactions. The books and records of the Fund are kept in U.S. dollars. Prices of securities denominated in foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling exchange rates last quoted by any major U.S. bank at the following dates:

(i)  market value of investment securities, other assets and liabilities—at the valuation date, and

(ii)  purchases and sales of investment securities, income and expenses—at the date of such transactions.

The assets and liabilities that are denominated in foreign currency amounts are presented at the exchange rates and market values at the close of the period. The realized and unrealized changes in net assets arising from fluctuations in exchange rates and market prices of securities are not separately presented.

Net realized gain (loss) on foreign currency transactions represents net gains and losses on foreign currency forward contracts, net currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the Fund’s books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or losses from valuing such foreign currency denominated assets and liabilities, other than investments at valuation date exchange rates, are reflected in unrealized foreign exchange gains or losses.

(I) Loan Assignments, Participations and Commitments. The Fund invests in loan assignments and loan participations. Loan assignments and participations (“loans”) are agreements to make money available (a “commitment”) to a borrower in a specified amount, at a specified rate and within a specified time. Such loans are typically senior, secured and collateralized in nature. The Fund records an investment when the borrower withdraws money and records interest as earned. These loans pay interest at rates that are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the London InterBank Offered Rate (“LIBOR”).

The loans in which the Fund invests are generally readily marketable, but may be subject to some restrictions on resale. For example, the Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

The Fund assumes the credit risk of the borrower, the selling participant and any other persons interpositioned between the Fund and the borrower (“intermediate participants”). In the event that the borrower, selling participant or intermediate participants become insolvent or enters into bankruptcy, the Fund may incur certain costs and delays in realizing payment, or may suffer a loss of principal and/or interest.

Unfunded commitments represent the remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion. These unfunded amounts are marked to market and recorded in the Statement of Assets and Liabilities. At April 30, 2011, the Fund did not hold unfunded commitments.

(J) Redemption Fee. Prior to April 1, 2010, the Fund imposed a 2.00% redemption fee on redemptions (including exchanges) of Fund shares made within 60 days of their date of purchase for any class. The redemption fee was designed to offset brokerage commissions and other costs associated with short-term trading and was not assessed on shares acquired through the reinvestment of dividends or distributions paid by the Fund. The redemption fees are included in the Statement of Changes in Net Assets’ shares redeemed amount and were retained by the Fund for the fiscal year ended October 31, 2010.

(K) Rights/Warrants. A right is a certificate that permits the holder to purchase a certain number of shares, or a fractional share, of a

mainstayinvestments.com    29

Notes to Financial Statements (unaudited) (continued)

new stock from the issuer at a specific price. A warrant is an instrument that entitles the holder to buy an equity security at a specific price for a specific period of time. The Fund generally enters into rights and warrants when securities are acquired through a corporate action. With respect to warrants in international markets, the securities are only purchased when the underlying security can not be purchased due to the many restrictions an industry and/or country might place on foreign investors. These investments can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of these investments do not necessarily move in tandem with the prices of the underlying securities, and are speculative investments.

There is risk involved in the purchase of rights and warrants in that these investments are speculative investments. The Fund could also lose the entire value of the investment in warrants if the warrant is not exercised by the date of its expiration. The securities are sold as soon as the opportunity becomes available. The Fund is exposed to risk until each sale is completed.

(L) Concentration of Risk. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific country, industry or region.

The Fund invests in floating rate loans. The floating rate loans in which the Fund principally invests are usually rated below investment grade and are generally considered speculative because they present a greater risk of loss, including default, than higher rated debt securities. These securities pay investors a higher interest rate because of the increased risk of loss. Although certain floating rate loans are collateralized, there is no guarantee that the value of the collateral will be sufficient to repay the loan. In a recession or serious credit event, the Fund’s net asset value could go down and you could lose money.

(M) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A) Manager. New York Life Investment Management LLC (“New York Life Investments” or “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. The Fund is advised by New York Life Investments directly, without a subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.60% up to $1 billion and 0.575% in excess of $1 billion. The effective management fee rate was 0.60% for the six-month period ended April 30, 2011.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $3,527,898.

State Street Bank and Trust Company (“State Street”), 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from the Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and Class C shares of the Fund pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Fund’s Class B and Class C shares along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class B and Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $4,669 and $44,269, respectively, for the six-month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Investor Class, Class A, Class B and Class C shares of $92, $15,244, $6,373 and $26,980, respectively, for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc.

30    MainStay Floating Rate Fund

(“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	19,072
Class A		184,084
Class B		14,015
Class C		156,570
Class I		167,494

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Class A	$	14,059,469	2.5	%
Class C		1,233	0.0	‡
Class I		1,323	0.0	‡

‡  Less than one-tenth of a percent.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $16,590. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $59,213,028 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss	Capital Loss
Available Through	Amounts (000’s)
2012	$	229
2013		3,166
2014		1,437
2015		14,042
2016		30,852
2017		7,484
2018		2,003
Total	$	59,213

The tax character of distributions paid during the year ended October 31, 2010, shown in the Statement of Changes in Net Assets, was as follows:

	2010
Distributions paid from:
Ordinary Income	$	30,225,605

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $732,964 and $92,143, respectively.

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Notes to Financial Statements (unaudited) (continued)

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		411,323		$	3,911,550
Shares issued to shareholders in reinvestment of dividends		41,172			391,436
Shares redeemed		(258,830	)		(2,458,043	)
Net increase (decrease) in shares outstanding before conversion		193,665			1,844,943
Shares converted into Investor Class (See Note 1)		158,084			1,500,185
Shares converted from Investor Class (See Note 1)		(168,831	)		(1,599,540	)
Net increase (decrease)		182,918		$	1,745,588
Year ended October 31, 2010:
Shares sold		569,826		$	5,248,834
Shares issued to shareholders in reinvestment of dividends		79,154			729,782
Shares redeemed		(524,154	)		(4,822,726	)
Net increase (decrease) in shares outstanding before conversion		124,826			1,155,890
Shares converted into Investor Class (See Note 1)		342,777			3,155,746
Shares converted from Investor Class (See Note 1)		(252,310	)		(2,320,056	)
Net increase (decrease)		215,293		$	1,991,580
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		21,331,531		$	202,746,359
Shares issued to shareholders in reinvestment of dividends		710,963			6,760,170
Shares redeemed		(8,604,486	)		(81,770,262	)
Net increase (decrease) in shares outstanding before conversion		13,438,008			127,736,267
Shares converted into Class A (See Note 1)		344,064			3,258,457
Shares converted from Class A (See Note 1)		(60,498	)		(574,735	)
Net increase (decrease)		13,721,574		$	130,419,989
Year ended October 31, 2010:
Shares sold		23,860,957		$	220,068,241
Shares issued to shareholders in reinvestment of dividends		1,064,051			9,818,280
Shares redeemed		(14,879,869	)		(136,858,227	)
Net increase (decrease) in shares outstanding before conversion		10,045,139			93,028,294
Shares converted into Class A (See Note 1)		548,278			5,031,435
Shares converted from Class A (See Note 1)		(117,042	)		(1,089,324	)
Shares converted from Class A (a)		(2,653,153	)		(24,329,410	)
Net increase (decrease)		7,823,222		$	72,640,995
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		377,536		$	3,589,784
Shares issued to shareholders in reinvestment of dividends		19,735			187,739
Shares redeemed		(204,906	)		(1,948,915	)
Net increase (decrease) in shares outstanding before conversion		192,365			1,828,608
Shares converted from Class B (See Note 1)		(272,531	)		(2,584,367	)
Net increase (decrease)		(80,166	)	$	(755,759	)
Year ended October 31, 2010:
Shares sold		554,068		$	5,113,381
Shares issued to shareholders in reinvestment of dividends		45,872			422,904
Shares redeemed		(466,149	)		(4,286,913	)
Net increase (decrease) in shares outstanding before conversion		133,791			1,249,372
Shares converted from Class B (See Note 1)		(521,387	)		(4,777,801	)
Net increase (decrease)		(387,596	)	$	(3,528,429	)
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		6,146,295		$	58,422,278
Shares issued to shareholders in reinvestment of dividends		186,166			1,770,486
Shares redeemed		(2,161,251	)		(20,530,597	)
Net increase (decrease)		4,171,210		$	39,662,167
Year ended October 31, 2010:
Shares sold		7,950,008		$	73,253,954
Shares issued to shareholders in reinvestment of dividends		296,201			2,733,048
Shares redeemed		(4,619,304	)		(42,462,801	)
Net increase (decrease)		3,626,905		$	33,524,201
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		26,601,183		$	252,627,743
Shares issued to shareholders in reinvestment of dividends		710,114			6,755,470
Shares redeemed		(7,742,250	)		(73,450,491	)
Net increase (decrease)		19,569,047		$	185,932,722
Year ended October 31, 2010:
Shares sold		13,483,091		$	124,777,215
Shares issued to shareholders in reinvestment of dividends		958,859			8,844,563
Shares redeemed		(4,456,479	)		(41,230,161	)
Net increase (decrease) in shares outstanding before conversion		9,985,471			92,391,617
Shares converted into Class I (a)		2,653,153			24,329,410
Net increase (decrease)		12,638,624		$	116,721,027

(a)  In addition to any automatic conversion features described above in Note 1 with respect to Investor Class, Class A and B shares, an investor generally may also elect to convert their shares on a voluntary basis into another

32    MainStay Floating Rate Fund

share class of the same fund for which an investor is eligible. However, the following limitations apply:

•  Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and

•  All Class B and C shares are ineligible for a voluntary conversion.

These limitations do not impact any automatic conversion features described in Note 1 with respect to Investor Class, Class A and B shares.

An investor or an investor’s financial intermediary may contact the Fund to request a voluntary conversion between shares classes of the same Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will be made on the basis of the relevant NAVs of the two classes without the imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an investor may automatically be converted back to their original share class, or into another share class, if appropriate.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

mainstayinvestments.com    33

Board Consideration and Approval of Management Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreement. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Floating Rate Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”).

The Board previously considered and approved this agreement (the “Agreement”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreement in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decision to approve the Agreement, the Board particularly considered information presented to the Board by New York Life Investments as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreement, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments; (ii) the investment performance of the Fund and New York Life Investments; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decision to approve the Agreement was based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year with respect to New York Life Investments and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreement also were based, in part, on the Board’s consideration of the Agreement earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decision to approve the Agreement is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments

In considering the approval of the Agreement, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds and serves a variety of other investment advisory clients, including other pooled investment vehicles. The Board considered the experience of senior personnel at New York Life Investments providing investment advisory, management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and New York Life Investments’ method for compensating portfolio managers. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreement, that the Fund likely would continue to benefit from the nature, extent and

34    MainStay Floating Rate Fund

quality of these services as a result of New York Life Investments’ experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreement, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments to enhance investment returns, supported a determination to approve the Agreement. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments

The Board considered the costs of the services provided by New York Life Investments under the Agreement, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Fund.

In evaluating any costs and profits of New York Life Investments and its affiliates due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ investments in personnel, systems, equipment and other resources necessary to manage the Fund. The Board acknowledged that New York Life Investments must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreement, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreement, that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund supported the Board’s determination to approve the Agreement.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund

mainstayinvestments.com    35

Board Consideration and Approval of Management Agreement (Unaudited) (continued)

in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreement, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreement and the Fund’s expected total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreement, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreement.

36    MainStay Floating Rate Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; or (ii) on the SEC’s website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX is available free of charge upon request (i) by calling 800-MAINSTAY (624-6782); (ii) by visiting the Fund’s website at mainstayinvestments.com; or (iii) on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling (1-800-SEC-0330).

mainstayinvestments.com    37

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23019 MS136-11 MSFR10-06/11

A4

MainStay Growth Equity Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	10
Financial Statements	13
Notes to Financial Statements	19
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	26
Proxy Voting Policies and Procedures and Proxy Voting Record	29
Shareholder Reports and Quarterly Portfolio Disclosure	29

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

												Since			Gross
												Inception			Expense
Class	Sales Charge		Six Months			One Year			Five Years			(11/4/05)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		8	.83%		11	.07%		1	.71%		2	.64%		1	.53%
		Excluding sales charges		15	.16		17	.53		2	.87		3	.71		1	.53
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		8	.89		11	.35		1	.82		2	.74		1	.24
		Excluding sales charges		15	.23		17	.83		2	.98		3	.81		1	.24
Class B Shares	Maximum 5% CDSC	With sales charges		9	.68		11	.65		1	.70		2	.74		2	.28
	if Redeemed Within the First Six Years of Purchase	Excluding sales charges		14	.68		16	.65		2	.07		2	.90		2	.28
Class C Shares	Maximum 1% CDSC	With sales charges		13	.78		15	.63		2	.09		2	.92		2	.28
	if Redeemed Within One Year of Purchase	Excluding sales charges		14	.78		16	.63		2	.09		2	.92		2	.28
Class I Shares	No Sales Charge			15	.43		18	.13		3	.29		4	.11		0	.99

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount being shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares from inception through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Since
Benchmark Performance	Months			Year			Years			Inception
Russell 1000® Growth Index4		16	.96%		20	.87%		5	.06%		5	.63%
Average Lipper Large-Cap Growth Fund5		15	.13		18	.35		3	.47		4	.20

4.

The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values. Total returns assume reinvestment of all dividends and capital gains. The Russell 1000® Growth Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.

5.

The average Lipper large-cap growth fund is representative of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s U.S. Diversified Equity large-cap floor. Large-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500® Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested.

The footnotes on the preceding page is an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Growth Equity Fund

Cost in Dollars of a $1,000 Investment in MainStay Growth Equity Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,151.60	$	7.74	$	1,017.60	$	7.25
Class A Shares	$	1,000.00	$	1,152.30	$	6.35	$	1,018.90	$	5.96
Class B Shares	$	1,000.00	$	1,146.80	$	11.71	$	1,013.90	$	10.99
Class C Shares	$	1,000.00	$	1,147.80	$	11.72	$	1,013.90	$	10.99
Class I Shares	$	1,000.00	$	1,154.30	$	5.02	$	1,020.10	$	4.71

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.45% for Investor Class, 1.19% for Class A, 2.20% for Class B and Class C and 0.94% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Industry Composition as of April 30, 2011 (Unaudited)

Software	8.7	%
Computers & Peripherals	7.3
IT Services	5.4
Oil, Gas & Consumable Fuels	5.3
Energy Equipment & Services	5.2
Aerospace & Defense	4.2
Machinery	4.0
Communications Equipment	3.8
Internet & Catalog Retail	3.5
Internet Software & Services	3.2
Semiconductors & Semiconductor Equipment	3.1
Hotels, Restaurants & Leisure	2.8
Health Care Equipment & Supplies	2.6
Beverages	2.5
Chemicals	2.5
Health Care Providers & Services	2.5
Life Sciences Tools & Services	2.4
Biotechnology	2.2
Capital Markets	2.2
Electrical Equipment	2.0
Specialty Retail	1.7
Diversified Financial Services	1.6
Consumer Finance	1.5
Food Products	1.3
Metals & Mining	1.3
Road & Rail	1.3
Household Durables	1.2
Household Products	1.2
Textiles, Apparel & Luxury Goods	1.2
Wireless Telecommunication Services	1.2
Health Care Technology	1.1
Industrial Conglomerates	1.1
Multiline Retail	1.1
Pharmaceuticals	1.1
Commercial Banks	0.9
Construction & Engineering	0.9
Media	0.8
Personal Products	0.8
Food & Staples Retailing	0.7
Professional Services	0.6
Short-Term Investments	2.1
Other Assets, Less Liabilities	–0.1
	100.0	%

See Portfolio of Investments beginning on page 10 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investments)

1.	Apple, Inc.
2.	Oracle Corp.
3.	Google, Inc. Class A
4.	QUALCOMM, Inc.
5.	PepsiCo., Inc.
6.	Schlumberger, Ltd.
7.	International Business Machines Corp.
8.	Cognizant Technology Solutions Corp. Class A
9.	United Technologies Corp.
10.	EMC Corp.

8    MainStay Growth Equity Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Harish Kumar, PhD, CFA, and Martin J. Mickus, CFA, of Madison Square Investors LLC, the Fund’s Subadvisor.

How did MainStay Growth Equity Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Growth Equity Fund returned 15.16% for Investor Class shares, 15.23% for Class A shares, 14.68% for Class B shares and 14.78% for Class C shares for the six months ended April 30, 2011. Over the same period, the Fund’s Class I shares returned 15.43%. Investor Class, Class A and Class I shares outperformed—and Class B and Class C shares underperformed—the 15.13% return of the average Lipper¹ large-cap growth fund for the six months ended April 30, 2011. All share classes underperformed the 16.96% return of the Russell 1000^® Growth Index² over the same period. The Russell 1000^® Growth Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund underperformed the Russell 1000^® Growth Index primarily because of stock selection in the consumer discretionary and consumer staples sectors.

During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?

The sectors that made the strongest positive contributions to the Fund’s performance relative to the Russell 1000^® Growth Index were information technology, financials and health care. (Contributions take weightings and total returns into account.) The Fund’s investments in consumer discretionary, consumer staples and industrials made the weakest contributions to the Fund’s performance relative to the benchmark.

During the reporting period, which individual stocks made the strongest positive contributions to the Fund’s absolute performance and which stocks detracted the most?

The stocks that made the strongest positive contributions to the Fund’s absolute performance were computers & peripherals company Apple, oilfield services company Schlumberger and integrated oil company ExxonMobil. In terms of absolute performance, major detractors included Internet software & services company Google, pharmaceutical company Abbott Laboratories and communications equipment company Cisco Systems.

Did the Fund make any significant purchases or sales during the reporting period?

During the reporting period, we initiated new positions for the Fund in derivatives exchange operator CME Group and commercial bank PNC Financial Services Group. Significant sales included HMO UnitedHealth Group and aerospace & defense company General Dynamics.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, we increased the Fund’s weightings relative to the Russell 1000^® Growth Index in the financials and materials sectors. Over the same period, we decreased the Fund’s weightings in the information technology and consumer discretionary sectors.

How was the Fund positioned at the end of April 2011?

The Fund’s sector positioning is a result of our bottom-up stock selection process rather than a top-down macroeconomic viewpoint. As of April 30, 2011, the Fund was overweight relative to the Russell 1000^® Growth Index in the health care, financials and information technology sectors. On the same date, the Fund held underweight positions relative to the Russell 1000^® Growth Index in the consumer staples, consumer discretionary and energy sectors.

1. See footnote on page 6 for more information on Lipper Inc.

2. See footnote on page 6 for more information on the Russell 1000^® Growth Index.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    9

Portfolio of Investments^†††April 30, 2011 (unaudited)

	Shares		Value
Common Stocks 98.0%†
Aerospace & Defense 4.2%
Goodrich Corp.		64,200	$	5,673,354
Precision Castparts Corp.		48,994		7,570,553
X  United Technologies Corp.		141,309		12,658,460
				25,902,367
Beverages 2.5%
X  PepsiCo., Inc.		224,716		15,480,685
Biotechnology 2.2%
Alexion Pharmaceuticals, Inc. (a)		51,773		5,016,286
Gilead Sciences, Inc. (a)		219,241		8,515,320
				13,531,606
Capital Markets 2.2%
Ameriprise Financial, Inc.		71,784		4,454,915
Goldman Sachs Group, Inc. (The)		31,929		4,821,598
TD Ameritrade Holding Corp.		203,571		4,384,920
				13,661,433
Chemicals 2.5%
E.I. du Pont de Nemours & Co.		127,841		7,260,091
Praxair, Inc.		78,517		8,355,779
				15,615,870
Commercial Banks 0.9%
PNC Financial Services Group, Inc.		87,558		5,458,366
Communications Equipment 3.8%
Juniper Networks, Inc. (a)		174,410		6,685,135
X  QUALCOMM, Inc.		296,610		16,859,313
				23,544,448
Computers & Peripherals 7.3%
X  Apple, Inc. (a)		94,827		33,021,606
X  EMC Corp. (a)		420,939		11,929,412
				44,951,018
Construction & Engineering 0.9%
Fluor Corp.		81,182		5,677,869
Consumer Finance 1.5%
American Express Co.		194,132		9,527,999
Diversified Financial Services 1.6%
CME Group, Inc.		18,654		5,517,293
JPMorgan Chase & Co.		102,498		4,676,984
				10,194,277
Electrical Equipment 2.0%
Cooper Industries PLC		71,284		4,701,180
Emerson Electric Co.		122,140		7,421,226
				12,122,406
Energy Equipment & Services 5.2%
Baker Hughes, Inc.		95,672		7,405,970
Nabors Industries, Ltd. (a)		162,254		4,971,463
X  Schlumberger, Ltd.		161,811		14,522,537
Transocean, Ltd. (a)		75,627		5,501,864
				32,401,834
Food & Staples Retailing 0.7%
Whole Foods Market, Inc.		73,871		4,636,144
Food Products 1.3%
General Mills, Inc.		208,821		8,056,314
Health Care Equipment & Supplies 2.6%
Covidien PLC		151,676		8,446,836
Stryker Corp.		124,199		7,327,741
				15,774,577
Health Care Providers & Services 2.5%
AmerisourceBergen Corp.		178,181		7,241,276
Express Scripts, Inc. (a)		143,875		8,163,467
				15,404,743
Health Care Technology 1.1%
Cerner Corp. (a)		54,121		6,504,262
Hotels, Restaurants & Leisure 2.8%
Las Vegas Sands Corp. (a)		121,262		5,700,526
Starbucks Corp.		165,505		5,989,626
Starwood Hotels & Resorts Worldwide, Inc.		95,861		5,710,440
				17,400,592
Household Durables 1.2%
Whirlpool Corp.		83,894		7,229,985
Household Products 1.2%
Procter & Gamble Co. (The)		110,839		7,193,451
Industrial Conglomerates 1.1%
General Electric Co.		325,584		6,658,193
Internet & Catalog Retail 3.5%
Amazon.com, Inc. (a)		56,698		11,141,157
Priceline.com, Inc. (a)		18,821		10,295,275
				21,436,432

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investments. May be subject to change daily.

10    MainStay Growth Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares			Value
Common Stocks (continued)
Internet Software & Services 3.2%
X  Google, Inc. Class A (a)		36,353		$	19,779,667
IT Services 5.4%
X  Cognizant Technology Solutions Corp. Class A (a)		154,294			12,790,972
X  International Business Machines Corp.		83,514			14,245,818
Paychex, Inc.		186,101			6,087,364
					33,124,154
Life Sciences Tools & Services 2.4%
Agilent Technologies, Inc. (a)		161,939			8,082,375
Pharmaceutical Product Development, Inc.		218,335			6,735,635
					14,818,010
Machinery 4.0%
Danaher Corp.		205,857			11,371,541
Deere & Co.		76,707	��		7,478,933
Flowserve Corp.		44,523			5,637,502
					24,487,976
Media 0.8%
Scripps Networks Interactive Class A		95,697			4,920,740
Metals & Mining 1.3%
Freeport-McMoRan Copper & Gold, Inc.		150,901			8,304,082
Multiline Retail 1.1%
Macy’s, Inc.		277,952			6,645,832
Oil, Gas & Consumable Fuels 5.3%
Concho Resources, Inc. (a)		43,848			4,685,159
Devon Energy Corp.		47,842			4,353,622
Marathon Oil Corp.		143,726			7,766,953
Occidental Petroleum Corp.		93,581			10,695,372
Southwestern Energy Co. (a)		113,259			4,967,540
					32,468,646
Personal Products 0.8%
Estee Lauder Cos., Inc. (The) Class A		51,848			5,029,256
Pharmaceuticals 1.1%
Shire PLC, Sponsored ADR (b)		70,873			6,606,072
Professional Services 0.6%
Verisk Analytics, Inc. Class A (a)		112,592			3,704,277
Road & Rail 1.3%
Union Pacific Corp.		77,241			7,992,126
Semiconductors & Semiconductor Equipment 3.1%
Applied Materials, Inc.		299,836			4,704,427
Broadcom Corp. Class A (a)		136,060			4,786,591
NetLogic Microsystems, Inc. (a)		116,113			5,007,954
Texas Instruments, Inc.		129,722			4,609,022
					19,107,994
Software 8.7%
Autodesk, Inc. (a)		131,057			5,894,944
Citrix Systems, Inc. (a)		87,471			7,377,304
Intuit, Inc. (a)		125,707			6,984,281
Microsoft Corp.		302,771			7,878,102
X  Oracle Corp.		616,797			22,235,532
Salesforce.com, Inc. (a)		25,809			3,577,127
					53,947,290
Specialty Retail 1.7%
Home Depot, Inc. (The)		286,829			10,652,829
Textiles, Apparel & Luxury Goods 1.2%
Coach, Inc.		123,075			7,361,116
Wireless Telecommunication Services 1.2%
American Tower Corp. Class A (a)		140,883			7,369,590
Total Common Stocks (Cost $489,817,775)					604,684,528
	Principal
	Amount
Short-Term Investments 2.1%
Repurchase Agreement 0.0%‡
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $12,556 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $15,000 and a Market Value of $15,000)	$	12,556			12,556
Total Repurchase Agreement (Cost $12,556)					12,556

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of Investments ^††† April 30, 2011 (unaudited) (continued)

	Principal
	Amount			Value
Short-Term Investments (continued)
U.S. Government 2.1%
United States Treasury Bills 0.027%, due 7/7/11 (c)	$	11,600,000		$	11,599,420
0.041%, due 7/28/11 (c)(d)		1,400,000			1,399,860
Total U.S. Government (Cost $12,998,905)					12,999,280
Total Short-Term Investments (Cost $13,011,461)					13,011,836
Total Investments (Cost $502,829,236) (f)		100.1	%		617,696,364
Other Assets, Less Liabilities		(0.1	)		(706,099	)
Net Assets		100.0	%	$	616,990,265

			Unrealized
	Contracts		Appreciation
	Long		(Depreciation) (e)
Futures Contracts 0.0%‡
Standard & Poor’s 500 Index Mini June 2011		81	$	160,179
Total Futures Contracts (Settlement Value $5,506,785)			$	160,179

†††	On a daily basis New York Life Investments confirms that the value of the Fund’s liquid assets (liquid portfolio securities and cash) is sufficient to cover its potential senior securities (e.g., futures, swaps, options).
‡	Less than one-tenth of a percent.
(a)	Non-income producing security.
(b)	ADR—American Depositary Receipt.
(c)	Interest rate presented is yield to maturity.
(d)	Represents a security, or a portion thereof, which is maintained at the broker as collateral for futures contracts.
(e)	Represents the difference between the value of the contracts at the time they were opened and the value at April 30, 2011.
(f)	At April 30, 2011, cost is $505,696,960 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	118,100,367
Gross unrealized depreciation		(6,100,963	)
Net unrealized appreciation	$	111,999,404

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	604,684,528	$	—	$	—	$	604,684,528
Short-Term Investments
Repurchase Agreement		—		12,556		—		12,556
U.S. Government		—		12,999,280		—		12,999,280
Total Short-Term Investments		—		13,011,836		—		13,011,836
Total Investments in Securities		604,684,528		13,011,836		—		617,696,364
Other Financial Instruments
Futures Contracts Long (b)		160,179		—		—		160,179
Total Investments in Securities and Other Financial Instruments	$	604,844,707	$	13,011,836	$	—	$	617,856,543

(a)	For a complete listing of investments and their industries, see the Portfolio of Investments.
(b)	The value listed for these securities reflects unrealized appreciation as shown on the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

12    MainStay Growth Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $502,829,236)	$	617,696,364
Receivables:
Dividends and interest		450,035
Fund shares sold		81,561
Variation margin on futures contracts		19,440
Other assets		81,060
Total assets		618,328,460
Liabilities
Payables:
Fund shares redeemed		370,696
Manager (See Note 3)		346,757
Transfer agent (See Note 3)		332,157
NYLIFE Distributors (See Note 3)		183,547
Professional fees		53,250
Shareholder communication		46,108
Custodian		2,234
Trustees		1,948
Accrued expenses		1,498
Total liabilities		1,338,195
Net assets	$	616,990,265
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	51,671
Additional paid-in capital		553,277,541
		553,329,212
Net investment loss		(1,301,840	)
Accumulated net realized gain (loss) on investments and futures transactions		(50,064,414	)
Net unrealized appreciation (depreciation) on investments and futures contracts		115,027,307
Net assets	$	616,990,265
Investor Class
Net assets applicable to outstanding shares	$	265,255,944
Shares of beneficial interest outstanding		22,108,389
Net asset value per share outstanding	$	12.00
Maximum sales charge (5.50% of offering price)		0.70
Maximum offering price per share outstanding	$	12.70
Class A
Net assets applicable to outstanding shares	$	244,941,152
Shares of beneficial interest outstanding		20,355,816
Net asset value per share outstanding	$	12.03
Maximum sales charge (5.50% of offering price)		0.70
Maximum offering price per share outstanding	$	12.73
Class B
Net assets applicable to outstanding shares	$	96,406,093
Shares of beneficial interest outstanding		8,336,706
Net asset value and offering price per share outstanding	$	11.56
Class C
Net assets applicable to outstanding shares	$	3,260,238
Shares of beneficial interest outstanding		281,864
Net asset value and offering price per share outstanding	$	11.57
Class I
Net assets applicable to outstanding shares	$	7,126,838
Shares of beneficial interest outstanding		588,242
Net asset value and offering price per share outstanding	$	12.12

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	3,031,791
Interest		1,781
Total income		3,033,572
Expenses
Manager (See Note 3)		2,051,864
Distribution/Service—Investor Class (See Note 3)		319,172
Distribution/Service—Class A (See Note 3)		287,215
Distribution/Service—Class B (See Note 3)		482,589
Distribution/Service—Class C (See Note 3)		15,358
Transfer agent (See Note 3)		948,709
Shareholder communication		75,989
Registration		62,403
Professional fees		60,517
Custodian		9,494
Trustees		8,819
Miscellaneous		13,283
Total expenses		4,335,412
Net investment income (loss)		(1,301,840	)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Security transactions		50,864,530
Futures transactions		272,753
Net realized gain (loss) on investments and futures transactions		51,137,283
Net change in unrealized appreciation (depreciation) on:
Investments		33,040,238
Futures contracts		160,179
Net change in unrealized appreciation (depreciation) on investments and futures contracts		33,200,417
Net realized and unrealized gain (loss) on investments and futures transactions		84,337,700
Net increase (decrease) in net assets resulting from operations	$	83,035,860

(a)  Dividends recorded net of foreign withholding taxes in the amount of $1,961.

14    MainStay Growth Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(1,301,840	)	$	(2,205,858	)
Net realized gain (loss) on investments, futures transactions and foreign currency transactions		51,137,283			26,923,048
Net change in unrealized appreciation (depreciation) on investments and futures contracts		33,200,417			8,432,580
Net increase (decrease) in net assets resulting from operations		83,035,860			33,149,770
Dividends to shareholders:
From net investment income:
Investor Class		—			(213	)
Class A		—			(727	)
Class I		—			(285,841	)
Total dividends to shareholders		—			(286,781	)
Capital share transactions:
Net proceeds from sale of shares		19,000,151			21,912,477
Net asset value of shares issued in connection with the acquisition of MainStay Capital Appreciation Fund (See Note 9)		—			587,431,416
Net asset value of shares issued to shareholders in reinvestment of dividends		—			217,948
Cost of shares redeemed		(45,473,698	)		(118,523,513	)
Increase (decrease) in net assets derived from capital share transactions		(26,473,547	)		491,038,328
Net increase (decrease) in net assets		56,562,313			523,901,317
Net Assets
Beginning of period		560,427,952			36,526,635
End of period	$	616,990,265		$	560,427,952
Undistributed net investment income (loss) at end of period	$	(1,301,840	)	$	—

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	10.42		$	9.32		$	8.26		$	11.79
Net investment income (loss)		(0.02	)(a)		(0.04	)(a)		0.02	(a)		(0.02	)
Net realized and unrealized gain (loss) on investments		1.60			1.19			1.04			(3.51	)
Total from investment operations		1.58			1.15			1.06			(3.53	)
Less dividends:
From net investment income		—			(0.05	)		—			—
Net asset value at end of period	$	12.00		$	10.42		$	9.32		$	8.26
Total investment return (b)		15.16	%(c)		12.41	%		12.83	%(d)		(29.94	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.42	%)††		(0.40	%)		0.21	%		(0.35	%)††
Net expenses		1.45	% ††		1.52	%		1.41	%		1.31	% ††
Expenses (before waiver/reimbursement)		1.45	% ††		1.52	%		1.41	%		1.61	% ††
Portfolio turnover rate		65	%		131	%		156	%		291	%
Net assets at end of period (in 000’s)	$	265,256		$	247,966		$	37		$	24

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

	Class A
																November 4,
	Six months															2005**
	ended															through
	April 30,			Year ended October 31,												October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.44		$	9.32		$	8.26		$	13.19		$	11.01		$	10.00
Net investment income (loss)		(0.01	)(a)		(0.01	)(a)		0.02	(a)		(0.02	)		0.01			(0.01	)
Net realized and unrealized gain (loss) on investments		1.60			1.20			1.05			(4.84	)		2.25			1.02
Total from investment operations		1.59			1.19			1.07			(4.86	)		2.26			1.01
Less dividends and distributions:
From net investment income		—			(0.07	)		(0.01	)		—			—			—
From net realized gain on investments		—			—			—			(0.07	)		(0.08	)		—
Total dividends and distributions		—			(0.07	)		(0.01	)		(0.07	)		(0.08	)		—
Net asset value at end of period	$	12.03		$	10.44		$	9.32		$	8.26		$	13.19		$	11.01
Total investment return (b)		15.23	%(c)		12.77	%		13.01	%		(37.06	%)		20.51	%		10.20	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.17	%)††		(0.10	%)		0.26	%		(0.16	%)		0.08	%		(0.12	%)††
Net expenses		1.19	% ††		1.23	%		1.31	%		1.17	%		1.25	%		1.25	% ††
Expenses (before waiver/reimbursement)		1.19	% ††		1.23	%		1.32	%		1.18	%		1.37	%		1.71	% ††
Portfolio turnover rate		65	%		131	%		156	%		291	%		279	%		138	%
Net assets at end of period (in 000’s)	$	244,941		$	210,592		$	92		$	49		$	66		$	55

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

16    MainStay Growth Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class B
																November 4,
	Six months															2005**
	ended															through
	April 30,			Year ended October 31,												October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.08		$	9.04		$	8.07		$	12.99		$	10.93		$	10.00
Net investment income (loss)		(0.06	)(a)		(0.11	)(a)		(0.07	)(a)		(0.10	)		(0.08	)		(0.09	)
Net realized and unrealized gain (loss) on investments		1.54			1.15			1.04			(4.75	)		2.22			1.02
Total from investment operations		1.48			1.04			0.97			(4.85	)		2.14			0.93
Less distributions:
From net realized gain on investments		—			—			—			(0.07	)		(0.08	)		—
Net asset value at end of period	$	11.56		$	10.08		$	9.04		$	8.07		$	12.99		$	10.93
Total investment return (b)		14.68	%(c)		11.50	%		12.02	%		(37.55	%)		19.67	%		9.30	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(1.16	%)††		(1.14	%)		(0.82	%)		(1.04	%)		(0.67	%)		(0.87	%)††
Net expenses		2.20	% ††		2.27	%		2.18	%		2.06	%		2.00	%		2.00	% ††
Expenses (before waiver/reimbursement)		2.20	% ††		2.27	%		2.18	%		2.26	%		2.12	%		2.46	% ††
Portfolio turnover rate		65	%		131	%		156	%		291	%		279	%		138	%
Net assets at end of period (in 000’s)	$	96,406		$	95,899		$	122		$	42		$	65		$	55

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

	Class C
																November 4,
	Six months															2005**
	ended															through
	April 30,			Year ended October 31,												October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.08		$	9.03		$	8.06		$	12.99		$	10.93		$	10.00
Net investment income (loss)		(0.06	)(a)		(0.11	)(a)		(0.04	)(a)		(0.12	)		(0.08	)		(0.09	)
Net realized and unrealized gain (loss) on investments		1.55			1.16			1.01			(4.74	)		2.22			1.02
Total from investment operations		1.49			1.05			0.97			(4.86	)		2.14			0.93
Less distributions:
From net realized gain on investments		—			—			—			(0.07	)		(0.08	)		—
Net asset value at end of period	$	11.57		$	10.08		$	9.03		$	8.06		$	12.99		$	10.93
Total investment return (b)		14.78	%(c)		11.63	%(d)		12.03	%(d)		(37.63	%)		19.56	%		9.40	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(1.17	%)††		(1.14	%)		(0.52	%)		(1.04	%)		(0.67	%)		(0.87	%)††
Net expenses		2.20	% ††		2.27	%		2.16	%		2.06	%		2.00	%		2.00	%††
Expenses (before waiver/reimbursement)		2.20	% ††		2.27	%		2.16	%		2.26	%		2.12	%		2.46	%††
Portfolio turnover rate		65	%		131	%		156	%		291	%		279	%		138	%
Net assets at end of period (in 000’s)	$	3,260		$	2,889		$	45		$	40		$	65		$	55

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class I
																November 4,
	Six months															2005**
	ended															through
	April 30,			Year ended October 31,												October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.50		$	9.36		$	8.30		$	13.24		$	11.04		$	10.00
Net investment income (loss)		0.00	‡(a)		0.01	(a)		0.06	(a)		0.02			0.02			0.01
Net realized and unrealized gain (loss) on investments		1.62			1.22			1.04			(4.87	)		2.28			1.03
Total from investment operations		1.62			1.23			1.10			(4.85	)		2.30			1.04
Less dividends and distributions:
From net investment income		—			(0.09	)		(0.04	)		(0.02	)		(0.02	)		—
From net realized gain on investments		—			—			—			(0.07	)		(0.08	)		—
Total dividends and distributions		—			(0.09	)		(0.04	)		(0.09	)		(0.10	)		—
Net asset value at end of period	$	12.12		$	10.50		$	9.36		$	8.30		$	13.24		$	11.04
Total investment return (b)		15.43	%(c)		13.07	%		13.29	%		(36.80	%)		20.93	%		10.40	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.08	%††		0.14	%		0.74	%		0.21	%		0.31	%		0.11	%††
Net expenses		0.94	%††		0.98	%		1.03	%		0.81	%		0.92	%		1.00	%††
Expenses (before reimbursement/waiver)		0.94	%††		0.98	%		1.05	%		0.81	%		0.92	%		1.46	%††
Portfolio turnover rate		65	%		131	%		156	%		291	%		279	%		138	%
Net assets at end of period (in 000’s)	$	7,127		$	3,082		$	36,230		$	75,450		$	173,475		$	26,586

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.

18    MainStay Growth Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements(unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Growth Equity Fund (the “Fund”), a diversified fund. The Fund is the successor of the MainStay Growth Equity Fund, a series of Eclipse Funds Inc. (the “Predecessor Fund”). The reorganization of the Predecessor Fund with and into the Fund occurred on February 26, 2010. All information and references to periods prior to February 26, 2010, relate to the Predecessor Fund.

The Fund currently offers five classes of shares. Class A shares, Class B shares, Class C shares and Class I shares commenced operations on November 4, 2005. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class B shares and Class C shares are offered at NAV without an initial sales charge, although a declining CDSC may be imposed on redemptions made within six years of purchase of Class B shares and a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Class B shares convert to either Investor Class or Class A shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek long-term growth of capital.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

mainstayinvestments.com19

Notes to Financial Statements (unaudited) (continued)

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or

20MainStay Growth Equity Fund

retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(I) Futures Contracts. A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., foreign currency, interest rate, security, or securities index). The Fund is subject to equity price risk in the normal course of investment in these transactions. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking to market” such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. The Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin.” When the futures contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.

The use of futures contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract or notional amounts and variation margin reflect the extent of the Fund’s involvement in open futures positions. Risks arise from the possible imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts. However, the Fund’s activities in futures contracts have minimal counterparty risk as they are conducted through regulated exchanges that guarantee the futures against default by the counterparty. The Fund invests in futures contracts to help manage the duration and yield curve of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAV and may result in a loss to the Fund.

(J) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

(K) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash flows. These derivatives are not accounted for as hedging instruments.

Fair value of derivatives as of April 30, 2011:

Asset Derivatives

	Statement of
	Assets	Equity
	and Liabilities	Contracts
	Location	Risk		Total
	Net Assets— Unrealized appreciation (depreciation) on investments and futures contracts (a)
Futures Contracts		$	160,179	$	160,179
Total Fair Value		$	160,179	$	160,179

(a)  Includes cumulative appreciation (depreciation) of futures contracts as reported in Portfolio of Investments. Only current day’s variation margin in reported within the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2011:

Realized Gain (Loss)

	Statement of	Equity
	Operations	Contracts
	Location	Risk		Total
Futures Contracts	Net realized gain (loss) on futures transactions	$	272,753	$	272,753
Total Realized Gain		$	272,753	$	272,753

mainstayinvestments.com21

Notes to Financial Statements (unaudited) (continued)

Change in Unrealized Appreciation (Depreciation)

	Statement of	Equity
	Operations	Contracts
	Location	Risk		Total
Futures Contracts	Net change in unrealized appreciation (depreciation) on futures contracts	$	160,179	$	160,179
Total Change in Unrealized Appreciation (Depreciation)		$	160,179	$	160,179

Number of Contracts, Notional Amounts or Shares/Units (1)

	Equity
	Contracts
	Risk		Total
Futures Contracts (2)		64		64

(1)	Amount disclosed represents the weighted average held during the six-month period ended April 30, 2011.
(2)	Amount(s) represent(s) number of contracts or number of shares/units.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. Madison Square Investors LLC (“Madison Square Investors” or “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.70% up to $500 million and 0.675% over $500 million. The effective management fee rate was 0.70% for the six-month period ended April 30, 2011.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $2,051,864.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from the Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and Class C shares of the Fund pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Fund’s Class B and Class C shares along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class B and Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $18,291 and $4,981, for the six-month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Investor Class, Class A, Class B and Class C shares of $5, $440, $67,886 and $500, respectively, for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	543,002
Class A		189,801
Class B		205,364
Class C		6,526
Class I		4,016

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These

22MainStay Growth Equity Fund

fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Investor Class	$	25,584	0.0	%‡
Class A		104,287	0.0	‡
Class C		86	0.0	‡
Class I		1,288	0.0	‡

‡  Less than one-tenth of a percent.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $7,933. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $98,333,973 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. The Fund acquired $94,184,714 of capital losses in its reorganization with MainStay Capital Appreciation Fund (see Note 9). Use of these losses may be limited due to the provisions of IRC section 382. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss	Capital Loss
Available Through	Amounts (000’s)
2015	$	21,350
2016		62,822
2017		14,162
Total	$	98,334

The tax character of distributions paid during the year ended October 31, 2010, shown in the Statement of Changes in Net Assets, was as follows:

	2010
Distributions paid from:
Ordinary Income	$	286,781

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $380,610 and $415,791, respectively.

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		327,173		$	3,716,610
Shares redeemed		(1,461,973	)		(16,490,166	)
Net increase (decrease) in shares outstanding before conversion		(1,134,800	)		(12,773,556	)
Shares converted into Investor Class (See Note 1)		571,669			6,482,588
Shares converted from Investor Class (See Note 1)		(1,125,446	)		(12,621,585	)
Net increase (decrease)		(1,688,577	)	$	(18,912,553	)
Year ended October 31, 2010:
Shares sold		533,152		$	5,215,864
Shares issued in connection with the acquisition of MainStay Capital Appreciation Fund (See Note 9)		25,405,384			249,912,764
Shares issued to shareholders in reinvestment of dividends		22			213
Shares redeemed		(3,083,748	)		(30,190,362	)
Net increase (decrease) in shares outstanding before conversion		22,854,810			224,938,479
Shares converted into Investor Class (See Note 1)		1,581,410			15,442,867
Shares converted from Investor Class (See Note 1)		(643,247	)		(6,437,168	)
Net increase (decrease)		23,792,973		$	233,944,178

mainstayinvestments.com23

Notes to Financial Statements (unaudited) (continued)

Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		475,731		$	5,402,465
Shares redeemed		(1,620,105	)		(18,371,097	)
Net increase (decrease) in shares outstanding before conversion		(1,144,374	)		(12,968,632	)
Shares converted into Class A (See Note 1)		1,357,970			15,263,745
Shares converted from Class A (See Note 1)		(35,641	)		(414,510	)
Net increase (decrease)		177,955		$	1,880,603
Year ended October 31, 2010:
Shares sold		866,379		$	8,514,412
Shares issued in connection with the acquisition of MainStay Capital Appreciation Fund (See Note 9)		21,838,919			214,573,935
Shares issued to shareholders in reinvestment of dividends		41			399
Shares redeemed		(3,597,576	)		(35,085,241	)
Net increase (decrease) in shares outstanding before conversion		19,107,763			188,003,505
Shares converted into Class A (See Note 1)		1,196,535			11,876,607
Shares converted from Class A (See Note 1)		(136,340	)		(1,383,236	)
Net increase (decrease)		20,167,958		$	198,496,876
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		335,055		$	3,655,448
Shares redeemed		(711,765	)		(7,761,283	)
Net increase (decrease) in shares outstanding before conversion		(376,710	)		(4,105,835	)
Shares converted from Class B (See Note 1)		(800,008	)		(8,710,238	)
Net increase (decrease)		(1,176,718	)	$	(12,816,073	)
Year ended October 31, 2010:
Shares sold		745,402		$	7,168,004
Shares issued in connection with the acquisition of MainStay Capital Appreciation Fund (See Note 9)		12,472,995			119,463,886
Shares redeemed		(1,661,510	)		(15,745,052	)
Net increase (decrease) in shares outstanding before conversion		11,556,887			110,886,838
Shares converted from Class B (See Note 1)		(2,056,952	)		(19,499,070	)
Net increase (decrease)		9,499,935		$	91,387,768
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		14,981		$	165,912
Shares redeemed		(19,662	)		(215,827	)
Net increase (decrease)		(4,681	)	$	(49,915	)
Year ended October 31, 2010:
Shares sold		35,846		$	344,998
Shares issued in connection with the acquisition of MainStay Capital Appreciation Fund (See Note 9)		313,217			3,001,872
Shares redeemed		(67,518	)		(645,915	)
Net increase (decrease)		281,545		$	2,700,955
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		523,387		$	6,059,716
Shares redeemed		(228,766	)		(2,635,325	)
Net increase (decrease)		294,621		$	3,424,391
Year ended October 31, 2010:
Shares sold		69,486		$	669,199
Shares issued in connection with the acquisition of MainStay Capital Appreciation Fund (See Note 9)		48,621			478,959
Shares issued to shareholders in reinvestment of dividends		22,291			217,336
Shares redeemed		(3,716,021	)		(36,856,943	)
Net increase (decrease)		(3,575,623	)	$	(35,491,449	)

Note 9–Fund Acquisition

At a meeting held on June 23, 2009, the Board of Trustees approved a plan of reorganization where by the Fund would acquire the assets, including the investments, and assume the liabilities of MainStay Capital Appreciation Fund, a series of The MainStay Funds. Shareholders of the MainStay Capital Appreciation Fund approved this reorganization on November 16, 2009, which was then completed on November 24, 2009. The aggregate net assets of the Fund immediately before the acquisition were $32,383,788 and the combined net assets after the acquisition were $619,815,204.

The acquisition was accomplished by a tax-free exchange of the following:

MainStay Capital Appreciation Fund	Shares		Value
Investor Class		9,208,553	$	249,912,764
Class A		7,862,472		214,573,935
Class B		4,991,180		119,463,886
Class C		125,395		3,001,872
Class I		17,134		478,959

In exchange for the MainStay Capital Appreciation Fund shares and net assets, the Fund issued 25,405,384 Investor Class Shares; 21,838,919 Class A shares; 12,472,995 Class B shares; 313,217 Class C shares; and 48,621 Class I shares.

24MainStay Growth Equity Fund

MainStay Capital Appreciation Fund’s net assets after adjustments for any permanent book-to-tax differences at the acquisition date were as follows, which include the following amounts of capital stock, unrealized appreciation, accumulated net realized loss and undistributed net investment loss:

							Accumulated			Undistributed
	Total Net				Unrealized		Net Realized			Net Investment
	Assets		Capital Stock		Appreciation		Loss			Loss
MainStay Capital Appreciation Fund	$	587,431,416	$	613,141,766	$	69,756,562	$	(95,112,046	)	$	(354,866	)

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

mainstayinvestments.com25

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Growth Equity Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and Madison Square Investors LLC (“MSI”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and MSI as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and MSI in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and MSI at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and MSI on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates, including MSI as subadvisor to the Fund, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and MSI; (ii) the investment performance of the Fund, New York Life Investments and MSI; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates, including MSI as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and MSI

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing MSI’s compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

The Board also examined the nature, extent and quality of the services that MSI provides to the Fund. The Board evaluated MSI’s experience

26MainStay Growth Equity Fund

in serving as subadvisor to the Fund and managing other portfolios. It examined MSI’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at MSI, and MSI’s overall legal and compliance environment. The Board also reviewed MSI’s willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and MSI’s experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and MSI to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and MSI

The Board considered the costs of the services provided by New York Life Investments and MSI under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Fund. Because MSI is an affiliate of New York Life Investments whose subadvisory fees are paid directly by New York Life Investments, the Board considered cost and profitability information for New York Life Investments and MSI in the aggregate.

In evaluating any costs and profits of New York Life Investments and its affiliates, including MSI, due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and MSI must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board recognized, for example, the benefits to MSI from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to MSI in exchange for commissions paid by the Fund with respect to trades on the Fund’s portfolio securities.

The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering

mainstayinvestments.com27

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)

the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates (including MSI) due to their relationships with the Fund supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to MSI are paid by New York Life Investments, not the Fund.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and MSI on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and MSI about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

28MainStay Growth Equity Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; or (ii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX is available free of charge upon request (i) by calling 800-MAINSTAY (624-6782); (ii) by visiting the Fund’s website at mainstayinvestments.com; or (iii) on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com29

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23018 MS136-11 MSGE10-06/11

B8

MainStay High Yield Municipal Bond Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	19
Notes to Financial Statements	24
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	29
Proxy Voting Policies and Procedures and Proxy Voting Record	32
Shareholder Reports and Quarterly Portfolio Disclosure	32

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(3/31/10)			Ratio2
Investor Class Shares	Maximum 4.5% Initial Sales Charge	With sales charges		–8	.54%		–0	.87%		0	.82%		1	.77%
		Excluding sales charges		–4	.24		3	.80		5	.19		1	.77
Class A Shares	Maximum 4.5% Initial Sales Charge	With sales charges		–8	.51		–0	.69		1	.08		1	.62
		Excluding sales charges		–4	.20		3	.99		5	.47		1	.62
Class C Shares	Maximum 1% CDSC	With sales charges		–5	.52		2	.04		4	.52		2	.52
	if Redeemed Within One Year of Purchase	Excluding sales charges		–4	.59		3	.03		4	.52		2	.52
Class I Shares	No Sales Charge			–4	.19		4	.06		5	.54		1	.37

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.   The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Since
Benchmark Performance	Months			Year			Inception
Barclays Capital Municipal Bond Index3		–1	.68%		2	.20%		3	.18%
High Yield Municipal Bond Composite Index4		–2	.57		2	.89		4	.03
Average Lipper High Yield Municipal Debt Fund5		–5	.26		0	.02		1	.50

3.	The Barclays Capital Municipal Bond Index includes approximately 15,000 municipal bonds, rated Baa or better by Moody’s, with a maturity of at least two years. Bonds subject to the Alternative Minimum Tax or with floating or zero coupons are excluded. Total returns assume the reinvestment of all dividends and capital gains. The Barclays Capital Municipal Bond Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.
4.	The High Yield Municipal Bond Composite Index is comprised of the Barclays Capital High Yield Municipal Bond Index and the Barclays Capital Municipal Bond Index weighted 60%/40%, respectively. The Barclays Capital High Yield Municipal Bond Index is an unmanaged index made up of bonds that are non-investment grade, unrated, or rated below Ba1 by Moody’s Investors Service with a remaining maturity of at least one year.
5.	The average Lipper high yield municipal debt fund is representative of funds that typically invest at least 50% or more of their assets in municipal debt issues rated BBB or less. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay High Yield Municipal Bond Fund

Cost in Dollars of a $1,000 Investment in MainStay High Yield Municipal Bond Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	957.60	$	4.47	$	1,020.20	$	4.61
Class A Shares	$	1,000.00	$	958.00	$	4.13	$	1,020.60	$	4.26
Class C Shares	$	1,000.00	$	954.10	$	8.09	$	1,016.50	$	8.35
Class I Shares	$	1,000.00	$	958.10	$	2.91	$	1,021.80	$	3.01

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.92% for Investor Class, 0.85% for Class A, 1.67% for Class C and 0.60% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

State Composition as of April 30, 2011 (Unaudited)

California	14.1	%
Texas	8.1
Pennsylvania	7.6
Alabama	5.8
Florida	5.7
Ohio	5.2
Michigan	4.6
Virginia	4.0
Colorado	3.6
New Jersey	3.6
Indiana	3.1
Arizona	2.8
Maryland	2.8
New York	2.8
Georgia	2.4
Massachusetts	2.4
Guam	1.8
Wisconsin	1.8
Kentucky	1.5
Missouri	1.4
Nevada	1.4
Illinois	1.3
Louisiana	1.2
Mississippi	1.2
Multi-State	1.2
Rhode Island	1.1
Utah	1.1
New Hampshire	1.0
Puerto Rico	1.0
Tennessee	1.0
Washington	1.0
Connecticut	0.8
North Carolina	0.7
District of Columbia	0.6
Wyoming	0.5
Minnesota	0.4
Iowa	0.3
Oregon	0.3
Oklahoma	0.1
Other Assets, Less Liabilities	–1.3
	100.0	%

See Portfolio of Investments beginning on page 11 for specific holdings within these categories.

Top Ten Issuers Held as of April 30, 2011

1.	Capital Beltway Funding Corp. Revenue, 5.00%, due 12/31/47
2.	Texas Private Activity Bond Surface Transportation Corp. Revenue, 6.875%–7.50%, due 6/30/33–6/30/40
3.	Inland Empire Tobacco Securitization Authority TOB Settlement, 4.625%–5.00%, due 6/1/21
4.	Arkansas River Power Authority Revenue, 6.00%–6.125%, due 10/1/40
5.	Buckeye, Ohio, Tobacco Settlement Financing Authority, 5.125%–5.875%, due 6/1/24–6/1/34
6.	Alabama Industrial Development Authority Solid Waste Disposal Revenue, Pine City Fiber Co., 6.45%, due 12/1/23
7.	Maricopa County Stadium District Revenue, 5.375%, due 6/1/15
8.	Philadelphia, PA, 6.50%, due 8/1/41
9.	North Sumter County Florida Utility Dependent District Revenue, 6.25%, due 10/1/43
10.	Miami Beach Health Facilities Authority, Hospital Revenue, Refunding, Mount Sinai Medical Center of Florida, 5.375%–6.75%, due 11/15/28–11/15/29

8    MainStay High Yield Municipal Bond Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers John Loffredo, CFA, Robert DiMella, CFA, and Michael Petty of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay High Yield Municipal Bond Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay High Yield Municipal Bond Fund returned –4.24% for Investor Class shares, –4.20% for Class A shares and –4.59% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned –4.19%. All share classes outperformed the –5.26% return of the average Lipper¹ high yield municipal debt fund for the six months ended April 30, 2011. All share classes underperformed the –1.68% return of the Barclays Capital Municipal Bond Index² for the same period. The Barclays Capital Municipal Bond Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund outperformed its Lipper peers during the reporting period largely because of individual security selection and, unlike many high-yield municipal bond funds, positive cash flow. The Fund underperformed its benchmark as bonds rated BBB and below-investment-grade produced much lower returns than municipal bonds rated AA and AAA during the reporting period.³ In particular, BBB-rated municipal bonds suffered as many high-yield municipal bond funds faced redemptions and were forced to sell their most liquid bonds on short notice because they could not quickly dispose of lower-rated securities.

What was the Fund’s duration⁴ strategy and what impact did this have on the Fund’s performance?

The Fund typically maintains a duration close to that of the Barclays Capital Municipal Bond Index. That said, we believe the Fund’s market sensitivity is driven more by spread duration,⁵ which measures the Fund’s sensitivity to changes in yield spreads,⁶ than by interest-rate sensitivity. During the reporting period, the Fund had an overweight position in lower-rated investment-grade bonds and in higher-rated non-investment-grade bonds with excess return potential—based on spread—relative to the benchmark. The Fund was underweight spread duration in lower-rated non-investment-grade bonds and in unrated bonds.

What specific factors, risks or market forces prompted significant decisions for the Fund during the reporting period?

Several factors and market forces influenced Fund decisions during the reporting period. The strength of the taxable high-yield municipal market enticed taxable mutual funds to bid on corporate-backed municipal bonds. The Fund responded by reducing its corporate-backed municipal exposure by half, selling into strong bids and replacing those positions with other municipal credits. Among the securities the Fund purchased were health care and tax revenue-backed bonds, which provided comparatively higher yields and better ratings as a result of forced selling by mutual funds and individual investors. The massive sell-off resulted from media stories that raised, in our view, misplaced concerns about imminent defaults. The Fund was able to use the market dislocations to its advantage, putting new cash inflows to work at yields that we felt were extremely attractive.

During the reporting period, which market segments were the strongest contributors to the Fund’s performance and which market segments were particularly weak?

The best sector contributions to the Fund’s performance came from general obligation bonds and from securities with maturities of less than five years. (Contributions take weightings and total returns into account.) The weakest overall contributions came from credits rated BBB. The prices of these securities fell as many high-yield mutual funds experienced forced liquidations. The Fund had no defaulted securities during the reporting period, which may prove beneficial if the municipal market continues to stabilize.

1. See footnote on page 6 for more information on Lipper Inc.

2. See footnote on page 6 for more information on the Barclays Capital Municipal Bond Index.

3. Debt rated AAA has the highest rating assigned by Standard & Poor’s, and in the opinion of Standard & Poor’s, the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. Debt rated AA by Standard & Poor’s is deemed by Standard & Poor’s to differ from the highest-rated issues only in small degree. In the opinion of Standard & Poor’s, the obligor’s capacity to meet its financial commitment on the obligation is very strong. Debt rated BBB by Standard & Poor’s is deemed by Standard & Poor’s to exhibit adequate protection parameters. It is the opinion of Standard & Poor’s, however, that adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.

4. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered to be a more accurate sensitivity gauge than average maturity.

5. Spread duration measures a security’s or portfolio’s sensitivity to changes in yield spreads. In this context, the yield spread refers to the incremental yield over comparable U.S. Treasury securities that a security or portfolio is currently delivering. Spread duration is commonly quantified as the percent change in price for the security or portfolio resulting from a one percentage point (100 basis point) change in spreads. An increase in spreads is called widening and would result in a price decline for a security or portfolio with positive spread duration. A decline in spreads is called tightening and would result in a price increase for a security or portfolio with positive spread duration.

6. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.

mainstayinvestments.com    9

Did the Fund make any significant purchases or sales during the reporting period?

Most purchases and sales were significant, as the Fund commenced operations on March 31, 2010, and grew during the reporting period. We continued to build a well-balanced and widely diversified investment portfolio during the reporting period, with strict limits on sector concentration and individual credit exposure.

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, we shifted the Fund’s sector weightings in response to what we believed were opportunities in the municipal-bond marketplace. The biggest change was a substantial reduction in the Fund’s exposure to corporate-backed municipal bonds.

We increased the Fund’s exposure to the health care, dedicated tax, water/sewer, toll road and charter school sectors.

How was the Fund positioned at the end of the reporting period?

As of April 30, 2011, the Fund had an underweight position relative to the Barclays Capital Municipal Bond Index in tobacco bonds and an underweight position in securities with exposure to real estate risk, such as land-secured infrastructure projects and continuing care retirement communities. As of April 30, 2011, the weighted average dollar price of the Fund’s portfolio was at a deep discount to par, reflecting, in our view, the relative attractiveness of municipal high-yield bonds and the potential for total return should municipal credit spreads normalize going forward.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay High Yield Municipal Bond Fund

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Principal
	Amount		Value
Municipal Bonds 97.7%†
Alabama 5.8%
X  Alabama Industrial Development Authority Solid Waste Disposal Revenue, Pine City Fiber Co. 6.45%, due 12/1/23 (a)	$	1,800,000	$	1,684,368
Alabama Water Pollution Control Authority Refunding, Revolving Fund Loan Series B, Insured: AMBAC 4.125%, due 2/15/14 (b)		590,000		539,325
Jefferson County Public Building Authority Lease Revenue Insured: AMBAC 5.00%, due 4/1/12 (b)		635,000		614,667
Insured: AMBAC 5.00%, due 4/1/13 (b)		250,000		236,778
Insured: AMBAC 5.00%, due 4/1/16 (b)		475,000		394,174
Jefferson County, Capital Improvement and Refunding Series A, Insured: NATL-RE 5.00%, due 4/1/21 (c)		1,250,000		979,062
Jefferson County, Limited Obligation School Warrants
Series A 5.25%, due 1/1/13		950,000		917,453
Series A 5.25%, due 1/1/15		200,000		188,520
Tuscaloosa Educational Building Authority Revenue, Stillman College Project Series A 5.25%, due 6/1/37		200,000		149,686
				5,704,033
Arizona 2.8%
X  Maricopa County Stadium District Revenue Insured: AMBAC 5.375%, due 6/1/15 (b)		1,750,000		1,674,032
Pima County Industrial Development Authority Education Revenue, Paradise Education Center Project
Series A 5.00%, due 6/1/16		100,000		96,215
Series A 5.875%, due 6/1/33		325,000		264,518
6.10%, due 6/1/45		350,000		285,611
Yavapai County Industrial Development Authority Education Revenue, Agribusiness and Equine Center 7.875%, due 3/1/42		500,000		485,190
				2,805,566
California 12.4%
California Infrastructure & Economic Development Bank Revenue, Stockton Port District Project Insured: ACA 5.50%, due 7/1/32 (d)		350,000		265,881
California Municipal Finance Authority Revenue, University of LA Verne Series: A 6.25%, due 6/1/40		500,000		480,575
California State 6.00%, due 3/1/33		485,000		519,091
Davis Redevelopment Agency Tax Allocation, Subordinated Davis Redevelopment Project Series A 7.00%, due 12/1/36		1,375,000		1,397,990
Golden State Tobacco Securitization Corp. Series A-1 4.50%, due 6/1/27		1,050,000		788,098
Golden State Tobacco Securitization Corp. TOB Settlement Insured: AGC-ICC 5.00%, due 6/1/45 (e)		765,000		650,564
Hayward, California Unified School District, Capital Appreciation Election Series A, Insured: AGM (zero coupon), due 8/1/37 (f)		6,135,000		922,029
X  Inland Empire Tobacco Securitization Authority TOB Settlement
Series A 4.625%, due 6/1/21		1,475,000		1,135,514
Series A 5.00%, due 6/1/21		1,520,000		1,209,129
Lemoore Redevelopment Agency Tax Allocation 7.375%, due 8/1/40		1,000,000		1,015,660
March Joint Powers Redevelopment Agency Tax Allocation, Air Force Base Redevelopment Project
Series B 7.50%, due 8/1/41		450,000		461,565
Series A 7.50%, due 8/1/41		550,000		564,135

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest issuers held, as of April 30, 2011. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Municipal Bonds (continued)
California (continued)
National City Community Development Commission Tax Allocation, National City Redevelopment Project 7.00%, due 8/1/32	$	1,000,000	$	1,019,630
San Francisco City and County Redevelopment Financing Authority Tax Allocation, Mission Bay South Redevelopment Series D 7.00%, due 8/1/41		435,000		437,680
San Joaquin Hills Transportation Corridor Agency Series A, Insured: NATL-RE (zero coupon), due 1/15/25 (c)		3,000,000		869,460
Turlock California Public Financing Authority 7.50%, due 9/1/39		500,000		505,220
				12,242,221
Colorado 3.6%
X  Arkansas River Power Authority Revenue
6.00%, due 10/1/40		1,000,000		960,640
6.125%, due 10/1/40		1,000,000		1,003,130
Colorado Educational & Cultural Facilities Authority Revenue, Johnson & Wales University Series A, Insured: XLCA 5.00%, due 4/1/28 (g)		185,000		163,431
Denver Convention Center Hotel Authority Revenue, Refunding Series, Insured: XLCA 4.75%, due 12/1/35 (g)		100,000		74,428
E-470 Public Highway Authority Revenue
Series B, Insured: NATL-RE (zero coupon), due 9/1/27 (c)		240,000		68,316
Series B, Insured: NATL-RE (zero coupon), due 9/1/30 (c) (zero coupon), due 9/1/40		400,000 1,000,000		90,232 105,640
Fronterra Village Metropolitan District No. 2, Colorado, Refunding & Improvement Insured: RADIAN 4.875%, due 12/1/27 (h)		500,000		446,705
Regional Transportation District, Colorado, Private Activity Revenue 6.00%, due 1/15/41		500,000		458,065
Table Rock Metropolitan District General Obligation, Refunding Improvement Insured: RADIAN 4.25%, due 12/1/27 (h)		275,000		214,145
				3,584,732
Connecticut 0.8%
Connecticut, Special Parking Revenue Series A, Insured: ACA 6.60%, due 7/1/24 (a)(d)		785,000		743,081
District of Columbia 0.6%
District of Columbia Revenue, Friendship Public Charter School Insured: ACA 5.25%, due 6/1/33 (d)		85,000		65,033
District of Columbia Revenue, James F Oyster Elementary School Pilot Insured: ACA 6.25%, due 11/1/31 (d)		550,000		483,785
				548,818
Florida 5.7%
Bay County Florida Educational Facilities Revenue Series A 6.00%, due 9/1/40		1,000,000		808,030
Escambia County Health Facilities Authority Revenue, Baptist Hospital, Project Series A 6.00%, due 8/15/36		250,000		226,535
X  Miami Beach Health Facilities Authority, Hospital Revenue, Refunding, Mount Sinai Medical Center of Florida
5.375%, due 11/15/28		510,000		435,565
6.75%, due 11/15/29		1,000,000		986,040
X  North Sumter County Florida Utility Dependent District Revenue 6.25%, due 10/1/43		1,500,000		1,455,375
Seminole County Industrial Development Authority Revenue Series A 7.375%, due 11/15/41		750,000		741,255
Volusia County Industrial Development Authority Revenue Insured: CIFG 5.00%, due 6/1/35 (i)		1,270,000		1,012,279
				5,665,079
Georgia 2.4%
Augusta Airport Revenue, General Passanger Facility Charge Series A 5.15%, due 1/1/35		1,000,000		830,980
DeKalb County Hospital Authority Revenue, DeKalb Medical Center, Project 6.125%, due 9/1/40		1,075,000		979,390

12    MainStay High Yield Municipal Bond Fund  The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Municipal Bonds (continued)
Georgia (continued)
McDuffie County Development Authority Revenue 6.95%, due 12/1/23 (a)	$	600,000	$	595,440
				2,405,810
Guam 1.8%
Guam Department of Education Certificates Participation Series A 6.00%, due 12/1/20		500,000		480,955
Guam Government Hotel Occupancy Tax Revenue Series: A 6.50%, due 11/1/40		1,290,000		1,290,464
				1,771,419
Illinois 1.3%
Chicago, Illinois, O’Hare International Airport Special Facility Revenue, Refunding, Delta Airlines Term 6.45%, due 5/1/18		150,000		143,973
Illinois Development Finance Authority Revenue, Community Rehab Providers Series A 5.60%, due 7/1/19		610,000		542,802
Illinois Finance Authority Revenue, Chicago Charter School Project 5.00%, due 12/1/36		100,000		79,731
Illinois Finance Authority Revenue, Wesleyan University Series B, Insured: CIFG 4.50%, due 9/1/35 (i)		550,000		405,152
Massac County Hospital District Insured: CIFG 4.50%, due 11/1/31 (i)		110,000		102,728
				1,274,386
Indiana 3.1%
Carmel Redevelopment District Series C 6.50%, due 7/15/35 (j)		1,000,000		916,980
Indiana Finance Authority Hospital Revenue, King’s Daughter Hospital & Health 5.50%, due 8/15/45		1,500,000		1,202,295
Indianapolis in Multifamily Housing Revenue
Series A 6.00%, due 7/1/40		500,000		480,035
Series B 6.75%, due 7/1/40		500,000		466,630
				3,065,940
Iowa 0.3%
Xenia Rural Water District Revenue Insured: CIFG 4.50%, due 12/1/31 (i)		460,000		270,061
Kentucky 1.5%
Kentucky Economic Development Finance Authority Revenue, Owensboro Medical Health System Series A 6.375%, due 6/1/40		770,000		735,242
Pikeville Hospital Revenue, Refunding & Improvement Pikeville Medical Center 6.50%, due 3/1/41		700,000		702,947
				1,438,189
Louisiana 1.2%
Louisiana Public Facilities Authority Revenue, Black and Gold Facilities, Project
Series A, Insured: CIFG 4.50%, due 7/1/38 (i)		1,130,000		763,168
Series A, Insured: CIFG 5.00%, due 7/1/39 (i)		500,000		416,185
				1,179,353
Maryland 2.8%
Anne Arundel County 6.10%, due 7/1/40		750,000		695,272
Maryland Economic Development Corp. Student Housing Revenue, Refunding University Medical College Park Projects Insured: CIFG 4.50%, due 6/1/35 (i)		1,430,000		1,118,961
Maryland Health & Higher Educational Facilities Authority Revenue 6.25%, due 1/1/45		950,000		923,913
				2,738,146
Massachusetts 2.4%
Massachusetts Development Finance Agency Revenue, Eastern Nazarene College 5.625%, due 4/1/19		100,000		95,356
Massachusetts State Health & Educational Facilities Authority Revenue, Lowell General Hospital Series C 5.125%, due 7/1/35		1,565,000		1,254,348

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Municipal Bonds (continued)
Massachusetts (continued)
Massachusetts State Health & Educational Facilities Authority Revenue, Suffolk University Series A 6.25%, due 7/1/30	$	1,000,000	$	1,036,760
				2,386,464
Michigan 4.3%
Chandler Park Academy, Public School Academy Revenue 5.125%, due 11/1/35		605,000		451,984
Detroit Michigan Series A, Insured: XLCA 5.00%, due 4/1/13 (g)		100,000		96,923
Michigan Finance Authority Educational Facility Revenue Series A 8.00%, due 10/1/30		1,250,000		1,298,650
Michigan Finance Authority Revenue Series A-2 6.65%, due 3/20/12		1,000,000		1,009,510
Michigan Municipal Bond Authority Revenue, Local Government Loan Program
Series C, Insured: AMBAC 4.50%, due 5/1/31 (b)		305,000		247,980
Series B, Insured: AMBAC 5.00%, due 12/1/34 (b)		340,000		276,590
Michigan Public Educational Facilities Authority Revenue 8.00%, due 4/1/40		500,000		493,845
Michigan Tobacco Settlement Finance Authority Series A 6.00%, due 6/1/34		500,000		357,350
				4,232,832
Minnesota 0.4%
Washington County Housing & Redevelopment Authority, Hospital Facilities Revenue, Healtheast Project 5.50%, due 11/15/27		500,000		430,670
Mississippi 1.2%
Mississippi Development Bank Special Obligation, Magnolia Regional Health Center Series A 6.75%, due 10/1/36		1,250,000		1,236,438
Missouri 1.4%
Arnold Retail Corridor Transportation Development District 6.65%, due 5/1/38		500,000		470,275
Kansas City Industrial Development Authority Revenue 6.25%, due 9/1/32		1,000,000		956,820
				1,427,095
Nevada 1.4%
Clark County Economic Development Revenue, Refunding, Southwest Gas Corp. Project Series B, Insured: FGIC 5.00%, due 12/1/33 (a)(k)		290,000		251,465
Clark County Economic Development Revenue, University Southern Nevada Project Insured: RADIAN 4.625%, due 4/1/37 (h)		1,500,000		1,000,770
Director of the State of Nevada Department of Business & Industry Lease Revenue, Tahoe Regional Planning Agency Project Series A, Insured: AMBAC 4.50%, due 6/1/37 (b)		305,000		181,469
				1,433,704
New Hampshire 1.0%
Manchester Housing and Redevelopment Authority Revenue, Capital Appreciation
Series B, Insured: RADIAN, ACA (zero coupon), due 1/1/17 (d)(h)		375,000		224,531
Series B, Insured: ACA (zero coupon), due 1/1/26 (d)		1,400,000		332,598
New Hampshire Health & Education Facilities Authority Revenue, Franklin Pierce College, Insured: ACA 6.05%, due 10/1/34 (d)		520,000		417,555
				974,684
New Jersey 3.6%
Burlington County Bridge Commission Economic Development Revenue, Evergreen Project 5.625%, due 1/1/38		500,000		399,465
New Jersey Economic Development Authority Revenue, Applewood Estates Project Series A, Insured: RADIAN 5.00%, due 10/1/35 (h)		110,000		85,055
New Jersey Economic Development Authority Revenue, Capital Appreciation Series A, Insured: NATL-RE (zero coupon), due 7/1/18 (c)		225,000		141,523

14    MainStay High Yield Municipal Bond Fund  The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Municipal Bonds (continued)
New Jersey (continued)
New Jersey Economic Development Authority Revenue, Cigarette Tax 5.50%, due 6/15/31	$	665,000	$	583,438
5.75%, due 6/15/29		720,000		657,202
New Jersey Economic Development Authority Revenue, MSU Student Housing Project 5.875%, due 6/1/42		900,000		808,776
New Jersey Economic Development Authority Special Facilities Revenue Continental Airlines Project 5.50%, due 4/1/28 (a)		165,000		132,366
6.25%, due 9/15/29 (a)		575,000		526,855
New Jersey Economic Development Authority Special Facilities Revenue, Continental Airlines Project 6.40%, due 9/15/23 (a)		190,000		179,879
New Jersey Health Care Facilities Financing Authority Revenue Insured: NATL-RE (zero coupon), due 7/1/17 (c)		120,000		80,760
				3,595,319
New York 2.8%
New York Liberty Development Corp. Revenue Refunding, Second Priority Bank of America 6.375%, due 7/15/49		1,000,000		1,004,250
Port Authority of New York & New Jersey Special Obligation Revenue 6.00%, due 12/1/42		900,000		865,980
Suffolk County Economic Development Corp. Revenue Refunding, Peconic Landing Southold 6.00%, due 12/1/40		1,000,000		945,860
				2,816,090
North Carolina 0.7%
North Carolina Medical Care Commission Retirement Facilities Revenue, First Mortgage Galloway Ridge
Series A 5.875%, due 1/1/31		230,000		211,991
Series A 6.00%, due 1/1/39		520,000		463,663
				675,654
Ohio 5.2%
X  Buckeye, Ohio, Tobacco Settlement Financing Authority
Series A-2 5.125%, due 6/1/24		1,000,000		772,660
Series A-2 5.75%, due 6/1/34		600,000		413,400
Series A-2 5.875%, due 6/1/30		1,000,000		721,640
Cleveland-Cuyahoga County Port Authority Revenue, Student Housing Euclid Avenue Project
Insured: AMBAC 4.25%, due 8/1/15 (b)		200,000		194,300
Insured: AMBAC 4.50%, due 8/1/36 (b)		500,000		335,275
Erie County, Ohio, Hospital Facilities Revenue Series A 5.25%, due 8/15/46		275,000		216,609
Summit County Port Authority Revenue Series B 6.875%, due 5/15/40		1,250,000		1,224,725
Summit County Port Authority Revenue, Brimfield Project Series G 4.875%, due 5/15/25		500,000		407,305
Toledo-Lucas County Port Authority Special Assessment Revenue, Crocker Park Public Improvement Project 5.375%, due 12/1/35		1,105,000		889,083
				5,174,997
Oklahoma 0.1%
Norman Regional Hospital Authority Revenue Insured: RADIAN 5.50%, due 9/1/32 (h)		130,000		109,812
Oregon 0.3%
Oregon State Facilities Authority Revenue, Concordia University Project Series A 6.375%, due 9/1/40		250,000		246,868
Pennsylvania 7.2%
Allegheny County Industrial Development Authority Revenue, Propel Charter Montour Series A 6.75%, due 8/15/35		315,000		272,601
Cambria County Insured: FGIC 5.00%, due 8/15/23 (k)		100,000		95,386

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Municipal Bonds (continued)
Pennsylvania (continued)
Harrisburg, Pennsylvania, Authority Revenue, University of Science Series B 6.00%, due 9/1/36	$	600,000	$	505,020
Harrisburg, Pennsylvania, Capital Appreciation, Refunding
Series D, Insured: AMBAC (zero coupon), due 9/15/12 (b)		25,000		21,959
Series: F, Insured: AMBAC (zero coupon), due 9/15/13 (b)		160,000		127,907
Series F, Insured: AMBAC (zero coupon), due 9/15/14 (b)		100,000		72,759
Series F, Insured: AMBAC (zero coupon), due 3/15/15 (b)		460,000		319,304
Series F, Insured: AMBAC (zero coupon), due 9/15/15 (b)		60,000		39,733
Series D, Insured: AMBAC (zero coupon), due 3/15/16 (b)		125,000		78,604
Harrisburg, Pennsylvania, Parking Authority Revenue Series J, Insured: NATL-RE 5.00%, due 9/1/22 (c)		500,000		471,025
Montgomery County, Pennsylvania, Industrial Development Authority Revenue, Acts Retirement Communities Series A 4.50%, due 11/15/36		500,000		376,665
Pennsylvania Economic Development Financing Authority Revenue Series B 8.00%, due 5/1/29		250,000		250,235
Pennsylvania Higher Educational Facilities Authority Revenue, University of the Arts Insured: RADIAN 5.75%, due 3/15/30 (h)		1,000,000		938,640
Pennsylvania Higher Educational Facilties Authority Revenue, Multi Modal Drexel Univarsity Series B 4.15%, due 5/1/33		175,000		175,000
X  Philadelphia, PA 6.50%, due 8/1/41		1,500,000		1,561,680
Philadelphia Authority for Industrial Development Revenue, First Philadelphia Charter Series A 5.85%, due 8/15/37		650,000		533,917
Susquehanna Area Regional Airport Authority System Revenue Series A, Insured: AMBAC 5.00%, due 1/1/28 (a)(b)		120,000		103,309
West Shore Area Authority Hospital Revenue, Holy Spirit Hospital Sisters 6.50%, due 1/1/41		1,200,000		1,163,100
				7,106,844
Puerto Rico 1.0%
Puerto Rico Commonwealth Series C 6.50%, due 7/1/40		1,000,000		1,023,030
Rhode Island 1.1%
Providence Public Buildings Authority Revenue Series A, Insured: AGM 5.875%, due 6/15/26 (f)		1,000,000		1,003,700
Providence Redevelopment Agency Certificates of Participation Series A, Insured: RADIAN (zero coupon), due 9/1/35 (h)		280,000		48,440
				1,052,140
Tennessee 1.0%
Chattanooga Health Educational & Housing Facility Board Revenue, Refunding Series B 6.00%, due 10/1/35		500,000		433,495
Johnson City Health & Educational Facilities Board Revenue, First Mountain States Health Alliance Series A 5.50%, due 7/1/36		630,000		544,723
				978,218
Texas 8.1%
Alliance Airport Authority, American Airlines Project 7.00%, due 12/1/11 (a)		210,000		210,201
Central Texas Regional Mobility Authority Revenue (zero coupon), due 1/1/33		135,000		26,309
Harris County-Houston Sports Authority Revenue
Series B, Insured: NATL-RE (zero coupon), due 11/15/13 (c)		200,000		163,614
Series B, Insured: NATL-RE (zero coupon), due 11/15/15 (c)		1,400,000		969,556
Series B, Insured: NATL-RE (zero coupon), due 11/15/16 (c)		100,000		63,536

16    MainStay High Yield Municipal Bond Fund  The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Municipal Bonds (continued)
Texas (continued)
Harris County-Houston Sports Authority Revenue (continued)
Series B, Insured: NATL-RE (zero coupon), due 11/15/18 (c)	$	100,000	$	52,789
Series H, Insured: NATL-RE (zero coupon), due 11/15/24 (c)		100,000		30,548
Houston Texas Airport System Revenue, Special Facilities Continental Airline Series B 6.125%, due 7/15/27 (a)		115,000		105,531
San Juan Texas Higher Education Finance Authority Revenue, Idea Public Schools Series A 6.70%, due 8/15/40		1,000,000		981,510
X  Texas Private Activity Bond Surface Transportation Corp. Revenue
6.875%, due 12/31/39		1,450,000		1,492,398
7.00%, due 6/30/40		1,000,000		1,022,310
7.50%, due 6/30/33		750,000		798,705
Texas State Public Finance Authority Charter School Finance Corp. Revenue, ED—Burnham Wood Project Series A 6.25%, due 9/1/36		1,300,000		1,111,513
Travis County Health Facilities Development Corp. Revenue, Westminster Manor 7.125%, due 11/1/40		1,000,000		968,350
				7,996,870
Utah 1.1%
Santa Clara, Utah, Municipal Building Authority Lease Revenue Insured: CIFG 4.125%, due 2/1/28 (i)(j)		800,000		532,032
Utah State Charter School Finance Authority Revenue, North Star Academy Series A 7.00%, due 7/15/45		600,000		568,752
				1,100,784
Virginia 4.0%
X  Capital Beltway Funding Corp. Revenue Series B 5.00%, due 12/31/47		4,000,000		4,000,000
Washington 1.0%
Greater Wenatchee Regional Events Center Public Facilities District Revenue, Revenue & Special Tax Building 5.25%, due 12/1/11		1,000,000		980,070
Wisconsin 1.8%
Menasha Wisconsin
Insured: NATL-RE 3.70%, due 3/1/13 (c)		740,000		702,378
4.40%, due 9/1/17		100,000		83,168
Warrens Wisconsin, Refunding 4.70%, due 12/1/19		120,000		96,713
Wisconsin State Health & Educational Facilities Authority Revenue Series B, Insured: AGM 0.60%, due 12/1/29 (f)		940,000		940,000
				1,822,259
Wyoming 0.5%
West Park Hospital District Revenue, West Park Hospital Project Series B 6.50%, due 6/1/27		500,000		505,860
Total Municipal Bonds (Cost $98,981,949)				96,743,536
	Shares
Unaffiliated Investment Companies 3.6%
California 1.7%
BlackRock MuniYield California Fund, Inc.		4,960		66,216
BlackRock MuniYield California Insured Fund, Inc.		15,810		200,471
Invesco California Insured Municipal Income Trust		16,147		203,775
Invesco California Quality Municipal Securities		28,900		334,373
Nuveen California Dividend Advantage Municipal Fund		35,000		426,650
Nuveen California Municipal Market Opportunity Fund		30,000		379,500
Nuveen California Performance Plus Municipal Fund		3,020		38,022
				1,649,007
Michigan 0.3%
Nuveen Michigan Premium Income Fund		1,405		17,942
Nuveen Michigan Quality Income		23,148		299,766
				317,708

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

	Shares			Value
Unaffiliated Investment Companies (continued)
Multi-State 1.2%
Invesco Insured Municipal Income Trust		24,716		$	339,351
Invesco Municipal Income Opportunities Trust		38,418			231,661
Invesco Municipal Income Opportunities Trust II		8,290			55,377
Invesco Quality Municipal Income Trust		12,300			146,616
Invesco Quality Municipal Securities		34,620			450,752
					1,223,757
New York 0.0%‡
Nuveen New York Dividend Advantage Municipal Fund		620			7,973
Nuveen New York Investment Quality Municipal Fund		2,320			30,903
					38,876
Pennsylvania 0.4%
Nuveen Pennsylvania Investment Quality Municipal Fund		9,600			125,376
Nuveen Pennsylvania Premium Income Municipal Fund 2		20,000			245,600
					370,976
Total Unaffiliated Investment Companies (Cost $3,946,578)					3,600,324
Total Investments (Cost $102,928,527) (l)		101.3	%		100,343,860
Other Assets, Less Liabilities		(1.3	)		(1,297,362	)
Net Assets		100.0	%	$	99,046,498

‡	Less than one-tenth of a percent.
(a)	Interest on these securities is subject to alternative minimum tax.
(b)	AMBAC—Ambac Assurance Corp.
(c)	NATL-RE—National Public Finance Guarantee
(d)	ACA—ACA Financial Guaranty Corp.
(e)	AGC—ICC—Assured Guaranty Corporation—Insured Custody Certificates
(f)	AGM—Assured Guaranty Municipal Corp.
(g)	XLCA—XL Capital Assurance, Inc.
(h)	RADIAN—Radian Asset Assurance, Inc.
(i)	CIFG—CIFG Group
(j)	Illiquid security. The total market value of these securities at April 30, 2011 is $1,449,012, which represents 1.5% of the Fund’s net assets.
(k)	FGIC—Financial Guaranty Insurance Co.
(l)	At April 30, 2011, cost is $102,928,527 for federal income tax purposes and net unrealized depreciation is as follows:

Gross unrealized appreciation	$	901,716
Gross unrealized depreciation		(3,486,383	)
Net unrealized depreciation	$	(2,584,667	)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Municipal Bonds	$	—	$	96,743,536	$	—	$	96,743,536
Unaffiliated Investment Companies		3,600,324		—		—		3,600,324
Total Investments in Securities	$	3,600,324	$	96,743,536	$	—	$	100,343,860

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See note 2)

18    MainStay High Yield Municipal Bond Fund  The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $102,928,527)	$	100,343,860
Cash		98,413
Receivables:
Dividends and interest		1,578,521
Fund shares sold		1,043,019
Other assets		45,813
Total assets		103,109,626
Liabilities
Payables:
Investment securities purchased		3,863,883
Professional fees		28,348
Manager (See Note 3)		23,401
NYLIFE Distributors (See Note 3)		15,411
Fund shares redeemed		8,347
Shareholder communication		3,752
Transfer agent (See Note 3)		2,289
Custodian		2,143
Trustees		167
Accrued expenses		115
Dividend payable		115,272
Total liabilities		4,063,128
Net assets	$	99,046,498
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	9,913
Additional paid-in capital		102,327,909
		102,337,822
Distributions in excess of net investment income		(53,621	)
Accumulated net realized gain (loss) on investments		(653,036	)
Net unrealized depreciation (depreciation) on investments		(2,584,667	)
Net assets	$	99,046,498
Investor Class
Net assets applicable to outstanding shares	$	720,617
Shares of beneficial interest outstanding		72,202
Net asset value per share outstanding	$	9.98
Maximum sales charge (4.50% of offering price)		0.47
Maximum offering price per share outstanding	$	10.45
Class A
Net assets applicable to outstanding shares	$	36,812,168
Shares of beneficial interest outstanding		3,683,221
Net asset value per share outstanding	$	9.99
Maximum sales charge (4.50% of offering price)		0.47
Maximum offering price per share outstanding	$	10.46
Class C
Net assets applicable to outstanding shares	$	11,583,988
Shares of beneficial interest outstanding		1,161,272
Net asset value and offering price per share outstanding	$	9.98
Class I
Net assets applicable to outstanding shares	$	49,929,725
Shares of beneficial interest outstanding		4,996,075
Net asset value and offering price per share outstanding	$	9.99

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Interest	$	2,537,708
Dividends		119,802
Total income		2,657,510
Expenses
Manager (See Note 3)		222,956
Distribution/Service—Investor Class (See Note 3)		816
Distribution/Service—Class A (See Note 3)		32,134
Distribution/Service—Class C (See Note 3)		39,421
Registration		54,467
Professional fees		26,334
Transfer agent (See Note 3)		13,334
Shareholder communication		11,063
Custodian		9,680
Offering (See Note 2)		9,294
Trustees		1,151
Miscellaneous		3,581
Total expenses before waiver/reimbursement		424,231
Expense waiver/reimbursement from Manager (See Note 3)		(106,231	)
Net expenses		318,000
Net investment income (loss)		2,339,510
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Security transactions		(653,136	)
Realized gain distributions from unaffiliated investment companies		139
Net realized gain (loss) on investments and unaffiliated investment company transactions		(652,997	)
Net change in unrealized appreciation (depreciation) on investments		(5,091,484	)
Net realized and unrealized gain (loss) on investments		(5,744,481	)
Net increase (decrease) in net assets resulting from operations	$	(3,404,971	)

20    MainStay High Yield Municipal Bond Fund  The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the period March 31, 2010 (commencement
of operations) through October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	2,339,510		$	1,125,045
Net realized gain (loss) on investments and from unaffiliated investment company transactions		(652,997	)		231,616
Net change in unrealized appreciation (depreciation) on investments		(5,091,484	)		2,506,817
Net increase (decrease) in net assets resulting from operations		(3,404,971	)		3,863,478
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(19,058	)		(8,866	)
Class A		(768,312	)		(281,977	)
Class C		(205,237	)		(50,163	)
Class I		(1,407,973	)		(788,554	)
		(2,400,580	)		(1,129,560	)
From net realized gain on investments:
Investor Class		(1,870	)		—
Class A		(68,664	)		—
Class C		(19,909	)		—
Class I		(141,212	)		—
		(231,655	)		—
Total dividends and distributions to shareholders		(2,632,235	)		(1,129,560	)
Capital share transactions:
Net proceeds from sale of shares		43,953,364			70,786,977
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		2,037,622			1,052,548
Cost of shares redeemed		(14,765,230	)		(715,495	)
Increase (decrease) in net assets derived from capital share transactions		31,225,756			71,124,030
Net increase (decrease) in net assets		25,188,550			73,857,948
Net Assets
Beginning of period		73,857,948			—
End of period	$	99,046,498		$	73,857,948
Undistributed (distributions in excess of) net investment income at end of period	$	(53,621	)	$	7,449

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Financial Highlights selected per share data and ratios

	Investor Class
				March 31,
	Six months			2010**
	ended			through
	April 30,			October 31,
	2011*			2010
Net asset value at beginning of period	$	10.75		$	10.00
Net investment income (loss)		0.27			0.27
Net realized and unrealized gain (loss) on investments		(0.73	)		0.75
Total from investment operations		(0.46	)		1.02
Less dividends and distributions:
From net investment income		(0.28	)		(0.27	)
From net realized gain on investments		(0.03	)		—
Total dividends and distributions		(0.31	)		(0.27	)
Net asset value at end of period	$	9.98		$	10.75
Total investment return (a)		(4.24	%)(b)		10.32	%(b)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.65	% ††		5.03	%††
Net expenses		0.92	% ††		1.00	%††
Expenses (before waiver/reimbursement)		1.18	% ††		1.73	%††
Portfolio turnover rate		93	%		163	%
Net assets at end of period (in 000’s)	$	721		$	598

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.

	Class A
				March 31,
	Six months			2010**
	ended			through
	April 30,			October 31,
	2011*			2010
Net asset value at beginning of period	$	10.77		$	10.00
Net investment income (loss)		0.28			0.27
Net realized and unrealized gain (loss) on investments		(0.74	)		0.78
Total from investment operations		(0.46	)		1.05
Less dividends and distributions:
From net investment income		(0.29	)		(0.28	)
From net realized gain on investments		(0.03	)		—
Total dividends and distributions		(0.32	)		(0.28	)
Net asset value at end of period	$	9.99		$	10.77
Total investment return (a)		(4.20	%)(b)		10.59	%(b)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.72	% ††		5.20	% ††
Net expenses		0.85	% ††		0.85	% ††
Expenses (before waiver/reimbursement)		1.11	% ††		1.58	% ††
Portfolio turnover rate		93	%		163	%
Net assets at end of period (in 000’s)	$	36,812		$	23,062

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.

22    MainStay High Yield Municipal Bond Fund  The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class C
				March 31,
	Six months			2010**
	ended			through
	April 30,			October 31,
	2011*			2010
Net asset value at beginning of period	$	10.75		$	10.00
Net investment income (loss)		0.24			0.22
Net realized and unrealized gain (loss) on investments		(0.73	)		0.77
Total from investment operations		(0.49	)		0.99
Less dividends and distributions:
From net investment income		(0.25	)		(0.24	)
From net realized gain on investments		(0.03	)		—
Total dividends and distributions		(0.28	)		(0.24	)
Net asset value at end of period	$	9.98		$	10.75
Total investment return (a)		(4.59	%)(b)		9.96	%(b)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		4.92	% ††		4.33	%††
Net expenses		1.67	% ††		1.75	%††
Expenses (before waiver/reimbursement)		1.94	% ††		2.48	%††
Portfolio turnover rate		93	%		163	%
Net assets at end of period (in 000’s)	$	11,584		$	5,477

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.

	Class I
				March 31,
	Six months			2010**
	ended			through
	April 30,			October 31,
	2011*			2010
Net asset value at beginning of period	$	10.77		$	10.00
Net investment income (loss)		0.29			0.29
Net realized and unrealized gain (loss) on investments		(0.74	)		0.76
Total from investment operations		(0.45	)		1.05
Less dividends and distributions:
From net investment income		(0.30	)		(0.28	)
From net realized gain on investments		(0.03	)		—
Total dividends and distributions		(0.33	)		(0.28	)
Net asset value at end of period	$	9.99		$	10.77
Total investment return (a)		(4.19	%)(b)		10.66	%(b)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.95	% ††		5.26	%††
Net expenses		0.60	% ††		0.60	%††
Expenses (before reimbursement/waiver)		0.86	% ††		1.33	%††
Portfolio turnover rate		93	%		163	%
Net assets at end of period (in 000’s)	$	49,930		$	44,720

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(b)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    23

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay High Yield Municipal Bond Fund (the “Fund”), a diversified fund.

The Fund currently offers four classes of shares. Investor Class shares, Class A shares, Class C shares and Class I shares commenced operations on March 31, 2010. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $500,000 or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The four classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek a high level of current income exempt from federal income taxes. Total return is a secondary objective.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities are valued at the evaluated mean prices supplied by a pricing agent or brokers selected by the Fund’s Manager (as defined in Note 3(A)) in consultation with the Fund’s Subadvisor (as defined in Note 3(A)) whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by

24    MainStay High Yield Municipal Bond Fund

the Fund’s Manager, in consultation with the Fund’s Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Debt securities, including corporate bonds, U.S. government & federal agency bonds, municipal bonds, foreign bonds, Yankee bonds, convertible bonds, asset-backed securities, and mortgage-backed securities, are generally categorized as Level 2 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued. Its illiquidity might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of a Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in determining value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor determines the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued in such manner as the Board in good faith deems appropriate to reflect their fair market value.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income monthly and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including

mainstayinvestments.com    25

Notes to Financial Statements (unaudited) (continued)

those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Concentration of Risk. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific country, industry or region.

(H) Offering Costs. Costs incurred by the Fund in connection with the commencement of the Fund’s operations were being amortized on a straight line basis over twelve months.

(I) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement, as amended (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. MacKay Shields LLC (the “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of 0.55% of the Fund’s average daily net assets.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses for Class A shares do not exceed 0.85% of its average daily net assets. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points, to the other share classes of the Fund. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $222,956 and waived/reimbursed its fees in the amount of $106,231.

State Street Bank and Trust Company (“State Street”), 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from applicable Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Pursuant to the Class C Plans, applicable Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $1,348 and $27,966, respectively, for the six-month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Class C shares of $2,009 for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent

26    MainStay High Yield Municipal Bond Fund

expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	322
Class A		3,222
Class C		3,946
Class I		5,844

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Investor Class	$	26,294	3.6	%
Class A		26,368	0.1
Class C		26,128	0.2
Class I		40,798,939	81.7

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $1,122. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Income Tax

The tax character of distributions paid during the period ended October 31, 2010 shown in the Statement of Changes in Net Assets, was as follows:

	2010
Distribution paid from:
Ordinary Income	$	39,604
Exempt Interest Dividends		1,089,956
Total	$	1,129,560

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $110,487 and $76,438, respectively.

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		31,003		$	314,079
Shares issued to shareholders in reinvestment of dividends and distributions		1,955			19,574
Shares redeemed		(16,826	)		(168,772	)
Net increase (decrease) in shares outstanding before conversion		16,132			164,881
Shares converted into Investor Class (See Note 1)		8,064			80,397
Shares converted from Investor Class (See Note 1)		(7,645	)		(76,369	)
Net increase (decrease)		16,551		$	168,909
Period ended October 31, 2010 (a):
Shares sold		75,666		$	792,111
Shares issued to shareholders in reinvestment of dividends		827			8,767
Shares redeemed		(20,842	)		(220,971	)
Net increase (decrease)		55,651		$	579,907

mainstayinvestments.com    27

Notes to Financial Statements (unaudited) (continued)

Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		2,120,030		$	21,307,330
Shares issued to shareholders in reinvestment of dividends and distributions		52,452			526,152
Shares redeemed		(630,496	)		(6,338,976	)
Net increase (decrease) in shares outstanding before conversion		1,541,986			15,494,506
Shares converted into Class A (See Note 1)		7,637			76,369
Shares converted from Class A (See Note 1)		(8,056	)		(80,397	)
Net increase (decrease)		1,541,567		$	15,490,478
Period ended October 31, 2010 (a):
Shares sold		2,155,426		$	22,681,777
Shares issued to shareholders in reinvestment of dividends		20,800			221,470
Shares redeemed		(34,572	)		(370,076	)
Net increase (decrease)		2,141,654		$	22,533,171
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		779,603		$	7,867,065
Shares issued to shareholders in reinvestment of dividends and distributions		10,472			104,880
Shares redeemed		(138,345	)		(1,383,735	)
Net increase (decrease)		651,730		$	6,588,210
Period ended October 31, 2010 (a):
Shares sold		517,803		$	5,472,564
Shares issued to shareholders in reinvestment of dividends		3,619			38,369
Shares redeemed		(11,880	)		(124,448	)
Net increase (decrease)		509,542		$	5,386,485
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,399,683		$	14,464,890
Shares issued to shareholders in reinvestment of dividends and distributions		138,362			1,387,016
Shares redeemed		(695,023	)		(6,873,747	)
Net increase (decrease)		843,022		$	8,978,159
Period ended October 31, 2010 (a):
Shares sold		4,079,174		$	41,840,525
Shares issued to shareholders in reinvestment of dividends		73,879			783,942
Net increase (decrease)		4,153,053		$	42,624,467
(a) The Fund commenced investment operations on March 31, 2010.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

28    MainStay High Yield Municipal Bond Fund

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay High Yield Municipal Bond Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and MacKay Shields LLC (“MacKay Shields”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its March 2010 and June 2010 meetings. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments as part of its initial consideration and approval of the Agreements at the Board’s March 2010 meeting and as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and MacKay Shields in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and MacKay Shields at regular and special Board meetings. Information requested by and provided to the Board specifically by New York Life Investments and MacKay Shields in connection with these contract review processes included, among other things, information on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates, including MacKay Shields as subadvisor to the Fund, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and MacKay Shields; (ii) the investment performance of the Fund, New York Life Investments and MacKay Shields; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates, including MacKay Shields as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by New York Life Investments.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and MacKay Shields

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund and other MainStay Funds, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the legal and compliance environment of the Fund and the other MainStay Funds, for overseeing MacKay Shields’ compliance with the policies and investment objectives of the Fund and other MainStay Funds, and for implementing Board directives as they relate to the Fund and other MainStay Funds. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

mainstayinvestments.com    29

Board Consideration and Approval of Management Agreement and Subadvisory Agreement(Unaudited) (continued)

The Board also examined the nature, extent and quality of the services that MacKay Shields provides to the Fund. The Board evaluated MacKay Shields’ experience in serving as subadvisor to the Fund and managing other portfolios. It examined MacKay Shields’ track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at MacKay Shields, and MacKay Shields’ overall legal and compliance environment. The Board also reviewed MacKay Shields’ willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and MacKay Shields’ experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, and the Fund’s risk-adjusted investment performance, as appropriate. The Board also considered, in connection with the March 2010 contract review process, historical investment performance of other investment portfolios with similar strategies that are or have been managed by the portfolio managers of the Fund. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the investment performance of the Fund, along with ongoing efforts by New York Life Investments and MacKay Shields to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and MacKay Shields

The Board considered the costs of the services provided by New York Life Investments and MacKay Shields under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Fund. Because MacKay Shields is an affiliate of New York Life Investments whose subadvisory fees are paid directly by New York Life Investments, the Board considered cost and profitability information for New York Life Investments and MacKay Shields in the aggregate.

In evaluating any costs and profits of New York Life Investments and its affiliates, including MacKay Shields, due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and MacKay Shields must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the December 2010 15(c) process. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the December 2010 contract review process, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life

30    MainStay High Yield Municipal Bond Fund

Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates (including MacKay Shields) due to their relationships with the Fund supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to MacKay Shields are paid by New York Life Investments, not the Fund. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by New York Life Investments with respect to the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and MacKay Shields on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and MacKay Shields about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of MainStay Fund share classes, generally, and actions taken specifically with respect to the Fund, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) setting an investment minimum for Investor Class shares of the Fund at $2,500; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors and offering Investor Class shares of the Fund since its inception.

After considering all of the factors outlined above, the Board concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

mainstayinvestments.com    31

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; or (ii) on the SEC’s website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX, once it is filed, will be available free of charge upon request (i) by calling 800-MAINSTAY (624-6782); (ii) by visiting the Fund’s website at mainstayinvestments.com; or (iii) on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q will be available without charge on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

32    MainStay High Yield Municipal Bond Fund

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23182 MS136-11 MSMHY10-06/11

F5

MainStay ICAP Funds

Message from the President and Semiannual Report

Unaudited - April 30, 2011

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

This page intentionally left blank

Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
MainStay ICAP Equity Fund	5
MainStay ICAP Select Equity Fund	23
MainStay ICAP Global Fund	42
MainStay ICAP International Fund	58
Notes to Financial Statements	77
Board Consideration and Approval of Management Agreements and Subadvisory Agreements	94
Proxy Voting Policies and Procedures and Proxy Voting Record	98
Shareholder Reports and Quarterly Portfolio Disclosure	98

Investors should refer to each Fund’s Summary Prospectus and/or Prospectus and consider each Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about each Fund. You may obtain copies of each Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read each Summary Prospectus and/or Prospectus carefully before investing.

MainStay ICAP Equity Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

															Gross
															Expense
Class	Sales Charge		Six Months			One Year			Five Years			Ten Years			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		10	.39%		9	.80%		1	.69%		3	.23%		1	.56%
		Excluding sales charges		16	.82		16	.19		2	.85		3	.82		1	.56
Class A Shares4	Maximum 5.5% Initial Sales Charge	With sales charges		10	.56		10	.18		1	.82		3	.30		1	.18
		Excluding sales charges		17	.00		16	.59		2	.98		3	.88		1	.18
Class C Shares4	Maximum 1% CDSC	With sales charges		15	.38		14	.32		2	.07		3	.04		2	.31
	if Redeemed Within One Year of Purchase	Excluding sales charges		16	.38		15	.32		2	.07		3	.04		2	.31
Class I Shares	No Sales Charge			17	.16		16	.89		3	.31		4	.18		0	.93
Class R1 Shares4	No Sales Charge			17	.10		16	.81		3	.22		4	.09		1	.03
Class R2 Shares4	No Sales Charge			16	.91		16	.44		2	.95		3	.82		1	.28
Class R3 Shares4	No Sales Charge			16	.79		16	.19		2	.70		3	.56		1	.53

1.  The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements. Effective August 31, 2006, ICAP Equity Fund was renamed MainStay ICAP Equity Fund. At that time, the Fund’s existing no-load shares were redesignated as Class I shares.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on April 29, 2008, includes the historical performance of Class A shares through April 28, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Performance figures for Class A, C, R1, R2 and R3 shares, first offered on September 1, 2006, includes the historical performance of Class I shares through August 31, 2006, adjusted for differences in certain expenses and fees. Unadjusted, the performance for these share classes might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
S&P 500® Index5		16	.36%		17	.22%		2	.95%		2	.82%
S&P 500® Value Index6		17	.97		15	.52		1	.00		2	.60
Average Lipper Large-Cap Value Fund7		16	.48		14	.48		1	.14		3	.35

5.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500® Index is the Fund’s broad-based securities market index for comparison purposes. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.
6.	The S&P 500® Value Index represents approximately half of the market capitalization of the stocks in the S&P 500® Index that, on a growth-value spectrum, have been identified as falling either wholly or partially within the value half of the spectrum based on multiple factors. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.
7.	The average Lipper large-cap value fund is representative of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s U.S. Diversified Equity large-cap floor. Large-cap value funds typically have a below average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500® Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on total returns with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay ICAP Equity Fund

Cost in Dollars of a $1,000 Investment in MainStay ICAP Equity Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,168.20	$	7.90	$	1,017.50	$	7.35
Class A Shares	$	1,000.00	$	1,170.00	$	6.40	$	1,018.90	$	5.96
Class C Shares	$	1,000.00	$	1,163.80	$	11.91	$	1,013.80	$	11.08
Class I Shares	$	1,000.00	$	1,171.60	$	4.85	$	1,020.30	$	4.51
Class R1 Shares	$	1,000.00	$	1,171.00	$	5.33	$	1,019.90	$	4.96
Class R2 Shares	$	1,000.00	$	1,169.10	$	6.88	$	1,018.40	$	6.41
Class R3 Shares	$	1,000.00	$	1,167.90	$	8.22	$	1,017.20	$	7.65

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.47% for Investor Class, 1.19% for Class A, 2.22% for Class C, 0.90% for Class I, 0.99% for Class R1, 1.28% for Class R2 and 1.53% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Sector Composition as of April 30, 2011 (Unaudited)

Financials	21.8	%
Health Care	18.7
Consumer Discretionary	13.1
Consumer Staples	11.6
Energy	10.0
Information Technology	8.7
Telecommunication Services	6.4
Industrials	3.3
Materials	2.5
Short-Term Investment	4.0
Other Assets, Less Liabilities	–0.1
	100.0	%

See Portfolio of Investments beginning on page 11 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	Sanofi-Aventis, Sponsored ADR
2.	Pfizer, Inc.
3.	PepsiCo., Inc.
4.	Vodafone Group PLC, Sponsored ADR
5.	JPMorgan Chase & Co.
6.	Time Warner, Inc.
7.	Viacom, Inc. Class B
8.	Coca-Cola Co. (The)
9.	Merck & Co., Inc.
10.	Honeywell International, Inc.

8    MainStay ICAP Equity Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Jerrold K. Senser, CFA, and Thomas R. Wenzel, CFA, of Institutional Capital LLC (ICAP), the Fund’s Subadvisor.

How did MainStay ICAP Equity Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay ICAP Equity Fund returned 16.82% for Investor Class shares, 17.00% for Class A shares and 16.38% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 17.16%, Class R1 shares returned 17.10%, Class R2 shares returned 16.91% and Class R3 shares returned 16.79%. Investor Class, Class A, Class I, Class R1, Class R2 and Class R3 shares outperformed—and Class C shares underperformed—the 16.48% return of the average Lipper¹ large-cap value fund for the reporting period. All share classes outperformed the 16.36% return of the S&P 500^® Index² for the six months ended April 30, 2011. The S&P 500^® Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

A number of factors affected the Fund’s performance relative to the S&P 500^® Index. Strong stock selection in the consumer discretionary and health care sectors added to the Fund’s rela-tive performance. Weak stock selection in the materials and consumer staples sectors, however, detracted from performance relative to the Fund’s benchmark. The Fund benefited from an underweight position in the information technology sector, but an underweight position in the industrials sector detracted from the Fund’s performance relative to the S&P 500^® Index.

During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?

The sectors that made the strongest positive contributions to the Fund’s performance relative to the S&P 500^® Index were consumer discretionary, health care and information technology. (Contributions take weightings and total returns into account.) Favorable stock selection was the primary driver for both consumer discretionary and health care, while underweighting the information technology sector added to the Fund’s relative performance.

Sectors that were particularly weak relative to the Index were materials, consumer staples and financials. Poor stock selection was the primary driver in materials and consumer staples, while overweighting the financials sector detracted from the Fund’s relative performance. Although each of these sectors detracted from the Fund’s relative performance, only the materials sector had a negative total return for the reporting period.

During the reporting period, which individual stocks made the strongest positive contributions to the Fund’s absolute performance and which stocks detracted the most?

The stocks that made the strongest positive contributions to the Fund’s absolute performance were integrated oil companies Occidental Petroleum and Marathon Oil and media company Viacom. Each of the integrated oil companies benefited from the rise in oil prices during the reporting period. Marathon Oil also benefited when plans to spin off its refining business met with investor approval. Viacom benefited as better ratings led to increased revenue from advertising and affiliate fees. All three stocks remained in the Fund at the end of the reporting period.

Major detractors from the Fund’s absolute performance included networking and communications provider Cisco Systems, gold producer Newmont Mining and global investment bank Goldman Sachs. Cisco Systems underperformed when its sales and earnings outlook disappointed investors. Newmont Mining lagged as hopes that gold prices would continue to rise became less certain. We sold the Fund’s positions in both of these stocks. Goldman Sachs remained in the Fund at the end of the reporting period because we continued to believe that the firm could benefit from increased investor confidence and activity.

Did the Fund make any significant purchases or sales during the reporting period?

During a reporting period characterized by ongoing, if somewhat restrained, economic recovery, the stock market remained volatile but continued to rebound overall. In this environment, we continued to look for stocks with attractive valuations and specific catalysts that could trigger appreciation over a 12- to 18-month time frame.

During the reporting period, we added media company Time Warner to the Fund. The investment reflected our belief that the company’s advertising growth and ability to increase cable-network affiliate fees could provide consistent revenue and earnings upside. In our view, increasing market penetration and strong programming and ratings should give Time Warner leverage on affiliate fees. We also added global agriculture business Archer-Daniels-Midland. We believed that regional food-commodity supply disruptions may continue to create urgent needs around the globe, generating higher crop prices and supply dislocations that could result in greater opportunities for Archer-Daniels-Midland’s service business.

In addition to the sales already mentioned, we sold the Fund’s positions in regional bank U.S. Bancorp and independent energy producer Apache. Each was sold because we believed other stocks had greater upside potential and were more attractive on a relative-valuation basis.

1. See footnote on page 6 for more information about Lipper Inc.
 2. See footnote on page 6 for more information on the S&P 500^® Index.

mainstayinvestments.com    9

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, the Fund increased its sector exposure relative to the S&P 500^® Index in the health care and consumer discretionary sectors. In health care, we increased the size of the Fund’s already overweight position. In consumer discretionary, the Fund went from an underweight position at the beginning of the reporting period to an overweight position at the end of the reporting period.

Over the same period, the Fund decreased its sector weightings relative to the S&P 500^® Index in energy and materials. In each case, the Fund moved from an overweight position relative to the benchmark to an underweight position.

How was the Fund positioned at the end of the reporting period?

As of April 30, 2011, the Fund was most significantly overweight relative to the S&P 500^® Index in the health care and financials sectors and most significantly underweight relative to the Index in information technology and industrials. This positioning reflected our view on the prospects for economic growth and the relative attractiveness of the individual holdings in these sectors.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay ICAP Equity Fund

Portfolio of Investments April 30, 2011 (unaudited)

	Shares			Value
Common Stocks 96.1%†
Consumer Discretionary 13.1%
Johnson Controls, Inc.		399,821		$	16,392,661
Lowe’s Cos., Inc.		837,987			21,997,159
Staples, Inc.		434,050			9,175,817
X  Time Warner, Inc.		800,813			30,318,780
X  Viacom, Inc. Class B		580,384			29,692,445
					107,576,862
Consumer Staples 11.6%
Archer-Daniels-Midland Co.		388,550			14,384,121
X  Coca-Cola Co. (The)		435,681			29,391,040
CVS Caremark Corp.		134,549			4,876,056
Molson Coors Brewing Co. Class B		230,557			11,239,654
X  PepsiCo., Inc.		514,439			35,439,703
					95,330,574
Energy 10.0%
Chevron Corp.		183,233			20,053,019
ConocoPhillips		254,706			20,103,945
Marathon Oil Corp.		435,197			23,518,046
Occidental Petroleum Corp.		164,213			18,767,904
					82,442,914
Financials 21.8%
ACE, Ltd.		232,241			15,618,207
Aflac, Inc.		262,688			14,760,439
Aon Corp.		290,443			15,152,411
BB&T Corp.		639,965			17,227,858
BlackRock, Inc.		75,419			14,777,599
Charles Schwab Corp. (The)		456,085			8,350,916
Goldman Sachs Group, Inc. (The)		135,112			20,403,263
X  JPMorgan Chase & Co.		666,250			30,400,987
MetLife, Inc.		541,526			25,338,002
Wells Fargo & Co.		598,206			17,413,777
					179,443,459
Health Care 18.7%
Covidien PLC		395,956			22,050,790
HCA Holdings, Inc. (a)		325,550			10,678,040
X  Merck & Co., Inc.		756,510			27,196,535
X  Pfizer, Inc.		1,883,170			39,471,243
X  Sanofi-Aventis, Sponsored ADR (b)		999,325			39,493,324
WellPoint, Inc.		189,332			14,538,804
					153,428,736
Industrials 3.3%
X  Honeywell International, Inc.		440,275			26,958,038
Information Technology 8.7%
Accenture PLC Class A		218,449			12,479,991
Applied Materials, Inc.		915,950			14,371,256
Microsoft Corp.		975,952			25,394,271
QUALCOMM, Inc.		72,993			4,148,922
Texas Instruments, Inc.		434,438			15,435,582
					71,830,022
Materials 2.5%
Monsanto Co.		180,569			12,285,915
Owens-Illinois, Inc. (a)		271,433			8,053,417
					20,339,332
Telecommunication Services 6.4%
BCE, Inc.		594,949			22,268,941
X  Vodafone Group PLC, Sponsored ADR (b)		1,048,876			30,543,269
					52,812,210
Total Common Stocks (Cost $593,814,707)					790,162,147
	Principal
	Amount
Short-Term Investment 4.0%
Repurchase Agreement 4.0%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $32,751,850 (Collateralized by a United States Treasury Bill with rate of 0.025% and a maturity date of 7/21/11, with a Principal Amount of $33,410,000 and a Market Value of $33,408,074)	$	32,751,823			32,751,823
Total Short-Term Investment (Cost $32,751,823)					32,751,823
Total Investments (Cost $626,566,530) (c)		100.1	%		822,913,970
Other Assets, Less Liabilities		(0.1	)		(531,251	)
Net Assets		100.0	%	$	822,382,719

(a)	Non-income producing security.
(b)	ADR—American Depositary Receipt.
(c)	At April 30, 2011, cost is $649,219,248 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	196,742,705
Gross unrealized depreciation		(23,047,983	)
Net unrealized appreciation	$	173,694,722

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of Investments April 30, 2011 (unaudited) (continued)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	790,162,147	$	—	$	—	$	790,162,147
Short-Term Investment
Repurchase Agreement		—		32,751,823		—		32,751,823
Total Investments in Securities	$	790,162,147	$	32,751,823	$	—	$	822,913,970

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

12    MainStay ICAP Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $626,566,530)	$	822,913,970
Receivables:
Investment securities sold		1,930,362
Fund shares sold		1,212,456
Dividends and interest		688,793
Other assets		58,622
Total assets		826,804,203
Liabilities
Payables:
Investment securities purchased		3,169,363
Fund shares redeemed		516,419
Manager (See Note 3)		510,341
Transfer agent (See Note 3)		97,852
Professional fees		49,712
Shareholder communication		45,656
NYLIFE Distributors (See Note 3)		19,095
Trustees		4,269
Custodian		4,081
Accrued expenses		4,696
Total liabilities		4,421,484
Net assets	$	822,382,719
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	20,842
Additional paid-in capital		814,349,145
		814,369,987
Undistributed net investment income		105,421
Accumulated net realized gain (loss) on investments and foreign currency transactions		(188,440,129	)
Net unrealized appreciation (depreciation) on investments		196,347,440
Net assets	$	822,382,719
Investor Class
Net assets applicable to outstanding shares	$	13,058,171
Shares of beneficial interest outstanding		331,668
Net asset value per share outstanding	$	39.37
Maximum sales charge (5.50% of offering price)		2.29
Maximum offering price per share outstanding	$	41.66
Class A
Net assets applicable to outstanding shares	$	40,528,615
Shares of beneficial interest outstanding		1,028,430
Net asset value per share outstanding	$	39.41
Maximum sales charge (5.50% of offering price)		2.29
Maximum offering price per share outstanding	$	41.70
Class C
Net assets applicable to outstanding shares	$	8,891,772
Shares of beneficial interest outstanding		227,506
Net asset value and offering price per share outstanding	$	39.08
Class I
Net assets applicable to outstanding shares	$	746,852,670
Shares of beneficial interest outstanding		18,923,366
Net asset value and offering price per share outstanding	$	39.47
Class R1
Net assets applicable to outstanding shares	$	3,872,594
Shares of beneficial interest outstanding		98,070
Net asset value and offering price per share outstanding	$	39.49
Class R2
Net assets applicable to outstanding shares	$	6,562,819
Shares of beneficial interest outstanding		166,514
Net asset value and offering price per share outstanding	$	39.41
Class R3
Net assets applicable to outstanding shares	$	2,616,078
Shares of beneficial interest outstanding		66,454
Net asset value and offering price per share outstanding	$	39.37

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	8,543,204
Interest		1,261
Total income		8,544,465
Expenses
Manager (See Note 3)		3,256,690
Transfer agent (See Note 3)		339,274
Distribution/Service—Investor Class (See Note 3)		15,493
Distribution/Service—Class A (See Note 3)		34,227
Distribution/Service—Class C (See Note 3)		38,169
Distribution/Service—Class R2 (See Note 3)		6,334
Distribution/Service—Class R3 (See Note 3)		6,284
Professional fees		70,988
Registration		54,765
Shareholder communication		52,378
Trustees		13,801
Custodian		10,065
Shareholder service (See Note 3)		5,583
Miscellaneous		21,261
Total expenses before waiver/reimbursement		3,925,312
Expense waiver/reimbursement from Manager (See Note 3)		(117,348	)
Net expenses		3,807,964
Net investment income (loss)		4,736,501
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions (b)		61,960,005
Foreign currency transactions		4,135
Net realized gain (loss) on investments and foreign currency transactions		61,964,140
Net change in unrealized appreciation (depreciation) on investments		65,365,107
Net realized and unrealized gain (loss) on investments and foreign currency transactions		127,329,247
Net increase (decrease) in net assets resulting from operations	$	132,065,748

(a)	Dividends recorded net of foreign withholding taxes in the amount of $134,979.
(b)	Includes realized gain due to an in-kind transfer of securities in the amount of $21,157,510. (See Note 11)

14    MainStay ICAP Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	4,736,501		$	10,896,132
Net realized gain (loss) on investments and foreign currency transactions (a)		61,964,140			75,384,460
Net change in unrealized appreciation (depreciation) on investments		65,365,107			23,063,886
Net increase (decrease) in net assets resulting from operations		132,065,748			109,344,478
Dividends to shareholders:
From net investment income:
Investor Class		(40,275	)		(93,023	)
Class A		(120,041	)		(298,176	)
Class C		(2,397	)		(20,816	)
Class I		(4,728,378	)		(10,501,064	)
Class R1		(19,916	)		(30,641	)
Class R2		(20,468	)		(33,083	)
Class R3		(7,759	)		(10,232	)
Total dividends to shareholders		(4,939,234	)		(10,987,035	)
Capital share transactions:
Net proceeds from sale of shares		95,668,456			271,846,099
Net asset value of shares issued to shareholders in reinvestment of dividends		4,806,875			10,725,860
Cost of shares redeemed (b)		(259,654,976	)		(278,527,891	)
Increase (decrease) in net assets derived from capital share transactions		(159,179,645	)		4,044,068
Net increase (decrease) in net assets		(32,053,131	)		102,401,511
Net Assets
Beginning of period		854,435,850			752,034,339
End of period	$	822,382,719		$	854,435,850
Undistributed net investment income at end of period	$	105,421		$	308,154

(a)	Includes realized gains due to an in-kind transfer of securities in the amount of $21,157,510 in 2011 and $7,782,475 in 2010. (See Note 11)
(b)	Includes redemption of shares due to an in-kind transfer of securities in the amount of $99,040,775 in 2011 and $55,704,242 in 2010. (See Note 11)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Financial Highlights selected per share data and ratios

	Investor Class
										April 29,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	33.81		$	29.89		$	26.95		$	39.51
Net investment income (loss)		0.11	(a)		0.22	(a)		0.32	(a)		0.27
Net realized and unrealized gain (loss) on investments		5.57			3.95			3.15			(12.55	)
Total from investment operations		5.68			4.17			3.47			(12.28	)
Less dividends:
From net investment income		(0.12	)		(0.25	)		(0.53	)		(0.28	)
Net asset value at end of period	$	39.37		$	33.81		$	29.89		$	26.95
Total investment return (b)		16.82	%(c)		14.02	%		13.32	%		(31.24	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.60	%††		0.69	%		1.24	%		1.54	% ††
Net expenses		1.47	%††		1.56	%		1.29	%		1.19	% ††
Expenses (before waiver/reimbursement)		1.47	%††		1.56	%		1.69	%		1.61	% ††
Portfolio turnover rate		31	%		64	%		93	%		106	%
Net assets at end of period (in 000’s)	$	13,058		$	12,036		$	11,465		$	10,798

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

16    MainStay ICAP Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
										January 1,						September 1,
	Six months									2008***						2006**
	ended			Year ended						through			Year ended			through
	April 30,			October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.84		$	29.89		$	26.93		$	41.53		$	45.01		$	44.82
Net investment income (loss)		0.15	(a)		0.34	(a)		0.35	(a)		0.42			0.66			0.20	(a)
Net realized and unrealized gain (loss) on investments		5.59			3.96			3.15			(14.59	)		1.88			4.02
Total from investment operations		5.74			4.30			3.50			(14.17	)		2.54			4.22
Less dividends and distributions:
From net investment income		(0.17	)		(0.35	)		(0.54	)		(0.43	)		(0.61	)		(0.30	)
From net realized gain on investments		—			—			—			—			(5.41	)		(3.73	)
Total dividends and distributions		(0.17	)		(0.35	)		(0.54	)		(0.43	)		(6.02	)		(4.03	)
Net asset value at end of period	$	39.41		$	33.84		$	29.89		$	26.93		$	41.53		$	45.01
Total investment return (b)		17.00	%(c)		14.44	%		13.46	%		(34.38	%)(c)		5.78	%		9.55	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.83	%††		1.08	%		1.35	%		1.38	% ††		1.22	%		1.28	%††
Net expenses		1.19	%††		1.18	%		1.18	%		1.18	% ††		1.18	%		1.30	%††
Expenses (before waiver/reimbursement)		1.19	%††		1.18	%		1.26	%		1.35	% ††		1.36	%		1.39	%††
Portfolio turnover rate		31	%		64	%		93	%		106	%		71	%		80	%
Net assets at end of period (in 000’s)	$	40,529		$	24,138		$	25,257		$	21,826		$	51,349		$	6,798

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class C
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.59		$	29.78		$	26.86		$	41.43		$	44.96		$	44.82
Net investment income (loss)		(0.03	)(a)		(0.02	)(a)		0.13	(a)		0.19			0.34			0.08	(a)
Net realized and unrealized gain (loss) on investments		5.53			3.93			3.13			(14.55	)		1.85			4.03
Total from investment operations		5.50			3.91			3.26			(14.36	)		2.19			4.11
Less dividends and distributions:
From net investment income		(0.01	)		(0.10	)		(0.34	)		(0.21	)		(0.31	)		(0.24	)
From net realized gain on investments		—			—			—			—			(5.41	)		(3.73	)
Total dividends and distributions		(0.01	)		(0.10	)		(0.34	)		(0.21	)		(5.72	)		(3.97	)
Net asset value at end of period	$	39.08		$	33.59		$	29.78		$	26.86		$	41.43		$	44.96
Total investment return (b)		16.38	% (c)		13.15	%		12.51	%		(34.82	%)(c)		4.99	%		9.30	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.18	%)††		(0.07	%)		0.52	%		0.65	% ††		0.49	%		0.54	%††
Net expenses		2.22	% ††		2.31	%		2.04	%		1.94	% ††		1.93	%		2.05	%††
Expenses (before waiver/reimbursement)		2.22	% ††		2.31	%		2.44	%		2.30	% ††		2.11	%		2.14	%††
Portfolio turnover rate		31	%		64	%		93	%		106	%		71	%		80	%
Net assets at end of period (in 000’s)	$	8,892		$	6,825		$	5,206		$	4,996		$	8,606		$	1,922

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

18    MainStay ICAP Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
										January 1,
	Six months									2008***
	ended									through
	April 30,			Year ended October 31,						October 31,			Year ended December 31,
	2011*			2010			2009			2008			2007			2006			2005
Net asset value at beginning of period	$	33.89		$	29.93		$	26.97		$	41.57		$	45.03		$	41.17		$	44.01
Net investment income (loss)		0.22	(a)		0.43	(a)		0.45	(a)		0.54			0.77			0.63	(a)		0.65
Net realized and unrealized gain (loss) on investments		5.58			3.96			3.14			(14.62	)		1.94			7.59			4.17
Total from investment operations		5.80			4.39			3.59			(14.08	)		2.71			8.22			4.82
Less dividends and distributions:
From net investment income		(0.22	)		(0.43	)		(0.63	)		(0.52	)		(0.76	)		(0.63	)		(0.64	)
From net realized gain on investments		—			—			—			—			(5.41	)		(3.73	)		(7.02	)
Total dividends and distributions		(0.22	)		(0.43	)		(0.63	)		(0.52	)		(6.17	)		(4.36	)		(7.66	)
Net asset value at end of period	$	39.47		$	33.89		$	29.93		$	26.97		$	41.57		$	45.03		$	41.17
Total investment return (b)		17.16	%(c)		14.76	%		13.86	%		(34.18	%)(c)		6.20	%		20.17	%		10.91	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.20	%††		1.35	%		1.76	%		1.79	% ††		1.63	%		1.42	%		1.37	%
Net expenses		0.90	%††		0.90	%		0.83	%		0.80	% ††		0.80	%		0.80	%		0.80	%
Expenses (before reimbursement/waiver)		0.93	%††		0.93	%		1.02	%		0.96	% ††		0.92	%		0.88	%		0.88	%
Portfolio turnover rate		31	%		64	%		93	%		106	%		71	%		80	%		86	%
Net assets at end of period (in 000’s)	$	746,853		$	801,517		$	705,425		$	732,479		$	1,041,210		$	982,543		$	800,011

*	Unaudited.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Financial Highlights selected per share data and ratios

	Class R1
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.91		$	29.94		$	26.98		$	41.59		$	45.00		$	44.82
Net investment income (loss)		0.20	(a)		0.40	(a)		0.39	(a)		0.52			0.77			0.22	(a)
Net realized and unrealized gain (loss) on investments		5.58			3.97			3.18			(14.64	)		1.94			4.03
Total from investment operations		5.78			4.37			3.57			(14.12	)		2.71			4.25
Less dividends and distributions:
From net investment income		(0.20	)		(0.40	)		(0.61	)		(0.49	)		(0.71	)		(0.34	)
From net realized gain on investments		—			—			—			—			(5.41	)		(3.73	)
Total dividends and distributions		(0.20	)		(0.40	)		(0.61	)		(0.49	)		(6.12	)		(4.07	)
Net asset value at end of period	$	39.49		$	33.91		$	29.94		$	26.98		$	41.59		$	45.00
Total investment return (b)		17.10	%(c)		14.67	%		13.73	%		(34.24	%)(c)		6.10	%		9.67	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.07	%††		1.24	%		1.49	%		1.66	% ††		1.72	%		1.38	%††
Net expenses		0.99	%††		1.01	%		0.94	%		0.90	% ††		0.90	%		0.90	%††
Expenses (before waiver/reimbursement)		1.03	%††		1.03	%		1.11	%		1.06	% ††		1.02	%		0.99	%††
Portfolio turnover rate		31	%		64	%		93	%		106	%		71	%		80	%
Net assets at end of period (in 000’s)	$	3,873		$	3,351		$	2,268		$	1,370		$	1,097		$	40

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R1 shares are not subject to sales charges.
(c)	Total investment return is not annualized.

20    MainStay ICAP Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R2
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.85		$	29.90		$	26.94		$	41.54		$	45.02		$	44.82
Net investment income (loss)		0.14	(a)		0.30	(a)		0.33	(a)		0.44			0.63			0.12	(a)
Net realized and unrealized gain (loss) on investments		5.57			3.97			3.17			(14.62	)		1.92			4.13
Total from investment operations		5.71			4.27			3.50			(14.18	)		2.55			4.25
Less dividends and distributions:
From net investment income		(0.15	)		(0.32	)		(0.54	)		(0.42	)		(0.62	)		(0.32	)
From net realized gain on investments		—			—			—			—			(5.41	)		(3.73	)
Total dividends and distributions		(0.15	)		(0.32	)		(0.54	)		(0.42	)		(6.03	)		(4.05	)
Net asset value at end of period	$	39.41		$	33.85		$	29.90		$	26.94		$	41.54		$	45.02
Total investment return (b)		16.91	%(c)		14.36	%		13.47	%		(34.38	%)(c)		5.82	%		9.58	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.76	%††		0.93	%		1.27	%		1.43	% ††		1.29	%		0.77	%††
Net expenses		1.28	%††		1.28	%		1.19	%		1.15	% ††		1.15	%		1.15	%††
Expenses (before waiver/reimbursement)		1.28	%††		1.28	%		1.36	%		1.31	% ††		1.27	%		1.24	%††
Portfolio turnover rate		31	%		64	%		93	%		106	%		71	%		80	%
Net assets at end of period (in 000’s)	$	6,563		$	4,313		$	2,050		$	781		$	1,156		$	1,161

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Financial Highlights selected per share data and ratios

	Class R3
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.81		$	29.89		$	26.93		$	41.52		$	45.00		$	44.82
Net investment income (loss)		0.10	(a)		0.22	(a)		0.23	(a)		0.38			0.57			0.13	(a)
Net realized and unrealized gain (loss) on investments		5.57			3.97			3.21			(14.61	)		1.86			4.06
Total from investment operations		5.67			4.19			3.44			(14.23	)		2.43			4.19
Less dividends and distributions:
From net investment income		(0.11	)		(0.27	)		(0.48	)		(0.36	)		(0.50	)		(0.28	)
From net realized gain on investments		—			—			—			—			(5.41	)		(3.73	)
Total dividends and distributions		(0.11	)		(0.27	)		(0.48	)		(0.36	)		(5.91	)		(4.01	)
Net asset value at end of period	$	39.37		$	33.81		$	29.89		$	26.93		$	41.52		$	45.00
Total investment return (b)		16.79	%(c)		14.07	%		13.22	%		(34.51	%)(c)		5.55	%		9.49	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.53	%††		0.70	%		0.88	%		1.16	% ††		0.98	%		0.86	%††
Net expenses		1.53	%††		1.53	%		1.45	%		1.40	% ††		1.40	%		1.40	%††
Expenses (before waiver/reimbursement)		1.53	%††		1.53	%		1.60	%		1.57	% ††		1.52	%		1.49	%††
Portfolio turnover rate		31	%		64	%		93	%		106	%		71	%		80	%
Net assets at end of period (in 000’s)	$	2,616		$	2,257		$	365		$	72		$	67		$	27

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.
(c)	Total investment return is not annualized.

22    MainStay ICAP Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

MainStay ICAP Select Equity Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

															Gross
															Expense
Class	Sales Charge		Six Months			One Year			Five Years			Ten Years			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		9	.24%		9	.99%		2	.35%		4	.74%		1	.51%
		Excluding sales charges		15	.60		16	.39		3	.52		5	.34		1	.51
Class A Shares4	Maximum 5.5% Initial Sales Charge	With sales charges		9	.38		10	.29		2	.49		4	.82		1	.23
		Excluding sales charges		15	.74		16	.71		3	.66		5	.41		1	.23
Class B Shares5	Maximum 5% CDSC	With sales charges		10	.17		10	.51		2	.39		4	.56		2	.26
	if Redeemed Within the First Six Years of Purchase	Excluding sales charges		15	.17		15	.51		2	.75		4	.56		2	.26
Class C Shares4	Maximum 1% CDSC	With sales charges		14	.17		14	.51		2	.75		4	.56		2	.26
	if Redeemed Within One Year of Purchase	Excluding sales charges		15	.17		15	.51		2	.75		4	.56		2	.26
Class I Shares	No Sales Charge			15	.94		17	.03		3	.95		5	.69		0	.98
Class R1 Shares4	No Sales Charge			15	.85		16	.87		3	.83		5	.58		1	.08
Class R2 Shares4	No Sales Charge			15	.67		16	.55		3	.56		5	.31		1	.33
Class R3 Shares4	No Sales Charge			15	.59		16	.27		3	.32		5	.06		1	.58

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements. Effective August 31, 2006, ICAP Select Equity Fund was renamed MainStay ICAP Select Equity Fund. At that time, the Fund’s existing no-load shares were redesignated as Class I shares.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on April 29, 2008, includes the historical performance of Class A shares through April 28, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance for Investor Class shares might have been lower.
4.	Performance figures for Class A, C, R1, R2 and R3 shares, first offered on September 1, 2006, includes the historical performance of Class I shares through August 31, 2006, adjusted for differences in certain expenses and fees. Unadjusted, the performance for these share classes might have been lower.
5.	Performance figures for Class B shares, first offered on November 13, 2009, includes the historical performance of Class I shares through November 12, 2009, adjusted for differences in certain expenses and fees. Unadjusted, the performance for Class B shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    23

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
S&P 500® Index6		16	.36%		17	.22%		2	.95%		2	.82%
S&P 500® Value Index7		17	.97		15	.52		1	.00		2	.60
Average Lipper Large-Cap Core Fund8		15	.26		15	.35		2	.46		2	.65

6.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500® Index is the Fund’s broad-based securities market index for comparison purposes. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.
7.	The S&P 500® Value Index represents approximately half of the market capitalization of the stocks in the S&P 500® Index that, on a growth-value spectrum, have been identified as falling either wholly or partially within the value half of the spectrum based on multiple factors. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.
8.	The average Lipper large-cap core fund is representative of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s U.S. Diversified Equity large-cap floor. Large-cap core funds have more latitude in the companies in which they invest. Large-cap core funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500® Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on total returns with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

24    MainStay ICAP Select Equity Fund

Cost in Dollars of a $1,000 Investment in MainStay ICAP Select Equity Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled ”Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,156.00	$	7.64	$	1,017.70	$	7.15
Class A Shares	$	1,000.00	$	1,157.40	$	6.31	$	1,018.90	$	5.91
Class B Shares	$	1,000.00	$	1,151.70	$	11.63	$	1,014.00	$	10.89
Class C Shares	$	1,000.00	$	1,151.70	$	11.63	$	1,014.00	$	10.89
Class I Shares	$	1,000.00	$	1,159.40	$	4.82	$	1,020.30	$	4.51
Class R1 Shares	$	1,000.00	$	1,158.50	$	5.62	$	1,019.60	$	5.26
Class R2 Shares	$	1,000.00	$	1,156.70	$	6.95	$	1,018.30	$	6.51
Class R3 Shares	$	1,000.00	$	1,155.90	$	8.29	$	1,017.10	$	7.75

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.43% for Investor Class, 1.18% for Class A, 2.18% for Class B and Class C, 0.90% for Class I, 1.05% for Class R1, 1.30% for Class R2 and 1.55% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    25

Sector Composition as of April 30, 2011 (Unaudited)

Financials	20.4	%
Health Care	19.3
Consumer Discretionary	16.0
Consumer Staples	11.6
Energy	9.7
Information Technology	9.5
Telecommunication Services	4.5
Industrials	3.8
Materials	1.7
Short-Term Investment	3.8
Other Assets, Less Liabilities	–0.3
	100.0	%

See Portfolio of Investments beginning on page 29 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	Pfizer, Inc.
2.	Sanofi-Aventis, Sponsored ADR
3.	PepsiCo., Inc.
4.	Coca-Cola Co. (The)
5.	Time Warner, Inc.
6.	Vodafone Group PLC, Sponsored ADR
7.	JPMorgan Chase & Co.
8.	Merck & Co., Inc.
9.	Marathon Oil Corp.
10.	Microsoft Corp.

26    MainStay ICAP Select Equity Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Jerrold K. Senser, CFA, and Thomas R. Wenzel, CFA, of Institutional Capital LLC (ICAP), the Fund’s Subadvisor.

How did MainStay ICAP Select Equity Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay ICAP Select Equity Fund returned 15.60% for Investor Class shares, 15.74% for Class A shares and 15.17% for both Class B and Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 15.94%, Class R1 shares returned 15.85%, Class R2 shares returned 15.67% and Class R3 shares returned 15.59%. Investor Class, Class A, Class I, Class R1, Class R2 and Class R3 shares outperformed—and Class B and Class C shares underperformed—the 15.26% return of the average Lipper¹ large-cap core fund for the reporting period. All share classes underperformed the 16.36% return of the S&P 500^® Index² for the six months ended April 30, 2011. The S&P 500^® Index is the Fund’s broad-based securities-market index. See page 23 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund underperformed the S&P 500^® Index during the reporting period primarily because of weak stock selection in the materials and financials sectors. Having an underweight allocation to the industrials sector also detracted from the Fund’s relative performance. These effects were partially offset by favorable stock selection in the consumer discretionary and energy sectors. An underweight position in the information technology sector also helped the Fund’s performance relative to its benchmark.

During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?

Among sectors in which the Fund invested, the strongest positive contributions to the Fund’s performance relative to the S&P 500^® Index came from consumer discretionary and energy. (Contributions take weightings and total returns into account.) Favorable stock selection was the primary driver in both cases. The Fund avoided the utilities sector, which underperformed during the reporting period. As a result, the Fund’s absence from utilities strengthened the Fund’s relative performance.

Sectors that were particularly weak relative to the S&P 500^® Index were financials, materials and consumer staples. Stock selection was the primary driver in each case. Although all three sectors detracted from the Fund’s relative performance, only the materials sector had a negative total return for the reporting period.

During the reporting period, which individual stocks made the strongest positive contributions to the Fund’s absolute performance and which stocks detracted the most?

The stocks that made the strongest positive contributions to the Fund’s absolute performance were integrated oil companies Occidental Petroleum, Marathon Oil and Conoco Phillips. Each of these companies benefited from the rise in oil prices during the reporting period. Marathon Oil also benefited when the company’s plans to spin off its refining business met with investor approval. Shares of ConocoPhillips advanced as the company made substantial progress in its ongoing effort to restructure and refocus the business for higher returns. All three stocks remained in the Fund at the end of the reporting period.

Major detractors from the Fund’s absolute performance included networking and communications provider Cisco Systems, gold producer Newmont Mining and global investment bank Goldman Sachs. Cisco Systems underperformed when its sales and earnings outlook disappointed investors. Newmont Mining lagged as hopes that gold prices would continue to rise became less certain. We sold the Fund’s positions in both of these stocks. Goldman Sachs remained in the Fund at the end of the reporting period because we continued to believe that the firm can benefit from increased investor confidence and activity.

Did the Fund make any significant purchases or sales during the reporting period?

During a reporting period characterized by ongoing, if somewhat restrained, economic recovery, the stock market remained vola-tile but continued to rebound overall. In this environment, we continued to look for stocks that had attractive valuations and specific catalysts that could trigger appreciation over a 12- to 18-month time frame.

During the reporting period, we added media company Time Warner to the Fund. The investment reflected our belief that the company’s advertising growth and ability to increase cable-network affiliate fees could provide consistent revenue and earnings upside. In our view, increasing market penetration and strong programming and ratings should give Time Warner leverage on affiliate fees. We also added global bank JPMorgan Chase. We believed that the company’s strong management team could take advantage of a pickup in global investment banking activity and a turnaround in U.S. commercial activity.

In addition to the sales already mentioned, we sold the Fund’s positions in insurance broker Aon and wireless communications technology company Qualcomm. Each was sold because we believed other stocks had greater upside potential and were more attractive on a relative-valuation basis.

 1. See footnote on page 24 for more information on Lipper Inc.
 2. See footnote on page 24 for more information on the S&P 500^® Index.

mainstayinvestments.com    27

Were there any significant sector weighting changes during the reporting period?

During the reporting period, the Fund increased its sector exposure relative to the S&P 500^® Index in consumer discretionary and financials. In consumer discretionary, the Fund went from an underweight position at the beginning of the reporting period to an overweight position at the end. In financials, we increased the size of the Fund’s already overweight position.

Over the same period, the Fund decreased its weighting rela-tive to the S&P 500^® Index in the energy sector, going from an overweight position to an underweight position as the Fund trimmed holdings in several energy stocks. The Fund also decreased the size of its position in information technology, becoming increasingly underweight in the sector relative to the benchmark.

How was the Fund positioned at the end of the reporting period?

As of April 30, 2011, the Fund was most significantly overweight relative to the S&P 500^® Index in the health care and consumer discretionary sectors and most significantly underweight relative to the Index in information technology and industrials. This positioning reflected our view on the prospects for economic growth and the relative attractiveness of individual holdings in these sectors.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

28    MainStay ICAP Select Equity Fund

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares			Value
Common Stocks 96.5%†
Consumer Discretionary 16.0%
Johnson Controls, Inc.		2,581,290		$	105,832,890
Lowe’s Cos., Inc.		4,827,780			126,729,225
Staples, Inc.		2,247,100			47,503,694
X  Time Warner, Inc.		4,418,600			167,288,196
Viacom, Inc. Class B		2,698,302			138,045,130
					585,399,135
Consumer Staples 11.6%
Archer-Daniels-Midland Co.		1,730,850			64,076,067
X  Coca-Cola Co. (The)		2,581,300			174,134,498
X  PepsiCo., Inc.		2,713,697			186,946,586
					425,157,151
Energy 9.7%
ConocoPhillips		1,420,800			112,143,744
X  Marathon Oil Corp.		2,669,578			144,263,995
Occidental Petroleum Corp.		858,221			98,086,078
					354,493,817
Financials 20.4%
Aflac, Inc.		1,292,850			72,645,242
BB&T Corp.		3,062,250			82,435,770
BlackRock, Inc.		366,250			71,763,025
Charles Schwab Corp. (The)		2,497,450			45,728,310
Goldman Sachs Group, Inc. (The)		732,450			110,607,274
X  JPMorgan Chase & Co.		3,313,800			151,208,694
MetLife, Inc.		2,669,550			124,908,244
Wells Fargo & Co.		3,088,728			89,912,872
					749,209,431
Health Care 19.3%
Covidien PLC		2,069,440			115,247,114
X  Merck & Co., Inc.		4,130,080			148,476,376
X  Pfizer, Inc.		10,964,360			229,812,985
X  Sanofi-Aventis, Sponsored ADR (a)		5,438,450			214,927,544
					708,464,019
Industrials 3.8%
Honeywell International, Inc.		2,294,476			140,490,766
Information Technology 9.5%
Accenture PLC Class A		1,016,250			58,058,363
Applied Materials, Inc.		4,187,450			65,701,091
X  Microsoft Corp.		5,440,625			141,565,062
Texas Instruments, Inc.		2,325,370			82,620,396
					347,944,912
Materials 1.7%
Monsanto Co.		935,450			63,648,018
Telecommunication Services 4.5%
X  Vodafone Group PLC, Sponsored ADR (a)		5,683,300			165,497,696
Total Common Stocks (Cost $2,830,499,910)					3,540,304,945
	Principal
	Amount
Short-Term Investment 3.8%
Repurchase Agreement 3.8%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $138,101,686 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11 with a Principal Amount of $140,865,000 and a Market Value of $140,864,237)	$	138,101,571			138,101,571
Total Short-Term Investment (Cost $138,101,571)					138,101,571
Total Investments (Cost $2,968,601,481) (b)		100.3	%		3,678,406,516
Other Assets, Less Liabilities		(0.3	)		(11,556,667	)
Net Assets		100.0	%	$	3,666,849,849

(a)	ADR—American Depositary Receipt
(b)	At April 30, 2011, cost is $3,002,523,281 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	713,323,850
Gross unrealized depreciation		(37,440,615	)
Net unrealized appreciation	$	675,883,235

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    29

Portfolio of Investments April 30, 2011 unaudited (continued)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	3,540,304,945	$	—	$	—	$	3,540,304,945
Short-Term Investment
Repurchase Agreement		—		138,101,571		—		138,101,571
Total Investments in Securities	$	3,540,304,945	$	138,101,571	$	—	$	3,678,406,516

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

30    MainStay ICAP Select Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $2,968,601,481)	$	3,678,406,516
Receivables:
Fund shares sold		11,377,408
Investment securities sold		4,971,303
Dividends and interest		3,217,144
Other assets		189,594
Total assets		3,698,161,965
Liabilities
Payables:
Investment securities purchased		23,744,314
Fund shares redeemed		4,159,374
Manager (See Note 3)		2,233,780
Transfer agent (See Note 3)		626,470
NYLIFE Distributors (See Note 3)		337,770
Professional fees		115,637
Shareholder communication		73,502
Custodian		8,691
Trustees		8,190
Accrued expenses		4,388
Total liabilities		31,312,116
Net assets	$	3,666,849,849
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	96,114
Additional paid-in capital		3,559,423,901
		3,559,520,015
Undistributed net investment income		258,583
Accumulated net realized gain (loss) on investments		(602,733,784	)
Net unrealized appreciation (depreciation) on investments		709,805,035
Net assets	$	3,666,849,849
Investor Class
Net assets applicable to outstanding shares	$	200,537,712
Shares of beneficial interest outstanding		5,261,565
Net asset value per share outstanding	$	38.11
Maximum sales charge (5.50% of offering price)		2.22
Maximum offering price per share outstanding		40.33
Class A
Net assets applicable to outstanding shares	$	617,291,247
Shares of beneficial interest outstanding		16,191,862
Net asset value per share outstanding	$	38.12
Maximum sales charge (5.50% of offering price)		2.22
Maximum offering price per share outstanding		40.34
Class B
Net assets applicable to outstanding shares	$	86,694,665
Shares of beneficial interest outstanding		2,292,126
Net asset value and offering price per share outstanding	$	37.82
Class C
Net assets applicable to outstanding shares	$	116,019,665
Shares of beneficial interest outstanding		3,067,454
Net asset value and offering price per share outstanding	$	37.82
Class I
Net assets applicable to outstanding shares	$	2,583,276,770
Shares of beneficial interest outstanding		67,648,621
Net asset value and offering price per share outstanding	$	38.19
Class R1
Net assets applicable to outstanding shares	$	22,044,115
Shares of beneficial interest outstanding		577,134
Net asset value and offering price per share outstanding	$	38.20
Class R2
Net assets applicable to outstanding shares	$	24,759,439
Shares of beneficial interest outstanding		649,450
Net asset value and offering price per share outstanding	$	38.12
Class R3
Net assets applicable to outstanding shares	$	16,226,236
Shares of beneficial interest outstanding		426,159
Net asset value and offering price per share outstanding	$	38.08

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    31

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends	$	32,107,286
Interest		6,404
Total income		32,113,690
Expenses
Manager (See Note 3)		13,101,941
Transfer agent (See Note 3)		2,256,464
Distribution/Service—Investor Class (See Note 3)		239,588
Distribution/Service—Class A (See Note 3)		687,233
Distribution/Service—Class B (See Note 3)		431,879
Distribution/Service—Class C (See Note 3)		523,981
Distribution/Service—Class R2 (See Note 3)		28,058
Distribution/Service—Class R3 (See Note 3)		35,532
Professional fees		196,652
Shareholder communication		173,113
Registration		126,546
Trustees		46,824
Shareholder service (See Note 3)		27,959
Custodian		21,985
Miscellaneous		60,831
Total expenses before waiver/reimbursement		17,958,586
Expense waiver/reimbursement from Manager (See Note 3)		(612,701	)
Net expenses		17,345,885
Net investment income (loss)		14,767,805
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		109,614,309
Net change in unrealized appreciation (depreciation) on investments		357,057,877
Net realized and unrealized gain (loss) on investments		466,672,186
Net increase (decrease) in net assets resulting from operations	$	481,439,991

32    MainStay ICAP Select Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	14,767,805		$	29,143,762
Net realized gain (loss) on investments		109,614,309			209,704,930
Net change in unrealized appreciation (depreciation) on investments		357,057,877			120,085,266
Net increase (decrease) in net assets resulting from operations		481,439,991			358,933,958
Dividends to shareholders:
From net investment income:
Investor Class		(554,576	)		(973,105	)
Class A		(2,243,174	)		(3,954,028	)
Class B		(5,383	)		(190,597	)
Class C		(8,230	)		(196,794	)
Class I		(12,438,426	)		(23,139,398	)
Class R1		(85,838	)		(163,665	)
Class R2		(81,850	)		(180,261	)
Class R3		(32,080	)		(42,212	)
Total dividends to shareholders		(15,449,557	)		(28,840,060	)
Capital share transactions:
Net proceeds from sale of shares		614,178,478			898,072,750
Net asset value of shares issued in connection with the acquisition of MainStay Value Fund (See Note 10)		—			354,083,152
Net asset value of shares issued in connection with the acquisition of MainStay Mid Cap Value Fund (See Note 10)		—			152,265,264
Net asset value of shares issued to shareholders in reinvestment of dividends		13,564,578			25,609,235
Cost of shares redeemed		(366,294,116	)		(560,864,715	)
Increase (decrease) in net assets derived from capital share transactions		261,448,940			869,165,686
Net increase (decrease) in net assets		727,439,374			1,199,259,584
Net Assets
Beginning of period		2,939,410,475			1,740,150,891
End of period	$	3,666,849,849		$	2,939,410,475
Undistributed net investment income at end of period	$	258,583		$	940,335

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    33

Financial Highlights selected per share data and ratios

	Investor Class
										April 29,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	33.06		$	28.68		$	25.62		$	36.87
Net investment income (loss)		0.10			0.22	(a)		0.25			0.25	(a)
Net realized and unrealized gain (loss) on investments		5.05			4.38			3.10			(11.25	)
Total from investment operations		5.15			4.60			3.35			(11.00	)
Less dividends:
From net investment income		(0.10	)		(0.22	)		(0.29	)		(0.25	)
Net asset value at end of period	$	38.11		$	33.06		$	28.68		$	25.62
Total investment return (b)		15.60	%(c)		16.12	%		13.33	%		(29.97	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.56	%††		0.71	%		0.99	%		1.49	% ††
Net expenses		1.43	%††		1.47	%		1.30	%		1.15	% ††
Expenses (before waiver/reimbursement)		1.43	%††		1.51	%		1.45	%		1.31	% ††
Portfolio turnover rate		34	%		55	%		101	%		117	%
Net assets at end of period (in 000’s)	$	200,538		$	185,828		$	9,808		$	7,601

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

34    MainStay ICAP Select Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.07		$	28.69		$	25.62		$	38.79		$	41.60		$	39.46
Net investment income (loss)		0.14			0.31	(a)		0.32			0.42	(a)		0.48	(a)		0.24	(a)
Net realized and unrealized gain (loss) on investments		5.06			4.38			3.09			(13.18	)		2.23			3.62
Total from investment operations		5.20			4.69			3.41			(12.76	)		2.71			3.86
Less dividends and distributions:
From net investment income		(0.15	)		(0.31	)		(0.34	)		(0.41	)		(0.51	)		(0.29	)
From net realized gain on investments		—			—			—			—			(5.01	)		(1.43	)
Total dividends and distributions		(0.15	)		(0.31	)		(0.34	)		(0.41	)		(5.52	)		(1.72	)
Net asset value at end of period	$	38.12		$	33.07		$	28.69		$	25.62		$	38.79		$	41.60
Total investment return (b)		15.74	%(c)		16.46	%		13.58	%		(33.14	%)(c)		6.62	%		9.84	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.77	%††		1.01	%		1.21	%		1.47	% ††		1.09	%		1.73	%††
Net expenses		1.18	%††		1.18	%		1.09	%		1.10	% ††		1.15	%		1.20	%††
Expenses (before waiver/reimbursement)		1.20	%††		1.23	%		1.28	%		1.24	% ††		1.26	%		1.29	%††
Portfolio turnover rate		34	%		55	%		101	%		117	%		123	%		115	%
Net assets at end of period (in 000’s)	$	617,291		$	478,386		$	190,956		$	142,130		$	161,070		$	16,514

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    35

Financial Highlights selected per share data and ratios

	Class B
				November 13,
	Six months			2009**
	ended			through
	April 30,			October 31,
	2011*			2010
Net asset value at beginning of period	$	32.84		$	29.93
Net investment income (loss)		(0.04	)		(0.01	)(a)
Net realized and unrealized gain (loss) on investments		5.02			2.99
Total from investment operations		4.98			2.98
Less dividends:
From net investment income		(0.00	)‡		(0.07	)
Net asset value at end of period	$	37.82		$	32.84
Total investment return (b)		15.17	% (c)		9.98	% (c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.18	%)††		(0.04	%)††
Net expenses		2.18	% ††		2.22	% ††
Expenses (before waiver/reimbursement)		2.18	% ††		2.26	% ††
Portfolio turnover rate		34	%		55	%
Net assets at end of period (in 000’s)	$	86,695		$	85,952

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

36    MainStay ICAP Select Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class C
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	32.84		$	28.56		$	25.53		$	38.68		$	41.56		$	39.46
Net investment income (loss)		(0.03	)		(0.01	)(a)		0.07			0.18	(a)		0.14	(a)		0.13	(a)
Net realized and unrealized gain (loss) on investments		5.01			4.36			3.09			(13.12	)		2.24			3.63
Total from investment operations		4.98			4.35			3.16			(12.94	)		2.38			3.76
Less dividends and distributions:
From net investment income		(0.00	)‡		(0.07	)		(0.13	)		(0.21	)		(0.25	)		(0.23	)
From net realized gain on investments		—			—			—			—			(5.01	)		(1.43	)
Total dividends and distributions		(0.00	)‡		(0.07	)		(0.13	)		(0.21	)		(5.26	)		(1.66	)
Net asset value at end of period	$	37.82		$	32.84		$	28.56		$	25.53		$	38.68		$	41.56
Total investment return (b)		15.17	% (c)		15.25	%		12.50	%		(33.59	%)(c)		5.83	%		9.59	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.22	%)††		(0.02	%)		0.28	%		0.65	% ††		0.33	%		0.91	%††
Net expenses		2.18	% ††		2.22	%		2.05	%		1.91	% ††		1.90	%		1.95	%††
Expenses (before waiver/reimbursement)		2.18	% ††		2.26	%		2.21	%		2.05	% ††		2.01	%		2.04	%††
Portfolio turnover rate		34	%		55	%		101	%		117	%		123	%		115	%
Net assets at end of period (in 000’s)	$	116,020		$	95,241		$	55,841		$	47,831		$	45,789		$	3,293

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    37

Financial Highlights selected per share data and ratios

	Class I
										January 1,
	Six months									2008***
	ended									through
	April 30,			Year ended October 31,						October 31,			Year ended December 31,
	2011*			2010			2009			2008			2007			2006			2005
Net asset value at beginning of period	$	33.12		$	28.74		$	25.67		$	38.84		$	41.62		$	36.17		$	34.35
Net investment income (loss)		0.19			0.41	(a)		0.37			0.51	(a)		0.64	(a)		0.57	(a)		0.45
Net realized and unrealized gain (loss) on investments		5.07			4.37			3.10			(13.20	)		2.21			6.83			2.70
Total from investment operations		5.26			4.78			3.47			(12.69	)		2.85			7.40			3.15
Less dividends and distributions:
From net investment income		(0.19	)		(0.40	)		(0.40	)		(0.48	)		(0.62	)		(0.52	)		(0.45	)
From net realized gain on investments		—			—			—			—			(5.01	)		(1.43	)		(0.88	)
Total dividends and distributions		(0.19	)		(0.40	)		(0.40	)		(0.48	)		(5.63	)		(1.95	)		(1.33	)
Net asset value at end of period	$	38.19		$	33.12		$	28.74		$	25.67		$	38.84		$	41.62		$	36.17
Total investment return (b)		15.94	%(c)		16.77	%		13.89	%		(32.99	%)(c)		6.95	%		20.60	%		9.22	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.06	%††		1.32	%		1.50	%		1.78	% ††		1.44	%		1.45	%		1.38	%
Net expenses		0.90	%††		0.90	%		0.83	%		0.80	% ††		0.80	%		0.80	%		0.80	%
Expenses (before reimbursement/waiver)		0.95	%††		0.98	%		1.03	%		0.94	% ††		0.91	%		0.88	%		0.93	%
Portfolio turnover rate		34	%		55	%		101	%		117	%		123	%		115	%		170	%
Net assets at end of period (in 000’s)	$	2,583,277		$	2,041,651		$	1,454,261		$	1,296,268		$	1,863,460		$	1,519,408		$	676,703

*	Unaudited.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.

38    MainStay ICAP Select Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R1
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.13		$	28.74		$	25.68		$	38.85		$	41.62		$	39.46
Net investment income (loss)		0.17			0.35	(a)		0.35			0.42	(a)		0.59	(a)		0.26	(a)
Net realized and unrealized gain (loss) on investments		5.07			4.39			3.08			(13.13	)		2.24			3.63
Total from investment operations		5.24			4.74			3.43			(12.71	)		2.83			3.89
Less dividends and distributions:
From net investment income		(0.17	)		(0.35	)		(0.37	)		(0.46	)		(0.59	)		(0.30	)
From net realized gain on investments		—			—			—			—			(5.01	)		(1.43	)
Total dividends and distributions		(0.17	)		(0.35	)		(0.37	)		(0.46	)		(5.60	)		(1.73	)
Net asset value at end of period	$	38.20		$	33.13		$	28.74		$	25.68		$	38.85		$	41.62
Total investment return (b)		15.85	%(c)		16.60	%		13.69	%		(33.03	%)(c)		6.87	%		9.94	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.89	%††		1.12	%		1.23	%		1.55	% ††		1.33	%		1.89	%††
Net expenses		1.05	%††		1.08	%		0.98	%		0.91	% ††		0.90	%		0.90	%††
Expenses (before waiver/reimbursement)		1.05	%††		1.08	%		1.13	%		1.06	% ††		1.01	%		0.99	%††
Portfolio turnover rate		34	%		55	%		101	%		117	%		123	%		115	%
Net assets at end of period (in 000’s)	$	22,044		$	15,583		$	13,628		$	5,286		$	1,440		$	63

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R1 shares are not subject to sales charges.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    39

Financial Highlights selected per share data and ratios

	Class R2
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.07		$	28.69		$	25.63		$	38.80		$	41.60		$	39.46
Net investment income (loss)		0.11			0.27	(a)		0.26			0.40	(a)		0.53	(a)		0.17	(a)
Net realized and unrealized gain (loss) on investments		5.06			4.38			3.11			(13.18	)		2.18			3.68
Total from investment operations		5.17			4.65			3.37			(12.78	)		2.71			3.85
Less dividends and distributions:
From net investment income		(0.12	)		(0.27	)		(0.31	)		(0.39	)		(0.50	)		(0.28	)
From net realized gain on investments		—			—			—			—			(5.01	)		(1.43	)
Total dividends and distributions		(0.12	)		(0.27	)		(0.31	)		(0.39	)		(5.51	)		(1.71	)
Net asset value at end of period	$	38.12		$	33.07		$	28.69		$	25.63		$	38.80		$	41.60
Total investment return (b)		15.67	%(c)		16.29	%		13.46	%		(33.18	%)(c)		6.56	%		9.85	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.70	%††		0.88	%		1.07	%		1.42	% ††		1.18	%		1.25	%††
Net expenses		1.30	%††		1.33	%		1.22	%		1.15	% ††		1.15	%		1.15	%††
Expenses (before waiver/reimbursement)		1.30	%††		1.33	%		1.38	%		1.29	% ††		1.26	%		1.24	%††
Portfolio turnover rate		34	%		55	%		101	%		117	%		123	%		115	%
Net assets at end of period (in 000’s)	$	24,759		$	24,776		$	11,099		$	10,796		$	12,712		$	27

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.
(c)	Total investment return is not annualized.

40    MainStay ICAP Select Equity Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R3
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	33.02		$	28.66		$	25.60		$	38.76		$	41.58		$	39.46
Net investment income (loss)		0.07			0.18	(a)		0.21			0.28	(a)		0.31	(a)		0.14	(a)
Net realized and unrealized gain (loss) on investments		5.07			4.38			3.10			(13.10	)		2.29			3.67
Total from investment operations		5.14			4.56			3.31			(12.82	)		2.60			3.81
Less dividends and distributions:
From net investment income		(0.08	)		(0.20	)		(0.25	)		(0.34	)		(0.41	)		(0.26	)
From net realized gain on investments		—			—			—			—			(5.01	)		(1.43	)
Total dividends and distributions		(0.08	)		(0.20	)		(0.25	)		(0.34	)		(5.42	)		(1.69	)
Net asset value at end of period	$	38.08		$	33.02		$	28.66		$	25.60		$	38.76		$	41.58
Total investment return (b)		15.59	%(c)		15.97	%		13.16	%		(33.29	%)(c)		6.30	%		9.77	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.39	%††		0.58	%		0.78	%		1.02	% ††		0.70	%		1.00	%††
Net expenses		1.55	%††		1.58	%		1.47	%		1.40	% ††		1.40	%		1.40	%††
Expenses (before waiver/reimbursement)		1.55	%††		1.58	%		1.63	%		1.55	% ††		1.51	%		1.49	%††
Portfolio turnover rate		34	%		55	%		101	%		117	%		123	%		115	%
Net assets at end of period (in 000’s)	$	16,226		$	11,994		$	4,558		$	2,963		$	185		$	27

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.
(c)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    41

MainStay ICAP Global Fund
Investment and Performance Comparison¹ (Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(4/30/08)			Ratio2
Investor Class Shares	Maximum 5.5% Initial Sales Charge	With sales charges		8	.44%		12	.67%		–1	.33%		1	.72%
		Excluding sales charges		14	.75		19	.23		0	.55		1	.72
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		8	.55		12	.70		–1	.23		1	.53
		Excluding sales charges		14	.87		19	.26		0	.65		1	.53
Class C Shares	Maximum 1% CDSC	With sales charges		13	.35		17	.32		–0	.18		2	.47
	if Redeemed Within One Year of Purchase	Excluding sales charges		14	.35		18	.32		–0	.18		2	.47
Class I Shares	No Sales Charge			14	.96		19	.49		0	.86		1	.27

1.

The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.

The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

42    MainStay ICAP Global Fund

	Six			One			Since
Benchmark Performance	Months			Year			Inception
MSCI World Index3		14	.75%		18	.25%		–0	.57%
Average Lipper Global Multi-Cap Core Fund4		13	.86		18	.25		0	.61

3.

The Morgan Stanley Capital International (“MSCI”) World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. Total returns assume reinvestment of all dividends and capital gains. The MSCI World Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an Index.

4.

The average Lipper global multi-cap core fund is representative of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Global multi-cap core funds typically have an average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to the S&P/Citigroup BMI. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on total returns with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    43

Cost in Dollars of a $1,000 Investment in MainStay ICAP Global Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,147.50	$	6.39	$	1,018.80	$	6.01
Class A Shares	$	1,000.00	$	1,148.70	$	6.13	$	1,019.10	$	5.76
Class C Shares	$	1,000.00	$	1,143.50	$	10.36	$	1,015.10	$	9.74
Class I Shares	$	1,000.00	$	1,149.60	$	4.80	$	1,020.30	$	4.51

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.20% for Investor Class, 1.15% for Class A, 1.95% for Class C and 0.90% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

44    MainStay ICAP Global Fund

Sector Composition as of April 30, 2011 (Unaudited)

Financials	22.0	%
Consumer Discretionary	15.7
Health Care	15.5
Energy	9.6
Industrials	9.5
Consumer Staples	7.1
Information Technology	5.9
Telecommunication Services	5.7
Materials	3.6
Utilities	2.9
Short-Term Investment	2.5
Other Assets, Less Liabilities	0.0	‡
	100.0	%

See Portfolio of Investments beginning on page 48 for specific holdings within these categories.

‡  Less than one-tenth of a percent.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	Sanofi-Aventis
2.	PepsiCo., Inc.
3.	Novartis A.G.
4.	Vodafone Group PLC, Sponsored ADR
5.	Time Warner, Inc.
6.	Viacom, Inc. Class B
7.	Bridgestone Corp.
8.	Total S.A.
9.	Pfizer, Inc.
10.	Koninklijke KPN N.V.

mainstayinvestments.com    45

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Jerrold K. Senser, CFA, and Thomas R. Wenzel, CFA, of Institutional Capital LLC (ICAP), the Fund’s Subadvisor.

How did MainStay ICAP Global Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay ICAP Global Fund returned 14.75% for Investor Class shares, 14.87% for Class A shares and 14.35% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 14.96%. All share classes outperformed the 13.86% return of the average Lipper¹ global multi-cap core fund for the six months ended April 30, 2011. Class A and Class I shares outperformed, Investor Class shares matched and Class C shares underperformed the 14.75% return of the MSCI World Index² for the reporting period. The MSCI World Index is the Fund’s broad-based securities-market index. See page 42 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

During the reporting period, a number of factors affected the Fund’s performance relative to the MSCI World Index. Strong stock selection in the consumer discretionary and energy sectors added to the Fund’s relative performance, as did an underweight position in the consumer staples sector. Weak stock selection in the financials and telecommunication services sectors detracted from the Fund’s relative performance, as did an underweight position in the materials sector.

During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?

The sectors that made the strongest positive contributions to the Fund’s performance relative to the MSCI World Index were consumer discretionary, energy and health care, primarily because of strong stock selection. (Contributions take weightings and total returns into account.)

The sectors that were particularly weak relative to the MSCI World Index were financials, telecommunication services and industrials. Weak stock selection was the primary driver in each case. Although these sectors detracted from relative performance, each provided a positive total return during the reporting period.

During the reporting period, which individual stocks made the strongest positive contributions to the Fund’s absolute performance and which stocks detracted the most?

The stocks that made the strongest positive contributions to the Fund’s absolute performance were integrated oil companies Occidental Petroleum and Marathon Oil and media company Viacom. Each of the integrated oil companies benefited from the rise in oil prices during the reporting period. Marathon Oil also benefited when plans to spin off its refining business met with investor approval. Viacom benefited as better television ratings led to increased revenue from advertising and affiliate fees. All three stocks remained in the Fund at the end of the reporting period.

Major detractors from the Fund’s absolute performance included networking and communications provider Cisco Systems, Italian bank Intesa Sanpaolo and Dutch mail and express delivery company TNT. Cisco Systems underperformed as its sales and earnings outlook disappointed investors. Intesa Sanpaolo lagged because of continuing concerns about the resolution of the European sovereign debt crisis. TNT underperformed as its results fell short of expectations. We sold the Fund’s position in Cisco Systems by the end of the reporting period, but Intesa Sanpaolo and TNT remained in the Fund at the end of the reporting period, as we continued to find their prospects attractive.

Did the Fund make any significant purchases or sales during the reporting period?

During a reporting period characterized by ongoing, if somewhat restrained, economic recovery, the stock market was volatile but continued to rebound overall. In this environment, we looked for stocks with both attractive valuations and specific catalysts that may trigger appreciation over a 12- to 18-month time frame.

During the reporting period, we added media company Time Warner to the Fund. The investment reflected our belief that the company’s advertising growth and ability to increase cable-network affiliate fees could provide consistent revenue and earnings upside. In our view, increasing market penetration and strong programming and ratings should give Time Warner leverage on affiliate fees. We also added Dutch paint and coatings manufacturer AkzoNobel. We believed that the company could improve its margins through price increases to offset rising raw-materials costs. We added French food and beverage distributor Danone to the Fund during the reporting period. The company has a strong position in what we believe to be attractive categories, such as dairy products and infant nutrition. We felt that this positioning and the company’s exposure to emerging markets could lead to above-average organic revenue growth.

In addition to the sales already mentioned, we sold the Fund’s positions in Canadian gold producer Barrick Gold and wireless communications technology company Qualcomm because we believed other stocks had greater potential upside and were more attractive on a relative-valuation basis. We also sold the Fund’s position in Hong Kong industrial conglomerate Hutchison Whampoa when the company’s stock neared our target price.

1. See footnote on page 43 for more information about Lipper Inc.
 2. See footnote on page 43 for more information on the MSCI World Index.

46    MainStay ICAP Global Fund

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, the Fund increased its sector exposure relative to the MSCI World Index in health care and consumer discretionary. In both cases, the Fund increased the size of sector positions that were already overweight relative to the benchmark.

Over the same period, the Fund decreased its weightings relative to the MSCI World Index in the industrials and energy sectors. In each case, the Fund moved from an overweight to an underweight position.

How was the Fund positioned at the end of the reporting period?

As of April 30, 2011, the Fund was most significantly overweight relative to the MSCI World Index in the health care and consumer discretionary sectors and most significantly underweight relative to the Index in information technology and materials. This positioning reflected our view on the prospects for economic growth and the relative attractiveness of individual holdings in these sectors.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    47

Portfolio of Investments April 30, 2011 (unaudited)

	Shares		Value
Common Stocks 97.5%†
Consumer Discretionary 15.7%
X  Bridgestone Corp.		60,050	$	1,310,343
Genting Berhad		126,100		493,842
Genting Singapore PLC (a)		199,300		353,320
Johnson Controls, Inc.		14,150		580,150
Lowe’s Cos., Inc.		34,500		905,625
Nissan Motor Co., Ltd. (a)		100,050		954,678
Sands China, Ltd. (a)		221,900		622,877
Staples, Inc.		14,400		304,416
X  Time Warner, Inc.		36,100		1,366,746
TUI Travel PLC		124,300		496,638
X  Viacom, Inc. Class B		25,850		1,322,486
				8,711,121
Consumer Staples 7.1%
Archer-Daniels-Midland Co.		13,950		516,429
Coca-Cola Co. (The)		17,050		1,150,193
Danone S.A.		9,350		684,890
X  PepsiCo., Inc.		22,750		1,567,248
				3,918,760
Energy 9.6%
BG Group PLC		13,300		340,677
ConocoPhillips		8,200		647,226
Marathon Oil Corp.		16,550		894,362
Occidental Petroleum Corp.		6,800		777,172
Petroleo Brasileiro S.A., ADR (b)		23,450		875,388
Repsol YPF, S.A.		13,550		483,878
X  Total S.A.		20,200		1,293,109
				5,311,812
Financials 22.0%
Aflac, Inc.		14,750		828,802
Banco Bilbao Vizcaya Argentaria S.A.		42,610		546,548
BB&T Corp.		21,750		585,510
BlackRock, Inc.		3,300		646,602
Charles Schwab Corp. (The)		18,400		336,904
Cheung Kong Holdings, Ltd.		19,500		306,828
China Construction Bank Corp. Class H		682,419		645,843
Deutsche Boerse A.G.		5,650		469,473
Erste Group Bank A.G.		11,100		560,959
Goldman Sachs Group, Inc. (The)		5,450		823,005
Intesa Sanpaolo S.p.A.		268,200		890,622
JPMorgan Chase & Co.		25,050		1,143,031
MetLife, Inc.		19,850		928,781
Standard Chartered PLC		37,112		1,028,414
Tokio Marine Holdings, Inc.		22,900		634,927
UBS A.G. (a)		57,200		1,143,339
Wells Fargo & Co.		22,550		656,431
				12,176,019
Health Care 15.5%
Bayer A.G.		12,400		1,090,038
Covidien PLC		16,500		918,885
GlaxoSmithKline PLC		22,900		499,367
Merck & Co., Inc.		26,179		941,135
X  Novartis A.G.		25,550		1,516,754
X  Pfizer, Inc.		61,150		1,281,704
X  Sanofi-Aventis		29,700		2,349,074
				8,596,957
Industrials 9.5%
ABB, Ltd. (a)		32,350		893,085
China Communications Construction Co., Ltd. Class H		363,700		335,777
Honeywell International, Inc.		15,800		967,434
Mitsubishi Corp.		46,500		1,249,134
Siemens A.G.		4,650		676,475
TNT N.V.		34,970		861,106
Vallourec S.A.		2,350		293,040
				5,276,051
Information Technology 5.9%
Applied Materials, Inc.		34,150		535,813
HOYA Corp.		26,350		562,961
Microsoft Corp.		42,450		1,104,549
SAP A.G.		10,350		666,851
Texas Instruments, Inc.		11,700		415,701
				3,285,875
Materials 3.6%
Akzo Nobel N.V.		6,750		524,283
Anglo American PLC		3,400		177,219
Holcim, Ltd.		7,800		679,006
JFE Holdings, Inc.		11,800		320,912
Monsanto Co.		4,450		302,778
				2,004,198
Telecommunication Services 5.7%
X  Koninklijke KPN N.V.		80,550		1,278,371
Nippon Telegraph & Telephone Corp.		8,900		410,904
X  Vodafone Group PLC, Sponsored ADR (b)		51,500		1,499,680
				3,188,955

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

48    MainStay ICAP Global Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares			Value
Common Stocks (continued)
Utilities 2.9%
Energias de Portugal S.A.		81,500		$	333,170
GDF Suez S.A.		30,776			1,259,255
					1,592,425
Total Common Stocks (Cost $44,909,056)					54,062,173
	Principal
	Amount
Short-Term Investment 2.5%
Repurchase Agreement 2.5%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $1,376,866 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $1,405,000 and a Market Value of $1,404,992)	$	1,376,865			1,376,865
Total Short-Term Investment (Cost $1,376,865)					1,376,865
Total Investments (Cost $46,285,921) (c)		100.0	%		55,439,038
Other Assets, Less Liabilities		0.0	‡		14,327
Net Assets		100.0	%	$	55,453,365

‡	Less than one-tenth of a percent.
(a)	Non-income producing security.
(b)	ADR—American Depositary Receipt.
(c)	At April 30, 2011, cost is $47,020,619 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	9,338,736
Gross unrealized depreciation		(920,317	)
Net unrealized appreciation	$	8,418,419

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	54,062,173	$	—	$	—	$	54,062,173
Short-Term Investment
Repurchase Agreement		—		1,376,865		—		1,376,865
Total Investments in Securities	$	54,062,173	$	1,376,865	$	—	$	55,439,038

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

At October 31, 2010 and April 30, 2011 foreign equity securities were not fair valued, as a result there were no transfers between Level 1 and Level 2 for value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    49

Portfolio of Investments April 30, 2011 (unaudited) (continued)

The table below sets forth the diversification of the MainStay ICAP Global Fund investments by country.

Country Composition

	Value		Percent†
Austria	$	560,959		1.0	%
Brazil		875,388		1.6
Cayman Islands		622,877		1.1
China		981,620		1.8
France		5,879,368		10.6
Germany		2,902,837		5.2
Hong Kong		306,828		0.6
Ireland		918,885		1.7
Italy		890,622		1.6
Japan		5,443,859		9.8
Malaysia		493,842		0.9
Netherlands		2,663,760		4.8
Portugal		333,170		0.6
Spain		1,030,426		1.9
Switzerland		4,232,184		7.6
United Kingdom		4,395,315		7.9
United States		22,907,098		41.3
		55,439,038		100.0
Other Assets, Less Liabilities		14,327		0.0	‡
Net Assets	$	55,453,365		100.0	%

†	Percentages indicated are based on Fund net assets.
‡	Less than one-tenth of a percent.

50    MainStay ICAP Global Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $46,285,921)	$	55,439,038
Cash denominated in foreign currencies (identified cost $340)		352
Receivables:
Dividends		124,207
Fund shares sold		28,714
Other assets		38,154
Total assets		55,630,465
Liabilities
Payables:
Investment securities purchased		110,505
Professional fees		26,124
Manager (See Note 3)		25,150
Custodian		5,799
Shareholder communication		5,666
Transfer agent (See Note 3)		1,233
NYLIFE Distributors (See Note 3)		1,105
Fund shares redeemed		546
Trustees		137
Accrued expenses		835
Total liabilities		177,100
Net assets	$	55,453,365
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	5,681
Additional paid-in capital		55,720,561
		55,726,242
Undistributed net investment income		210,291
Accumulated net realized gain (loss) on investments and foreign currency transactions		(9,638,091	)
Net unrealized appreciation (depreciation) on investments		9,153,117
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies		1,806
Net assets	$	55,453,365
Investor Class
Net assets applicable to outstanding shares	$	549,780
Shares of beneficial interest outstanding		56,492
Net asset value per share outstanding	$	9.73
Maximum sales charge (5.50% of offering price)		0.57
Maximum offering price per share outstanding	$	10.30
Class A
Net assets applicable to outstanding shares	$	3,957,870
Shares of beneficial interest outstanding		406,040
Net asset value per share outstanding	$	9.75
Maximum sales charge (5.50% of offering price)		0.57
Maximum offering price per share outstanding	$	10.32
Class C
Net assets applicable to outstanding shares	$	280,042
Shares of beneficial interest outstanding		28,889
Net asset value and offering price per share outstanding	$	9.69
Class I
Net assets applicable to outstanding shares	$	50,665,673
Shares of beneficial interest outstanding		5,189,556
Net asset value and offering price per share outstanding	$	9.76

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    51

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	521,937
Expenses
Manager (See Note 3)		198,591
Registration		33,369
Professional fees		26,586
Custodian		14,985
Shareholder communication		7,193
Transfer agent (See Note 3)		6,113
Distribution/Service—Investor Class (See Note 3)		565
Distribution/Service—Class A (See Note 3)		3,763
Distribution/Service—Class C (See Note 3)		1,150
Trustees		718
Miscellaneous		8,901
Total expenses before waiver/reimbursement		301,934
Expense waiver/reimbursement from Manager (See Note 3)		(72,872	)
Net expenses		229,062
Net investment income (loss)		292,875
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions		2,863,397
Foreign currency transactions		(7,072	)
Net realized gain (loss) on investments and foreign currency transactions		2,856,325
Net change in unrealized appreciation (depreciation) on:
Investments		3,915,508
Translation of other assets and liabilities in foreign currencies		15
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		3,915,523
Net realized and unrealized gain (loss) on investments and foreign currency transactions		6,771,848
Net increase (decrease) in net assets resulting from operations	$	7,064,723

(a)  Dividends recorded net of foreign withholding taxes in the amount of $32,181.

52    MainStay ICAP Global Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	292,875		$	619,013
Net realized gain (loss) on investments and foreign currency transactions		2,856,325			2,790,459
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		3,915,523			1,537,833
Net increase (decrease) in net assets resulting from operations		7,064,723			4,947,305
Dividends to shareholders:
From net investment income:
Investor Class		(1,458	)		(3,744	)
Class A		(9,583	)		(20,971	)
Class C		(142	)		(766	)
Class I		(208,821	)		(540,529	)
Total dividends to shareholders		(220,004	)		(566,010	)
Capital share transactions:
Net proceeds from sale of shares		2,932,196			3,333,671
Net asset value of shares issued to shareholders in reinvestment of dividends		219,353			48,990
Cost of shares redeemed		(347,838	)		(790,752	)(a)
Increase (decrease) in net assets derived from capital share transactions		2,803,711			2,591,909
Net increase (decrease) in net assets		9,648,430			6,973,204
Net Assets
Beginning of period		45,804,935			38,831,731
End of period	$	55,453,365		$	45,804,935
Undistributed net investment income at end of period	$	210,291		$	137,420

(a)  Cost of shares redeemed net of redemption fees of $19 for the year ended October 31, 2010. (See Note 2(L))

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    53

Financial Highlights selected per share data and ratios

	Investor Class
										April 30,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.51		$	7.67		$	6.46		$	10.00
Net investment income (loss)		0.04			0.10			0.11			0.08	(a)
Net realized and unrealized gain (loss) on investments		1.21			0.83			1.24			(3.57	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		0.00	‡		(0.00	)‡		(0.00	)‡
Total from investment operations		1.25			0.93			1.35			(3.49	)
Less dividends:
From net investment income		(0.03	)		(0.09	)		(0.14	)		(0.05	)
Redemption fee (b)		—			—			—			0.00	‡(a)
Net asset value at end of period	$	9.73		$	8.51		$	7.67		$	6.46
Total investment return (c)		14.75	%(d)		12.32	%		21.46	%		(35.07	%)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.91	%††		1.26	%		1.57	%		1.84	% ††
Net expenses		1.20	%††		1.20	%		1.20	%		1.20	% ††
Expenses (before waiver/reimbursement)		1.60	%††		1.72	%		1.68	%		2.18	% ††
Portfolio turnover rate		37	%		79	%		106	%		75	%
Net assets at end of period (in 000’s)	$	550		$	368		$	209		$	56

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(d)	Total investment return is not annualized.

54    MainStay ICAP Global Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
										April 30,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.52		$	7.68		$	6.47		$	10.00
Net investment income (loss)		0.05			0.12			0.10			0.09	(a)
Net realized and unrealized gain (loss) on investments		1.21			0.81			1.26			(3.57	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		0.00	‡		(0.00	)‡		(0.00	)‡
Total from investment operations		1.26			0.93			1.36			(3.48	)
Less dividends:
From net investment income		(0.03	)		(0.09	)		(0.15	)		(0.05	)
Redemption fee (b)		—			0.00	‡(a)		0.00	‡(a)		0.00	‡(a)
Net asset value at end of period	$	9.75		$	8.52		$	7.68		$	6.47
Total investment return (c)		14.87	%(d)		12.36	%		21.49	%		(34.97	%)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.99	%††		1.30	%		1.63	%		2.02	% ††
Net expenses		1.15	%††		1.15	%		1.15	%		1.15	% ††
Expenses (before waiver/reimbursement)		1.44	%††		1.53	%		1.46	%		1.99	% ††
Portfolio turnover rate		37	%		79	%		106	%		75	%
Net assets at end of period (in 000’s)	$	3,958		$	2,398		$	801		$	374

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(d)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    55

Financial Highlights selected per share data and ratios

	Class C
										April 30,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.48		$	7.65		$	6.45		$	10.00
Net investment income (loss)		0.02			0.04			0.06			0.05	(a)
Net realized and unrealized gain (loss) on investments		1.20			0.83			1.24			(3.57	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		0.00	‡		(0.00	)‡		(0.00	)‡
Total from investment operations		1.22			0.87			1.30			(3.52	)
Less dividends:
From net investment income		(0.01	)		(0.04	)		(0.10	)		(0.03	)
Redemption fee (b)		—			—			—			0.00	‡(a)
Net asset value at end of period	$	9.69		$	8.48		$	7.65		$	6.45
Total investment return (c)		14.35	%(d)		11.45	%		20.56	%		(35.26	%)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.16	%††		0.49	%		0.71	%		1.15	% ††
Net expenses		1.95	%††		1.95	%		1.95	%		1.95	% ††
Expenses (before waiver/reimbursement)		2.35	%††		2.47	%		2.42	%		2.93	% ††
Portfolio turnover rate		37	%		79	%		106	%		75	%
Net assets at end of period (in 000’s)	$	280		$	172		$	142		$	20

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(d)	Total investment return is not annualized.

56    MainStay ICAP Global Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
										April 30,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.53		$	7.69		$	6.47		$	10.00
Net investment income (loss)		0.05			0.12			0.13			0.10	(a)
Net realized and unrealized gain (loss) on investments		1.22			0.83			1.25			(3.58	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		0.00	‡		(0.00	)‡		(0.00	)‡
Total from investment operations		1.27			0.95			1.38			(3.48	)
Less dividends:
From net investment income		(0.04	)		(0.11	)		(0.16	)		(0.05	)
Redemption fee (b)		—			0.00	‡(a)		—			0.00	‡(a)
Net asset value at end of period	$	9.76		$	8.53		$	7.69		$	6.47
Total investment return (c)		14.96	%(d)		12.56	%		21.74	%		(34.86	%)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.20	%††		1.50	%		2.02	%		2.25	% ††
Net expenses		0.90	%††		0.90	%		0.90	%		0.90	% ††
Expenses (before reimbursement/waiver)		1.19	%††		1.27	%		1.20	%		1.74	% ††
Portfolio turnover rate		37	%		79	%		106	%		75	%
Net assets at end of period (in 000’s)	$	50,666		$	42,867		$	37,680		$	31,662

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(d)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    57

MainStay ICAP International Fund

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

															Gross
															Expense
Class	Sales Charge		Six Months			One Year			Five Years			Ten Years			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		6	.85%		15	.37%		0	.89%		7	.29%		1	.55%
		Excluding sales charges		13	.07		22	.09		2	.04		7	.90		1	.55
Class A Shares4	Maximum 5.5% Initial Sales Charge	With sales charges		6	.94		15	.68		1	.03		7	.36		1	.36
		Excluding sales charges		13	.16		22	.42		2	.18		7	.97		1	.36
Class C Shares4	Maximum 1% CDSC	With sales charges		11	.64		20	.20		1	.27		7	.09		2	.29
	if Redeemed Within One Year of Purchase	Excluding sales charges		12	.64		21	.20		1	.27		7	.09		2	.29
Class I Shares	No Sales Charge			13	.35		22	.81		2	.48		8	.27		1	.11
Class R1 Shares4	No Sales Charge			13	.31		22	.74		2	.36		8	.15		1	.21
Class R2 Shares4	No Sales Charge			13	.13		22	.20		2	.09		7	.87		1	.46
Class R3 Shares4	No Sales Charge			12	.96		21	.92		1	.82		7	.59		1	.71

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements. Effective August 31, 2006 ICAP International Fund was renamed MainStay ICAP International Fund. At that time, the Fund’s existing no-load shares were redesignated as Class I shares.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on April 29, 2008, includes the historical performance of Class A shares through April 28, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance for Investor Class shares might have been lower.
4.	Performance figures for Class A, C, R1, R2 and R3 shares, first offered on September 1, 2006, includes the historical performance of Class I shares through August 31, 2006, adjusted for differences in certain expenses and fees. Unadjusted, the performance for these shares classes might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

58    MainStay ICAP International Fund

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
MSCI EAFE® Index5		12	.71%		19	.18%		1	.54%		5	.29%
MSCI Europe Index6		15	.16		25	.01		2	.60		5	.77
Average Lipper International Large-Cap Core Fund7		12	.45		19	.68		1	.11		4	.50

5.	The Morgan Stanley Capital International (“MSCI”) EAFE® Index consists of international stocks representing the developed world outside North America. Results assume reinvestment of all dividends and capital gains. The MSCI EAFE® Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.
6.	The MSCI Europe Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.
7.	The average Lipper international large-cap core fund is representative of funds that, by portfolio practice, invest at least 75% of their equity assets in companies strictly outside of the U.S. with market capitalizations (on a three-year weighted basis) above Lipper’s international large-cap floor. International large-cap core funds typically have an average price-to cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to their large-cap-specific subset of the S&P/Citigroup World ex-U.S. BMI. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on total returns with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    59

Cost in Dollars of a $1,000 Investment in MainStay ICAP International Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,130.70	$	7.77	$	1,017.50	$	7.35
Class A Shares	$	1,000.00	$	1,131.60	$	6.87	$	1,018.30	$	6.51
Class C Shares	$	1,000.00	$	1,126.40	$	11.65	$	1,013.80	$	11.03
Class I Shares	$	1,000.00	$	1,133.50	$	5.03	$	1,020.10	$	4.76
Class R1 Shares	$	1,000.00	$	1,133.10	$	5.55	$	1,019.60	$	5.26
Class R2 Shares	$	1,000.00	$	1,131.30	$	7.40	$	1,017.90	$	7.00
Class R3 Shares	$	1,000.00	$	1,129.60	$	8.71	$	1,016.60	$	8.25

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.47% for Investor Class, 1.30% for Class A, 2.21% for Class C, 0.95% for Class I, 1.05% for Class R1, 1.40% for Class R2 and 1.65% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

60    MainStay ICAP International Fund

Sector Composition as of April 30, 2011 (Unaudited)

Financials	21.4	%
Industrials	15.2
Health Care	14.0
Consumer Discretionary	10.7
Telecommunication Services	9.4
Energy	9.2
Materials	5.9
Utilities	5.2
Information Technology	4.0
Consumer Staples	2.6
Short-Term Investment	2.0
Other Assets, Less Liabilities	0.4
	100.0	%

See Portfolio of Investments beginning on page 64 for specific holdings within these categories.

Top Ten Holdings as of April 30, 2011 (excluding short-term investment)

1.	Sanofi-Aventis
2.	Vodafone Group PLC, Sponsored ADR
3.	Bridgestone Corp.
4.	Koninklijke KPN N.V.
5.	Novartis A.G.
6.	Total S.A.
7.	GDF Suez S.A.
8.	Bayer A.G.
9.	Mitsubishi Corp.
10.	ABB, Ltd.

mainstayinvestments.com    61

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Jerrold K. Senser, CFA, and Thomas R. Wenzel, CFA, of Institutional Capital LLC (ICAP), the Fund’s Subadvisor.

How did MainStay ICAP International Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay ICAP International Fund returned 13.07% for Investor Class shares, 13.16% for Class A shares and 12.64% for Class C shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 13.35%, Class R1 shares returned 13.31%, Class R2 shares returned 13.13% and Class R3 shares returned 12.96%. All share classes outperformed the 12.45% return of the average Lipper¹ international large-cap core fund for the six months ended April 30, 2011. Investor Class, Class A, Class I, Class R1, Class R2 and Class R3 shares outperformed—and Class C shares underperformed—the 12.71% return of the MSCI EAFE^® Index² for the reporting period. The MSCI EAFE^® Index is the Fund’s broad-based securities-market index. See page 58 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

During the reporting period, a number of factors affected the Fund’s performance relative to the MSCI EAFE^® Index. Strong stock selection in the consumer discretionary and materials sectors added to relative performance, as did an underweight position in the consumer staples sector. Weak stock selection in the financials and telecommunication services sectors detracted from the Fund’s performance relative to the benchmark, as did an underweight position in the materials sector.

During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?

The sectors that made the strongest positive contributions to the Fund’s performance relative to the MSCI EAFE^® Index were consumer discretionary, industrials and consumer staples. (Contributions take weightings and total returns into account.) Strong stock selection was the primary driver in the consumer discretionary and industrials sectors, while having an underweight position in the lagging consumer staples sector added to the Fund’s relative performance.

The sectors that were particularly weak relative to the MSCI EAFE^® Index were financials, telecommunication services and information technology. Weak stock selection was the primary driver in each case. Although these sectors detracted from relative performance, each provided a positive total return during the reporting period.

During the reporting period, which individual stocks made the strongest positive contributions to the Fund’s performance and which stocks detracted the most?

The stocks that made the strongest positive contributions to the Fund’s absolute performance were Swiss industrial company ABB, Swiss cement producer Holcim and Japanese tire manufacturer Bridgestone. ABB outperformed as its leading power and automation businesses improved sales results. Holcim benefited as margins expanded because of higher volumes, better pricing and cost-cutting efforts. Bridgestone advanced by passing higher prices through to customers to offset rising input costs. All three stocks remained in the Fund at the end of the reporting period.

Detractors from the Fund’s absolute performance included Italian bank Intesa Sanpaolo, Dutch mail and express delivery business TNT and Japanese optical glass and electronics manufacturer Hoya. Intesa Sanpaolo lagged on continuing concerns about the resolution of the European sovereign debt crisis. TNT underperformed as its results fell short of expectations. Hoya’s stock weakened as the earthquake and tsunami in Japan caused uncertainty about the duration and severity of supply-chain disruptions. All three stocks remained in the Fund at the end of the reporting period, as we continued to find their prospects attractive.

Did the Fund make any significant purchases or sales during the reporting period?

During a reporting period characterized by ongoing, if somewhat restrained, economic recovery, the stock market was volatile but continued to rebound overall. In this environment, we looked for stocks with both attractive valuations and specific catalysts that may trigger appreciation over a 12- to 18-month time frame.

During the reporting period, we added Dutch paint and coatings manufacturer AkzoNobel. We believed that the company could improve its margins through price increases to offset rising raw-materials costs. We also added French food and beverage distributor Danone to the Fund during the reporting period. The company has a strong position in what we believe to be attractive categories, such as dairy products and infant nutrition. We believed that this positioning and the company’s exposure to emerging markets could lead to above-average organic revenue growth.

We sold the Fund’s positions in Canadian gold producer Bar-rick Gold because we believed that other stocks had greater potential upside and were more attractive on a relative-valuation basis. We also sold the Fund’s position in Hong Kong industrial conglomerate Hutchison Whampoa when the company’s stock neared our target price.

1. See footnote on page 59 for more information about Lipper Inc.
2. See footnote on page 59 for more information on the MSCI EAFE^® Index.

62    MainStay ICAP International Fund

How did the Fund’s sector weightings change during the reporting period?

During the reporting period, the Fund increased its sector exposure relative to the MSCI EAFE^® Index in the health care and consumer staples sectors. In health care, the Fund increased the size of its already overweight position. In consumer discretionary, the Fund remained underweight relative to the benchmark, but less so than at the beginning of the reporting period.

Over the same period, the Fund decreased its weightings relative to the MSCI EAFE^® Index in the industrials and mater- ials sectors. In industrials, the Fund decreased the size of its overweight position. In materials, the Fund decreased its allocation, further underweighting the sector relative to the MSCI EAFE^® Index.

How was the Fund positioned at the end of the reporting period?

As of April 30, 2011, the Fund was most significantly overweight relative to the MSCI EAFE^® Index in the health care and telecommunication services sectors and most significantly under- weight relative to the Index in consumer staples and materials. This positioning reflected our view on the prospects for economic growth and the relative attractiveness of individual holdings in these sectors.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    63

Portfolio of Investments April 30, 2011 (unaudited)

	Shares			Value
Common Stocks 97.6%†
Consumer Discretionary 10.7%
X  Bridgestone Corp.		1,937,300		$	42,273,575
Genting Berhad		2,553,050			9,998,440
Genting Singapore PLC (a)		4,901,100			8,688,687
Nissan Motor Co., Ltd. (a)		2,368,050			22,595,953
Sands China, Ltd. (a)		6,430,800			18,051,368
TUI Travel PLC		3,806,950			15,210,580
					116,818,603
Consumer Staples 2.6%
Danone S.A.		392,650			28,761,722
Energy 9.2%
BG Group PLC		501,600			12,848,391
Petroleo Brasileiro S.A., ADR (b)		616,850			23,027,010
Repsol YPF, S.A.		673,500			24,051,042
X  Total S.A.		633,500			40,553,698
					100,480,141
Financials 21.4%
Banco Bilbao Vizcaya Argentaria S.A.		1,199,745			15,388,842
Cheung Kong Holdings, Ltd.		766,400			12,059,112
China Construction Bank Corp. Class H		18,000,477			17,035,700
Deutsche Boerse A.G.		216,100			17,956,294
Erste Group Bank A.G.		347,300			17,551,446
ING Groep N.V. (a)		1,207,150			15,912,937
Intesa Sanpaolo S.p.A.		8,129,050			26,994,450
Muenchener Rueckversicherungs-Gesellschaft A.G. Registered		127,550			21,055,212
Standard Chartered PLC		1,162,331			32,209,474
Tokio Marine Holdings, Inc.		893,900			24,784,332
UBS A.G. (a)		1,704,100			34,062,299
					235,010,098
Health Care 14.0%
X  Bayer A.G.		408,700			35,927,289
GlaxoSmithKline PLC		981,950			21,412,811
X  Novartis A.G.		691,900			41,074,063
X  Sanofi-Aventis		693,500			54,851,285
					153,265,448
Industrials 15.2%
X  ABB, Ltd. (a)		1,247,300			34,434,132
China Communications Construction Co., Ltd. Class H		9,894,650			9,134,993
KOMATSU, Ltd.		409,050			14,321,667
X  Mitsubishi Corp.		1,288,000			34,599,667
Siemens A.G.		167,000			24,294,921
Sime Darby Berhad		3,329,650			10,139,582
TNT N.V.		1,159,237			28,545,192
Vallourec S.A.		91,450			11,403,635
					166,873,789
Information Technology 4.0%
HOYA Corp.		1,021,650			21,827,275
SAP A.G.		349,300			22,505,410
					44,332,685
Materials 5.9%
Akzo Nobel N.V.		241,050			18,722,718
Anglo American PLC		141,000			7,349,380
Holcim, Ltd.		320,500			27,900,174
JFE Holdings, Inc.		387,900			10,549,312
					64,521,584
Telecommunication Services 9.4%
X  Koninklijke KPN N.V.		2,641,450			41,921,195
Nippon Telegraph & Telephone Corp.		352,700			16,283,813
X  Vodafone Group PLC, Sponsored ADR (b)		1,530,200			44,559,424
					102,764,432
Utilities 5.2%
Energias de Portugal S.A.		3,988,500			16,304,886
X  GDF Suez S.A.		980,150			40,104,575
					56,409,461
Total Common Stocks (Cost $905,136,987)					1,069,237,963
	Principal
	Amount
Short-Term Investment 2.0%
Repurchase Agreement 2.0%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $22,475,148 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $22,925,000 and a Market Value of $22,924,876)	$	22,475,129			22,475,129
Total Short-Term Investment (Cost $22,475,129)					22,475,129
Total Investments (Cost $927,612,116) (c)		99.6	%		1,091,713,092
Other Assets, Less Liabilities		0.4			4,021,049
Net Assets		100.0	%	$	1,095,734,141

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

64    MainStay ICAP International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

(a)	Non-income producing security.
(b)	ADR—American Depositary Receipt.
(c)	At April 30, 2011, cost is $942,988,477 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	169,934,827
Gross unrealized depreciation		(21,210,212	)
Net unrealized appreciation	$	148,724,615

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Common Stocks	$	1,069,237,963	$	—	$	—	$	1,069,237,963
Short-Term Investment
Repurchase Agreement		—		22,475,129		—		22,475,129
Total Investments in Securities	$	1,069,237,963	$	22,475,129	$	—	$	1,091,713,092

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

At October 31, 2010 and April 30, 2011 foreign equity securities were not fair valued, as a result there were no transfers between Level 1 and Level 2 for value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    65

Portfolio of Investments April 30, 2011 (unaudited) (continued)

The table below sets forth the diversification of the MainStay ICAP International Fund investments by country.

Country Composition

	Value		Percent †
Austria	$	17,551,446		1.6	%
Brazil		23,027,010		2.1
Cayman Islands		18,051,368		1.6
China		26,170,693		2.4
France		175,674,915		16.0
Germany		121,739,126		11.1
Hong Kong		12,059,112		1.1
Italy		26,994,450		2.5
Japan		187,235,594		17.1
Malaysia		20,138,022		1.8
Netherlands		105,102,042		9.6
Portugal		16,304,886		1.5
Spain		39,439,884		3.6
Switzerland		137,470,668		12.5
United Kingdom		142,278,747		13.0
United States		22,475,129		2.1
		1,091,713,092		99.6
Other Assets, Less Liabilities		4,021,049		0.4
Net Assets	$	1,095,734,141		100.0	%

† Percentages indicated are based on Fund net assets.

66    MainStay ICAP International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $927,612,116)	$	1,091,713,092
Cash denominated in foreign currencies (identified cost $19,646)		20,033
Receivables:
Dividends and interest		3,435,176
Fund shares sold		2,947,088
Other assets		68,064
Total assets		1,098,183,453
Liabilities
Payables:
Fund shares redeemed		1,351,137
Manager (See Note 3)		657,213
Transfer agent (See Note 3)		232,600
NYLIFE Distributors (See Note 3)		77,279
Professional fees		52,677
Custodian		45,193
Shareholder communication		30,838
Trustees		2,375
Total liabilities		2,449,312
Net assets	$	1,095,734,141
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	33,189
Additional paid-in capital		1,116,104,291
		1,116,137,480
Undistributed net investment income		5,313,139
Accumulated net realized gain (loss) on investments and foreign currency transactions		(189,887,724	)
Net unrealized appreciation (depreciation) on investments		164,100,976
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies		70,270
Net assets	$	1,095,734,141
Investor Class
Net assets applicable to outstanding shares	$	11,393,536
Shares of beneficial interest outstanding		345,902
Net asset value per share outstanding	$	32.94
Maximum sales charge (5.50% of offering price)		1.92
Maximum offering price per share outstanding	$	34.86
Class A
Net assets applicable to outstanding shares	$	233,033,351
Shares of beneficial interest outstanding		7,070,479
Net asset value per share outstanding	$	32.96
Maximum sales charge (5.50% of offering price)		1.92
Maximum offering price per share outstanding	$	34.88
Class C
Net assets applicable to outstanding shares	$	19,533,086
Shares of beneficial interest outstanding		600,636
Net asset value and offering price per share outstanding	$	32.52
Class I
Net assets applicable to outstanding shares	$	774,776,859
Shares of beneficial interest outstanding		23,439,155
Net asset value and offering price per share outstanding	$	33.05
Class R1
Net assets applicable to outstanding shares	$	497,042
Shares of beneficial interest outstanding		15,059
Net asset value and offering price per share outstanding	$	33.01
Class R2
Net assets applicable to outstanding shares	$	44,373,797
Shares of beneficial interest outstanding		1,347,561
Net asset value and offering price per share outstanding	$	32.93
Class R3
Net assets applicable to outstanding shares	$	12,126,470
Shares of beneficial interest outstanding		370,090
Net asset value and offering price per share outstanding	$	32.77

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    67

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	11,056,586
Interest		1,727
Total income		11,058,313
Expenses
Manager (See Note 3)		3,788,977
Transfer agent (See Note 3)		784,707
Distribution/Service—Investor Class (See Note 3)		13,114
Distribution/Service—Class A (See Note 3)		260,054
Distribution/Service—Class C (See Note 3)		83,921
Distribution/Service—Class R2 (See Note 3)		49,525
Distribution/Service—Class R3 (See Note 3)		27,528
Custodian		144,911
Shareholder communication		81,783
Professional fees		75,004
Registration		58,751
Shareholder service (See Note 3)		25,675
Trustees		13,358
Miscellaneous		25,336
Total expenses before waiver/reimbursement		5,432,644
Expense waiver/reimbursement from Manager (See Note 3)		(313,955	)
Net expenses		5,118,689
Net investment income (loss)		5,939,624
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Security transactions		51,804,983
Foreign currency transactions		(320,865	)
Net realized gain (loss) on investments and foreign currency transactions		51,484,118
Net change in unrealized appreciation (depreciation) on:
Investments		65,881,200
Translation of other assets and liabilities in foreign currencies		(13,817	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		65,867,383
Net realized and unrealized gain (loss) on investments and foreign currency transactions		117,351,501
Net increase (decrease) in net assets resulting from operations	$	123,291,125

(a)  Dividends recorded net of foreign withholding taxes in the amount of $1,280,472.

68    MainStay ICAP International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	5,939,624		$	11,878,834
Net realized gain (loss) on investments and foreign currency transactions		51,484,118			15,525,711
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		65,867,383			46,277,308
Net increase (decrease) in net assets resulting from operations		123,291,125			73,681,853
Dividends to shareholders:
From net investment income:
Investor Class		(6,081	)		(101,486	)
Class A		(373,620	)		(2,132,770	)
Class C		(22	)		(99,591	)
Class I		(2,115,388	)		(7,860,592	)
Class R1		(3,042	)		(11,721	)
Class R2		(41,924	)		(372,208	)
Class R3		—			(85,219	)
Total dividends to shareholders		(2,540,077	)		(10,663,587	)
Capital share transactions:
Net proceeds from sale of shares		222,996,499			296,689,793
Net asset value of shares issued to shareholders in reinvestment of dividends		2,337,447			9,730,325
Cost of shares redeemed		(107,727,277	)		(202,136,391	)(a)
Increase (decrease) in net assets derived from capital share transactions		117,606,669			104,283,727
Net increase (decrease) in net assets		238,357,717			167,301,993
Net Assets
Beginning of period		857,376,424			690,074,431
End of period	$	1,095,734,141		$	857,376,424
Undistributed net investment income at end of period	$	5,313,139		$	1,913,592

(a)  Cost of shares redeemed net of redemption fees of $15,391 for the year ended October 31, 2010. (See Note 2(L))

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    69

Financial Highlights selected per share data and ratios

	Investor Class
										April 29,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	29.15		$	27.05		$	22.19		$	36.83
Net investment income (loss) (a)		0.12			0.29			0.49			0.47
Net realized and unrealized gain (loss) on investments		3.70			2.09			5.13			(14.56	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		0.00	‡		(0.01	)		(0.01	)
Total from investment operations		3.81			2.38			5.61			(14.10	)
Less dividends:
From net investment income		(0.02	)		(0.28	)		(0.75	)		(0.54	)
Redemption fee (b)		—			0.00	‡(a)		0.00	‡(a)		0.00	‡(a)
Net asset value at end of period	$	32.94		$	29.15		$	27.05		$	22.19
Total investment return (c)		13.07	%(d)		9.02	%		25.99	%		(38.80	%)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.82	%††		1.07	%		2.14	%		2.96	% ††
Net expenses		1.47	%††		1.55	%		1.38	%		1.24	% ††
Expenses (before waiver/reimbursement)		1.47	%††		1.55	%		1.62	%		1.49	% ��†
Portfolio turnover rate		27	%		80	%		96	%		79	%
Net assets at end of period (in 000’s)	$	11,394		$	10,343		$	10,373		$	8,674

*	Unaudited.
**	Commencement of operations.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(d)	Total investment return is not annualized.

70    MainStay ICAP International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	29.18		$	27.05		$	22.19		$	38.22		$	39.09		$	37.00
Net investment income (loss) (a)		0.15			0.37			0.50			0.77			0.57			0.00	‡
Net realized and unrealized gain (loss) on investments		3.70			2.07			5.19			(16.22	)		3.67			3.58
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		0.00	‡		(0.01	)		(0.01	)		—			—
Total from investment operations		3.84			2.44			5.68			(15.46	)		4.24			3.58
Less dividends and distributions:
From net investment income		(0.06	)		(0.31	)		(0.82	)		(0.57	)		(0.69	)		(0.79	)
From net realized gain on investments		—			—			—			—			(4.42	)		(0.70	)
Total dividends and distributions		(0.06	)		(0.31	)		(0.82	)		(0.57	)		(5.11	)		(1.49	)
Redemption fee (b)		—			0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)
Net asset value at end of period	$	32.96		$	29.18		$	27.05		$	22.19		$	38.22		$	39.09
Total investment return (c)		13.16	%(d)		9.30	%		26.36	%		(40.97	%)(d)		11.20	%		9.74	%(d)(e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.01	%††		1.36	%		2.13	%		2.78	% ††		1.36	%		0.04	%††
Net expenses		1.30	%††		1.30	%		1.14	%		1.10	% ††		1.15	%		1.15	%††
Expenses (before waiver/reimbursement)		1.30	%††		1.36	%		1.37	%		1.31	% ††		1.33	%		1.47	%††(e)
Portfolio turnover rate		27	%		80	%		96	%		79	%		109	%		155	%
Net assets at end of period (in 000’s)	$	233,033		$	193,508		$	138,355		$	73,122		$	121,098		$	20,516

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(d)	Total investment return is not annualized.
(e)	Includes nonrecurring reimbursements from affiliates for IRS interest charge. If these nonrecurring reimbursements had not been made, the total investment return would have been 9.71%, 9.41%, 24.23%, 9.76%, 9.69% and 9.58% for Class A, Class C, Class I, Class R1, Class R2 and Class R3 shares, respectively, for the period ending December 31, 2006.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    71

Financial Highlights selected per share data and ratios

	Class C
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	28.87		$	26.87		$	22.02		$	38.04		$	39.03		$	37.00
Net investment income (loss) (a)		0.02			0.08			0.29			0.54			0.25			(0.09	)
Net realized and unrealized gain (loss) on investments		3.64			2.09			5.13			(16.12	)		3.66			3.56
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		0.00	‡		(0.01	)		(0.01	)		—			—
Total from investment operations		3.65			2.17			5.41			(15.59	)		3.91			3.47
Less dividends and distributions:
From net investment income		—			(0.17	)		(0.56	)		(0.43	)		(0.48	)		(0.74	)
From net realized gain on investments		—			—			—			—			(4.42	)		(0.70	)
Total dividends and distributions		—			(0.17	)		(0.56	)		(0.43	)		(4.90	)		(1.44	)
Redemption fee (b)		—			0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)
Net asset value at end of period	$	32.52		$	28.87		$	26.87		$	22.02		$	38.04		$	39.03
Total investment return (c)		12.64	%(d)		8.20	%		25.06	%		(41.39	%)(d)		10.35	%		9.44	% (d)(e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.13	%††		0.31	%		1.30	%		1.98	% ††		0.60	%		(0.69	%)††
Net expenses		2.21	%††		2.29	%		2.13	%		1.96	% ††		1.90	%		1.90	% ††
Expenses (before waiver/reimbursement)		2.21	%††		2.29	%		2.37	%		2.17	% ††		2.08	%		2.22	% ††(e)
Portfolio turnover rate		27	%		80	%		96	%		79	%		109	%		155	%
Net assets at end of period (in 000’s)	$	19,533		$	15,538		$	19,244		$	19,586		$	32,652		$	7,266

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(d)	Total investment return is not annualized.
(e)	Includes nonrecurring reimbursements from affiliates for IRS interest charge. If these nonrecurring reimbursements had not been made, the total investment return would have been 9.71%, 9.41%, 24.23%, 9.76%, 9.69% and 9.58% for Class A, Class C, Class I, Class R1, Class R2 and Class R3 shares, respectively, for the period ending December 31, 2006.

72    MainStay ICAP International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
										January 1,
	Six months									2008***
	ended									through
	April 30,			Year ended October 31,						October 31,			Year ended December 31,
	2011*			2010			2009			2008			2007			2006			2005
Net asset value at beginning of period	$	29.26		$	27.12		$	22.25		$	38.26		$	39.10		$	32.89		$	30.18
Net investment income (loss)		0.21	(a)		0.46	(a)		0.60	(a)		0.87	(a)		0.78	(a)		0.77	(a)		0.55
Net realized and unrealized gain (loss) on investments		3.69			2.08			5.15			(16.26	)		3.59			7.16			5.20	(b)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		0.00	‡		(0.01	)		(0.01	)		—			—			—
Total from investment operations		3.89			2.54			5.74			(15.40	)		4.37			7.93			5.75
Less dividends and distributions:
From net investment income		(0.10	)		(0.40	)		(0.87	)		(0.61	)		(0.79	)		(1.03	)		(0.54	)
From net realized gain on investments		—			—			—			—			(4.42	)		(0.70	)		(2.50	)
Total dividends and distributions		(0.10	)		(0.40	)		(0.87	)		(0.61	)		(5.21	)		(1.73	)		(3.04	)
Redemption fee (c)		—			0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.01	(a)		0.00	‡(b)
Net asset value at end of period	$	33.05		$	29.26		$	27.12		$	22.25		$	38.26		$	39.10		$	32.89
Total investment return (d)		13.35	%(e)		9.62	%		26.71	%		(40.81	%)(e)		11.52	%		24.30	%(f)		19.15	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.40	%††		1.70	%		2.59	%		3.12	% ††		1.86	%		2.09	%		2.05	%
Net expenses		0.95	%††		0.95	%		0.85	%		0.80	% ††		0.80	%		0.80	%		0.80	%
Expenses (before reimbursement/waiver)		1.05	%††		1.11	%		1.13	%		1.01	% ††		0.98	%		1.01	%(f)		1.12	%
Portfolio turnover rate		27	%		80	%		96	%		79	%		109	%		155	%		139	%
Net assets at end of period (in 000’s)	$	774,777		$	587,673		$	487,411		$	389,517		$	753,984		$	568,662		$	179,787

*	Unaudited.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fees have been reclassified from net realized and unrealized gain on investments to a separate line, “redemption fee”, to conform to the current year presentation.
(c)	The redemption fee was discontinued as of April 1, 2010.
(d)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(e)	Total investment return is not annualized.
(f)	Includes nonrecurring reimbursements from affiliates for IRS interest charge. If these nonrecurring reimbursements had not been made, the total investment return would have been 9.71%, 9.41%, 24.23%, 9.76%, 9.69% and 9.58% for Class A, Class C, Class I, Class R1, Class R2 and Class R3 shares, respectively, for the period ending December 31, 2006.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    73

Financial Highlights selected per share data and ratios

	Class R1
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	29.22		$	27.07		$	22.22		$	38.23		$	39.08		$	37.00
Net investment income (loss) (a)		0.14			0.40			0.59			0.82			0.47			0.13
Net realized and unrealized gain (loss) on investments		3.75			2.10			5.12			(16.22	)		3.86			3.46
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		0.00	‡		(0.01	)		(0.01	)		—			—
Total from investment operations		3.88			2.50			5.70			(15.41	)		4.33			3.59
Less dividends and distributions:
From net investment income		(0.09	)		(0.35	)		(0.85	)		(0.60	)		(0.76	)		(0.81	)
From net realized gain on investments		—			—			—			—			(4.42	)		(0.70	)
Total dividends and distributions		(0.09	)		(0.35	)		(0.85	)		(0.60	)		(5.18	)		(1.51	)
Redemption fee (b)		—			0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)
Net asset value at end of period	$	33.01		$	29.22		$	27.07		$	22.22		$	38.23		$	39.08
Total investment return (c)		13.31	%(d)		9.48	%		26.56	%		(40.89	%) (d)		11.41	%		9.78	%(d)(e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.97	%††		1.47	%		2.54	%		2.95	% ††		1.12	%		1.04	%††
Net expenses		1.05	%††		1.10	%		0.99	%		0.90	% ††		0.90	%		0.90	%††
Expenses (before waiver/reimbursement)		1.15	%††		1.21	%		1.22	%		1.11	% ††		1.08	%		1.22	%††(e)
Portfolio turnover rate		27	%		80	%		96	%		79	%		109	%		155	%
Net assets at end of period (in 000’s)	$	497		$	949		$	675		$	170		$	418		$	27

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R1 shares are not subject to sales charges.
(d)	Total investment return is not annualized.
(e)	Includes nonrecurring reimbursements from affiliates for IRS interest charge. If these nonrecurring reimbursements had not been made, the total investment return would have been 9.71%, 9.41%, 24.23%, 9.76%, 9.69% and 9.58% for Class A, Class C, Class I, Class R1, Class R2 and Class R3 shares, respectively, for the period ending December 31, 2006.

74    MainStay ICAP International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R2
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	29.14		$	27.05		$	22.18		$	38.20		$	39.08		$	37.00
Net investment income (loss) (a)		0.14			0.32			0.44			0.74			0.35			(0.03	)
Net realized and unrealized gain (loss) on investments		3.69			2.07			5.23			(16.20	)		3.88			3.61
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		0.00	‡		(0.01	)		(0.01	)		—			—
Total from investment operations		3.82			2.39			5.66			(15.47	)		4.23			3.58
Less dividends and distributions:
From net investment income		(0.03	)		(0.30	)		(0.79	)		(0.55	)		(0.69	)		(0.80	)
From net realized gain on investments		—			—			—			—			(4.42	)		(0.70	)
Total dividends and distributions		(0.03	)		(0.30	)		(0.79	)		(0.55	)		(5.11	)		(1.50	)
Redemption fee (b)		—			0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)
Net asset value at end of period	$	32.93		$	29.14		$	27.05		$	22.18		$	38.20		$	39.08
Total investment return (c)		13.13	%(d)		9.06	%		26.27	%		(41.00	%)(d)		11.16	%		9.72	% (d)(e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.91	%††		1.17	%		1.84	%		2.72	% ††		0.83	%		(0.20	%)††
Net expenses		1.40	%††		1.46	%		1.27	%		1.15	% ††		1.15	%		1.15	% ††
Expenses (before waiver/reimbursement)		1.40	%††		1.46	%		1.47	%		1.36	% ††		1.33	%		1.47	% ††(e)
Portfolio turnover rate		27	%		80	%		96	%		79	%		109	%		155	%
Net assets at end of period (in 000’s)	$	44,374		$	39,156		$	27,480		$	9,445		$	12,816		$	2,533

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.
(d)	Total investment return is not annualized.
(e)	Includes nonrecurring reimbursements from affiliates for IRS interest charge. If these nonrecurring reimbursements had not been made, the total investment return would have been 9.71%, 9.41%, 24.23%, 9.76%, 9.69% and 9.58% for Class A, Class C, Class I, Class R1, Class R2 and Class R3 shares, respectively, for the period ending December 31, 2006.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    75

Financial Highlights selected per share data and ratios

	Class R3
										January 1,						September 1,
	Six months									2008***						2006**
	ended									through			Year ended			through
	April 30,			Year ended October 31,						October 31,			December 31,			December 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	29.01		$	26.95		$	22.13		$	38.13		$	39.06		$	37.00
Net investment income (loss) (a)		0.10			0.25			0.39			0.75			0.21			0.07
Net realized and unrealized gain (loss) on investments		3.67			2.08			5.19			(16.24	)		3.89			3.45
Net realized and unrealized gain (loss) on foreign currency transactions		(0.01	)		0.00	‡		(0.01	)		(0.01	)		—			—
Total from investment operations		3.76			2.33			5.57			(15.50	)		4.10			3.52
Less dividends and distributions:
From net investment income		—			(0.27	)		(0.75	)		(0.50	)		(0.61	)		(0.76	)
From net realized gain on investments		—			—			—			—			(4.42	)		(0.70	)
Total dividends and distributions		—			(0.27	)		(0.75	)		(0.50	)		(5.03	)		(1.46	)
Redemption fee (b)		—			0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		0.00	‡(a)		—
Net asset value at end of period	$	32.77		$	29.01		$	26.95		$	22.13		$	38.13		$	39.06
Total investment return (c)		12.96	%(d)		8.85	%		25.87	%		(41.11	%)(d)		10.82	%		9.60	%(d)(e)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.65	%††		0.91	%		1.60	%		2.77	% ††		0.49	%		0.55	%††
Net expenses		1.65	%††		1.71	%		1.54	%		1.40	% ††		1.40	%		1.40	%††
Expenses (before waiver/reimbursement)		1.65	%††		1.71	%		1.72	%		1.62	% ††		1.58	%		1.72	%††(e)
Portfolio turnover rate		27	%		80	%		96	%		79	%		109	%		155	%
Net assets at end of period (in 000’s)	$	12,126		$	10,208		$	6,536		$	1,112		$	289		$	27

*	Unaudited.
**	Commencement of operations.
***	The Fund changed its fiscal year end from December 31 to October 31.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	The redemption fee was discontinued as of April 1, 2010.
(c)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.
(d)	Total investment return is not annualized.
(e)	Includes nonrecurring reimbursements from affiliates for IRS interest charge. If these nonrecurring reimbursements had not been made, the total investment return would have been 9.71%, 9.41%, 24.23%, 9.76%, 9.69% and 9.58% for Class A, Class C, Class I, Class R1, Class R2 and Class R3 shares, respectively, for the period ending December 31, 2006.

76    MainStay ICAP International Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009 and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the ���1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds” and each individually, referred to as a “Fund”). These financial statements and notes relate to the MainStay ICAP Equity Fund, MainStay ICAP Select Equity Fund, MainStay ICAP Global Fund and MainStay ICAP International Fund and (collectively referred to as the “ICAP Funds” and each individually referred to as an “ICAP Fund”). Each is a diversified fund. Each ICAP Fund is the successor of a series of ICAP Funds, Inc. with the same name (each a “Predecessor Fund”). The reorganizations of the Predecessor Funds with and into the respective ICAP Funds occurred on February 26, 2010. All Information regarding and references to periods prior to February 26, 2010 relate to the respective Predecessor Fund.

The ICAP Funds commenced operations on the dates indicated below:

Commencement
of Operations	Funds
April 30, 2008	MainStay ICAP Global Fund
December 31, 1997	MainStay ICAP Select Equity Fund, MainStay ICAP International Fund
December 31, 1994	MainStay ICAP Equity Fund

The MainStay ICAP Equity Fund and MainStay ICAP International Fund offer seven classes of shares: Investor Class, Class A, Class C, Class I, Class R1, Class R2 and Class R3 shares. Each of these share classes, other than Class I and Investor Class shares, commenced operations on September 1, 2006. Class I shares commenced operations (under a former designation) on December 31, 1994 for MainStay ICAP Equity Fund and on December 31, 1997 for MainStay ICAP International Fund. Investor Class shares commenced operations on April 29, 2008 for MainStay ICAP Equity Fund, MainStay ICAP Select Equity and MainStay ICAP International Fund.

The MainStay ICAP Global Fund offers four classes of shares: Investor Class, Class A, Class C and Class I shares. All share classes of the MainStay ICAP Global Fund commenced operations on April 30, 2008.

The MainStay ICAP Select Equity Fund offers eight classes of shares: Investor Class, Class A, Class B, Class C, Class I, Class R1, Class R2 and Class R3 shares. Each of these share classes other than Class B, Class I and Investor Class shares commenced operations on September 1, 2006. Class I shares commenced operations on December 31, 1997 (under a former designation) and Investor Class shares commenced operations on April 29, 2008. Class B shares commenced operations on November 13, 2009.

Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class B shares and Class C shares are offered at NAV without an initial sales charge, although a declining CDSC may be imposed on redemptions made within six years of purchase of Class B shares and a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I, Class R1, Class R2 and Class R3 shares are offered at NAV without imposition of a front-end sales charge or a CDSC. Depending upon eligibility, Class B shares convert to either Investor Class or Class A shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. Each class of shares has the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that the classes are subject to different distribution and/or service fee rates. Investor Class, Class B, Class A, Class C, Class R2 and Class R3 shares each bear distribution and/or service fee payments under distribution and service plans pursuant to Rule 12b-1 under the 1940 Act. Class R1, Class R2 and Class R3 shares are authorized to pay a shareholder service fee to New York Life Investment Management LLC, its affiliates, or third-party service providers, as compensation for services rendered to shareholders of Class R1, Class R2 or Class R3 shares. This is in addition to any fees paid under a distribution plan, where applicable.

The ICAP Funds’ investment objectives are as follows:

The MainStay ICAP Equity Fund seeks a superior total return with only a moderate degree of risk.

The MainStay ICAP Select Equity Fund seeks a superior total return.

The MainStay ICAP Global Fund seeks a superior total return.

The MainStay ICAP International Fund seeks a superior total return with income as a secondary objective.

Note 2–Significant Accounting Policies:

The ICAP Funds prepare their financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the ICAP Funds are open for business (“valuation date”).

“Fair value” is defined as the price that a ICAP Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or

mainstayinvestments.com    77

Notes to Financial Statements (unaudited) (continued)

liability based on market data obtained from sources independent of the ICAP Funds. Unobservable inputs reflect each ICAP Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the ICAP Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the ICAP Funds to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The ICAP Funds may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The ICAP Funds have procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the ICAP Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The ICAP Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for each ICAP Fund’s investments is included at the end of each ICAP Fund’s Portfolio of Investments.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the ICAP Funds’ Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the ICAP Funds’ Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the ICAP Funds did not hold securities that were valued in such a manner.

Certain events may occur between the time that foreign markets close, on which securities held by the ICAP Funds principally trade, and the time at which the ICAP Funds’ NAVs are calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisor conclude that such events may have affected the accuracy of the last price reported on the local foreign market, the Manager or Subadvisor may, pursuant to procedures adopted by the ICAP Funds’ Board, adjust the value of the local price to reflect the impact on the price of such securities as a result of such events. In this instance, securities are generally categorized as Level 3 in the hierarchy. Additionally, foreign equity securities are also fair valued whenever the movement of a particular index exceeds certain thresholds. In such cases, the securities are fair valued by applying factors provided by a third party vendor in accordance with the ICAP Funds’ policies and procedures and are generally categorized as Level 2 in the hierarchy. At April 30, 2011, foreign equity securities held by the ICAP Funds were not fair valued.

(B) Income Taxes. Each of the ICAP Funds is treated as a separate entity for federal income tax purposes. The ICAP Funds’ policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of each ICAP Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

78    MainStay ICAP Funds

Investment income received by the ICAP Funds from foreign sources may be subject to foreign income taxes. These foreign income taxes are generally withheld at the source.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the ICAP Funds’ tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years) and has concluded that no provision for federal, state and local income tax are required in the ICAP Funds’ financial statements. The ICAP Funds’ federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. Dividends from net investment income are declared and paid quarterly for the MainStay ICAP Equity Fund and MainStay ICAP Select Equity Fund, to the extent that income is available. For the MainStay ICAP Global Fund and MainStay ICAP International Fund, income dividends are normally paid less frequently, typically on a semi-annual or annual basis. Distributions from net realized capital gains, if any, are declared and paid annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the respective ICAP Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The ICAP Funds record security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the ICAP Funds are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the ICAP Funds are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual ICAP Funds in proportion to the net assets of the respective ICAP Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by each ICAP Fund, including those of related parties to the ICAP Funds, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Reclassification. Certain prior year amounts have been reclassified to conform with the current year presentation.

(H) Repurchase Agreements. The ICAP Funds may enter into repurchase agreements to earn income. The ICAP Funds may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the ICAP Funds’ Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the ICAP Funds invest in repurchase agreements, the ICAP Funds’ custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the ICAP Funds have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the respective ICAP Fund.

(I) Foreign Currency Transactions. The books and records of the ICAP Funds are kept in U.S. dollars. Prices of securities denominated in foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling exchange rates last quoted by any major U.S. bank at the following dates:

(i)  market value of investment securities, other assets and liabilities—at the valuation date, and

(ii)  purchases and sales of investment securities, income and expenses—at the date of such transactions.

The assets and liabilities that are denominated in foreign currency amounts are presented at the exchange rates and market values at the close of the period. The realized and unrealized changes in net assets arising from fluctuations in exchange rates and market prices of securities are not separately presented.

Net realized gain (loss) on foreign currency transactions represents net gains and losses on foreign currency forward contracts, net currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the ICAP Funds’ books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or losses from valuing such foreign currency denominated assets and liabilities, other than investments at valuation date exchange rates, are reflected in unrealized foreign exchange gains or losses. (See Note 5)

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Notes to Financial Statements (unaudited) (continued)

(J) Securities Lending. In order to realize additional income, the ICAP Funds may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the ICAP Funds do engage in securities lending, the ICAP Funds will lend through their custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the ICAP Funds’ cash collateral in accordance with the Lending Agreement between the ICAP Funds and State Street, and indemnify the ICAP Funds’ portfolios against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The ICAP Funds may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The ICAP Funds may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The ICAP Funds will receive compensation for lending their securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The ICAP Funds also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the ICAP Funds.

Although the ICAP Funds and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the ICAP Funds and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The ICAP Funds had no portfolio securities on loan as of April 30, 2011.

(K) Rights/Warrants. A right is a certificate that permits the holder to purchase a certain number of shares, or a fractional share, of a new stock from the issuer at a specific price. A warrant is an instrument that entitles the holder to buy an equity security at a specific price for a specific period of time. The ICAP Funds enter into rights and warrants when securities are acquired through a corporate action. With respect to warrants in international markets, the securities are only purchased when the underlying security can not be purchased due to the many restrictions an industry and/or country might place on foreign investors. These investments can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of these investments do not necessarily move in tandem with the prices of the underlying securities, and are speculative investments.

There is risk involved in the purchase of rights and warrants in that these investments are speculative investments. The ICAP Funds could also lose the entire value of the investment in warrants if the warrant is not exercised by the date of its expiration. The securities are sold as soon as the opportunity becomes available. The ICAP Funds are exposed to risk until each sale is completed.

(L) Redemption Fee. Prior to April 1, 2010, the MainStay ICAP Global Fund and MainStay ICAP International Fund imposed a 2.00% redemption fee on redemptions (including exchanges) of ICAP Fund shares made within 60 days of their date of purchase for any class. The redemption fee was designed to offset brokerage commissions and other costs associated with short-term trading and was not assessed on the shares acquired through the reinvestment of dividends or distributions paid by the ICAP Fund. The redemption fees are included in the Statement of Changes in Net Assets and were retained by these ICAP Funds for the fiscal year ended October 31, 2010.

(M) Concentration of Risk. The ICAP Funds may invest in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic instruments. These risks include those resulting from currency fluctuations, future adverse political or economic developments and possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. These risks are likely to be greater in emerging markets than in developed markets.

(N) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the ICAP Funds enter into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The ICAP Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the ICAP Funds that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the ICAP Funds.

(O) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures about the ICAP Funds’ derivative and hedging activities, including how such activities are accounted for and their effect on the ICAP Funds’ financial positions, performance and cash flows. These derivatives are not accounted for as hedging instruments.

MainStay ICAP Global Fund

The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2011 is as follows:

Change in Unrealized Appreciation (Depreciation)

	Statements of	Equity
	Operations	Contracts
	Location	Risk			Total
Rights	Net change in unrealized appreciation (depreciation) on security transactions	$	(13,239	)	$	(13,239	)
Total Change in Unrealized Appreciation (Depreciation)		$	(13,239	)	$	(13,239	)

80    MainStay ICAP Funds

Number of Contracts, Notional Amounts or Shares/Units (1)

	Equity
	Contracts
	Risk		Total
Rights (2)		28,819		28,819

(1)	Amount disclosed represents the weighted average held during the six-month period ended April 30, 2011.
(2)	Amount(s) represent(s) number of contracts or number of shares/units.

MainStay ICAP International Fund

The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2011 is as follows:

Change in Unrealized Appreciation (Depreciation)

	Statements of	Equity
	Operations	Contracts
	Location	Risk			Total
Rights	Net change in unrealized appreciation (depreciation) on security transactions	$	(407,967	)	$	(407,967	)
Total Change in Unrealized Appreciation (Depreciation)		$	(407,967	)	$	(407,967	)

Number of Contracts, Notional Amounts or Shares/Units (1)

	Equity
	Contracts
	Risk		Total
Rights (2)		905,177		905,177

(1)	Amount disclosed represents the weighted average held during the six-month period ended April 30, 2011.
(2)	Amount(s) represent(s) number of contracts or number of shares/units.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the ICAP Funds’ Manager, pursuant to a Management Agreement, as amended (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the ICAP Funds. Except for the portion of salaries and expenses that are the responsibility of the ICAP Funds, the Manager also pays the salaries and expenses of all personnel affiliated with the ICAP Funds and the operational expenses of the ICAP Funds. Institutional Capital LLC (“ICAP” or “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the ICAP Funds and is responsible for the day-to-day portfolio management of the ICAP Funds. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

Each ICAP Fund, with the exception of the MainStay ICAP Select Equity Fund, pays the Manager a monthly fee for the services performed and facilities furnished at an annual rate of 0.80% of the average daily net assets of that ICAP Fund. The MainStay ICAP Select Equity Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the average daily net assets as follows: 0.80% up to $5 billion and 0.775% in excess of $5 billion. The effective management fee rates (exclusive of any applicable waivers/reimbursements) for each of the ICAP Funds for the six-month period ended April 30, 2011 were as follows:

	Management
Funds	Fee Rate
MainStay ICAP Equity Fund		0.80	%
MainStay ICAP Select Equity Fund		0.80
MainStay ICAP Global Fund		0.80
MainStay ICAP International Fund		0.80

In connection with the discussion below regarding expense limitation agreements, Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses.

MainStay ICAP Equity Fund

The Manager has contractually agreed to waive a portion of the MainStay ICAP Equity Fund’s management fees and/or reimburse expenses so that Total Annual Fund Operating Expenses for Class I shares do not exceed 0.90% of its average daily net assets. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board.

Additionally, the Manager has agreed to voluntarily waive fees and/or reimburse expenses of the appropriate class of the MainStay ICAP Equity Fund so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.85%, Class C, 2.60%, and Class R1, 0.99%. This voluntary waiver or reimbursement may be discontinued at any time without notice.

MainStay ICAP Select Equity Fund

The Manager has contractually agreed to waive a portion of the MainStay ICAP Select Equity Fund’s management fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets: Class A, 1.18% and Class I, 0.90%. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board.

Additionally, the Manager had agreed to voluntarily waive fees and/or reimburse expenses of the appropriate class of the MainStay ICAP Select Equity Fund so that Total Annual Fund Operating Expenses of a class did not exceed the following percentages of average net assets: Investor Class, 1.47%; Class B, 2.22%; Class C, 2.22%; Class R1,

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Notes to Financial Statements (unaudited) (continued)

1.14%; Class R2, 1.39%; and Class R3, 1.64%. This voluntary waiver or reimbursement expired on November 12, 2010.

MainStay ICAP Global Fund

The Manager has contractually agreed to waive a portion of the MainStay ICAP Global Fund’s management fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.20%; Class A, 1.15%; Class C, 1.95%; and Class I, 0.90%. This agreement expires February 28, 2012 and may only be amended or terminated prior to that date by action of the Board.

MainStay ICAP International Fund

The Manager has contractually agreed to waive a portion of the MainStay ICAP International Fund’s management fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets: Class A, 1.30% and Class I, 0.95%. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board.

Additionally, the Manager has agreed to voluntarily waive fees and/or reimburse expenses of Class R1 shares of the MainStay ICAP International Fund so that the Total Annual Fund Operating Expenses do not exceed 1.05% of its average daily net assets. This voluntary waiver or reimbursement may be discontinued at any time without notice.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the ICAP Funds and waived/reimbursed its fees as follows:

			Fees
			reimbursed/
	Fees earned		waived
MainStay ICAP Equity Fund	$	3,256,690	$	117,348
MainStay ICAP Select Equity Fund		13,101,941		612,701
MainStay ICAP Global Fund		198,591		72,872
MainStay ICAP International Fund		3,788,977		313,955

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the ICAP Funds pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the ICAP Funds, maintaining the general ledger and sub-ledger accounts for the calculation of the ICAP Funds’ respective NAVs, and assisting New York Life Investments in conducting various aspects of the ICAP Funds’ administrative operations. For providing these services to the ICAP Funds, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the ICAP Funds, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The ICAP Funds have adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class, Class A and Class R2 Plans, the Distributor receives a monthly distribution fee from the Investor Class, Class A and Class R2 shares, at an annual rate of 0.25% of the average daily net assets of the Investor Class, Class A and Class R2 shares for distribution or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and Class C shares of the Fund pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Fund’s Class B and Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class B and Class C shares of the Fund for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 Plan, the Distributor receives a monthly distribution and shareholder service fee from the Class R3 shares at an annual rate of 0.50% of the average daily net assets of the Class R3 shares. Class I and Class R1 shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the ICAP Funds’ shares and service activities.

In accordance with the Shareholder Services Plans for the Class R1, Class R2 and Class R3 shares, the Manager has agreed to provide, through its affiliates or independent third parties, various shareholder and administrative support services to shareholders of the Class R1, Class R2 and Class R3 shares of the ICAP Funds that offer these share classes. For its services, the Manager is entitled to a Shareholder Service Fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets attributable to the Class R1, Class R2 and Class R3 shares of the applicable ICAP Funds. This is in addition to any fees paid under a distribution plan, where applicable.

Shareholder Service Fees incurred by each ICAP Fund for the six-month period ended April 30, 2011, were as follows:

MainStay ICAP Equity Fund
Class R1	$	1,792
Class R2		2,534
Class R3		1,257

MainStay ICAP Select Equity Fund
Class R1	$	9,629
Class R2		11,223
Class R3		7,107

MainStay ICAP International Fund
Class R1	$	359
Class R2		19,810
Class R3		5,506

(C) Sales Charges. The ICAP Funds were advised by the Distributor that the amount of sales charges retained on sales of Investor Class

82    MainStay ICAP Funds

and Class A shares for the six-month period ended April 30, 2011 were as follows:

MainStay ICAP Equity Fund
Investor Class	$	3,956
Class A		4,784

MainStay ICAP Select Equity Fund
Investor Class	$	21,458
Class A		35,795

MainStay ICAP Global Fund
Investor Class	$	749
Class A		756

MainStay ICAP International Fund
Investor Class	$	4,030
Class A		6,112

The ICAP Funds were also advised that the Distributor retained CDSCs on redemptions of Investor Class, Class A, Class B and Class C shares, for the six-month period ended April 30, 2011 were as follows:

MainStay ICAP Equity Fund
Class A	$	1
Class C		212

MainStay ICAP Select Equity Fund
Investor Class	$	54
Class A		1,212
Class B		40,829
Class C		7,251

MainStay ICAP Global Fund
Class C	$	23

MainStay ICAP International Fund
Class A	$	5
Class C		263

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent.

NYLIM Service Company LLC, an affiliate of New York Life Investments, is the ICAP Funds’ transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the ICAP Funds for the six-month period ended April 30, 2011, were as follows:

MainStay ICAP Equity Fund	Total
Investor Class	$	22,825
Class A		10,383
Class C		14,033
Class I		287,786
Class R1		1,364
Class R2		1,926
Class R3		957

MainStay ICAP Select Equity Fund	Total
Investor Class	$	328,575
Class A		304,009
Class B		148,174
Class C		179,463
Class I		1,265,293
Class R1		10,625
Class R2		12,467
Class R3		7,858

MainStay ICAP Global Fund	Total
Investor Class	$	419
Class A		338
Class C		213
Class I		5,143

MainStay ICAP International Fund	Total
Investor Class	$	17,321
Class A		167,381
Class C		27,563
Class I		531,115
Class R1		581
Class R2		31,884
Class R3		8,862

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the ICAP Funds have implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

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Notes to Financial Statements (unaudited) (continued)

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the ICAP Funds with the following values and percentages of net assets as follows:

			Percentage of
MainStay ICAP Equity Fund	Value		Net Assets
Class A	$	31,711		0.1	%
Class C		29,054		0.3
Class I		65,730,872		8.8
Class R1		29,214		0.8
Class R2		28,856		0.4
Class R3		28,536		1.1

			Percentage of
MainStay ICAP Select Equity Fund	Value		Net Assets
Class A	$	182,107		0.0	%‡
Class C		29,275		0.0	‡
Class I		2,902		0.0	‡
Class R1		33,086		0.2
Class R2		32,667		0.1
Class R3		29,521		0.2

‡  Less than one-tenth of a percent.

			Percentage of
MainStay ICAP Global Fund	Value		Net Assets
Class A	$	48,935		1.2	%
Class C		24,242		8.7
Class I		46,219,966		91.2

			Percentage of
MainStay ICAP International Fund	Value		Net Assets
Class A	$	28,141		0.0	%‡
Class C		26,973		0.1
Class R1		28,375		5.7
Class R2		28,024		0.1
Class R3		27,678		0.2

‡  Less than one-tenth of a percent.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the ICAP Funds by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the ICAP Funds through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were as follows:

MainStay ICAP Equity Fund	$	10,785
MainStay ICAP Select Equity Fund		45,108
MainStay ICAP Global Fund		678
MainStay ICAP International Fund		13,086

Effective March 18, 2011, the ICAP Funds are no longer directly responsible for any portion of the cost of legal services provided to the ICAP Funds by OGC.

Note 4–Federal Income Tax

As of October 31, 2010, for federal income tax purposes, capital loss carryforwards of $227,751,551 were available as shown in the following table to the extent provided by the regulations to offset future realized gains of the MainStay ICAP Equity Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

MainStay ICAP Equity Fund

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2016	$	16,545
	2017		211,207
	Total	$	227,752

As of October 31, 2010, for federal income tax purposes, capital loss carryforwards of $678,426,293 were available as shown in the following table to the extent provided by the regulations to offset future realized gains of the MainStay ICAP Select Equity Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

MainStay ICAP Select Equity Fund

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2015	$	16,397
	2016		237,469
	2017		424,560
	Total	$	678,426

As of October 31, 2010, for federal income tax purposes, capital loss carryforwards of $11,759,718 were available as shown in the following table to the extent provided by the regulations to offset future realized gains of the MainStay ICAP Global Fund through the years indicated. The Fund acquired $113,038,797 of capital losses in its reorganization with MainStay Value Fund and $39,104,570 with MainStay Mid Cap Value Fund. (See Note 10) Use of these losses may be limited due to the provisions of Internal Revenue Code section 382. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

84    MainStay ICAP Funds

MainStay ICAP Global Fund

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2016	$	2,624
	2017		9,136
	Total	$	11,760

As of October 31, 2010, for federal income tax purposes, capital loss carryforwards of $225,995,481 were available as shown in the following table to the extent provided by the regulations to offset future realized gains of the MainStay ICAP International Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

MainStay ICAP International Fund

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2016	$	79,728
	2017		146,267
	Total	$	225,995

The tax character of distributions paid during the year ended October 31, 2010, shown in the Statements of Changes in Net Assets, were as follows:

	2010
	Tax-Based		Tax-Based
	Distributions		Distributions
	from Ordinary		from Long-Term
	Income		Gains
MainStay ICAP Equity Fund	$	10,987,035	$	—
MainStay ICAP Select Equity Fund		28,840,060		—
MainStay ICAP Global Fund		566,010		—
MainStay ICAP International Fund		10,663,587		—

Note 5–Foreign Currency Transactions

MainStay ICAP Global Fund

As of April 30, 2011, the Fund held the following foreign currencies:

	Currency		Cost				Value
Euro	EUR	237	USD	340			USD	352
Japanese Yen	JPY	1		0	(a	)		0	(a	)
Total			USD	340			USD	352

(a)  Less than one dollar.

MainStay ICAP International Fund

As of April 30, 2011, the Fund held the following foreign currencies:

	Currency			Cost			Value
Euro	EUR	13,525		USD	19,646		USD	20,033
Japanese Yen (a)	JPY	(1	)		(0	)(b)		(0	)(b)
Total				USD	19,646		USD	20,033

(a)	Currency was overdrawn as of April 30, 2011.
(b)	Less than one dollar.

Note 6–Custodian

State Street is the custodian of the cash and the securities of the ICAP Funds. Custodial fees are charged to the ICAP Funds based on the market value of securities in the ICAP Funds and the number of certain cash transactions incurred by the ICAP Funds.

Note 7–Line of Credit

The ICAP Funds and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

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Notes to Financial Statements (unaudited) (continued)

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the ICAP Funds on the amended credit agreement during the six-month period ended April 30, 2011.

Note 8–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchase and sales of securities, other than short-term securities and securities subject to repurchase transactions, were as follows:

	MainStay ICAP				MainStay ICAP				MainStay ICAP				MainStay ICAP
	Equity Fund				Select Equity Fund				Global Fund				International Fund
	Purchases		Sales		Purchases		Sales		Purchases		Sales		Purchases		Sales
U.S. Government securities	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
All others		245,545		305,216		1,368,548		1,087,830		20,454		17,872		374,578		252,969
Total	$	245,545	$	305,216	$	1,368,548	$	1,087,830	$	20,454	$	17,872	$	374,578	$	252,969

Note 9–Capital Share Transactions

MainStay ICAP Equity Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		21,089		$	779,054
Shares issued to shareholders in reinvestment of dividends		1,103			40,203
Shares redeemed		(26,682	)		(982,522	)
Net increase (decrease) in shares outstanding before conversion		(4,490	)		(163,265	)
Shares converted from Investor Class (See Note 1)		(19,817	)		(721,532	)
Net increase (decrease)		(24,307	)	$	(884,797	)
Year ended October 31, 2010:
Shares sold		40,932		$	1,324,767
Shares issued to shareholders in reinvestment of dividends		2,914			92,763
Shares redeemed		(68,029	)		(2,186,907	)
Net increase (decrease) in shares outstanding before conversion		(24,183	)		(769,377	)
Shares converted into Investor Class (See Note 1)		5,832			191,907
Shares converted from Investor Class (See Note 1)		(9,251	)		(301,591	)
Net increase (decrease)		(27,602	)	$	(879,061	)
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		378,954		$	14,447,066
Shares issued to shareholders in reinvestment of dividends		2,924			107,166
Shares redeemed		(86,518	)		(3,192,669	)
Net increase (decrease) in shares outstanding before conversion		295,360			11,361,563
Shares converted into Class A (See Note 1)		19,803			721,532
Net increase (decrease)		315,163		$	12,083,095
Year ended October 31, 2010:
Shares sold		202,284		$	6,493,415
Shares issued to shareholders in reinvestment of dividends		8,502			271,045
Shares redeemed		(319,631	)		(10,331,561	)
Net increase (decrease) in shares outstanding before conversion		(108,845	)		(3,567,101	)
Shares converted into Class A (See Note 1)		9,239			301,591
Shares converted from Class A (See Note 1)		(5,823	)		(191,907	)
Shares converted from Class A (a)		(26,387	)		(838,842	)
Net increase (decrease)		(131,816	)	$	(4,296,259	)

86    MainStay ICAP Funds

Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		38,627		$	1,431,293
Shares issued to shareholders in reinvestment of dividends		50			1,770
Shares redeemed		(14,323	)		(517,400	)
Net increase (decrease)		24,354		$	915,663
Year ended October 31, 2010:
Shares sold		77,565		$	2,471,524
Shares issued to shareholders in reinvestment of dividends		501			15,874
Shares redeemed		(49,720	)		(1,561,637	)
Net increase (decrease)		28,346		$	925,761
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		2,063,019		$	75,976,840
Shares issued to shareholders in reinvestment of dividends		125,950			4,609,986
Shares redeemed (b)		(6,914,901	)		(253,318,463	)
Net increase (decrease)		(4,725,932	)	$	(172,731,637	)
Year ended October 31, 2010:
Shares sold		7,946,252		$	255,825,760
Shares issued to shareholders in reinvestment of dividends		321,960			10,272,232
Shares redeemed (c)		(8,217,257	)		(263,125,377	)
Net increase (decrease) in shares outstanding before conversion		50,955			2,972,615
Shares converted into Class I (a)		26,346			838,842
Net increase (decrease)		77,301		$	3,811,457
Class R1	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		9,986		$	368,154
Shares issued to shareholders in reinvestment of dividends		541			19,862
Shares redeemed		(11,269	)		(412,806	)
Net increase (decrease)		(742	)	$	(24,790	)
Year ended October 31, 2010:
Shares sold		41,374		$	1,364,089
Shares issued to shareholders in reinvestment of dividends		959			30,631
Shares redeemed		(19,252	)		(620,028	)
Net increase (decrease)		23,081		$	774,692
Class R2	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		51,703		$	1,956,945
Shares issued to shareholders in reinvestment of dividends		549			20,129
Shares redeemed		(13,151	)		(488,238	)
Net increase (decrease)		39,101		$	1,488,836
Year ended October 31, 2010:
Shares sold		72,214		$	2,338,013
Shares issued to shareholders in reinvestment of dividends		1,038			33,083
Shares redeemed		(14,418	)		(466,782	)
Net increase (decrease)		58,834		$	1,904,314
Class R3	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		19,547		$	709,104
Shares issued to shareholders in reinvestment of dividends		214			7,759
Shares redeemed		(20,075	)		(742,878	)
Net increase (decrease)		(314	)	$	(26,015	)
Year ended October 31, 2010:
Shares sold		61,513		$	2,028,531
Shares issued to shareholders in reinvestment of dividends		325			10,232
Shares redeemed		(7,268	)		(235,599	)
Net increase (decrease)		54,570		$	1,803,164

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Notes to Financial Statements (unaudited) (continued)

MainStay ICAP Select Equity Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		137,059		$	4,918,301
Shares issued to shareholders in reinvestment of dividends		15,577			551,646
Shares redeemed		(352,999	)		(12,630,485	)
Net increase (decrease) in shares outstanding before conversion		(200,363	)		(7,160,538	)
Shares converted into Investor Class (See Note 1)		176,673			6,326,805
Shares converted from Investor Class (See Note 1)		(336,004	)		(11,944,689	)
Net increase (decrease)		(359,694	)	$	(12,778,422	)
Year ended October 31, 2010:
Shares sold		303,104		$	9,469,237
Shares issued in connection with the acquisition of MainStay Value Fund (See Note 10)		4,410,690			132,367,008
Shares issued in connection with the acquisition of MainStay Mid Cap Value Fund (See Note 10)		1,165,123			35,331,544
Shares issued to shareholders in reinvestment of dividends		32,389			967,222
Shares redeemed		(759,866	)		(23,653,109	)
Net increase (decrease) in shares outstanding before conversion		5,151,440			154,481,902
Shares converted into Investor Class (See Note 1)		449,260			13,947,056
Shares converted from Investor Class (See Note 1)		(321,415	)		(10,049,320	)
Net increase (decrease)		5,279,285		$	158,379,638
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		3,154,644		$	112,326,970
Shares issued to shareholders in reinvestment of dividends		53,863			1,916,536
Shares redeemed		(1,890,746	)		(67,904,051	)
Net increase (decrease) in shares outstanding before conversion		1,317,761			46,339,455
Shares converted into Class A (See Note 1)		424,512			15,077,432
Shares converted from Class A (See Note 1)		(17,778	)		(654,424	)
Net increase (decrease)		1,724,495		$	60,762,463
Year ended October 31, 2010:
Shares sold		4,333,980		$	134,553,598
Shares issued in connection with the acquisition of MainStay Value Fund (See Note 10)		4,823,914			144,765,185
Shares issued in connection with the acquisition of MainStay Mid Cap Value Fund (See Note 10)		1,763,625			53,479,447
Shares issued to shareholders in reinvestment of dividends		111,180			3,367,130
Shares redeemed		(3,106,110	)		(96,458,131	)
Net increase (decrease) in shares outstanding before conversion		7,926,589			239,707,229
Shares converted into Class A (See Note 1)		627,535			19,594,504
Shares converted from Class A (See Note 1)		(50,013	)		(1,608,020	)
Shares converted from Class A (a)		(692,144	)		(21,241,909	)
Net increase (decrease)		7,811,967		$	236,451,804
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		113,762		$	4,038,017
Shares issued to shareholders in reinvestment of dividends		152			5,222
Shares redeemed		(190,191	)		(6,762,615	)
Net increase (decrease) in shares outstanding before conversion		(76,277	)		(2,719,376	)
Shares converted from Class B (See Note 1)		(249,274	)		(8,805,124	)
Net increase (decrease)		(325,551	)	$	(11,524,500	)
Period ended October 31, 2010 (d):
Shares sold		230,022		$	7,120,086
Shares issued in connection with the acquisition of MainStay Value Fund (See Note 10)		1,913,939			57,278,639
Shares issued in connection with the acquisition of MainStay Mid Cap Value Fund (See Note 10)		1,701,453			51,439,350
Shares issued to shareholders in reinvestment of dividends		6,361			185,155
Shares redeemed		(524,373	)		(16,167,716	)
Net increase (decrease) in shares outstanding before conversion		3,327,402			99,855,514
Shares converted from Class B (See Note 1)		(709,725	)		(21,884,220	)
Net increase (decrease)		2,617,677		$	77,971,294

88    MainStay ICAP Funds

Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		492,874		$	17,531,726
Shares issued to shareholders in reinvestment of dividends		132			4,541
Shares redeemed		(326,085	)		(11,564,489	)
Net increase (decrease)		166,921		$	5,971,778
Year ended October 31, 2010:
Shares sold		991,125		$	30,746,805
Shares issued in connection with the acquisition of MainStay Value Fund (See Note 10)		181,117			5,420,299
Shares issued in connection with the acquisition of MainStay Mid Cap Value Fund (See Note 10)		382,905			11,576,242
Shares issued to shareholders in reinvestment of dividends		3,696			107,602
Shares redeemed		(613,585	)		(18,956,078	)
Net increase (decrease)		945,258		$	28,894,870
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		12,814,385		$	460,123,948
Shares issued to shareholders in reinvestment of dividends		304,918			10,893,483
Shares redeemed		(7,115,430	)		(254,735,266	)
Net increase (decrease)		6,003,873		$	216,282,165
Year ended October 31, 2010:
Shares sold		22,005,072		$	690,897,460
Shares issued in connection with the acquisition of MainStay Value Fund (See Note 10)		472,783			14,204,015
Shares issued in connection with the acquisition of MainStay Mid Cap Value Fund (See Note 10)		9,175			278,552
Shares issued to shareholders in reinvestment of dividends		676,694			20,607,983
Shares redeemed		(12,807,985	)		(396,788,295	)
Net increase (decrease) in shares outstanding before conversion		10,355,739			329,199,715
Shares converted into Class I (a)		690,793			21,241,909
Net increase (decrease)		11,046,532		$	350,441,624
Class R1	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		159,284		$	5,665,409
Shares issued to shareholders in reinvestment of dividends		2,351			84,163
Shares redeemed		(54,892	)		(1,970,209	)
Net increase (decrease)		106,743		$	3,779,363
Year ended October 31, 2010:
Shares sold		92,759		$	2,923,523
Shares issued in connection with the acquisition of MainStay Value Fund (See Note 10)		36			1,080
Shares issued in connection with the acquisition of MainStay Mid Cap Value Fund (See Note 10)		577			17,519
Shares issued to shareholders in reinvestment of dividends		5,288			160,826
Shares redeemed		(102,375	)		(3,211,431	)
Net increase (decrease)		(3,715	)	$	(108,483	)
Class R2	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		163,280		$	5,901,840
Shares issued to shareholders in reinvestment of dividends		2,222			78,719
Shares redeemed		(265,335	)		(9,221,804	)
Net increase (decrease)		(99,833	)	$	(3,241,245	)
Year ended October 31, 2010:
Shares sold		493,708		$	15,113,228
Shares issued in connection with the acquisition of MainStay Value Fund (Note 10)		1,563			46,926
Shares issued in connection with the acquisition of MainStay Mid Cap Value Fund (See Note 10)		4,702			142,610
Shares issued to shareholders in reinvestment of dividends		5,799			174,935
Shares redeemed		(143,346	)		(4,457,333	)
Net increase (decrease)		362,426		$	11,020,366
Class R3	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		103,476		$	3,672,267
Shares issued to shareholders in reinvestment of dividends		857			30,268
Shares redeemed		(41,346	)		(1,505,197	)
Net increase (decrease)		62,987		$	2,197,338
Year ended October 31, 2010:
Shares sold		240,452		$	7,248,813
Shares issued to shareholders in reinvestment of dividends		1,272			38,382
Shares redeemed		(37,572	)		(1,172,622	)
Net increase (decrease)		204,152		$	6,114,573

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Notes to Financial Statements (unaudited) (continued)

MainStay ICAP Global Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		16,881		$	152,680
Shares issued to shareholders in reinvestment of dividends		167			1,458
Shares redeemed		(3,846	)		(35,175	)
Net increase (decrease)		13,202		$	118,963
Year ended October 31, 2010:
Shares sold		35,120		$	279,326
Shares issued to shareholders in reinvestment of dividends		510			3,744
Shares redeemed		(14,751	)		(113,234	)
Net increase (decrease) in shares outstanding before conversion		20,879			169,836
Shares converted into Investor Class (See Note 1)		2,013			16,428
Shares converted from Investor Class (See Note 1)		(6,839	)		(55,325	)
Net increase (decrease)		16,053		$	130,939
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		142,315		$	1,310,955
Shares issued to shareholders in reinvestment of dividends		1,055			9,215
Shares redeemed		(18,901	)		(172,232	)
Net increase (decrease)		124,469		$	1,147,938
Year ended October 31, 2010:
Shares sold		232,320		$	1,869,828
Shares issued to shareholders in reinvestment of dividends		2,648			19,329
Shares redeemed		(62,505	)		(488,488	)
Net increase (decrease) in shares outstanding before conversion		172,463			1,400,669
Shares converted into Class A (See Note 1)		6,830			55,325
Shares converted from Class A (See Note 1)		(2,011	)		(16,428	)
Net increase (decrease)		177,282		$	1,439,566
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		11,235		$	99,514
Shares issued to shareholders in reinvestment of dividends		13			120
Shares redeemed		(2,634	)		(23,254	)
Net increase (decrease)		8,614		$	76,380
Year ended October 31, 2010:
Shares sold		12,377		$	100,369
Shares issued to shareholders in reinvestment of dividends		83			595
Shares redeemed		(10,763	)		(83,336	)
Net increase (decrease)		1,697		$	17,628
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		150,980		$	1,369,047
Shares issued to shareholders in reinvestment of dividends		23,863			208,560
Shares redeemed		(12,770	)		(117,177	)
Net increase (decrease)		162,073		$	1,460,430
Year ended October 31, 2010:
Shares sold		136,247		$	1,084,148
Shares issued to shareholders in reinvestment of dividends		3,424			25,322
Shares redeemed		(13,303	)		(105,694	)
Net increase (decrease)		126,368		$	1,003,776

MainStay ICAP International Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		28,845		$	883,123
Shares issued to shareholders in reinvestment of dividends		207			6,063
Shares redeemed		(32,522	)		(985,480	)
Net increase (decrease) in shares outstanding before conversion		(3,470	)		(96,294	)
Shares converted into Investor Class (See Note 1)		2,188			68,088
Shares converted from Investor Class (See Note 1)		(7,642	)		(230,781	)
Net increase (decrease)		(8,924	)	$	(258,987	)
Year ended October 31, 2010:
Shares sold		48,109		$	1,322,673
Shares issued to shareholders in reinvestment of dividends		4,222			100,539
Shares redeemed		(71,118	)		(1,907,805	)
Net increase (decrease) in shares outstanding before conversion		(18,787	)		(484,593	)
Shares converted into Investor Class (See Note 1)		4,893			137,141
Shares converted from Investor Class (See Note 1)		(14,742	)		(411,624	)
Net increase (decrease)		(28,636	)	$	(759,076	)

90    MainStay ICAP Funds

Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,344,640		$	40,667,927
Shares issued to shareholders in reinvestment of dividends		11,645			341,909
Shares redeemed		(923,172	)		(28,068,777	)
Net increase (decrease) in shares outstanding before conversion		433,113			12,941,059
Shares converted into Class A (See Note 1)		7,639			230,781
Shares converted from Class A (See Note 1)		(2,187	)		(68,088	)
Net increase (decrease)		438,565		$	13,103,752
Year ended October 31, 2010:
Shares sold		3,453,875		$	93,612,111
Shares issued to shareholders in reinvestment of dividends		82,484			1,963,948
Shares redeemed		(1,877,367	)		(50,279,433	)
Net increase (decrease) in shares outstanding before conversion		1,658,992			45,296,626
Shares converted into Class A (See Note 1)		14,734			411,624
Shares converted from Class A (See Note 1)		(4,890	)		(137,141	)
Shares converted from Class A (a)		(151,149	)		(3,999,406	)
Net increase (decrease)		1,517,687		$	41,571,703
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		177,029		$	5,338,057
Shares issued to shareholders in reinvestment of dividends		1			22
Shares redeemed		(114,635	)		(3,419,565	)
Net increase (decrease)		62,395		$	1,918,514
Year ended October 31, 2010:
Shares sold		88,892		$	2,420,476
Shares issued to shareholders in reinvestment of dividends		3,242			76,646
Shares redeemed		(270,019	)		(7,197,777	)
Net increase (decrease)		(177,885	)	$	(4,700,655	)
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		5,367,509		$	164,268,870
Shares issued to shareholders in reinvestment of dividends		66,235			1,948,038
Shares redeemed		(2,078,277	)		(63,690,229	)
Net increase (decrease)		3,355,467		$	102,526,679
Year ended October 31, 2010:
Shares sold		6,491,218		$	174,262,039
Shares issued to shareholders in reinvestment of dividends		296,469			7,176,712
Shares redeemed		(4,824,653	)		(129,472,349	)
Net increase (decrease) in shares outstanding before conversion		1,963,034			51,966,402
Shares converted into Class I (a)		150,807			3,999,406
Net increase (decrease)		2,113,841		$	55,965,808
Class R1	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		3,075		$	91,448
Shares issued to shareholders in reinvestment of dividends		96			2,810
Shares redeemed		(20,603	)		(615,631	)
Net increase (decrease)		(17,432	)	$	(521,373	)
Year ended October 31, 2010:
Shares sold		25,629		$	696,644
Shares issued to shareholders in reinvestment of dividends		456			10,929
Shares redeemed		(18,529	)		(494,056	)
Net increase (decrease)		7,556		$	213,517
Class R2	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		288,402		$	8,837,841
Shares issued to shareholders in reinvestment of dividends		1,315			38,605
Shares redeemed		(285,712	)		(8,556,962	)
Net increase (decrease)		4,005		$	319,484
Year ended October 31, 2010:
Shares sold		674,626		$	18,581,048
Shares issued to shareholders in reinvestment of dividends		14,358			341,721
Shares redeemed		(361,520	)		(9,865,876	)
Net increase (decrease)		327,464		$	9,056,893
Class R3	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		95,813		$	2,909,233
Shares redeemed		(77,676	)		(2,390,633	)
Net increase (decrease)		18,137		$	518,600
Year ended October 31, 2010:
Shares sold		214,704		$	5,794,802
Shares issued to shareholders in reinvestment of dividends		2,524			59,830
Shares redeemed		(107,775	)		(2,919,095	)
Net increase (decrease)		109,453		$	2,935,537
(a) In addition to any automatic conversion features described above in Note 1 with respect to Investor Class, Class A and B shares, an investor generally may also elect to convert their shares on a voluntary basis into another share class of the same ICAP Fund for which an investor is eligible. However, the following limitations apply:

•  Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and

•  All Class B and C shares are ineligible for a voluntary conversion.

These limitations do not impact any automatic conversion features described in Note 1 with respect to Investor Class, Class A and B shares.

An investor or an investor’s financial intermediary may contact the ICAP Funds to request a voluntary conversion between shares classes of the same ICAP Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will be made on the basis of the relevant NAVs of the two classes without the imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an

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Notes to Financial Statements (unaudited) (continued)

investor may automatically be converted back to their original share class, or into another share class, if appropriate

(b)	Includes the redemption of 2,734,301 shares through an in-kind transfer of securities in the amount of $99,040,775. (See Note 11)
(c)	Includes the redemption of 1,587,284 shares through an in-kind transfer of securities in the amount of $55,704,242.
(d)	Class B shares for MainStay ICAP Select Equity Fund were first offered on November 11, 2009.

Note 10–Fund Acquisitions

At a meeting held on June 23, 2009, the Board approved a plan of reorganization whereby the MainStay ICAP Select Equity Fund would acquire the assets, including the investments, and assume the liabilities of MainStay Value Fund, a series of The MainStay Funds. Shareholders of the MainStay Value Fund approved this reorganization on November 5, 2009, which was completed on November 12, 2009. The aggregate net assets of the MainStay ICAP Select Equity Fund immediately before the acquisition were $1,835,281,477 and the combined net assets after the acquisition were $2,189,364,629.

The acquisition was accomplished by a tax-free exchange of the following:

	Shares		Value
MainStay Value Fund
Investor Class		9,297,917	$	132,367,008
Class A		10,189,206		144,765,185
Class B		4,043,817		57,278,639
Class C		382,552		5,420,299
Class I		993,600		14,204,015
Class R1		75		1,080
Class R2		3,285		46,926

In exchange for the MainStay Value Fund shares and net assets, the MainStay ICAP Select Equity Fund issued 4,410,690 Investor Class Shares; 4,823,914 Class A shares; 1,913,939 Class B shares; 181,117 Class C shares; 472,783 Class I shares; 36 Class R1 shares; and 1,563 Class R2 shares.

MainStay Value Fund’s net assets at the acquisition date were as follows, which include the following amounts of capital stock, unrealized appreciation, accumulated net realized loss and undistributed net investment loss:

	Total Net		Capital		Unrealized		Accumulated Net			Undistributed Net
	Assets		Stock		Appreciation		Realized Loss			Investment Loss
MainStay Value Fund	$	354,083,152	$	425,289,747	$	43,388,960	$	(114,594,547	)	$	(1,008	)

Also at the meeting held on June 23, 2009, the Board approved a plan of reorganization whereby the MainStay ICAP Select Equity Fund would acquire the assets, including the investments, and assume the liabilities of MainStay Mid Cap Value Fund, a series of The MainStay Funds. Shareholders of the MainStay Mid Cap Value Fund approved this reorganization on November 16, 2009, which was completed on November 24, 2009. The aggregate net assets of the MainStay ICAP Select Equity Fund immediately before the acquisition were $2,229,459,923 and the combined net assets after the acquisition were $2,381,725,187.

The acquisition was accomplished by a tax-free exchange of the following:

	Shares		Value
MainStay Mid Cap Value Fund
Investor Class		3,220,243	$	35,331,544
Class A		4,870,845		53,479,447
Class B		4,924,594		51,439,350
Class C		1,108,485		11,576,242
Class I		25,005		278,552
Class R1		1,568		17,519
Class R2		12,937		142,610

In exchange for the MainStay Mid Cap Value Fund shares and net assets, the MainStay ICAP Select Equity Fund issued 1,165,123 Investor Class Shares; 1,763,625 Class A shares; 1,701,453 Class B shares; 382,905 Class C shares; 9,175 Class I shares; 577 Class R1 shares; and 4,702 Class R2 shares.

MainStay Mid Cap Value Fund’s net assets at the acquisition date were as follows, which include the following amounts of capital stock, unrealized depreciation, accumulated net realized loss and undistributed net investment income:

	Total Net		Capital		Unrealized			Accumulated Net			Undistributed Net
	Assets		Stock		Depreciation			Realized Loss			Investment
MainStay Mid Cap Value Fund	$	152,265,264	$	191,861,774	$	(359,014	)	$	(39,237,794	)	$	298

92    MainStay ICAP Funds

Note 11–In-Kind Transfer of Securities

During the six-month period ended April 30, 2011, the MainStay ICAP Equity Fund redeemed shares of beneficial interest in exchange for securities. The securities were transferred at their current value on the date of transaction.

Transaction Date	Shares		Redeemed Value		Gain (Loss)
12/31/10		2,734,301	$	99,040,775	$	21,152,510

Note 12–Subsequent Events

In connection with the preparation of the financial statements of the ICAP Funds as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the ICAP Funds’ management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

mainstayinvestments.com    93

Board Consideration and Approval of Management Agreements and Subadvisory Agreements (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreements between the MainStay ICAP Equity Fund, MainStay ICAP Global Fund, MainStay ICAP International Fund and MainStay ICAP Select Equity Fund (“ICAP Funds”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreements between New York Life Investments and Institutional Capital LLC (“ICAP”) on behalf of the ICAP Funds.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and ICAP as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and ICAP in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and ICAP at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the ICAP Funds prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the ICAP Funds’ investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and ICAP on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the ICAP Funds, and the rationale for any differences in the ICAP Funds’ management and/or subadvisory fees and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the ICAP Funds to New York Life Investments and its affiliates, including ICAP as subadvisor to the ICAP Funds, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the ICAP Funds prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the ICAP Funds by New York Life Investments and ICAP; (ii) the investment performance of the ICAP Funds, New York Life Investments and ICAP; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates, including ICAP as subadvisor to the ICAP Funds, from their relationship with the ICAP Funds; (iv) the extent to which economies of scale may be realized as the ICAP Funds grow, and the extent to which economies of scale may benefit ICAP Funds investors; and (v) the reasonableness of the ICAP Funds’ management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the ICAP Funds, and that the ICAP Funds’ shareholders, having had the opportunity to consider other investment options, have chosen to invest in the ICAP Funds. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and ICAP

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the ICAP Funds. The Board evaluated New York Life Investments’ experience in serving as manager of the ICAP Funds, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the ICAP Funds, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the ICAP Funds’ legal and compliance environment, for overseeing ICAP’s compliance with the ICAP Funds’ policies and investment objectives, and for implementing Board directives as they relate to the ICAP Funds. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the ICAP Funds, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the ICAP

94    MainStay ICAP Funds

Funds’ officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the ICAP Funds’ prospectus.

The Board also examined the nature, extent and quality of the services that ICAP provides to the ICAP Funds. The Board evaluated ICAP’s experience in serving as subadvisor to the ICAP Funds and managing other portfolios. It examined ICAP’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at ICAP, and ICAP’s overall legal and compliance environment. The Board also reviewed ICAP’s willingness to invest in personnel designed to benefit the ICAP Funds. In this regard, the Board considered the experience of the ICAP Funds’ portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the ICAP Funds likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and ICAP’s experience, personnel, operations and resources.

Investment Performance

In evaluating the ICAP Funds’ investment performance, the Board considered investment performance results in light of the ICAP Funds’ investment objectives, strategies and risks, as disclosed in the ICAP Funds’ prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the ICAP Funds’ performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the ICAP Funds’ gross and net returns, the ICAP Funds’ investment performance relative to relevant investment categories and Fund benchmarks, the ICAP Funds’ risk-adjusted investment performance, and the ICAP Funds’ investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the ICAP Funds as compared to peer funds. In evaluating the performance of the ICAP Funds, the Board also took into account whether the ICAP Funds had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the ICAP Funds’ investment performance, the Board focused principally on the ICAP Funds’ long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the ICAP Funds’ investment performance, as well as discussions between the ICAP Funds’ portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance the ICAP Funds’ investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the ICAP Funds, along with ongoing efforts by New York Life Investments and ICAP to enhance investment returns, supported a determination to approve the Agreements. The ICAP Funds disclose more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the ICAP Funds’ prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and ICAP

The Board considered the costs of the services provided by New York Life Investments and ICAP under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the ICAP Funds. Because ICAP is an affiliate of New York Life Investments whose subadvisory fees are paid directly by New York Life Investments, the Board considered cost and profitability information for New York Life Investments and ICAP in the aggregate.

In evaluating any costs and profits of New York Life Investments and its affiliates, including ICAP, due to their relationships with the ICAP Funds, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the ICAP Funds, and that New York Life Investments is responsible for paying the subadvisory fees for the ICAP Funds. The Board acknowledged that New York Life Investments and ICAP must be in a position to pay and retain experienced professional personnel to provide services to the ICAP Funds, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the ICAP Funds. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the ICAP Funds, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the ICAP Funds, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the ICAP Funds. The Board recognized, for example, the benefits to ICAP from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to ICAP in exchange for commissions paid by certain ICAP Funds with respect to trades on the respective ICAP Funds’ portfolio securities.

mainstayinvestments.com    95

Board Consideration and Approval of Management Agreements and Subadvisory Agreements (Unaudited) (Continued)

The Board further considered that, in addition to fees earned by New York Life Investments for managing the ICAP Funds, New York Life Investments’ affiliates also earn revenues from serving the ICAP Funds in various other capacities, including as the ICAP Funds’ transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the ICAP Funds to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the ICAP Funds to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the ICAP Funds on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates (including ICAP) due to their relationships with the ICAP Funds supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the ICAP Funds Grow

The Board also considered whether the ICAP Funds’ expense structures permitted economies of scale to be shared with ICAP Fund investors. The Board reviewed information from New York Life Investments showing how the ICAP Funds’ management fee schedules compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the ICAP Funds’ management fee schedules hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the ICAP Funds benefit from any breakpoints or expense limitations. While recognizing the difficulty in determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the ICAP Funds in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the ICAP Funds’ expense structures appropriately reflect economies of scale for the benefit of ICAP Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the ICAP Funds’ expense structures as the ICAP Funds grow over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the ICAP Funds’ expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the ICAP Funds to New York Life Investments, since the fees to be paid to ICAP are paid by New York Life Investments, not the ICAP Funds. The Board also considered the impact of the ICAP Funds’ expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the ICAP Funds’ total ordinary operating expenses.

In assessing the reasonableness of the ICAP Funds’ fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and ICAP on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the ICAP Funds. In this regard, the Board took into account explanations from New York Life Investments and ICAP about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the ICAP Funds’ management fees and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the ICAP Funds based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the ICAP Funds’ average net assets. The Board took into account information from New York Life Investments showing that the ICAP Funds’ transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the ICAP Funds’ transfer agent, charges the ICAP Funds are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the ICAP Funds.

The Board observed that, because the ICAP Funds’ transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on

96    MainStay ICAP Funds

certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the ICAP Funds’ management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

mainstayinvestments.com    97

Proxy Voting Policies and
Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the ICAP Funds’ securities is available without charge, upon request, (i) by visiting the MainStay Funds’ website at mainstayinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

The ICAP Funds are required to file with the SEC their proxy voting records for each ICAP Fund for the 12-month period ending June 30 on Form N-PX. The most recent Form N-PX or relevant ICAP Fund proxy voting record is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the MainStay Funds’ website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

Each ICAP Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Each ICAP Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

98    MainStay ICAP Funds

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23061 MS136-11 MSIC10-06/11

E1

MainStay Indexed Bond Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	10
Financial Statements	29
Notes to Financial Statements	35
Board Consideration and Approval of Management Agreement	41
Proxy Voting Policies and Procedures and Proxy Voting Record	44
Shareholder Reports and Quarterly Portfolio Disclosure	44

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

															Gross
															Expense
Class	Sales Charge		Six Months			One Year			Five Years			Ten Years			Ratio2
Investor Class Shares3	Maximum 3% Initial Sales Charge	With sales charges		–3	.48%		1	.32%		5	.24%		4	.82%		1	.15%
		Excluding sales charges		–0	.49		4	.45		5	.88		5	.14		1	.15
Class A Shares4	Maximum 3% Initial Sales Charge	With sales charges		–3	.42		1	.39		5	.31		4	.86		0	.80
		Excluding sales charges		–0	.43		4	.52		5	.95		5	.18		0	.80
Class I Shares	No Sales Charge			–0	.25		4	.89		6	.35		5	.52		0	.55

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Performance figures for Class A shares, first offered on January 2, 2004, includes the historical performance of Class I shares through January 1, 2004, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class A shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
Barclays Capital U.S. Aggregate Bond Index5		0	.02%		5	.36%		6	.33%		5	.74%
Average Lipper Intermediate Investment Grade Debt Fund6		0	.78		6	.16		5	.84		5	.31

5.

The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. The Barclays Capital U.S. Aggregate Bond Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an Index.

6.

The average Lipper intermediate investment grade debt fund is representative of funds that invest primarily in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of five to ten years. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Indexed Bond Fund

Cost in Dollars of a $1,000 Investment in MainStay Indexed Bond Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	995.10	$	4.55	$	1,020.20	$	4.61
Class A Shares	$	1,000.00	$	995.70	$	3.91	$	1,020.90	$	3.96
Class I Shares	$	1,000.00	$	997.50	$	2.13	$	1,022.70	$	2.16

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.92% for Investor Class, 0.79% for Class A and 0.43% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Portfolio Composition as of April 30, 2011 (Unaudited)

U.S. Government & Federal Agencies	71.50
Corporate Bonds	17.90
Yankee Bonds	5.10
Mortgage-Backed Securities	2.50
Foreign Government Bonds	1.70
Short-Term Investments	1.60
Municipal Bonds	0.40
Asset-Backed Securities	0.40
Other Assets, Less Liabilities	(-1.1	)

See Portfolio of Investments beginning on page 10 for specific holdings within these categories.

Top Ten Issuers Held as of April 30, 2011 (excluding short-term investments)

1.	United States Treasury Notes, 0.50%–3.625%, due 4/15/13–2/15/21
2.	Federal National Mortgage Association (Mortgage Pass-Through Securities), 3.168%–8.00%, due 6/1/11–3/1/41
3.	Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities), 3.50%–8.00%, due 6/1/11–4/1/41
4.	Government National Mortgage Association (Mortgage Pass–Through Securities), 4.00%–8.50%, due 9/15/11–3/20/41
5.	United States Treasury Bonds, 3.875%–6.75%, due 8/15/26–2/15/41
6.	Federal Home Loan Mortgage Corporation, 1.00%–5.125%, due 9/21/12–3/27/19
7.	Federal National Mortgage Association, 1.05%–6.21%, due 5/18/12–8/6/38
8.	JPMorgan Chase Commercial Mortgage Securities Corp., 4.879%–5.915%, due 1/12/38–2/12/49
9.	General Electric Capital Corp., 2.10%–6.75%, due 6/15/12–1/14/38
10.	Citigroup, Inc., 4.70%–6.375%, due 8/12/14–2/22/33

8    MainStay Indexed Bond Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Donald F. Serek and Thomas J. Girard of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Indexed Bond Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Indexed Bond Fund returned –0.49% for Investor Class shares and –0.43% for Class A shares for the six months ended April 30, 2011. Over the same period, Class I shares returned –0.25%. All share classes underperformed the 0.78% return of the average Lipper² intermediate investment grade debt fund for the six months ended April 30, 2011. All share classes also underperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index³ for the reporting period. The Barclays Capital U.S. Aggregate Bond Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund employs a passive strategy that attempts to replicate the return of its benchmark. Because the Fund incurs operating expenses that the Barclays Capital U.S. Aggregate Bond Index does not, the Fund’s performance will typically lag that of the Index.

During the reporting period, which credit-rating categories were strong performers and which credit-rating categories were weak?

During the reporting period, bonds with higher levels of risk generally outperformed bonds with lower levels of risk. As a result, bonds rated BBB⁴ were the best-performing rating category in the Barclays Capital U.S. Aggregate Bond Index, followed by bonds rated A and AA. The worst-performing rating category was bonds rated AAA.

Which market sectors provided the strongest contributions to the Fund’s performance and which market sectors detracted the most?

All spread sectors (sectors other than U.S. Treasury securities) in the Barclays Capital U.S. Aggregate Bond Index generated positive total returns during the reporting period. Commercial mortgage-backed securities (CMBS) was the best-performing sector, returning more than 500 basis points in excess of comparable U.S. Treasury issues. (A basis point is one hundredth of a percentage point.)

Corporate bonds were the second-best-performing sector in the Barclays Capital U.S. Aggregate Bond Index. Mortgage-backed securities, asset-backed securities and agency securities also provided positive, though lower, excess returns during the reporting period.

Treasury rates rose during the reporting period, leading to a negative total return for the U.S. Treasury component of the Barclays Capital U.S. Aggregate Bond Index. Tighter spreads across other asset classes, however, offset that negative factor, leaving the benchmark in positive territory for the six months ended April 30, 2011.

 
1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.
2. See footnote on page 6 for more information on Lipper Inc.
3. See footnote on page 6 for more information on the Barclays Capital U.S. Aggregate Bond Index.
4. Debt rated AAA has the highest rating assigned by Standard & Poor’s, and in the opinion of Standard & Poor’s, the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. Debt rated AA by Standard & Poor’s is deemed by Standard & Poor’s to differ from the highest-rated issues only to a small degree. In the opinion of Standard & Poor’s, the obligor’s capacity to meet its financial commitment on the obligation is very strong. Debt rated A by Standard & Poor’s is deemed by Standard & Poor’s to be somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher-rated categories. In the opinion of Standard & Poor’s, however, the obligor’s capacity to meet its financial commitment on the obligation is still strong. Debt rated BBB by Standard & Poor’s is deemed by Standard & Poor’s to exhibit adequate protection parameters. It is the opinion of Standard & Poor’s, however, that adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    9

Portfolio of Investments^†††April 30, 2011 (unaudited)

	Principal
	Amount		Value
Long-Term Bonds 99.4%† Asset-Backed Securities 0.4%
Airlines 0.0%‡
Continental Airlines, Inc. Series 1992-2, Class A1 7.256%, due 3/15/20	$	54,778	$	58,613
Automobile 0.2%
Nissan Auto Lease Trust Series 2010-B, Class A3 1.12%, due 12/15/13		1,000,000		1,003,966
Home Equity 0.1%
Citicorp Residential Mortgage Securities, Inc. Series 2006-3, Class A3 5.61%, due 11/25/36 (a)		160,799		161,045
Equity One ABS, Inc. Series 2003-4, Class AF6 4.833%, due 10/25/34 (a)		226,016		229,842
Residential Asset Mortgage Products, Inc. Series 2003-RZ5, Class A7 4.97%, due 9/25/33 (a)		145,156		147,401
Saxon Asset Securities Trust Series 2003-1, Class AF5 5.455%, due 6/25/33 (a)		96,707		88,519
				626,807
Student Loans 0.1%
JPMorgan Mortgage Acquisition Corp. Series 2007-HE1, Class AF3 5.876%, due 3/25/47 (a)(b)		500,000		326,716
Total Asset-Backed Securities (Cost $2,173,359)				2,016,102
Corporate Bonds 17.9%
Aerospace & Defense 0.5%
Boeing Co. (The) 6.125%, due 2/15/33		250,000		284,517
General Dynamics Corp. 4.25%, due 5/15/13		350,000		374,506
Goodrich Corp. 7.00%, due 4/15/38		50,000		57,598
L-3 Communications Corp. 5.20%, due 10/15/19		100,000		105,685
Lockheed Martin Corp. 4.25%, due 11/15/19		500,000		509,774
Northrop Grumman Corp. 1.85%, due 11/15/15		400,000		387,576
5.05%, due 8/1/19		100,000		107,159
United Technologies Corp.
4.50%, due 4/15/20		250,000		262,576
4.875%, due 5/1/15		200,000		222,279
6.125%, due 2/1/19		250,000		292,420
				2,604,090
Agriculture 0.2%
Archer-Daniels-Midland Co. 5.45%, due 3/15/18		100,000		112,519
6.45%, due 1/15/38		200,000		232,004
Bunge Limited Finance Corp. 5.35%, due 4/15/14		100,000		107,814
Philip Morris International, Inc. 5.65%, due 5/16/18		325,000		367,182
				819,519
Apparel 0.0%‡
VF Corp. 6.45%, due 11/1/37		50,000		57,197
Auto Manufacturers 0.1%
DaimlerChrysler N.A. Holding Corp. 8.50%, due 1/18/31		300,000		410,107
Auto Parts & Equipment 0.0%‡
Johnson Controls, Inc. 5.50%, due 1/15/16		50,000		55,831
6.00%, due 1/15/36		50,000		52,654
				108,485
Banks 3.7%
Bank of America Corp. 3.625%, due 3/17/16		1,200,000		1,206,095
4.75%, due 8/1/15		250,000		264,563
5.25%, due 12/1/15		200,000		212,553
5.42%, due 3/15/17		1,100,000		1,146,964
5.625%, due 10/14/16		100,000		108,404
5.65%, due 5/1/18		325,000		346,141
Bank of New York Mellon Corp. (The) 2.95%, due 6/18/15		250,000		257,251
BB&T Corp. 3.375%, due 9/25/13		650,000		680,297
Branch Banking & Trust Co. 4.875%, due 1/15/13		100,000		105,507

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest issuers held, as of April 30, 2011, excluding short-term investments. May be subject to change daily.

10    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Corporate Bonds (continued)
Banks (continued)
X  Citigroup, Inc. 4.70%, due 5/29/15	$	300,000	$	317,030
4.875%, due 5/7/15		350,000		367,244
5.50%, due 10/15/14		1,000,000		1,090,368
5.875%, due 2/22/33		600,000		581,471
6.125%, due 11/21/17		1,000,000		1,108,799
6.375%, due 8/12/14		300,000		335,180
Fifth Third Bank 4.75%, due 2/1/15		250,000		265,539
Goldman Sachs Group, Inc. (The) 5.15%, due 1/15/14		625,000		674,472
5.35%, due 1/15/16		350,000		379,539
5.95%, due 1/18/18		1,000,000		1,094,510
6.00%, due 6/15/20		500,000		541,088
6.25%, due 9/1/17		350,000		389,597
HSBC Bank USA N.A. 4.625%, due 4/1/14		925,000		990,165
JPMorgan Chase & Co. 4.40%, due 7/22/20		1,000,000		987,836
5.15%, due 10/1/15		500,000		542,040
JPMorgan Chase Bank N.A. 6.00%, due 10/1/17		785,000		875,620
KeyBank N.A. 5.80%, due 7/1/14		375,000		412,244
Marshall & Ilsley Bank 5.00%, due 1/17/17		150,000		159,900
Mercantile Bankshares Corp. Series B 4.625%, due 4/15/13		100,000		105,943
Morgan Stanley
Series E 5.45%, due 1/9/17		425,000		455,138
5.50%, due 7/24/20		1,100,000		1,123,727
6.25%, due 8/28/17		310,000		342,691
Northern Trust Corp. 3.45%, due 11/4/20		100,000		96,843
PNC Bank N.A. 5.25%, due 1/15/17		175,000		189,443
PNC Funding Corp. 3.625%, due 2/8/15		150,000		157,107
5.125%, due 2/8/20		100,000		106,867
Sanwa Bank, Ltd. 7.40%, due 6/15/11		100,000		100,763
State Street Bank & Trust Co. 5.25%, due 10/15/18		100,000		110,547
SunTrust Banks, Inc. 5.40%, due 4/1/20		15,000		15,430
U.S. Bancorp 2.875%, due 11/20/14		300,000		311,977
U.S. Bank N.A. 4.80%, due 4/15/15		100,000		109,046
UBS A.G. 7.75%, due 9/1/26		100,000		120,733
Wachovia Bank N.A. 4.875%, due 2/1/15		575,000		620,674
5.00%, due 8/15/15		50,000		53,975
5.60%, due 3/15/16		200,000		219,988
6.60%, due 1/15/38		300,000		343,365
Wachovia Corp. 5.25%, due 8/1/14		100,000		108,452
5.50%, due 8/1/35		125,000		122,974
Wells Fargo & Co. 3.75%, due 10/1/14		250,000		264,677
Wells Fargo Bank N.A. 5.75%, due 5/16/16		350,000		390,115
5.95%, due 8/26/36		150,000		157,534
				21,068,426
Beverages 0.3%
Anheuser-Busch Cos., Inc. 6.45%, due 9/1/37		250,000		287,019
Coca-Cola Co. (The) 3.15%, due 11/15/20		550,000		522,481
Dr. Pepper Snapple Group, Inc. 2.35%, due 12/21/12		200,000		204,325
6.12%, due 5/1/13		100,000		109,254
Pepsi Bottling Group, Inc. 7.00%, due 3/1/29		60,000		75,106
PepsiCo., Inc. 5.00%, due 6/1/18		500,000		551,568
				1,749,753
Biotechnology 0.1%
Amgen, Inc. 3.45%, due 10/1/20		150,000		142,787
4.85%, due 11/18/14		100,000		111,024
5.85%, due 6/1/17		150,000		173,034
6.40%, due 2/1/39		100,000		112,411
Genentech, Inc. 4.75%, due 7/15/15		100,000		109,578
				648,834
Building Materials 0.0%‡
CRH America, Inc. 4.125%, due 1/15/16		100,000		102,069
6.00%, due 9/30/16		100,000		110,239
				212,308
Chemicals 0.3%
Air Products & Chemicals, Inc. 4.15%, due 2/1/13		100,000		104,316

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Corporate Bonds (continued)
Chemicals (continued)
Dow Chemical Co. (The) 2.50%, due 2/15/16	$	250,000	$	244,903
E.I. du Pont de Nemours & Co. 3.625%, due 1/15/21		50,000		48,308
4.625%, due 1/15/20		200,000		209,995
4.75%, due 11/15/12		280,000		296,659
Eastman Chemical Co. 4.50%, due 1/15/21		50,000		49,685
Lubrizol Corp. 5.50%, due 10/1/14		100,000		112,178
PPG Industries, Inc. 5.75%, due 3/15/13		100,000		107,932
Praxair, Inc. 3.95%, due 6/1/13		200,000		212,369
Rohm & Haas Co. 7.85%, due 7/15/29		100,000		121,311
Valspar Corp. 5.625%, due 5/1/12		250,000		258,819
				1,766,475
Commercial Services 0.1%
McKesson Corp. 5.70%, due 3/1/17		50,000		56,115
R.R. Donnelley & Sons Co. 5.50%, due 5/15/15		100,000		105,379
Science Applications International Corp. 6.25%, due 7/1/12		100,000		105,725
Western Union Co. (The) 5.93%, due 10/1/16		130,000		146,310
				413,529
Computers 0.3%
Dell, Inc. 4.70%, due 4/15/13		175,000		186,699
Electronic Data Systems Corp. Series B 6.00%, due 8/1/13		100,000		110,716
Hewlett-Packard Co. 2.20%, due 12/1/15		150,000		148,964
International Business Machines Corp. 5.70%, due 9/14/17		700,000		806,269
5.875%, due 11/29/32		100,000		111,606
6.50%, due 1/15/28		100,000		119,623
7.50%, due 6/15/13		100,000		113,511
8.375%, due 11/1/19		100,000		132,939
				1,730,327
Cosmetics & Personal Care 0.1%
Colgate-Palmolive Co. 3.15%, due 8/5/15		100,000		104,506
Procter & Gamble Co. (The) 4.70%, due 2/15/19		250,000		272,255
4.85%, due 12/15/15		75,000		83,685
5.55%, due 3/5/37		100,000		109,150
5.80%, due 8/15/34		75,000		84,081
				653,677
Diversified Financial Services 1.2%
Citigroup Funding, Inc. 1.875%, due 11/15/12 (c)		1,500,000		1,531,410
X  General Electric Capital Corp. 2.10%, due 1/7/14		100,000		101,070
2.625%, due 12/28/12 (c)		1,500,000		1,551,376
5.00%, due 1/8/16		375,000		410,114
5.40%, due 2/15/17		200,000		219,691
5.875%, due 1/14/38		525,000		530,976
6.00%, due 6/15/12		625,000		660,900
Series A
6.75%, due 3/15/32		650,000		733,468
HSBC Finance Corp. 6.676%, due 1/15/21 (d)		951,000		1,009,343
Toyota Motor Credit Corp. 2.80%, due 1/11/16		200,000		201,926
				6,950,274
Electric 1.6%
Alabama Power Co. 5.55%, due 2/1/17		50,000		55,879
Alliant Energy Corp. 4.00%, due 10/15/14		100,000		104,738
Appalachian Power Co. Series H 5.95%, due 5/15/33		100,000		101,613
Arizona Public Service Co. 6.375%, due 10/15/11		100,000		102,469
Baltimore Gas & Electric Co. 6.125%, due 7/1/13		100,000		110,070
CenterPoint Energy Houston Electric LLC Series K2 6.95%, due 3/15/33		100,000		118,747
Commonwealth Edison Co. 6.15%, due 9/15/17		300,000		345,265
Consolidated Edison Co. of New York, Inc. 6.20%, due 6/15/36		100,000		111,379
6.30%, due 8/15/37		225,000		256,030
Constellation Energy Group, Inc. 7.60%, due 4/1/32		100,000		118,390
Consumers Energy Co. Series B 5.375%, due 4/15/13		300,000		323,591

12    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Corporate Bonds (continued)
Electric (continued)
Detroit Edison Co. (The) 6.40%, due 10/1/13	$	275,000	$	307,635
Dominion Resources, Inc. 5.15%, due 7/15/15		100,000		110,346
Duke Energy Carolinas LLC 5.30%, due 2/15/40		150,000		150,894
6.00%, due 1/15/38		200,000		219,282
Entergy Gulf States Louisiana LLC 3.95%, due 10/1/20		250,000		236,833
Entergy Mississippi, Inc. 5.15%, due 2/1/13		75,000		78,530
FirstEnergy Corp.
Series B 6.45%, due 11/15/11		11,000		11,297
Series C 7.375%, due 11/15/31		200,000		222,128
Florida Power & Light Co. 5.55%, due 11/1/17		100,000		115,995
5.95%, due 10/1/33		100,000		109,586
Florida Power Corp. 6.35%, due 9/15/37		150,000		170,615
Georgia Power Co. 4.75%, due 9/1/40		150,000		137,385
5.65%, due 3/1/37		100,000		102,479
Indiana Michigan Power Co. 7.00%, due 3/15/19		50,000		59,191
Jersey Central Power & Light Co. 7.35%, due 2/1/19		35,000		42,278
Kansas City Power & Light Co. 6.50%, due 11/15/11		50,000		51,229
Kentucky Utilities Co. 1.625%, due 11/1/15 (d)		100,000		96,160
MidAmerican Energy Holdings Co. 5.875%, due 10/1/12		100,000		106,620
Nevada Power Co. 6.50%, due 4/15/12		50,000		52,697
6.50%, due 8/1/18		150,000		173,395
NextEra Energy Capital Holdings, Inc. 2.60%, due 9/1/15		300,000		297,385
NiSource Finance Corp. 6.15%, due 3/1/13		175,000		189,619
Ohio Power Co.
Series K 6.00%, due 6/1/16		50,000		56,797
Series G 6.60%, due 2/15/33		150,000		167,327
Oncor Electric Delivery Co. LLC 5.00%, due 9/30/17 (d)		100,000		106,850
7.00%, due 9/1/22		100,000		117,820
Pacific Gas & Electric Co. 5.625%, due 11/30/17		750,000		843,530
PacifiCorp 6.25%, due 10/15/37		300,000		337,091
Peco Energy Co. 5.95%, due 10/1/36		100,000		107,274
Pepco Holdings, Inc. 2.70%, due 10/1/15		200,000		198,886
PPL Energy Supply LLC 5.40%, due 8/15/14		100,000		108,565
Progress Energy, Inc. 5.625%, due 1/15/16		250,000		281,047
PSE&G Power LLC 5.125%, due 4/15/20		80,000		83,187
8.625%, due 4/15/31		50,000		63,504
PSI Energy, Inc. 5.00%, due 9/15/13		100,000		108,284
Public Service Electric & Gas Co. Series D 5.25%, due 7/1/35		50,000		49,530
Puget Sound Energy, Inc. 6.274%, due 3/15/37		100,000		109,593
San Diego Gas & Electric Co. 5.35%, due 5/15/35		175,000		178,841
South Carolina Electric & Gas Co. 6.05%, due 1/15/38		100,000		108,841
6.50%, due 11/1/18		90,000		105,733
Southern California Edison Co. 4.50%, due 9/1/40		175,000		155,721
6.00%, due 1/15/34		100,000		109,603
Union Electric Co. 4.65%, due 10/1/13		100,000		107,243
5.40%, due 2/1/16		100,000		110,366
Virginia Electric and Power Co. 5.00%, due 6/30/19		120,000		129,166
6.00%, due 1/15/36		100,000		109,001
6.00%, due 5/15/37		125,000		136,547
Xcel Energy, Inc. 6.50%, due 7/1/36		200,000		225,020
				9,005,117
Electrical Components & Equipment 0.1%
Cooper Industries, Inc. 5.25%, due 11/15/12		50,000		53,330
Emerson Electric Co. 4.25%, due 11/15/20		400,000		415,249
				468,579
Electronics 0.0%‡
Thermo Fisher Scientific, Inc. 3.20%, due 3/1/16		100,000		102,542

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Corporate Bonds (continued)
Environmental Controls 0.1%
Republic Services, Inc. 5.00%, due 3/1/20	$	300,000	$	315,336
Waste Management, Inc. 5.00%, due 3/15/14		50,000		54,247
7.125%, due 12/15/17		100,000		117,501
7.75%, due 5/15/32		75,000		93,914
				580,998
Finance—Commercial 0.1%
Caterpillar Financial Services Corp. 6.20%, due 9/30/13		250,000		279,622
Finance—Consumer Loans 0.1%
American General Finance Corp. Series I 5.40%, due 12/1/15		350,000		329,000
SLM Corp. 5.625%, due 8/1/33		250,000		218,626
				547,626
Finance—Credit Card 0.4%
American Express Co. 5.50%, due 9/12/16		75,000		83,426
6.15%, due 8/28/17		525,000		596,310
American Express Credit Corp. 7.30%, due 8/20/13		600,000		674,068
Capital One Bank USA N.A. 5.125%, due 2/15/14		100,000		109,563
8.80%, due 7/15/19		500,000		640,345
Capital One Financial Corp. 5.25%, due 2/21/17		100,000		108,317
				2,212,029
Finance—Investment Banker/Broker 0.4%
Bear Stearns Cos., Inc. (The) 7.25%, due 2/1/18		400,000		469,978
Credit Suisse First Boston USA, Inc. 4.875%, due 1/15/15		875,000		952,263
5.125%, due 1/15/14		100,000		109,050
Merrill Lynch & Co., Inc. 5.70%, due 5/2/17		100,000		104,668
6.40%, due 8/28/17		400,000		445,856
				2,081,815
Finance—Mortgage Loan/Banker 0.0%‡
Countrywide Financial Corp. 6.25%, due 5/15/16		200,000		216,410
Finance—Other Services 0.1%
Mellon Funding Corp. 5.00%, due 12/1/14		250,000		274,371
National Rural Utilities Cooperative Finance Corp. 1.90%, due 11/1/15		50,000		48,973
5.45%, due 2/1/18		150,000		166,500
8.00%, due 3/1/32		75,000		97,967
				587,811
Food 0.6%
Campbell Soup Co. 4.50%, due 2/15/19		250,000		265,137
4.875%, due 10/1/13		100,000		109,096
ConAgra Foods, Inc. 7.00%, due 10/1/28		100,000		108,774
Corn Products International, Inc. 4.625%, due 11/1/20		50,000		50,095
General Mills, Inc. 5.70%, due 2/15/17		250,000		284,222
Hershey Co. (The) 5.45%, due 9/1/16		100,000		113,972
Kellogg Co. Series B 7.45%, due 4/1/31		150,000		189,577
Kraft Foods, Inc. 4.125%, due 2/9/16		500,000		525,232
5.25%, due 10/1/13		100,000		108,960
5.375%, due 2/10/20		250,000		270,578
6.125%, due 2/1/18		250,000		283,763
6.50%, due 8/11/17		225,000		260,979
Kroger Co. (The) 5.50%, due 2/1/13		250,000		267,635
6.40%, due 8/15/17		175,000		203,938
Safeway, Inc. 5.00%, due 8/15/19		100,000		103,586
6.35%, due 8/15/17		100,000		113,419
Sysco Corp. 5.375%, due 9/21/35		100,000		104,897
Unilever Capital Corp. 5.90%, due 11/15/32		100,000		111,514
				3,475,374
Forest Products & Paper 0.1%
International Paper Co. 5.25%, due 4/1/16		100,000		108,861
5.30%, due 4/1/15		250,000		274,051
				382,912
Gas 0.0%‡
AGL Capital Corp. 4.45%, due 4/15/13		100,000		105,670

14    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Corporate Bonds (continued)
Gas (continued)
Sempra Energy 6.00%, due 2/1/13	$	100,000	$	107,036
				212,706
Hand & Machine Tools 0.0%‡
Black & Decker Corp. 4.75%, due 11/1/14		50,000		54,361
Health Care—Products 0.2%
Baxter International, Inc. 4.625%, due 3/15/15		50,000		54,831
5.90%, due 9/1/16		100,000		116,519
CareFusion Corp. 5.125%, due 8/1/14		100,000		108,775
Johnson & Johnson 5.15%, due 7/15/18		250,000		282,187
6.95%, due 9/1/29		100,000		126,144
Medtronic, Inc. 4.45%, due 3/15/20		100,000		103,553
Series B 4.75%, due 9/15/15		50,000		55,189
St. Jude Medical, Inc. 3.75%, due 7/15/14		150,000		158,838
				1,006,036
Health Care—Services 0.2%
Aetna, Inc. 6.00%, due 6/15/16		175,000		199,746
CIGNA Corp. 5.125%, due 6/15/20		150,000		158,095
Laboratory Corp. of America Holdings 4.625%, due 11/15/20		100,000		101,113
Quest Diagnostics, Inc. 4.75%, due 1/30/20		100,000		102,437
UnitedHealth Group, Inc. 5.375%, due 3/15/16		100,000		111,678
6.00%, due 6/15/17		330,000		374,013
WellPoint, Inc. 5.95%, due 12/15/34		250,000		256,071
				1,303,153
Home Builders 0.0%‡
MDC Holdings, Inc. 5.375%, due 7/1/15		50,000		51,716
Toll Brothers Finance Corp. 5.15%, due 5/15/15		50,000		51,482
				103,198
Household Products & Wares 0.1%
Clorox Co. (The) 5.00%, due 1/15/15		50,000		54,516
Fortune Brands, Inc. 5.375%, due 1/15/16		100,000		107,022
Kimberly-Clark Corp. 6.375%, due 1/1/28		100,000		113,581
6.625%, due 8/1/37		100,000		120,759
				395,878
Housewares 0.0%‡
Newell Rubbermaid, Inc. 6.75%, due 3/15/12		50,000		52,454
Insurance 1.0%
ACE INA Holdings, Inc. 2.60%, due 11/23/15		100,000		98,795
5.70%, due 2/15/17		60,000		66,908
5.875%, due 6/15/14		105,000		117,602
Aegon Funding Corp. 5.75%, due 12/15/20		100,000		106,175
Allstate Corp. (The) 5.00%, due 8/15/14		425,000		468,520
American International Group, Inc. 5.85%, due 1/16/18		300,000		317,015
6.25%, due 5/1/36		200,000		204,937
Aon Corp. 7.375%, due 12/14/12		100,000		109,067
Assurant, Inc. 5.625%, due 2/15/14		100,000		106,869
Berkshire Hathaway Finance Corp. 4.85%, due 1/15/15		400,000		441,283
5.00%, due 8/15/13		500,000		543,360
Chubb Corp. 5.20%, due 4/1/13		100,000		107,597
5.75%, due 5/15/18		100,000		113,007
Genworth Financial, Inc. Class A 4.95%, due 10/1/15		75,000		76,687
5.75%, due 6/15/14		50,000		52,078
Hartford Financial Services Group, Inc. (The) 5.50%, due 3/30/20		150,000		156,016
Lincoln National Corp. 4.75%, due 2/15/14		150,000		158,671
Marsh & McLennan Cos., Inc. 5.375%, due 7/15/14		100,000		108,924
MetLife Global Funding I 5.125%, due 6/10/14 (d)		220,000		240,564
MetLife, Inc. 4.75%, due 2/8/21		300,000		305,852
5.70%, due 6/15/35		100,000		101,789

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Corporate Bonds (continued)
Insurance (continued)
Metropolitan Life Global Funding I 3.125%, due 1/11/16 (d)	$	100,000	$	100,252
Nationwide Financial Services, Inc. 5.10%, due 10/1/15		25,000		26,349
Pricoa Global Funding I 4.625%, due 6/25/12 (d)		100,000		103,573
Principal Financial Group, Inc. 6.05%, due 10/15/36		100,000		105,082
Progressive Corp. (The) 6.25%, due 12/1/32		50,000		54,277
Protective Life Corp. 4.875%, due 11/1/14		100,000		106,973
Prudential Financial, Inc. Series B 5.10%, due 9/20/14		250,000		272,098
5.70%, due 12/14/36		200,000		199,452
St. Paul Travelers Cos., Inc. (The) 5.50%, due 12/1/15		100,000		111,914
6.75%, due 6/20/36		75,000		86,423
Travelers Cos., Inc. (The) 5.375%, due 6/15/12		100,000		104,242
Travelers Property Casualty Corp. 5.00%, due 3/15/13		100,000		107,013
				5,379,364
Internet 0.0%‡
Symantec Corp. 2.75%, due 9/15/15		50,000		49,210
Iron & Steel 0.1%
Nucor Corp. 4.125%, due 9/15/22		50,000		49,130
5.00%, due 12/1/12		245,000		260,165
				309,295
Lodging 0.0%‡
Marriott International, Inc. 5.625%, due 2/15/13		50,000		53,549
Wyndham Worldwide Corp. 6.00%, due 12/1/16		50,000		53,519
				107,068
Machinery—Construction & Mining 0.1%
Caterpillar, Inc. 6.05%, due 8/15/36		313,000		356,896
Machinery—Diversified 0.1%
Deere & Co. 4.375%, due 10/16/19		100,000		105,229
7.125%, due 3/3/31		125,000		158,345
				263,574
Media 1.0%
Comcast Corp. 4.95%, due 6/15/16		100,000		108,462
5.65%, due 6/15/35		200,000		194,122
5.875%, due 2/15/18		525,000		585,658
6.45%, due 3/15/37		250,000		265,379
Cox Communications, Inc. 5.45%, due 12/15/14		100,000		111,458
7.125%, due 10/1/12		200,000		216,386
DIRECTV Holdings LLC 5.20%, due 3/15/20		250,000		262,345
Discovery Communications LLC 3.70%, due 6/1/15		100,000		104,383
6.35%, due 6/1/40		105,000		111,071
Historic TW, Inc. 6.625%, due 5/15/29		250,000		272,605
NBC Universal, Inc. 5.15%, due 4/30/20 (d)		500,000		522,304
News America, Inc. 5.30%, due 12/15/14		300,000		334,469
6.40%, due 12/15/35		175,000		184,627
7.25%, due 5/18/18		100,000		121,018
Time Warner Cable, Inc. 6.20%, due 7/1/13		500,000		550,580
6.55%, due 5/1/37		275,000		290,324
6.75%, due 7/1/18		250,000		287,926
Time Warner Cos., Inc. 6.95%, due 1/15/28		200,000		224,160
Time Warner, Inc. 7.625%, due 4/15/31		375,000		449,798
Viacom, Inc. 5.625%, due 8/15/12		18,000		18,950
6.875%, due 4/30/36		250,000		279,918
				5,495,943
Mining 0.1%
Alcoa, Inc. 5.72%, due 2/23/19		187,000		198,157
5.95%, due 2/1/37		100,000		98,181
Newmont Mining Corp. 5.125%, due 10/1/19		150,000		162,389
Vulcan Materials Co. 6.30%, due 6/15/13		150,000		159,122
				617,849

16    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Corporate Bonds (continued)
Miscellaneous—Manufacturing 0.3%
3M Co. 5.70%, due 3/15/37	$	150,000	$	165,628
Cooper US, Inc. 2.375%, due 12/15/16		125,000		124,363
Danaher Corp. 5.625%, due 1/15/18		100,000		112,544
Dover Corp. 5.45%, due 3/15/18		100,000		112,129
General Electric Co. 5.25%, due 12/6/17		500,000		553,607
Honeywell International, Inc. 5.30%, due 3/1/18		250,000		280,532
5.70%, due 3/15/37		100,000		108,257
ITT Corp. 4.90%, due 5/1/14		250,000		270,245
				1,727,305
Office Equipment/Supplies 0.1%
Pitney Bowes, Inc. 5.75%, due 9/15/17		100,000		109,119
Xerox Corp. 6.35%, due 5/15/18		100,000		113,968
6.40%, due 3/15/16		160,000		182,924
				406,011
Oil & Gas 0.6%
Amerada Hess Corp. 7.30%, due 8/15/31		100,000		120,167
Anadarko Petroleum Corp. 5.95%, due 9/15/16		325,000		363,021
6.45%, due 9/15/36		150,000		154,553
Apache Corp. 5.10%, due 9/1/40		150,000		143,828
Burlington Resources, Inc. 7.375%, due 3/1/29		104,000		123,067
Chevron Corp. 4.95%, due 3/3/19		250,000		277,547
ConocoPhillips 5.75%, due 2/1/19		250,000		286,618
5.90%, due 10/15/32		250,000		271,774
Devon Energy Corp. 5.625%, due 1/15/14		100,000		111,008
7.95%, due 4/15/32		50,000		65,951
EOG Resources, Inc. 4.10%, due 2/1/21		200,000		196,880
Marathon Oil Corp. 6.00%, due 10/1/17		100,000		114,050
6.80%, due 3/15/32		100,000		112,393
Marathon Petroleum Corp. 3.50%, due 3/1/16 (d)		50,000		50,663
Occidental Petroleum Corp. 4.125%, due 6/1/16		250,000		268,744
Pemex Project Funding Master Trust 6.625%, due 6/15/35		425,000		431,437
Valero Energy Corp. 4.50%, due 2/1/15		175,000		186,593
6.625%, due 6/15/37		100,000		105,187
7.50%, due 4/15/32		100,000		114,485
XTO Energy, Inc. 4.90%, due 2/1/14		75,000		82,238
				3,580,204
Oil & Gas Services 0.1%
Baker Hughes, Inc. 5.125%, due 9/15/40		200,000		193,936
Halliburton Co. 6.15%, due 9/15/19		250,000		290,383
Weatherford International, Inc. 6.35%, due 6/15/17		225,000		255,465
				739,784
Pharmaceuticals 0.7%
Abbott Laboratories 5.875%, due 5/15/16		200,000		231,644
6.15%, due 11/30/37		225,000		253,129
Allergan, Inc. 5.75%, due 4/1/16		50,000		57,113
Bristol-Myers Squibb Co. 5.45%, due 5/1/18		100,000		112,174
5.875%, due 11/15/36		150,000		165,121
7.15%, due 6/15/23		50,000		62,802
Cardinal Health, Inc. 4.00%, due 6/15/15		150,000		156,263
5.50%, due 6/15/13		50,000		53,957
Eli Lilly & Co. 4.50%, due 3/15/18		100,000		106,517
7.125%, due 6/1/25		100,000		126,098
GlaxoSmithKline Capital, Inc. 4.375%, due 4/15/14		200,000		217,020
6.375%, due 5/15/38		250,000		286,003
Mead Johnson Nutrition Co. 3.50%, due 11/1/14		250,000		262,032
Medco Health Solutions, Inc. 2.75%, due 9/15/15		200,000		199,996
Merck & Co., Inc. 4.75%, due 3/1/15		100,000		110,552
5.00%, due 6/30/19		250,000		273,822
Novartis Capital Corp. 4.125%, due 2/10/14		100,000		107,467
Pfizer, Inc. 6.20%, due 3/15/19		650,000		757,743

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Corporate Bonds (continued)
Pharmaceuticals (continued)
Schering-Plough Corp. 6.50%, due 12/1/33	$	100,000	$	119,107
Teva Pharmaceutical Finance LLC 6.15%, due 2/1/36		50,000		55,454
Wyeth 5.50%, due 3/15/13		100,000		108,460
6.00%, due 2/15/36		200,000		218,003
6.45%, due 2/1/24		100,000		118,104
				4,158,581
Pipelines 0.4%
Duke Capital LLC 6.75%, due 2/15/32		125,000		137,328
Energy Transfer Partners, L.P. 5.95%, due 2/1/15		130,000		144,069
6.70%, due 7/1/18		100,000		115,152
Enterprise Products Operating LLC 3.20%, due 2/1/16		100,000		100,918
Enterprise Products Operating, L.P. Series B 6.875%, due 3/1/33		200,000		222,684
Kinder Morgan Energy Partners, L.P. 5.00%, due 12/15/13		150,000		163,054
5.80%, due 3/15/35		250,000		245,544
ONEOK Partners, L.P. 6.15%, due 10/1/16		200,000		227,856
Plains All American Pipeline, L.P./PAA Finance Corp. 6.65%, due 1/15/37		65,000		70,944
Spectra Energy Capital LLC 6.20%, due 4/15/18		50,000		56,245
Tennessee Gas Pipeline Co. 7.50%, due 4/1/17		300,000		359,374
Williams Cos., Inc. 8.75%, due 3/15/32		185,000		243,225
Williams Partners, L.P. 3.80%, due 2/15/15		300,000		314,143
				2,400,536
Real Estate 0.0%‡
ERP Operating, L.P. 5.125%, due 3/15/16		50,000		54,239
5.375%, due 8/1/16		50,000		55,027
Regency Centers, L.P. 5.25%, due 8/1/15		100,000		107,620
				216,886
Real Estate Investment Trusts 0.2%
AvalonBay Communities, Inc. 4.95%, due 3/15/13		100,000		106,300
Boston Properties, Inc. 6.25%, due 1/15/13		24,000		25,946
Boston Properties, L.P. 4.125%, due 5/15/21		50,000		48,330
Camden Property Trust 5.00%, due 6/15/15		100,000		107,986
Hospitality Properties Trust 5.125%, due 2/15/15		50,000		52,536
Kimco Realty Corp. 5.783%, due 3/15/16		50,000		55,519
Liberty Property, L.P. 5.125%, due 3/2/15		100,000		108,180
ProLogis 6.625%, due 5/15/18		50,000		55,311
Simon Property Group, L.P. 5.25%, due 12/1/16		450,000		490,142
Weyerhaeuser Co. 6.75%, due 3/15/12		200,000		208,626
7.375%, due 3/15/32		100,000		107,883
				1,366,759
Retail 0.6%
Costco Wholesale Corp. 5.50%, due 3/15/17		100,000		115,418
CVS Caremark Corp. 4.75%, due 5/18/20		150,000		155,464
4.875%, due 9/15/14		50,000		54,865
6.25%, due 6/1/27		175,000		193,230
Home Depot, Inc. 5.40%, due 3/1/16		200,000		223,500
5.875%, due 12/16/36		250,000		254,481
Lowe’s Cos., Inc. 6.65%, due 9/15/37		100,000		116,053
6.875%, due 2/15/28		100,000		117,108
McDonald’s Corp. 5.80%, due 10/15/17		310,000		359,606
Target Corp. 6.00%, due 1/15/18		250,000		289,821
6.50%, due 10/15/37		150,000		172,046
Wal-Mart Stores, Inc. 1.50%, due 10/25/15		250,000		241,988
5.00%, due 10/25/40		225,000		212,428
5.375%, due 4/5/17		350,000		397,716
6.50%, due 8/15/37		350,000		402,059
Yum! Brands, Inc. 6.25%, due 3/15/18		130,000		147,987
				3,453,770

18    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Corporate Bonds (continued)
Software 0.3%
Microsoft Corp. 3.00%, due 10/1/20	$	200,000	$	188,196
4.20%, due 6/1/19		250,000		261,674
Oracle Corp. 5.00%, due 7/8/19		250,000		269,993
5.25%, due 1/15/16		650,000		730,573
				1,450,436
Telecommunications 0.8%
AT&T, Inc. 6.30%, due 1/15/38		300,000		316,458
6.80%, due 5/15/36		265,000		293,421
BellSouth Corp. 6.00%, due 11/15/34		100,000		100,387
6.875%, due 10/15/31		250,000		278,116
Cisco Systems, Inc. 4.45%, due 1/15/20		250,000		260,047
5.50%, due 2/22/16		425,000		483,554
Embarq Corp. 7.995%, due 6/1/36		200,000		216,623
Harris Corp. 5.00%, due 10/1/15		50,000		54,596
Motorola, Inc. 7.50%, due 5/15/25		100,000		116,198
New Cingular Wireless Services, Inc. 8.75%, due 3/1/31		100,000		140,160
SBC Communications, Inc. 5.10%, due 9/15/14		700,000		772,041
6.15%, due 9/15/34		250,000		257,237
Verizon Communications, Inc. 5.85%, due 9/15/35		300,000		307,501
6.10%, due 4/15/18		170,000		193,707
6.35%, due 4/1/19		250,000		289,172
6.40%, due 2/15/38		175,000		189,444
Verizon Global Funding Corp. 7.75%, due 12/1/30		350,000		433,054
				4,701,716
Textiles 0.0%‡
Cintas Corp. 6.00%, due 6/1/12		100,000		104,815
Transportation 0.4%
Burlington Northern Santa Fe LLC 4.70%, due 10/1/19		400,000		422,740
5.75%, due 5/1/40		300,000		309,478
6.15%, due 5/1/37		175,000		189,105
6.20%, due 8/15/36		50,000		54,240
CSX Corp. 5.60%, due 5/1/17		100,000		111,937
CSX Transportation, Inc. 7.875%, due 5/15/43		100,000		127,420
FedEx Corp. 8.00%, due 1/15/19		50,000		62,459
Norfolk Southern Corp. 7.05%, due 5/1/37		100,000		122,116
7.25%, due 2/15/31		100,000		123,764
Southwest Airlines Co. 5.25%, due 10/1/14		75,000		80,762
Union Pacific Corp. 5.375%, due 5/1/14		250,000		275,385
5.65%, due 5/1/17		100,000		113,014
7.00%, due 2/1/16		50,000		59,195
United Parcel Service, Inc. 5.50%, due 1/15/18		100,000		113,334
6.20%, due 1/15/38		200,000		227,412
				2,392,361
Trucking & Leasing 0.0%‡
TTX Co. 5.00%, due 4/1/12 (d)		100,000		102,575
Water 0.0%‡
American Water Capital Corp. 6.085%, due 10/15/17		100,000		113,732
Total Corporate Bonds (Cost $95,590,741)				101,756,292
Foreign Government Bonds 1.7%
Foreign Governments 1.7%
Export Development Canada 3.125%, due 4/24/14		250,000		264,499
Federal Republic of Brazil 6.00%, due 1/17/17		2,200,000		2,502,500
Malaysian Government 7.50%, due 7/15/11		100,000		101,103
Mexico Government International Bond 5.125%, due 1/15/20		1,500,000		1,585,500
Poland Government International Bond 5.125%, due 4/21/21		200,000		200,300
Province of British Columbia Canada 4.30%, due 5/30/13		250,000		268,090
Province of Manitoba Canada 2.125%, due 4/22/13		250,000		256,436
Province of Nova Scotia 2.375%, due 7/21/15		100,000		101,690
Province of Ontario 2.95%, due 2/5/15		250,000		261,543
4.00%, due 10/7/19		225,000		231,866
4.10%, due 6/16/14		350,000		378,995

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Foreign Government Bonds (continued)
Foreign Governments (continued)
Province of Ontario (continued)
4.375%, due 2/15/13	$	50,000	$	53,224
4.95%, due 11/28/16		300,000		337,223
Province of Quebec 5.125%, due 11/14/16		285,000		322,848
Series NJ 7.50%, due 7/15/23		302,000		396,439
Republic of Chile 5.50%, due 1/15/13		100,000		106,800
Republic of Italy 6.875%, due 9/27/23		750,000		862,539
Republic of Korea 5.75%, due 4/16/14		500,000		547,826
Republic of Poland 5.25%, due 1/15/14		100,000		107,297
Republic of South Africa 7.375%, due 4/25/12		100,000		106,250
United Mexican States 5.625%, due 1/15/17		800,000		892,000
Total Foreign Government Bonds (Cost $9,388,168)				9,884,968
Mortgage-Backed Securities 2.5%
Commercial Mortgage Loans (Collateralized Mortgage Obligations) 2.5%
Banc of America Commercial Mortgage, Inc. Series 2005-4, Class A3 4.891%, due 7/10/45		1,286,000		1,325,503
Bear Stearns Commercial Mortgage Securities Series 2007-PW15, Class AAB 5.315%, due 2/11/44		1,350,000		1,413,670
Credit Suisse Mortgage Capital Certificates Series 2006-C5, Class A3 5.311%, due 12/15/39		1,000,000		1,069,619
Greenwich Capital Commercial Funding Corp.
Series 2005-GG5, Class A5 5.224%, due 4/10/37 (b)		1,000,000		1,078,194
Series 2006-GG7, Class A4 6.078%, due 7/10/38 (e)		1,000,000		1,109,282
X  JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2003-CB7, Class A4 4.879%, due 1/12/38 (e)		500,000		530,719
Series 2004-CB9, Class A2 5.108%, due 6/12/41 (e)		1,574,629		1,573,986
Series 2007-CB18, Class A4 5.44%, due 6/12/47		1,245,000		1,349,809
Series 2007-CB19, Class ASB 5.915%, due 2/12/49 (e)		1,090,000		1,174,439
Morgan Stanley Capital I
Series 2005-IQ10, Class AAB 5.178%, due 9/15/42 (b)		1,897,627		1,987,456
Series 2006-IQ11, Class A4 5.898%, due 10/15/42 (e)		1,400,000		1,550,517
Total Mortgage-Backed Securities (Cost $9,947,481)				14,163,194
Municipal Bonds 0.4%
Arizona 0.2%
Salt River Project Agricultural Improvement and Power District Electric System Revenue 4.839%, due 1/1/41		1,000,000		924,350
Connecticut 0.1%
State of Connecticut, Transportation & Infrastructure Revenue 5.459%, due 11/1/30		500,000		501,730
Kansas 0.1%
Kansas State Department of Transportation, Highway Revenue 4.596%, due 9/1/35		1,000,000		920,840
Total Municipal Bonds (Cost $2,523,478)				2,346,920
U.S. Government & Federal Agencies 71.5%
X  Federal Home Loan Mortgage Corporation 3.3%
1.00%, due 12/9/13		1,000,000		996,899
2.125%, due 9/21/12		5,500,000		5,626,093
3.75%, due 3/27/19		3,300,000		3,448,800
4.50%, due 1/15/15		2,000,000		2,212,524
4.75%, due 1/19/16		2,000,000		2,241,830
5.00%, due 7/15/14		1,000,000		1,116,107
5.125%, due 10/18/16		2,430,000		2,763,749
				18,406,002
X  Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) 11.0%
3.50%, due 5/1/25 TBA (f)		500,000		506,406
3.50%, due 1/1/26		492,655		499,731
3.50%, due 2/1/26		991,168		1,005,715
3.50%, due 11/1/40 TBA (f)		500,000		475,625

20    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
U.S. Government & Federal Agencies (continued)
X  Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) (continued)
4.00%, due 7/1/23 TBA (f)	$	1,000,000	$	1,036,562
4.00%, due 1/1/25		146,556		152,167
4.00%, due 4/1/25		1,202,233		1,249,013
4.00%, due 11/1/25		421,209		437,336
4.00%, due 2/1/31		497,311		505,769
4.00%, due 7/1/39		1,986,256		1,981,087
4.00%, due 4/1/40		485,639		484,375
4.00%, due 11/1/40		988,422		983,688
4.00%, due 12/1/40		497,131		494,594
4.00%, due 1/1/41		496,699		494,165
4.00%, due 2/1/41		995,944		990,863
4.00%, due 4/1/41		500,000		497,565
4.50%, due 4/1/20		1,071,409		1,140,484
4.50%, due 10/1/24		479,062		505,457
4.50%, due 5/1/25		619,685		653,828
4.50%, due 7/1/30		554,767		578,354
4.50%, due 6/1/34		290,380		301,388
4.50%, due 6/1/35		451,333		467,737
4.50%, due 8/1/35		469,552		486,618
4.50%, due 2/1/39		1,287,917		1,326,210
4.50%, due 6/1/39		6,786,123		6,985,575
4.50%, due 7/1/39		632,908		651,510
4.50%, due 1/1/40		1,738,656		1,789,757
5.00%, due 1/1/25		1,578,110		1,687,447
5.00%, due 6/1/30		459,270		488,088
5.00%, due 8/1/30		455,658		484,249
5.00%, due 8/1/35		4,262,766		4,516,258
5.00%, due 6/1/37		2,976,368		3,143,131
5.00%, due 11/1/37		278,934		294,562
5.00%, due 10/1/39		849,955		899,968
5.00%, due 3/1/40		1,702,591		1,798,784
5.005%, due 3/1/39 (b)		465,476		494,178
5.17%, due 4/1/39 (b)		353,155		375,481
5.50%, due 2/1/18		221,734		240,284
5.50%, due 1/1/22		298,089		323,353
5.50%, due 3/1/23		110,820		120,022
5.50%, due 6/1/23		261,137		282,821
5.50%, due 11/1/27		510,625		549,227
5.50%, due 9/1/35		488,422		527,482
5.50%, due 4/1/37		4,504,106		4,847,423
5.50%, due 6/1/37		887,939		955,620
5.50%, due 7/1/37		250,700		269,809
5.50%, due 8/1/37		305,860		331,437
5.50%, due 11/1/37		409,256		440,451
5.50%, due 1/1/38		397,757		428,697
5.50%, due 8/1/38		583,871		628,193
5.50%, due 12/1/38		633,127		681,188
5.817%, due 10/1/37 (b)		1,684,630		1,808,764
6.00%, due 8/1/17		172,749		187,462
6.00%, due 6/1/21		86,603		94,358
6.00%, due 9/1/21		154,218		168,028
6.00%, due 11/1/22		128,287		139,535
6.00%, due 4/1/36		511,578		560,503
6.00%, due 8/1/36		232,728		254,985
6.00%, due 2/1/37		819,802		898,205
6.00%, due 8/1/37		819,291		896,109
6.00%, due 11/1/37		1,485,296		1,624,558
6.00%, due 9/1/38		588,111		644,539
6.00%, due 10/1/38		82,332		90,000
6.00%, due 12/1/39		789,361		863,372
6.135%, due 10/1/36 (b)		698,504		754,316
6.50%, due 10/1/11		211		214
6.50%, due 6/1/14		8,167		8,661
6.50%, due 4/1/17		6,720		7,342
6.50%, due 5/1/17		25,445		27,903
6.50%, due 11/1/25		17,240		19,496
6.50%, due 5/1/26		2,546		2,894
6.50%, due 3/1/27		7,869		8,887
6.50%, due 5/1/31		9,689		10,943
6.50%, due 8/1/31		8,427		9,517
6.50%, due 1/1/32		66,557		75,171
6.50%, due 3/1/32		65,297		73,748
6.50%, due 4/1/32		25,351		28,632
6.50%, due 7/1/32		29,203		32,982
6.50%, due 1/1/34		39,900		45,044
6.50%, due 1/1/37		317,858		357,606
6.50%, due 9/1/37		635,477		714,546
7.00%, due 6/1/11		69		69
7.00%, due 11/1/11		92		94
7.00%, due 4/1/26		7,000		8,044
7.00%, due 7/1/26		750		861
7.00%, due 12/1/27		10,927		12,568
7.00%, due 1/1/30		5,957		6,867
7.00%, due 3/1/31		32,509		37,508
7.00%, due 10/1/31		14,697		16,957
7.00%, due 3/1/32		56,519		65,210
7.00%, due 9/1/33		235,940		272,460
7.00%, due 11/1/36		108,958		124,717
7.00%, due 12/1/37		254,446		291,050
7.50%, due 1/1/16		4,161		4,508
7.50%, due 1/1/26		2,124		2,458
7.50%, due 2/1/32		34,422		40,052
8.00%, due 7/1/26		4,385		5,191
				62,786,666
X  Federal National Mortgage Association 3.2%
1.05%, due 10/22/13		1,000,000		1,001,211
1.75%, due 2/22/13		3,000,000		3,059,181

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
U.S. Government & Federal Agencies (continued)
X  Federal National Mortgage Association (continued)
2.625%, due 11/20/14	$	2,000,000	$	2,083,602
2.75%, due 3/13/14		1,000,000		1,046,641
3.00%, due 9/16/14		3,000,000		3,167,031
4.875%, due 5/18/12		4,700,000		4,922,056
5.375%, due 6/12/17		2,100,000		2,424,347
6.21%, due 8/6/38		475,000		580,962
				18,285,031
X  Federal National Mortgage Association (Mortgage Pass-Through Securities) 15.4%
3.168%, due 2/1/41 (b)		600,000		608,265
3.50%, due 10/1/25		983,760		997,122
3.50%, due 11/1/25		487,760		494,385
3.50%, due 1/1/26		494,133		500,845
3.50%, due 4/1/26		500,000		506,948
3.50%, due 1/1/41		495,245		472,694
3.50%, due 2/1/41		498,517		475,818
3.521%, due 8/1/40 (b)		967,589		1,006,348
4.00%, due 3/1/22		278,442		289,682
4.00%, due 2/1/24 TBA (f)		500,000		518,125
4.00%, due 2/1/25		3,321,681		3,448,856
4.00%, due 6/1/30		274,321		278,836
4.00%, due 1/1/31		493,559		501,683
4.00%, due 7/1/40		975,204		971,791
4.00%, due 9/1/40		4,679,731		4,664,628
4.00%, due 12/1/40		989,821		986,626
4.00%, due 1/1/41		1,990,984		1,984,559
4.00%, due 3/1/41		999,082		995,545
4.50%, due 2/1/23		731,748		773,667
4.50%, due 3/1/23		152,643		161,387
4.50%, due 8/1/23		702,144		742,366
4.50%, due 4/1/24		1,660,158		1,753,702
4.50%, due 3/1/30		713,503		745,511
4.50%, due 2/1/39		459,472		473,981
4.50%, due 3/1/39 TBA (f)		1,000,000		1,028,906
4.50%, due 4/1/39		13,714,406		14,134,631
4.50%, due 12/1/39		450,893		464,709
4.50%, due 11/1/40		495,912		510,953
5.00%, due 3/1/21		28,126		30,172
5.00%, due 6/1/22		345,297		369,436
5.00%, due 4/1/23		203,827		217,757
5.00%, due 7/1/23		917,342		980,039
5.00%, due 8/1/23		481,382		515,636
5.00%, due 1/1/24		237,959		254,223
5.00%, due 11/1/29		466,826		496,628
5.00%, due 7/1/30		326,910		347,781
5.00%, due 5/1/37		231,448		244,705
5.00%, due 4/1/39		411,286		434,716
5.00%, due 6/1/39		2,239,381		2,367,651
5.00%, due 7/1/39		3,596,489		3,801,368
5.00%, due 10/1/39		2,551,833		2,696,405
5.00%, due 12/1/39		2,814,390		2,973,837
5.00%, due 8/1/40		1,110,316		1,173,914
5.00%, due 9/1/40		272,970		288,606
5.50%, due 8/1/17		27,596		29,978
5.50%, due 7/1/22		392,058		425,448
5.50%, due 11/1/23		162,308		176,131
5.50%, due 4/1/30		485,800		524,424
5.50%, due 5/1/35		253,063		273,657
5.50%, due 6/1/35		166,454		180,000
5.50%, due 7/1/35		927,983		1,003,500
5.50%, due 8/1/35		495,311		535,619
5.50%, due 9/1/35		404,590		437,515
5.50%, due 11/1/35		1,868,922		2,021,013
5.50%, due 4/1/36		383,176		414,359
5.50%, due 6/1/36		293,949		317,135
5.50%, due 1/1/37		460,018		497,885
5.50%, due 3/1/37		1,484,674		1,600,392
5.50%, due 4/1/37		164,221		177,020
5.50%, due 1/1/38		443,202		477,746
5.50%, due 3/1/38		5,176,010		5,576,202
5.50%, due 6/1/38		402,511		433,632
5.50%, due 10/1/38		255,383		275,129
5.545%, due 11/1/38 (b)		1,244,507		1,329,080
6.00%, due 6/1/16		27,394		29,933
6.00%, due 7/1/16		15,111		16,512
6.00%, due 9/1/16		20,791		22,718
6.00%, due 9/1/17		10,491		11,476
6.00%, due 7/1/36		1,077,687		1,182,100
6.00%, due 8/1/36		52,323		57,393
6.00%, due 9/1/36		288,533		316,488
6.00%, due 11/1/36		304,691		334,211
6.00%, due 12/1/36		215,900		236,818
6.00%, due 4/1/37		1,041,673		1,141,839
6.00%, due 7/1/37		2,123,999		2,325,801
6.00%, due 8/1/37		332,494		364,084
6.00%, due 12/1/37		696,523		762,700
6.00%, due 2/1/38		1,160,265		1,270,503
6.00%, due 4/1/38		375,236		410,888
6.00%, due 5/1/38		608,132		665,721
6.50%, due 9/1/11		681		687
6.50%, due 10/1/11		2,087		2,106
6.50%, due 11/1/11		738		749
6.50%, due 6/1/15		18,678		19,498
6.50%, due 2/1/28		5,990		6,776
6.50%, due 7/1/32		8,388		9,489
6.50%, due 8/1/32		152,150		172,121
6.50%, due 1/1/35		252,974		285,310
6.50%, due 8/1/35		232,376		262,079

22    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
U.S. Government & Federal Agencies (continued)
X  Federal National Mortgage Association (Mortgage Pass-Through Securities) (continued)
6.50%, due 9/1/35	$	5,921	$	6,678
6.50%, due 3/1/36		108,497		122,263
6.50%, due 4/1/36		252,050		284,031
6.50%, due 7/1/36		479,596		540,450
6.50%, due 8/1/36		157,742		177,758
6.50%, due 9/1/36		275,186		310,104
6.50%, due 10/1/36		86,994		98,171
6.50%, due 11/1/36		160,454		180,813
6.50%, due 8/1/37		5,900		6,664
6.50%, due 10/1/37		432,904		487,428
6.50%, due 11/1/37		128,799		145,021
6.50%, due 12/1/37		167,225		188,287
6.50%, due 2/1/38		370,379		417,027
7.00%, due 6/1/11		12		12
7.00%, due 10/1/11		15		15
7.00%, due 11/1/11		1,002		1,017
7.00%, due 9/1/37		57,770		66,165
7.00%, due 10/1/37		10,260		11,751
7.00%, due 11/1/37		276,414		316,580
7.50%, due 7/1/30		10,011		11,669
7.50%, due 7/1/31		46,725		54,504
7.50%, due 8/1/31		491		572
8.00%, due 9/1/11		12		12
8.00%, due 11/1/11		374		378
8.00%, due 1/1/25		199		232
8.00%, due 6/1/25		236		276
8.00%, due 9/1/25		1,070		1,247
8.00%, due 9/1/26		6,573		7,677
8.00%, due 10/1/26		963		1,124
8.00%, due 11/1/26		1,640		1,916
8.00%, due 4/1/27		2,150		2,506
8.00%, due 6/1/27		19,101		22,265
8.00%, due 12/1/27		8,543		9,797
8.00%, due 1/1/28		30,625		35,698
				87,809,416
X  Government National Mortgage Association (Mortgage Pass-Through Securities) 6.9%
4.00%, due 3/15/25		441,706		466,286
4.00%, due 9/15/25		476,444		502,957
4.00%, due 5/15/39		856,756		869,655
4.00%, due 11/15/39		95,640		97,080
4.00%, due 6/1/40 TBA (f)		1,500,000		1,519,453
4.00%, due 9/20/40		489,589		496,408
4.00%, due 2/20/41		996,092		1,009,966
4.00%, due 3/20/41		499,032		505,983
4.50%, due 11/15/24		485,499		520,693
4.50%, due 3/20/39		3,658,953		3,828,629
4.50%, due 7/15/39		496,358		521,220
4.50%, due 8/1/39 TBA (f)		4,000,000		4,182,500
4.50%, due 10/20/39		474,791		496,809
4.50%, due 2/15/40		1,470,395		1,540,830
4.50%, due 3/15/40		945,934		991,246
4.50%, due 6/20/40		494,927		517,569
4.50%, due 10/20/40		485,110		507,303
5.00%, due 4/20/33		178,707		193,029
5.00%, due 8/15/33		88,373		95,276
5.00%, due 2/15/36		369,779		396,930
5.00%, due 6/20/36		426,794		459,309
5.00%, due 9/15/37		88,584		95,047
5.00%, due 1/15/39		311,003		333,645
5.00%, due 3/15/39		781,295		838,174
5.00%, due 5/15/39		1,247,644		1,338,474
5.00%, due 5/20/39		4,326,827		4,640,233
5.00%, due 8/15/39		789,993		847,505
5.00%, due 9/15/39		376,183		403,570
5.00%, due 10/15/39		483,210		518,389
5.00%, due 10/20/40		464,722		498,383
5.50%, due 3/15/33		1,272,601		1,394,236
5.50%, due 7/15/34		289,096		316,668
5.50%, due 7/20/34		166,529		181,738
5.50%, due 9/15/35		393,983		430,778
5.50%, due 12/20/35		391,208		427,011
5.50%, due 6/15/38		310,717		338,668
5.50%, due 11/15/38		153,667		167,490
5.50%, due 1/20/39		1,606,489		1,744,976
6.00%, due 3/20/29		42,524		47,007
6.00%, due 1/15/32		73,344		81,890
6.00%, due 12/15/32		30,997		34,608
6.00%, due 3/20/33		215,909		238,394
6.00%, due 2/15/34		189,044		210,834
6.00%, due 1/20/35		116,073		128,306
6.00%, due 6/15/35		106,577		118,396
6.00%, due 9/15/35		256,456		285,697
6.00%, due 5/15/36		318,416		352,532
6.00%, due 5/15/37		308,859		341,662
6.00%, due 9/20/40		1,243,885		1,371,869
6.50%, due 3/20/31		27,626		31,164
6.50%, due 1/15/32		34,510		39,115
6.50%, due 6/15/35		2,485		2,778
6.50%, due 12/15/35		33,136		37,548
6.50%, due 1/15/36		333,987		378,032
6.50%, due 9/15/36		94,153		106,585
6.50%, due 9/15/37		95,429		108,075
6.50%, due 10/15/37		149,145		168,465
6.50%, due 11/15/38		407,382		460,317
7.00%, due 11/15/11		1,035		1,036
7.00%, due 2/15/26		617		711

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    23

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
U.S. Government & Federal Agencies (continued)
X  Government National Mortgage Association (Mortgage Pass-Through Securities) (continued)
7.00%, due 6/15/29	$	582	$	673
7.00%, due 12/15/29		4,723		5,457
7.00%, due 5/15/31		2,534		2,941
7.00%, due 8/15/31		19,523		22,653
7.00%, due 8/20/31		36,866		42,638
7.00%, due 8/15/32		55,266		64,082
7.50%, due 9/15/11		1,632		1,635
7.50%, due 3/15/26		4,797		5,576
7.50%, due 10/15/26		9,340		10,858
7.50%, due 11/15/26		1,344		1,562
7.50%, due 1/15/30		15,276		17,829
7.50%, due 10/15/30		7,496		8,748
7.50%, due 3/15/32		29,917		34,912
8.00%, due 6/15/26		265		311
8.00%, due 9/15/26		1,630		1,916
8.00%, due 10/15/26		395		464
8.00%, due 11/15/26		1,918		2,218
8.00%, due 5/15/27		138		162
8.00%, due 7/15/27		955		1,124
8.00%, due 9/15/27		562		662
8.00%, due 11/15/30		30,221		35,688
8.50%, due 7/15/26		1,105		1,325
8.50%, due 11/15/26		6,116		7,337
				39,049,908
X  United States Treasury Bonds 4.1%
3.875%, due 8/15/40		7,220,000		6,572,453
4.25%, due 11/15/40		3,500,000		3,402,658
4.50%, due 2/15/36		4,400,000		4,509,314
4.75%, due 2/15/41		2,200,000		2,324,436
5.25%, due 11/15/28		4,500,000		5,147,577
6.75%, due 8/15/26		1,000,000		1,324,844
				23,281,282
X  United States Treasury Notes 27.6%
0.50%, due 10/15/13		5,135,000		5,098,090
0.50%, due 11/15/13		18,815,000		18,662,128
0.75%, due 8/15/13		14,900,000		14,909,313
0.75%, due 12/15/13		3,000,000		2,991,327
1.00%, due 7/15/13		8,680,000		8,738,330
1.00%, due 1/15/14		14,000,000		14,038,276
1.25%, due 2/15/14		4,990,000		5,032,884
1.25%, due 3/15/14		5,305,000		5,346,432
1.25%, due 9/30/15		1,195,000		1,171,193
1.75%, due 4/15/13		16,662,800		17,035,713
1.875%, due 9/30/17		3,000,000		2,884,686
1.875%, due 10/31/17		702,000		673,865
2.00%, due 1/31/16		2,320,000		2,333,776
2.125%, due 12/31/15		3,260,000		3,302,788
2.125%, due 2/29/16		4,020,000		4,062,085
2.25%, due 3/31/16		4,880,000		4,951,687
2.375%, due 7/31/17		2,000,000		1,991,250
2.625%, due 8/15/20		2,043,000		1,942,605
2.625%, due 11/15/20		7,550,000		7,143,010
2.75%, due 2/28/18		2,500,000		2,518,945
3.125%, due 1/31/17		13,700,000		14,336,831
3.125%, due 4/30/17		2,350,000		2,450,242
3.25%, due 3/31/17		2,000,000		2,101,250
3.375%, due 11/15/19		7,355,000		7,535,999
3.625%, due 2/15/21		5,800,000		5,957,689
				157,210,394
Total U.S. Government & Federal Agencies (Cost $400,356,999)				406,828,699
Yankee Bonds 5.1% (g)
Banks 1.6%
Abbey National Treasury Services PLC 4.00%, due 4/27/16		75,000		75,759
Bank of Nova Scotia 2.375%, due 12/17/13		250,000		255,837
3.40%, due 1/22/15		175,000		182,610
Barclays Bank PLC 5.125%, due 1/8/20		415,000		426,982
Canadian Imperial Bank of Commerce 2.35%, due 12/11/15		100,000		98,557
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. 4.50%, due 1/11/21		100,000		102,707
Credit Suisse New York 5.50%, due 5/1/14		500,000		553,291
Deutsche Bank A.G. 6.00%, due 9/1/17		325,000		367,949
Eksportfinans A/S 5.50%, due 5/25/16		200,000		227,169
Export-Import Bank of Korea 5.875%, due 1/14/15		350,000		385,762
Inter-American Development Bank 6.80%, due 10/15/25		604,000		750,477
Korea Development Bank 4.375%, due 8/10/15		200,000		209,742
5.30%, due 1/17/13		125,000		132,186
Kreditanstalt fuer Wiederaufbau
2.625%, due 3/3/15		1,000,000		1,038,493
4.50%, due 7/16/18		850,000		935,970
Series G 4.875%, due 1/17/17		1,000,000		1,126,881

24    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Yankee Bonds (continued)
Banks (continued)
Kreditanstalt fuer Wiederaufbau (continued)
Landwirtschaftliche Rentenbank 3.125%, due 7/15/15	$	300,000	$	314,196
5.125%, due 2/1/17		375,000		425,592
Oesterreichische Kontrollbank A.G. 4.75%, due 10/16/12		500,000		530,489
Royal Bank of Scotland Group PLC 5.00%, due 11/12/13		100,000		101,890
5.05%, due 1/8/15		100,000		101,348
UBS A.G. 5.875%, due 7/15/16		125,000		137,421
5.875%, due 12/20/17		200,000		223,258
Westpac Banking Corp. 3.00%, due 12/9/15		300,000		301,728
4.625%, due 6/1/18		50,000		51,606
				9,057,900
Beverages 0.1%
Diageo Capital PLC 5.875%, due 9/30/36		150,000		161,424
Diageo Finance B.V. 3.25%, due 1/15/15		100,000		103,801
				265,225
Building Materials 0.0%‡
Lafarge S.A. 6.50%, due 7/15/16		50,000		53,805
7.125%, due 7/15/36		50,000		49,738
				103,543
Chemicals 0.0%‡
Potash Corp. of Saskatchewan, Inc. 4.875%, due 3/30/20		150,000		158,514
Electric 0.0%‡
Scottish Power PLC 5.375%, due 3/15/15		100,000		106,401
Electronics 0.1%
Koninklijke Philips Electronics N.V. 6.875%, due 3/11/38		275,000		329,952
Finance—Investment Banker/Broker 0.0%‡
BNP Paribas Home Loan Covered Bonds S.A. 2.20%, due 11/2/15 (d)		250,000		242,829
Forest Products & Paper 0.0%‡
Celulosa Arauco y Constitucion S.A. 5.625%, due 4/20/15		50,000		53,926
Health Care—Products 0.0%‡
Covidien International Finance S.A. 6.00%, due 10/15/17		150,000		173,109
Insurance 0.0%‡
AXA S.A. 8.60%, due 12/15/30		105,000		127,255
Iron & Steel 0.1%
ArcelorMittal 5.375%, due 6/1/13		200,000		213,890
6.125%, due 6/1/18		300,000		324,585
				538,475
Media 0.0%‡
Thomson Corp. (The) 5.70%, due 10/1/14		50,000		56,197
Thomson Reuters Corp. 5.85%, due 4/15/40		105,000		110,619
				166,816
Mining 0.4%
Alcan, Inc. 5.00%, due 6/1/15		100,000		109,464
5.75%, due 6/1/35		50,000		50,916
Barrick Australia Finance Pty, Ltd. 5.95%, due 10/15/39		150,000		155,791
Barrick Gold Finance Co. 4.875%, due 11/15/14		50,000		55,248
BHP Billiton Finance USA, Ltd. 4.80%, due 4/15/13		100,000		107,309
Inco, Ltd. 5.70%, due 10/15/15		100,000		109,460
Rio Tinto Finance USA, Ltd. 1.875%, due 11/2/15		650,000		636,223
Vale Overseas, Ltd. 6.25%, due 1/23/17		600,000		678,674
Xstrata Canada Corp. 5.50%, due 6/15/17		50,000		53,652
				1,956,737
Miscellaneous—Manufacturing 0.0%‡
Ingersoll-Rand Co. 4.75%, due 5/15/15		150,000		161,549
Multi-National 0.7%
European Investment Bank 2.25%, due 3/15/16		1,250,000		1,259,479
2.75%, due 3/23/15		1,250,000		1,300,820
2.875%, due 9/15/20		500,000		475,721

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    25

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Yankee Bonds (continued)
Multi-National (continued)
International Bank for Reconstruction & Development (zero coupon), due 3/11/31	$	504,000	$	182,992
2.125%, due 3/15/16		1,000,000		1,009,278
				4,228,290
Oil & Gas 0.8%
Apache Finance Canada Corp. 4.375%, due 5/15/15		100,000		107,703
BP Capital Markets PLC 4.50%, due 10/1/20		50,000		50,391
5.25%, due 11/7/13		250,000		271,027
Canadian Natural Resources, Ltd. 5.85%, due 2/1/35		105,000		108,288
6.50%, due 2/15/37		75,000		84,488
Cenovus Energy, Inc. 6.75%, due 11/15/39		100,000		115,040
ConocoPhilips Canada Funding Co. 5.625%, due 10/15/16		375,000		430,485
EnCana Corp. 4.75%, due 10/15/13		100,000		107,873
6.50%, due 8/15/34		85,000		92,321
6.50%, due 2/1/38		125,000		135,563
Norsk Hydro ASA 7.75%, due 6/15/23		125,000		159,941
Petro-Canada 4.00%, due 7/15/13		100,000		105,554
6.05%, due 5/15/18		225,000		255,277
Petrobras International Finance Co. 5.875%, due 3/1/18		475,000		506,744
7.75%, due 9/15/14		250,000		289,932
Shell International Finance B.V. 4.00%, due 3/21/14		400,000		429,315
4.30%, due 9/22/19		125,000		130,478
5.50%, due 3/25/40		325,000		336,550
Suncor Energy, Inc. 6.10%, due 6/1/18		100,000		114,035
6.50%, due 6/15/38		100,000		109,952
Talisman Energy, Inc. 5.125%, due 5/15/15		50,000		54,391
6.25%, due 2/1/38		55,000		58,891
Total Capital S.A. 2.30%, due 3/15/16		300,000		297,196
Transocean, Inc. 6.00%, due 3/15/18		125,000		137,297
7.375%, due 4/15/18		100,000		115,203
				4,603,935
Oil & Gas Services 0.0%‡
Weatherford International, Inc. 4.95%, due 10/15/13		100,000		106,947
Pharmaceuticals 0.2%
AstraZeneca PLC 6.45%, due 9/15/37		200,000		230,914
Novartis Securities Investment, Ltd. 5.125%, due 2/10/19		450,000		493,332
Teva Pharmaceutical Finance LLC 3.00%, due 6/15/15		105,000		107,266
				831,512
Pipelines 0.2%
TransCanada Pipelines, Ltd. 4.00%, due 6/15/13		405,000		428,832
4.875%, due 1/15/15		380,000		416,105
5.85%, due 3/15/36		100,000		103,476
				948,413
Sovereign 0.1%
Svensk Exportkredit AB 3.25%, due 9/16/14		250,000		263,254
5.125%, due 3/1/17		200,000		224,197
				487,451
Telecommunications 0.7%
America Movil S.A. de C.V. 5.75%, due 1/15/15		675,000		753,631
British Telecommunications PLC 9.875%, due 12/15/30		100,000		141,089
Deutsche Telekom International Finance B.V. 5.25%, due 7/22/13		100,000		108,205
5.75%, due 3/23/16		200,000		225,933
6.00%, due 7/8/19		250,000		286,499
9.25%, due 6/1/32		100,000		144,996
France Telecom S.A. 4.375%, due 7/8/14		125,000		135,077
8.50%, due 3/1/31		250,000		343,999
Rogers Communications, Inc. 6.80%, due 8/15/18		225,000		265,572
Telecom Italia Capital S.A. 4.95%, due 9/30/14		150,000		158,129
6.00%, due 9/30/34		100,000		91,570
6.375%, due 11/15/33		175,000		167,082
Telefonica Emisones S.A.U. 7.045%, due 6/20/36		100,000		111,795
Telefonica Europe B.V. 8.25%, due 9/15/30		200,000		245,339

26    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount			Value
Yankee Bonds (continued)
Telecommunications (continued)
Vodafone Group PLC 5.00%, due 12/16/13	$	294,000		$	320,516
6.15%, due 2/27/37		250,000			272,641
7.875%, due 2/15/30		100,000			128,705
					3,900,778
Transportation 0.1%
Canadian National Railway Co. 6.20%, due 6/1/36		100,000			112,567
6.375%, due 11/15/37		60,000			69,709
Canadian Pacific Railway Co. 7.25%, due 5/15/19		125,000			149,375
					331,651
Water 0.0%‡
United Utilities PLC 5.375%, due 2/1/19		100,000			103,040
Total Yankee Bonds (Cost $27,502,377)					28,984,248
Total Long-Term Bonds (Cost $547,482,603)					565,980,423
Short-Term Investments 1.6%
Other Commercial Paper 0.9%
Societe Generale North America, Inc. 0.11%, due 5/2/11 (h)		5,000,000			4,999,986
Total Other Commercial Paper (Cost $4,999,986)					4,999,986
Repurchase Agreement 0.0%‡
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $22,407 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $25,000 and a Market Value of $25,000)		22,407			22,407
Total Repurchase Agreement (Cost $22,407)					22,407
U.S. Government & Federal Agency 0.7%
Federal Home Loan Bank (Discount Note) (zero coupon), due 5/5/11 (h)		2,000,000			2,000,000
United States Treasury Bill 0.007%, due 5/5/11 (h)		2,300,000			2,299,997
Total U.S. Government & Federal Agency (Cost $4,299,997)					4,299,997
Total Short-Term Investments (Cost $9,322,390)					9,322,390
Total Investments (Cost $556,804,993) (i)		101.1	%		575,302,813
Other Assets, Less Liabilities		(1.1	)		(6,298,542	)
Net Assets		100.0	%	$	569,004,271

†††	On a daily basis New York Life Investments confirms that the value of the Fund’s liquid assets (liquid portfolio securities and cash) is sufficient to cover its potential senior securities (e.g., futures, swaps, options).
‡	Less than one-tenth of a percent.
(a)	Subprime mortgage investment and other asset-backed securities. The total market value of the securities at April 30, 2011 is $953,523, which represents 0.2% of the Fund’s net assets.
(b)	Floating rate—Rate shown is the rate in effect at April 30, 2011.
(c)	The debt is guaranteed under the Federal Deposit Insurance Corporation (FDIC) Temporary Liquidity Guarantee Program and is backed by the full faith and credit of the United States. The expiration date of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012.
(d)	May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.
(e)	Collateral strip rate—Bond whose interest is based on the weighted net interest rate of the collateral. Coupon rate adjusts periodically based on a predetermined schedule. Rate shown is the rate in effect at April 30, 2011.
(f)	TBA—Securities purchased on a forward commitment basis with an approximate principal amount and maturity date. The actual principal amount and maturity date will be determined upon settlement. The market value of these securities at April 30, 2011 is $9,267,577, which represents 1.6% of the Fund’s net assets. All or a portion of these securities were acquired under a mortgage dollar roll agreement.
(g)	Yankee Bond—dollar-denominated bond issued in the United States by a foreign bank or corporation.
(h)	Interest rate presented is yield to maturity.
(i)	At April 30, 2011, cost is $556,854,451 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	21,792,504
Gross unrealized depreciation		(3,344,142	)
Net unrealized appreciation	$	18,448,362

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    27

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Long-Term Bonds
Asset-Backed Securities	$	—	$	2,016,102	$	—	$	2,016,102
Corporate Bonds		—		101,756,292		—		101,756,292
Foreign Government Bonds		—		9,884,968		—		9,884,968
Mortgage-Backed Securities		—		14,163,194		—		14,163,194
Municipal Bonds		—		2,346,920		—		2,346,920
U.S. Government & Federal Agencies		—		406,828,699		—		406,828,699
Yankee Bonds		—		28,984,248		—		28,984,248
Total Long-Term Bonds		—		565,980,423		—		565,980,423
Short-Term Investments
Other Commercial Paper		—		4,999,986		—		4,999,986
Repurchase Agreement		—		22,407		—		22,407
U.S. Government & Federal Agency		—		4,299,997		—		4,299,997
Total Short-Term Investments		—		9,322,390		—		9,322,390
Total Investments in Securities	$	—	$	575,302,813	$	—	$	575,302,813

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

28    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $556,804,993)	$	575,302,813
Receivables:
Investment securities sold		4,260,004
Interest		3,877,162
Fund shares sold		1,316,208
Other assets		38,021
Total assets		584,794,208
Liabilities
Payables:
Investment securities purchased		13,354,981
Fund shares redeemed		2,001,840
Manager (See Note 3)		123,807
Transfer agent (See Note 3)		120,664
Professional fees		66,321
Shareholder communication		30,158
NYLIFE Distributors (See Note 3)		16,850
Custodian		16,671
Trustees		3,262
Accrued expenses		2,025
Dividend payable		53,358
Total liabilities		15,789,937
Net assets	$	569,004,271
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	50,297
Additional paid-in capital		548,804,368
		548,854,665
Distributions in excess of net investment income		(50,259	)
Accumulated net realized gain (loss) on investments		1,702,045
Net unrealized appreciation (depreciation) on investments		18,497,820
Net assets	$	569,004,271
Investor Class
Net assets applicable to outstanding shares	$	5,821,253
Shares of beneficial interest outstanding		512,809
Net asset value per share outstanding	$	11.35
Maximum sales charge (3.00% of offering price)		0.35
Maximum offering price per share outstanding	$	11.70
Class A
Net assets applicable to outstanding shares	$	76,390,927
Shares of beneficial interest outstanding		6,758,237
Net asset value per share outstanding	$	11.30
Maximum sales charge (3.00% of offering price)		0.35
Maximum offering price per share outstanding	$	11.65
Class I
Net assets applicable to outstanding shares	$	486,792,091
Shares of beneficial interest outstanding		43,026,146
Net asset value and offering price per share outstanding	$	11.31

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    29

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Interest (a)	$	9,917,240
Expenses
Manager (See Note 3)		1,033,766
Transfer agent (See Note 3)		356,371
Distribution/Service—Investor Class (See Note 3)		7,211
Distribution/Service—Class A (See Note 3)		99,631
Professional fees		67,946
Custodian		50,008
Registration		35,767
Shareholder communication		34,819
Trustees		9,417
Miscellaneous		12,809
Total expenses before waiver/reimbursement		1,707,745
Expense waiver/reimbursement from Manager (See Note 3)		(280,512	)
Net expenses		1,427,233
Net investment income (loss)		8,490,007
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		1,750,444
Net change in unrealized appreciation (depreciation) on investments		(12,597,041	)
Net realized and unrealized gain (loss) on investments		(10,846,597	)
Net increase (decrease) in net assets resulting from operations	$	(2,356,590	)

(a)  Interest recorded net of foreign withholding taxes in the amount of $1,102.

30    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	8,490,007		$	19,199,592
Net realized gain (loss) on investments		1,750,444			13,645,281
Net change in unrealized appreciation (depreciation) on investments		(12,597,041	)		9,685,940
Net increase (decrease) in net assets resulting from operations		(2,356,590	)		42,530,813
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(73,976	)		(144,231	)
Class A		(1,069,265	)		(2,505,556	)
Class I		(7,712,603	)		(16,548,311	)
		(8,855,844	)		(19,198,098	)
From net realized gain on investments:
Investor Class		(128,315	)		(6,059	)
Class A		(1,810,225	)		(111,528	)
Class I		(11,260,357	)		(667,928	)
		(13,198,897	)		(785,515	)
Total dividends and distributions to shareholders		(22,054,741	)		(19,983,613	)
Capital share transactions:
Net proceeds from sale of shares		87,376,930			213,604,394
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		21,220,106			19,405,315
Cost of shares redeemed		(131,966,455	)		(189,285,237	)
Increase (decrease) in net assets derived from capital share transactions		(23,369,419	)		43,724,472
Net increase (decrease) in net assets		(47,780,750	)		66,271,672
Net Assets
Beginning of period		616,785,021			550,513,349
End of period	$	569,004,271		$	616,785,021
Undistributed (distributions in excess of) net investment income at end of period	$	(50,259	)	$	315,578

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    31

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	11.81		$	11.38		$	10.37		$	10.97
Net investment income (loss)		0.14	(a)		0.32			0.40			0.30
Net realized and unrealized gain (loss) on investments		(0.20	)		0.45			1.02			(0.60	)
Total from investment operations		(0.06	)		0.77			1.42			(0.30	)
Less dividends and distributions:
From net investment income		(0.15	)		(0.32	)		(0.41	)		(0.30	)
From net realized gain on investments		(0.25	)		(0.02	)		—			—
Total dividends and distributions		(0.40	)		(0.34	)		(0.41	)		(0.30	)
Net asset value at end of period	$	11.35		$	11.81		$	11.38		$	10.37
Total investment return (b)		(0.49	%)(c)		6.88	%		13.87	%		(2.76	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.44	% ††		2.81	%		3.66	%		4.26	% ††
Net expenses		0.92	% ††		0.92	%		0.92	%		0.92	% ††
Expenses (before waiver/reimbursement)		1.12	% ††		1.15	%		1.28	%		1.27	% ††
Portfolio turnover rate (d)		31	%		115	%		61	%		66	%
Net assets at end of period (in 000’s)	$	5,821		$	5,985		$	4,279		$	2,874

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	The portfolio turnover rates not including mortgage dollar rolls are 29%, 105%, 56% and 62% for the six-months ended April 30, 2011 and the years ended October 31, 2010, 2009, and 2008, respectively.

32    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	11.76		$	11.33		$	10.33		$	10.70		$	10.69		$	10.68
Net investment income (loss)		0.14	(a)		0.34			0.41			0.47			0.47			0.44
Net realized and unrealized gain (loss) on investments		(0.20	)		0.45			1.01			(0.36	)		0.02			0.01
Total from investment operations		(0.06	)		0.79			1.42			0.11			0.49			0.45
Less dividends and distributions:
From net investment income		(0.15	)		(0.34	)		(0.42	)		(0.48	)		(0.48	)		(0.44	)
From net realized gain on investments		(0.25	)		(0.02	)		—			—			—			—
Total dividends and distributions		(0.40	)		(0.36	)		(0.42	)		(0.48	)		(0.48	)		(0.44	)
Net asset value at end of period	$	11.30		$	11.76		$	11.33		$	10.33		$	10.70		$	10.69
Total investment return (b)		(0.43	%)(c)		7.04	%		13.93	%		0.88	%		4.66	%		4.29	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.56	% ††		2.94	%		3.76	%		4.35	%		4.40	%		4.10	%
Net expenses		0.79	% ††		0.80	%		0.82	%		0.82	%		0.82	%		0.82	%
Expenses (before waiver/reimbursement)		0.79	% ††		0.80	%		0.88	%		0.88	%		0.93	%		0.86	%
Portfolio turnover rate (d)		31	%		115	%		61	%		66	%		121	%		105	%
Net assets at end of period (in 000’s)	$	76,391		$	87,750		$	77,595		$	61,775		$	57,604		$	51,941

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	The portfolio turnover rates not including mortgage dollar rolls are 29%, 105%, 56%, 62%, 116% and 85% for the six-months ended April 30, 2011 and the years ended October 31, 2010, 2009, 2008, 2007, and 2006, respectively.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    33

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	11.77		$	11.34		$	10.33		$	10.70		$	10.69		$	10.69
Net investment income (loss)		0.16	(a)		0.38			0.46			0.51			0.51			0.48
Net realized and unrealized gain (loss) on investments		(0.20	)		0.45			1.01			(0.37	)		0.02			0.00	‡
Total from investment operations		(0.04	)		0.83			1.47			0.14			0.53			0.48
Less dividends and distributions:
From net investment income		(0.17	)		(0.38	)		(0.46	)		(0.51	)		(0.52	)		(0.48	)
From net realized gain on investments		(0.25	)		(0.02	)		—			—			—			—
Total dividends and distributions		(0.42	)		(0.40	)		(0.46	)		(0.51	)		(0.52	)		(0.48	)
Net asset value at end of period	$	11.31		$	11.77		$	11.34		$	10.33		$	10.70		$	10.69
Total investment return (b)		(0.25	%)(c)		7.43	%		14.47	%		1.25	%		5.07	%		4.60	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.93	% ††		3.31	%		4.15	%		4.74	%		4.79	%		4.49	%
Net expenses		0.43	% ††		0.43	%		0.43	%		0.43	%		0.43	%		0.43	%
Expenses (before reimbursement/waiver)		0.54	% ††		0.55	%		0.63	%		0.56	%		0.53	%		0.47	%
Portfolio turnover rate (d)		31	%		115	%		61	%		66	%		121	%		105	%
Net assets at end of period (in 000’s)	$	486,792		$	523,050		$	468,639		$	381,086		$	398,047		$	328,259

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	The portfolio turnover rates not including mortgage dollar rolls are 29%, 105%, 56%, 62%, 116% and 85% for the six-months ended April 30, 2011 and the years ended October 31, 2010, 2009, 2008, 2007, and 2006, respectively.

34    MainStay Indexed Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Indexed Bond Fund (the “Fund”), a diversified fund. The Fund is the successor of the MainStay Indexed Bond Fund, a series of Eclipse Funds Inc. (the “Predecessor Fund”). The reorganization of the Predecessor Fund with and into the Fund occurred on February 26, 2010. All information regarding and references to periods prior to February 26, 2010 relate to the Predecessor Fund.

The Fund currently offers three classes of shares. Class I shares commenced operations on January 2, 1991. Class A shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The three classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Investor Class shares and Class A shares are subject to a distribution and/or service fee. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek to provide investment results that correspond to the total return performance of fixed-income securities in the aggregate, as represented by the Fund’s primary benchmark index.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Debt securities are valued at the evaluated bid prices supplied by a pricing agent or brokers selected by the Fund’s Manager (as defined in Note 3(A)) in consultation with the Fund’s Subadvisor (as defined in Note 3(A)) whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by the Fund’s Manager, in consultation with the Fund’s Subadvisor, to be

mainstayinvestments.com    35

Notes to Financial Statements (unaudited) (continued)

representative of market values, at the regular close of trading of the Exchange on each valuation date. Debt securities, including corporate bonds, U.S. government & federal agency bonds, municipal bonds, foreign bonds, Yankee bonds, convertible bonds, asset-backed securities, and mortgage-backed securities, are generally categorized as Level 2 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued. Its illiquidity might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of a Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in determining value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor determines the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued in such manner as the Board in good faith deems appropriate to reflect their fair market value.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income monthly and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method and include gains and losses from repayments of principal on mortgage-backed securities. Interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

36    MainStay Indexed Bond Fund

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Mortgage Dollar Rolls. The Fund may enter into mortgage dollar roll (“MDR”) transactions in which it sells mortgage-backed securities (“MBS”) from its portfolio to a counterparty from whom it simultaneously agrees to buy a similar security on a delayed delivery basis. The MDR transactions of the Fund are classified as purchase and sale transactions. The securities sold in connection with the MDRs are removed from the portfolio and a realized gain or loss is recognized. The securities the Fund has agreed to acquire are included at market value in the Portfolio of Investments and liabilities for such purchase commitments are included as payables for investments purchased. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future as well as by the earnings on the cash proceeds of the initial sale. MDRs may be renewed without physical delivery of the securities subject to the contract. The Fund maintains liquid assets from its portfolio having a value not less than the repurchase price, including accrued interest. MDR transactions involve certain risks, including the risk that the MBS returned to the Fund at the end of the roll, while substantially similar, could be inferior to what was initially sold to the counterparty.

(I) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(J) Concentration of Risk. The Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic instruments. These risks include those resulting from currency fluctuations, future adverse political and economic developments and possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. These risks are likely to be greater in emerging markets than in developed markets. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific country, industry or region.

(K) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A) Manager. New York Life Investment Management LLC (“New York Life Investments” or “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. The Fund is advised by New York Life Investments directly, without a subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net

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Notes to Financial Statements (unaudited) (continued)

assets as follows: 0.35% up to $1 billion and 0.30% in excess of $1 billion. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.35% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive fees and/or reimburse expenses of the appropriate class of the Fund so that Total Annual Fund Operating Expenses do not exceed the following percentages of average daily net assets: Investor Class, 0.92%; Class A, 0.82%; and Class I, 0.43%. This agreement expires on February 28, 2012, and may only be amended or terminated prior to that date by the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $1,033,766 and waived/reimbursed its fees in the amount of $280,512.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from the Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $1,379 and $3,446, respectively, for the six-month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A shares of $2 for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	12,998
Class A		46,824
Class I		296,549

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Class A $ 1,361 0.0 %‡

‡  Less than one-tenth of a percent.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $7,741. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

The tax character of distributions paid during the year ended October 31, 2010 shown in the Statement of Changes in Net Assets, was as follows:

	2010
Distributions paid from:
Ordinary Income	$	19,198,098
Long-Term Gains		785,515
Total	$	19,983,613

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional

38    MainStay Indexed Bond Fund

maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of U.S. Government securities were $160,837 and $172,662, respectively. Purchases and sales of securities, other than U.S. Government securities and short-term securities, were $25,058 and $27,904, respectively.

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		86,856		$	989,057
Shares issued to shareholders in reinvestment of dividends and distributions		17,709			199,681
Shares redeemed		(89,149	)		(1,013,750	)
Net increase (decrease) in shares outstanding before conversion		15,416			174,988
Shares converted into Investor Class (See Note 1)		8,818			99,290
Shares converted from Investor Class (See Note 1)		(18,149	)		(204,774	)
Net increase (decrease)		6,085		$	69,504
Year ended October 31, 2010:
Shares sold		204,356		$	2,349,296
Shares issued to shareholders in reinvestment of dividends and distributions		12,770			147,438
Shares redeemed		(77,270	)		(891,873	)
Net increase (decrease) in shares outstanding before conversion		139,856			1,604,861
Shares converted into Investor Class (See Note 1)		17,718			204,748
Shares converted from Investor Class (See Note 1)		(26,828	)		(308,609	)
Net increase (decrease)		130,746		$	1,501,000
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		783,803		$	8,847,332
Shares issued to shareholders in reinvestment of dividends and distributions		235,333			2,642,230
Shares redeemed		(1,730,864	)		(19,574,338	)
Net increase (decrease) in shares outstanding before conversion		(711,728	)		(8,084,776	)
Shares converted into Class A (See Note 1)		18,230			204,774
Shares converted from Class A (See Note 1)		(8,857	)		(99,290	)
Net increase (decrease)		(702,355	)	$	(7,979,292	)
Year ended October 31, 2010:
Shares sold		3,367,729		$	38,621,093
Shares issued to shareholders in reinvestment of dividends and distributions		201,269			2,311,902
Shares redeemed		(2,938,502	)		(33,840,358	)
Net increase (decrease) in shares outstanding before conversion		630,496			7,092,637
Shares converted into Class A (See Note 1)		26,937			308,609
Shares converted from Class A (See Note 1)		(17,795	)		(204,748	)
Shares converted from Class A (a)		(25,085	)		(282,703	)
Net increase (decrease)		614,553		$	6,913,795
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		6,855,220		$	77,540,541
Shares issued to shareholders in reinvestment of dividends and distributions		1,634,934			18,378,195
Shares redeemed		(9,894,567	)		(111,378,367	)
Net increase (decrease)		(1,404,413	)	$	(15,459,631	)
Year ended October 31, 2010:
Shares sold		15,072,713		$	172,634,005
Shares issued to shareholders in reinvestment of dividends and distributions		1,474,481			16,945,975
Shares redeemed		(13,455,611	)		(154,553,006	)
Net increase (decrease) in shares outstanding before conversion		3,091,583			35,026,974
Shares converted into Class I (a)		25,062			282,703
Net increase (decrease)		3,116,645		$	35,309,677

(a)  In addition to any automatic conversion features described above in Note 1 with respect to Investor Class, Class A and B shares, an investor generally may also elect to convert their shares on a voluntary basis into another share class of the same fund for which an investor is eligible. However, the following limitations apply:

•  Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and

•  All Class B and C shares are ineligible for a voluntary conversion.

These limitations do not impact any automatic conversion features described in Note 1 with respect to Investor Class, Class A and B shares.

An investor or an investor’s financial intermediary may contact the Fund to request a voluntary conversion between shares classes of the same Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will

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Notes to Financial Statements (unaudited) (continued)

be made on the basis of the relevant NAVs of the two classes without the imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an investor may automatically be converted back to their original share class, or into another share class, if appropriate.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustments or disclosure have been identified.

40    MainStay Indexed Bond Fund

Board Consideration and Approval of Management Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreement. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Indexed Bond Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”).

The Board previously considered and approved this agreement (the “Agreement”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreement in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decision to approve the Agreement, the Board particularly considered information presented to the Board by New York Life Investments as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreement, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments; (ii) the investment performance of the Fund and New York Life Investments; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decision to approve the Agreement was based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year with respect to New York Life Investments and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreement also were based, in part, on the Board’s consideration of the Agreement earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decision to approve the Agreement is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments

In considering the approval of the Agreement, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds and serves a variety of other investment advisory clients, including other pooled investment vehicles. The Board considered the experience of senior personnel at New York Life Investments providing investment advisory, management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and New York Life Investments’ method for compensating portfolio managers. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreement, that the Fund likely would continue to benefit from the nature, extent and

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Board Consideration and Approval of Management Agreement (Unaudited) (continued)

quality of these services as a result of New York Life Investments’ experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreement, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments to enhance investment returns, supported a determination to approve the Agreement. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments

The Board considered the costs of the services provided by New York Life Investments under the Agreement, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Fund.

In evaluating any costs and profits of New York Life Investments and its affiliates due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ investments in personnel, systems, equipment and other resources necessary to manage the Fund. The Board acknowledged that New York Life Investments must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreement, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreement, that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund supported the Board’s determination to approve the Agreement.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of

42    MainStay Indexed Bond Fund

management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreement, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreement and the Fund’s expected total ordinary operating expenses. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreement, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreement.

mainstayinvestments.com    43

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the Fund’s website at www.mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

44    MainStay Indexed Bond Fund

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23045 MS136-11 MSIN10-06/11

B3

MainStay Intermediate Term Bond Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	22
Notes to Financial Statements	30
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	38
Proxy Voting Policies and Procedures and Proxy Voting Record	41
Shareholder Reports and Quarterly Portfolio Disclosure	41

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

															Gross
															Expense
Class	Sales Charge		Six Months			One Year			Five Years			Ten Years			Ratio2
Investor Class Shares3	Maximum 4.5% Initial Sales Charge	With sales charges		–3	.39%		1	.94%		5	.52%		4	.76%		1	.17%
		Excluding sales charges		1	.16		6	.74		6	.49		5	.25		1	.17
Class A Shares4	Maximum 4.5% Initial Sales Charge	With sales charges		–3	.34		1	.96		5	.61		4	.81		1	.06
		Excluding sales charges		1	.22		6	.76		6	.58		5	.29		1	.06
Class B Shares4	Maximum 5% CDSC	With sales charges		–4	.11		0	.87		5	.34		4	.46		1	.91
	if Redeemed Within the First Six Years of Purchase	Excluding sales charges		0	.79		5	.87		5	.67		4	.46		1	.91
Class C Shares4	Maximum 1% CDSC	With sales charges		–0	.10		4	.96		5	.70		4	.48		1	.91
	if Redeemed Within One Year of Purchase	Excluding sales charges		0	.88		5	.96		5	.70		4	.48		1	.91
Class I Shares	No Sales Charge			1	.49		7	.27		6	.95		5	.64		0	.81

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Performance figures for Class A, B and C shares, first offered on January 2, 2004, include the historical performance of Class I shares through January 1, 2004, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class A, B and C shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
Barclays Capital U.S. Aggregate Bond Index5		0	.02%		5	.36%		6	.33%		5	.74%
Average Lipper Intermediate Investment Grade Debt Fund6		0	.78		6	.16		5	.84		5	.31

5.

The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. The Barclays Capital U.S. Aggregate Bond Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.

6.

The average Lipper intermediate investment grade debt fund is representative of funds that invest primarily in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of five to ten years. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Intermediate Term Bond Fund

Cost in Dollars of a $1,000 Investment in MainStay Intermediate Term Bond Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,011.60	$	5.29	$	1,019.50	$	5.31
Class A Shares	$	1,000.00	$	1,012.20	$	4.79	$	1,020.00	$	4.81
Class B Shares	$	1,000.00	$	1,007.90	$	9.01	$	1,015.80	$	9.05
Class C Shares	$	1,000.00	$	1,008.80	$	9.02	$	1,015.80	$	9.05
Class I Shares	$	1,000.00	$	1,014.90	$	3.00	$	1,021.80	$	3.01

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.06% for Investor Class, 0.96% for Class A, 1.81% for Class B and Class C and 0.60% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Portfolio Composition as of April 30, 2011 (Unaudited)

Corporate Bonds	46.6
U.S. Government & Federal Agencies		31.50
Yankee Bonds		10.60
Mortgage-Backed Securities		9.20
Short-Term Investment		8.70
Municipal Bonds		0.70
Asset-Backed Securities		0.40
Common Stock		0.00
Foreign Government Bond		0.00
Warrants		0.00
Other Assets, Less Liabilities		(4.60	)

See Portfolio of Investments beginning on page 11 for specific holdings within these categories.

‡  Less than one-tenth of a percent.

Top Ten Issuers Held as of April 30, 2011 (excluding short-term investment)

1.	Federal National Mortgage Association (Mortgage Pass-Through Securities), 4.00%–6.50%, due 2/1/17–2/1/41
2.	United States Treasury Notes, 2.00%–3.625%, due 4/30/16–8/15/20
3.	United States Treasury Bonds, 3.875%–6.25%, due 5/15/30–8/15/40
4.	Government National Mortgage Association (Mortgage Pass-Through Securities), 4.00%–12.50%, due 1/15/14–11/20/40
5.	Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities), 4.00%–6.50%, due 1/1/21–2/1/41
6.	General Electric Capital Corp., 2.25%–5.40%, due 11/9/15–2/15/17
7.	Freddie Mac (Collateralized Mortgage Obligations), 5.00%, due 9/15/31–6/15/34
8.	Telecom Italia Capital S.A., 6.175%–6.999%, due 6/18/14–6/4/18
9.	Kraft Foods, Inc., 6.125%–7.00%, due 2/1/18–8/11/37
10.	AgriBank FCB, 9.125%, due 7/15/19

8    MainStay Intermediate Term Bond Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Gary Goodenough, Dan Roberts, PhD, and Louis N. Cohen of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay Intermediate Term Bond Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Intermediate Term Bond Fund returned 1.16% for Investor Class shares, 1.22% for Class A shares, 0.79% for Class B shares and 0.88% for Class C shares for the six months ended April 30, 2011. Over the same period, the Fund’s Class I shares returned 1.49%. All share classes outperformed the 0.78% return of the average Lipper¹ intermediate investment grade debt fund for the six-month reporting period. All share classes also outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index² for the six months ended April 30, 2011. The Barclays Capital U.S. Aggregate Bond Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s relative performance during the reporting period?

The Fund benefited from a tightening of credit-related spreads,³ with overweight positions relative to the Barclays Capital U.S. Aggregate Bond Index in corporate bonds (both investment-grade and high-yield), commercial mortgage-backed securities and asset-backed securities. Effective issue selection in investment-grade corporate bonds, notably a bias toward securities rated BBB,⁴ added to the Fund’s relative performance, as did nimble use of the new-issue pipeline and a variety of well-timed sales. A modest allocation to mortgage-backed securities collateralized by residential loans that did not conform to the standards of Fannie Mae and Freddie Mac also added value. Prices of non-agency securitizations of residential mortgages rallied sharply in light of strong supply-and-demand trends.

The Fund’s underweight position in agency mortgage pass-through securities⁵ detracted from performance. The underweight position was a by-product of our long-standing strategy to establish credit risk, not interest-rate risk, as the primary source of excess return. To position the Fund accordingly, we rotated a portion of the Fund’s assets from agency residential mortgage-backed securities to credit-related products. During the reporting period, our view was validated when investment-grade corporate-bond spreads tightened, on average, twice as much as spreads on agency mortgage pass-through securities.

Along the corporate yield curve,⁶ we believe there may be better return potential in the center than in short- or long-term securities. The Fund’s distribution of assets across the yield curve aligned with this view, and the Fund held an overweight position in the center relative to the curve distribution of the Barclays Capital U.S. Aggregate Bond Index. The Fund’s yield curve positioning detracted from performance when the center of the curve led the upswing in Treasury yields.

What was the Fund’s duration⁷ strategy during the reporting period?

We kept the Fund’s duration close to that of the Barclays Capital U.S. Aggregate Bond Index for most of the reporting period and maintained an intermediate duration that tracked the duration of the benchmark within 10%. For most of the reporting period, we held the Fund’s duration within 2% of the benchmark’s duration. At the end of the reporting period, the Fund had a duration of 5.1 years, which was approximately one-half year longer than it was when the reporting period began. As Treasury yields rose, the duration of mortgage-backed securities lengthened, which accounted for much of this change.

What specific factors, risks or market forces prompted significant decisions for the Fund during the reporting period?

We promoted credit risk as the principal driver of performance during the reporting period, while tending to neutralize interest-rate risk. We expected corporate bonds (both investment-grade and high-yield) and commercial mortgage-backed securities to have better returns than government-related securities because the low interest-rate environment sparked healthy demand for higher-yielding products.

Tighter underwriting standards limited refinancing opportunities, even for homeowners with pristine credit and substantial equity in their homes. We expected the absence of credit availability to slow principal payment rates from loans that were issued in 2003 through 2005. This gave us confidence to emphasize higher-coupon mortgage-backed securities originated prior to 2006.

1. See footnote on page 6 for more information on Lipper Inc.

2. See footnote on page 6 for more information on the Barclays Capital U.S. Aggregate Bond Index.

3. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.

4. Debt rated BBB by Standard & Poor’s is deemed by Standard & Poor’s to exhibit adequate protection parameters. It is the opinion of Standard & Poor’s, however, that adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation than would be the case for debt in higher-rated categories. When applied to Fund holdings ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.

5. Pass-through mortgages consist of a pool of residential mortgage loans in which homeowners’ monthly payments of principal, interest and prepayments pass from the original bank through a government agency or investment bank to investors.

6. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.

7. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

mainstayinvestments.com    9

The pending Basel III accords,⁸ which establish international standards for bank capitalization, retained a differential between the risk weighting for Ginnie Mae mortgage-backed securities and those issued by Fannie Mae and Freddie Mac. This decision renewed the attractiveness of Ginnie Mae mortgages for overseas investors. We expected that Ginnie Mae mortgage-backed securities would appreciate in value faster than Fannie Mae and Freddie Mac issues as the Basel III accords percolated through global financial centers.

During the reporting period, which market segments were the strongest contributors to the Fund’s performance and which market segments were particularly weak?

During the reporting period, overweight positions in investment-grade corporate bonds, high-yield corporate bonds, and commercial mortgage-backed securities were positive contributors to the Fund’s performance. An emphasis on corporate bonds rated BBB was especially beneficial because their yields fell faster than yields of corporate bonds rated A and AA.⁹

The Fund’s best-performing corporate performance came from several sectors. In consumer financials, Discover Bank was buoyed by tighter underwriting standards. In commodities, Anglo American Capital and Incitec Pivot saw revenues rise with higher prices for raw materials. Two pipeline companies, Panhandle East and Williams, were helped by higher energy prices. Real estate investment trusts (REITs) such as Prologis found themselves well positioned to benefit from improving commercial real estate fundamentals.

In residential mortgage-backed securities, overweight positions in Ginnie Mae securities and higher-coupon Fannie Mae and Freddie Mac issues benefited performance, as did exposure to non-agency securitizations.

On the negative side, some of the Fund’s corporate bonds carried exposure to Eurozone countries whose economies are under stress. Examples included Irish Life & Permanent, an Irish financial services provider; Eni SPA, a European energy concern with some operations in North Africa; and Italy-based telecommunication company Telecom Italia. Emerging-market credits, such as CNOOC Finance and Petroleum Trinidad, were slowed by spillover from unrest in the Middle East and North Africa.

During the reporting period, some of the Fund’s non-investment-grade holdings in the gaming and lodging sector (such as Starwood Hotels & Resorts, Penn National Gaming and Host Marriott) and in the wireless telecommunications industry (such as Sector Nextel, Immarsat and SBA Telecommunications) had sluggish performance relative to the broader high-yield corporate-bond universe and detracted from performance. The price performance of these securities reflected expectations that consumer spending improvements would remain tepid. Retail holdings (such as J.C. Penney and Sears) were slowed by a similar effect and by concerns about leveraged buyout activity in an active equity market. In telecommunication services, Frontier Communications, a sizeable BB-rated¹⁰ corporate holding, suffered from higher costs associated with integration of recent acquisitions.

How did the Fund’s sector weightings change during the reporting period?

The Fund’s sector weightings saw little change during the reporting period. Most of the adjustments fell into three categories: corporate bond swaps to execute relative-value ideas, purchases of agency mortgage-backed securities to recycle mortgage principal payments, and mortgage dollar rolls.

How was the Fund positioned at the end of the reporting period?

As of April 30, 2011, the Fund had overweight positions relative to the Barclays Capital U.S. Aggregate Bond Index in high-yield corporate bonds, investment-grade corporate bonds, commercial mortgage-backed securities and asset-backed securities. On the same date, the Fund had underweight positions relative to the benchmark in U.S. Treasury securities, agency debentures and agency mortgage-backed securities. Because of the stronger demand for risk assets during the reporting period, the Fund benefited from its underweight position in government-related sectors and its overweight positions in credit-sensitive and commercial sectors.

8. The Basel III accords seek to strengthen global capital and liquidity regulations with the goal of promoting a more resilient banking sector.

9. Debt rated AA by Standard & Poor’s is deemed by Standard & Poor’s to differ from the highest-rated issues only in small degree. In the opinion of Standard & Poor’s, the obligor’s capacity to meet its financial commitment on the obligation is very strong. Debt rated A by Standard & Poor’s is deemed by Standard & Poor’s to be somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher-rated categories. In the opinion of Standard & Poor’s, however, the obligor’s capacity to meet its financial commitment on the obligation is still strong. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.

10. Debt rated BB by Standard & Poor’s is deemed by Standard & Poor’s to be less vulnerable to nonpayment than other speculative issues. In the opinion of Standard & Poor’s, however, debt rated BB faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

10    MainStay Intermediate Term Bond Fund

Portfolio of Investments^†††April 30, 2011 (unaudited)

	Principal
	Amount		Value
Long-Term Bonds 99.0%† Asset-Backed Securities 0.4%
Credit Cards 0.1%
Chase Issuance Trust Series 2006-C4, Class C4 0.509%, due 1/15/14 (a)	$	750,000	$	748,642
Diversified Financial Services 0.1%
Dominos Pizza Master Issuer LLC Series 2007-1, Class A2 5.261%, due 4/25/37 (b)		550,000		558,250
Home Equity 0.0%‡
Citicorp Residential Mortgage Securities, Inc. Series 2006-3, Class A3 5.61%, due 11/25/36 (c)		47,436		47,508
Series 2006-1, Class A3 5.706%, due 7/25/36 (c)		172,338		173,594
				221,102
Utilities 0.2%
Atlantic City Electric Transition Funding LLC Series 2002-1, Class A4 5.55%, due 10/20/23		675,000		771,933
Total Asset-Backed Securities (Cost $2,194,459)				2,299,927
Corporate Bonds 46.6%
Advertising 0.2%
Lamar Media Corp. 9.75%, due 4/1/14		970,000		1,130,050
Aerospace & Defense 0.1%
Alliant Techsystems, Inc. 6.875%, due 9/15/20		589,000		618,450
Agriculture 1.1%
Altria Group, Inc. 9.25%, due 8/6/19		470,000		618,658
Bunge, Ltd. Finance Corp. 4.10%, due 3/15/16		2,200,000		2,253,464
5.10%, due 7/15/15		2,000,000		2,124,306
Lorillard Tobacco Co. 8.125%, due 6/23/19		720,000		851,903
				5,848,331
Apparel 0.0%‡
Unifi, Inc. 11.50%, due 5/15/14		7,000		7,228
Auto Manufacturers 0.6%
Nissan Motor Acceptance Corp. 4.50%, due 1/30/15 (b)		3,240,000		3,406,442
Auto Parts & Equipment 0.0%‡
FleetPride Corp. 11.50%, due 10/1/14 (b)		25,000		25,031
Goodyear Tire & Rubber Co. (The) 10.50%, due 5/15/16		173,000		195,923
				220,954
Banks 5.9%
X  AgriBank FCB 9.125%, due 7/15/19		5,795,000		7,102,184
Bank of America Corp. 5.75%, due 8/15/16		1,400,000		1,495,165
Citigroup, Inc. 4.587%, due 12/15/15		425,000		449,760
8.50%, due 5/22/19		552,500		688,403
Discover Bank/Greenwood DE 7.00%, due 4/15/20		3,550,000		3,992,085
8.70%, due 11/18/19		2,000,000		2,459,364
Fifth Third Bancorp 5.45%, due 1/15/17		1,477,000		1,570,627
Goldman Sachs Group, Inc. (The) 5.95%, due 1/18/18		1,000,000		1,094,510
JPMorgan Chase & Co. 5.125%, due 9/15/14		2,140,000		2,315,596
5.15%, due 10/1/15		1,000,000		1,084,080
KeyBank N.A. 5.80%, due 7/1/14		3,765,000		4,138,932
Morgan Stanley 4.75%, due 4/1/14		3,135,000		3,297,879
5.625%, due 9/23/19		285,000		296,228
6.00%, due 5/13/14		1,490,000		1,631,735
6.00%, due 4/28/15		300,000		330,855
				31,947,403
Beverages 1.6%
Anheuser-Busch InBev Worldwide, Inc. 5.375%, due 11/15/14		2,500,000		2,781,745
7.75%, due 1/15/19		2,000,000		2,507,716

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest issuers held, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Corporate Bonds (continued)
Beverages (continued)
Constellation Brands, Inc. 7.25%, due 9/1/16	$	1,723,000	$	1,878,070
8.375%, due 12/15/14		1,061,000		1,206,887
				8,374,418
Building Materials 0.1%
USG Corp. 6.30%, due 11/15/16		630,000		601,650
Chemicals 1.1%
Dow Chemical Co. (The) 5.90%, due 2/15/15		2,005,000		2,254,602
8.55%, due 5/15/19		1,015,000		1,301,322
Nalco Co. 8.25%, due 5/15/17		1,077,000		1,172,584
Olin Corp. 8.875%, due 8/15/19		170,000		188,488
Westlake Chemical Corp. 6.625%, due 1/15/16		1,093,000		1,127,156
				6,044,152
Coal 0.3%
Consol Energy, Inc. 6.375%, due 3/1/21 (b)		515,000		517,575
8.00%, due 4/1/17		355,000		392,275
Peabody Energy Corp. 7.375%, due 11/1/16		441,000		497,227
7.875%, due 11/1/26		15,000		16,875
				1,423,952
Commercial Services 0.2%
Lender Processing Services, Inc. 8.125%, due 7/1/16		885,000		911,550
PHH Corp. 9.25%, due 3/1/16		360,000		396,900
Quebecor World, Inc. (Litigation Recovery Trust—Escrow Shares) 9.75%, due 8/1/49 (b)(d)(e)(f)		15,000		780
Service Corp. International 7.625%, due 10/1/18		10,000		11,200
				1,320,430
Computers 0.8%
Hewlett-Packard Co. 2.20%, due 12/1/15		4,000,000		3,972,368
6.125%, due 3/1/14		350,000		393,750
SunGard Data Systems, Inc. 4.875%, due 1/15/14		10,000		10,200
				4,376,318
Diversified Financial Services 2.3%
Alterra Finance LLC 6.25%, due 9/30/20		2,900,000		2,973,127
Citigroup, Inc. 5.00%, due 9/15/14		1,250,000		1,323,621
X  General Electric Capital Corp. 2.25%, due 11/9/15		5,000,000		4,901,325
5.40%, due 2/15/17		2,985,000		3,278,882
				12,476,955
Electric 3.9%
AES Corp. (The) 7.75%, due 10/15/15		1,000,000		1,092,500
AES Eastern Energy, L.P. Series 1999-A 9.00%, due 1/2/17		37,678		25,904
Allegheny Energy Supply Co. LLC 5.75%, due 10/15/19 (b)		1,605,000		1,659,466
Calpine Construction Finance Co., L.P. and CCFC Finance Corp. 8.00%, due 6/1/16 (b)		1,111,000		1,216,545
CMS Energy Corp. 6.25%, due 2/1/20		2,015,000		2,140,539
Entergy Corp. 3.625%, due 9/15/15		5,220,000		5,196,901
5.125%, due 9/15/20		1,550,000		1,530,414
N.V. Energy, Inc. 6.25%, due 11/15/20		5,000,000		5,163,950
NRG Energy, Inc. 7.375%, due 2/1/16		94,000		97,525
OGE Energy Corp. 5.00%, due 11/15/14		1,420,000		1,501,999
Public Service Co. of New Mexico 7.95%, due 5/15/18		604,000		683,783
Reliant Energy Mid-Atlantic Power Holdings LLC Series C 9.681%, due 7/2/26		1,000		1,090
Toledo Edison Co. (The) 7.25%, due 5/1/20		780,000		927,837
				21,238,453
Electrical Components & Equipment 0.3%
Belden, Inc. 7.00%, due 3/15/17		1,155,000		1,192,537
9.25%, due 6/15/19		137,000		153,098
				1,345,635
Entertainment 0.6%
NAI Entertainment Holdings LLC 8.25%, due 12/15/17 (b)		960,000		1,036,800
Peninsula Gaming LLC 8.375%, due 8/15/15		1,136,000		1,215,520

12    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Corporate Bonds (continued)
Entertainment (continued)
Penn National Gaming, Inc. 6.75%, due 3/1/15	$	1,164,000	$	1,187,280
				3,439,600
Environmental Controls 0.2%
Clean Harbors, Inc. 7.625%, due 8/15/16		990,000		1,059,300
Finance—Commercial 0.3%
Textron Financial Corp. 5.40%, due 4/28/13		1,305,000		1,376,351
Finance—Consumer Loans 0.2%
John Deere Capital Corp. 4.90%, due 9/9/13		930,000		1,011,758
Finance—Investment Banker/Broker 1.0%
Bear Stearns Cos., Inc. (The) 5.30%, due 10/30/15		225,000		246,929
5.70%, due 11/15/14		1,200,000		1,328,920
7.25%, due 2/1/18		275,000		323,110
Jefferies Group, Inc. 8.50%, due 7/15/19		800,000		959,480
Merrill Lynch & Co., Inc. Series C 5.00%, due 2/3/14		800,000		858,602
5.70%, due 5/2/17		625,000		654,172
6.15%, due 4/25/13		790,000		856,130
				5,227,343
Finance—Leasing Companies 0.5%
International Lease Finance Corp. 5.625%, due 9/20/13		1,010,000		1,035,250
5.75%, due 6/15/11		1,480,000		1,484,144
				2,519,394
Finance—Mortgage Loan/Banker 0.2%
Countrywide Financial Corp. 6.25%, due 5/15/16		750,000		811,538
Food 1.4%
X  Kraft Foods, Inc. 6.125%, due 2/1/18		5,020,000		5,697,966
7.00%, due 8/11/37		1,260,000		1,471,975
Tyson Foods, Inc. 10.50%, due 3/1/14		225,000		271,687
				7,441,628
Forest Products & Paper 0.0%‡
Georgia-Pacific Corp. 8.875%, due 5/15/31		50,000		61,250
Weyerhaeuser Co. 7.375%, due 10/1/19		131,000		150,447
				211,697
Health Care—Services 2.4%
CIGNA Corp. 4.375%, due 12/15/20		875,000		864,199
Coventry Health Care, Inc. 5.95%, due 3/15/17		1,635,000		1,716,909
6.125%, due 1/15/15		4,668,000		4,987,254
HCA, Inc. 5.75%, due 3/15/14		11,000		11,275
6.50%, due 2/15/16		177,000		181,867
8.50%, due 4/15/19		888,000		985,680
Roche Holdings, Inc. 6.00%, due 3/1/19 (b)		1,775,000		2,036,429
WellPoint, Inc. 5.00%, due 12/15/14		1,895,000		2,071,565
				12,855,178
Household Products & Wares 0.2%
Spectrum Brands, Inc. 9.50%, due 6/15/18 (b)		939,000		1,049,333
Insurance 2.9%
Crum & Forster Holdings Corp. 7.75%, due 5/1/17		1,090,000		1,144,500
Genworth Financial, Inc. 7.20%, due 2/15/21		480,000		481,655
8.625%, due 12/15/16		4,300,000		4,789,147
Health Care Service Corp. 4.70%, due 1/15/21 (b)		1,500,000		1,523,259
St. Paul Travelers Cos., Inc. (The) 6.25%, due 6/20/16		1,200,000		1,376,252
Teachers Insurance & Annuity Association of America 6.85%, due 12/16/39 (b)		4,500,000		5,211,589
Unum Group 7.125%, due 9/30/16		750,000		864,654
				15,391,056
Internet 0.2%
Expedia, Inc. 8.50%, due 7/1/16 (b)		993,000		1,102,230
Investment Management/Advisory Services 0.2%
Janus Capital Group, Inc. 6.70%, due 6/15/17		1,166,000		1,276,615

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Corporate Bonds (continued)
Leisure Time 0.1%
Brunswick Corp. 11.25%, due 11/1/16 (b)	$	430,000	$	520,300
Harley-Davidson Funding Corp. 6.80%, due 6/15/18 (b)		250,000		279,864
				800,164
Lodging 0.2%
Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC 2.81%, due 3/15/14 (a)(b)		10,000		9,775
Sheraton Holding Corp. 7.375%, due 11/15/15		177,000		200,895
Starwood Hotels & Resorts Worldwide, Inc. 6.75%, due 5/15/18		856,000		935,180
				1,145,850
Media 3.1%
Charter Communications Operating LLC 8.00%, due 4/30/12 (b)		1,141,000		1,198,050
CSC Holdings, Inc. 6.75%, due 4/15/12		180,000		186,750
8.50%, due 6/15/15		1,067,000		1,164,364
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc. 3.50%, due 3/1/16		5,000,000		5,076,490
DISH DBS Corp. 7.125%, due 2/1/16		480,000		511,200
Morris Publishing Group LLC 10.00%, due 9/1/14 (d)		4,224		4,118
NBC Universal, Inc. 5.15%, due 4/30/20 (b)		2,900,000		3,029,363
Rainbow National Services LLC 8.75%, due 9/1/12 (b)		15,000		15,019
Time Warner Cable, Inc. 8.25%, due 2/14/14		2,535,000		2,962,784
Time Warner, Inc. 7.70%, due 5/1/32		1,980,000		2,387,126
				16,535,264
Mining 0.1%
Alcoa, Inc. 5.90%, due 2/1/27		560,000		562,420
Miscellaneous—Manufacturing 0.7%
Actuant Corp. 6.875%, due 6/15/17		1,014,000		1,045,688
Cargill, Inc. 6.00%, due 11/27/17 (b)		1,525,000		1,731,317
SPX Corp. 7.625%, due 12/15/14		1,100,000		1,216,875
				3,993,880
Office & Business Equipment 0.8%
Xerox Corp. 4.25%, due 2/15/15		4,055,000		4,301,061
Oil & Gas 2.0%
Chesapeake Energy Corp. 6.50%, due 8/15/17		192,000		209,280
Concho Resources, Inc./Midland TX 7.00%, due 1/15/21		345,000		363,975
8.625%, due 10/1/17		131,000		144,755
Forest Oil Corp. 8.00%, due 12/15/11		10,000		10,362
Frontier Oil Corp. 8.50%, due 9/15/16		601,000		652,085
KazMunaiGaz Finance Sub B.V. 11.75%, due 1/23/15 (b)		165,000		206,250
Newfield Exploration Co.
6.625%, due 9/1/14		100,000		102,125
6.625%, due 4/15/16		2,865,000		2,961,694
Pemex Project Funding Master Trust 6.625%, due 6/15/35		25,000		25,379
Plains Exploration & Production Co. 7.625%, due 4/1/20		500,000		536,250
7.75%, due 6/15/15		453,000		471,120
Questar Market Resources, Inc. 6.05%, due 9/1/16		2,000,000		2,075,118
6.80%, due 3/1/20		1,306,000		1,358,496
Range Resources Corp. 7.50%, due 5/15/16		180,000		186,750
Tesoro Corp. 6.50%, due 6/1/17		670,000		691,775
Whiting Petroleum Corp. 7.00%, due 2/1/14		855,000		919,125
				10,914,539
Oil & Gas Services 0.3%
Halliburton Co. 6.15%, due 9/15/19		1,350,000		1,568,070
Packaging & Containers 0.1%
Greif, Inc. 6.75%, due 2/1/17		320,000		339,200
Pharmaceuticals 0.3%
Cardinal Health, Inc. 4.625%, due 12/15/20		1,000,000		1,010,636

14    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Corporate Bonds (continued)
Pharmaceuticals (continued)
Medco Health Solutions, Inc. 7.25%, due 8/15/13	$	155,000	$	173,790
Valeant Pharmaceuticals International 6.75%, due 10/1/17 (b)		500,000		497,500
				1,681,926
Pipelines 2.2%
Boardwalk Pipelines, L.P. 5.875%, due 11/15/16		2,445,000		2,706,309
Copano Energy LLC/Copano Energy Finance Corp. 7.125%, due 4/1/21		528,000		541,200
7.75%, due 6/1/18		110,000		116,325
Energy Transfer Partners, L.P. 8.50%, due 4/15/14		295,000		346,153
Kinder Morgan Energy Partners, L.P. 6.375%, due 3/1/41		4,185,000		4,395,296
MarkWest Energy Partners, L.P./MarkWest Energy Finance Corp. 6.75%, due 11/1/20		145,000		149,713
ONEOK Partners, L.P. 8.625%, due 3/1/19		200,000		254,693
ONEOK, Inc. 6.00%, due 6/15/35		1,425,000		1,403,652
Panhandle Eastern Pipeline Co., L.P. 8.125%, due 6/1/19		600,000		712,444
Plains All American Pipeline, L.P./PAA Finance Corp. 5.75%, due 1/15/20		1,117,000		1,211,473
				11,837,258
Real Estate Investment Trusts 1.7%
Equity One, Inc. 6.25%, due 12/15/14		850,000		922,171
HCP, Inc. 6.30%, due 9/15/16		540,000		604,903
Health Care REIT, Inc. 5.25%, due 1/15/22		3,000,000		3,012,873
Host Hotels & Resorts, L.P. 6.875%, due 11/1/14		10,000		10,325
Host Marriott, L.P. 6.375%, due 3/15/15		1,165,000		1,192,669
Series Q 6.75%, due 6/1/16		1,062,000		1,096,515
ProLogis 7.375%, due 10/30/19		2,000,000		2,307,284
				9,146,740
Retail 1.9%
Best Buy Co., Inc. 6.75%, due 7/15/13		1,620,000		1,774,081
CVS Caremark Corp. 5.75%, due 6/1/17		575,000		643,223
5.789%, due 1/10/26 (b)(f)		91,014		93,992
Home Depot, Inc. 5.40%, due 3/1/16		410,000		458,175
HSN, Inc. 11.25%, due 8/1/16		375,000		425,625
J.C. Penney Corp., Inc. 7.125%, due 11/15/23		439,000		452,170
Limited Brands, Inc. 8.50%, due 6/15/19		127,000		146,368
Nordstrom, Inc. 7.00%, due 1/15/38		2,005,000		2,407,131
Penske Auto Group, Inc. 7.75%, due 12/15/16		686,000		710,010
Sears Holding Corp. 6.625%, due 10/15/18 (b)		2,950,000		2,887,312
TJX Cos., Inc. 6.95%, due 4/15/19		330,000		398,133
				10,396,220
Savings & Loans 0.3%
Amsouth Bank/Birmingham AL 5.20%, due 4/1/15		1,435,000		1,435,000
Telecommunications 3.9%
Alltel Corp. 6.50%, due 11/1/13		2,635,000		2,933,864
American Tower Corp. 4.50%, due 1/15/18		2,750,000		2,717,445
Cellco Partnership/Verizon Wireless Capital LLC 8.50%, due 11/15/18		1,500,000		1,946,830
Corning, Inc. 8.875%, due 8/15/21		1,789,000		2,349,231
Crown Castle International Corp. 7.125%, due 11/1/19		243,000		259,706
Frontier Communications Corp. 8.25%, due 4/15/17		1,000,000		1,083,750
8.75%, due 4/15/22		3,720,000		4,026,900
GCI, Inc. 8.625%, due 11/15/19		1,187,000		1,308,667
MetroPCS Wireless, Inc. 6.625%, due 11/15/20		1,000,000		1,001,250
Nextel Communications, Inc. 5.95%, due 3/15/14		204,000		205,530
SBA Telecommunications, Inc. 8.00%, due 8/15/16		86,000		93,203
8.25%, due 8/15/19		1,070,000		1,181,013

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
Corporate Bonds (continued)
Telecommunications (continued)
Sprint Capital Corp. 6.875%, due 11/15/28	$	430,000	$	412,263
8.75%, due 3/15/32		500,000		547,500
Sprint Nextel Corp. 8.375%, due 8/15/17		139,000		155,854
tw telecom holdings, Inc. 8.00%, due 3/1/18		960,000		1,042,800
				21,265,806
Transportation 0.1%
Burlington Northern Santa Fe 5.65%, due 5/1/17		455,000		513,430
Kansas City Southern Railway 8.00%, due 6/1/15		175,000		189,875
				703,305
Total Corporate Bonds (Cost $237,081,105)				251,780,545
Foreign Government Bond 0.0%‡
Venezuela 0.0%‡
Republic of Venezuela 6.00%, due 12/9/20		169,000		101,485
Total Foreign Government Bond (Cost $128,393)				101,485
Mortgage-Backed Securities 9.2%
Commercial Mortgage Loans (Collateralized Mortgage Obligations) 9.2%
Banc of America Commercial Mortgage, Inc. Series 2005-5, Class A2 5.001%, due 10/10/45		41,690		41,713
Series 2007-2, Class A4 5.826%, due 4/10/49 (g)		2,560,000		2,774,784
Bayview Commercial Asset Trust  Series 2006-4A, Class A1 0.443%, due 12/25/36 (a)(b)(d)		182,106		135,576
Bear Stearns Commercial Mortgage Securities
Series 2005-PW10, Class A4 5.405%, due 12/11/40 (a)		2,550,000		2,781,371
Series 2007-PW16, Class A4 5.906%, due 6/11/40 (g)		2,270,000		2,509,790
Citigroup Commercial Mortgage Trust Series 2008-C7, Class A4 6.294%, due 12/10/49 (g)		1,300,000		1,455,586
Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2006-CD3, Class A5 5.617%, due 10/15/48		3,390,000		3,731,833
Commercial Mortgage Loan Trust 6.213%, due 12/10/49 (g)		990,000		1,095,137
Country Wide Alternative Loan Trust Series 2005-76, Class 2A1 1.306%, due 2/25/36 (a)		2,684,101		1,769,598
Four Times Square Trust Series 2006-4TS, Class A 5.401%, due 12/13/28 (b)		470,000		500,781
Greenwich Capital Commercial Funding Corp.
Series 2005-GG5, Class A5 5.224%, due 4/10/37		2,960,000		3,191,452
Series 2004-GG1, Class A7 5.317%, due 6/10/36		3,275,000		3,533,120
GS Mortgage Securities Corp. Series 2004-GG2, Class A6 5.396%, due 8/10/38 (g)		3,060,000		3,318,912
GS Mortgage Securities Corp. II
Series 2006-GG6, Class A4 5.553%, due 4/10/38		2,919,880		3,181,348
Series 2007-GG10, Class A4 6.002%, due 8/10/45 (g)		3,095,000		3,362,940
Harborview Mortgage Loan Trust Series 2005-11, Class 2A1A 0.524%, due 8/19/45 (a)		67,957		50,777
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2007-LDPX, Class A3 5.42%, due 1/15/49		2,565,000		2,779,870
Series 2007-CB18, Class A4 5.44%, due 6/12/47		2,260,000		2,450,256
JP Morgan Mortgage Trust
Series 2007-S3, Class 1A96 6.00%, due 8/25/37		699,601		632,418
Series 2007-S3, Class 1A97 6.00%, due 8/25/37		1,539,122		1,391,332
LB-UBS Commercial Mortgage Trust Series 2007-C6, Class A4 5.858%, due 7/15/40 (a)		1,680,000		1,840,678
Morgan Stanley Capital I Series 2007-IQ15, Class A4 6.071%, due 6/11/49 (g)		2,585,000		2,834,450
Mortgage Equity Conversion Asset Trust Series 2007-FF2, Class A 0.73%, due 2/25/42 (a)(b)(d)(f)		432,123		413,801

16    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Mortgage-Backed Securities (continued)
Commercial Mortgage Loans (Collateralized Mortgage Obligations) (continued)
Timberstar Trust Series 2006-1, Class A 5.668%, due 10/15/36 (b)	$	160,000	$	173,254
Wachovia Bank Commercial Mortgage Trust Series 2007-C33, Class A4 6.097%, due 2/15/51 (g)		990,000		1,081,022
WaMu Mortgage Pass-Through Certificate Series 2006-AR7, Class 2A 1.286%, due 7/25/46 (a)		3,835,489		2,522,003
Total Mortgage-Backed Securities (Cost $46,632,792)				49,553,802
Municipal Bonds 0.7%
Michigan 0.6%
Michigan Finance Authority Revenue Series A-2 6.65%, due 3/20/12		3,700,000		3,735,187
West Virginia 0.1%
Tobacco Settlement Finance Authority of West Virginia 7.467%, due 6/1/47		425,000		297,831
Total Municipal Bonds (Cost $4,125,000)				4,033,018
U.S. Government & Federal Agencies 31.5%
Fannie Mae (Collateralized Mortgage Obligations) 0.0%‡
Series 2006-B1, Class AB 6.00%, due 6/25/16		64,556		65,772
Series 1991-66, Class J 8.125%, due 6/25/21		927		1,064
				66,836
X  Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) 1.7%
4.00%, due 2/1/41		3,622,697		3,605,345
5.00%, due 8/1/33		1,048,104		1,113,051
5.044%, due 6/1/35 (a)		441,390		469,065
5.50%, due 1/1/21		361,865		392,816
5.50%, due 2/1/33		413,709		447,829
5.50%, due 7/1/34		990,383		1,071,444
5.50%, due 4/1/37		78,604		84,718
5.50%, due 5/1/37		60,388		65,086
5.50%, due 7/1/37		311,681		335,439
5.50%, due 1/1/38		387,017		419,298
6.00%, due 2/1/27		231,351		252,791
6.00%, due 3/1/36		499,106		548,086
6.50%, due 4/1/37		434,542		488,609
				9,293,577
X  Federal National Mortgage Association (Mortgage Pass-Through Securities) 14.7%
4.00%, due 2/1/41		496,010		494,874
4.50%, due 4/1/18		207,397		221,028
4.50%, due 7/1/18		833,035		887,784
4.50%, due 11/1/18		1,115,424		1,188,732
4.50%, due 2/1/21 TBA (h)		16,270,000		17,169,926
4.50%, due 6/1/23		1,909,419		2,018,799
5.00%, due 9/1/17		355,591		382,562
5.00%, due 9/1/20		227,578		244,697
5.00%, due 10/1/20		353,832		380,447
5.00%, due 12/1/20		733,073		788,216
5.00%, due 10/1/33		822,446		873,925
5.00%, due 6/1/35		4,277,109		4,537,469
5.00%, due 7/1/35		869,835		922,376
5.00%, due 1/1/36		1,196,439		1,268,709
5.00%, due 2/1/36		9,147,360		9,699,898
5.00%, due 5/1/36		3,384,455		3,588,890
5.00%, due 9/1/36		866,409		918,744
5.50%, due 2/1/17		264,131		286,929
5.50%, due 6/1/21		874,135		949,039
5.50%, due 6/1/33		5,348,187		5,791,776
5.50%, due 11/1/33		741,797		803,324
5.50%, due 12/1/33		547,388		592,789
5.50%, due 4/1/34		2,239,985		2,430,504
5.50%, due 5/1/34		1,949,608		2,111,312
5.50%, due 6/1/34		635,363		687,466
5.50%, due 3/1/35		954,933		1,033,242
5.50%, due 4/1/36		2,421,743		2,618,823
5.50%, due 12/1/36		828,841		894,220
5.50%, due 1/1/37		1,242,415		1,354,005
5.50%, due 4/1/37		3,130,843		3,374,866
5.50%, due 7/1/37		1,293,922		1,410,138
5.50%, due 8/1/37		747,733		808,584
5.50%, due 9/1/37		27,029		29,136
6.00%, due 8/1/17		41,748		45,669
6.00%, due 1/1/33		235,380		260,244
6.00%, due 3/1/33		308,517		340,529
6.00%, due 8/1/34		11,390		12,557
6.00%, due 9/1/35		815,583		900,209
6.00%, due 6/1/36		596,183		653,945
6.00%, due 12/1/36		638,826		703,854
6.00%, due 4/1/37		350,258		380,691
6.00%, due 9/1/37		156,305		171,156
6.00%, due 10/1/37		1,786,989		1,942,676
6.00%, due 11/1/37		101,280		110,903

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount		Value
U.S. Government & Federal Agencies (continued)
Federal National Mortgage Association (Mortgage Pass-Through Securities) (continued)
6.00%, due 1/1/38	$	17,215	$	18,845
6.00%, due 11/1/38		830,868		909,550
6.50%, due 6/1/31		70,796		80,088
6.50%, due 8/1/31		51,251		57,978
6.50%, due 10/1/31		38,096		43,097
6.50%, due 6/1/32		52,391		59,268
6.50%, due 6/1/36		29,382		33,110
6.50%, due 7/1/36		107,595		121,246
6.50%, due 8/1/36		20,018		22,558
6.50%, due 11/1/36		470,486		530,184
6.50%, due 2/1/37		120,454		135,625
6.50%, due 7/1/37		51,863		58,395
6.50%, due 8/1/37		194,902		219,449
6.50%, due 9/1/37		563,784		634,791
6.50%, due 3/1/38		206,516		232,527
				79,442,373
X  Freddie Mac (Collateralized Mortgage Obligations) 1.4%
Series 3104, Class QC 5.00%, due 9/15/31		2,400,000		2,536,501
Series 2690, Class PG 5.00%, due 4/15/32		1,250,000		1,346,398
Series 2734, Class PG 5.00%, due 7/15/32		1,804,000		1,940,287
Series 3113, Class QD 5.00%, due 6/15/34		1,565,000		1,683,967
				7,507,153
Freddie Mac Reference REMIC (Collateralized Mortgage Obligation) 0.1%
Series R001, Class AE 4.375%, due 4/15/15		272,853		276,405
X  Government National Mortgage Association (Mortgage Pass-Through Securities) 3.4%
4.00%, due 11/20/40		1,253,578		1,271,039
5.50%, due 5/1/36 TBA (h)		2,560,000		2,786,401
6.00%, due 2/15/29		37,433		41,781
6.00%, due 4/15/29		177,448		198,102
6.00%, due 8/15/32		394,740		440,735
6.00%, due 2/1/36 TBA (h)		6,020,000		6,648,338
6.50%, due 7/15/28		40,312		45,691
6.50%, due 5/15/29		21,979		24,912
6.50%, due 4/1/33 TBA (h)		6,030,000		6,804,481
12.50%, due 1/15/14		575		584
				18,262,064
X  United States Treasury Bonds 4.0%
3.875%, due 8/15/40		21,995,000		20,022,312
6.25%, due 5/15/30		1,240,000		1,587,007
				21,609,319
X  United States Treasury Notes 5.9%
2.00%, due 4/30/16		7,875,000		7,884,214
2.625%, due 8/15/20		17,545,000		16,682,821
3.625%, due 8/15/19		7,185,000		7,527,969
				32,095,004
United States Treasury Strip Principal 0.3%
(zero coupon), due 8/15/23 (zero coupon), due 8/15/28		820,000 2,210,000		504,007 1,033,241
				1,537,248
Total U.S. Government & Federal Agencies (Cost $164,995,648)				170,089,979
Yankee Bonds 10.6% (i)
Auto Manufacturers 0.2%
Volvo Treasury AB 5.95%, due 4/1/15 (b)		1,130,000		1,246,990
Banks 1.0%
Lloyds TSB Bank PLC 4.375%, due 1/12/15 (b)		5,000,000		5,170,095
UBS A.G. 3.875%, due 1/15/15		215,000		223,343
				5,393,438
Biotechnology 0.1%
FMC Finance III S.A. 6.875%, due 7/15/17		455,000		484,006
Building Materials 0.1%
Holcim Capital Corp, Ltd. 6.875%, due 9/29/39 (b)		500,000		513,004
Diversified Financial Services 1.1%
Irish Life & Permanent Group Holdings PLC 3.60%, due 1/14/13 (b)		5,000,000		4,304,325
RCI Banque S.A. 3.40%, due 4/11/14 (b)		975,000		985,733
Smurfit Capital Funding PLC 7.50%, due 11/20/25		528,000		513,480
				5,803,538
Electric 0.6%
SP PowerAssets, Ltd. 5.00%, due 10/22/13 (b)		305,000		329,419
Taqa Abu Dhabi National Energy Co. 6.25%, due 9/16/19 (b)		185,000		194,019

18    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount		Value
Yankee Bonds (continued)
Electric (continued)
TransAlta Corp. 6.65%, due 5/15/18	$	2,255,000	$	2,565,202
				3,088,640
Holding Company—Diversified 0.2%
EnCana Holdings Finance Corp. 5.80%, due 5/1/14		860,000		959,886
Insurance 0.2%
Fairfax Financial Holdings, Ltd. 7.75%, due 7/15/37		677,000		670,230
8.25%, due 10/1/15		438,000		479,610
8.30%, due 4/15/26		15,000		15,450
				1,165,290
Media 0.2%
Videotron Ltee 6.375%, due 12/15/15		15,000		15,488
6.875%, due 1/15/14		796,000		806,945
9.125%, due 4/15/18		252,000		282,240
				1,104,673
Mining 0.6%
Anglo American Capital PLC 9.375%, due 4/8/19 (b)		2,380,000		3,201,759
Miscellaneous—Manufacturing 0.7%
Siemens Financieringsmaatschappij N.V. 6.125%, due 8/17/26 (b)		265,000		302,794
Tyco Electronics Group S.A. 6.55%, due 10/1/17		2,945,000		3,442,711
				3,745,505
Oil & Gas 2.6%
CNOOC Finance 2011, Ltd. 4.25%, due 1/26/21 (b)		5,490,000		5,358,421
ENI S.p.A 4.15%, due 10/1/20 (b)		2,900,000		2,791,056
Gaz Capital S.A. 8.125%, due 7/31/14 (b)		3,085,000		3,538,186
Gazprom International S.A. 7.201%, due 2/1/20 (b)		217,357		236,376
Petroleum Co. of Trinidad & Tobago, Ltd. 9.75%, due 8/14/19 (b)		1,600,000		1,912,000
TNK-BP Finance S.A. 7.50%, due 7/18/16 (b)		285,000		320,084
				14,156,123
Telecommunications 3.0%
Inmarsat Finance PLC 7.375%, due 12/1/17 (b)		1,111,000		1,174,882
Intelsat Subsidiary Holding Co., Ltd. 8.50%, due 1/15/13		813,000		813,000
Qtel International Finance, Ltd. 6.50%, due 6/10/14 (b)		1,500,000		1,655,625
X  Telecom Italia Capital S.A.
6.175%, due 6/18/14		5,345,000		5,829,471
6.999%, due 6/4/18		1,320,000		1,470,954
Virgin Media Finance PLC 8.375%, due 10/15/19		180,000		203,400
Virgin Media Secured Finance PLC 6.50%, due 1/15/18		960,000		1,051,200
Vodafone Group PLC 5.625%, due 2/27/17		3,578,000		4,017,647
				16,216,179
Total Yankee Bonds (Cost $55,247,847)				57,079,031
Total Long-Term Bonds (Cost $510,405,244)				534,937,787
	Shares
Common Stock 0.0%‡
Commercial Services 0.0%‡
Quad/Graphics, Inc. (e)		22		881
Total Common Stock (Cost $1,078)				881
	Number of
	Warrants
Warrants 0.0%‡
Media 0.0%‡
ION Media Networks, Inc. Unsecured Debt Expires 12/19/12 (d)(e)(f)		1		0	(j	)
Second Lien Expires 12/19/12 (d)(e)(f)		1		0	(j	)
Total Warrants (Cost $4)				0	(j	)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Principal
	Amount			Value
Short-Term Investment 8.7%
Repurchase Agreement 8.7%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $46,946,413 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $47,890,000 and a Market Value of $47,889,741)	$	46,946,374		$	46,946,374
Total Short-Term Investment (Cost $46,946,374)					46,946,374
Total Investments (Cost $557,352,700) (k)		107.7	%		581,885,042
Other Assets, Less Liabilities		(7.7	)		(41,625,269	)
Net Assets		100.0	%	$	540,259,773

†††	On a daily basis New York Life Investments confirms that the value of the Fund’s liquid assets (liquid portfolio securities and cash) is sufficient to cover its potential senior securities (e.g., futures, swaps, options).
‡	Less than one-tenth of a percent.
(a)	Floating rate—Rate shown is the rate in effect at April 30, 2011.
(b)	May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.
(c)	Subprime mortgage investment and other asset-backed securities. The total market value of the securities at April 30, 2011 is $221,102, which represents less than one-tenth of a percent of the Fund’s net assets.
(d)	Illiquid security. The total market value of these securities at April 30, 2011 is $554,275, which represents 0.1% of the Fund’s net assets.
(e)	Non-income producing security.
(f)	Fair valued security. The total market value of these securities at April 30, 2011 is $508,573, which represents 0.1% of the Fund’s net assets.
(g)	Collateral strip rate—Bond whose interest is based on the weighted net interest rate of the collateral. Coupon rate adjusts periodically based on a predetermined schedule. Rate shown is the rate in effect at April 30, 2011.
(h)	TBA—Securities purchased on a forward commitment basis with an approximate principal amount and maturity date. The actual principal amount and maturity date will be determined upon settlement. The market value of these securities at April 30, 2011 is $33,409,146, which represents 6.2% of the Fund’s net assets. All or a portion of these securities were acquired under a mortgage dollar roll agreement.
(i)	Yankee Bond—dollar-denominated bond issued in the United States by a foreign bank or corporation.
(j)	Less than one dollar.
(k)	At April 30, 2011, cost is $557,373,282 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	28,736,246
Gross unrealized depreciation		(4,224,486	)
Net unrealized appreciation	$	24,511,760

20    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)			Total
Investments in Securities (a)
Long-Term Bonds
Asset-Backed Securities	$	—	$	2,299,927	$	—		$	2,299,927
Corporate Bonds (b)		—		251,685,773		94,772			251,780,545
Foreign Government Bond		—		101,485		—			101,485
Mortgage-Backed Securities (c)		—		49,140,001		413,801			49,553,802
Municipal Bonds		—		4,033,018		—			4,033,018
U.S. Government & Federal Agencies		—		170,089,979		—			170,089,979
Yankee Bonds		—		57,079,031		—			57,079,031
Total Long-Term Bonds		—		534,429,214		508,573			534,937,787
Common Stock		881		—		—			881
Warrants (d)		—		—		0	(d)		0	(d)
Short-Term Investment
Repurchase Agreement		—		46,946,374		—			46,946,374
Total Investments in Securities	$	881	$	581,375,588	$	508,573		$	581,885,042

(a)	For a complete listing of investments and their industries, see the Portfolio of Investments.
(b)	The level 3 securities valued at $780 and $93,992 are Commercial Services and Retail, respectively, within the Corporate Bonds section of the Portfolio of Investments.
(c)	The level 3 security valued at $413,801 is held in Commercial Mortgage Loans (Collateralized Mortgage Obligations) within the Mortgage-Backed Securities section of the Portfolio of Investments.
(d)	The level 3 security valued at less than one dollar is held in Media within the Warrants section of the Portfolio of Investments.

The Fund recognizes transfers between the levels as of the beginning of the period.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

																									Change in
																									Unrealized
																									Appreciation
																									(Depreciation)
																									from
	Balance									Change in												Balance			Investments
	as of			Accrued			Realized			Unrealized								Transfers		Transfers		as of			Still Held at
	October 31,			Discounts			Gain			Appreciation								in to		out of		April 30,			April 30,
Investments in Securities	2010			(Premiums)			(Loss)			(Depreciation)			Purchases		Sales			Level 3		Level 3		2011			2011 (a)
Long-Term Bonds
Corporate Bonds
Commericial Services	$	780		$	—		$	—		$	—		$	—	$	—		$	—	$	—	$	780		$	—
Media		177			—			(13,907	)		13,832			—		(102	)		—		—		—			(174	)
Retail		97,415			(66	)		(50	)		(1,309	)		—		(1,998	)		—		—		93,992			(1,264	)
Mortgage-Backed Securities
Commercial Mortgage Loans (Collateralized Mortgage Obligations)		420,511			—			—			3,577			—		(10,287	)		—		—		413,801			3,068
Warrants
Media		0	(b)		—			—			—			—		—			—		—		0	(b)		—
Total	$	518,883		$	(66	)	$	(13,957	)	$	16,100		$	—	$	(12,387	)	$	—	$	—	$	508,573		$	1,630

(a)	Included in “change in unrealized appreciation (depreciation) on investments” in the Statement of Operations.
(b)	Less than one dollar.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $557,352,700)	$	581,885,042
Receivables:
Interest		5,792,887
Fund shares sold		487,935
Investment securities sold		9,080
Other assets		46,309
Total assets		588,221,253
Liabilities
Payables:
Investment securities purchased		46,847,708
Fund shares redeemed		505,506
Manager (See Note 3)		183,843
Transfer agent (See Note 3)		132,993
Professional fees		65,164
Shareholder communication		34,663
NYLIFE Distributors (See Note 3)		30,291
Custodian		9,760
Trustees		3,452
Accrued expenses		2,350
Dividend payable		145,750
Total liabilities		47,961,480
Net assets	$	540,259,773
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	50,544
Additional paid-in capital		513,465,025
		513,515,569
Distributions in excess of net investment income		(183,299	)
Accumulated net realized gain (loss) on investments		2,395,161
Net unrealized appreciation (depreciation) on investments		24,532,342
Net assets	$	540,259,773
Investor Class
Net assets applicable to outstanding shares	$	4,803,347
Shares of beneficial interest outstanding		447,507
Net asset value per share outstanding	$	10.73
Maximum sales charge (4.50% of offering price)		0.51
Maximum offering price per share outstanding	$	11.24
Class A
Net assets applicable to outstanding shares	$	32,243,901
Shares of beneficial interest outstanding		3,018,205
Net asset value per share outstanding	$	10.68
Maximum sales charge (4.50% of offering price)		0.50
Maximum offering price per share outstanding	$	11.18
Class B
Net assets applicable to outstanding shares	$	7,125,543
Shares of beneficial interest outstanding		666,367
Net asset value and offering price per share outstanding	$	10.69
Class C
Net assets applicable to outstanding shares	$	20,726,056
Shares of beneficial interest outstanding		1,936,094
Net asset value and offering price per share outstanding	$	10.71
Class I
Net assets applicable to outstanding shares	$	475,360,926
Shares of beneficial interest outstanding		44,475,394
Net asset value and offering price per share outstanding	$	10.69

22    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Interest	$	13,016,545
Expenses
Manager (See Note 3)		1,619,841
Transfer agent (See Note 3)		403,920
Distribution/Service—Investor Class (See Note 3)		5,704
Distribution/Service—Class A (See Note 3)		41,487
Distribution/Service—Class B (See Note 3)		37,076
Distribution/Service—Class C (See Note 3)		105,768
Professional fees		64,939
Registration		44,909
Shareholder communication		36,944
Custodian		23,234
Trustees		8,984
Miscellaneous		13,246
Total expenses before waiver/reimbursement		2,406,052
Expense waiver/reimbursement from Manager (See Note 3)		(536,831	)
Net expenses		1,869,221
Net investment income (loss)		11,147,324
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		2,415,909
Net change in unrealized appreciation (depreciation) on investments		(6,160,458	)
Net realized and unrealized gain (loss) on investments		(3,744,549	)
Net increase (decrease) in net assets resulting from operations	$	7,402,775

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    23

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	11,147,324		$	22,159,089
Net realized gain (loss) on investments, futures transactions and foreign currency transactions		2,415,909			12,507,067
Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations		(6,160,458	)		20,362,570
Net increase (decrease) in net assets resulting from operations		7,402,775			55,028,726
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(108,346	)		(115,975	)
Class A		(797,067	)		(1,273,929	)
Class B		(146,395	)		(177,715	)
Class C		(417,949	)		(535,541	)
Class I		(12,269,645	)		(19,995,340	)
		(13,739,402	)		(22,098,500	)
From net realized gain on investments:
Investor Class		(35,958	)		(5,598	)
Class A		(264,034	)		(69,433	)
Class B		(58,238	)		(12,101	)
Class C		(166,355	)		(34,781	)
Class I		(3,659,553	)		(1,013,979	)
		(4,184,138	)		(1,135,892	)
Total dividends and distributions to shareholders		(17,923,540	)		(23,234,392	)
Capital share transactions:
Net proceeds from sale of shares		60,849,608			114,757,447
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		16,461,868			21,514,227
Cost of shares redeemed		(84,005,429	)		(185,802,260	)
Increase (decrease) in net assets derived from capital share transactions		(6,693,953	)		(49,530,586	)
Net increase (decrease) in net assets		(17,214,718	)		(17,736,252	)
Net Assets
Beginning of period		557,474,491			575,210,743
End of period	$	540,259,773		$	557,474,491
Undistributed (distributions in excess of) net investment income at end of period	$	(183,299	)	$	2,408,779

24    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	10.94		$	10.37		$	9.39		$	9.92
Net investment income (loss)		0.20			0.35			0.30			0.25
Net realized and unrealized gain (loss) on investments		(0.08	)		0.61			0.96			(0.54	)
Net realized and unrealized gain (loss) on foreign currency transactions		—			(0.01	)		0.01			—
Total from investment operations		0.12			0.95			1.27			(0.29	)
Less dividends and distributions:
From net investment income		(0.25	)		(0.36	)		(0.29	)		(0.24	)
From net realized gain on investments		(0.08	)		(0.02	)		—			—
Total dividends and distributions		(0.33	)		(0.38	)		(0.29	)		(0.24	)
Net asset value at end of period	$	10.73		$	10.94		$	10.37		$	9.39
Total investment return (a)		1.16	%(b)		9.33	%		13.72	%		(2.98	%)(b)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.75	%††		3.38	%		3.03	%		3.73	% ††
Net expenses		1.06	%††		1.07	%		1.17	%		1.20	% ††
Expenses (before waiver/reimbursement)		1.16	%††		1.17	%		1.25	%		1.34	% ††
Portfolio turnover rate		51	%(c)		185	%(c)		246	%(c)		114	%(c)
Net assets at end of period (in 000’s)	$	4,803		$	4,608		$	2,743		$	1,727

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.
(c)	The portfolio turnover rates not including mortgage dollar rolls were 33%, 79%, 130% and 92% for the six months ended April 30, 2011 and for years ended October 31, 2010, 2009 and 2008, respectively.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    25

Financial Highlights selected per share data and ratios

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.89		$	10.32		$	9.35		$	9.73		$	9.74		$	9.72
Net investment income (loss)		0.20			0.36			0.34			0.43			0.43			0.39
Net realized and unrealized gain (loss) on investments		(0.08	)		0.61			0.93			(0.41	)		0.01			0.00	‡
Net realized and unrealized gain (loss) on foreign currency transactions		—			(0.01	)		0.01			—			0.00	‡		(0.00	)‡
Total from investment operations		0.12			0.96			1.28			0.02			0.44			0.39
Less dividends and distributions:
From net investment income		(0.25	)		(0.37	)		(0.31	)		(0.40	)		(0.45	)		(0.37	)
From net realized gain on investments		(0.08	)		(0.02	)		—			—			—			—
Total dividends and distributions		(0.33	)		(0.39	)		(0.31	)		(0.40	)		(0.45	)		(0.37	)
Net asset value at end of period	$	10.68		$	10.89		$	10.32		$	9.35		$	9.73		$	9.74
Total investment return (a)		1.22	%(b)		9.48	%		13.89	%		0.07	%		4.63	%		4.14	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.83	%††		3.47	%		3.20	%		4.02	%		4.35	%		3.94	%
Net expenses		0.96	%††		0.96	%		1.00	%		1.03	%		1.10	%		1.10	%
Expenses (before waiver/reimbursement)		1.06	%††		1.06	%		1.08	%		1.16	%		1.38	%		1.32	%
Portfolio turnover rate		51	%(c)		185	%(c)		246	%(c)		114	%(c)		70	%		146	%(c)
Net assets at end of period (in 000’s)	$	32,244		$	35,837		$	33,134		$	16,211		$	10,821		$	9,468

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.
(c)	The portfolio turnover rates not including mortgage dollar rolls were 33%, 79%, 130%, 92% and 64% for the six months ended April 30, 2011 and for years ended October 31, 2010, 2009, 2008 and 2006, respectively.

26    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class B
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.90		$	10.33		$	9.36		$	9.74		$	9.76		$	9.73
Net investment income (loss)		0.16			0.27			0.23			0.30			0.35			0.32
Net realized and unrealized gain (loss) on investments		(0.08	)		0.61			0.95			(0.37	)		0.01			0.01
Net realized and unrealized gain (loss) on foreign currency transactions		—			(0.01	)		0.01			—			0.00	‡		(0.00	)‡
Total from investment operations		0.08			0.87			1.19			(0.07	)		0.36			0.33
Less dividends and distributions:
From net investment income		(0.21	)		(0.28	)		(0.22	)		(0.31	)		(0.38	)		(0.30	)
From net realized gain on investments		(0.08	)		(0.02	)		—			—			—			—
Total dividends and distributions		(0.29	)		(0.30	)		(0.22	)		(0.31	)		(0.38	)		(0.30	)
Net asset value at end of period	$	10.69		$	10.90		$	10.33		$	9.36		$	9.74		$	9.76
Total investment return (a)		0.79	%(b)		8.55	%		12.82	%		(0.79	%)		3.75	%		3.46	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.99	%††		2.62	%		2.29	%		3.13	%		3.60	%		3.19	%
Net expenses		1.81	%††		1.81	%		1.92	%		1.91	%		1.85	%		1.85	%
Expenses (before waiver/reimbursement)		1.91	%††		1.91	%		2.00	%		2.08	%		2.13	%		2.07	%
Portfolio turnover rate		51	%(c)		185	%(c)		246	%(c)		114	%(c)		70	%		146	%(c)
Net assets at end of period (in 000’s)	$	7,126		$	7,797		$	6,065		$	4,580		$	2,968		$	2,912

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.
(c)	The portfolio turnover rates not including mortgage dollar rolls were 33%, 79%, 130%, 92% and 64% for the six months ended April 30, 2011 and for years ended October 31, 2010, 2009, 2008 and 2006, respectively.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    27

Financial Highlights selected per share data and ratios

	Class C
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.91		$	10.34		$	9.37		$	9.75		$	9.76		$	9.73
Net investment income (loss)		0.16			0.27			0.23			0.30			0.35			0.32
Net realized and unrealized gain (loss) on investments		(0.07	)		0.61			0.95			(0.37	)		0.02			0.01
Net realized and unrealized gain (loss) on foreign currency transactions		—			(0.01	)		0.01			—			0.00	‡		(0.00	)‡
Total from investment operations		0.09			0.87			1.19			(0.07	)		0.37			0.33
Less dividends and distributions:
From net investment income		(0.21	)		(0.28	)		(0.22	)		(0.31	)		(0.38	)		(0.30	)
From net realized gain on investments		(0.08	)		(0.02	)		—			—			—			—
Total dividends and distributions		(0.29	)		(0.30	)		(0.22	)		(0.31	)		(0.38	)		(0.30	)
Net asset value at end of period	$	10.71		$	10.91		$	10.34		$	9.37		$	9.75		$	9.76
Total investment return (a)		0.88	%(b)		8.54	%		12.92	%		(0.89	%)		3.86	%		3.46	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.99	%††		2.63	%		2.27	%		3.11	%		3.60	%		3.19	%
Net expenses		1.81	%††		1.81	%		1.92	%		1.92	%		1.85	%		1.85	%
Expenses (before waiver/reimbursement)		1.91	%††		1.91	%		2.00	%		2.08	%		2.13	%		2.07	%
Portfolio turnover rate		51	%(c)		185	%(c)		246	%(c)		114	%(c)		70	%		146	%(c)
Net assets at end of period (in 000’s)	$	20,726		$	22,850		$	16,747		$	7,106		$	2,689		$	1,464

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.
(c)	The portfolio turnover rates not including mortgage dollar rolls were 33%, 79%, 130%, 92% and 64% for the six months ended April 30, 2011 and for years ended October 31, 2010, 2009, 2008 and 2006, respectively.

28    MainStay Intermediate Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	10.89		$	10.32		$	9.35		$	9.73		$	9.75		$	9.72
Net investment income (loss)		0.22			0.41			0.34			0.43			0.46			0.41
Net realized and unrealized gain (loss) on investments		(0.07	)		0.60			0.96			(0.38	)		0.01			0.03
Net realized and unrealized gain (loss) on foreign currency transactions		—			(0.01	)		0.01			—			0.00	‡		(0.00	)‡
Total from investment operations		0.15			1.00			1.31			0.05			0.47			0.44
Less dividends and distributions:
From net investment income		(0.27	)		(0.41	)		(0.34	)		(0.43	)		(0.49	)		(0.41	)
From net realized gain on investments		(0.08	)		(0.02	)		—			—			—			—
Total dividends and distributions		(0.35	)		(0.43	)		(0.34	)		(0.43	)		(0.49	)		(0.41	)
Net asset value at end of period	$	10.69		$	10.89		$	10.32		$	9.35		$	9.73		$	9.75
Total investment return (a)		1.49	%(b)		9.88	%		14.22	%		0.39	%		4.94	%		4.70	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		4.20	%††		3.84	%		3.50	%		4.35	%		4.75	%		4.34	%
Net expenses		0.60	%††		0.59	%		0.66	%		0.70	%		0.70	%		0.70	%
Expenses (before reimbursement/waiver)		0.81	%††		0.81	%		0.83	%		0.78	%		0.74	%		0.76	%
Portfolio turnover rate		51	%(c)		185	%(c)		246	%(c)		114	%(c)		70	%		146	%(c)
Net assets at end of period (in 000’s)	$	475,361		$	486,383		$	516,522		$	133,090		$	140,221		$	125,525

*	Unaudited.
††	Annualized.
‡	Less than one cent per share.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(b)	Total investment return is not annualized.
(c)	The portfolio turnover rates not including mortgage dollar rolls were 33%, 79%, 130%, 92% and 64% for the six months ended April 30, 2011 and for years ended October 31, 2010, 2009, 2008 and 2006, respectively.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    29

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Intermediate Term Bond Fund (the “Fund”), a diversified fund. The Fund is the successor of the MainStay Intermediate Term Bond Fund, a series of Eclipse Funds Inc. (the “Predecessor Fund”). The reorganization of the Predecessor Fund with and into the Fund occurred on February 26, 2010. All information and references to periods prior to February 26, 2010 relate to the Predecessor Fund.

The Fund currently offers five classes of shares.  Class I shares commenced operations on January 2, 1991. Class A shares, Class B shares and Class C shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class B shares and Class C shares are offered at NAV without an initial sales charge, although a declining CDSC may be imposed on redemptions made within six years of purchase of Class B shares and a 1.00% CDSC may be imposed on redemptions made within one year of purchase of Class C shares. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Class B shares convert to either Investor Class or Class A shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Investor Class and Class A shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek to maximize total return, consistent with liquidity, moderate risk to principal and investment in debt securities.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

30    MainStay Intermediate Term Bond Fund

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities are valued at the evaluated bid prices supplied by a pricing agent or brokers selected by the Fund’s Manager (as defined in Note 3(A)) in consultation with the Fund’s Subadvisor (as defined in Note 3(A)) whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by the Fund’s Manager, in consultation with the Fund’s Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Debt securities, including corporate bonds, U.S. government & federal agency bonds, municipal bonds, foreign bonds, Yankee bonds, convertible bonds, asset-backed securities, and mortgage-backed securities, are generally categorized as Level 2 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Foreign currency forward contracts are valued at their fair market values determined on the basis of the mean between the last current bid and ask prices based on dealer or exchange quotations and are generally categorized as Level 2 in the hierarchy.

Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund held securities with a value of $508,573 that were valued in such a manner.

Certain events may occur between the time that foreign markets close, on which securities held by the Fund principally trade, and the time at which the Fund’s NAV is calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisor, conclude that such events may have affected the accuracy of the last price reported on the local foreign market, the Manager or Subadvisor may, pursuant to procedures adopted by the Fund’s Board, adjust the value of the local price to reflect the impact on the price of such securities as a result of such events. In this instance, securities are generally categorized as Level 3 in the hierarchy. Additionally, foreign equity securities are also fair valued whenever the movement of a particular index exceeds certain thresholds. In such cases, the securities are fair valued by applying factors provided by a third party vendor in accordance with the Fund’s policies and procedures and are generally categorized as Level 2 in the hierarchy. At April 30, 2011, foreign equity securities held by the Fund were not fair valued.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued. Its illiquidity might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of a Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in determining value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor determines the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued in such manner as the Board in good faith deems appropriate to reflect their fair market value.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required. Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements.

mainstayinvestments.com    31

Notes to Financial Statements (unaudited) (continued)

Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income monthly and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method and include gains and losses from repayments of principal on mortgage-backed securities.

Interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Futures Contracts. A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., foreign currency, interest rate, security, or securities index). The Fund is subject to interest rate risk in the normal course of investing in these transactions. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking to market” such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. The Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin.” When the futures contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.

The use of futures contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract or notional amounts and variation margin reflect the extent of the Fund’s involvement in open futures positions. Risks arise from the possible imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts. However, the Fund’s activities in futures contracts have minimal counterparty risk as they are conducted through regulated exchanges that guarantee the futures against default by the counterparty. In the event of a bankruptcy or insolvency of a futures commission merchant that holds margin on behalf of the Fund, the Fund may not be entitled to the return of all of the margin owed to the Fund, potentially resulting in a loss. The Fund invests in futures contracts to help manage the duration and yield curve of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAV and may result in a loss to the Fund. As of April 30, 2011, the Fund had no open futures contracts.

(I) Foreign Currency Forward Contracts. The Fund may enter into foreign currency forward contracts, which are agreements to buy

32    MainStay Intermediate Term Bond Fund

or sell currencies of different countries on a specified future date at a specified rate. The Fund is subject to foreign currency exchange rate risk in the normal course of investing in these transactions. During the period the forward contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking to market” such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. Cash movement occurs on settlement date. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract. The Fund enters into foreign currency forward contracts to reduce currency risk versus the benchmark or for trade settlement.

The use of foreign currency forward contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract amount reflects the extent of the Fund’s involvement in these financial instruments. Risks arise from the possible movements in the foreign exchange rates underlying these instruments. While the Fund may enter into forward contracts to reduce currency exchange risks, changes in currency exchange rates may result in poorer overall performance for the Fund than if it had not engaged in such transactions. Exchange rate movements can be large, depending on the currency, and can last for extended periods of time, affecting the value of the Fund’s assets. Moreover, there may be an imperfect correlation between the Fund’s holdings of securities denominated in a particular currency and the forward contracts entered into by the Fund. Such imperfect correlation may prevent the Fund from achieving the intended hedge or expose the Fund to the risk of currency exchange loss. The unrealized appreciation (depreciation) on forward contracts reflects the Fund’s exposure at valuation date to credit loss in the event of a counterparty’s failure to perform its obligations. As of April 30, 2011, the Fund did not hold any foreign currency forward contracts.

(J) Rights/Warrants. A right is a certificate that permits the holder to purchase a certain number of shares, or a fractional share, of a new stock from the issuer at a specific price. A warrant is an instrument that entitles the holder to buy an equity security at a specific price for a specific period of time. The Fund generally enters into rights and warrants when securities are acquired through a corporate action. With respect to warrants in international markets, the securities are only purchased when the underlying security can not be purchased due to the many restrictions an industry and/or country might place on foreign investors. These investments can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of these investments do not necessarily move in tandem with the prices of the underlying securities, and are speculative investments.

There is risk involved in the purchase of rights and warrants in that these investments are speculative investments. The Fund could also lose the entire value of the investment in warrants if the warrant is not exercised by the date of its expiration. The securities are sold as soon as the opportunity becomes available. The Fund is exposed to risk until each sale is completed.

(K) Mortgage Dollar Rolls. The Fund may enter into mortgage dollar roll (“MDR”) transactions in which it sells mortgage-backed securities (“MBS”) from its portfolio to a counterparty from whom it simultaneously agrees to buy a similar security on a delayed delivery basis. The MDR transactions of the Fund are classified as purchase and sale transactions. The securities sold in connection with the MDRs are removed from the portfolio and a realized gain or loss is recognized. The securities the Fund has agreed to acquire are included at market value in the Portfolio of Investments and liabilities for such purchase commitments are included as payables for investments purchased. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future as well as by the earnings on the cash proceeds of the initial sale. MDRs may be renewed without physical delivery of the securities subject to the contract. The Fund maintains liquid assets from its portfolio having a value not less than the repurchase price, including accrued interest. MDR transactions involve certain risks, including the risk that the MBS returned to the Fund at the end of the roll, while substantially similar, could be inferior to what was initially sold to the counterparty.

(L) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(M) Concentration of Risk. The Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic instruments. These risks include those resulting from currency fluctuations, future adverse political and economic developments and possible imposition of currency exchange blockages or other foreign governmental laws or restrictions. These risks are likely to be greater in emerging markets than in developed markets. The ability of issuers of debt securities held by the Fund to meet their

mainstayinvestments.com    33

Notes to Financial Statements (unaudited) (continued)

obligations may be affected by economic or political developments in a specific country, industry or region.

(N) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

(O) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash flows. These derivatives are not accounted for as hedging instruments.

Fair value of derivatives as of April 30, 2011:

Asset Derivatives

	Statement of
	Assets and	Equity
	Liabilities	Contracts
	Location	Risk			Total
Warrants	Investment in securities, at value	$	0	(a)	$	0	(a)
Total Fair Value		$	0	(a)	$	0	(a)

(a)  Less than one dollar.

Number of Contracts, Notional Amounts or Shares/Units (1)

	Equity
	Contracts
	Risk		Total
Warrants (2)		2		2

(1)	Amount disclosed represents the weighted average held during the six-month period ended April 30, 2011.
(2)	Amount(s) represent(s) number of contracts or number of shares/units.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement, as amended (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. MacKay Shields LLC (the “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.60% up to $500 million, 0.575% from $500 million to $1 billion, and 0.55% in excess of $1 billion. The Manager has contractually agreed to waive a portion of its management fee so that it does not exceed average daily net assets as follows: 0.50% up to $1 billion and 0.475% in excess of $1 billion. This agreement may be modified or terminated only with the approval of the Board. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.60% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of Class I shares do not exceed 0.60% average of its daily net assets. This agreement also requires the Manager to waive a portion of the management fee in addition to the management fee waiver described above or other non-class specific expenses of the Investor Class, Class A, Class B and Class C shares to the extent necessary in order to maintain the expense limitation applicable to Class I shares. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $1,619,841 and waived/reimbursed its fees in the amount of $536,831.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from the Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service

34    MainStay Intermediate Term Bond Fund

activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and Class C shares of the Fund pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Fund’s Class B and Class C shares along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class B and Class C shares of the Fund for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $2,508 and $9,985, respectively, for the six-month period ended April 30, 2011. The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Class B and Class C shares of $214, $3,084 and $5,287, respectively, for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	5,422
Class A		23,803
Class B		8,809
Class C		25,124
Class I		340,762

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Class A	$	1,404	0.0	%‡
Class B		1,332	0.0	‡
Class C		1,334	0.0	‡
Class I		27,456,257	5.8

‡ Less than one-tenth of a percent.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $7,158. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

The tax character of distributions paid during the year ended October 31, 2010, shown in the Statement of Changes in Net Assets, was as follows:

	2010
Distributions paid from:
Ordinary Income	$	23,234,392

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities
(in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of U.S. Government securities were $216,234 and $182,312, respectively. Purchases and sales of securities, other than U.S. Government securities and short-term securities, were $79,858 and $90,366, respectively.

mainstayinvestments.com    35

Notes to Financial Statements (unaudited) (continued)

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		88,158		$	942,777
Shares issued to shareholders in reinvestment of dividends and distributions		13,358			141,592
Shares redeemed		(76,255	)		(810,803	)
Net increase (decrease) in shares outstanding before conversion		25,261			273,566
Shares converted into Investor Class (See Note 1)		25,032			266,467
Shares converted from Investor Class (See Note 1)		(24,173	)		(255,837	)
Net increase (decrease)		26,120		$	284,196
Year ended October 31, 2010:
Shares sold		269,857		$	2,875,264
Shares issued to shareholders in reinvestment of dividends and distributions		11,041			117,401
Shares redeemed		(117,560	)		(1,243,478	)
Net increase (decrease) in shares outstanding before conversion		163,338			1,749,187
Shares converted into Investor Class (See Note 1)		37,647			399,676
Shares converted from Investor Class (See Note 1)		(44,198	)		(470,733	)
Net increase (decrease)		156,787		$	1,678,130
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		468,186		$	4,986,037
Shares issued to shareholders in reinvestment of dividends and distributions		82,648			871,927
Shares redeemed		(854,168	)		(9,049,450	)
Net increase (decrease) in shares outstanding before conversion		(303,334	)		(3,191,486	)
Shares converted into Class A (See Note 1)		41,360			437,057
Shares converted from Class A (See Note 1)		(11,958	)		(126,632	)
Net increase (decrease)		(273,932	)	$	(2,881,061	)
Year ended October 31, 2010:
Shares sold		2,180,706		$	22,981,076
Shares issued to shareholders in reinvestment of dividends and distributions		105,518			1,113,761
Shares redeemed		(1,987,254	)		(21,106,748	)
Net increase (decrease) in shares outstanding before conversion		298,970			2,988,089
Shares converted into Class A (See Note 1)		91,766			969,156
Shares converted from Class A (See Note 1)		(11,656	)		(124,012	)
Shares converted from Class A (a)		(298,088	)		(3,079,252	)
Net increase (decrease)		80,992		$	753,981
Class B	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		80,657		$	860,718
Shares issued to shareholders in reinvestment of dividends and distributions		16,022			169,146
Shares redeemed		(115,730	)		(1,228,236	)
Net increase (decrease) in shares outstanding before conversion		(19,051	)		(198,372	)
Shares converted from Class B (See Note 1)		(30,237	)		(321,055	)
Net increase (decrease)		(49,288	)	$	(519,427	)
Year ended October 31, 2010:
Shares sold		372,653		$	3,943,633
Shares issued to shareholders in reinvestment of dividends and distributions		14,019			148,284
Shares redeemed		(184,752	)		(1,947,651	)
Net increase (decrease) in shares outstanding before conversion		201,920			2,144,266
Shares converted from Class B (See Note 1)		(73,461	)		(774,087	)
Net increase (decrease)		128,459		$	1,370,179
Class C	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		259,459		$	2,766,005
Shares issued to shareholders in reinvestment of dividends and distributions		35,884			379,228
Shares redeemed		(454,196	)		(4,828,591	)
Net increase (decrease)		(158,853	)	$	(1,683,358	)
Year ended October 31, 2010:
Shares sold		1,083,145		$	11,418,024
Shares issued to shareholders in reinvestment of dividends and distributions		34,666			366,734
Shares redeemed		(642,695	)		(6,797,055	)
Net increase (decrease)		475,116		$	4,987,703
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		4,837,306		$	51,294,071
Shares issued to shareholders in reinvestment of dividends and distributions		1,410,697			14,899,975
Shares redeemed		(6,433,921	)		(68,088,349	)
Net increase (decrease)		(185,918	)	$	(1,894,303	)
Year ended October 31, 2010:
Shares sold		6,992,907		$	73,539,450
Shares issued to shareholders in reinvestment of dividends and distributions		1,873,419			19,768,047
Shares redeemed		(14,538,955	)		(154,707,328	)
Net increase (decrease) in shares outstanding before conversion		(5,672,629	)		(61,399,831	)
Shares converted into Class I (a)		298,088			3,079,252
Net increase (decrease)		(5,374,541	)	$	(58,320,579	)

36    MainStay Intermediate Term Bond Fund

(a)  In addition to any automatic conversion features described above in Note 1 with respect to Investor Class, Class A and B shares, an investor generally may also elect to convert their shares on a voluntary basis into another share class of the same fund for which an investor is eligible. However, the following limitations apply:

 •  Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and

 •  All Class B and C shares are ineligible for a voluntary conversion.

These limitations do not impact any automatic conversion features described in Note 1 with respect to Investor Class, Class A and B shares.

An investor or an investor’s financial intermediary may contact the Fund to request a voluntary conversion between shares classes of the same Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will be made on the basis of the relevant NAVs of the two classes without the imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an investor may automatically be converted back to their original share class, or into another share class, if appropriate.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

mainstayinvestments.com    37

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Intermediate Term Bond Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and MacKay Shields LLC (“MacKay Shields”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and MacKay Shields as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and MacKay Shields in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and MacKay Shields at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and MacKay Shields on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates, including MacKay Shields as subadvisor to the Fund, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and MacKay Shields; (ii) the investment performance of the Fund, New York Life Investments and MacKay Shields; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates, including MacKay Shields as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and MacKay Shields

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing MacKay Shields’ compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

38    MainStay Intermediate Term Bond Fund

The Board also examined the nature, extent and quality of the services that MacKay Shields provides to the Fund. The Board evaluated MacKay Shields’ experience in serving as subadvisor to the Fund and managing other portfolios. It examined MacKay Shields’ track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at MacKay Shields, and MacKay Shields’ overall legal and compliance environment. The Board also reviewed MacKay Shields’ willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and MacKay Shields’ experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and MacKay Shields to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and MacKay Shields

The Board considered the costs of the services provided by New York Life Investments and MacKay Shields under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Fund. Because MacKay Shields is an affiliate of New York Life Investments whose subadvisory fees are paid directly by New York Life Investments, the Board considered cost and profitability information for New York Life Investments and MacKay Shields in the aggregate.

In evaluating any costs and profits of New York Life Investments and its affiliates, including MacKay Shields, due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and MacKay Shields must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the

mainstayinvestments.com    39

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)

profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates (including MacKay Shields) due to their relationships with the Fund supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to MacKay Shields are paid by New York Life Investments, not the Fund. The Board also considered the impact of the management fee waiver for all classes of the Fund and the expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the total ordinary operating expenses for Class I shares of the Fund.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and MacKay Shields on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and MacKay Shields about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

40    MainStay Intermediate Term Bond Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; and (ii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the Fund’s website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com    41

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23041 MS136-11 MSIT10-06/11

B4

MainStay Retirement Funds

Message from the President and Semiannual Report

Unaudited - April 30, 2011

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

This page intentionally left blank

Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
MainStay Retirement 2010 Fund	5
MainStay Retirement 2020 Fund	22
MainStay Retirement 2030 Fund	39
MainStay Retirement 2040 Fund	56
MainStay Retirement 2050 Fund	73
Notes to Financial Statements	90
Board Consideration and Approval of Management Agreements	103
Proxy Voting Policies and Procedures and Proxy Voting Record	107
Shareholder Reports and Quarterly Portfolio Disclosure	107

Investors should refer to each Fund’s Summary Prospectus and/or Prospectus and consider each Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about each Fund. You may obtain copies of each Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read each Fund’s Summary Prospectus and/or Prospectus carefully before investing.

MainStay Retirement 2010 Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(6/29/07)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		2	.42%		6	.55%		2	.14%		2	.90%
		Excluding sales charges		8	.39		12	.75		3	.65		2	.90
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		2	.43		6	.68		2	.17		1	.87
		Excluding sales charges		8	.40		12	.89		3	.69		1	.87
Class I Shares	No Sales Charge			8	.59		13	.18		3	.96		1	.63
Class R2 Shares4	No Sales Charge			8	.38		12	.76		3	.61		1	.97
Class R3 Shares5	No Sales Charge			8	.23		12	.49		3	.32		2	.22

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008 includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Class R2 shares were first offered on June 29, 2007, although this class did not commence investment operations until January 8, 2009. Performance figures for Class R2 shares includes the historical performance of Class A shares through January 7, 2009, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R2 shares might have been lower.
5.	Class R3 shares were first offered on June 29, 2007, although this class did not commence investment operations until May 1, 2008. Performance figures for Class R3 shares include the historical performance of Class A shares through April 30, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R3 shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Since
Benchmark Performance	Months			Year			Inception
S&P 500® Index6		16	.36%		17	.22%		–0	.36%
MSCI EAFE® Index7		12	.71		19	.18		–3	.16
Barclays Capital U.S. Aggregate Bond Index8		0	.02		5	.36		6	.64
Average Lipper Mixed-Asset Target 2010 Fund9		7	.13		11	.60		2	.11

6.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500 Index is the Fund’s broad-based securities market index. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
7.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE® Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
8.	The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
9.	The average Lipper mixed-asset target 2010 fund is representative of funds that seek to maximize assets for retirement or other purposes with an expected time horizon not exceeding December 31, 2010. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Retirement 2010 Fund

Cost in Dollars of a $1,000 Investment in MainStay Retirement 2010 Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,083.90	$	2.43	$	1,022.50	$	2.36
Class A Shares	$	1,000.00	$	1,084.00	$	1.91	$	1,023.00	$	1.86
Class I Shares	$	1,000.00	$	1,085.90	$	0.62	$	1,024.20	$	0.60
Class R2 Shares	$	1,000.00	$	1,083.80	$	2.43	$	1,022.50	$	2.36
Class R3 Shares	$	1,000.00	$	1,082.30	$	3.72	$	1,021.20	$	3.61

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.47% for Investor Class, 0.37% for Class A, 0.12% for Class I, 0.47% for Class R2 and 0.72% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

mainstayinvestments.com    7

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

See Portfolio of Investments beginning on page 12 for specific holdings within these categories.

8    MainStay Retirement 2010 Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Retirement 2010 Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Retirement 2010 Fund returned 8.39% for Investor Class shares and 8.40% for Class A shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 8.59%, Class R2 shares returned 8.38% and Class R3 shares returned 8.23%. All share classes outperformed the 7.13% return of the average Lipper² mixed-asset target 2010 fund for the six months ended April 30, 2011. Over the same period, all share classes underperformed the 16.36% return of the S&P 500^® Index.³ The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index,⁴ which is an additional benchmark for the Fund. All share classes underperformed the 12.71% return of the MSCI EAFE^® Index,⁵ which is a secondary benchmark for the Fund. See page 5 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in fixed-income securities or in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility (pre-ferring stocks over bonds, high-yield bonds over investment- grade bonds, etc.) as we had done for some time.

We maintained a modest overweight in Underlying Equity Funds relative to the Fund’s target allocation. In the fixed-income portion of the Fund, we emphasized Underlying Funds that invest in convertible and high-yield bonds. This mix contributed positively to relative performance.

During the reporting period, the equity portion of the Fund reflected our preference for Underlying Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ holdings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum. Underlying Fixed Income Funds were selected based upon the type and country of issuance of the securities in which they invested and the average credit quality and duration⁶ of those securities.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery (such as stocks over bonds, lower-credit-quality bonds over U.S. Treasury securities and shorter-duration debt instruments over longer-dated securities). As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.

2. See footnote on page 6 for more information on Lipper Inc.

3. See footnote on page 6 for more information on the S&P 500^® Index.

4. See footnote on page 6 for more information on the Barclays Capital U.S. Aggregate Bond Index.

5. See footnote on page 6 for more information on the MSCI EAFE^® Index.

6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

mainstayinvestments.com    9

How did the Fund’s allocations change over the course of the reporting period?

During the reporting period, the Fund shifted out of MainStay Indexed Bond Fund, MainStay Intermediate Term Bond Fund and MainStay High Yield Opportunities Fund into MainStay Flexible Bond Opportunities Fund. MainStay Flexible Bond Opportunities Fund is a multisector bond fund that can move among security types somewhat more nimbly than is possible at the fund-of-funds level.

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underlying Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund, MainStay MAP Fund and MainStay Epoch U.S. All Cap Fund.

In an effort to curb expenses, we reduced the Fund’s positions in several Underlying Funds of unaffiliated investment companies. These included T. Rowe Price Emerging Market Equity Fund, American Century Inflation-Adjusted Bond Fund and American Century International Bond Fund. The proceeds were redirected to lower-cost Exchange Traded Funds (ETFs) that participate in the same respective market segments.

We lowered the Fund’s asset allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

Early in the reporting period, we initiated a position in MainStay Epoch International Small Cap Fund to access an additional market segment. The position was later enlarged.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Under-lying Equity Funds had the lowest total returns?

Among the Underlying Equity Funds in which the Fund invested, the highest total returns came from Columbia Small Cap Index Fund and MainStay Large Cap Growth Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and Vanguard MSCI Emerging Markets ETF.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

The strongest contributions to the Fund’s absolute return came from a large position in MainStay Common Stock Fund and an allocation to MainStay Epoch U.S. All Cap Fund. (Contributions take weightings and total returns into account.) Although all of the Fund’s Underlying Equity Funds posted positive returns, some of the smallest contributions from Underlying Equity Funds came from MainStay S&P 500 Index Fund and MainStay Growth Equity Fund. Both Underlying Fund positions were of negligible size.

What factors and risks affected the Fund’s Underlying Fixed Income Fund investments during the reporting period?

We anticipated that the yield curve⁷ would eventually rise and flatten in response to several factors. First, we believed the Federal Reserve would eventually need to normalize monetary policy; second, public debt was growing; and third, corporate fundamentals were improving. With these factors in mind, we kept the Fund’s duration shorter than that of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s fixed-income benchmark, through investments in cash and Underlying Funds that invest in floating-rate instruments. At the same time, credit quality was held lower than that of the Barclays Capital U.S. Aggregate Bond Index. Both positioning strategies contributed positively, if only marginally, to relative performance as interest rates moved up slightly and credit spreads⁸ continued to narrow.

During the reporting period, which fixed-income market segments were strong performers and which segments were particularly weak?

The best results came from Underlying Fixed Income Funds that invest in security types that are either directly linked to equity markets (convertible bonds) or especially sensitive to corporate fundamentals (high-yield bonds). Longer-dated U.S. Treasury bonds trailed the broader market and lost value as yields rose modestly during the reporting period.

7. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The U.S. Treasury yield curve is said to flatten when the differential in yield between shorter-maturity and longer-maturity Treasury securities narrows.

8. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.

10    MainStay Retirement 2010 Fund

Which Underlying Fixed Income Funds made the strongest contributions to the Fund’s overall perfor-mance, and which Underlying Fixed Income Funds were the greatest detractors?

The strongest contributions to return came from positions in MainStay Convertible Fund and MainStay High Yield Corporate Bond Fund. At the other end of the spectrum, a very large position in MainStay Indexed Bond Fund detracted from the Fund’s performance. Several other Underlying Fixed Income Funds investing in other sectors, including inflation-indexed bonds and international bonds, also detracted from the Fund’s returns.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    11

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 91.3%†
Equity Funds 47.1%
MainStay 130/30 Core Fund Class I		141,369		$	1,201,634
MainStay 130/30 Growth Fund Class I (a)		16,499			151,300
MainStay 130/30 International Fund Class I		55,694			427,170
MainStay Common Stock Fund Class I		257,523			3,195,856
MainStay Epoch Global Choice Fund Class I		34,613			567,303
MainStay Epoch International Small Cap Fund Class I		62,904			1,367,524
MainStay Epoch U.S. All Cap Fund Class I		179,167			4,694,169
MainStay Growth Equity Fund Class I (a)		5,118			62,024
MainStay ICAP Equity Fund Class I		43,678			1,723,980
MainStay ICAP International Fund Class I		60,806			2,009,637
MainStay ICAP Select Equity Fund Class I		45,212			1,726,649
MainStay International Equity Fund Class I		18,092			241,168
MainStay Large Cap Growth Fund Class I (a)		438,422			3,511,758
MainStay MAP Fund Class I		125,454			4,372,076
MainStay U.S. Small Cap Fund Class I		46,548			855,549
Total Equity Funds (Cost $22,733,252)					26,107,797
Fixed Income Funds 44.2%
MainStay Cash Reserves Fund Class I		1,367,878			1,367,878
MainStay Convertible Fund Class I		81,140			1,409,397
MainStay Flexible Bond Opportunities Fund Class I		290,757			2,640,074
MainStay Floating Rate Fund Class I		157,207			1,499,751
MainStay Global High Income Fund Class I		68,076			816,910
MainStay High Yield Corporate Bond Fund Class I		250,939			1,508,141
MainStay High Yield Opportunities Fund Class I		49,812			603,716
MainStay Indexed Bond Fund Class I		945,287			10,691,193
MainStay Intermediate Term Bond Fund Class I		370,048			3,955,813
Total Fixed Income Funds (Cost $24,145,252)					24,492,873
Total Affiliated Investment Companies (Cost $46,878,504)					50,600,670
Unaffiliated Investment Companies 8.6%
Equity Funds 4.0%
Columbia Funds Series Trust-Columbia SmallCap Index Fund		32,138			613,186
Vanguard Emerging Markets ETF		31,033			1,569,649
Total Equity Funds (Cost $2,044,222)					2,182,835
Fixed Income Funds 4.6%
American Century Inflation Adjusted Bond Fund		67,021			825,701
American Century International Bond Fund Institutional Class		10,322			152,462
iShares Barclays TIPS Bond Fund		12,795			1,422,292
SPDR Barclays Capital International Treasury Bond ETF		2,481			155,683
Total Fixed Income Funds (Cost $2,463,934)					2,556,138
Total Unaffiliated Investment Companies (Cost $4,508,156)					4,738,973
Total Investments (Cost $51,386,660) (b)		99.9	%		55,339,643
Other Assets, Less Liabilities		0.1			65,918
Net Assets		100.0	%	$	55,405,561

†	Percentages indicated are based on Fund net assets.
(a)	Non-income producing Underlying Fund.
(b)	At April 30, 2011, cost is $52,064,305 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	4,004,836
Gross unrealized depreciation		(729,498	)
Net unrealized appreciation	$	3,275,338

The following abbreviation is used in the above portfolio:

ETF—Exchange Traded Fund

12    MainStay Retirement 2010 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Affiliated Investment Companies
Equity Funds	$	26,107,797	$	—	$	—	$	26,107,797
Fixed Income Funds		24,492,873		—		—		24,492,873
Total Affiliated Investment Companies		50,600,670		—		—		50,600,670
Unaffiliated Investment Companies
Equity Funds		2,182,835		—		—		2,182,835
Fixed Income Funds		2,556,138		—		—		2,556,138
Total Unaffiliated Investment Companies		4,738,973		—		—		4,738,973
Total Investments in Securities	$	55,339,643	$	—	$	—	$	55,339,643

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $46,878,504)	$	50,600,670
Investments in unaffiliated investment companies, at value (identified cost $4,508,156)		4,738,973
Cash		271,359
Receivables:
Fund shares sold		49,788
Manager (See Note 3)		13,642
Other assets		47,043
Total assets		55,721,475
Liabilities
Payables:
Investment securities purchased		270,901
Transfer agent (See Note 3)		15,553
Professional fees		14,923
Shareholder communication		9,740
NYLIFE Distributors (See Note 3)		2,324
Custodian		723
Trustees		143
Accrued expenses		1,607
Total liabilities		315,914
Net assets	$	55,405,561
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	5,262
Additional paid-in capital		48,651,861
		48,657,123
Undistributed net investment income		118,840
Accumulated net realized gain (loss) on investments and investments		2,676,615
Net unrealized appreciation (depreciation) on investments		3,952,983
Net assets	$	55,405,561
Investor Class
Net assets applicable to outstanding shares	$	609,413
Shares of beneficial interest outstanding		57,982
Net asset value per share outstanding	$	10.51
Maximum sales charge (5.50% of offering price)		0.61
Maximum offering price per share outstanding	$	11.12
Class A
Net assets applicable to outstanding shares	$	7,503,791
Shares of beneficial interest outstanding		716,063
Net asset value per share outstanding	$	10.48
Maximum sales charge (5.50% of offering price)		0.61
Maximum offering price per share outstanding	$	11.09
Class I
Net assets applicable to outstanding shares	$	44,609,377
Shares of beneficial interest outstanding		4,232,380
Net asset value and offering price per share outstanding	$	10.54
Class R2
Net assets applicable to outstanding shares	$	1,870,708
Shares of beneficial interest outstanding		178,317
Net asset value and offering price per share outstanding	$	10.49
Class R3
Net assets applicable to outstanding shares	$	812,272
Shares of beneficial interest outstanding		77,407
Net asset value and offering price per share outstanding	$	10.49

14    MainStay Retirement 2010 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	665,532
Dividend distributions from unaffiliated investment companies		49,940
Total income		715,472
Expenses
Transfer agent (See Note 3)		48,781
Registration		39,476
Manager (See Note 3)		25,329
Professional fees		14,605
Distribution/Service—Investor Class (See Note 3)		655
Distribution/Service—Class A (See Note 3)		8,758
Distribution/Service—Class R2 (See Note 3)		2,256
Distribution/Service—Class R3 (See Note 3)		2,062
Shareholder communication		9,690
Custodian		3,949
Shareholder service (See Note 3)		1,315
Trustees		703
Miscellaneous		3,895
Total expenses before waiver/reimbursement		161,474
Expense waiver/reimbursement from Manager (See Note 3)		(114,505	)
Expense reimbursement from Transfer agent (See Note 3)		(946	)
Net expenses		46,023
Net investment income (loss)		669,449
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Affiliated investment company transactions		2,734,594
Unaffiliated investment company transactions		327,666
Realized capital gain distributions from affiliated investment companies		285,382
Realized capital gain distributions from unaffiliated investment companies		6,640
Net realized gain (loss) on investments from affiliated and unaffiliated investment companies		3,354,282
Net change in unrealized appreciation (depreciation) on investments		171,874
Net realized and unrealized gain (loss) on Investments		3,526,156
Net increase (decrease) in net assets resulting from operations	$	4,195,605

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	669,449		$	927,228
Net realized gain (loss) on investments from and unaffiliated investment company transactions		3,354,282			3,786,265
Net change in unrealized appreciation (depreciation) on investments		171,874			387,462
Net increase (decrease) in net assets resulting from operations		4,195,605			5,100,955
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(11,625	)		(4,024	)
Class A		(168,020	)		(142,596	)
Class I		(952,657	)		(737,674	)
Class R2		(42,424	)		(32,713	)
Class R3		(17,147	)		(18,719	)
		(1,191,873	)		(935,726	)
From net realized gain on investments:
Investor Class		(7,004	)		—
Class A		(97,617	)		—
Class I		(505,903	)		—
Class R2		(25,733	)		—
Class R3		(11,582	)		—
		(647,839	)		—
Total dividends and distributions to shareholders		(1,839,712	)		(935,726	)
Capital share transactions:
Net proceeds from sale of shares		16,607,765			13,412,930
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		1,838,703			935,726
Cost of shares redeemed		(10,455,995	)		(16,028,793	)
Increase (decrease) in net assets derived from capital share transactions		7,990,473			(1,680,137	)
Net increase (decrease) in net assets		10,346,366			2,485,092
Net Assets
Beginning of period		45,059,195			42,574,103
End of period	$	55,405,561		$	45,059,195
Undistributed net investment income at end of period	$	118,840		$	641,264

16    MainStay Retirement 2010 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	10.07		$	9.15		$	7.95		$	9.95
Net investment income (loss) (a)		0.12			0.17			0.22			0.15
Net realized and unrealized gain (loss) on investments		0.70			0.94			1.17			(2.15	)
Total from investment operations		0.82			1.11			1.39			(2.00	)
Less dividends and distributions:
From net investment income		(0.24	)		(0.19	)		(0.19	)		—
From net realized gain on investments		(0.14	)		—			—			—
Total dividends and distributions		(0.38	)		(0.19	)		(0.19	)		—
Net asset value at end of period	$	10.51		$	10.07		$	9.15		$	7.95
Total investment return (b)		8.39	%(c)		12.34	%		17.90	%		(20.10	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.40	%††		1.82	%		2.61	%		2.38	% ††
Net expenses (d)		0.47	%††		0.47	%		0.38	%		0.46	% ††
Expenses (before waiver/reimbursement) (d)		1.53	%††		2.03	%		0.89	%		6.41	% ††
Portfolio turnover rate		59	%		81	%		76	%		127	%
Net assets at end of period (in 000’s)	$	609		$	468		$	163		$	41

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class A
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	10.04		$	9.12		$	7.95		$	10.57		$	10.00
Net investment income (loss) (a)		0.13			0.19			0.23			0.24			0.06
Net realized and unrealized gain (loss) on investments		0.70			0.92			1.15			(2.80	)		0.51
Total from investment operations		0.83			1.11			1.38			(2.56	)		0.57
Less dividends and distributions:
From net investment income		(0.25	)		(0.19	)		(0.21	)		(0.05	)		—
From net realized gain on investments		(0.14	)		—			—			(0.01	)		—
Total dividends and distributions		(0.39	)		(0.19	)		(0.21	)		(0.06	)		—
Net asset value at end of period	$	10.48		$	10.04		$	9.12		$	7.95		$	10.57
Total investment return (b)		8.40	%(c)		12.51	%		17.85	%		(24.37	%)		5.70	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.53	%††		2.01	%		2.78	%		2.46	%		1.83	%††
Net expenses (d)		0.37	%††		0.37	%		0.37	%		0.38	%		0.38	%††
Expenses (before waiver/reimbursement) (d)		0.82	%††		1.00	%		1.09	%		1.81	%		31.10	%††
Portfolio turnover rate		59	%		81	%		76	%		127	%		17	%
Net assets at end of period (in 000’s)	$	7,504		$	6,935		$	6,570		$	4,418		$	281

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

18    MainStay Retirement 2010 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	10.11		$	9.18		$	7.96		$	10.58		$	10.00
Net investment income (loss) (a)		0.14			0.22			0.25			0.26			0.08
Net realized and unrealized gain (loss) on investments		0.70			0.92			1.18			(2.81	)		0.50
Total from investment operations		0.84			1.14			1.43			(2.55	)		0.58
Less dividends and distributions:
From net investment income		(0.27	)		(0.21	)		(0.21	)		(0.06	)		—
From net realized gain on investments		(0.14	)		—			—			(0.01	)		—
Total dividends and distributions		(0.41	)		(0.21	)		(0.21	)		(0.07	)		—
Net asset value at end of period	$	10.54		$	10.11		$	9.18		$	7.96		$	10.58
Total investment return (b)		8.59	%(c)		12.66	%		18.38	%		(24.25	%)		5.80	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.68	%††		2.28	%		2.98	%		2.77	%		2.42	%††
Net expenses (d)		0.12	%††		0.12	%		0.12	%		0.13	%		0.13	%††
Expenses (before reimbursement/waiver) (d)		0.57	%††		0.76	%		0.84	%		1.51	%		30.84	%††
Portfolio turnover rate		59	%		81	%		76	%		127	%		17	%
Net assets at end of period (in 000’s)	$	44,609		$	35,009		$	33,025		$	20,105		$	930

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Financial Highlights selected per share data and ratios

	Class R2
							January 8,
	Six months						2009**
	ended			Year ended			through
	April 30,			October 31,			October 31,
	2011*			2010			2009
Net asset value at beginning of period	$	10.05		$	9.12		$	7.84
Net investment income (loss) (a)		0.12			0.18			0.15
Net realized and unrealized gain (loss) on investments		0.70			0.93			1.13
Total from investment operations		0.82			1.11			1.28
Less dividends and distributions:
From net investment income		(0.24	)		(0.18	)		—
From net realized gain on investments		(0.14	)		—			—
Total dividends and distributions		(0.38	)		(0.18	)		—
Net asset value at end of period	$	10.49		$	10.05		$	9.12
Total investment return (b)		8.38	%(c)		12.37	%		16.33	%(c)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.45	%††		1.90	%		2.12	%††
Net expenses (e)		0.47	%††		0.47	%		0.47	%††
Expenses (before waiver/reimbursement) (e)		0.92	%††		1.10	%		1.18	%††
Portfolio turnover rate		59	%		81	%		76	%
Net assets at end of period (in 000’s)	$	1,871		$	1,781		$	1,821

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.
(e)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

20    MainStay Retirement 2010 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R3
										May 1,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	10.04		$	9.13		$	7.93		$	10.07
Net investment income (loss) (a)		0.11			0.16			0.20			0.14
Net realized and unrealized gain (loss) on investments		0.69			0.92			1.17			(2.28	)
Total from investment operations		0.80			1.08			1.37			(2.14	)
Less dividends and distributions:
From net investment income		(0.21	)		(0.17	)		(0.17	)		—
From net realized gain on investments		(0.14	)		—			—			—
Total dividends and distributions		(0.35	)		(0.17	)		(0.17	)		—
Net asset value at end of period	$	10.49		$	10.04		$	9.13		$	7.93
Total investment return (b)		8.23	%(c)		11.99	%		17.62	%		(21.25	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.16	%††		1.67	%		2.47	%		3.25	% ††
Net expenses (d)		0.72	%††		0.72	%		0.72	%		0.73	% ††
Expenses (before waiver/reimbursement) (d)		1.17	%††		1.35	%		1.44	%		1.86	% ††
Portfolio turnover rate		59	%		81	%		76	%		127	%
Net assets at end of period (in 000’s)	$	812		$	866		$	996		$	887

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

MainStay Retirement 2020 Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(6/29/07)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		4	.54%		8	.29%		1	.13%		2	.13%
		Excluding sales charges		10	.63		14	.59		2	.63		2	.13
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		4	.54		8	.40		1	.21		1	.83
		Excluding sales charges		10	.62		14	.71		2	.71		1	.83
Class I Shares	No Sales Charge			10	.83		15	.03		2	.94		1	.58
Class R2 Shares4	No Sales Charge			10	.69		14	.67		2	.63		1	.93
Class R3 Shares5	No Sales Charge			10	.43		14	.28		2	.33		2	.18

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Class R2 shares were first offered on June 29, 2007, although this class did not commence investment operations until January 8, 2009. Performance figures for Class R2 shares includes the historical performance of Class A shares through January 7, 2009, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R2 shares might have been lower.
5.	Class R3 shares were first offered on June 29, 2007, although this class did not commence investment operations until May 1, 2008. Performance figures for Class R3 shares includes the historical performance of Class A

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

22    MainStay Retirement 2020 Fund

	Six			One			Since
Benchmark Performance	Months			Year			Inception
S&P 500® Index6		16	.36%		17	.22%		–0	.36%
MSCI EAFE® Index7		12	.71		19	.18		–3	.16
Barclays Capital U.S. Aggregate Bond Index8		0	.02		5	.36		6	.64
Average Lipper Mixed-Asset Target 2020 Fund9		9	.30		13	.79		0	.87

shares through April 30, 2008, adjusted for differences in expenses and fees. Unadjusted, the performance shown for the Class R3 shares might have been lower.

6.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500 Index is the broad-based securities market index. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
7.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE® Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
8.	The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
9.	The average Lipper mixed-asset target 2020 fund is representative of funds that seek to maximize assets for retirement or other purposes with an expected time horizon from January 1, 2016, to December 31, 2020. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    23

Cost in Dollars of a $1,000 Investment in MainStay Retirement 2020 Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,106.30	$	2.45	$	1,022.50	$	2.36
Class A Shares	$	1,000.00	$	1,106.20	$	1.93	$	1,023.00	$	1.86
Class I Shares	$	1,000.00	$	1,108.30	$	0.63	$	1,024.20	$	0.60
Class R2 Shares	$	1,000.00	$	1,106.90	$	2.46	$	1,022.50	$	2.36
Class R3 Shares	$	1,000.00	$	1,104.30	$	3.76	$	1,021.20	$	3.61

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.47% for Investor Class, 0.37% for Class A, 0.12% for Class I, 0.47% for Class R2 and 0.72% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

24    MainStay Retirement 2020 Fund

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

See Portfolio of Investments beginning on page 29 for specific holdings within these categories.

‡  Less than one-tenth of a percent.

mainstayinvestments.com    25

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Retirement 2020 Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Retirement 2020 Fund returned 10.63% for Investor Class shares and 10.62% for Class A shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 10.83%, Class R2 shares returned 10.69% and Class R3 shares returned 10.43%. All share classes outperformed the 9.30% return of the average Lipper² mixed-asset target 2020 fund for the six months ended April 30, 2011. Over the same period, all share classes underperformed the 16.36% return of the S&P 500^® Index.³ The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index,⁴ which is an additional benchmark for the Fund. All share classes underperformed the 12.71% return of the MSCI EAFE^® Index,⁵ which is a secondary benchmark for the Fund. See page 22 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in fixed-income securities or in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility (pre-ferring stocks over bonds, high-yield bonds over investment- grade bonds, etc.) as we had done for some time.

We maintained a modest overweight in Underlying Equity Funds relative to the Fund’s target allocation. In the fixed-income portion of the Fund, we emphasized Underlying Funds that invest in convertible and high-yield bonds. This mix contributed positively to relative performance.

During the reporting period, the equity portion of the Fund reflected our preference for Underlying Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ holdings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum. Underlying Fixed Income Funds were selected based upon the type and country of issuance of the securities in which they invested and the average credit quality and duration⁶ of those securities.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery (such as stocks over bonds, lower-credit-quality bonds over U.S. Treasury securities and shorter-duration debt instruments over longer-dated securities). As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

 
1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.
2. See footnote on page 23 for more information on Lipper Inc.
3. See footnote on page 23 for more information on the S&P 500^® Index.
4. See footnote on page 23 for more information on the Barclays Capital U.S. Aggregate Bond Index.
5. See footnote on page 23 for more information on the MSCI EAFE^® Index.
6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

26    MainStay Retirement 2020 Fund

How did the Fund’s allocations change over the course of the reporting period?

During the reporting period, the Fund shifted out of MainStay Indexed Bond Fund, MainStay Intermediate Term Bond Fund and MainStay High Yield Opportunities Fund into MainStay Flexible Bond Opportunities Fund. MainStay Flexible Bond Opportunities Fund is a multisector bond fund that can move among security types somewhat more nimbly than is possible at the fund-of-funds level.

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underlying Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund, MainStay MAP Fund and MainStay Epoch U.S. All Cap Fund.

In an effort to curb expenses, we reduced the Fund’s positions in several Underlying Funds of unaffiliated investment companies. These included T. Rowe Price Emerging Market Equity Fund, American Century Inflation-Adjusted Bond Fund and American Century International Bond Fund. The proceeds were redirected to lower-cost Exchange Traded Funds (ETFs) that participate in the same respective market segments.

We lowered the Fund’s asset allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

Early in the reporting period, we initiated a position in MainStay Epoch International Small Cap Fund to access an additional market segment. The position was later enlarged.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Under-lying Equity Funds had the lowest total returns?

Among the Underlying Equity Funds in which the Fund invested, the highest total returns came from Columbia Small Cap Index Fund and MainStay Large Cap Growth Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and Vanguard MSCI Emerging Markets ETF.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

The strongest contributions to the Fund’s absolute return came from a large position in MainStay Common Stock Fund and an allocation to MainStay Epoch U.S. All Cap Fund. (Contributions take weightings and total returns into account.) Although all of the Fund’s Underlying Equity Funds posted positive returns, some of the smallest contributions from Underlying Equity Funds came from MainStay 130/30 Growth Fund and MainStay Growth Equity Fund. Both Underlying Fund positions were of negligible size.

What factors and risks affected the Fund’s Underlying Fixed Income Fund investments during the reporting period?

We anticipated that the yield curve⁷ would eventually rise and flatten in response to several factors. First, we believed the Federal Reserve would eventually need to normalize monetary policy; second, public debt was growing; and third, corporate fundamentals were improving. With these factors in mind, we kept the Fund’s duration shorter than that of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s fixed-income benchmark, through investments in cash and Underlying Funds that invest in floating-rate instruments. At the same time, credit quality was held lower than that of the Barclays Capital U.S. Aggregate Bond Index. Both positioning strategies contributed positively, if only marginally, to relative performance as interest rates moved up slightly and credit spreads⁸ continued to narrow.

During the reporting period, which fixed-income market segments were strong performers and which segments were particularly weak?

The best results came from Underlying Fixed Income Funds that invest in security types that are either directly linked to equity markets (convertible bonds) or especially sensitive to corporate fundamentals (high-yield bonds). Longer-dated U.S. Treasury bonds trailed the broader market and lost value as yields rose modestly during the reporting period.

Which Underlying Fixed Income Funds made the strongest contributions to the Fund’s overall perfor-mance, and which Underlying Fixed Income Funds were the greatest detractors?

The strongest contributions to return came from positions in MainStay Convertible Fund and MainStay High Yield Corporate Bond Fund. At the other end of the spectrum, a large position in MainStay Indexed Bond Fund detracted from the Fund’s

 
7. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The U.S. Treasury yield curve is said to flatten when the differential in yield between shorter-maturity and longer-maturity Treasury securities narrows.

8. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.

mainstayinvestments.com    27

performance. Several other Underlying Fixed Income Funds investing in other sectors, including inflation-indexed bonds and international bonds, also detracted from the Fund’s returns.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

28    MainStay Retirement 2020 Fund

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 92.1%†
Equity Funds 59.7%
MainStay 130/30 Core Fund Class I		273,376		$	2,323,696
MainStay 130/30 Growth Fund Class I (a)(b)		28,739			263,538
MainStay 130/30 International Fund Class I		138,182			1,059,858
MainStay Common Stock Fund Class I		560,157			6,951,544
MainStay Epoch Global Choice Fund Class I		52,514			860,711
MainStay Epoch International Small Cap Fund Class I		119,099			2,589,207
MainStay Epoch U.S. All Cap Fund Class I		335,139			8,780,637
MainStay Growth Equity Fund Class I (a)(b)		30,479			369,403
MainStay ICAP Equity Fund Class I		95,286			3,760,932
MainStay ICAP International Fund Class I		130,647			4,317,886
MainStay ICAP Select Equity Fund Class I		87,299			3,333,941
MainStay International Equity Fund Class I		68,985			919,564
MainStay Large Cap Growth Fund Class I (a)		682,634			5,467,900
MainStay MAP Fund Class I		254,166			8,857,668
MainStay U.S. Small Cap Fund Class I		55,348			1,017,302
Total Equity Funds (Cost $43,389,593)					50,873,787
Fixed Income Funds 32.4%
MainStay Cash Reserves Fund Class I		2,114,582			2,114,582
MainStay Convertible Fund Class I		122,154			2,121,821
MainStay Flexible Bond Opportunities Fund Class I		428,859			3,894,038
MainStay Floating Rate Fund Class I		246,253			2,349,253
MainStay Global High Income Fund Class I		116,616			1,399,393
MainStay High Yield Corporate Bond Fund Class I		349,128			2,098,259
MainStay High Yield Opportunities Fund Class I		70,289			851,900
MainStay Indexed Bond Fund Class I		775,002			8,765,275
MainStay Intermediate Term Bond Fund Class I		376,126			4,020,782
Total Fixed Income Funds (Cost $27,119,457)					27,615,303
Total Affiliated Investment Companies (Cost $70,509,050)					78,489,090
Unaffiliated Investment Companies 7.9%
Equity Funds 5.0%
Columbia Funds Series Trust-Columbia SmallCap Index Fund		73,033			1,393,474
Vanguard Emerging Markets ETF		56,970			2,881,543
Total Equity Funds (Cost $3,968,581)					4,275,017
Fixed Income Funds 2.9%
American Century Inflation Adjusted Bond Fund		43,548			536,509
American Century International Bond Fund Institutional Class		17,928			264,799
iShares Barclays TIPS Bond Fund		12,373			1,375,383
SPDR Barclays Capital International Treasury Bond ETF		3,915			245,666
Total Fixed Income Funds (Cost $2,351,284)					2,422,357
Total Unaffiliated Investment Companies (Cost $6,319,865)					6,697,374
Total Investments (Cost $76,828,915) (c)		100.0	%		85,186,464
Other Assets, Less Liabilities		0.0	‡		24,618
Net Assets		100.0	%	$	85,211,082

†	Percentages indicated are based on Fund net assets.
‡	Less than one-tenth of a percent.
(a)	Non-income producing Underlying Fund.
(b)	The Fund’s ownership exceeds 5% of the outstanding shares of the Underlying Fund’s share class. (See Note 3)
(c)	At April 30, 2011, cost is $77,576,844 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	8,437,120
Gross unrealized depreciation		(827,500	)
Net unrealized appreciation	$	7,609,620

The following abbreviation is used in the above portfolio:

ETF—Exchange Traded Fund

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    29

Portfolio of InvestmentsApril 30, 2011 (unaudited) (continued)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Affiliated Investment Companies
Equity Funds	$	50,873,787	$	—	$	—	$	50,873,787
Fixed Income Funds		27,615,303		—		—		27,615,303
Total Affiliated Investment Companies		78,489,090		—		—		78,489,090
Unaffiliated Investment Companies
Equity Funds		4,275,017		—		—		4,275,017
Fixed Income Funds		2,422,357		—		—		2,422,357
Total Unaffiliated Investment Companies		6,697,374		—		—		6,697,374
Total Investments in Securities	$	85,186,464	$	—	$	—	$	85,186,464

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

30    MainStay Retirement 2020 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $70,509,050)	$	78,489,090
Investments in unaffiliated investment companies, at value (identified cost $6,319,865)		6,697,374
Cash		276,712
Receivables:
Fund shares sold		77,038
Manager (See Note 3)		12,530
Other assets		45,958
Total assets		85,598,702
Liabilities
Payables:
Investment securities purchased		276,428
Fund shares redeemed		57,536
Transfer agent (See Note 3)		17,431
Professional fees		15,930
Shareholder communication		13,154
NYLIFE Distributors (See Note 3)		4,783
Custodian		755
Trustees		183
Accrued expenses		1,420
Total liabilities		387,620
Net assets	$	85,211,082
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	8,354
Additional paid-in capital		72,539,564
		72,547,918
Undistributed net investment income		147,672
Accumulated net realized gain (loss) on investments		4,157,943
Net unrealized appreciation (depreciation) on investments		8,357,549
Net assets	$	85,211,082
Investor Class
Net assets applicable to outstanding shares	$	2,761,552
Shares of beneficial interest outstanding		271,125
Net asset value per share outstanding	$	10.19
Maximum sales charge (5.50% of offering price)		0.59
Maximum offering price per share outstanding	$	10.78
Class A
Net assets applicable to outstanding shares	$	15,028,285
Shares of beneficial interest outstanding		1,477,836
Net asset value per share outstanding	$	10.17
Maximum sales charge (5.50% of offering price)		0.59
Maximum offering price per share outstanding	$	10.76
Class I
Net assets applicable to outstanding shares	$	63,346,263
Shares of beneficial interest outstanding		6,204,201
Net asset value and offering price per share outstanding	$	10.21
Class R2
Net assets applicable to outstanding shares	$	1,966,369
Shares of beneficial interest outstanding		193,213
Net asset value and offering price per share outstanding	$	10.18
Class R3
Net assets applicable to outstanding shares	$	2,108,613
Shares of beneficial interest outstanding		207,489
Net asset value and offering price per share outstanding	$	10.16

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    31

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	896,369
Dividend distributions from unaffiliated investment companies		66,693
Total income		963,062
Expenses
Transfer agent (See Note 3)		55,165
Registration		40,129
Manager (See Note 3)		37,155
Distribution/Service—Investor Class (See Note 3)		2,766
Distribution/Service—Class A (See Note 3)		17,434
Distribution/Service—Class R2 (See Note 3)		2,253
Distribution/Service—Class R3 (See Note 3)		5,006
Professional fees		15,931
Shareholder communication		13,131
Custodian		4,047
Shareholder service (See Note 3)		1,902
Trustees		1,029
Miscellaneous		4,065
Total expenses before waiver/reimbursement		200,013
Expense waiver/reimbursement from Manager (See Note 3)		(123,103	)
Expense reimbursement from Transfer agent (See Note 3)		(1,714	)
Net expenses		75,196
Net investment income (loss)		887,866
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Affiliated investment company transactions		3,866,463
Unaffiliated investment company transactions		757,861
Realized capital gain distributions from affiliated investment companies		251,078
Realized capital gain distributions from unaffiliated investment companies		30,542
Net realized gain (loss) on investments from affiliated and unaffiliated investment companies		4,905,944
Net change in unrealized appreciation (depreciation) on investments		1,873,035
Net realized and unrealized gain (loss) on investments		6,778,979
Net increase (decrease) in net assets resulting from operations	$	7,666,845

32    MainStay Retirement 2020 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	887,866		$	1,123,488
Net realized gain (loss) on investments from and unaffiliated investment company transactions		4,905,944			4,562,821
Net change in unrealized appreciation (depreciation) on investments		1,873,035			2,079,880
Net increase (decrease) in net assets resulting from operations		7,666,845			7,766,189
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(40,491	)		(17,599	)
Class A		(278,945	)		(199,170	)
Class I		(1,066,646	)		(820,771	)
Class R2		(33,109	)		(18,380	)
Class R3		(34,294	)		(26,508	)
		(1,453,485	)		(1,082,428	)
From net realized gain on investments:
Investor Class		(32,465	)		—
Class A		(215,292	)		—
Class I		(739,851	)		—
Class R2		(27,393	)		—
Class R3		(30,811	)		—
		(1,045,812	)		—
Total dividends and distributions to shareholders		(2,499,297	)		(1,082,428	)
Capital share transactions:
Net proceeds from sale of shares		20,792,681			20,167,580
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		2,495,628			1,082,428
Cost of shares redeemed		(9,349,004	)		(19,350,396	)
Increase (decrease) in net assets derived from capital share transactions		13,939,305			1,899,612
Net increase (decrease) in net assets		19,106,853			8,583,373
Net Assets
Beginning of period		66,104,229			57,520,856
End of period	$	85,211,082		$	66,104,229
Undistributed net investment income at end of period	$	147,672		$	713,291

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    33

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	9.54		$	8.56		$	7.43		$	9.83
Net investment income (loss)		0.11			0.12	(a)		0.18	(a)		0.12	(a)
Net realized and unrealized gain (loss) on investments		0.88			1.01			1.13			(2.52	)
Total from investment operations		0.99			1.13			1.31			(2.40	)
Less dividends and distributions:
From net investment income		(0.19	)		(0.15	)		(0.16	)		—
From net realized gain on investments		(0.15	)		—			(0.02	)		—
Total dividends and distributions		(0.34	)		(0.15	)		(0.18	)		—
Net asset value at end of period	$	10.19		$	9.54		$	8.56		$	7.43
Total investment return (b)		10.63	%(c)		13.33	%		17.99	%		(24.42	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.19	%††		1.48	%		2.31	%		2.02	% ††
Net expenses (d)		0.47	%††		0.47	%		0.47	%		0.47	% ††
Expenses (before waiver/reimbursement) (d)		0.92	%††		1.16	%		1.31	%		1.48	% ††
Portfolio turnover rate		51	%		73	%		68	%		134	%
Net assets at end of period (in 000’s)	$	2,762		$	1,926		$	915		$	342

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

34    MainStay Retirement 2020 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	9.53		$	8.54		$	7.44		$	10.57		$	10.00
Net investment income (loss)		0.12			0.15	(a)		0.19	(a)		0.17	(a)		0.04	(a)
Net realized and unrealized gain (loss) on investments		0.87			0.99			1.11			(3.25	)		0.53
Total from investment operations		0.99			1.14			1.30			(3.08	)		0.57
Less dividends and distributions:
From net investment income		(0.20	)		(0.15	)		(0.18	)		(0.04	)		—
From net realized gain on investments		(0.15	)		—			(0.02	)		(0.01	)		—
Total dividends and distributions		(0.35	)		(0.15	)		(0.20	)		(0.05	)		—
Net asset value at end of period	$	10.17		$	9.53		$	8.54		$	7.44		$	10.57
Total investment return (b)		10.62	%(c)		13.55	%		17.97	%		(29.25	%)		5.70	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.33	%††		1.67	%		2.48	%		1.79	%		1.32	%††
Net expenses (d)		0.37	%††		0.37	%		0.37	%		0.38	%		0.38	%††
Expenses (before waiver/reimbursement) (d)		0.70	%††		0.86	%		1.01	%		1.74	%		35.65	%††
Portfolio turnover rate		51	%		73	%		68	%		134	%		25	%
Net assets at end of period (in 000’s)	$	15,028		$	13,421		$	11,026		$	4,940		$	297

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    35

Financial Highlights selected per share data and ratios

	Class I
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	9.57		$	8.58		$	7.45		$	10.57		$	10.00
Net investment income (loss)		0.13			0.17	(a)		0.21	(a)		0.19	(a)		0.05	(a)
Net realized and unrealized gain (loss) on investments		0.88			0.99			1.12			(3.24	)		0.52
Total from investment operations		1.01			1.16			1.33			(3.05	)		0.57
Less dividends and distributions:
From net investment income		(0.22	)		(0.17	)		(0.18	)		(0.06	)		—
From net realized gain on investments		(0.15	)		—			(0.02	)		(0.01	)		—
Total dividends and distributions		(0.37	)		(0.17	)		(0.20	)		(0.07	)		—
Net asset value at end of period	$	10.21		$	9.57		$	8.58		$	7.45		$	10.57
Total investment return (b)		10.83	%(c)		13.69	%		18.30	%		(29.14	%)		5.80	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.44	%††		1.95	%		2.73	%		2.06	%		1.56	%††
Net expenses (d)		0.12	%††		0.12	%		0.12	%		0.13	%		0.13	%††
Expenses (before reimbursement/waiver) (d)		0.45	%††		0.61	%		0.76	%		1.45	%		35.16	%††
Portfolio turnover rate		51	%		73	%		68	%		134	%		25	%
Net assets at end of period (in 000’s)	$	63,346		$	47,125		$	42,809		$	19,743		$	440

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

36    MainStay Retirement 2020 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R2
							January 8,
	Six months						2009**
	ended			Year ended			through
	April 30,			October 31,			October 31,
	2011*			2010			2009
Net asset value at beginning of period	$	9.52		$	8.54		$	7.21
Net investment income (loss)		0.10			0.14	(a)		0.12	(a)
Net realized and unrealized gain (loss) on investments		0.89			0.98			1.21
Total from investment operations		0.99			1.12			1.33
Less dividends and distributions:
From net investment income		(0.18	)		(0.14	)		—
From net realized gain on investments		(0.15	)		—			—
Total dividends and distributions		(0.33	)		(0.14	)		—
Net asset value at end of period	$	10.18		$	9.52		$	8.54
Total investment return (b)		10.69	%(c)		13.29	%		18.45	%(c)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.20	%††		1.54	%		1.82	%††
Net expenses (e)		0.47	%††		0.47	%		0.47	%††
Expenses (before waiver/reimbursement) (e)		0.80	%††		0.96	%		1.09	%††
Portfolio turnover rate		51	%		73	%		68	%
Net assets at end of period (in 000’s)	$	1,966		$	1,718		$	1,057

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.
(e)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    37

Financial Highlights selected per share data and ratios

	Class R3
										May 1,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	9.51		$	8.54		$	7.42		$	9.98
Net investment income (loss)		0.10			0.11	(a)		0.17	(a)		0.10	(a)
Net realized and unrealized gain (loss) on investments		0.87			0.99			1.12			(2.66	)
Total from investment operations		0.97			1.10			1.29			(2.56	)
Less dividends and distributions:
From net investment income		(0.17	)		(0.13	)		(0.15	)		—
From net realized gain on investments		(0.15	)		—			(0.02	)		—
Total dividends and distributions		(0.32	)		(0.13	)		(0.17	)		—
Net asset value at end of period	$	10.16		$	9.51		$	8.54		$	7.42
Total investment return (b)		10.43	%(c)		13.02	%		17.71	%		(25.65	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.97	%††		1.33	%		2.31	%		2.61	% ††
Net expenses (d)		0.72	%††		0.72	%		0.72	%		0.73	% ††
Expenses (before waiver/reimbursement) (d)		1.05	%††		1.21	%		1.37	%		1.81	% ††
Portfolio turnover rate		51	%		73	%		68	%		134	%
Net assets at end of period (in 000’s)	$	2,109		$	1,915		$	1,713		$	1,305

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

38    MainStay Retirement 2020 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

MainStay Retirement 2030 Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from Class to Class based on differences in Class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(6/29/07)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		6	.69%		10	.25%		0	.05%		2	.42%
		Excluding sales charges		12	.90		16	.66		1	.53		2	.42
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		6	.80		10	.37		0	.13		1	.97
		Excluding sales charges		13	.02		16	.79		1	.62		1	.97
Class I Shares	No Sales Charge			13	.15		17	.03		1	.87		1	.72
Class R2 Shares4	No Sales Charge			13	.04		16	.68		1	.52		2	.07
Class R3 Shares5	No Sales Charge			12	.78		16	.28		1	.27		2	.32

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Class R2 shares were first offered on June 29, 2007, although this class did not commence investment operations until January 8, 2009. Performance figures for Class R2 shares includes the historical performance of Class A shares through January 7, 2009, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R2 shares might have been lower.
5.	Class R3 shares were first offered on June 29, 2007, although this class did not commence investment operations until May 1, 2008. Performance figures for Class R3 shares includes the historical performance of Class A shares through April 30, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R3 shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    39

	Six			One			Since
Benchmark Performance	Months			Year			Inception
S&P 500® Index6		16	.36%		17	.22%		–0	.36%
MSCI EAFE® Index7		12	.71		19	.18		–3	.16
Barclays Capital U.S. Aggregate Bond Index8		0	.02		5	.36		6	.64
Average Lipper Mixed-Asset Target 2030 Fund9		11	.96		16	.03		0	.06

6.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500 Index is the Fund’s broad-based securities market index. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
7.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE® Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
8.	The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
9.	The average Lipper mixed-asset target 2030 fund is representative of funds that seek to maximize assets for retirement or other purposes with an expected time horizon from January 1, 2026, to December 31, 2030. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

40    MainStay Retirement 2030 Fund

Cost in Dollars of a $1,000 Investment in MainStay Retirement 2030 Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
	��		Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,129.00	$	2.48	$	1,022.50	$	2.36
Class A Shares	$	1,000.00	$	1,130.20	$	1.95	$	1,023.00	$	1.86
Class I Shares	$	1,000.00	$	1,131.50	$	0.63	$	1,024.20	$	0.60
Class R2 Shares	$	1,000.00	$	1,130.40	$	2.48	$	1,022.50	$	2.36
Class R3 Shares	$	1,000.00	$	1,127.80	$	3.80	$	1,021.20	$	3.61

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.47% for Investor Class, 0.37% for Class A, 0.12% for Class I, 0.47% for Class R2 and 0.72% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

mainstayinvestments.com    41

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

Capital Appreciation	37.5
Growth of Capital	24.8
Total Return	24.7
Current Income	12.7
Other Assets, Less Liabilities	0.3

See Portfolio of Investments beginning on page 46 for specific holdings within these categories.

42    MainStay Retirement 2030 Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Retirement 2030 Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Retirement 2030 Fund returned 12.90% for Investor Class shares and 13.02% for Class A shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 13.15%, Class R2 shares returned 13.04% and Class R3 shares returned 12.78%. All share classes outperformed the 11.96% return of the average Lipper² mixed-asset target 2030 fund for the six months ended April 30, 2011. Over the same period, all share classes underperformed the 16.36% return of the S&P 500^® Index.³ The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index,⁴ which is an additional benchmark for the Fund. All share classes outperformed the 12.71% return of the MSCI EAFE^® Index,⁵ which is a secondary benchmark for the Fund. See page 39 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in fixed-income securities or in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility (pre-ferring stocks over bonds, high-yield bonds over investment- grade bonds, etc.) as we had done for some time.

We maintained a modest overweight in Underlying Equity Funds relative to the Fund’s target allocation. In the fixed-income portion of the Fund, we emphasized Underlying Funds that invest in convertible and high-yield bonds. This mix contributed positively to relative performance.

During the reporting period, the equity portion of the Fund reflected our preference for Underlying Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ holdings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum. Underlying Fixed Income Funds were selected based upon the type and country of issuance of the securities in which they invested and the average credit quality and duration⁶ of those securities.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery (such as stocks over bonds, lower-credit-quality bonds over U.S. Treasury securities and shorter-duration debt instruments over longer-dated securities). As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.

2. See footnote on page 40 for more information on Lipper Inc.

3. See footnote on page 40 for more information on the S&P 500^® Index.

4. See footnote on page 40 for more information on the Barclays Capital U.S. Aggregate Bond Index.

5. See footnote on page 40 for more information on the MSCI EAFE^® Index.

6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

mainstayinvestments.com    43

How did the Fund’s allocations change over the course of the reporting period?

During the reporting period, the Fund shifted out of MainStay Indexed Bond Fund and MainStay High Yield Opportunities Fund into MainStay Flexible Bond Opportunities Fund. MainStay Flexible Bond Opportunities Fund is a multisector bond fund that can move among security types somewhat more nimbly than is possible at the fund-of-funds level.

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underlying Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund, MainStay MAP Fund and MainStay Epoch U.S. All Cap Fund.

In an effort to curb expenses, we reduced the Fund’s positions in some Underlying Funds of unaffiliated investment companies. These included T. Rowe Price Emerging Market Equity Fund and American Century International Bond Fund. The proceeds were redirected to lower-cost Exchange Traded Funds (ETFs) that participate in the same respective market segments.

We lowered the Fund’s asset allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

Early in the reporting period, we initiated a position in MainStay Epoch International Small Cap Fund to access an additional market segment. The position was later enlarged.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Under-lying Equity Funds had the lowest total returns?

Among the Underlying Equity Funds in which the Fund invested, the highest total returns came from Columbia Small Cap Index Fund and MainStay Large Cap Growth Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and Vanguard MSCI Emerging Markets ETF.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

The strongest contributions to the Fund’s absolute return came from a large position in MainStay Common Stock Fund and an allocation to MainStay Epoch U.S. All Cap Fund. (Contributions take weightings and total returns into account.) Although all of the Fund’s Underlying Equity Funds posted positive returns, some of the smallest contributions from Underlying Equity Funds came from MainStay 130/30 Growth Fund and MainStay Growth Equity Fund. Both Underlying Fund positions were of negligible size.

What factors and risks affected the Fund’s Underlying Fixed Income Fund investments during the reporting period?

We anticipated that the yield curve⁷ would eventually rise and flatten in response to several factors. First, we believed the Federal Reserve would eventually need to normalize monetary policy; second, public debt was growing; and third, corporate fundamentals were improving. With these factors in mind, we kept the Fund’s duration shorter than that of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s fixed-income benchmark, through investments in cash and Underlying Funds that invest in floating-rate instruments. At the same time, credit quality was held lower than that of the Barclays Capital U.S. Aggregate Bond Index. Both positioning strategies contributed positively, if only marginally, to relative performance as interest rates moved up slightly and credit spreads⁸ continued to narrow.

During the reporting period, which fixed-income market segments were strong performers and which segments were particularly weak?

The best results came from Underlying Fixed Income Funds that invest in security types that are either directly linked to equity markets (convertible bonds) or especially sensitive to corporate fundamentals (high-yield bonds). Longer-dated U.S. Treasury bonds trailed the broader market and lost value as yields rose modestly during the reporting period.

7. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The U.S. Treasury yield curve is said to flatten when the differential in yield between shorter-maturity and longer-maturity Treasury securities narrows.

8. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.

44    MainStay Retirement 2030 Fund

Which Underlying Fixed Income Funds made the strongest contributions to the Fund’s overall perfor-mance, and which Underlying Fixed Income Funds were the greatest detractors?

The strongest contributions to return came from positions in MainStay Convertible Fund and MainStay High Yield Corporate Bond Fund. At the other end of the spectrum, a position in MainStay Indexed Bond Fund detracted from the Fund’s performance. Several other Underlying Fixed Income Funds investing in other sectors, including inflation-indexed bonds and international bonds, also detracted from the Fund’s returns.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    45

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 91.1%†
Equity Funds 72.7%
MainStay 130/30 Core Fund Class I		420,718		$	3,576,100
MainStay 130/30 Growth Fund Class I (a)(b)		50,460			462,716
MainStay 130/30 International Fund Class I		298,109			2,286,499
MainStay Common Stock Fund Class I (b)		1,072,901			13,314,704
MainStay Epoch Global Choice Fund Class I		82,982			1,360,070
MainStay Epoch International Small Cap Fund Class I		229,141			4,981,518
MainStay Epoch U.S. All Cap Fund Class I		604,063			15,826,454
MainStay Growth Equity Fund Class I (a)(b)		130,413			1,580,609
MainStay ICAP Equity Fund Class I		181,709			7,172,038
MainStay ICAP International Fund Class I		276,053			9,123,535
MainStay ICAP Select Equity Fund Class I		151,485			5,785,212
MainStay International Equity Fund Class I		182,903			2,438,093
MainStay Large Cap Growth Fund Class I (a)		1,234,730			9,890,186
MainStay MAP Fund Class I		511,567			17,828,105
MainStay U.S. Small Cap Fund Class I		148,542			2,730,209
Total Equity Funds (Cost $86,171,921)					98,356,048
Fixed Income Funds 18.4%
MainStay Cash Reserves Fund Class I		1,836,256			1,836,256
MainStay Convertible Fund Class I		134,575			2,337,574
MainStay Flexible Bond Opportunities Fund Class I		485,235			4,405,930
MainStay Floating Rate Fund Class I		424,492			4,049,657
MainStay Global High Income Fund Class I (b)		253,386			3,040,626
MainStay High Yield Corporate Bond Fund Class I		455,244			2,736,017
MainStay High Yield Opportunities Fund Class I		86,530			1,048,743
MainStay Indexed Bond Fund Class I		216,934			2,453,521
MainStay Intermediate Term Bond Fund Class I		278,008			2,971,908
Total Fixed Income Funds (Cost $24,270,453)					24,880,232
Total Affiliated Investment Companies (Cost $110,442,374)					123,236,280
Unaffiliated Investment Companies 8.6%
Equity Funds 6.9%
Columbia Funds Series Trust-Columbia SmallCap Index Fund		195,791			3,735,692
Vanguard Emerging Markets ETF		111,574			5,643,413
Total Equity Funds (Cost $8,744,533)					9,379,105
Fixed Income Funds 1.7%
American Century Inflation Adjusted Bond Fund		76			941
American Century International Bond Fund Institutional Class		30,795			454,842
iShares Barclays TIPS Bond Fund		4,252			472,653
SPDR Barclays Capital International Treasury Bond ETF		22,439			1,408,047
Total Fixed Income Funds (Cost $2,204,750)					2,336,483
Total Unaffiliated Investment Companies (Cost $10,949,283)					11,715,588
Total Investments (Cost $121,391,657) (c)		99.7	%		134,951,868
Other Assets, Less Liabilities		0.3			380,173
Net Assets		100.0	%	$	135,332,041

†	Percentages indicated are based on Fund net assets.
(a)	Non-income producing Underlying Fund.
(b)	The Fund’s ownership exceeds 5% of the outstanding shares of the Underlying Fund’s share class. (See Note 3)
(c)	At April 30, 2011, cost is $122,721,498 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	13,574,593
Gross unrealized depreciation		(1,344,223	)
Net unrealized appreciation	$	12,230,370

The following abbreviation is used in the above portfolio:

ETF—Exchange Traded Fund

46    MainStay Retirement 2030 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Affiliated Investment Companies
Equity Funds	$	98,356,048	$	—	$	—	$	98,356,048
Fixed Income Funds		24,880,232		—		—		24,880,232
Total Affiliated Investment Companies		123,236,280		—		—		123,236,280
Unaffiliated Investment Companies
Equity Funds		9,379,105		—		—		9,379,105
Fixed Income Funds		2,336,483		—		—		2,336,483
Total Unaffiliated Investment Companies		11,715,588		—		—		11,715,588
Total Investments in Securities	$	134,951,868	$	—	$	—	$	134,951,868

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    47

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $110,442,374)	$	123,236,280
Investments in unaffiliated investment companies, at value (identified cost $10,949,283)		11,715,588
Cash		387,268
Receivables:
Fund shares sold		436,251
Manager (See Note 3)		16,252
Other assets		46,651
Total assets		135,838,290
Liabilities
Payables:
Investment securities purchased		386,827
Fund shares redeemed		49,168
Transfer agent (See Note 3)		30,393
Professional fees		16,766
Shareholder communication		14,495
NYLIFE Distributors (See Note 3)		6,831
Custodian		654
Trustees		81
Accrued expenses		1,034
Total liabilities		506,249
Net assets	$	135,332,041
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	13,555
Additional paid-in capital		114,044,714
		114,058,269
Undistributed net investment income		199,993
Accumulated net realized gain (loss) on investments and investments		7,513,568
Net unrealized appreciation (depreciation) on investments		13,560,211
Net assets	$	135,332,041
Investor Class
Net assets applicable to outstanding shares	$	2,636,468
Shares of beneficial interest outstanding		264,972
Net asset value per share outstanding	$	9.95
Maximum sales charge (5.50% of offering price)		0.58
Maximum offering price per share outstanding	$	10.53
Class A
Net assets applicable to outstanding shares	$	14,853,703
Shares of beneficial interest outstanding		1,496,197
Net asset value per share outstanding	$	9.93
Maximum sales charge (5.50% of offering price)		0.58
Maximum offering price per share outstanding	$	10.51
Class I
Net assets applicable to outstanding shares	$	107,766,362
Shares of beneficial interest outstanding		10,780,079
Net asset value and offering price per share outstanding	$	10.00
Class R2
Net assets applicable to outstanding shares	$	3,347,491
Shares of beneficial interest outstanding		337,302
Net asset value and offering price per share outstanding	$	9.92
Class R3
Net assets applicable to outstanding shares	$	6,728,017
Shares of beneficial interest outstanding		676,619
Net asset value and offering price per share outstanding	$	9.94

48    MainStay Retirement 2030 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	1,143,344
Dividend distributions from unaffiliated investment companies		94,411
Total income		1,237,755
Expenses
Transfer agent (See Note 3)		99,994
Manager (See Note 3)		56,245
Registration		40,299
Distribution/Service—Investor Class (See Note 3)		2,684
Distribution/Service—Class A (See Note 3)		16,994
Distribution/Service—Class R2 (See Note 3)		3,800
Distribution/Service—Class R3 (See Note 3)		15,666
Professional fees		17,397
Shareholder communication		15,684
Shareholder service (See Note 3)		4,653
Custodian		4,212
Trustees		1,381
Miscellaneous		4,470
Total expenses before waiver/reimbursement		283,479
Expense waiver/reimbursement from Manager (See Note 3)		(168,304	)
Expense reimbursement from Transfer agent (See Note 3)		(3,020	)
Net expenses		112,155
Net investment income (loss)		1,125,600
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Affiliated investment company transactions		7,390,344
Unaffiliated investment company transactions		1,297,056
Realized capital gain distributions from affiliated investment companies		148,189
Realized capital gain distributions from unaffiliated investment companies		7,868
Net realized gain (loss) on investments from affiliated and unaffiliated investment companies		8,843,457
Net change in unrealized appreciation (depreciation) on investments		3,767,319
Net realized and unrealized gain (loss) on investments		12,610,776
Net increase (decrease) in net assets resulting from operations	$	13,736,376

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    49

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,125,600		$	1,073,850
Net realized gain (loss) on investments from and unaffiliated investment company transactions		8,843,457			4,879,049
Net change in unrealized appreciation (depreciation) on investments		3,767,319			4,495,979
Net increase (decrease) in net assets resulting from operations		13,736,376			10,448,878
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(29,235	)		(10,126	)
Class A		(206,887	)		(150,443	)
Class I		(1,177,322	)		(808,959	)
Class R2		(42,653	)		(22,641	)
Class R3		(75,848	)		(59,829	)
		(1,531,945	)		(1,051,998	)
From net realized gain on investments:
Investor Class		(10,738	)		—
Class A		(72,139	)		—
Class I		(361,007	)		—
Class R2		(15,861	)		—
Class R3		(33,113	)		—
		(492,858	)		—
Total dividends and distributions to shareholders		(2,024,803	)		(1,051,998	)
Capital share transactions:
Net proceeds from sale of shares		53,199,853			24,863,319
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		2,023,093			1,051,998
Cost of shares redeemed		(18,790,768	)		(15,997,158	)
Increase (decrease) in net assets derived from capital share transactions		36,432,178			9,918,159
Net increase (decrease) in net assets		48,143,751			19,315,039
Net Assets
Beginning of period		87,188,290			67,873,251
End of period	$	135,332,041		$	87,188,290
Undistributed net investment income at end of period	$	199,993		$	606,338

50    MainStay Retirement 2030 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.99		$	7.97		$	6.92		$	9.60
Net investment income (loss)		0.10			0.09	(a)		0.12	(a)		0.07	(a)
Net realized and unrealized gain (loss) on investments		1.05			1.04			1.07			(2.75	)
Total from investment operations		1.15			1.13			1.19			(2.68	)
Less dividends and distributions:
From net investment income		(0.14	)		(0.11	)		(0.13	)		—
From net realized gain on investments		(0.05	)		—			(0.01	)		—
Total dividends and distributions		(0.19	)		(0.11	)		(0.14	)		—
Net asset value at end of period	$	9.95		$	8.99		$	7.97		$	6.92
Total investment return (b)		12.90	%(c)		14.30	%		17.67	%		(27.92	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.87	%††		1.05	%		1.75	%		1.26	% ††
Net expenses (d)		0.47	%††		0.47	%		0.47	%		0.46	% ††
Expenses (before waiver/reimbursement) (d)		0.96	%††		1.34	%		1.70	%		1.42	% ††
Portfolio turnover rate		70	%		60	%		71	%		148	%
Net assets at end of period (in 000’s)	$	2,636		$	1,785		$	606		$	104

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    51

Financial Highlights selected per share data and ratios

	Class A
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	8.97		$	7.95		$	6.92		$	10.59		$	10.00
Net investment income (loss)		0.09			0.10	(a)		0.15	(a)		0.11	(a)		0.02
Net realized and unrealized gain (loss) on investments		1.06			1.04			1.05			(3.69	)		0.57
Total from investment operations		1.15			1.14			1.20			(3.58	)		0.59
Less dividends and distributions:
From net investment income		(0.14	)		(0.12	)		(0.16	)		(0.08	)		—
From net realized gain on investments		(0.05	)		—			(0.01	)		(0.01	)		—
Total dividends and distributions		(0.19	)		(0.12	)		(0.17	)		(0.09	)		—
Net asset value at end of period	$	9.93		$	8.97		$	7.95		$	6.92		$	10.59
Total investment return (b)		13.02	%(c)		14.40	%		17.63	%		(33.97	%)		5.90	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.08	%††		1.25	%		2.14	%		1.22	%		0.71	%††
Net expenses (d)		0.37	%††		0.37	%		0.37	%		0.38	%		0.38	%††
Expenses (before waiver/reimbursement) (d)		0.67	%††		0.89	%		1.01	%		1.76	%		35.87	%††
Portfolio turnover rate		70	%		60	%		71	%		148	%		42	%
Net assets at end of period (in 000’s)	$	14,854		$	12,733		$	10,314		$	4,784		$	306

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

52    MainStay Retirement 2030 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	9.04		$	8.00		$	6.94		$	10.60		$	10.00
Net investment income (loss)		0.11			0.13	(a)		0.17	(a)		0.13	(a)		0.03
Net realized and unrealized gain (loss) on investments		1.06			1.04			1.04			(3.69	)		0.57
Total from investment operations		1.17			1.17			1.21			(3.56	)		0.60
Less dividends and distributions:
From net investment income		(0.16	)		(0.13	)		(0.14	)		(0.09	)		—
From net realized gain on investments		(0.05	)		—			(0.01	)		(0.01	)		—
Total dividends and distributions		(0.21	)		(0.13	)		(0.15	)		(0.10	)		—
Net asset value at end of period	$	10.00		$	9.04		$	8.00		$	6.94		$	10.60
Total investment return (b)		13.15	%(c)		14.77	%		17.96	%		(33.86	%)		6.00	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.01	%††		1.52	%		2.37	%		1.49	%		0.96	%††
Net expenses (d)		0.12	%††		0.12	%		0.12	%		0.13	%		0.13	%††
Expenses (before reimbursement/waiver) (d)		0.42	%††		0.64	%		0.76	%		1.36	%		35.62	%††
Portfolio turnover rate		70	%		60	%		71	%		148	%		42	%
Net assets at end of period (in 000’s)	$	107,766		$	63,817		$	50,513		$	23,249		$	287

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    53

Financial Highlights selected per share data and ratios

	Class R2
							January 8,
	Six months						2009**
	ended			Year ended			through
	April 30,			October 31,			October 31,
	2011*			2010			2009
Net asset value at beginning of period	$	8.96		$	7.94		$	6.64
Net investment income (loss)		0.09			0.09	(a)		0.08	(a)
Net realized and unrealized gain (loss) on investments		1.05			1.03			1.22
Total from investment operations		1.14			1.12			1.30
Less dividends and distributions:
From net investment income		(0.13	)		(0.10	)		—
From net realized gain on investments		(0.05	)		—			—
Total dividends and distributions		(0.18	)		(0.10	)		—
Net asset value at end of period	$	9.92		$	8.96		$	7.94
Total investment return (b)		13.04	%(c)		14.27	%		19.58	%(c)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.99	%††		1.10	%		1.34	%††
Net expenses (e)		0.47	%††		0.47	%		0.47	%††
Expenses (before waiver/reimbursement) (e)		0.77	%††		0.99	%		1.10	%††
Portfolio turnover rate		70	%		60	%		71	%
Net assets at end of period (in 000’s)	$	3,347		$	2,907		$	1,540

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.
(e)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

54    MainStay Retirement 2030 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R3
										May 1,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.97		$	7.96		$	6.92		$	9.76
Net investment income (loss)		0.07			0.08	(a)		0.14	(a)		0.03	(a)
Net realized and unrealized gain (loss) on investments		1.06			1.02			1.03			(2.87	)
Total from investment operations		1.13			1.10			1.17			(2.84	)
Less dividends and distributions:
From net investment income		(0.11	)		(0.09	)		(0.12	)		—
From net realized gain on investments		(0.05	)		—			(0.01	)		—
Total dividends and distributions		(0.16	)		(0.09	)		(0.13	)		—
Net asset value at end of period	$	9.94		$	8.97		$	7.96		$	6.92
Total investment return (b)		12.78	%(c)		13.97	%		17.28	%		(29.10	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.74	%††		0.91	%		1.98	%		0.79	% ††
Net expenses (d)		0.72	%††		0.72	%		0.72	%		0.73	% ††
Expenses (before waiver/reimbursement) (d)		1.02	%††		1.24	%		1.36	%		1.69	% ††
Portfolio turnover rate		70	%		60	%		71	%		148	%
Net assets at end of period (in 000’s)	$	6,728		$	5,946		$	4,901		$	3,695

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    55

MainStay Retirement 2040 Fund
Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(6/29/07)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		7	.68%		10	.96%		–0	.50%		2	.71%
		Excluding sales charges		13	.94		17	.41		0	.98		2	.71
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		7	.70		10	.99		–0	.45		2	.13
		Excluding sales charges		13	.97		17	.45		1	.03		2	.13
Class I Shares	No Sales Charge			14	.21		17	.94		1	.29		1	.88
Class R2 Shares4	No Sales Charge			13	.94		17	.42		0	.97		2	.23
Class R3 Shares5	No Sales Charge			13	.87		17	.21		0	.68		2	.48

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Class R2 shares were first offered on June 29, 2007, although this class did not commence investment operations until January 8, 2009. Performance figures for Class R2 shares includes the historical performance of Class A shares through January 7, 2009, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R2 shares might have been lower.
5.	Class R3 shares were first offered on June 29, 2007, although this class did not commence investment operations until May 1, 2008. Performance figures for Class R3 shares includes the historical performance of Class A shares through April 30, 2008, adjusted for differences in certain expenses

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

56    MainStay Retirement 2040 Fund

	Six			One			Since
Benchmark Performance	Months			Year			Inception
S&P 500® Index6		16	.36%		17	.22%		–0	.36%
MSCI EAFE® Index7		12	.71		19	.18		–3	.16
Barclays Capital U.S. Aggregate Bond Index8		0	.02		5	.36		6	.64
Average Lipper Mixed-Asset Target 2040 Fund9		13	.31		17	.21		–0	.25

and fees. Unadjusted, the performance shown for Class R3 shares might have been lower.

6.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500 Index is the Fund’s broad-based securities market index. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
7.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE® Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
8.	The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
9.	The average Lipper mixed-asset target 2040 fund is representative of funds that seek to maximize assets for retirement or other purposes with an expected time horizon from January 1, 2036, to December 31, 2040. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    57

Cost in Dollars of a $1,000 Investment in MainStay Retirement 2040 Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,139.40	$	2.49	$	1,022.50	$	2.36
Class A Shares	$	1,000.00	$	1,139.70	$	1.96	$	1,023.00	$	1.86
Class I Shares	$	1,000.00	$	1,142.10	$	0.64	$	1,024.20	$	0.60
Class R2 Shares	$	1,000.00	$	1,139.40	$	2.49	$	1,022.50	$	2.36
Class R3 Shares	$	1,000.00	$	1,138.70	$	3.82	$	1,021.20	$	3.61

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.47% for Investor Class, 0.37% for Class A, 0.12% for Class I, 0.47% for Class R2 and 0.72% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

58    MainStay Retirement 2040 Fund

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

Capital Appreciation	41.9
Growth of Capital	27.7
Total Return	23.3
Current Income	6.9
Other Assets, Less Liabilities	0.2

See Portfolio of Investments beginning on page 63 for specific holdings within these categories.

mainstayinvestments.com    59

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Retirement 2040 Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Retirement 2040 Fund returned 13.94% for Investor Class shares and 13.97% for Class A shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 14.21%, Class R2 shares returned 13.94% and Class R3 shares returned 13.87%. All share classes outperformed the 13.31% return of the average Lipper² mixed-asset target 2040 fund for the six months ended April 30, 2011. Over the same period, all share classes underperformed the 16.36% return of the S&P 500^® Index.³ The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index,⁴ which is an additional benchmark for the Fund. All share classes outperformed the 12.71% return of the MSCI EAFE^® Index,⁵ which is a secondary benchmark for the Fund. See page 56 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in fixed-income securities or in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility (pre-ferring stocks over bonds, high-yield bonds over investment- grade bonds, etc.) as we had done for some time.

We maintained a modest overweight in Underlying Equity Funds relative to the Fund’s target allocation. In the fixed-income portion of the Fund, we emphasized Underlying Funds that invest in convertible and high-yield bonds. This mix contributed positively to relative performance.

During the reporting period, the equity portion of the Fund reflected our preference for Underlying Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ holdings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum. Underlying Fixed Income Funds were selected based upon the type and country of issuance of the securities in which they invested and the average credit quality and duration⁶ of those securities.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery (such as stocks over bonds, lower-credit-quality bonds over U.S. Treasury securities and shorter-duration debt instruments over longer-dated securities). As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.

2. See footnote on page 57 for more information on Lipper Inc.

3. See footnote on page 57 for more information on the S&P 500^® Index.

4. See footnote on page 57 for more information on the Barclays Capital U.S. Aggregate Bond Index.

5. See footnote on page 57 for more information on the MSCI EAFE^® Index.

6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

60    MainStay Retirement 2040 Fund

How did the Fund’s allocations change over the course of the reporting period?

During the reporting period, the Fund shifted out of MainStay Indexed Bond Fund and MainStay High Yield Opportunities Fund into MainStay Flexible Bond Opportunities Fund. MainStay Flexible Bond Opportunities Fund is a multisector bond fund that can move among security types somewhat more nimbly than is possible at the fund-of-funds level.

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underly-ing Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund and MainStay MAP Fund.

In an effort to curb expenses, we reduced the Fund’s positions in some Underlying Funds of unaffiliated investment companies. These included T. Rowe Price Emerging Market Equity Fund and American Century International Bond Fund. The proceeds were redirected to lower-cost Exchange Traded Funds (ETFs) that participate in the same respective market segments.

We lowered the Fund’s asset allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

Early in the reporting period, we initiated a position in MainStay Epoch International Small Cap Fund to access an additional market segment. The position was later enlarged.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Under-lying Equity Funds had the lowest total returns?

Among the Underlying Equity Funds in which the Fund invested, the highest total returns came from Columbia Small Cap Index Fund and MainStay Large Cap Growth Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and Vanguard MSCI Emerging Markets ETF.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

The strongest contributions to the Fund’s absolute return came from a large position in MainStay Common Stock Fund and an allocation to MainStay Epoch U.S. All Cap Fund. (Contributions take weightings and total returns into account.) Although all of the Fund’s Underlying Equity Funds posted positive returns, some of the smallest contributions from Underlying Equity Funds came from MainStay 130/30 Growth Fund and MainStay Growth Equity Fund. Both Underlying Fund positions were of negligible size.

What factors and risks affected the Fund’s Underlying Fixed Income Fund investments during the reporting period?

We anticipated that the yield curve⁷ would eventually rise and flatten in response to several factors. First, we believed the Federal Reserve would eventually need to normalize monetary policy; second, public debt was growing; and third, corporate fundamentals were improving. With these factors in mind, we kept the Fund’s duration shorter than that of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s fixed-income benchmark, through investments in cash and Underlying Funds that invest in floating-rate instruments. At the same time, credit quality was held lower than that of the Barclays Capital U.S. Aggregate Bond Index. Both positioning strategies contributed positively, if only marginally, to relative performance as interest rates moved up slightly and credit spreads⁸ continued to narrow.

During the reporting period, which fixed-income market segments were strong performers and which segments were particularly weak?

The best results came from Underlying Fixed Income Funds that invest in security types that are either directly linked to equity markets (convertible bonds) or especially sensitive to corporate fundamentals (high-yield bonds). Longer-dated U.S. Treasury bonds trailed the broader market and lost value as yields rose modestly during the reporting period.

7. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The U.S. Treasury yield curve is said to flatten when the differential in yield between shorter-maturity and longer-maturity Treasury securities narrows.

8. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.

mainstayinvestments.com    61

Which Underlying Fixed Income Funds made the strongest contributions to the Fund’s overall perfor-mance, and which Underlying Fixed Income Funds were the greatest detractors?

The strongest contributions to return came from positions in MainStay Convertible Fund and MainStay High Yield Corporate Bond Fund. At the other end of the spectrum, a position in MainStay Indexed Bond Fund detracted from the Fund’s performance. Several other Underlying Fixed Income Funds investing in other sectors, including inflation-indexed bonds and international bonds, also detracted from the Fund’s returns.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

62    MainStay Retirement 2040 Fund

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 91.2%†
Equity Funds 80.3%
MainStay 130/30 Core Fund Class I		261,898		$	2,226,131
MainStay 130/30 Growth Fund Class I (a)(b)		32,806			300,835
MainStay 130/30 International Fund Class I		210,845			1,617,178
MainStay Common Stock Fund Class I		718,266			8,913,685
MainStay Epoch Global Choice Fund Class I		50,987			835,677
MainStay Epoch International Small Cap Fund Class I		153,791			3,343,418
MainStay Epoch U.S. All Cap Fund Class I		395,621			10,365,274
MainStay Growth Equity Fund Class I (a)(b)		114,778			1,391,109
MainStay ICAP Equity Fund Class I		90,435			3,569,450
MainStay ICAP International Fund Class I		187,025			6,181,175
MainStay ICAP Select Equity Fund Class I		94,383			3,604,498
MainStay International Equity Fund Class I		150,982			2,012,584
MainStay Large Cap Growth Fund Class I (a)		802,183			6,425,486
MainStay MAP Fund Class I		345,816			12,051,691
MainStay U.S. Small Cap Fund Class I		198,699			3,652,085
Total Equity Funds (Cost $58,925,315)					66,490,276
Fixed Income Funds 10.9%
MainStay Cash Reserves Fund Class I		526,930			526,930
MainStay Convertible Fund Class I		41,085			713,646
MainStay Flexible Bond Opportunities Fund Class I		136,307			1,237,664
MainStay Floating Rate Fund Class I		148,568			1,417,342
MainStay Global High Income Fund Class I		92,567			1,110,807
MainStay High Yield Corporate Bond Fund Class I		158,844			954,651
MainStay High Yield Opportunities Fund Class I		37,858			458,837
MainStay Indexed Bond Fund Class I		87,259			986,898
MainStay Intermediate Term Bond Fund Class I		150,268			1,606,364
Total Fixed Income Funds (Cost $8,842,969)					9,013,139
Total Affiliated Investment Companies (Cost $67,768,284)					75,503,415
Unaffiliated Investment Companies 8.6%
Equity Funds 8.1%
Columbia Funds Series Trust-Columbia SmallCap Index Fund		154,995			2,957,300
Vanguard Emerging Markets ETF		74,426			3,764,467
Total Equity Funds (Cost $6,277,464)					6,721,767
Fixed Income Funds 0.5%
American Century Inflation Adjusted Bond Fund		151			1,866
American Century International Bond Fund Institutional Class		10,674			157,661
iShares Barclays TIPS Bond Fund		1,129			125,500
SPDR Barclays Capital International Treasury Bond ETF		1,941			121,798
Total Fixed Income Funds (Cost $382,879)					406,825
Total Unaffiliated Investment Companies (Cost $6,660,343)					7,128,592
Total Investments (Cost $74,428,627) (c)		99.8	%		82,632,007
Other Assets, Less Liabilities		0.2			142,073
Net Assets		100.0	%	$	82,774,080

†	Percentages indicated are based on Fund net assets.
(a)	Non-income producing Underlying Fund.
(b)	The Fund’s ownership exceeds 5% of the outstanding shares of the Underlying Fund’s share class. (See Note 3)
(c)	At April 30, 2011, cost is $75,091,293 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	8,208,771
Gross unrealized depreciation		(668,057	)
Net unrealized appreciation	$	7,540,714

The following abbreviation is used in the above portfolio:

ETF—Exchange Traded Fund

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    63

Portfolio of Investments April 30, 2011 (unaudited) (continued)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities
Affiliated Investment Companies
Equity Funds	$	66,490,276	$	—	$	—	$	66,490,276
Fixed Income Funds		9,013,139		—		—		9,013,139
Total Affiliated Investment Companies		75,503,415		—		—		75,503,415
Unaffiliated Investment Companies
Equity Funds		6,721,767		—		—		6,721,767
Fixed Income Funds		406,825		—		—		406,825
Total Unaffiliated Investment Companies		7,128,592		—		—		7,128,592
Total Investments in Securities	$	82,632,007	$	—	$	—	$	82,632,007

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

64    MainStay Retirement 2040 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $67,768,284)	$	75,503,415
Investments in unaffiliated investment companies, at value (identified cost $6,660,343)		7,128,592
Cash		117,230
Receivables:
Fund shares sold		176,743
Manager (See Note 3)		17,940
Other assets		45,930
Total assets		82,989,850
Liabilities
Payables:
Investment securities purchased		117,230
Fund shares redeemed		53,425
Transfer agent (See Note 3)		15,688
Professional fees		14,857
Shareholder communication		7,710
NYLIFE Distributors (See Note 3)		4,953
Custodian		704
Trustees		9
Accrued expenses		1,194
Total liabilities		215,770
Net assets	$	82,774,080
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	8,430
Additional paid-in capital		70,106,435
		70,114,865
Undistributed net investment income		51,806
Accumulated net realized gain (loss) on investments		4,404,029
Net unrealized appreciation (depreciation) on investments		8,203,380
Net assets	$	82,774,080
Investor Class
Net assets applicable to outstanding shares	$	2,070,199
Shares of beneficial interest outstanding		211,289
Net asset value per share outstanding	$	9.80
Maximum sales charge (5.50% of offering price)		0.57
Maximum offering price per share outstanding	$	10.37
Class A
Net assets applicable to outstanding shares	$	7,823,388
Shares of beneficial interest outstanding		801,570
Net asset value per share outstanding	$	9.76
Maximum sales charge (5.50% of offering price)		0.57
Maximum offering price per share outstanding	$	10.33
Class I
Net assets applicable to outstanding shares	$	63,320,715
Shares of beneficial interest outstanding		6,438,843
Net asset value and offering price per share outstanding	$	9.83
Class R2
Net assets applicable to outstanding shares	$	4,086,953
Shares of beneficial interest outstanding		417,871
Net asset value and offering price per share outstanding	$	9.78
Class R3
Net assets applicable to outstanding shares	$	5,472,825
Shares of beneficial interest outstanding		560,431
Net asset value and offering price per share outstanding	$	9.77

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    65

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	582,396
Dividend distributions from unaffiliated investment companies		50,744
Total income		633,140
Expenses
Transfer agent (See Note 3)		69,826
Registration		39,654
Manager (See Note 3)		33,487
Distribution/Service—Investor Class (See Note 3)		2,128
Distribution/Service—Class A (See Note 3)		8,970
Distribution/Service—Class R2 (See Note 3)		4,616
Distribution/Service—Class R3 (See Note 3)		12,447
Professional fees		14,938
Shareholder communication		9,587
Shareholder service (See Note 3)		4,336
Custodian		4,135
Trustees		790
Miscellaneous		3,927
Total expenses before waiver/reimbursement		208,841
Expense waiver/reimbursement from Manager (See Note 3)		(133,634	)
Expense reimbursement from Transfer agent (See Note 3)		(1,590	)
Net expenses		73,617
Net investment income (loss)		559,523
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Affiliated investment company transactions		4,178,934
Unaffiliated investment company transactions		831,723
Realized capital gain distributions from affiliated investment companies		52,109
Realized capital gain distributions from unaffiliated investment companies		3,957
Net realized gain (loss) on investments from affiliated and unaffiliated investment companies		5,066,723
Net change in unrealized appreciation (depreciation) on investments		3,066,367
Net realized and unrealized gain (loss) on investments		8,133,090
Net increase (decrease) in net assets resulting from operations	$	8,692,613

66    MainStay Retirement 2040 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	559,523		$	474,077
Net realized gain (loss) on investments from and unaffiliated investment company transactions		5,066,723			3,323,398
Net change in unrealized appreciation (depreciation) on investments		3,066,367			2,249,856
Net increase (decrease) in net assets resulting from operations		8,692,613			6,047,331
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(18,662	)		(8,084	)
Class A		(90,850	)		(65,682	)
Class I		(526,048	)		(361,660	)
Class R2		(41,846	)		(18,538	)
Class R3		(47,438	)		(34,687	)
		(724,844	)		(488,651	)
From net realized gain on investments:
Investor Class		(17,030	)		—
Class A		(77,851	)		—
Class I		(387,508	)		—
Class R2		(39,261	)		—
Class R3		(53,257	)		—
		(574,907	)		—
Total dividends and distributions to shareholders		(1,299,751	)		(488,651	)
Capital share transactions:
Net proceeds from sale of shares		35,431,566			14,894,119
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		1,298,805			488,396
Cost of shares redeemed		(11,086,794	)		(9,413,966	)
Increase (decrease) in net assets derived from capital share transactions		25,643,577			5,968,549
Net increase (decrease) in net assets		33,036,439			11,527,229
Net Assets
Beginning of period		49,737,641			38,210,412
End of period	$	82,774,080		$	49,737,641
Undistributed net investment income at end of period	$	51,806		$	217,127

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    67

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.80		$	7.75		$	6.74		$	9.56
Net investment income (loss)		0.08			0.06	(a)		0.09	(a)		0.06	(a)
Net realized and unrealized gain (loss) on investments		1.13			1.08			1.04			(2.88	)
Total from investment operations		1.21			1.14			1.13			(2.82	)
Less dividends and distributions:
From net investment income		(0.11	)		(0.09	)		(0.12	)		—
From net realized gain on investments		(0.10	)		—			—			—
Total dividends and distributions		(0.21	)		(0.09	)		(0.12	)		—
Net asset value at end of period	$	9.80		$	8.80		$	7.75		$	6.74
Total investment return (b)		13.94	%(c)		14.76	%		17.20	%		(29.50	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.61	%††		0.77	%		1.25	%		1.10	% ††
Net expenses (d)		0.47	%††		0.47	%		0.47	%		0.46	% ††
Expenses (before waiver/reimbursement) (d)		1.12	%††		1.60	%		1.94	%		1.93	% ††
Portfolio turnover rate		79	%		65	%		75	%		145	%
Net assets at end of period (in 000’s)	$	2,070		$	1,337		$	614		$	81

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

68    MainStay Retirement 2040 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	8.77		$	7.72		$	6.75		$	10.61		$	10.00
Net investment income (loss)		0.09			0.08	(a)		0.12	(a)		0.10	(a)		0.02	(a)
Net realized and unrealized gain (loss) on investments		1.12			1.06			1.00			(3.91	)		0.59
Total from investment operations		1.21			1.14			1.12			(3.81	)		0.61
Less dividends and distributions:
From net investment income		(0.12	)		(0.09	)		(0.15	)		(0.04	)		��
From net realized gain on investments		(0.10	)		—			—			(0.01	)		—
Total dividends and distributions		(0.22	)		(0.09	)		(0.15	)		(0.05	)		—
Net asset value at end of period	$	9.76		$	8.77		$	7.72		$	6.75		$	10.61
Total investment return (b)		13.97	%(c)		14.89	%		17.09	%		(36.07	%)		6.10	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.87	%††		0.97	%		1.77	%		1.07	%		0.49	%††
Net expenses (d)		0.37	%††		0.37	%		0.37	%		0.38	%		0.38	%††
Expenses (before waiver/reimbursement) (d)		0.77	%††		1.02	%		1.19	%		2.57	%		39.66	%††
Portfolio turnover rate		79	%		65	%		75	%		145	%		25	%
Net assets at end of period (in 000’s)	$	7,823		$	6,826		$	5,459		$	2,364		$	265

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    69

Financial Highlights selected per share data and ratios

	Class I
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	8.84		$	7.77		$	6.76		$	10.61		$	10.00
Net investment income (loss)		0.10			0.10	(a)		0.14	(a)		0.11	(a)		0.03	(a)
Net realized and unrealized gain (loss) on investments		1.13			1.08			1.00			(3.90	)		0.58
Total from investment operations		1.23			1.18			1.14			(3.79	)		0.61
Less dividends and distributions:
From net investment income		(0.14	)		(0.11	)		(0.13	)		(0.05	)		—
From net realized gain on investments		(0.10	)		—			—			(0.01	)		—
Total dividends and distributions		(0.24	)		(0.11	)		(0.13	)		(0.06	)		—
Net asset value at end of period	$	9.83		$	8.84		$	7.77		$	6.76		$	10.61
Total investment return (b)		14.21	%(c)		15.24	%		17.34	%		(35.96	%)		6.20	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.66	%††		1.22	%		2.04	%		1.25	%		0.75	%††
Net expenses (d)		0.12	%††		0.12	%		0.12	%		0.13	%		0.13	%††
Expenses (before reimbursement/waiver) (d)		0.52	%††		0.77	%		0.94	%		2.02	%		39.47	%††
Portfolio turnover rate		79	%		65	%		75	%		145	%		25	%
Net assets at end of period (in 000’s)	$	63,321		$	33,551		$	27,031		$	11,263		$	273

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

70    MainStay Retirement 2040 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R2
							January 8,
	Six months						2009**
	ended			Year ended			through
	April 30,			October 31,			October 31,
	2011*			2010			2009
Net asset value at beginning of period	$	8.78		$	7.72		$	6.43
Net investment income (loss)		0.08			0.06	(a)		0.05	(a)
Net realized and unrealized gain (loss) on investments		1.13			1.08			1.24
Total from investment operations		1.21			1.14			1.29
Less dividends and distributions:
From net investment income		(0.11	)		(0.08	)		—
From net realized gain on investments		(0.10	)		—			—
Total dividends and distributions		(0.21	)		(0.08	)		—
Net asset value at end of period	$	9.78		$	8.78		$	7.72
Total investment return (b)		13.94	%(c)		14.85	%		20.06	%(c)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.73	%††		0.78	%		0.91	%††
Net expenses (e)		0.47	%††		0.47	%		0.47	%††
Expenses (before waiver/reimbursement) (e)		0.87	%††		1.12	%		1.26	%††
Portfolio turnover rate		79	%		65	%		75	%
Net assets at end of period (in 000’s)	$	4,087		$	3,394		$	1,425

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.
(e)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    71

Financial Highlights selected per share data and ratios

	Class R3
										May 1,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.76		$	7.72		$	6.73		$	9.71
Net investment income (loss)		0.08			0.05	(a)		0.11	(a)		0.04	(a)
Net realized and unrealized gain (loss) on investments		1.12			1.06			0.99			(3.02	)
Total from investment operations		1.20			1.11			1.10			(2.98	)
Less dividends and distributions:
From net investment income		(0.09	)		(0.07	)		(0.11	)		—
From net realized gain on investments		(0.10	)		—			—			—
Total dividends and distributions		(0.19	)		(0.07	)		(0.11	)		—
Net asset value at end of period	$	9.77		$	8.76		$	7.72		$	6.73
Total investment return (b)		13.87	%(c)		14.47	%		16.77	%		(30.69	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.49	%††		0.61	%		1.68	%		1.07	% ††
Net expenses (d)		0.72	%††		0.72	%		0.72	%		0.73	% ††
Expenses (before waiver/reimbursement) (d)		1.12	%††		1.37	%		1.55	%		2.08	% ††
Portfolio turnover rate		79	%		65	%		75	%		145	%
Net assets at end of period (in 000’s)	$	5,473		$	4,628		$	3,682		$	2,767

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

72    MainStay Retirement 2040 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

MainStay Retirement 2050 Fund
Investment and Performance Comparison¹ (Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

									Since			Gross
									Inception			Expense
Class	Sales Charge		Six Months			One Year			(6/29/07)			Ratio2
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges		8	.40%		11	.66%		–0	.90%		3	.30%
		Excluding sales charges		14	.71		18	.16		0	.58		3	.30
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges		8	.47		11	.74		–0	.81		2	.42
		Excluding sales charges		14	.78		18	.24		0	.66		2	.42
Class I Shares	No Sales Charge			14	.83		18	.41		0	.91		2	.17
Class R2 Shares4	No Sales Charge			14	.77		18	.08		0	.57		2	.52
Class R3 Shares5	No Sales Charge			14	.51		17	.69		0	.28		2	.77

1.	The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.
2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Class R2 shares were first offered on June 29, 2007, although this class did not commence investment operations until January 8, 2009. Performance figures for Class R2 shares includes the historical performance of Class A shares through January 7, 2009, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R2 shares might have been lower.
5.	Class R3 shares were first offered on June 29, 2007, although this class did not commence investment operations until May 1, 2008. Performance figures for Class R3 shares includes the historical performance of Class A shares through April 30, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R3 shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    73

	Six			One			Since
Benchmark Performance	Months			Year			Inception
S&P 500® Index6		16	.36%		17	.22%		–0	.36%
MSCI EAFE® Index7		12	.71		19	.18		–3	.16
Barclays Capital U.S. Aggregate Bond Index8		0	.02		5	.36		6	.64
Average Lipper Mixed-Asset Target 2050+ Fund9		13	.71		17	.42		–0	.48

6.	“S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500 Index is the Fund’s broad-based securities market index. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
7.	The Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE® Index”) consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
8.	The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.
9.	The average Lipper mixed-asset target 2050+ fund is representative of funds that seek to maximize assets for retirement or other purposes with an expected time horizon exceeding December 31, 2045. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be read in conjunction with them.

74    MainStay Retirement 2050 Fund

Cost in Dollars of a $1,000 Investment in MainStay Retirement 2050 Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,147.10	$	2.50	$	1,022.50	$	2.36
Class A Shares	$	1,000.00	$	1,147.80	$	1.97	$	1,023.00	$	1.86
Class I Shares	$	1,000.00	$	1,148.30	$	0.64	$	1,024.20	$	0.60
Class R2 Shares	$	1,000.00	$	1,147.70	$	2.50	$	1,022.50	$	2.36
Class R3 Shares	$	1,000.00	$	1,145.10	$	3.83	$	1,021.20	$	3.61

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.47% for Investor Class, 0.37% for Class A, 0.12% for Class I, 0.47% for Class R2 and 0.72% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period. In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.

mainstayinvestments.com    75

Investment Objectives of Underlying Funds as of April 30, 2011 (Unaudited)

See Portfolio of Investments beginning on page 80 for specific holdings within these categories.

‡  Less than one-tenth of a percent.

76    MainStay Retirement 2050 Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investments,¹ the Fund’s Manager.

How did MainStay Retirement 2050 Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Retirement 2050 Fund returned 14.71% for Investor Class shares and 14.78% for Class A shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 14.83%, Class R2 shares returned 14.77% and Class R3 shares returned 14.51%. All share classes outperformed the 13.71% return of the average Lipper² mixed-asset target 2050+ fund for the six months ended April 30, 2011. Over the same period, all share classes underperformed the 16.36% return of the S&P 500^® Index.³ The S&P 500^® Index is the Fund’s broad-based securities-market index. All share classes outperformed the 0.02% return of the Barclays Capital U.S. Aggregate Bond Index,⁴ which is an additional benchmark for the Fund. All share classes outperformed the 12.71% return of the MSCI EAFE^® Index,⁵ which is a secondary benchmark for the Fund. See page 73 for Fund returns with sales charges.

Were there any changes made to the Fund during the reporting period?

Effective January 1, 2011, New York Life Investments assumed day-to-day portfolio management of the Fund. Also, effective January 1, 2011, Jae S. Yoon replaced Tony Elavia as a portfolio manager for the Fund. Jonathan Swaney continued to serve as a portfolio manager for the Fund.

What factors affected the Fund’s relative performance during the reporting period?

The Fund invests in other mutual funds referred to as Underlying Funds. The Underlying Funds may invest in fixed-income securities or in domestic or international stocks at various capitalization levels. The Fund’s primary benchmark, on the other hand, consists entirely of U.S. large-cap stocks.

The Fund’s relative performance was influenced by two main factors: risk posture and capitalization exposure. With the economy stabilizing, corporate profits growing and price valuations at levels we believed to be reasonable, we continued to position the Fund in favor of assets with greater volatility (pre-ferring stocks over bonds, high-yield bonds over investment- grade bonds, etc.) as we had done for some time.

We maintained a modest overweight in Underlying Equity Funds relative to the Fund’s target allocation. In the fixed-income portion of the Fund, we emphasized Underlying Funds that invest in convertible and high-yield bonds. This mix contributed positively to relative performance.

During the reporting period, the equity portion of the Fund reflected our preference for Underlying Funds that invest in large-cap companies. After a prolonged rally in small-cap stocks, we felt that on average, small-cap issues were somewhat expensive relative to opportunities in the large-cap market. We also felt that large-cap companies with expansive overseas distribution channels would be more likely to benefit from a weakening U.S. dollar and higher emerging-market demand. Unfortunately, this positioning was not the strongest we could have chosen in terms of relative performance, because stocks of mid- and small-cap companies outperformed their large-cap counterparts during the reporting period.

How did you allocate the Fund’s assets during the reporting period and why?

In managing the Fund, we considered a variety of information, including the portfolio-level characteristics of the Underlying Funds, such as capitalization, style biases and sector exposure. We also examined the attributes of the Underlying Funds’ holdings, such as valuation metrics, earnings data and technical indicators. Finally, we evaluated the historical success of the portfolio managers responsible for the Underlying Funds. In general, we sought Underlying Equity Funds that had a track record of strong portfolio management, a presence in attractively valued market segments and investments in companies with strong management, fairly priced securities and strong price and earnings momentum. Underlying Fixed Income Funds were selected based upon the type and country of issuance of the securities in which they invested and the average credit quality and duration⁶ of those securities.

During the reporting period, the Fund favored Underlying Funds that invested in assets we believed were likely to be sensitive to the economic recovery (such as stocks over bonds, lower-credit-quality bonds over U.S. Treasury securities and shorter-duration debt instruments over longer-dated securities). As the economy continued to wean itself off of aid from the Federal Reserve and corporate profits continued to rise, these positions were rewarded. We also responded to a premium for growth stocks as compared to value stocks that was small relative to historical norms, and we anticipated that companies would be rewarded for maintaining a high rate of profit growth should the earnings recovery begin to lose momentum in the quarters ahead. With these factors in mind, we tilted the Fund slightly toward Underlying Funds that emphasized growth stocks. During the reporting period, this bias had little impact on performance, since overall results for the growth and value styles were similar.

1. “New York Life Investments” is a service mark used by New York Life Investment Management LLC.

2. See footnote on page 74 for more information on Lipper Inc.

3. See footnote on page 74 for more information on the S&P 500^® Index.

4. See footnote on page 74 for more information on the Barclays Capital U.S. Aggregate Bond Index.

5. See footnote on page 74 for more information on the MSCI EAFE^® Index.

6. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.

mainstayinvestments.com    77

How did the Fund’s allocations change over the course of the reporting period?

During the reporting period, the Fund shifted out of MainStay Indexed Bond Fund and MainStay High Yield Opportunities Fund into MainStay Flexible Bond Opportunities Fund. MainStay Flexible Bond Opportunities Fund is a multisector bond fund that can move among security types somewhat more nimbly than is possible at the fund-of-funds level.

The Fund has historically had extensive holdings among Underlying Equity Funds with quantitative management styles. During the reporting period, we came to believe that the Fund would benefit from a greater emphasis on qualitatively driven Underlying Equity Funds. As a result, we gradually diversified the Fund across different management styles by investing in Underlying Equity Funds that employ a more qualitative approach to security selection. During the reporting period, we reallocated assets from MainStay 130/30 Core Fund into MainStay Large Cap Growth Fund and MainStay MAP Fund.

In an effort to curb expenses, we reduced the Fund’s positions in some Underlying Funds of unaffiliated investment companies. These included T. Rowe Price Emerging Market Equity Fund and American Century International Bond Fund. The proceeds were redirected to lower-cost Exchange Traded Funds (ETFs) that participate in the same respective market segments.

We lowered the Fund’s asset allocation to MainStay International Equity Fund and redirected the proceeds to MainStay ICAP International Fund and MainStay 130/30 International Fund. This reallocation was made to adjust the Fund’s volatility in relation to the market as a whole and to address style considerations.

Early in the reporting period, we initiated a position in MainStay Epoch International Small Cap Fund to access an additional market segment. The position was later enlarged.

During the reporting period, which Underlying Equity Funds had the highest total returns and which Under-lying Equity Funds had the lowest total returns?

Among the Underlying Equity Funds in which the Fund invested, the highest total returns came from Columbia Small Cap Index Fund and MainStay Large Cap Growth Fund. The lowest total returns, although still decidedly positive, came from MainStay International Equity Fund and Vanguard MSCI Emerging Markets ETF.

Which Underlying Equity Funds made the strongest contributions to the Fund’s overall performance, and which Underlying Equity Funds were the greatest detractors?

The strongest contributions to the Fund’s absolute return came from a large position in MainStay Common Stock Fund and an allocation to MainStay Epoch U.S. All Cap Fund. (Contributions take weightings and total returns into account.) Although all of the Fund’s Underlying Equity Funds posted positive returns, some of the smallest contributions from Underlying Equity Funds came from MainStay 130/30 Growth Fund and MainStay Growth Equity Fund. Both Underlying Fund positions were of negligible size.

What factors and risks affected the Fund’s Underlying Fixed Income Fund investments during the reporting period?

We anticipated that the yield curve⁷ would eventually rise and flatten in response to several factors. First, we believed the Federal Reserve would eventually need to normalize monetary policy; second, public debt was growing; and third, corporate fundamentals were improving. With these factors in mind, we kept the Fund’s duration shorter than that of the Barclays Capital U.S. Aggregate Bond Index, the Fund’s fixed-income benchmark, through investments in cash and Underlying Funds that invest in floating-rate instruments. At the same time, credit quality was held lower than that of the Barclays Capital U.S. Aggregate Bond Index. Both positioning strategies contributed positively, if only marginally, to relative performance as interest rates moved up slightly and credit spreads⁸ continued to narrow.

During the reporting period, which fixed-income market segments were strong performers and which segments were particularly weak?

The best results came from Underlying Fixed Income Funds that invest in security types that are either directly linked to equity markets (convertible bonds) or especially sensitive to corporate fundamentals (high-yield bonds). Longer-dated U.S. Treasury bonds trailed the broader market and lost value as yields rose modestly during the reporting period.

7. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The U.S. Treasury yield curve is said to flatten when the differential in yield between shorter-maturity and longer-maturity Treasury securities narrows.

8. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.

78    MainStay Retirement 2050 Fund

Which Underlying Fixed Income Funds made the strongest contributions to the Fund’s overall perfor-mance, and which Underlying Fixed Income Funds were the greatest detractors?

The strongest contributions to return came from positions in MainStay Convertible Fund and MainStay High Yield Corporate Bond Fund. At the other end of the spectrum, a position in MainStay Indexed Bond Fund detracted from the Fund’s performance. Several other Underlying Fixed Income Funds investing in other sectors, including inflation-indexed bonds and international bonds, also detracted from the Fund’s returns.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    79

Portfolio of InvestmentsApril 30, 2011 (unaudited)

	Shares			Value
Affiliated Investment Companies 90.9%†
Equity Funds 84.6%
MainStay 130/30 Core Fund Class I		156,484		$	1,330,118
MainStay 130/30 Growth Fund Class I (a)		20,217			185,388
MainStay 130/30 International Fund Class I		137,612			1,055,485
MainStay Common Stock Fund Class I		443,570			5,504,708
MainStay Epoch Global Choice Fund Class I		30,350			497,438
MainStay Epoch International Small Cap Fund Class I		97,888			2,128,078
MainStay Epoch U.S. All Cap Fund Class I		229,496			6,012,804
MainStay Growth Equity Fund Class I (a)(b)		78,868			955,881
MainStay ICAP Equity Fund Class I		31,683			1,250,514
MainStay ICAP International Fund Class I		119,766			3,958,273
MainStay ICAP Select Equity Fund Class I		54,745			2,090,694
MainStay International Equity Fund Class I		105,218			1,402,554
MainStay Large Cap Growth Fund Class I (a)		504,609			4,041,917
MainStay MAP Fund Class I		213,268			7,432,397
MainStay U.S. Small Cap Fund Class I		203,661			3,743,294
Total Equity Funds (Cost $37,865,686)					41,589,543
Fixed Income Funds 6.3%
MainStay Cash Reserves Fund Class I		155,586			155,586
MainStay Convertible Fund Class I		12,868			223,513
MainStay Flexible Bond Opportunities Fund Class I		40,433			367,135
MainStay Floating Rate Fund Class I		49,580			472,997
MainStay Global High Income Fund Class I		32,067			384,808
MainStay High Yield Corporate Bond Fund Class I		26,466			159,063
MainStay High Yield Opportunities Fund Class I		4,390			53,213
MainStay Indexed Bond Fund Class I		35,984			406,975
MainStay Intermediate Term Bond Fund Class I		82,240			879,145
Total Fixed Income Funds (Cost $3,064,255)					3,102,435
Total Affiliated Investment Companies (Cost $40,929,941)					44,691,978
Unaffiliated Investment Companies 9.1%
Equity Funds 8.8%
Columbia Funds Series Trust-Columbia SmallCap Index Fund		99,234			1,893,385
SPDR S&P Emerging Markets ETF		1,169			90,906
Vanguard Emerging Markets ETF		46,735			2,363,856
Total Equity Funds (Cost $4,075,359)					4,348,147
Fixed Income Funds 0.3%
American Century Inflation Adjusted Bond Fund		106			1,301
American Century International Bond Fund Institutional Class		3,447			50,907
iShares Barclays TIPS Bond Fund		336			37,350
SPDR Barclays Capital International Treasury Bond ETF		720			45,180
Total Fixed Income Funds (Cost $126,627)					134,738
Total Unaffiliated Investment Companies (Cost $4,201,986)					4,482,885
Total Investments (Cost $45,131,927)(c)		100.0	%		49,174,863
Other Assets, Less Liabilities		(0.0	)‡		(21,593	)
Net Assets		100.0	%	$	49,153,270

†	Percentages indicated are based on Fund net assets.
‡	Less than one-tenth of a percent.
(a)	Non-income producing Underlying Fund.
(b)	The Fund’s ownership exceeds 5% of the outstanding shares of the Underlying Fund’s share class. (See Note 3)
(c)	At April 30, 2011, cost is $45,542,921 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	4,043,418
Gross unrealized depreciation		(411,476	)
Net unrealized appreciation	$	3,631,942

The following abbreviation is used in the above portfolio:

ETF—Exchange Traded Fund

80    MainStay Retirement 2050 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities(a)
Affiliated Investment Companies
Equity Funds	$	41,589,543	$	—	$	—	$	41,589,543
Fixed Income Funds		3,102,435		—		—		3,102,435
Total Affiliated Investment Companies		44,691,978		—		—		44,691,978
Unaffiliated Investment Companies
Equity Funds		4,348,147		—		—		4,348,147
Fixed Income Funds		134,738		—		—		134,738
Total Unaffiliated Investment Companies		4,482,885		—		—		4,482,885
Total Investments in Securities	$	49,174,863	$	—	$	—	$	49,174,863

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    81

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in affiliated investment companies, at value (identified cost $40,929,941)	$	44,691,978
Investments in unaffiliated investment companies, at value (identified cost $4,201,986)		4,482,885
Cash		160,402
Receivables:
Fund shares sold		88,267
Manager (See Note 3)		14,756
Other assets		45,222
Total assets		49,483,510
Liabilities
Payables:
Investment securities purchased		160,105
Fund shares redeemed		142,479
Professional fees		13,707
Transfer agent (See Note 3)		6,597
Shareholder communication		3,157
NYLIFE Distributors (See Note 3)		2,370
Custodian		550
Accrued expenses		1,275
Total liabilities		330,240
Net assets	$	49,153,270
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	5,082
Additional paid-in capital		42,378,931
		42,384,013
Undistributed net investment income		8,482
Accumulated net realized gain (loss) on investments		2,717,839
Net unrealized appreciation (depreciation) on investments		4,042,936
Net assets	$	49,153,270
Investor Class
Net assets applicable to outstanding shares	$	866,324
Shares of beneficial interest outstanding		89,910
Net asset value per share outstanding	$	9.64
Maximum sales charge (5.50% of offering price)		0.56
Maximum offering price per share outstanding	$	10.20
Class A
Net assets applicable to outstanding shares	$	2,416,248
Shares of beneficial interest outstanding		250,750
Net asset value per share outstanding	$	9.64
Maximum sales charge (5.50% of offering price)		0.56
Maximum offering price per share outstanding	$	10.20
Class I
Net assets applicable to outstanding shares	$	40,418,156
Shares of beneficial interest outstanding		4,174,644
Net asset value and offering price per share outstanding	$	9.68
Class R2
Net assets applicable to outstanding shares	$	2,205,575
Shares of beneficial interest outstanding		228,673
Net asset value and offering price per share outstanding	$	9.65
Class R3
Net assets applicable to outstanding shares	$	3,246,967
Shares of beneficial interest outstanding		337,747
Net asset value and offering price per share outstanding	$	9.61

82    MainStay Retirement 2050 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividend distributions from affiliated investment companies	$	278,836
Dividend distributions from unaffiliated investment companies		26,099
Total income		304,935
Expenses
Registration		39,524
Transfer agent (See Note 3)		37,476
Manager (See Note 3)		19,192
Distribution/Service—Investor Class (See Note 3)		918
Distribution/Service—Class A (See Note 3)		2,863
Distribution/Service—Class R2 (See Note 3)		2,405
Distribution/Service—Class R3 (See Note 3)		7,330
Professional fees		13,401
Shareholder communication		5,577
Custodian		4,365
Shareholder service (See Note 3)		2,428
Trustees		402
Miscellaneous		3,575
Total expenses before waiver/reimbursement		139,456
Expense waiver/reimbursement from Manager (See Note 3)		(99,154	)
Expense reimbursement from Transfer agent (See Note 3)		(776	)
Net expenses		39,526
Net investment income (loss)		265,409
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Affiliated investment company transactions		2,611,001
Unaffiliated investment company transactions		499,310
Realized capital gain distributions from affiliated investment companies		16,351
Realized capital gain distributions from unaffiliated investment companies		2,193
Net realized gain (loss) on investments from affiliated and unaffiliated investment companies		3,128,855
Net change in unrealized appreciation (depreciation) on investments		1,681,231
Net realized and unrealized gain (loss) on Investments		4,810,086
Net increase (decrease) in net assets resulting from operations	$	5,075,495

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    83

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	265,409		$	188,723
Net realized gain (loss) on investments from affiliated and unaffiliated investment company transactions		3,128,855			1,913,073
Net change in unrealized appreciation (depreciation) on investments		1,681,231			982,359
Net increase (decrease) in net assets resulting from operations		5,075,495			3,084,155
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(7,257	)		(3,360	)
Class A		(26,807	)		(17,225	)
Class I		(247,508	)		(169,995	)
Class R2		(18,222	)		(5,289	)
Class R3		(23,327	)		(17,594	)
		(323,121	)		—
From net realized gain on investments:
Investor Class		(4,929	)		—
Class A		(17,022	)		—
Class I		(131,391	)		—
Class R2		(12,949	)		—
Class R3		(19,928	)		—
		(186,219	)		—
Total dividends and distributions to shareholders		(509,340	)		(213,463	)
Capital share transactions:
Net proceeds from sale of shares		30,522,589			8,896,209
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		509,276			213,435
Cost of shares redeemed		(11,700,200	)		(5,445,050	)
Increase (decrease) in net assets derived from capital share transactions		19,331,665			3,664,594
Net increase (decrease) in net assets		23,897,820			6,535,286
Net Assets
Beginning of period		25,255,450			18,720,164
End of period	$	49,153,270		$	25,255,450
Undistributed net investment income at end of period	$	8,482		$	66,194

84    MainStay Retirement 2050 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.55		$	7.50		$	6.57		$	9.46
Net investment income (loss)		0.07			0.04	(a)		0.09	(a)		0.05	(a)
Net realized and unrealized gain (loss) on investments		1.17			1.08			0.99			(2.94	)
Total from investment operations		1.24			1.12			1.08			(2.89	)
Less dividends and distributions:
From net investment income		(0.09	)		(0.07	)		(0.11	)		—
From net realized gain on investments		(0.06	)		—			(0.04	)		—
Total dividends and distributions		(0.15	)		(0.07	)		(0.15	)		—
Net asset value at end of period	$	9.64		$	8.55		$	7.50		$	6.57
Total investment return (b)		14.71	%(c)		15.08	%		16.92	%		(30.55	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.62	%††		0.55	%		1.30	%		0.81	% ††
Net expenses (d)		0.47	%††		0.47	%		0.47	%		0.46	% ††
Expenses (before waiver/reimbursement) (d)		1.48	%††		2.17	%		2.31	%		2.86	% ††
Portfolio turnover rate		112	%		70	%		67	%		138	%
Net assets at end of period (in 000’s)	$	866		$	650		$	299		$	80

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    85

Financial Highlights selected per share data and ratios

	Class A
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	8.55		$	7.49		$	6.58		$	10.62		$	10.00
Net investment income (loss)		0.07			0.06	(a)		0.11	(a)		0.09	(a)		0.01	(a)
Net realized and unrealized gain (loss) on investments		1.18			1.08			0.97			(4.05	)		0.61
					��
Total from investment operations		1.25			1.14			1.08			(3.96	)		0.62
Less dividends and distributions:
From net investment income		(0.10	)		(0.08	)		(0.13	)		(0.07	)		—
From net realized gain on investments		(0.06	)		—			(0.04	)		(0.01	)		—
Total dividends and distributions		(0.16	)		(0.08	)		(0.17	)		(0.08	)		—
Net asset value at end of period	$	9.64		$	8.55		$	7.49		$	6.58		$	10.62
Total investment return (b)		14.78	%(c)		15.30	%		16.84	%		(37.60	%)		6.30	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.86	%††		0.72	%		1.62	%		0.97	%		0.29	%††
Net expenses (d)		0.37	%††		0.37	%		0.37	%		0.38	%		0.38	%††
Expenses (before waiver/reimbursement) (d)		0.88	%††		1.29	%		1.58	%		3.52	%		39.60	%††
Portfolio turnover rate		112	%		70	%		67	%		138	%		24	%
Net assets at end of period (in 000’s)	$	2,416		$	2,224		$	1,571		$	721		$	270

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

86    MainStay Retirement 2050 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class I
													June 29,
	Six months												2007**
	ended												through
	April 30,			Year ended October 31,									October 31,
	2011*			2010			2009			2008			2007
Net asset value at beginning of period	$	8.60		$	7.53		$	6.59		$	10.63		$	10.00
Net investment income (loss)		0.09			0.08	(a)		0.13	(a)		0.09	(a)		0.02	(a)
Net realized and unrealized gain (loss) on investments		1.17			1.08			0.98			(4.03	)		0.61
Total from investment operations		1.26			1.16			1.11			(3.94	)		0.63
Less dividends and distributions:
From net investment income		(0.12	)		(0.09	)		(0.13	)		(0.09	)		—
From net realized gain on investments		(0.06	)		—			(0.04	)		(0.01	)		—
Total dividends and distributions		(0.18	)		(0.09	)		(0.17	)		(0.10	)		—
Net asset value at end of period	$	9.68		$	8.60		$	7.53		$	6.59		$	10.63
Total investment return (b)		14.83	%(c)		15.56	%		17.31	%		(37.49	%)		6.40	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.33	%††		1.01	%		1.99	%		1.08	%		0.55	%††
Net expenses (d)		0.12	%††		0.12	%		0.12	%		0.13	%		0.13	%††
Expenses (before reimbursement/waiver) (d)		0.63	%††		1.04	%		1.34	%		3.18	%		39.11	%††
Portfolio turnover rate		112	%		70	%		67	%		138	%		24	%
Net assets at end of period (in 000’s)	$	40,418		$	17,917		$	14,283		$	7,191		$	273

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    87

Financial Highlights selected per share data and ratios

	Class R2
							January 8,
	Six months						2009**
	ended			Year ended			through
	April 30,			October 31,			October 31,
	2011*			2010			2009
Net asset value at beginning of period	$	8.55		$	7.49		$	6.22
Net investment income (loss)		0.07			0.04	(a)		0.04	(a)
Net realized and unrealized gain (loss) on investments		1.18			1.09			1.23
Total from investment operations		1.25			1.13			1.27
Less dividends and distributions:
From net investment income		(0.09	)		(0.07	)		—
From net realized gain on investments		(0.06	)		—			—
Total dividends and distributions		(0.15	)		(0.07	)		—
Net asset value at end of period	$	9.65		$	8.55		$	7.49
Total investment return (b)		14.77	%(c)		15.10	%		20.42	%(c)(d)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.59	%††		0.47	%		0.66	%††
Net expenses (e)		0.47	%††		0.47	%		0.47	%††
Expenses (before waiver/reimbursement) (e)		0.98	%††		1.39	%		1.64	%††
Portfolio turnover rate		112	%		70	%		67	%
Net assets at end of period (in 000’s)	$	2,206		$	1,735		$	419

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	Total investment returns may reflect adjustments to conform to generally accepted accounting principles.
(e)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

88    MainStay Retirement 2050 Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class R3
										May 1,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	8.52		$	7.48		$	6.56		$	9.61
Net investment income (loss)		0.06			0.03	(a)		0.10	(a)		0.01	(a)
Net realized and unrealized gain (loss) on investments		1.16			1.07			0.96			(3.06	)
Total from investment operations		1.22			1.10			1.06			(3.05	)
Less dividends and distributions:
From net investment income		(0.07	)		(0.06	)		(0.10	)		—
From net realized gain on investments		(0.06	)		—			(0.04	)		—
Total dividends and distributions		(0.13	)		(0.06	)		(0.14	)		—
Net asset value at end of period	$	9.61		$	8.52		$	7.48		$	6.56
Total investment return (b)		14.51	%(c)		14.78	%		16.66	%		(31.74	%)(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.36	%††		0.39	%		1.49	%		0.28	% ††
Net expenses (d)		0.72	%††		0.72	%		0.72	%		0.73	% ††
Expenses (before waiver/reimbursement) (d)		1.23	%††		1.64	%		1.94	%		2.99	% ††
Portfolio turnover rate		112	%		70	%		67	%		138	%
Net assets at end of period (in 000’s)	$	3,247		$	2,729		$	2,149		$	1,473

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the Underlying Funds in which it invests. Such indirect expenses are not included in the above expense ratios.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    89

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009 and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds” and each individually, referred to as a “Fund”). These financial statements and notes relate to the MainStay Retirement 2010 Fund, MainStay Retirement 2020 Fund, MainStay Retirement 2030 Fund, MainStay Retirement 2040 Fund and MainStay Retirement 2050 Fund (collectively referred to as the “Retirement Funds” and each individually referred to as a “Retirement Fund”). Each is a diversified fund. Each Retirement Fund is the successor of a series of Eclipse Funds Inc. with the same name (each a “Predecessor Fund”). The reorganizations of the Predecessor Funds with and into the respective Retirement Funds occurred on February 26, 2010. All information and references to periods prior to February 26, 2010 relate to the respective Predecessor Fund.

The Retirement Funds each currently offer six classes of shares. Class A shares and Class I shares commenced operations on June 29, 2007. Class R1 was first offered to the public on June 29, 2007, however has not commenced operations. Class R2 shares and Class R3 shares were first offered to the public on June 29, 2007, but did not commence operations until January 8, 2009 and May 1, 2008, respectively. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class I, Class R1, Class R2 and Class R3 shares are offered at NAV and are not subject to a sales charge. Depending on eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The six classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class R3 shares are subject to higher distribution and/or service fee rates than the Investor Class, Class A and Class R2 shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I and Class R1 shares are not subject to a distribution or service fee. Class R1, Class R2 and Class R3 shares are authorized to pay to the New York Life Investment Management LLC, its affiliates, or third-party service providers, as compensation for services rendered to shareholders of Class R1, Class R2 or Class R3 shares, a shareholder service fee. This is in addition to any fees paid under a distribution plan, where applicable.

The investment objective for each of the Retirement Funds is as follows:

Each Retirement Fund seeks to maximize total return over time consistent with its current investment allocation. Total return is defined as a combination of long-term growth of capital and current income. The years in the Funds’ names refer to the approximate year an investor in the Fund would plan to retire and likely would stop making new investments in the Retirement Fund.

The MainStay Retirement 2010 Fund is designed for an investor who has retired or is seeking to retire between 2010 and 2015, and who plans to withdraw the value of the investor’s account in the Fund gradually after retirement.

The MainStay Retirement 2020 Fund is designed for an investor who is seeking to retire between the years 2016 and 2025, and who plans to withdraw the value of the investor’s account in the Fund gradually after retirement.

The MainStay Retirement 2030 Fund is designed for an investor who is seeking to retire between the years 2026 and 2035, and who plans to withdraw the value of the investor’s account in the Fund gradually after retirement.

The MainStay Retirement 2040 Fund is designed for an investor who is seeking to retire between the years 2036 and 2045, and who plans to withdraw the value of the investor’s account in the Fund gradually after retirement.

The MainStay Retirement 2050 Fund is designed for an investor who is seeking to retire between the years 2046 and 2055, and who plans to withdraw the value of the investor’s account in the Fund gradually after retirement.

The Retirement Funds are “funds-of-funds” and may invest in other Funds of the Trust as well as Funds of the Eclipse Funds and The MainStay Funds, each a Massachusetts business trust, and Eclipse Funds Inc., a Maryland corporation, for which New York Life Investments also serves as manager (“Affiliated Underlying Funds”). The Retirement Funds may also invest in other unaffiliated funds, if a New York Life Investments managed mutual fund in a particular asset class is not available. (“Unaffiliated Underlying Funds” and, collectively with the Affiliated Underlying Funds, the “Underlying Funds”).

Note 2–Significant Accounting Policies

The Retirement Funds prepare their financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Retirement Funds are open for business (“valuation date”).

“Fair value” is defined as the price that a Retirement Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or

90    MainStay Retirement Fund

liability based on market data obtained from sources independent of the Retirement Funds. Unobservable inputs reflect each Retirement Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Retirement Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Retirement Funds to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Retirement Funds may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Retirement Funds have procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Retirement Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Retirement Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for each Retirement Fund’s investments is included at the end of each Retirement Fund’s Portfolio of Investments.

Investments in Underlying Funds are valued at their NAV at the close of business each day. These securities are generally categorized as Level 1 in the hierarchy.

The Retirement Funds’ other investments and securities held by the Affiliated Underlying Funds are valued as described below. Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Options contracts are valued at the last posted settlement price on the market where such options are principally traded.

Debt securities are valued at the evaluated bid prices supplied by a pricing agent or brokers selected by the Underlying Fund’s manager in consultation with the Underlying Fund’s subadvisor whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by the Underlying Fund’s manager, in consultation with the Underlying Fund’s subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Debt securities, include corporate bonds, U.S. government & federal agency bonds, municipal bonds, foreign bonds, Yankee bonds, convertible bonds, asset-backed securities, and mortgage-backed securities.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost.

Foreign currency forward contracts are valued at their fair market values determined on the basis of the mean between the last current bid and ask prices based on dealer or exchange quotations.

Loan assignments, participations and commitments are valued at the average of bid quotations obtained from a pricing service. The Underlying Fund has engaged an independent pricing service to provide market value quotations from dealers in loans.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Retirement Funds’ Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Retirement Funds’ Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Retirement Funds did not hold securities that were valued in such a manner.

(B) Income Taxes. Each of the Retirement Funds is treated as a separate entity for federal income tax purposes.

The Retirement Funds’ policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue

mainstayinvestments.com    91

Notes to Financial Statements (unaudited) (continued)

Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of each Retirement Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Retirement Funds’ tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Retirement Funds’ financial statements. The Retirement Funds’ federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Retirement Funds intend to declare and pay dividends of net investment income and distributions of net realized capital gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the respective Retirement Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Retirement Funds record security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividends and distributions received by the Retirement Funds from the Underlying Funds are recorded on the ex-dividend date.

Investment income and realized and unrealized gains and losses on investments of the Retirement Funds are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Retirement Funds in proportion to the net assets of the respective Retirement Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by each Retirement Fund, including those of related parties to the Retirement Funds, are shown in the Statement of Operations.

In addition, the Retirement Funds bear a pro rata share of the fees and expenses of the Underlying Funds in which they invest. Because the Underlying Funds have varied expense and fee levels and the Retirement Funds may own different proportions of the Underlying Funds at different times, the amount of fees and expenses incurred indirectly by the Retirement Funds may vary.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Retirement Funds enter into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Retirement Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Retirement Funds that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Retirement Funds.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Retirement Funds’ Manager, pursuant to a Management Agreement, as amended (“Management Agreement”) and is responsible for the day-to-day portfolio management of the Retirement Funds. The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Retirement Funds. Except for the portion of salaries and expenses that are the responsibility of the Retirement Funds, the Manager also pays the salaries and expenses of all personnel affiliated with the Retirement Funds and the operational expenses of the Retirement Funds. Prior to January 1, 2011, Madison Square Investors LLC (“Madison Square Investors” or “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, served as Subadvisor to the Retirement Funds and was responsible for the day-to-day portfolio management of the Retirement Funds. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments paid for the services of the Subadvisor.

Each Retirement Fund is contractually obligated to pay the Manager a monthly fee for services performed and facilities furnished at an annual rate of 0.10% of the average daily net assets of the respective Retirement Fund. The Manager has contractually agreed to waive this fee so that the effective management fee is 0.00%. This waiver may be modified or terminated only with Board approval. Each Retirement Fund also indirectly pays a proportionate share of the management fees paid to the investment advisers of the Underlying Funds in which each Retirement Fund invests.

92    MainStay Retirement Fund

The Manager has contractually agreed to waive fees and/or reimburse the expenses so that Total Annual Fund Operating Expenses do not exceed the following percentages of average daily net assets: Investor Class, 0.475%; Class A, 0.375%; Class I, 0.125%; Class R1, 0.225%; Class R2, 0.475% and Class R3, 0.725%. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes expense reimbursement from transfer agent, taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses relating to the purchase or sale of portfolio investments, and aquired (underlying) fund fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Retirement Funds as follows:

	Total
MainStay Retirement 2010 Fund	$	25,329
MainStay Retirement 2020 Fund		37,155
MainStay Retirement 2030 Fund		56,245
MainStay Retirement 2040 Fund		33,487
MainStay Retirement 2050 Fund		19,192

For the six-month period ended April 30, 2011, New York Life Investments waived/reimbursed expenses of the Retirement Funds as follows:

	Total
MainStay Retirement 2010 Fund	$	114,505
MainStay Retirement 2020 Fund		123,103
MainStay Retirement 2030 Fund		168,304
MainStay Retirement 2040 Fund		133,634
MainStay Retirement 2050 Fund		99,154

State Street Bank and Trust Company (“State Street”), 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Retirement Funds pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Retirement Funds, maintaining the general ledger and sub-ledger accounts for the calculation of the Retirement Funds’ respective NAVs, and assisting New York Life Investments in conducting various aspects of the Retirement Funds’ administrative operations. For providing these services to the Retirement Funds, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Retirement Funds, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Retirement Funds have adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class, Class A and Class R2 Plans, the Distributor receives a monthly distribution fee from the Investor Class, Class A and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Investor Class, Class A and Class R2 shares for distribution or service activities as designated by the Distributor. Pursuant to the Class R3 Plan, the Distributor receives a monthly distribution/service fee from the Class R3 shares at an annual rate of 0.50% (0.25% for distribution and 0.25% for service activities as designated by the Distributor) of the average daily net assets of the Class R3 shares. Class I and Class R1 shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Retirement Funds’ shares and service activities.

In accordance with the Shareholder Services Plans for the Class R1, Class R2 and Class R3 shares, the Manager has agreed to provide, through its affiliates or independent third parties, various shareholder and administrative support services to shareholders of the Class R1, Class R2 and Class R3 shares. For its services, the Manager is entitled to a Shareholder Service Fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets attributable to the Class R1, Class R2 and Class R3 shares. This is in addition to any fees paid under a distribution plan, where applicable.

Shareholder Service Fees incurred by each Retirement Fund for the six-month period ended April 30, 2011, were as follows:

MainStay Retirement 2010 Fund
Class R2	$	903
Class R3		412

MainStay Retirement 2020 Fund
Class R2	$	901
Class R3		1,001

MainStay Retirement 2030 Fund
Class R2	$	1,520
Class R3		3,133

MainStay Retirement 2040 Fund
Class R2	$	1,847
Class R3		2,489

MainStay Retirement 2050 Fund
Class R2	$	962
Class R3		1,466

(C) Sales Charges. The Retirement Funds were advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares for the six-month period ended April 30, 2011 were as follows:

MainStay Retirement 2010 Fund
Investor Class	$	900
Class A		116

mainstayinvestments.com    93

Notes to Financial Statements (unaudited) (continued)

MainStay Retirement 2020 Fund
Investor Class	$	4,321
Class A		243

MainStay Retirement 2030 Fund
Investor Class	$	5,349
Class A		2,260

MainStay Retirement 2040 Fund
Investor Class	$	4,603
Class A		787

MainStay Retirement 2050 Fund
Investor Class	$	1,605
Class A		638

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Retirement Funds’ transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent offset arrangements represent reimbursements of a portion of the transfer agency fees from unaffiliated underlying funds. Transfer agent expenses incurred by the Retirement Funds for the six-month period ended April 30, 2011, were as follows:

MainStay Retirement 2010 Fund
Investor Class	$	2,341
Class A		6,491
Class I		37,513
Class R2		1,672
Class R3		764

MainStay Retirement 2020 Fund
Investor Class	$	3,966
Class A		9,906
Class I		38,591
Class R2		1,280
Class R3		1,422

MainStay Retirement 2030 Fund
Investor Class	$	4,956
Class A		11,740
Class I		75,260
Class R2		2,625
Class R3		5,413

MainStay Retirement 2040 Fund
Investor Class	$	4,732
Class A		7,151
Class I		49,300
Class R2		3,681
Class R3		4,962

MainStay Retirement 2050 Fund
Investor Class	$	2,870
Class A		2,102
Class I		28,048
Class R2		1,766
Class R3		2,690

For the six-month period ended April 30, 2011, the Retirement Funds were reimbursed transfer agent fees as follows:

	Total
MainStay Retirement 2010 Fund	$	946
MainStay Retirement 2020 Fund		1,714
MainStay Retirement 2030 Fund		3,020
MainStay Retirement 2040 Fund		1,590
MainStay Retirement 2050 Fund		776

(E) Small Amount Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Retirement Funds have implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, the Retirement Funds held the following percentages of outstanding shares of affiliated investment companies:

MainStay Retirement 2010 Fund
MainStay 130/30 Core Fund Class I	0.44	%
MainStay 130/30 Growth Fund Class I	2.94
MainStay 130/30 International Fund Class I	0.27
MainStay Cash Reserves Fund Class I	0.37

94    MainStay Retirement Fund

MainStay Retirement 2010 Fund (Continued)
MainStay Common Stock Fund Class I	1.46	%
MainStay Convertible Fund Class I	0.42
MainStay Epoch Global Choice Fund Class I	1.03
MainStay Epoch International Small Cap Fund Class I	0.55
MainStay Epoch U.S. All Cap Fund Class I	0.70
MainStay Flexible Bond Opportunities Bond Class I	1.47
MainStay Floating Rate Fund Class I	0.28
MainStay Global High Income Fund Class I	2.24
MainStay Growth Equity Fund Class I	0.87
MainStay High Yield Corporate Bond Fund Class I	0.08
MainStay High Yield Opportunities Fund Class I	0.14
MainStay ICAP Equity Fund Class I	0.23
MainStay ICAP International Fund Class I	0.26
MainStay ICAP Select Equity Fund Class I	0.07
MainStay Indexed Bond Fund Class I	2.20
MainStay Intermediate Term Bond Fund Class I	0.83
MainStay International Equity Fund Class I	0.09
MainStay Large Cap Growth Fund Class I	0.06
MainStay MAP Fund Class I	0.41
MainStay U.S. Small Cap Fund Class I	0.41

MainStay Retirement 2020 Fund
MainStay 130/30 Core Fund Class I	0.85	%
MainStay 130/30 Growth Fund Class I	5.11
MainStay 130/30 International Fund Class I	0.67
MainStay Cash Reserves Fund Class I	0.57
MainStay Common Stock Fund Class I	3.18
MainStay Convertible Fund Class I	0.63
MainStay Epoch Global Choice Fund Class I	1.56
MainStay Epoch International Small Cap Fund Class I	1.05
MainStay Epoch U.S. All Cap Fund Class I	1.31
MainStay Flexible Bond Opportunities Fund Class I	2.17
MainStay Floating Rate Fund Class I	0.44
MainStay Global High Income Fund Class I	3.83
MainStay Growth Equity Fund Class I	5.18
MainStay High Yield Corporate Bond Fund Class I	0.11
MainStay High Yield Opportunities Fund Class I	0.19
MainStay ICAP Equity Fund Class I	0.50
MainStay ICAP International Fund Class I	0.56
MainStay ICAP Select Equity Fund Class I	0.13
MainStay Indexed Bond Fund Class I	1.80
MainStay International Equity Fund Class I	0.35
MainStay Intermediate Term Bond Fund Class I	0.85
MainStay Large Cap Growth Fund Class I	0.09
MainStay MAP Fund Class I	0.84
MainStay U.S. Small Cap Fund Class I	0.49

MainStay Retirement 2030 Fund
MainStay 130/30 Core Fund Class I	1.32	%
MainStay 130/30 Growth Fund Class I	8.98
MainStay 130/30 International Fund Class I	1.44
MainStay Cash Reserves Fund	0.50
MainStay Common Stock Fund Class I	6.08
MainStay Convertible Fund Class I	0.69
MainStay Epoch Global Choice Fund Class I	2.47
MainStay Epoch International Small Cap Fund	2.02
MainStay Epoch U.S. All Cap Growth Fund Class I	2.36
MainStay Flexible Bond Opportunities Fund Class I	2.46
MainStay Floating Rate Fund Class I	0.76
MainStay Global High Income Fund Class I	8.32
MainStay Growth Equity Fund Class I	22.17
MainStay High Yield Corporate Bond Fund Class I	0.14
MainStay High Yield Opportunities Fund Class I	0.24
MainStay ICAP Equity Fund Class I	0.96
MainStay ICAP International Fund Class I	1.18
MainStay ICAP Select Equity Fund Class I	0.22
MainStay Indexed Bond Fund Class I	0.50
MainStay Intermediate Term Bond Fund Class I	0.63
MainStay International Equity Fund Class I	0.78
MainStay Large Cap Growth Fund Class I	0.16
MainStay MAP Fund Class I	1.69
MainStay U.S. Small Cap Fund Class I	1.31

MainStay Retirement 2040 Fund
MainStay 130/30 Core Fund Class I	0.82	%
MainStay 130/30 Growth Fund Class I	5.84
MainStay 130/30 International Fund Class I	1.02
MainStay Cash Reserves Fund Class I	0.14
MainStay Common Stock Fund Class I	4.07
MainStay Convertible Fund Class I	0.21
MainStay Epoch Global Choice Fund Class I	1.52
MainStay Epoch International Small Cap Fund Class I	1.35
MainStay Epoch U.S. All Cap Fund Class I	1.55
MainStay Flexible Bond Opportunities Fund Class I	0.69
MainStay Floating Rate Fund Class I	0.27

mainstayinvestments.com    95

Notes to Financial Statements (unaudited) (continued)

MainStay Retirement 2040 Fund (Continued)
MainStay Global High Income Fund Class I	3.04	%
MainStay Growth Equity Fund Class I	19.51
MainStay High Yield Corporate Bond Fund Class I	0.05
MainStay High Yield Opportunities Fund Class I	0.10
MainStay ICAP Equity Fund Class I	0.48
MainStay ICAP International Fund Class I	0.80
MainStay ICAP Select Equity Fund Class I	0.14
MainStay Indexed Bond Fund Class I	0.20
MainStay Intermediate Term Bond Fund Class I	0.34
MainStay International Equity Fund Class I	0.76
MainStay Large Cap Growth Fund Class I	0.10
MainStay MAP Fund Class I	1.14
MainStay U.S. Small Cap Fund Class I	1.75

MainStay Retirement 2050 Fund
MainStay 130/30 Core Fund Class I	0.49	%
MainStay 130/30 Growth Fund Class I	3.60
MainStay 130/30 International Fund Class I	0.66
MainStay Cash Reserves Fund Class I	0.04
MainStay Common Stock Fund Class I	2.52
MainStay Convertible Fund Class I	0.07
MainStay Epoch Global Choice Fund Class I	0.90
MainStay Epoch International Small Cap Fund Class I	0.86
MainStay Epoch U.S. All Cap Fund Class I	0.90
MainStay Flexible Bond Opportunities Fund Class I	0.21
MainStay Floating Rate Fund Class I	0.09
MainStay Global High Income Fund Class I	1.05
MainStay Growth Equity Fund Class I	13.41
MainStay High Yield Corporate Bond Fund Class I	0.01
MainStay High Yield Opportunities Fund Class I	0.01
MainStay ICAP Equity Fund Class I	0.17
MainStay ICAP International Fund Class I	0.51
MainStay ICAP Select Equity Fund Class I	0.08
MainStay Indexed Bond Fund Class I	0.08
MainStay Intermediate Term Bond Fund Class I	0.18
MainStay International Equity Fund Class I	0.53
MainStay Large Cap Growth Fund Class I	0.06
MainStay MAP Fund Class I	0.70
MainStay U.S. Small Cap Fund Class I	1.79

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Retirement Funds by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Retirement Funds through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were as follows:

MainStay Retirement 2010 Fund	$	685
MainStay Retirement 2020 Fund		1,025
MainStay Retirement 2030 Fund		1,573
MainStay Retirement 2040 Fund		946
MainStay Retirement 2050 Fund		546

Effective March 18, 2011, the Retirement Funds are no longer directly responsible for any portion of the cost of legal services provided to the Retirement Funds by OGC.

Note 4–Federal Income Tax

The tax character of distributions paid during the year ended October 31, 2010 shown in the Statement of Changes in Net Assets, was as follows:

	2010
	Tax-Based		Tax-Based
	Distributions		Distributions
	from Ordinary		from Long-Term
	Income		Gains		Total
MainStay Retirement 2010 Fund	$	935,726	$	—	$	935,726
MainStay Retirement 2020 Fund		1,082,428		—		1,082,428
MainStay Retirement 2030 Fund		1,051,998		—		1,051,998
MainStay Retirement 2040 Fund		488,651		—		488,651
MainStay Retirement 2050 Fund		213,463		—		213,463

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Retirement Funds. Custodial fees are charged to the Retirement Funds based on the market value of securities in the Retirement Funds and the number of certain cash transactions incurred by the Retirement Funds.

96    MainStay Retirement Fund

Note 6–Line of Credit

The Retirement Funds and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Retirement Funds on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities (in 000’s)

For the six-month period ended April 30, 2011, purchases and sales of securities were as follows:

	MainStay Retirement 2010 Fund				MainStay Retirement 2020 Fund				MainStay Retirement 2030 Fund
	Purchases		Sales		Purchases		Sales		Purchases		Sales
U.S. Government Securities	$	—	$	—	$	—	$	—	$	—	$	—
All Others		36,796		29,704		51,171		38,558		114,596		79,128
Total	$	36,796	$	29,704	$	51,171	$	38,558	$	114,596	$	79,128

	MainStay Retirement 2040 Fund				MainStay Retirement 2050 Fund
	Purchases		Sales		Purchases		Sales
U.S. Government Securities	$	—	$	—	$	—	$	—
All Others		77,435		52,572		61,873		42,690
Total	$	77,435	$	52,572	$	61,873	$	42,690

Note 8–Capital Share Transactions

MainStay Retirement 2010 Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		15,893		$	160,791
Shares issued to shareholders in reinvestment of dividends and distributions		1,884			18,630
Shares redeemed		(6,239	)		(63,067	)
Net increase (decrease)		11,538		$	116,354
Year ended October 31, 2010:
Shares sold		32,781		$	312,399
Shares issued to shareholders in reinvestment of dividends		434			4,024
Shares redeemed		(4,545	)		(42,911	)
Net increase (decrease)		28,670		$	273,512
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		83,374		$	846,620
Shares issued to shareholders in reinvestment of dividends and distributions		26,839			264,628
Shares redeemed		(84,608	)		(853,789	)
Net increase (decrease)		25,605		$	257,459
Year ended October 31, 2010:
Shares sold		144,380		$	1,372,805
Shares issued to shareholders in reinvestment of dividends		15,415			142,596
Shares redeemed		(189,531	)		(1,790,461	)
Net increase (decrease)		(29,736	)	$	(275,060	)

mainstayinvestments.com    97

Notes to Financial Statements (unaudited) (continued)

Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,523,681		$	15,384,751
Shares issued to shareholders in reinvestment of dividends and distributions		147,181			1,458,560
Shares redeemed		(900,937	)		(9,146,842	)
Net increase (decrease)		769,925		$	7,696,469
Year ended October 31, 2010:
Shares sold		1,181,700		$	11,220,848
Shares issued to shareholders in reinvestment of dividends		79,405			737,674
Shares redeemed		(1,397,657	)		(13,213,481	)
Net increase (decrease)		(136,552	)	$	(1,254,959	)
Class R2	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		19,288		$	194,372
Shares issued to shareholders in reinvestment of dividends and distributions		6,898			68,157
Shares redeemed		(25,105	)		(252,693	)
Net increase (decrease)		1,081		$	9,836
Year ended October 31, 2010:
Shares sold		45,714		$	434,695
Shares issued to shareholders in reinvestment of dividends		3,533			32,713
Shares redeemed		(71,595	)		(680,293	)
Net increase (decrease)		(22,348	)	$	(212,885	)
Class R3	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		2,098		$	21,231
Shares issued to shareholders in reinvestment of dividends and distributions		2,905			28,728
Shares redeemed		(13,849	)		(139,604	)
Net increase (decrease)		(8,846	)	$	(89,645	)
Year ended October 31, 2010:
Shares sold		7,655		$	72,183
Shares issued to shareholders in reinvestment of dividends		2,019			18,719
Shares redeemed		(32,534	)		(301,647	)
Net increase (decrease)		(22,860	)	$	(210,745	)

MainStay Retirement 2020 Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		81,926		$	803,632
Shares issued to shareholders in reinvestment of dividends and distributions		7,679			72,956
Shares redeemed		(11,879	)		(115,588	)
Net increase (decrease) in shares outstanding before conversion		77,726			761,000
Shares converted from Investor Class (See Note 1)		(8,498	)		(83,124	)
Net increase (decrease)		69,228		$	677,876
Year ended October 31, 2010:
Shares sold		134,132		$	1,197,146
Shares issued to shareholders in reinvestment of dividends		2,000			17,599
Shares redeemed		(25,731	)		(231,819	)
Net increase (decrease) in shares outstanding before conversion		110,401			982,926
Shares converted into Investor Class (See Note 1)		1,161			10,587
Shares converted from Investor Class (See Note 1)		(16,630	)		(150,114	)
Net increase (decrease)		94,932		$	843,399
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		118,006		$	1,151,806
Shares issued to shareholders in reinvestment of dividends and distributions		51,748			490,568
Shares redeemed		(109,491	)		(1,059,224	)
Net increase (decrease) in shares outstanding before conversion		60,263			583,150
Shares converted into Class A (See Note 1)		8,514			83,124
Net increase (decrease)		68,777		$	666,274
Year ended October 31, 2010:
Shares sold		285,232		$	2,527,707
Shares issued to shareholders in reinvestment of dividends		22,685			199,170
Shares redeemed		(205,000	)		(1,827,517	)
Net increase (decrease) in shares outstanding before conversion		102,917			899,360
Shares converted into Class A (See Note 1)		16,653			150,114
Shares converted from Class A (See Note 1)		(1,163	)		(10,587	)
Net increase (decrease)		118,407		$	1,038,887

98    MainStay Retirement Fund

						��
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,910,611		$	18,591,624
Shares issued to shareholders in reinvestment of dividends and distributions		189,958			1,806,497
Shares redeemed		(819,786	)		(7,985,579	)
Net increase (decrease)		1,280,783		$	12,412,542
Year ended October 31, 2010:
Shares sold		1,741,398		$	15,618,479
Shares issued to shareholders in reinvestment of dividends		93,163			820,771
Shares redeemed		(1,901,355	)		(16,942,828	)
Net increase (decrease)		(66,794	)	$	(503,578	)
Class R2	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		13,886		$	135,283
Shares issued to shareholders in reinvestment of dividends and distributions		6,375			60,502
Shares redeemed		(7,384	)		(70,462	)
Net increase (decrease)		12,877		$	125,323
Year ended October 31, 2010 (a):
Shares sold		73,783		$	671,682
Shares issued to shareholders in reinvestment of dividends		2,091			18,380
Shares redeemed		(19,324	)		(175,261	)
Net increase (decrease)		56,550		$	514,801
Class R3	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		11,390		$	110,336
Shares issued to shareholders in reinvestment of dividends and distributions		6,860			65,105
Shares redeemed		(12,168	)		(118,151	)
Net increase (decrease)		6,082		$	57,290
Year ended October 31, 2010:
Shares sold		17,087		$	152,566
Shares issued to shareholders in reinvestment of dividends		3,016			26,508
Shares redeemed		(19,394	)		(172,971	)
Net increase (decrease)		709		$	6,103
(a) Class R2 shares first commenced investment operations on January 8, 2009.

MainStay Retirement 2030 Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		80,831		$	762,251
Shares issued to shareholders in reinvestment of dividends and distributions		4,350			39,973
Shares redeemed		(16,489	)		(155,929	)
Net increase (decrease) in shares outstanding before conversion		68,692			646,295
Shares converted into Investor Class (See Note 1)		709			6,782
Shares converted from Investor Class (See Note 1)		(3,081	)		(29,176	)
Net increase (decrease)		66,320		$	623,901
Year ended October 31, 2010:
Shares sold		149,946		$	1,258,688
Shares issued to shareholders in reinvestment of dividends		1,219			10,126
Shares redeemed		(17,737	)		(148,742	)
Net increase (decrease) in shares outstanding before conversion		133,428			1,120,072
Shares converted into Investor Class (See Note 1)		2,882			24,961
Shares converted from Investor Class (See Note 1)		(13,656	)		(116,287	)
Net increase (decrease)		122,654		$	1,028,746
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		188,235		$	1,766,778
Shares issued to shareholders in reinvestment of dividends and distributions		30,275			277,315
Shares redeemed		(144,320	)		(1,352,769	)
Net increase (decrease) in shares outstanding before conversion		74,190			691,324
Shares converted into Class A (See Note 1)		3,087			29,176
Shares converted from Class A (See Note 1)		(710	)		(6,782	)
Net increase (decrease)		76,567		$	713,718
Year ended October 31, 2010:
Shares sold		282,839		$	2,358,816
Shares issued to shareholders in reinvestment of dividends		18,191			150,443
Shares redeemed		(189,735	)		(1,585,647	)
Net increase (decrease) in shares outstanding before conversion		111,295			923,612
Shares converted into Class A (See Note 1)		13,689			116,287
Shares converted from Class A (See Note 1)		(2,889	)		(24,961	)
Net increase (decrease)		122,095		$	1,014,938

mainstayinvestments.com    99

Notes to Financial Statements (unaudited) (continued)

Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		5,327,800		$	50,183,899
Shares issued to shareholders in reinvestment of dividends and distributions		166,847			1,538,330
Shares redeemed		(1,775,163	)		(16,879,594	)
Net increase (decrease)		3,719,484		$	34,842,635
Year ended October 31, 2010:
Shares sold		2,224,743		$	18,725,669
Shares issued to shareholders in reinvestment of dividends		97,231			808,959
Shares redeemed		(1,572,241	)		(13,182,775	)
Net increase (decrease)		749,733		$	6,351,853
Class R2	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		28,214		$	265,425
Shares issued to shareholders in reinvestment of dividends and distributions		6,388			58,514
Shares redeemed		(21,689	)		(199,765	)
Net increase (decrease)		12,913		$	124,174
Year ended October 31, 2010:
Shares sold		230,106		$	1,950,994
Shares issued to shareholders in reinvestment of dividends		2,734			22,641
Shares redeemed		(102,375	)		(843,645	)
Net increase (decrease)		130,465		$	1,129,990
Class R3	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		23,570		$	221,500
Shares issued to shareholders in reinvestment of dividends and distributions		11,856			108,961
Shares redeemed		(21,643	)		(202,711	)
Net increase (decrease)		13,783		$	127,750
Year ended October 31, 2010:
Shares sold		67,869		$	569,152
Shares issued to shareholders in reinvestment of dividends		7,208			59,829
Shares redeemed		(28,024	)		(236,349	)
Net increase (decrease)		47,053		$	392,632

MainStay Retirement 2040 Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		75,185		$	692,699
Shares issued to shareholders in reinvestment of dividends and distributions		3,929			35,404
Shares redeemed		(16,044	)		(147,949	)
Net increase (decrease) in shares outstanding before conversion		63,070			580,154
Shares converted into Investor Class (See Note 1)		173			1,623
Shares converted from Investor Class (See Note 1)		(4,012	)		(37,313	)
Net increase (decrease)		59,231		$	544,464
Year ended October 31, 2010:
Shares sold		88,883		$	728,276
Shares issued to shareholders in reinvestment of dividends		994			8,084
Shares redeemed		(16,886	)		(139,458	)
Net increase (decrease) in shares outstanding before conversion		72,991			596,902
Shares converted into Investor Class (See Note 1)		483			4,085
Shares converted from Investor Class (See Note 1)		(637	)		(5,376	)
Net increase (decrease)		72,837		$	595,611
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		87,557		$	806,549
Shares issued to shareholders in reinvestment of dividends and distributions		18,734			168,043
Shares redeemed		(87,155	)		(799,155	)
Net increase (decrease) in shares outstanding before conversion		19,136			175,437
Shares converted into Class A (See Note 1)		4,029			37,313
Shares converted from Class A (See Note 1)		(173	)		(1,623	)
Net increase (decrease)		22,992		$	211,127
Year ended October 31, 2010:
Shares sold		171,077		$	1,392,600
Shares issued to shareholders in reinvestment of dividends		8,087			65,427
Shares redeemed		(108,115	)		(890,542	)
Net increase (decrease) in shares outstanding before conversion		71,049			567,485
Shares converted into Class A (See Note 1)		639			5,376
Shares converted from Class A (See Note 1)		(485	)		(4,085	)
Net increase (decrease)		71,203		$	568,776

100    MainStay Retirement Fund

Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		3,594,197		$	33,178,595
Shares issued to shareholders in reinvestment of dividends and distributions		101,169			913,557
Shares redeemed		(1,052,543	)		(9,783,144	)
Net increase (decrease)		2,642,823		$	24,309,008
Year ended October 31, 2010:
Shares sold		1,242,546		$	10,231,009
Shares issued to shareholders in reinvestment of dividends		44,430			361,660
Shares redeemed		(968,618	)		(7,905,780	)
Net increase (decrease)		318,358		$	2,686,889
Class R2	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		55,578		$	510,796
Shares issued to shareholders in reinvestment of dividends and distributions		9,021			81,106
Shares redeemed		(33,423	)		(306,026	)
Net increase (decrease)		31,176		$	285,876
Year ended October 31, 2010:
Shares sold		246,911		$	2,066,813
Shares issued to shareholders in reinvestment of dividends		2,286			18,538
Shares redeemed		(47,016	)		(385,515	)
Net increase (decrease)		202,181		$	1,699,836
Class R3	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		26,328		$	242,927
Shares issued to shareholders in reinvestment of dividends and distributions		11,200			100,695
Shares redeemed		(5,519	)		(50,520	)
Net increase (decrease)		32,009		$	293,102
Year ended October 31, 2010:
Shares sold		58,272		$	475,421
Shares issued to shareholders in reinvestment of dividends		4,277			34,687
Shares redeemed		(11,297	)		(92,671	)
Net increase (decrease)		51,252		$	417,437

MainStay Retirement 2050 Fund

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		24,707		$	224,163
Shares issued to shareholders in reinvestment of dividends and distributions		1,378			12,186
Shares redeemed		(9,209	)		(83,153	)
Net increase (decrease) in shares outstanding before conversion		16,876			153,196
Shares converted from Investor Class (See Note 1)		(2,978	)		(26,741	)
Net increase (decrease)		13,898		$	126,455
Year ended October 31, 2010:
Shares sold		40,499		$	321,366
Shares issued to shareholders in reinvestment of dividends		425			3,360
Shares redeemed		(4,749	)		(38,188	)
Net increase (decrease)		36,175		$	286,538
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		50,495		$	452,592
Shares issued to shareholders in reinvestment of dividends and distributions		4,951			43,765
Shares redeemed		(67,773	)		(607,207	)
Net increase (decrease) in shares outstanding before conversion		(12,327	)		(110,850	)
Shares converted into Class A (See Note 1)		2,978			26,741
Net increase (decrease)		(9,349	)	$	(84,109	)
Year ended October 31, 2010:
Shares sold		67,378		$	534,027
Shares issued to shareholders in reinvestment of dividends		2,180			17,197
Shares redeemed		(19,037	)		(149,462	)
Net increase (decrease)		50,521		$	401,762
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		3,236,059		$	29,348,234
Shares issued to shareholders in reinvestment of dividends and distributions		42,717			378,899
Shares redeemed		(1,187,483	)		(10,833,116	)
Net increase (decrease)		2,091,293		$	18,894,017
Year ended October 31, 2010:
Shares sold		797,895		$	6,381,929
Shares issued to shareholders in reinvestment of dividends		21,464			169,995
Shares redeemed		(632,521	)		(5,040,806	)
Net increase (decrease)		186,838		$	1,511,118

mainstayinvestments.com    101

Notes to Financial Statements (unaudited) (continued)

Class R2	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		34,006		$	308,504
Shares issued to shareholders in reinvestment of dividends and distributions		3,522			31,171
Shares redeemed		(11,730	)		(104,345	)
Net increase (decrease)		25,798		$	235,330
Year ended October 31, 2010:
Shares sold		160,749		$	1,314,761
Shares issued to shareholders in reinvestment of dividends		669			5,289
Shares redeemed		(14,551	)		(115,325	)
Net increase (decrease)		146,867		$	1,204,725
Class R3	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		20,897		$	189,096
Shares issued to shareholders in reinvestment of dividends and distributions		4,899			43,255
Shares redeemed		(8,208	)		(72,379	)
Net increase (decrease)		17,588		$	159,972
Year ended October 31, 2010:
Shares sold		43,337		$	344,126
Shares issued to shareholders in reinvestment of dividends		2,230			17,594
Shares redeemed		(12,741	)		(101,269	)
Net increase (decrease)		32,826		$	260,451

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Retirement Funds as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Retirement Funds’ management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

102    MainStay Retirement Fund

Board Consideration and Approval of Management Agreements (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreements between the MainStay Retirement 2010 Fund, MainStay Retirement 2020 Fund, MainStay Retirement 2030 Fund, MainStay Retirement 2040 Fund and MainStay Retirement 2050 Fund (“Retirement Funds”) and New York Life Investment Management LLC (“New York Life Investments”). In approving these agreements (the “Agreements”), the Board noted that because it had approved the termination of the Subadvisory Agreements between New York Life Investments and Madison Square Investors LLC (“MSI”) on behalf of the Retirement Funds at its meeting on December 2, 2010, to be effective January 1, 2011, New York Life Investments would be assuming day-to-day portfolio management responsibilities for the Retirement Funds on that date.

The Board previously considered and approved the Agreements at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Retirement Funds prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Retirement Funds’ investment performance, management fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Retirement Funds, and the rationale for any differences in the Retirement Funds’ management fees and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Retirement Funds to New York Life Investments and its affiliates, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Retirement Funds prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Retirement Funds by New York Life Investments; (ii) the investment performance of the Retirement Funds and New York Life Investments; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates from their relationship with the Retirement Funds; (iv) the extent to which economies of scale may be realized as the Retirement Funds grow, and the extent to which economies of scale may benefit Retirement Funds investors; and (v) the reasonableness of the Retirement Funds’ management fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year with respect to New York Life Investments and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Retirement Funds, and that the Retirement Funds’ shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Retirement Funds. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Retirement Funds. The Board evaluated New York Life Investments’ experience in serving as manager of the Retirement Funds, noting that New York Life Investments manages other mutual funds and serves a variety of other investment advisory clients, including other pooled investment vehicles. The Board considered the experience of senior personnel at New York Life Investments providing investment advisory, management and administrative services to the Retirement Funds, as well as New York Life Investments’ reputation and financial condition. In this regard, the Board considered the experience of each Retirement Fund’s portfolio managers, the number of accounts managed by the portfolio managers and New York Life Investments’ method for compensating portfolio managers. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Retirement Funds’ legal and compliance environment, for overseeing compliance with the Retirement Funds’ policies and investment objectives, and for implementing

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Board Consideration and Approval of Management Agreements (Unaudited) (continued)

Board directives as they relate to the Retirement Funds. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Retirement Funds, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Retirement Funds’ officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Retirement Funds’ prospectus.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Retirement Funds likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ experience, personnel, operations and resources.

Investment Performance

In evaluating the Retirement Funds’ investment performance, the Board considered investment performance results in light of the Retirement Funds’ investment objectives, strategies and risks, as disclosed in the Retirement Funds’ prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Retirement Funds’ performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Retirement Funds’ gross and net returns, the Retirement Funds’ investment performance relative to relevant investment categories and Fund benchmarks, the Retirement Funds’ risk-adjusted investment performance, and the Retirement Funds’ investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Retirement Funds as compared to peer funds. In evaluating the performance of the Retirement Funds, the Board also took into account whether the Retirement Funds had been in operation for a sufficient time period to establish a meaningful investment performance track record. The Board further noted that, while the historical investment performance of the Retirement Funds related to periods in which MSI served as subadvisor, one of the portfolio managers of the Retirement Funds for MSI would remain a portfolio manager as an employee of New York Life Investments upon the assumption of day-to-day portfolio management responsibilities by New York Life Investments.

In considering the Retirement Funds’ investment performance, the Board focused principally on each Retirement Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Retirement Funds’ investment performance, as well as discussions between the Retirement Funds’ portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Because the Retirement Funds invest substantially all of their assets in other funds advised by New York Life Investments, the Board considered the rationale for the allocation among and selection of the underlying funds in which the Retirement Funds invest, including the investment performance of the underlying funds.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Retirement Funds, along with ongoing efforts by New York Life Investments to enhance investment returns, supported a determination to approve the Agreements. The Retirement Funds disclose more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Retirement Funds’ prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments

The Board considered the costs of the services provided by New York Life Investments under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Retirement Funds. The Board noted that the shareholders of the Retirement Funds indirectly pay the management fees of the underlying funds in which the Retirement Funds invest. The Board considered that the Retirement Funds’ investments in underlying funds that are affiliates of New York Life Investments indirectly benefit New York Life Investments.

In evaluating any costs and profits of New York Life Investments and its affiliates due to their relationships with the Retirement Funds, the Board considered, among other factors, New York Life Investments’ investments in personnel, systems, equipment and other resources necessary to manage the Retirement Funds. The Board acknowledged that New York Life Investments must be in a position to pay and retain experienced professional personnel to provide services to the Retirement Funds, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Retirement Funds. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that each Retirement Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Retirement Funds, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Retirement Funds, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Retirement Funds. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Retirement Funds, New York Life Investments’ affiliates also earn revenues from serving the Retirement Funds in various other

104    MainStay Retirement Fund

capacities, including as the Retirement Funds’ transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Retirement Funds to New York Life Investments and its affiliates was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Retirement Funds to New York Life Investments and its affiliates as part of the contract review processes, when considering the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Retirement Funds on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates due to their relationships with the Retirement Funds supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the Retirement Funds Grow

The Board also considered whether the Retirement Funds’ expense structures permitted economies of scale to be shared with Retirement Fund investors. The Board reviewed information from New York Life Investments showing how the Retirement Funds’ management fee schedules compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Retirement Funds’ management fee schedules hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Retirement Funds benefit from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Retirement Funds in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees. The Board also noted that it separately considers economies of scale as part of its review of the management agreements of the underlying funds in which the Retirement Funds invest.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Retirement Funds’ expense structures appropriately reflect economies of scale for the benefit of Retirement Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Retirement Funds’ expense structures as the Retirement Funds grow over time.

Management Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Retirement Funds’ expected total ordinary operating expenses. The Board also considered the impact of the Retirement Funds’ expense limitation arrangements pursuant to which New York Life Investments has agreed to waive its management fee entirely and to limit the Retirement Funds’ total ordinary operating expenses.

In assessing the reasonableness of the Retirement Funds’ fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. The Board also considered the reasonableness of the fees and expenses the Retirement Funds indirectly pay by investing in underlying funds that charge management fees. The Board considered New York Life Investments’ process for monitoring and disclosing potential conflicts in the selection of underlying funds for the Retirement Funds. In addition, the Board considered information provided by New York Life Investments on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Retirement Funds. In this regard, the Board took into account explanations from New York Life Investments about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Retirement Funds’ management fees and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Retirement Funds based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Retirement Funds’ average net assets. The Board took into account information from New York Life Investments showing that the Retirement Funds’ transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Retirement Funds’ transfer agent, charges the Retirement Funds are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Funds.

The Board observed that, because the Retirement Funds’ transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing

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Board Consideration and Approval of Management Agreements (Unaudited) (continued)

Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Retirement Funds’ management fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

106    MainStay Retirement Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Retirement Funds’ securities is available without charge, upon request, (i) by visiting the Retirement Funds’ website at mainstayinvestments.com; and (ii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

The Retirement Funds are required to file with the SEC their proxy voting records for each Retirement Fund for the 12-month period ending June 30 on Form N-PX. The most recent Form N-PX is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the MainStay Funds’ website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

Each Retirement Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Each Retirement Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com    107

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23079 MS136-11 MSRF10-06/11

C1

MainStay S&P 500 Index Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	10
Financial Statements	18
Notes to Financial Statements	23
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	30
Proxy Voting Policies and Procedures and Proxy Voting Record	33
Shareholder Reports and Quarterly Portfolio Disclosure	33

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

															Gross
															Expense
Class	Sales Charge		Six Months			One Year			Five Years			Ten Years			Ratio2
Investor Class Shares3	Maximum 3% Initial Sales Charge	With sales charges		12	.47%		12	.84%		1	.74%		1	.95%		1	.01%
		Excluding sales charges		15	.95		16	.33		2	.36		2	.26		1	.01
Class A Shares4	Maximum 3% Initial Sales Charge	With sales charges		12	.54		12	.95		1	.77		1	.97		0	.74
		Excluding sales charges		16	.02		16	.44		2	.39		2	.28		0	.74
Class I Shares	No Sales Charge			16	.14		16	.74		2	.69		2	.58		0	.49

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Performance figures for Class A shares, first offered on January 2, 2004, includes the historical performance of Class I shares through January 1, 2004, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class A shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
S&P 500® Index5		16	.36%		17	.22%		2	.95%		2	.82%
Average Lipper S&P 500 Index Objective Fund6		16	.03		16	.54		2	.43		2	.31

5.

“S&P 500®” and “S&P®” are trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by New York Life Investments. Standard & Poor’s does not sponsor, endorse, sell or promote the Fund or represent the advisability of investing in the Fund. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all dividends and capital gains. The S&P 500® Index is the Fund’s broad-based securities market index for comparison purposes. An investment cannot be made directly in an index.

6.

The average Lipper S&P 500 Index objective fund is representative of funds that are passively managed and commit by prospectus language to replicate the performance of the S&P 500® Index (including reinvested basis dividends). In addition, S&P 500® Index objective funds have limited expenses (advisor fee no higher than 0.50%). This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay S&P 500 Index Fund

Cost in Dollars of a $1,000 Investment in MainStay S&P 500 Index Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	1,159.50	$	3.75	$	1,021.30	$	3.51
Class A Shares	$	1,000.00	$	1,160.20	$	3.21	$	1,021.80	$	3.01
Class I Shares	$	1,000.00	$	1,161.40	$	1.88	$	1,023.10	$	1.76

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (0.70% for Investor Class, 0.60% for Class A and 0.35% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Industry Composition as of April 30, 2011 (Unaudited)

Oil, Gas & Consumable Fuels	10.3	%
Pharmaceuticals	5.3
Computers & Peripherals	4.1
Diversified Financial Services	3.8
Insurance	3.7
Software	3.5
Media	3.2
IT Services	3.0
Aerospace & Defense	2.7
Commercial Banks	2.6
Diversified Telecommunication Services	2.5
Semiconductors & Semiconductor Equipment	2.5
Industrial Conglomerates	2.4
Machinery	2.4
Beverages	2.3
Capital Markets	2.3
Energy Equipment & Services	2.3
Food & Staples Retailing	2.2
Chemicals	2.1
Communications Equipment	2.0
Health Care Providers & Services	2.0
Household Products	2.0
Health Care Equipment & Supplies	1.8
Specialty Retail	1.8
Food Products	1.7
Internet Software & Services	1.7
Electric Utilities	1.6
Hotels, Restaurants & Leisure	1.6
Tobacco	1.6
Real Estate Investment Trusts	1.5
Multi-Utilities	1.2
Biotechnology	1.1
Metals & Mining	1.1
Air Freight & Logistics	1.0
Internet & Catalog Retail	0.9
Consumer Finance	0.8
Road & Rail	0.8
Multiline Retail	0.7
Automobiles	0.5
Commercial Services & Supplies	0.5
Electrical Equipment	0.5
Life Sciences Tools & Services	0.5
Textiles, Apparel & Luxury Goods	0.5
Electronic Equipment & Instruments	0.4
Household Durables	0.4
Wireless Telecommunication Services	0.3
Auto Components	0.2
Construction & Engineering	0.2
Independent Power Producers & Energy Traders	0.2
Paper & Forest Products	0.2
Personal Products	0.2
Airlines	0.1
Containers & Packaging	0.1
Distributors	0.1
Diversified Consumer Services	0.1
Gas Utilities	0.1
Health Care Technology	0.1
Leisure Equipment & Products	0.1
Office Electronics	0.1
Professional Services	0.1
Real Estate Management & Development	0.1
Thrifts & Mortgage Finance	0.1
Trading Companies & Distributors	0.1
Building Products	0.0	‡
Construction Materials	0.0	‡
Short-Term Investments	4.1
Other Assets, Less Liabilities	0.0	‡
	100.0	%

See Portfolio of Investments beginning on page 10 for specific holdings within these categories.

‡  Less than one-tenth of a percent.

Top Ten Holdings as of April 30, 2011 (excluding short-term investments)

1.	ExxonMobil Corp.
2.	Apple, Inc.
3.	Chevron Corp.
4.	General Electric Co.
5.	International Business Machines Corp.
6.	Microsoft Corp.
7.	AT&T, Inc.
8.	JPMorgan Chase & Co.
9.	Procter & Gamble Co. (The)
10.	Johnson & Johnson

8    MainStay S&P 500 Index Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Francis J. Ok and Lee Baker of Madison Square Investors LLC, the Fund’s Subadvisor.

How did MainStay S&P 500 Index Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay S&P 500 Index Fund returned 15.95% for Investor Class shares and 16.02% for Class A shares for the six months ended April 30, 2011. Over the same period, the Fund’s Class I shares returned 16.14%. Investor Class shares and Class A shares underperformed and Class I shares outperformed the 16.03% return of the average Lipper¹ S&P 500 Index objective fund for the six months ended April 30, 2011. All share classes underperformed the 16.36% return of the S&P 500^® Index² for the six months ended April 30, 2011. Because the Fund incurs operating expenses that the Index does not, the Fund’s net performance will typically lag that of the Index. The S&P 500^® Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

During the reporting period, how was the Fund’s performance materially affected by derivatives?

MainStay S&P 500 Index Fund invests in futures contracts to provide an efficient means of maintaining liquidity while remaining fully invested in the market. Since these futures track the performance of the S&P 500^® Index closely, they had a positive impact on the Fund’s overall performance.

During the reporting period, which S&P 500^® industries had the highest total returns and which industries had the lowest total returns?

During the reporting period, the S&P 500^® industries with the highest total returns were real estate management & development, energy equipment & services, and health care technology. The S&P 500^® industries with the lowest total returns were airlines, office electronics and Internet software & services.

During the reporting period, which industries made the strongest contributions to the Fund’s absolute perfor-mance and which industries made the weakest contributions?

During the reporting period, the S&P 500^® industries that made the strongest positive contributions to the Fund’s absolute performance were oil, gas & consumable fuels, energy equipment & services, and media. (Contributions take weightings and total returns into account.) Over the same period, the S&P 500^® industries that made the weakest contributions to the Fund’s absolute performance were Internet software & services, communications equipment and office electronics.

During the reporting period, which individual stocks in the S&P 500^® Index had the highest total returns and which S&P 500^® stocks had the lowest total returns?

During the reporting period, the S&P 500^® stocks with the highest total returns were petroleum marketer and refiner Tesoro, telecommunications and fiber optics company JDS Uniphase and independent natural gas producer Cabot Oil & Gas. Over the same period, the S&P 500^® stocks with the lowest total returns were imaging and printing company Eastman Kodak, Internet software & services company Akamai Technologies and communications equipment company Tellabs.

During the reporting period, which S&P 500^® stocks made the strongest contributions to the Fund’s absolute performance and which stocks made the weakest contributions?

During the reporting period, the S&P 500^® stocks that made the strongest contributions to the Fund’s absolute performance were oil, gas & consumable fuels companies ExxonMobil and Chevron and industrial conglomerate General Electric. Over the same period, the S&P 500^® Index stocks that made the weakest contributions to the Fund’s absolute performance were networking and communications provider Cisco Systems, Internet software & services company Google and capital markets company Goldman Sachs Group.

Were there any changes in the S&P 500^® Index during the reporting period?

During the reporting period, there were 12 additions to and 12 deletions from the S&P 500^® Index. In terms of index weight, significant additions to the Index included health care products company Covidien and investment management and advisory firm BlackRock. Significant deletions included biotechnology company Genzyme and diversified telecommunication services company Qwest Communications International.

 
1. See footnote on page 6 for more information on Lipper Inc.
2. See footnote on page 6 for more information on the S&P 500^® Index.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    9

Portfolio of Investments^†††April 30, 2011 (unaudited)

	Shares		Value
Common Stocks 95.9%†
Aerospace & Defense 2.7%
Boeing Co. (The)		83,867	$	6,690,909
General Dynamics Corp.		42,451		3,091,282
Goodrich Corp.		14,245		1,258,831
Honeywell International, Inc.		88,848		5,440,163
ITT Corp.		20,851		1,204,979
L-3 Communications Holdings, Inc.		12,894		1,033,970
Lockheed Martin Corp.		32,723		2,593,298
Northrop Grumman Corp.		33,464		2,128,645
Precision Castparts Corp.		16,162		2,497,352
Raytheon Co.		41,610		2,020,166
Rockwell Collins, Inc.		17,884		1,128,480
Textron, Inc.		31,168		813,485
United Technologies Corp.		105,140		9,418,441
				39,320,001
Air Freight & Logistics 1.0%
C.H. Robinson Worldwide, Inc.		18,862		1,512,355
Expeditors International of Washington, Inc.		24,127		1,309,372
FedEx Corp.		35,756		3,420,777
United Parcel Service, Inc. Class B		112,659		8,446,045
				14,688,549
Airlines 0.1%
Southwest Airlines Co.		84,801		996,412
Auto Components 0.2%
Goodyear Tire & Rubber Co. (The) (a)		27,617		501,249
Johnson Controls, Inc.		76,535		3,137,935
				3,639,184
Automobiles 0.5%
Ford Motor Co. (a)		430,862		6,665,435
Harley-Davidson, Inc.		26,776		997,674
				7,663,109
Beverages 2.3%
Brown-Forman Corp. Class B		11,805		848,307
Coca-Cola Co. (The)		261,328		17,629,187
Coca-Cola Enterprises, Inc.		37,721		1,071,654
Constellation Brands, Inc. Class A (a)		20,153		451,226
Dr. Pepper Snapple Group, Inc.		25,879		1,014,457
Molson Coors Brewing Co. Class B		17,960		875,550
PepsiCo., Inc.		180,905		12,462,545
				34,352,926
Biotechnology 1.1%
Amgen, Inc. (a)		106,215		6,038,323
Biogen Idec, Inc. (a)		27,509		2,678,001
Celgene Corp. (a)		53,463		3,147,901
Cephalon, Inc. (a)		8,547		656,410
Gilead Sciences, Inc. (a)		90,587		3,518,399
				16,039,034
Building Products 0.0%‡
Masco Corp.		40,763		547,039
Capital Markets 2.3%
Ameriprise Financial, Inc.		28,560		1,772,434
Bank of New York Mellon Corp. (The)		141,326		4,092,801
BlackRock, Inc.		10,878		2,131,435
Charles Schwab Corp. (The)		112,627		2,062,200
E*TRADE Financial Corp. (a)		28,209		458,114
Federated Investors, Inc. Class B		10,422		268,679
Franklin Resources, Inc.		16,664		2,151,656
Goldman Sachs Group, Inc. (The)		59,286		8,952,779
Invesco, Ltd.		53,259		1,324,551
Janus Capital Group, Inc.		20,875		254,049
Legg Mason, Inc.		17,578		653,023
Morgan Stanley		176,298		4,610,193
Northern Trust Corp.		27,527		1,376,075
State Street Corp.		57,064		2,656,329
T. Rowe Price Group, Inc.		29,128		1,871,474
				34,635,792
Chemicals 2.1%
Air Products & Chemicals, Inc.		24,149		2,306,713
Airgas, Inc.		8,469		588,172
CF Industries Holdings, Inc.		8,083		1,144,149
Dow Chemical Co. (The)		133,028		5,452,818
E.I. du Pont de Nemours & Co.		104,974		5,961,473
Eastman Chemical Co.		8,216		881,166
Ecolab, Inc.		26,529		1,399,670
FMC Corp.		8,249		728,222
International Flavors & Fragrances, Inc.		9,083		576,952
Monsanto Co.		61,473		4,182,623
PPG Industries, Inc.		18,293		1,731,798
Praxair, Inc.		34,817		3,705,225
Sherwin-Williams Co. (The)		10,274		845,447
Sigma-Aldrich Corp.		13,789		973,228
				30,477,656
Commercial Banks 2.6%
BB&T Corp.		78,786		2,120,919
Comerica, Inc.		20,043		760,231
Fifth Third Bancorp		104,472		1,386,343
First Horizon National Corp.		29,695		325,160
Huntington Bancshares, Inc.		98,283		667,342
KeyCorp		108,369		939,559
M&T Bank Corp.		13,526		1,195,293

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest holdings, as of April 30, 2011, excluding short-term investments. May be subject to change daily

10    MainStay S&P 500 Index Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares		Value
Common Stocks (continued)
Commercial Banks (continued)
Marshall & Ilsley Corp.		59,976	$	490,004
PNC Financial Services Group, Inc.		59,737		3,724,005
Regions Financial Corp.		142,786		1,048,049
SunTrust Banks, Inc.		61,034		1,720,548
U.S. Bancorp		217,962		5,627,779
Wells Fargo & Co.		600,054		17,467,572
Zions Bancorp		19,657		480,614
				37,953,418
Commercial Services & Supplies 0.5%
Avery Dennison Corp.		12,510		522,167
Cintas Corp.		14,192		440,662
Iron Mountain, Inc.		22,917		729,906
Pitney Bowes, Inc.		23,516		577,553
R.R. Donnelley & Sons Co.		23,456		442,380
Republic Services, Inc.		34,833		1,101,420
Stericycle, Inc. (a)		9,698		885,233
Waste Management, Inc.		54,289		2,142,244
				6,841,565
Communications Equipment 2.0%
Cisco Systems, Inc.		629,003		11,045,293
F5 Networks, Inc. (a)		9,203		932,816
Harris Corp.		14,672		779,523
JDS Uniphase Corp. (a)		25,184		524,834
Juniper Networks, Inc. (a)		60,926		2,335,294
Motorola Mobility Holdings, Inc. (a)		33,158		864,097
Motorola Solutions, Inc. (a)		37,893		1,738,531
QUALCOMM, Inc.		187,223		10,641,755
Tellabs, Inc.		43,455		213,799
				29,075,942
Computers & Peripherals 4.1%
X  Apple, Inc. (a)		104,939		36,542,908
Dell, Inc. (a)		192,428		2,984,559
EMC Corp. (a)		235,621		6,677,499
Hewlett-Packard Co.		248,033		10,013,092
Lexmark International, Inc. Class A (a)		8,924		287,799
NetApp, Inc. (a)		41,906		2,178,274
SanDisk Corp. (a)		26,486		1,301,522
Western Digital Corp. (a)		26,060		1,037,188
				61,022,841
Construction & Engineering 0.2%
Fluor Corp.		20,340		1,422,580
Jacobs Engineering Group, Inc. (a)		14,289		708,877
Quanta Services, Inc. (a)		23,969		519,648
				2,651,105
Construction Materials 0.0%‡
Vulcan Materials Co.		14,584		659,197
Consumer Finance 0.8%
American Express Co.		119,024		5,841,698
Capital One Financial Corp.		51,935		2,842,403
Discover Financial Services		61,847		1,536,279
SLM Corp. (a)		60,641		1,006,034
				11,226,414
Containers & Packaging 0.1%
Ball Corp.		19,299		720,046
Bemis Co., Inc.		12,414		389,055
Owens-Illinois, Inc. (a)		18,601		551,891
Sealed Air Corp.		18,148		467,674
				2,128,666
Distributors 0.1%
Genuine Parts Co.		17,919		962,250
Diversified Consumer Services 0.1%
Apollo Group, Inc. Class A (a)		14,446		578,273
DeVry, Inc.		7,170		379,293
H&R Block, Inc.		35,092		606,741
				1,564,307
Diversified Financial Services 3.8%
Bank of America Corp.		1,152,838		14,156,851
Citigroup, Inc. (a)		3,308,860		15,187,667
CME Group, Inc.		7,642		2,260,274
IntercontinentalExchange, Inc. (a)		8,416		1,012,866
X  JPMorgan Chase & Co.		453,734		20,703,882
Leucadia National Corp.		22,406		866,216
Moody’s Corp.		23,192		907,735
NASDAQ OMX Group, Inc. (The) (a)		16,965		459,752
NYSE Euronext		29,628		1,186,601
				56,741,844
Diversified Telecommunication Services 2.5%
X  AT&T, Inc.		673,328		20,953,967
CenturyLink, Inc.		67,153		2,738,499
Frontier Communications Corp.		112,781		932,699
Verizon Communications, Inc.		321,388		12,142,039
Windstream Corp.		57,522		736,857
				37,504,061
Electric Utilities 1.6%
American Electric Power Co., Inc.		54,501		1,988,197
Duke Energy Corp.		149,885		2,795,355
Edison International		37,043		1,454,679
Entergy Corp.		20,618		1,437,487
Exelon Corp.		75,151		3,167,615
FirstEnergy Corp.		47,516		1,898,739

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
Electric Utilities (continued)
NextEra Energy, Inc.		48,014	$	2,716,152
Northeast Utilities		20,032		713,139
Pepco Holdings, Inc.		25,452		490,460
Pinnacle West Capital Corp.		12,347		535,736
PPL Corp.		64,270		1,762,926
Progress Energy, Inc.		33,264		1,578,377
Southern Co.		95,486		3,727,773
				24,266,635
Electrical Equipment 0.5%
Emerson Electric Co.		85,539		5,197,350
Rockwell Automation, Inc.		16,132		1,405,581
Roper Industries, Inc.		10,705		925,875
				7,528,806
Electronic Equipment & Instruments 0.4%
Amphenol Corp. Class A		19,739		1,103,608
Corning, Inc.		177,534		3,717,562
FLIR Systems, Inc.		17,969		632,868
Jabil Circuit, Inc.		22,250		441,440
Molex, Inc.		15,654		422,658
				6,318,136
Energy Equipment & Services 2.3%
Baker Hughes, Inc.		49,001		3,793,167
Cameron International Corp. (a)		27,525		1,451,118
Diamond Offshore Drilling, Inc.		7,902		599,525
FMC Technologies, Inc. (a)		27,287		1,268,300
Halliburton Co.		103,557		5,227,557
Helmerich & Payne, Inc.		12,027		797,871
Nabors Industries, Ltd. (a)		32,434		993,778
National-Oilwell Varco, Inc.		47,642		3,653,665
Noble Corp.		29,141		1,253,354
Rowan Cos., Inc. (a)		14,343		598,103
Schlumberger, Ltd.		154,862		13,898,865
				33,535,303
Food & Staples Retailing 2.2%
Costco Wholesale Corp.		49,719		4,023,262
CVS Caremark Corp.		155,842		5,647,714
Kroger Co. (The)		73,036		1,775,505
Safeway, Inc.		43,452		1,056,318
SUPERVALU, Inc.		24,115		271,535
Sysco Corp.		66,928		1,934,888
Wal-Mart Stores, Inc.		223,146		12,268,567
Walgreen Co.		105,064		4,488,334
Whole Foods Market, Inc.		16,604		1,042,067
				32,508,190
Food Products 1.7%
Archer-Daniels-Midland Co.		72,698		2,691,280
Campbell Soup Co.		20,788		698,269
ConAgra Foods, Inc.		46,576		1,138,783
Dean Foods Co. (a)		20,700		231,633
General Mills, Inc.		73,049		2,818,230
H.J. Heinz Co.		36,173		1,853,143
Hershey Co. (The)		17,554		1,013,041
Hormel Foods Corp.		15,759		463,472
J.M. Smucker Co. (The)		13,590		1,020,201
Kellogg Co.		28,692		1,643,191
Kraft Foods, Inc. Class A		198,280		6,658,242
McCormick & Co., Inc.		15,146		743,972
Mead Johnson Nutrition Co.		23,251		1,555,027
Sara Lee Corp.		70,893		1,361,146
Tyson Foods, Inc. Class A		33,905		674,710
				24,564,340
Gas Utilities 0.1%
Nicor, Inc.		5,173		286,740
ONEOK, Inc.		12,094		845,854
				1,132,594
Health Care Equipment & Supplies 1.8%
Baxter International, Inc.		66,470		3,782,143
Becton, Dickinson & Co.		25,221		2,167,493
Boston Scientific Corp. (a)		172,440		1,291,575
C.R. Bard, Inc.		9,784		1,044,442
CareFusion Corp. (a)		25,283		742,562
Covidien PLC		56,245		3,132,284
DENTSPLY International, Inc.		16,239		609,612
Edwards Lifesciences Corp. (a)		13,089		1,130,235
Intuitive Surgical, Inc. (a)		4,483		1,567,705
Medtronic, Inc.		121,808		5,085,484
St. Jude Medical, Inc.		37,129		1,984,174
Stryker Corp.		38,841		2,291,619
Varian Medical Systems, Inc. (a)		13,833		971,077
Zimmer Holdings, Inc. (a)		21,881		1,427,735
				27,228,140
Health Care Providers & Services 2.0%
Aetna, Inc.		43,857		1,814,803
AmerisourceBergen Corp.		31,722		1,289,182
Cardinal Health, Inc.		39,938		1,744,891
CIGNA Corp.		30,954		1,449,576
Coventry Health Care, Inc. (a)		16,866		544,266
DaVita, Inc. (a)		11,053		973,659
Express Scripts, Inc. (a)		59,951		3,401,620
Humana, Inc. (a)		19,242		1,464,701
Laboratory Corp. of America Holdings (a)		11,702		1,128,892
McKesson Corp.		28,863		2,395,918
Medco Health Solutions, Inc. (a)		46,133		2,737,071
Patterson Cos., Inc.		10,999		381,775
Quest Diagnostics, Inc.		17,675		996,516
Tenet Healthcare Corp. (a)		55,163		382,280

12    MainStay S&P 500 Index Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares		Value
Common Stocks (continued)
Health Care Providers & Services (continued)
UnitedHealth Group, Inc.		125,311	$	6,169,060
WellPoint, Inc.		42,832		3,289,069
				30,163,279
Health Care Technology 0.1%
Cerner Corp. (a)		8,057		968,290
Hotels, Restaurants & Leisure 1.6%
Carnival Corp.		49,440		1,882,181
Chipotle Mexican Grill, Inc. Class A (a)		3,534		942,836
Darden Restaurants, Inc.		15,749		739,731
International Game Technology		33,890		599,514
Marriott International, Inc. Class A		32,566		1,149,580
McDonald’s Corp.		118,836		9,306,047
Starbucks Corp.		84,121		3,044,339
Starwood Hotels & Resorts Worldwide, Inc.		21,604		1,286,950
Wyndham Worldwide Corp.		20,332		703,690
Wynn Resorts, Ltd.		8,558		1,259,310
Yum! Brands, Inc.		53,096		2,848,069
				23,762,247
Household Durables 0.4%
D.R. Horton, Inc.		31,843		396,127
Fortune Brands, Inc.		17,323		1,127,381
Harman International Industries, Inc.		7,901		383,436
Leggett & Platt, Inc.		16,646		437,623
Lennar Corp. Class A		18,082		343,377
Newell Rubbermaid, Inc.		32,998		628,942
Pulte Group, Inc. (a)		38,297		311,355
Stanley Black & Decker, Inc.		18,833		1,368,217
Whirlpool Corp.		8,641		744,681
				5,741,139
Household Products 2.0%
Clorox Co. (The)		15,799		1,100,558
Colgate-Palmolive Co.		56,332		4,751,604
Kimberly-Clark Corp.		46,561		3,075,820
X  Procter & Gamble Co. (The)		318,828		20,691,937
				29,619,919
Independent Power Producers & Energy Traders 0.2%
AES Corp. (The) (a)		75,861		1,004,400
Constellation Energy Group, Inc.		22,978		836,859
NRG Energy, Inc. (a)		28,816		697,347
				2,538,606
Industrial Conglomerates 2.4%
3M Co.		81,085		7,882,273
X  General Electric Co.		1,209,482		24,733,907
Tyco International, Ltd.		54,037		2,633,763
				35,249,943
Insurance 3.7%
ACE, Ltd.		38,548		2,592,353
Aflac, Inc.		53,532		3,007,963
Allstate Corp. (The)		61,222		2,071,752
American International Group, Inc. (a)		16,347		509,209
Aon Corp.		37,293		1,945,576
Assurant, Inc.		11,518		457,265
Berkshire Hathaway, Inc. Class B (a)		197,155		16,423,012
Chubb Corp. (The)		33,673		2,195,143
Cincinnati Financial Corp.		18,497		585,985
Genworth Financial, Inc. Class A (a)		55,630		678,130
Hartford Financial Services Group, Inc. (The)		50,514		1,463,391
Lincoln National Corp.		36,013		1,124,686
Loews Corp.		36,162		1,600,530
Marsh & McLennan Cos., Inc.		61,674		1,867,489
MetLife, Inc.		119,808		5,605,816
Principal Financial Group, Inc.		36,415		1,229,006
Progressive Corp. (The)		75,942		1,666,167
Prudential Financial, Inc.		55,274		3,505,477
Torchmark Corp.		8,888		594,785
Travelers Cos., Inc. (The)		49,564		3,136,410
Unum Group		35,323		935,353
XL Group PLC		35,474		866,275
				54,061,773
Internet & Catalog Retail 0.9%
Amazon.com, Inc. (a)		40,584		7,974,756
Expedia, Inc.		23,652		592,010
Netflix, Inc. (a)		4,941		1,149,622
Priceline.com, Inc. (a)		5,605		3,065,991
				12,782,379
Internet Software & Services 1.7%
Akamai Technologies, Inc. (a)		20,621		710,187
eBay, Inc. (a)		130,146		4,477,022
Google, Inc. Class A (a)		28,567		15,543,305
Monster Worldwide, Inc. (a)		14,756		242,146
VeriSign, Inc.		19,798		731,734
Yahoo!, Inc. (a)		148,444		2,634,881
				24,339,275
IT Services 3.0%
Automatic Data Processing, Inc.		55,919		3,039,198
Cognizant Technology Solutions Corp. Class A (a)		34,197		2,834,931
Computer Sciences Corp.		17,552		894,801
Fidelity National Information Services, Inc.		29,970		992,007
Fiserv, Inc. (a)		17,085		1,047,481
X  International Business Machines Corp.		138,760		23,669,681
MasterCard, Inc. Class A		11,007		3,036,721
Paychex, Inc.		36,576		1,196,401
SAIC, Inc. (a)		33,382		580,847
Teradata Corp. (a)		19,017		1,063,431
Total System Services, Inc.		18,868		355,662

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
IT Services (continued)
Visa, Inc. Class A		55,517	$	4,336,988
Western Union Co. (The)		75,117		1,596,236
				44,644,385
Leisure Equipment & Products 0.1%
Hasbro, Inc.		15,615		731,406
Mattel, Inc.		40,951		1,094,211
				1,825,617
Life Sciences Tools & Services 0.5%
Agilent Technologies, Inc. (a)		39,392		1,966,055
Life Technologies Corp. (a)		20,532		1,133,367
PerkinElmer, Inc.		13,427		379,581
Thermo Fisher Scientific, Inc. (a)		44,491		2,669,015
Waters Corp. (a)		10,463		1,025,374
				7,173,392
Machinery 2.4%
Caterpillar, Inc.		72,761		8,397,347
Cummins, Inc.		22,608		2,717,029
Danaher Corp.		61,564		3,400,795
Deere & Co.		48,211		4,700,573
Dover Corp.		21,228		1,444,353
Eaton Corp.		38,135		2,041,367
Flowserve Corp.		6,357		804,923
Illinois Tool Works, Inc.		56,472		3,298,530
Ingersoll-Rand PLC		37,543		1,895,922
Joy Global, Inc.		11,751		1,186,263
PACCAR, Inc.		41,440		2,200,878
Pall Corp.		13,275		775,791
Parker Hannifin Corp.		18,325		1,728,414
Snap-On, Inc.		6,605		407,991
				35,000,176
Media 3.2%
Cablevision Systems Corp. Class A		26,547		935,251
CBS Corp. Class B		77,435		1,952,911
Comcast Corp. Class A		317,485		8,330,806
DIRECTV Class A (a)		90,185		4,382,089
Discovery Communications, Inc. Class A (a)		32,373		1,432,829
Gannett Co., Inc.		27,124		408,487
Interpublic Group of Cos., Inc. (The)		55,574		652,994
McGraw-Hill Cos., Inc. (The)		35,156		1,422,763
News Corp. Class A		259,264		4,620,084
Omnicom Group, Inc.		32,679		1,607,480
Scripps Networks Interactive Class A		10,206		524,793
Time Warner Cable, Inc.		39,167		3,060,118
Time Warner, Inc.		124,473		4,712,548
Viacom, Inc. Class B		68,000		3,478,880
Walt Disney Co. (The)		215,660		9,294,946
Washington Post Co. Class B		605		263,720
				47,080,699
Metals & Mining 1.1%
AK Steel Holding Corp.		12,506		203,223
Alcoa, Inc.		121,045		2,057,765
Allegheny Technologies, Inc.		11,210		807,120
Cliffs Natural Resources, Inc.		15,395		1,442,819
Freeport-McMoRan Copper & Gold, Inc.		107,809		5,932,729
Newmont Mining Corp.		55,982		3,281,105
Nucor Corp.		35,883		1,685,066
Titanium Metals Corp. (a)		10,244		205,187
United States Steel Corp.		16,326		778,914
				16,393,928
Multi-Utilities 1.2%
Ameren Corp.		27,191		796,968
CenterPoint Energy, Inc.		47,932		891,535
CMS Energy Corp.		28,715		568,557
Consolidated Edison, Inc.		33,003		1,720,116
Dominion Resources, Inc.		66,077		3,067,294
DTE Energy Co.		19,189		969,620
Integrys Energy Group, Inc.		8,773		459,354
NiSource, Inc.		31,602		614,659
PG&E Corp.		44,408		2,046,321
Public Service Enterprise Group, Inc.		57,532		1,850,804
SCANA Corp.		12,809		531,830
Sempra Energy		27,270		1,502,577
TECO Energy, Inc.		24,398		470,150
Wisconsin Energy Corp.		26,584		829,687
Xcel Energy, Inc.		55,057		1,339,537
				17,659,009
Multiline Retail 0.7%
Big Lots, Inc. (a)		8,596		353,382
Family Dollar Stores, Inc.		14,314		775,962
J.C. Penney Co., Inc.		26,877		1,033,421
Kohl’s Corp.		33,317		1,756,139
Macy’s, Inc.		48,058		1,149,067
Nordstrom, Inc.		19,197		912,817
Sears Holdings Corp. (a)		5,040		433,289
Target Corp.		80,655		3,960,160
				10,374,237
Office Electronics 0.1%
Xerox Corp.		157,167		1,585,815
Oil, Gas & Consumable Fuels 10.3%
Anadarko Petroleum Corp.		56,263		4,441,401
Apache Corp.		43,531		5,805,729
Cabot Oil & Gas Corp.		11,835		666,074

14    MainStay S&P 500 Index Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Shares		Value
Common Stocks (continued)
Oil, Gas & Consumable Fuels (continued)
Chesapeake Energy Corp.		74,377	$	2,504,274
X  Chevron Corp.		228,661		25,024,660
ConocoPhillips		163,069		12,871,036
CONSOL Energy, Inc.		25,671		1,388,544
Denbury Resources, Inc. (a)		45,392		1,024,497
Devon Energy Corp.		48,636		4,425,876
El Paso Corp.		87,128		1,691,154
EOG Resources, Inc.		30,493		3,442,965
EQT Corp.		16,952		891,845
X  ExxonMobil Corp.		564,214		49,650,832
Hess Corp.		34,168		2,937,081
Marathon Oil Corp.		80,690		4,360,488
Massey Energy Co.		11,602		791,720
Murphy Oil Corp.		21,802		1,689,219
Newfield Exploration Co. (a)		15,249		1,079,629
Noble Energy, Inc.		19,870		1,912,885
Occidental Petroleum Corp.		92,344		10,553,996
Peabody Energy Corp.		30,602		2,044,826
Pioneer Natural Resources Co.		13,187		1,348,107
QEP Resources, Inc.		19,903		850,455
Range Resources Corp.		18,189		1,026,769
Southwestern Energy Co. (a)		39,344		1,725,628
Spectra Energy Corp.		73,675		2,139,522
Sunoco, Inc.		13,712		584,954
Tesoro Corp. (a)		16,223		439,968
Valero Energy Corp.		64,375		1,821,813
Williams Cos., Inc.		66,473		2,204,909
				151,340,856
Paper & Forest Products 0.2%
International Paper Co.		49,673		1,533,902
MeadWestvaco Corp.		19,431		654,631
				2,188,533
Personal Products 0.2%
Avon Products, Inc.		48,762		1,432,628
Estee Lauder Cos., Inc. (The) Class A		12,983		1,259,351
				2,691,979
Pharmaceuticals 5.3%
Abbott Laboratories		176,277		9,173,455
Allergan, Inc.		34,972		2,782,372
Bristol-Myers Squibb Co.		195,031		5,480,371
Eli Lilly & Co.		115,363		4,269,585
Forest Laboratories, Inc. (a)		32,458		1,076,307
Hospira, Inc. (a)		19,025		1,079,288
X  Johnson & Johnson		311,548		20,474,935
Merck & Co., Inc.		351,175		12,624,741
Mylan, Inc. (a)		49,438		1,231,995
Pfizer, Inc.		909,733		19,068,004
Watson Pharmaceuticals, Inc. (a)		14,269		884,963
				78,146,016
Professional Services 0.1%
Dun & Bradstreet Corp.		5,698		468,262
Equifax, Inc.		14,223		533,789
Robert Half International, Inc.		16,788		509,180
				1,511,231
Real Estate Investment Trusts 1.5%
Apartment Investment & Management Co. Class A		13,297		358,487
AvalonBay Communities, Inc.		9,683		1,225,965
Boston Properties, Inc.		16,243		1,697,881
Equity Residential		33,533		2,002,591
HCP, Inc.		45,634		1,808,019
Health Care REIT, Inc.		20,058		1,078,519
Host Hotels & Resorts, Inc.		77,499		1,378,707
Kimco Realty Corp.		46,136		901,497
Plum Creek Timber Co., Inc.		18,373		791,693
ProLogis		63,242		1,030,212
Public Storage		15,859		1,860,419
Simon Property Group, Inc.		33,873		3,879,813
Ventas, Inc.		18,583		1,039,347
Vornado Realty Trust		18,436		1,782,393
Weyerhaeuser Co.		60,889		1,401,056
				22,236,599
Real Estate Management & Development 0.1%
CB Richard Ellis Group, Inc. Class A (a)		32,920		879,293
Road & Rail 0.8%
CSX Corp.		42,610		3,352,981
Norfolk Southern Corp.		40,561		3,029,095
Ryder System, Inc.		5,964		319,074
Union Pacific Corp.		56,148		5,809,634
				12,510,784
Semiconductors & Semiconductor Equipment 2.5%
Advanced Micro Devices, Inc. (a)		64,379		585,849
Altera Corp.		36,449		1,775,066
Analog Devices, Inc.		33,887		1,365,985
Applied Materials, Inc.		151,994		2,384,786
Broadcom Corp. Class A (a)		54,173		1,905,806
First Solar, Inc. (a)		6,128		855,285
Intel Corp.		625,101		14,496,092
KLA-Tencor Corp.		19,082		837,700
Linear Technology Corp.		25,502		887,470
LSI Corp. (a)		69,875		512,184
MEMC Electronic Materials, Inc. (a)		25,842		305,711
Microchip Technology, Inc.		21,124		866,929
Micron Technology, Inc. (a)		97,200		1,097,388

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Portfolio of Investments^†††April 30, 2011 (unaudited) (continued)

	Shares		Value
Common Stocks (continued)
Semiconductors & Semiconductor Equipment (continued)
National Semiconductor Corp.		27,235	$	656,908
Novellus Systems, Inc. (a)		10,457		335,670
NVIDIA Corp. (a)		65,230		1,304,600
Teradyne, Inc. (a)		20,594		331,563
Texas Instruments, Inc.		133,755		4,752,315
Xilinx, Inc.		29,414		1,025,372
				36,282,679
Software 3.5%
Adobe Systems, Inc. (a)		57,954		1,944,357
Autodesk, Inc. (a)		25,836		1,162,103
BMC Software, Inc. (a)		20,306		1,019,970
CA, Inc.		44,023		1,082,526
Citrix Systems, Inc. (a)		21,247		1,791,972
Compuware Corp. (a)		25,411		287,907
Electronic Arts, Inc. (a)		37,535		757,456
Intuit, Inc. (a)		31,015		1,723,193
X  Microsoft Corp.		842,212		21,914,356
Oracle Corp.		443,130		15,974,836
Red Hat, Inc. (a)		21,459		1,018,659
Salesforce.com, Inc. (a)		13,285		1,841,301
Symantec Corp. (a)		86,930		1,708,175
				52,226,811
Specialty Retail 1.8%
Abercrombie & Fitch Co. Class A		10,045		711,186
AutoNation, Inc. (a)		7,146		242,321
AutoZone, Inc. (a)		3,095		873,966
Bed Bath & Beyond, Inc. (a)		29,011		1,628,097
Best Buy Co., Inc.		37,626		1,174,684
Carmax, Inc. (a)		25,425		882,248
GameStop Corp. Class A (a)		16,038		411,856
Gap, Inc. (The)		47,102		1,094,650
Home Depot, Inc. (The)		186,664		6,932,701
Limited Brands, Inc.		30,097		1,238,793
Lowe’s Cos., Inc.		157,186		4,126,132
O’Reilly Automotive, Inc. (a)		15,770		931,376
RadioShack Corp.		12,147		192,044
Ross Stores, Inc.		13,707		1,010,069
Staples, Inc.		83,063		1,755,952
Tiffany & Co.		14,359		997,089
TJX Cos., Inc.		45,583		2,444,160
Urban Outfitters, Inc. (a)		14,649		460,858
				27,108,182
Textiles, Apparel & Luxury Goods 0.5%
Coach, Inc.		33,822		2,022,894
NIKE, Inc. Class B		43,951		3,618,046
Polo Ralph Lauren Corp.		7,413		969,398
VF Corp.		9,823		987,801
				7,598,139
Thrifts & Mortgage Finance 0.1%
Hudson City Bancorp, Inc.		59,874		570,599
People’s United Financial, Inc.		42,214		577,910
				1,148,509
Tobacco 1.6%
Altria Group, Inc.		236,912		6,358,718
Lorillard, Inc.		16,585		1,766,302
Philip Morris International, Inc.		204,695		14,214,021
Reynolds American, Inc.		38,454		1,427,028
				23,766,069
Trading Companies & Distributors 0.1%
Fastenal Co.		16,759		1,124,361
W.W. Grainger, Inc.		6,783		1,028,303
				2,152,664
Wireless Telecommunication Services 0.3%
American Tower Corp. Class A (a)		45,621		2,386,434
MetroPCS Communications, Inc. (a)		29,769		501,012
Sprint Nextel Corp. (a)		339,309		1,757,621
				4,645,067
Total Common Stocks (Cost $918,881,851)				1,415,170,975	(b)
	Principal
	Amount
Short-Term Investments 4.1%
Repurchase Agreement 0.0%‡
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $60,928 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $65,000 and a Market Value of $65,000)	$	60,928		60,928
Total Repurchase Agreement (Cost $60,928)				60,928

16    MainStay S&P 500 Index Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount			Value
Short-Term Investments (continued)
U.S. Government 4.1%
United States Treasury Bills
0.044%, due 7/7/11 (c)	$	54,800,000		$	54,797,260
0.062%, due 7/28/11 (c)(d)		5,500,000			5,499,450
Total U.S. Government (Cost $60,294,597)					60,296,710
Total Short-Term Investments (Cost $60,355,525)					60,357,638
Total Investments (Cost $979,237,376) (f)		100.0	%		1,475,528,613
Other Assets, Less Liabilities		(0.0	)‡		(221,551	)
Net Assets		100.0	%	$	1,475,307,062

			Unrealized
	Contracts		Appreciation
	Long		(Depreciation) (e)
Futures Contracts 0.1%
Standard & Poor’s 500 Index Mini June 2011		879	$	2,121,541
Total Futures Contracts (Settlement Value $59,758,815) (b)			$	2,121,541

†††	On a daily basis New York Life Investments confirms that the value of the Fund’s liquid assets (liquid portfolio securities and cash) is sufficient to cover its potential senior securities (e.g., futures, swaps, options).
‡	Less than one-tenth of a percent.
(a)	Non-income producing security.
(b)	The combined market value of common stocks and settlement value of Standard & Poor’s 500 Index futures contracts represents 100.0% of net assets.
(c)	Interest rate presented is yield to maturity.
(d)	Represents a security, or a portion thereof, which is maintained at the broker as collateral for futures contracts.
(e)	Represents the difference between the value of the contracts at the time they were opened and the value at April 30, 2011.
(f)	At April 30, 2011, cost is $1,027,646,314 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	565,985,722
Gross unrealized depreciation		(118,103,423	)
Net unrealized appreciation	$	447,882,299

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities(a)
Common Stocks	$	1,415,170,975	$	—	$	—	$	1,415,170,975
Short-Term Investments
Repurchase Agreement		—		60,928		—		60,928
U.S. Government		—		60,296,710		—		60,296,710
Total Short-Term Investments		—		60,357,638		—		60,357,638
	��
Total Investments in Securities		1,415,170,975		60,357,638		—		1,475,528,613
Other Financial Instruments
Futures Contracts Long(b)		2,121,541		—		—		2,121,541
Total Investments in Securities and Other Financial Instruments	$	1,417,292,516	$	60,357,638	$	—	$	1,477,650,154

(a)	For a complete listing of investments and their industries, see the Portfolio of Investments.
(b)	The value listed for these securities reflects unrealized appreciation as shown on the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $979,237,376)	$	1,475,528,613
Receivables:
Dividends and interest		1,525,075
Fund shares sold		955,496
Variation margin on futures contracts		214,493
Other assets		44,927
Total assets		1,478,268,604
Liabilities
Payables:
Fund shares redeemed		1,181,112
Investment securities purchased		974,337
Transfer agent (See Note 3)		381,134
Manager (See Note 3)		182,584
Professional fees		94,356
Shareholder communication		53,252
NYLIFE Distributors (See Note 3)		48,113
Custodian		7,511
Trustees		4,387
Accrued expenses		34,756
Total liabilities		2,961,542
Net assets	$	1,475,307,062
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	46,805
Additional paid-in capital		1,135,884,549
		1,135,931,354
Undistributed net investment income		6,679,282
Accumulated net realized gain (loss) on investments and futures transactions		(165,716,352	)
Net unrealized appreciation (depreciation) on investments and futures contracts		498,412,778
Net assets	$	1,475,307,062
Investor Class
Net assets applicable to outstanding shares	$	21,891,831
Shares of beneficial interest outstanding		699,398
Net asset value per share outstanding	$	31.30
Maximum sales charge (3.00% of offering price)		0.97
Maximum offering price per share outstanding	$	32.27
Class A
Net assets applicable to outstanding shares	$	217,295,763
Shares of beneficial interest outstanding		6,942,752
Net asset value per share outstanding	$	31.30
Maximum sales charge (3.00% of offering price)		0.97
Maximum offering price per share outstanding	$	32.27
Class I
Net assets applicable to outstanding shares	$	1,236,119,468
Shares of beneficial interest outstanding		39,162,710
Net asset value and offering price per share outstanding	$	31.56

18    MainStay S&P 500 Index Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Dividends (a)	$	13,826,192
Interest		14,281
Total income		13,840,473
Expenses
Manager (See Note 3)		1,716,593
Transfer agent (See Note 3)		1,183,810
Distribution/Service—Investor Class (See Note 3)		25,606
Distribution/Service—Class A (See Note 3)		257,172
Professional fees		118,851
Shareholder communication		50,935
Registration		40,671
Custodian		21,230
Trustees		20,782
Miscellaneous		42,493
Total expenses before waiver/reimbursement		3,478,143
Expense waiver/reimbursement from Manager (See Note 3)		(708,097	)
Net expenses		2,770,046
Net investment income (loss)		11,070,427
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Security transactions		(6,344,036	)
Futures transactions		7,159,093
Net realized gain (loss) on investments and futures transactions		815,057
Net change in unrealized appreciation (depreciation) on:
Investments		198,326,573
Futures contracts		1,899,782
Net change in unrealized appreciation (depreciation) on investments and futures contracts		200,226,355
Net realized and unrealized gain (loss) on investments and futures transactions		201,041,412
Net increase (decrease) in net assets resulting from operations	$	212,111,839

(a)  Dividends recorded net of foreign withholding taxes in the amount of $260.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    19

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	11,070,427		$	21,019,417
Net realized gain (loss) on investments and futures transactions		815,057			(34,366,895	)
Net change in unrealized appreciation (depreciation) on investments and futures contracts		200,226,355			204,566,945
Net increase (decrease) in net assets resulting from operations		212,111,839			191,219,467
Dividends to shareholders:
From net investment income:
Investor Class		(248,197	)		(254,639	)
Class A		(2,662,206	)		(2,895,095	)
Class I		(18,165,581	)		(17,697,570	)
Total dividends to shareholders		(21,075,984	)		(20,847,304	)
Capital share transactions:
Net proceeds from sale of shares		142,962,631			292,806,483
Net asset value of shares issued to shareholders in reinvestment of dividends		21,015,068			20,783,761
Cost of shares redeemed		(212,524,624	)		(410,338,260	)
Increase (decrease) in net assets derived from capital share transactions		(48,546,925	)		(96,748,016	)
Net increase (decrease) in net assets		142,488,930			73,624,147
Net Assets
Beginning of period		1,332,818,132			1,259,193,985
End of period	$	1,475,307,062		$	1,332,818,132
Undistributed net investment income at end of period	$	6,679,282		$	16,684,839

20    MainStay S&P 500 Index Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Investor Class
										February
	Six months									28, 2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	27.33		$	23.93		$	22.47		$	31.35
Net investment income (loss)		0.18			0.33			0.38			0.26
Net realized and unrealized gain (loss) on investments		4.14			3.41			1.59			(9.14	)
Total from investment operations		4.32			3.74			1.97			(8.88	)
Less dividends:
From net investment income		(0.35	)		(0.34	)		(0.51	)		—
Net asset value at end of period	$	31.30		$	27.33		$	23.93		$	22.47
Total investment return (a)		15.95	%(b)		15.75	%		9.21	%		(28.33	%)(b)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.25	%††		1.30	%		1.75	%		1.63	% ††
Net expenses		0.70	%††		0.70	%		0.63	%		0.60	% ††
Expenses (before waiver/reimbursement)		0.91	%††		1.01	%		1.15	%		1.06	% ††
Portfolio turnover rate		2	%		11	%		8	%		5	%
Net assets at end of period (in 000’s)	$	21,892		$	19,295		$	17,822		$	15,372

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	27.34		$	23.92		$	22.47		$	35.79		$	31.85		$	27.86
Net investment income (loss)		0.20			0.37			0.38			0.51			0.49			0.40
Net realized and unrealized gain (loss) on investments		4.14			3.40			1.58			(13.35	)		3.87			3.91
Total from investment operations		4.34			3.77			1.96			(12.84	)		4.36			4.31
Less dividends:
From net investment income		(0.38	)		(0.35	)		(0.51	)		(0.48	)		(0.42	)		(0.32	)
Net asset value at end of period	$	31.30		$	27.34		$	23.92		$	22.47		$	35.79		$	31.85
Total investment return (a)		16.02	%(b)		15.88	%		9.18	%		(36.32	%)		13.83	%		15.61	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.35	%††		1.40	%		1.79	%		1.65	%		1.44	%		1.31	%
Net expenses		0.60	%††		0.60	%		0.60	%		0.60	%		0.60	%		0.68	%
Expenses (before waiver/reimbursement)		0.70	%††		0.74	%		0.86	%		0.79	%		0.78	%		0.74	%
Portfolio turnover rate		2	%		11	%		8	%		5	%		5	%		5	%
Net assets at end of period (in 000’s)	$	217,296		$	193,335		$	196,774		$	182,351		$	334,325		$	319,851

*	Unaudited.
††	Annualized.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(b)	Total investment return is not annualized.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    21

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	27.60		$	24.15		$	22.69		$	36.14		$	32.16		$	28.15
Net investment income (loss)		0.25			0.44			0.44			0.60			0.58			0.53
Net realized and unrealized gain (loss) on investments		4.16			3.42			1.60			(13.46	)		3.93			3.93
Total from investment operations		4.41			3.86			2.04			(12.86	)		4.51			4.46
Less dividends:
From net investment income		(0.45	)		(0.41	)		(0.58	)		(0.59	)		(0.53	)		(0.45	)
Net asset value at end of period	$	31.56		$	27.60		$	24.15		$	22.69		$	36.14		$	32.16
Total investment return (a)		16.14	%(b)		16.13	%		9.55	%		(36.13	%)		14.17	%		16.06	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.61	%††		1.65	%		2.07	%		1.95	%		1.73	%		1.69	%
Net expenses		0.35	%††		0.35	%		0.32	%		0.30	%		0.30	%		0.30	%
Expenses (before reimbursement/waiver)		0.45	%††		0.49	%		0.61	%		0.49	%		0.42	%		0.31	%
Portfolio turnover rate		2	%		11	%		8	%		5	%		5	%		5	%
Net assets at end of period (in 000’s)	$	1,236,119		$	1,120,188		$	1,044,598		$	919,826		$	1,479,162		$	1,299,916

*	Unaudited.
††	Annualized.
(a)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(b)	Total investment return is not annualized.

22    MainStay S&P 500 Index Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay S&P 500 Index Fund (the “Fund”), a diversified fund. The Fund is the successor of the MainStay S&P 500 Index Fund, a series of Eclipse Funds Inc. (the “Predecessor Fund”). The reorganization of the Predecessor Fund with and into the Fund occurred on February 26, 2010. All information and references to periods prior to February 26, 2010, relate to the Predecessor Fund.

The Fund currently offers three classes of shares. Class I shares commenced operations on January 2, 1991. Class A shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The three classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Investor Class shares and Class A shares are subject to a distribution and/or service fee. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek to provide investment results that correspond to the total return performance (reflecting reinvestment of dividends) of common stocks in the aggregate, as represented by the S&P 500^® Index.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Equity securities and Exchange Traded Funds are valued at the latest quoted sales prices as of the close of regular trading on the Exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Prices normally are taken from the principal market in which each security trades. Futures contracts are valued at the last posted

mainstayinvestments.com    23

settlement price on the market where such futures are primarily traded. Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor (as defined in Note 3(A)) reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required.

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Futures Contracts. A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., foreign currency,

24    MainStay S&P 500 Index Fund

interest rate, security, or securities index). The Fund is subject to equity price risk in the normal course of investment in these transactions. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking to market” such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. The Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin.” When the futures contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.

The use of futures contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract or notional amounts and variation margin reflect the extent of the Fund’s involvement in open futures positions. Risks arise from the possible imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets, and the possible inability of counterparties to meet the terms of their contracts. However, the Fund’s activities in futures contracts have minimal counterparty risk as they are conducted through regulated exchanges that guarantee the futures against default by the counterparty. In the event of a bankruptcy or insolvency of a futures commission merchant that holds margin on behalf of the Fund, the Fund may not be entitled to the return of all of the margin owed to the Fund, potentially resulting in a loss. The Fund invests in futures contracts to provide an efficient means of maintaining liquidity while being fully invested in the market. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAV and may result in a loss to the Fund.

(I) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(J) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

(K) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash flows. These derivatives are not accounted for as hedging instruments.

Fair value of derivatives as of April 30, 2011:

Asset Derivatives

		Foreign
	Statement of	Exchange		Equity		Interest
	Assets and Liabilities	Contracts		Contracts		Rate
	Location	Risk		Risk		Risk		Total
Futures Contracts	Net Assets—Unrealized appreciation (depreciation) on investments and futures contracts (a)	$	—	$	2,121,541	$	—	$	2,121,541
Total Fair Value		$	—	$	2,121,541	$	—	$	2,121,541

(a)  Includes cumulative appreciation of futures contracts as reported in the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

mainstayinvestments.com    25

The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2011 is as follows.

Realized Gain (Loss)

		Foreign
	Statements of	Exchange		Equity			Interest
	Operations	Contracts		Contracts			Rate
	Location	Risk		Risk			Risk		Total
Warrants	Net realized gain (loss) on security tranactions	$	—	$	(12,524	)	$	—	$	(12,524	)
Futures Contracts	Net realized gain (loss) on futures transactions		—		7,159,093			—		7,159,093
Total Realized Gain (Loss)		$	—	$	7,146,569		$	—	$	7,146,569

Change in Unrealized Appreciation (Depreciation)

		Foreign
	Statements of	Exchange		Equity		Interest
	Operations	Contracts		Contracts		Rate
	Location	Risk		Risk		Risk		Total
Futures Contracts	Net change in unrealized appreciation (depreciation) on futures contracts	$	—	$	1,899,782	$	—	$	1,899,782
Total Change in Unrealized Appreciation (Depreciation)		$	—	$	1,899,782	$	—	$	1,899,782

Number of Contracts, Notional Amounts of Shares/Units

	Foreign				Interest
	Exchange		Equity		Rate
	Contracts		Contracts		Contracts
	Risk		Risk		Risk		Total
Warrants(1)(3)		—		0-132,775		—		0-132,775
Futures Contracts Long (2)(3)		—		782		—		782

(1)	Amount disclosed represents the minimum and maximum held during the six-month period ended April 30, 2011.
(2)	Amount disclosed represents the weighted average held during the six-month period ended April 30, 2011.
(3)	Amount(s) represent(s) number of contracts or number of shares/units.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. Madison Square Investors LLC (“Madison Square Investors” or “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.25% up to $1 billion, 0.225% from $1 billion to $2 billion, 0.215% from $2 billion to $3 billion, and 0.20% in excess of $3 billion. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.24% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses for the Fund’s Class A shares do not exceed 0.60% of its average daily net assets. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points, to the other share classes of the Fund. This expense limitation agreement expires on February 28, 2012, and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or

26    MainStay S&P 500 Index Fund

sale of portfolio investments, and acquired (underlying) fund fees and expenses.

Additionally, the Manager has agreed to voluntarily waive fees and/or reimburse expenses so that the Total Annual Fund Operating Expenses of Investor Class shares do not exceed 0.70% of its average daily net assets. This voluntary waiver and/or reimbursement may be discontinued at any time.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $1,716,593 and waived/reimbursed its fees in the amount of $708,097.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the ”Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from the Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $3,164 and $2,288, respectively, for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	38,918
Class A		168,780
Class I		976,112

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts.

Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Class I $ 124,728,062 10.1 %

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $19,226. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

At October 31, 2010, for federal income tax purposes, capital loss carryforwards of $117,900,712 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss		Capital Loss
Available Through		Amounts (000’s)
	2013	$	5,221
	2014		51,930
	2016		39,050
	2018		21,700
	Total	$	117,901

The tax character of distributions paid during the year ended October 31, 2010, shown in the Statement of Changes in Net Assets, was as follows:

	2010
Distributions paid from:
Ordinary Income	$	20,847,304

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

mainstayinvestments.com    27

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of securities, other than short-term securities, were $27,494 and $74,718, respectively.

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		62,550		$	1,849,063
Shares issued to shareholders in reinvestment of dividends		8,729			247,544
Shares redeemed		(56,268	)		(1,665,351	)
Net increase (decrease) in shares outstanding before conversion		15,011			431,256
Shares converted into Investor Class (See Note 1)		1,436			43,252
Shares converted from Investor Class (See Note 1)		(23,157	)		(671,380	)
Net increase (decrease)		(6,710	)	$	(196,872	)
Year ended October 31, 2010:
Shares sold		129,280		$	3,343,567
Shares issued to shareholders in reinvestment of dividends		9,977			253,817
Shares redeemed		(155,312	)		(4,001,226	)
Net increase (decrease) in shares outstanding before conversion		(16,055	)		(403,842	)
Shares converted into Investor Class (See Note 1)		11,248			300,230
Shares converted from Investor Class (See Note 1)		(33,895	)		(882,705	)
Net increase (decrease)		(38,702	)	$	(986,317	)
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		569,564		$	16,803,364
Shares issued to shareholders in reinvestment of dividends		91,844			2,603,770
Shares redeemed		(812,461	)		(23,983,965	)
Net increase (decrease) in shares outstanding before conversion		(151,053	)		(4,576,831	)
Shares converted into Class A (See Note 1)		23,165			671,380
Shares converted from Class A (See Note 1)		(1,436	)		(43,252	)
Net increase (decrease)		(129,324	)	$	(3,948,703	)
Year ended October 31, 2010:
Shares sold		1,549,620		$	39,887,328
Shares issued to shareholders in reinvestment of dividends		111,379			2,832,374
Shares redeemed		(2,835,174	)		(73,082,004	)
Net increase (decrease) in shares outstanding before conversion		(1,174,175	)		(30,362,302	)
Shares converted into Class A (See Note 1)		33,901			882,705
Shares converted from Class A (See Note 1)		(11,246	)		(300,230	)
Shares converted from Class A (a)		(1,641	)		(41,706	)
Net increase (decrease)		(1,153,161	)	$	(29,821,533	)
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		4,203,672		$	124,310,204
Shares issued to shareholders in reinvestment of dividends		635,985			18,163,754
Shares redeemed		(6,265,945	)		(186,875,308	)
Net increase (decrease)		(1,426,288	)	$	(44,401,350	)
Year ended October 31, 2010:
Shares sold		9,521,947		$	249,575,588
Shares issued to shareholders in reinvestment of dividends		690,772			17,697,570
Shares redeemed		(12,887,816	)		(333,255,030	)
Net increase (decrease) in shares outstanding before conversion		(2,675,097	)		(65,981,872	)
Shares converted into Class I (a)		1,628			41,706
Net increase (decrease)		(2,673,469	)	$	(65,940,166	)

(a)  In addition to any automatic conversion features described above in Note 1 with respect to Investor Class and Class A shares, an investor generally may also elect to convert their shares on a voluntary basis into another share class of the same fund for which an investor is eligible. However, the following limitations apply:

•  Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and

•  All Class C shares are ineligible for a voluntary conversion.

These limitations do not impact any automatic conversion features described in Note 1 with respect to Investor Class and Class A shares.

An investor or an investor’s financial intermediary may contact the Fund to request a voluntary conversion between shares classes of the same Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will be made on the basis of the relevant NAVs of the two classes without the

28    MainStay S&P 500 Index Fund

imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an investor may automatically be converted back to their original share class, or into another share class, if appropriate.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

mainstayinvestments.com    29

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay S&P 500 Index Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and Madison Square Investors LLC (“MSI”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and MSI as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and MSI in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and MSI at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and MSI on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates, including MSI as subadvisor to the Fund, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and MSI; (ii) the investment performance of the Fund, New York Life Investments and MSI; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates, including MSI as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and MSI

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing MSI’s compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same

30    MainStay S&P 500 Index Fund

class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

The Board also examined the nature, extent and quality of the services that MSI provides to the Fund. The Board evaluated MSI’s experience in serving as subadvisor to the Fund and managing other portfolios. It examined MSI’s track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at MSI, and MSI’s overall legal and compliance environment. The Board also reviewed MSI’s willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and MSI’s experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and MSI to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and MSI

The Board considered the costs of the services provided by New York Life Investments and MSI under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Fund. Because MSI is an affiliate of New York Life Investments whose subadvisory fees are paid directly by New York Life Investments, the Board considered cost and profitability information for New York Life Investments and MSI in the aggregate.

In evaluating any costs and profits of New York Life Investments and its affiliates, including MSI, due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and MSI must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering

mainstayinvestments.com    31

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)

the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates (including MSI) due to their relationships with the Fund supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to MSI are paid by New York Life Investments, not the Fund. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and MSI on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and MSI about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

32    MainStay S&P 500 Index Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; or (ii) on the Securities and Exchange Commissions (“SEC”) website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX is available free of charge upon request (i) by calling 800-MAINSTAY (624-6782); (ii) by visiting the Fund’s website at mainstayinvestments.com; or (iii) on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com    33

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MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC,
169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company.
NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business.
MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment
advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23006 MS136-11 MSSP10-06/11

A6

MainStay Short Term Bond Fund

Message from the President and Semiannual Report

Unaudited - April 30, 2011

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Message from the President

Many equity investors were pleased with their results for the six months ended April 30, 2011, as several domestic and global stock-market indexes provided double-digit positive returns.

Early in November 2010, the Federal Open Market Committee (FOMC) announced its intention to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC decided to expand its securities holdings “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

Although some denounced the move as potentially inflationary, the timing proved helpful. The stock market reacted positively to the November 2010 midterm elections—and later, to a two-year extension for the Bush-era tax cuts.

After a couple of false starts, the U.S. stock market began a relatively steady rise. In late February, however, stocks dipped as mounting tensions in Libya sent the price of oil over $100 a barrel. Political unrest spread across North Africa and the Middle East, and the price of oil continued to climb. As a group, energy companies tended to benefit from higher oil prices, while airlines and automotive companies were hurt by higher fuel costs.

Meanwhile, a massive earthquake in Japan led to a devastating tsunami and concerns about that nation’s nuclear power supply. Major U.S. and global stock market indexes temporarily lost their footing but recovered rapidly, ending the reporting period on a six-month high.

According to Russell data, growth stocks outperformed value stocks among mid- and small-capitalization companies during the six-month reporting period. Among large-capitalization companies, value stocks outperformed growth stocks.

For bond investors, the markets proved somewhat more challenging. Despite the FOMC’s determination to keep the federal funds rate in a very low range, U.S. Treasury yields rose early in the reporting period and generally reached their high points for the six-month period by mid-February 2011. Nominal yields generally declined on shorter-term constant-maturity Treasury bills, but rose on U.S. Treasury securities with maturities from 1 to 30 years. Since bond prices tend to fall when interest rates rise (and rise when interest rates decline), some high-grade bond indexes recorded negative total returns for the reporting period.

To compensate for low yields, many investors sought securities with higher risk profiles than comparable U.S. Treasury securities. As a result, corporate bonds, bank loans, high-yield bonds and emerging-market debt generally fared better than government securities. Default rates remained low, and securities with the higher risk profiles generally provided higher returns.

Despite dramatic headlines and wide market fluctuations, the Portfolio Managers of MainStay Funds remained focused on the investment objectives of their respective Funds and sought to optimize returns within the investment strategies outlined in the Prospectus. Most importantly, our Portfolio Managers used a variety of risk management strategies and techniques, seeking to protect investors when possible and to ride out market variations when necessary.

The semiannual report(s) that follow provide additional information about the market forces and specific securities and strategies that affected your MainStay Fund investment(s) during the six months ended April 30, 2011. We hope that you will carefully review this information, keeping in mind the value of a long-term approach to wealth accumulation.

While no one can predict where the markets will move next, we continue to believe that appropriate diversification, gradual portfolio adjustments and regular additions to your investments can add value as you pursue your long-range financial goals.

Sincerely,

Stephen P. Fisher
President

Not part of the Semiannual Report

Table of Contents

Semiannual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	10
Financial Statements	13
Notes to Financial Statements	19
Board Consideration and Approval of Management Agreement and Subadvisory Agreement	24
Proxy Voting Policies and Procedures and Proxy Voting Record	27
Shareholder Reports and Quarterly Portfolio Disclosure	27

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Not part of the Semiannual Report

Investment and Performance Comparison¹(Unaudited)

Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-MAINSTAY (624-6782) or visit mainstayinvestments.com.

Average Annual Total Returns for the Period Ended April 30, 2011

															Gross
															Expense
Class	Sales Charge		Six Months			One Year			Five Years			Ten Years			Ratio2
Investor Class Shares3	Maximum 3% Initial Sales Charge	With sales charges		–3	.14%		–1	.65%		3	.25%		2	.83%		1	.60%
		Excluding sales charges		–0	.14		1	.39		3	.88		3	.14		1	.60
Class A Shares4	Maximum 3% Initial Sales Charge	With sales charges		–2	.94		–1	.34		3	.44		2	.92		1	.15
		Excluding sales charges		0	.06		1	.71		4	.07		3	.24		1	.15
Class I Shares	No Sales Charge			0	.19		1	.96		4	.36		3	.55		0	.90

1.   The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund-share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, change in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflect the deduction of all sales charges that would have applied for the periods of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements.

2.	The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus and may differ from other expense ratios disclosed in this report.
3.	Performance figures for Investor Class shares, first offered on February 28, 2008, includes the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares might have been lower.
4.	Performance figures for Class A shares, first offered on January 2, 2004, include the historical performance of Class I shares through January 1, 2004, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class A shares might have been lower.

The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.

mainstayinvestments.com    5

	Six			One			Five			Ten
Benchmark Performance	Months			Year			Years			Years
Barclays Capital U.S. 1-3 Year Government/Credit Index5		0	.32%		2	.27%		4	.51%		4	.07%
Average Lipper Short U.S. Government Fund6		0	.21		2	.13		3	.68		3	.26

5.

The Barclays Capital U.S. 1–3 Year Government/Credit Index includes investment grade corporate debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury, with maturities of one to three years. An investment cannot be made directly in an index. Total returns assume reinvestment of all dividends and capital gains. The Barclays Capital U.S. 1-3 Year Government/Credit Index is the Fund’s broad-based securities-market index for comparison purposes.

6.

The average Lipper short U.S. government fund is representative of funds that invest primarily in securities issued or guaranteed by the U.S. government, its agencies, or its instrumentalities, with dollar-weighted average maturities of less than three years. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.

6    MainStay Short Term Bond Fund

Cost in Dollars of a $1,000 Investment in MainStay Short Term Bond Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2010, to April 30, 2011, and the impact of those costs on your investment.

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from November 1, 2010, to April 30, 2011.

This example illustrates your Fund’s ongoing costs in two ways:

Actual Expenses

The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended April 30, 2011. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

							Ending Account
			Ending Account				Value (Based
			Value (Based				on Hypothetical
	Beginning		on Actual		Expenses		5% Annualized		Expenses
	Account		Returns and		Paid		Return and		Paid
	Value		Expenses)		During		Actual Expenses)		During
Share Class	11/1/10		4/30/11		Period1		4/30/11		Period1
Investor Class Shares	$	1,000.00	$	998.60	$	6.59	$	1,018.20	$	6.66
Class A Shares	$	1,000.00	$	1,000.60	$	4.61	$	1,020.20	$	4.66
Class I Shares	$	1,000.00	$	1,001.90	$	3.38	$	1,021.40	$	3.41

1.  Expenses are equal to the Fund’s annualized expense ratio of each class (1.33% for Investor Class, 0.93% for Class A and 0.68% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 181 (to reflect the one-half year period). The table above represents the actual expenses incurred during the one-half year period.

mainstayinvestments.com    7

Portfolio Composition as of April 30, 2011 (Unaudited)

U.S. Government & Federal Agencies	55.50
Corporate Bonds	23.80
Yankee Bonds	11.50
Mortgage-Backed Securities	4.60
Short-Term Investment	3.40
Municipal Bonds	1.20
Other Assets, Less Liabilities	0.00

See Portfolio of Investments beginning on page 10 for specific holdings within these categories.

‡  Less than one-tenth of a percent.

Top Ten Issuers Held as of April 30, 2011 (excluding short-term investment)

1.	United States Treasury Notes, 0.625%–2.25%, due 6/15/12–10/31/15
2.	Federal National Mortgage Association, 1.125%–1.70%, due 9/9/13–2/25/14
3.	Federal Home Loan Bank, 2.25%, due 4/13/12
4.	Shell International Finance B.V., 1.875%, due 3/25/13
5.	Morgan Stanley, 4.00%, due 7/24/15
6.	Abbott Laboratories, 2.70%, due 5/27/15
7.	Federal Home Loan Mortgage Corporation, 1.50%, due 2/11/14
8.	MetLife, Inc., 2.375%, due 2/6/14
9.	Rio Tinto Finance USA, Ltd., 8.95%, due 5/1/14
10.	St. Jude Medical, Inc., 2.20%, due 9/15/13

8    MainStay Short Term Bond Fund

Portfolio Management Discussion and Analysis

Questions answered by portfolio managers Dan Roberts, PhD, Louis N. Cohen, Claude Athaide, PhD, CFA, and Gary Goodenough of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay Short Term Bond Fund perform relative to its peers and its benchmark during the six months ended April 30, 2011?

Excluding all sales charges, MainStay Short Term Bond Fund returned –0.14% for Investor Class shares and 0.06% for Class A shares for the six months ended April 30, 2011. Over the same period, Class I shares returned 0.19%. All share classes underperformed the 0.21% return of the average Lipper¹ short U.S. government fund and the 0.32% return of the Barclays Capital U.S. 1–3 Year Government/Credit Index² for the six months ended April 30, 2011. The Barclays Capital U.S. 1–3 Year Government/Credit Index is the Fund’s broad-based securities-market index. See page 5 for Fund returns with sales charges.

What factors affected the Fund’s performance during the reporting period?

Real gross domestic product (GDP) grew at an annual rate of 3.1% in the fourth quarter of 2010 but slowed to an estimated annual growth rate of 1.8% in the first quarter of 2011. Consumer spending accounted for 2.8% of fourth-quarter GDP, but fell to 1.9% in the first quarter. The fiscal stimulus provided by the payroll tax holiday has been offset to some degree by higher gasoline prices. Fixed investments barely grew in the first quarter, while inventories contributed 0.9% in the first quarter of 2011, after subtracting 3.4% the previous quarter. The trade sector made a small negative contribution to GDP growth in the first quarter, after contributing 3.3% to GDP in the fourth quarter. Despite the fiscal stimulus provided by the payroll tax holiday, the combined contribution from the federal, state and local government sectors was negative in both quarters of the reporting period.

To provide further stimulus to economic growth that had been decelerating during the spring and summer of 2010, the Federal Open Market Committee (FOMC) announced in early November 2010 that it would purchase $600 billion in Treasury securities. The decision had been widely anticipated by market participants and contributed to a recovery in the prices of risky assets during the reporting period.

Treasury yields rose as economic growth reaccelerated in the fourth quarter of 2010. The yield on the two-year U.S. Treasury security increased from 0.33% at the beginning of the reporting period to 0.85% in February 2011, before declining to 0.61% as of April 30, 2011.

A sharp decline in equities in the aftermath of the March 2011 Japanese earthquake, tsunami and nuclear accident proved temporary as equity indices recovered and reached new highs by the end of April 2011.

How did the Fund’s yield-curve³ positioning affect the Fund’s performance during the reporting period?

In the fourth quarter of 2010, the Fund was positioned for a flatter yield curve. However, interest rates rose in November and December 2010 and the yield curve steepened, which had a negative impact on the Fund’s performance.

During the reporting period, which market segments were particularly strong and which ones were weak?

Credit spreads⁴ tightened during the reporting period as risk appetite remained firm. This contributed to the continued outperformance of corporate bonds relative to comparable U.S. Treasurys.

How did the Fund’s weightings change during the reporting period?

At the start of the reporting period, approximately 50% of the Fund’s total net assets were invested in U.S. Treasury securities. Corporate bonds accounted for 30% of the Fund’s net assets, and agency securities accounted for 14% of the Fund’s net assets. During the reporting period, we increased the Fund’s exposure to corporate bonds and agency securities and substantially reduced the Fund’s exposure to U.S. Treasury securities.

How was the Fund positioned at the end of the reporting period?

As of April 30, 2011, U.S. Treasury securities accounted for approximately 36% of the Fund’s net assets, corporate bonds accounted for approximately 35% and agency securities represented approximately 19% of the Fund’s net assets.

1.	See footnote on page 6 for more information on Lipper Inc.
2.	See footnote on page 6 for more information on the Barclays Capital U.S. 1–3 Year Government/Credit Index.
3.	The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.
4.	The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

mainstayinvestments.com    9

Portfolio of Investments April 30, 2011 (unaudited)

	Principal
	Amount		Value
Long-Term Bonds 96.6%† Corporate Bonds 23.8%
Agriculture 1.5%
Philip Morris International, Inc. 6.875%, due 3/17/14	$	1,070,000	$	1,233,324
Auto Manufacturers 1.5%
DaimlerChrysler N.A. Holding Corp. 6.50%, due 11/15/13		1,117,000		1,250,496
Banks 8.3%
JPMorgan Chase & Co. 3.70%, due 1/20/15		1,235,000		1,282,335
X  Morgan Stanley 4.00%, due 7/24/15		1,800,000		1,853,843
PNC Funding Corp. 3.625%, due 2/8/15		1,240,000		1,298,749
U.S. Bancorp 3.15%, due 3/4/15		1,250,000		1,295,305
Wells Fargo & Co. 3.75%, due 10/1/14		1,225,000		1,296,916
				7,027,148
Diversified Financial Services 1.5%
General Electric Capital Corp. 3.75%, due 11/14/14		1,220,000		1,284,456
Electric 1.3%
Great Plains Energy, Inc. 2.75%, due 8/15/13		1,085,000		1,106,129
Finance—Investment Banker/Broker 1.4%
Citicorp 7.25%, due 10/15/11		1,155,000		1,186,945
Health Care—Products 1.6%
X  St. Jude Medical, Inc.
2.20%, due 9/15/13		1,310,000		1,337,573
Insurance 3.3%
Hartford Financial Services Group, Inc. 4.75%, due 3/1/14		1,250,000		1,322,583
X  MetLife, Inc.
2.375%, due 2/6/14		1,455,000		1,475,159
				2,797,742
Pharmaceuticals 3.4%
X  Abbott Laboratories
2.70%, due 5/27/15		1,665,000		1,708,948
Novartis Capital Corp. 1.90%, due 4/24/13		1,100,000		1,124,871
				2,833,819
Total Corporate Bonds (Cost $19,520,650)				20,057,632
Mortgage-Backed Securities 4.6%
Commercial Mortgage Loans (Collateralized Mortgage Obligations) 4.6%
Banc of America Commercial Mortgage, Inc. Series 2007-1, Class AAB 5.422%, due 1/15/49		870,000		915,584
Bear Stearns Commercial Mortgage Securities Series 2004-T16, Class A6 4.75%, due 2/13/46		200,000		213,310
GE Capital Commercial Mortgage Corp. Series 2004-C2, Class A4 4.893%, due 3/10/40		500,000		533,426
LB-UBS Commercial Mortgage Trust Series 2004-C1, Class A4 4.568%, due 1/15/31		890,000		942,935
RBSCF Trust Series 2010-MB1, Class A1 2.367%, due 2/15/15 (a)		968,360		979,892
Wachovia Bank Commercial Mortgage Trust Series 2004-C14, Class A4 5.088%, due 8/15/41		310,000		332,875
Total Mortgage-Backed Securities (Cost $3,840,796)				3,918,022
Municipal Bonds 1.2%
Michigan 1.2%
Michigan Finance Authority Series E 4.75%, due 8/22/11		1,000,000		1,008,910
Total Municipal Bond (Cost $1,002,652)				1,008,910
U.S. Government & Federal Agencies 55.5%
X  Federal Home Loan Bank 6.2%
2.25%, due 4/13/12		5,075,000		5,168,045
X  Federal Home Loan Mortgage Corporation 1.9%
1.50%, due 2/11/14		1,580,000		1,584,459

†  Percentages indicated are based on Fund net assets.

X Among the Fund’s 10 largest issuers held, as of April 30, 2011, excluding short-term investment. May be subject to change daily.

10    MainStay Short Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

	Principal
	Amount			Value
U.S. Government & Federal Agencies (continued)
X  Federal National Mortgage Association 10.8%
1.125%, due 9/9/13	$	1,725,000		$	1,726,611
1.20%, due 9/27/13		2,195,000			2,197,926
1.45%, due 1/24/14		1,185,000			1,192,618
1.70%, due 2/25/14		3,975,000			3,991,755
					9,108,910
Federal National Mortgage Association (Mortgage Pass-Through Security) 0.3%
4.50%, due 11/1/18		251,038			267,537
X  United States Treasury Notes 36.3%
0.625%, due 12/31/12		465,000			466,126
1.25%, due 10/31/15		2,420,000			2,366,874
1.375%, due 9/15/12		755,000			765,528
1.50%, due 7/15/12		12,580,000			12,762,309
1.875%, due 6/15/12		8,395,000			8,544,532
1.875%, due 6/30/15		2,875,000			2,907,344
2.25%, due 5/31/14		2,710,000			2,806,967
					30,619,680
Total U.S. Government & Federal Agencies (Cost $46,100,045)					46,748,631
Yankee Bonds 11.5% (b)
Electric 1.4%
Enel Finance International S.A. 3.875%, due 10/7/14 (a)		1,120,000			1,168,920
Holding Company—Diversified 1.5%
Hutchison Whampoa International, Ltd. 4.625%, due 9/11/15 (a)		1,195,000			1,274,399
Mining 3.2%
Anglo American Capital PLC
2.15%, due 9/27/13 (a)		400,000			404,745
9.375%, due 4/8/14 (a)		750,000			906,393
X  Rio Tinto Finance USA, Ltd. 8.95%, due 5/1/14		1,115,000			1,350,000
					2,661,138
Oil & Gas 3.9%
X  Shell International Finance B.V. 1.875%, due 3/25/13		2,000,000			2,045,106
Total Capital S.A. 3.125%, due 10/2/15		1,235,000			1,279,858
					3,324,964
Telecommunications 1.5%
Telefonica Emisiones S.A.U 4.949%, due 1/15/15		1,180,000			1,262,643
Total Yankee Bonds (Cost $9,418,274)					9,692,064
Total Long-Term Bonds (Cost $79,882,417)					81,425,259
Short-Term Investment 3.4%
Repurchase Agreement 3.4%
State Street Bank and Trust Co. 0.01%, dated 4/29/11 due 5/2/11 Proceeds at Maturity $2,847,884 (Collateralized by a United States Treasury Bill with a rate of 0.015% and a maturity date of 5/12/11, with a Principal Amount of $2,905,000 and a Market Value of $2,904,984)		2,847,882			2,847,882
Total Short-Term Investment (Cost $2,847,882)					2,847,882
Total Investments (Cost $82,730,299) (c)		100.0	%		84,273,141
Other Assets, Less Liabilities		0.0	‡		36,455
Net Assets		100.0	%	$	84,309,596

‡	Less than one-tenth of a percent.
(a)	May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.
(b)	Yankee Bond—dollar-denominated bond issued in the United States by a foreign bank or corporation.
(c)	At April 30, 2011, cost is $82,730,299 for federal income tax purposes and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	1,556,001
Gross unrealized depreciation		(13,159	)
Net unrealized appreciation	$	1,542,842

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    11

Portfolio of Investments April 30, 2011 (unaudited) (continued)

The following is a summary of the fair valuations according to the inputs used as of April 30, 2011, for valuing the Fund’s assets.

Asset Valuation Inputs

	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments in Securities (a)
Long-Term Bonds
Corporate Bonds	$	—	$	20,057,632	$	—	$	20,057,632
Mortgage-Backed Securities		—		3,918,022		—		3,918,022
Municipal Bonds		—		1,008,910		—		1,008,910
U.S. Government & Federal Agencies		—		46,748,631		—		46,748,631
Yankee Bonds		—		9,692,064		—		9,692,064
Total Long-Term Bonds		—		81,425,259		—		81,425,259
Short-Term Investment
Repurchase Agreement		—		2,847,882		—		2,847,882
Total Investments in Securities	$	—	$	84,273,141	$	—	$	84,273,141

(a)  For a complete listing of investments and their industries, see the Portfolio of Investments.

For the period ended April 30, 2011, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

At April 30, 2011, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

12    MainStay Short Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of April 30, 2011 (unaudited)

Assets
Investment in securities, at value (identified cost $82,730,299)	$	84,273,141
Receivables:
Interest		512,633
Fund shares sold		25,335
Other assets		26,080
Total assets		84,837,189
Liabilities
Payables:
Fund shares redeemed		407,757
Professional fees		28,335
Transfer agent (See Note 3)		25,780
Manager (See Note 3)		24,100
Shareholder communication		17,587
NYLIFE Distributors (See Note 3)		6,763
Custodian		2,031
Trustees		767
Accrued expenses		1,438
Dividend payable		13,035
Total liabilities		527,593
Net assets	$	84,309,596
Composition of Net Assets
Share of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized	$	8,691
Additional paid-in capital		82,572,363
		82,581,054
Distributions in excess of net investment income		(20,199	)
Accumulated net realized gain (loss) on investments		205,899
Net unrealized appreciation (depreciation) on investments		1,542,842
Net assets	$	84,309,596
Investor Class
Net assets applicable to outstanding shares	$	3,745,170
Shares of beneficial interest outstanding		384,975
Net asset value per share outstanding	$	9.73
Maximum sales charge (3.00% of offering price)		0.30
Maximum offering price per share outstanding	$	10.03
Class A
Net assets applicable to outstanding shares	$	28,895,179
Shares of beneficial interest outstanding		2,978,692
Net asset value per share outstanding	$	9.70
Maximum sales charge (3.00% of offering price)		0.30
Maximum offering price per share outstanding	$	10.00
Class I
Net assets applicable to outstanding shares	$	51,669,247
Shares of beneficial interest outstanding		5,327,297
Net asset value and offering price per share outstanding	$	9.70

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    13

Statement of Operations for the six months ended April 30, 2011 (unaudited)

Investment Income (Loss)
Income
Interest	$	1,096,280
Expenses
Manager (See Note 3)		291,736
Transfer agent (See Note 3)		70,583
Distribution/Service—Investor Class (See Note 3)		4,767
Distribution/Service—Class A (See Note 3)		39,929
Registration		30,496
Professional fees		28,200
Shareholder communication		24,931
Custodian		5,699
Trustees		1,722
Miscellaneous		4,861
Total expenses before waiver/reimbursement		502,924
Expense waiver/reimbursement from Manager (See Note 3)		(120,268	)
Net expenses		382,656
Net investment income (loss)		713,624
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		206,218
Net change in unrealized appreciation (depreciation) on investments		(1,009,285	)
Net realized and unrealized gain (loss) on investments		(803,067	)
Net increase (decrease) in net assets resulting from operations	$	(89,443	)

14    MainStay Short Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the six months ended April 30, 2011 (unaudited) and the year ended October 31, 2010

	2011			2010
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	713,624		$	1,466,191
Net realized gain (loss) on investments		206,218			234,319
Net change in unrealized appreciation (depreciation) on investments		(1,009,285	)		1,087,868
Net increase (decrease) in net assets resulting from operations		(89,443	)		2,788,378
Dividends and distributions to shareholders:
From net investment income:
Investor Class		(19,596	)		(22,387	)
Class A		(224,805	)		(443,006	)
Class I		(504,565	)		(1,007,842	)
		(748,966	)		(1,473,235	)
From net realized gain on investments:
Investor Class		(6,757	)		(38,188	)
Class A		(57,309	)		(628,813	)
Class I		(124,038	)		(946,795	)
		(188,104	)		(1,613,796	)
Total dividends and distributions to shareholders		(937,070	)		(3,087,031	)
Capital share transactions:
Net proceeds from sale of shares		15,888,500			72,128,908
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		803,164			2,578,293
Cost of shares redeemed		(48,595,329	)		(94,487,849	)
Increase (decrease) in net assets derived from capital share transactions		(31,903,665	)		(19,780,648	)
Net increase (decrease) in net assets		(32,930,178	)		(20,079,301	)
Net Assets
Beginning of period		117,239,774			137,319,075
End of period	$	84,309,596		$	117,239,774
Undistributed (distributions in excess of) net investment income at end of period	$	(20,199	)	$	15,143

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    15

Financial Highlights selected per share data and ratios

	Investor Class
										February 28,
	Six months									2008**
	ended									through
	April 30,			Year ended October 31,						October 31,
	2011*			2010			2009			2008
Net asset value at beginning of period	$	9.81		$	9.81		$	9.32		$	9.44
Net investment income (loss)		0.04			0.05			0.10			0.13	(a)
Net realized and unrealized gain (loss) on investments		(0.05	)		0.13			0.49			(0.11	)
Total from investment operations		(0.01	)		0.18			0.59			0.02
Less dividends and distributions:
From net investment income		(0.05	)		(0.06	)		(0.10	)		(0.14	)
From net realized gain on investments		(0.02	)		(0.12	)		—			—
Total dividends and distributions		(0.07	)		(0.18	)		(0.10	)		(0.14	)
Net asset value at end of period	$	9.73		$	9.81		$	9.81		$	9.32
Total investment return (b)		(0.14	%)(c)		1.83	%		6.31	%		0.20	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.94	% ††		0.63	%		1.00	%		2.10	%††
Net expenses		1.33	% ††		1.38	%		1.11	%		1.00	%††
Expenses (before waiver/reimbursement)		1.58	% ††		1.60	%		1.62	%		2.09	%††
Portfolio turnover rate		14	%		68	%(d)		193	%(d)		252	%(d)
Net assets at end of period (in 000’s)	$	3,745		$	4,119		$	3,180		$	2,266

*	Unaudited.
**	Commencement of operations.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	The portfolio turnover rates not including mortgage dollar rolls were 52%, 131% and 237% for the years ended October 31, 2010, 2009 and 2008, respectively.

16    MainStay Short Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Class A
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	9.78		$	9.79		$	9.29		$	9.19		$	9.08		$	9.06
Net investment income (loss)		0.06			0.11			0.10			0.24	(a)		0.35	(a)		0.30
Net realized and unrealized gain (loss) on investments		(0.05	)		0.11			0.51			0.11			0.12			0.02
Total from investment operations		0.01			0.22			0.61			0.35			0.47			0.32
Less dividends and distributions:
From net investment income		(0.07	)		(0.11	)		(0.11	)		(0.25	)		(0.36	)		(0.30	)
From net realized gain on investments		(0.02	)		(0.12	)		—			—			—			—
Total dividends and distributions		(0.09	)		(0.23	)		(0.11	)		(0.25	)		(0.36	)		(0.30	)
Net asset value at end of period	$	9.70		$	9.78		$	9.79		$	9.29		$	9.19		$	9.08
Total investment return (b)		0.06	%(c)		2.19	%		6.65	%		3.87	%		5.29	%		3.55	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.33	%††		1.03	%		1.14	%		2.55	%		3.85	%		3.33	%
Net expenses		0.93	%††		0.93	%		0.91	%		0.90	%		0.90	%		0.90	%
Expenses (before waiver/reimbursement)		1.18	%††		1.15	%		1.16	%		1.32	%		1.36	%		1.61	%
Portfolio turnover rate		14	%		68	%(d)		193	%(d)		252	%(d)		118	%		95	%(d)
Net assets at end of period (in 000’s)	$	28,895		$	36,665		$	54,902		$	20,313		$	13,740		$	4,850

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.
(c)	Total investment return is not annualized.
(d)	The portfolio turnover rates not including mortgage dollar rolls were 52%, 131%, 237% and 93% for the years ended October 31, 2010, 2009, 2008 and 2006, respectively.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. mainstayinvestments.com    17

Financial Highlights selected per share data and ratios

	Class I
	Six months
	ended
	April 30,			Year ended October 31,
	2011*			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	9.78		$	9.78		$	9.29		$	9.19		$	9.08		$	9.07
Net investment income (loss)		0.07			0.13			0.15			0.29	(a)		0.38	(a)		0.33
Net realized and unrealized gain (loss) on investments		(0.05	)		0.12			0.48			0.09			0.12			0.01
Total from investment operations		0.02			0.25			0.63			0.38			0.50			0.34
Less dividends and distributions:
From net investment income		(0.08	)		(0.13	)		(0.14	)		(0.28	)		(0.39	)		(0.33	)
From net realized gain on investments		(0.02	)		(0.12	)		—			—			—			—
Total dividends and distributions		(0.10	)		(0.25	)		(0.14	)		(0.28	)		(0.39	)		(0.33	)
Net asset value at end of period	$	9.70		$	9.78		$	9.78		$	9.29		$	9.19		$	9.08
Total investment return (b)		0.19	%(c)		2.55	%		6.83	%		4.17	%		5.59	%		3.83	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.57	%††		1.32	%		1.43	%		3.15	%		4.15	%		3.63	%
Net expenses		0.68	%††		0.68	%		0.63	%		0.60	%		0.60	%		0.60	%
Expenses (before reimbursement/waiver)		0.93	%††		0.90	%		0.91	%		0.91	%		0.75	%		0.76	%
Portfolio turnover rate		14	%		68	%(d)		193	%(d)		252	%(d)		118	%		95	%(d)
Net assets at end of period (in 000’s)	$	51,669		$	76,456		$	79,237		$	36,701		$	87,535		$	74,221

*	Unaudited.
††	Annualized.
(a)	Per share data based on average shares outstanding during the period.
(b)	Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.
(c)	Total investment return is not annualized.
(d)	The portfolio turnover rates not including mortgage dollar rolls were 52%, 131%, 237% and 93% for the years ended October 31, 2010, 2009, 2008 and 2006, respectively.

18    MainStay Short Term Bond Fund The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

Notes to Financial Statements (unaudited)

Note 1–Organization and Business

MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009, and is governed by a Declaration of Trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twenty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Short Term Bond Fund (the “Fund”), a diversified fund. The Fund is the successor of the Mainstay Short Term Bond Fund, a series of Eclipse Funds Inc. (the “Predecessor Fund”). The reorganization of the Predecessor Fund with and into the Fund occurred on February 26, 2010. All information and references to periods prior to February 26, 2010 relate to the Predecessor Fund.

The Fund currently offers three classes of shares. Class I shares commenced operations on January 2, 1991. Class A shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Investor Class and Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in Investor Class and Class A shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares within one year of the date of purchase. Class I shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The three classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Investor Class shares and Class A shares are subject to a distribution and/or service fee. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek to maximize total return, consistent with liquidity, preservation of capital and investment in short-term debt securities.

Note 2–Significant Accounting Policies

The Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.

(A) Securities Valuation. Investments are valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

“Fair value” is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)

•  Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

The valuation techniques used by the Fund to measure fair value during the six-month period ended April 30, 2011 maximized the use of observable inputs and minimized the use of unobservable inputs. The Fund may have utilized some of the following fair value techniques: multi-dimensional relational pricing models, option adjusted spread pricing and estimating the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation, when there are significant events after the close of local foreign markets.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the six-month period ended April 30, 2011, there have been no changes to the fair value methodologies.

The aggregate value by input level, as of April 30, 2011, for the Fund’s investments is included at the end of the Fund’s Portfolio of Investments.

Debt securities are valued at the evaluated bid prices supplied by a pricing agent or brokers selected by the Fund’s Manager (as defined in Note 3(A)) in consultation with the Fund’s Subadvisor (as defined in Note 3(A)) whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by the Fund’s Manager, in consultation with the Fund’s Subadvisor, to be representative of market values, at the regular close of trading of the

mainstayinvestments.com    19

Notes to Financial Statements (unaudited) (continued)

Exchange on each valuation date. Debt securities, including corporate bonds, U.S. government & federal agency bonds, municipal bonds, foreign bonds, Yankee bonds, convertible bonds, asset-backed securities, and mortgage-backed securities, are generally categorized as Level 2 in the hierarchy.

Investments in other mutual funds are valued at their NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired over 60 days prior to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are all generally categorized as Level 2 in the hierarchy.

Securities for which market quotations are not readily available are valued by methods deemed in good faith by the Fund’s Board to represent fair value. Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security the trading for which has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security the market price of which is not available from an independent pricing source or, if so provided, does not, in the opinion of the Fund’s Manager or Subadvisor reflect the security’s market value; and (vi) a security where the trading on that security’s principal market is temporarily closed at a time when, under normal conditions, it would be open. These securities are generally categorized as Level 3 in the hierarchy. At April 30, 2011, the Fund did not hold securities that were valued in such a manner.

(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provision is required. Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provision for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends of net investment income monthly and distributions of net realized capital and currency gains, if any, annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method and include gains and losses from repayments of principal on mortgage-backed securities. Interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to separate classes of shares pro rata based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.

(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.

(F) Use of Estimates. In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G) Repurchase Agreements. The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Fund’s Board. Repurchase agreements are considered under the 1940 Act to be collateralized loans by a Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily

20    MainStay Short Term Bond Fund

on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(H) Mortgage Dollar Rolls. The Fund may enter into mortgage dollar roll (“MDR”) transactions in which it sells mortgage-backed securities (“MBS”) from its portfolio to a counterparty from whom it simultaneously agrees to buy a similar security on a delayed delivery basis. The MDR transactions of the Fund are classified as purchase and sale transactions. The securities sold in connection with the MDRs are removed from the portfolio and a realized gain or loss is recognized. The securities the Fund has agreed to acquire are included at market value in the Portfolio of Investments and liabilities for such purchase commitments are included as payables for investments purchased. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future as well as by the earnings on the cash proceeds of the initial sale. MDRs may be renewed without physical delivery of the securities subject to the contract. The Fund maintains liquid assets from its portfolio having a value not less than the repurchase price, including accrued interest. MDR transactions involve certain risks, including the risk that the MBS returned to the Fund at the end of the roll, while substantially similar, could be inferior to what was initially sold to the counterparty.

(I) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act, and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the Lending Agreement between the Fund and State Street, and indemnify the Fund’s portfolio against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. Government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund will receive compensation for lending its securities in the form of fees or retain a portion of interest on the investment of any cash received as collateral. The Fund also will continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund.

Although the Fund and New York Life Investments (as defined in Note 3(A)) have temporarily suspended securities lending, the Fund and New York Life Investments reserve the right to reinstitute lending when deemed appropriate. The Fund had no portfolio securities on loan as of April 30, 2011.

(J) Concentration of Risk. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific country, industry or region.

(K) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A) Manager and Subadvisor. New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to a Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services, and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager also pays the salaries and expenses of all personnel affiliated with the Fund and the operational expenses of the Fund. MacKay Shields LLC (the “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement, as amended (“Subadvisory Agreement”) between New York Life Investments and the Subadvisor, New York Life Investments pays for the services of the Subadvisor.

The Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.60% up to $500 million and 0.575% in excess of $500 million. The effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.60% for the six-month period ended April 30, 2011.

The Manager has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses for Class A shares do not exceed 0.93% of its average daily net assets. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points, to the other share classes of the Fund. This agreement expires on February 28, 2012 and may only be amended or terminated prior to that date by action of the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage or other transaction expenses

mainstayinvestments.com    21

Notes to Financial Statements (unaudited) (continued)

relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

For the six-month period ended April 30, 2011, New York Life Investments earned fees from the Fund in the amount of $291,736 and waived/reimbursed its fees in the amount of $120,268.

State Street, 1 Lincoln Street, Boston, Massachusetts 02111, provides sub-administration and sub-accounting services to the Fund pursuant to an agreement with New York Life Investments. These services include calculating the daily NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund’s respective NAVs, and assisting New York Life Investments in conducting various aspects of the Fund’s administrative operations. For providing these services to the Fund, State Street is compensated by New York Life Investments.

(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a Distribution Agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Investor Class and Class A Plans, the Distributor receives a monthly distribution fee from the Investor Class and Class A shares at an annual rate of 0.25% of the average daily net assets of the Investor Class and Class A shares for distribution or service activities as designated by the Distributor. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.

(C) Sales Charges. The Fund was advised by the Distributor that the amount of sales charges retained on sales of Investor Class and Class A shares were $1,120 and $2,107, respectively, for the six-month period ended April 30, 2011.

(D) Transfer, Dividend Disbursing and Shareholder Servicing Agent. NYLIM Service Company LLC, an affiliate of New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. Transfer agent expenses incurred by the Fund for the six-month period ended April 30, 2011, were as follows:

Investor Class	$	10,045
Class A		20,754
Class I		39,784

(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually). These fees are included in transfer agent fees shown on the Statement of Operations.

(F) Capital. At April 30, 2011, New York Life and its affiliates beneficially held shares of the Fund with the following values and percentages of net assets as follows:

Class A $ 1,228 0.0 %‡

‡  Less than one-tenth of a percent.

(G) Other. Pursuant to the Management Agreement, a portion of the cost of legal services provided to the Fund by the Office of the General Counsel of New York Life Investments (“OGC”) was payable directly by the Fund through March 17, 2011. For the six-month period ended April 30, 2011, these fees, which are included in professional fees shown on the Statement of Operations, were $1,208. Effective March 18, 2011, the Fund is no longer directly responsible for any portion of the cost of legal services provided to the Fund by OGC.

Note 4–Federal Income Tax

The tax character of distributions paid during the year ended October 31, 2010, shown in the Statement of Changes in Net Assets, was as follows:

	2010
Distributions paid from:
Ordinary Income	$	2,956,375
Long-Term Capital Gain		130,656
Total	$	3,087,031

Note 5–Custodian

State Street is the custodian of the cash and the securities of the Fund. Custodial fees are charged to the Fund based on the market value of securities in the Fund and the number of certain cash transactions incurred by the Fund.

Note 6–Line of Credit

The Fund and certain affiliated funds maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.

Effective September 1, 2010, under an amended credit agreement, the aggregate commitment amount is $125,000,000 with an optional maximum amount of $175,000,000. The commitment rate is an annual rate of 0.10% of the average commitment amount, plus a 0.02% up-front payment payable, regardless of usage, to The Bank of New York Mellon, which serves as the agent to the syndicate. The commitment fee and up-front payment are allocated among certain MainStay Funds based upon net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances rate or the one month London InterBank Offered Rate, whichever is higher. The amended credit agreement expires on August 31, 2011, although the MainStay Funds and the syndicate of banks may renew the amended credit agreement for an additional year on the same or different terms. There were no borrowings made or

22    MainStay Short Term Bond Fund

outstanding with respect to the Fund on the amended credit agreement during the six-month period ended April 30, 2011.

Note 7–Purchases and Sales of Securities (in 000’s)

During the six-month period ended April 30, 2011, purchases and sales of U.S. Government securities were $11,537 and $38,640, respectively. Purchases and sales of securities, other than U.S. Government securities and short-term securities, were $1,666 and $2,340, respectively.

Note 8–Capital Share Transactions

Investor Class	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		62,417		$	606,264
Shares issued to shareholders in reinvestment of dividends and distributions		2,702			26,214
Shares redeemed		(98,090	)		(952,116	)
Net increase (decrease) in shares outstanding before conversion		(32,971	)		(319,638	)
Shares converted into Investor Class (See Note 1)		5,086			49,281
Shares converted from Investor Class (See Note 1)		(7,083	)		(68,772	)
Net increase (decrease)		(34,968	)	$	(339,129	)
Year ended October 31, 2010:
Shares sold		194,937		$	1,898,142
Shares issued to shareholders in reinvestment of dividends and distributions		6,204			60,332
Shares redeemed		(99,068	)		(964,661	)
Net increase (decrease) in shares outstanding before conversion		102,073			993,813
Shares converted into Investor Class (See Note 1)		9,444			91,969
Shares converted from Investor Class (See Note 1)		(15,602	)		(151,364	)
Net increase (decrease)		95,915		$	934,418
Class A	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		360,053		$	3,483,282
Shares issued to shareholders in reinvestment of dividends and distributions		23,623			228,590
Shares redeemed		(1,156,068	)		(11,196,192	)
Net increase (decrease) in shares outstanding before conversion		(772,392	)		(7,484,320	)
Shares converted into Class A (See Note 1)		7,105			68,772
Shares converted from Class A (See Note 1)		(5,102	)		(49,281	)
Net increase (decrease)		(770,389	)	$	(7,464,829	)
Year ended October 31, 2010:
Shares sold		2,907,411		$	28,220,310
Shares issued to shareholders in reinvestment of dividends and distributions		73,258			710,341
Shares redeemed		(4,034,527	)		(39,176,244	)
Net increase (decrease) in shares outstanding before conversion		(1,053,858	)		(10,245,593	)
Shares converted into Class A (See Note 1)		15,645			151,364
Shares converted from Class A (See Note 1)		(9,463	)		(91,969	)
Shares converted from Class A (a)		(813,781	)		(7,869,266	)
Net increase (decrease)		(1,861,457	)	$	(18,055,464	)
Class I	Shares			Amount
Six-month period ended April 30, 2011:
Shares sold		1,218,351		$	11,798,954
Shares issued to shareholders in reinvestment of dividends and distributions		56,688			548,360
Shares redeemed		(3,766,074	)		(36,447,021	)
Net increase (decrease)		(2,491,035	)	$	(24,099,707	)
Year ended October 31, 2010:
Shares sold		4,326,886		$	42,010,456
Shares issued to shareholders in reinvestment of dividends and distributions		186,401			1,807,620
Shares redeemed		(5,607,063	)		(54,346,944	)
Net increase (decrease) in shares outstanding before conversion		(1,093,776	)		(10,528,868	)
Shares converted into Class I (a)		813,781			7,869,266
Net increase (decrease)		(279,995	)	$	(2,659,602	)

(a)  In addition to any automatic conversion features described above in Note 1 with respect to Investor Class and Class A shares, an investor generally may also elect to convert their shares on a voluntary basis into another share class of the same fund for which an investor is eligible. However, the following limitation applies:

•  Investor Class and Class A shares that remain subject to a CDSC are ineligible for a voluntary conversion; and This limitation does not impact any automatic conversion features described in Note 1 with respect to Investor Class and Class A shares.

An investor or an investor’s financial intermediary may contact the Fund to request a voluntary conversion between shares classes of the same Fund. An investor may be required to provide sufficient information to establish eligibility to convert to the new share class. All permissible conversions will be made on the basis of the relevant NAVs of the two classes without the imposition of any sales load, fee or other charge. If an investor fails to remain eligible for the new share class, an investor may automatically be converted back to their original share class, or into another share class, if appropriate.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended April 30, 2011, events and transactions subsequent to April 30, 2011 through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

mainstayinvestments.com    23

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) requires that each mutual fund’s board of directors/trustees, including a majority of the independent directors/trustees, annually review and approve the fund’s investment advisory agreements. At its December 14-15, 2010 meeting, the Board of Directors/Trustees of the MainStay Group of Funds (“Board”) unanimously approved the Management Agreement between the MainStay Short Term Bond Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”), and the Subadvisory Agreement between New York Life Investments and MacKay Shields LLC (“MacKay Shields”) on behalf of the Fund.

The Board previously considered and approved these agreements (the “Agreements”) at its June 2010 meeting. The Board’s reconsideration and re-approval of the Agreements in December 2010 was designed to enable the Board to review certain contractual arrangements for the MainStay Group of Funds at its fourth quarter meetings going forward.

In reaching its decisions to approve the Agreements, the Board particularly considered information presented to the Board by New York Life Investments and MacKay Shields as part of its annual consideration and approval of the Agreements at the Board’s June 2010 meeting. The Board also considered information prepared specifically by New York Life Investments and MacKay Shields in connection with the contract review process that took place at various meetings between October 2010 and December 2010, as well as other relevant information furnished to it throughout the year by New York Life Investments and MacKay Shields at regular and special Board meetings. Information requested by and provided to the Board by New York Life Investments specifically in connection with these contract review processes included, among other things, reports on the Fund prepared by Strategic Insight Mutual Fund Research and Consulting LLC (“Strategic Insight”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management and subadvisory fees and ordinary operating expenses. The Board also considered information provided by New York Life Investments and MacKay Shields on the fees charged to other investment advisory clients (including institutional separate accounts) that follow investment strategies similar to the Fund, and the rationale for any differences in the Fund’s management and/or subadvisory fee and the fees charged to such institutional products. In addition, the Board requested and received information on the profitability of the Fund to New York Life Investments and its affiliates, including MacKay Shields as subadvisor to the Fund, and responses from New York Life Investments to several comprehensive lists of questions encompassing a variety of topics prepared on behalf of the Board by independent legal counsel to the Board and its independent directors/trustees (the “Independent Trustees”). Information provided to the Board at its meetings throughout the year included, among other things, detailed investment performance reports on the Fund prepared by the Investment Consulting Group at New York Life Investments. The structure and format for this regular reporting was developed in consultation with the Board. The Board also received from New York Life Investments throughout the year, among other things, periodic reports on legal and compliance matters, portfolio turnover, and sales and marketing activity.

In determining to approve the Agreements, the members of the Board reviewed and evaluated all of the information and factors they believed to be relevant and appropriate in light of legal advice furnished to them by independent legal counsel and through the exercise of their own business judgment. The broad factors considered by the Board are discussed in greater detail below, and included, among other things: (i) the nature, extent, and quality of the services provided to the Fund by New York Life Investments and MacKay Shields; (ii) the investment performance of the Fund, New York Life Investments and MacKay Shields; (iii) the costs of the services provided, and profits realized, by New York Life Investments and its affiliates, including MacKay Shields as subadvisor to the Fund, from their relationship with the Fund; (iv) the extent to which economies of scale may be realized as the Fund grows, and the extent to which economies of scale may benefit Fund investors; and (v) the reasonableness of the Fund’s management and subadvisory fee levels and overall total ordinary operating expenses, particularly as compared to similar funds and accounts managed by New York Life Investments and third-party “peer funds” identified by Strategic Insight.

While individual members of the Board may have weighed certain factors differently, the Board’s decisions to approve the Agreements were based on a comprehensive consideration of all the information provided to the Board, including information provided to the Board throughout the year and specifically in connection with the contract review processes. The Board’s conclusions with respect to the Agreements also were based, in part, on the Board’s consideration of the Agreements earlier in the year and in prior years. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to shareholders of the Fund, and that the Fund’s shareholders, having had the opportunity to consider other investment options, have chosen to invest in the Fund. A more detailed discussion of the factors that figured prominently in the Board’s decisions to approve the Agreements is provided below.

Nature, Extent and Quality of Services to Be Provided by New York Life Investments and MacKay Shields

In considering the approval of the Agreements, the Board examined the nature, extent and quality of the services that New York Life Investments provides to the Fund. The Board evaluated New York Life Investments’ experience in serving as manager of the Fund, noting that New York Life Investments manages other mutual funds, serves a variety of other investment advisory clients, including other pooled investment vehicles, and has experience with overseeing affiliated and non-affiliated subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative services to the Fund, as well as New York Life Investments’ reputation and financial condition. The Board considered New York Life Investments’ performance in fulfilling its responsibilities for overseeing the Fund’s legal and compliance environment, for overseeing MacKay Shields’ compliance with the Fund’s policies and investment objectives, and for implementing Board directives as they relate to the Fund. The Board considered New York Life Investments’ willingness to invest in personnel that benefit the Fund, and noted that New York Life Investments also is responsible for paying all of the salaries and expenses for the Fund’s officers. The Board also considered the benefits to shareholders of being part of the MainStay Group of Funds, including the privilege of exchanging investments between the same class of shares without the imposition of a sales charge, as described more fully in the Fund’s prospectus.

24    MainStay Short Term Bond Fund

Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)

The Board also examined the nature, extent and quality of the services that MacKay Shields provides to the Fund. The Board evaluated MacKay Shields’ experience in serving as subadvisor to the Fund and managing other portfolios. It examined MacKay Shields’ track record and experience in providing investment advisory services, the experience of investment advisory, senior management and administrative personnel at MacKay Shields, and MacKay Shields’ overall legal and compliance environment. The Board also reviewed MacKay Shields’ willingness to invest in personnel designed to benefit the Fund. In this regard, the Board considered the experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating portfolio managers.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund likely would continue to benefit from the nature, extent and quality of these services as a result of New York Life Investments’ and MacKay Shields’ experience, personnel, operations and resources.

Investment Performance

In evaluating the Fund’s investment performance, the Board considered investment performance results in light of the Fund’s investment objective, strategies and risks, as disclosed in the Fund’s prospectus. Throughout the year, the Board particularly considered the detailed investment reports on the Fund’s performance provided by the Investment Consulting Group of New York Life Investments. These reports include, among other things, information on the Fund’s gross and net returns, the Fund’s investment performance relative to relevant investment categories and Fund benchmarks, the Fund’s risk-adjusted investment performance, and the Fund’s investment performance as compared to similar competitor funds, as appropriate. The Board also considered information provided by Strategic Insight showing the investment performance of the Fund as compared to peer funds. In evaluating the performance of the Fund, the Board also took into account whether the Fund had been in operation for a sufficient time period to establish a meaningful investment performance track record.

In considering the Fund’s investment performance, the Board focused principally on the Fund’s long-term performance track record. The Board also gave weight to its ongoing discussions with senior management at New York Life Investments concerning the Fund’s investment performance, as well as discussions between the Fund’s portfolio managers and the Board that occurred at meetings from time to time throughout the year and in previous years. In addition, the Board considered any specific actions that New York Life Investments had taken, or had agreed with the Board to take, to enhance Fund investment performance, and the results of those actions.

Based on these considerations, the Board concluded, within the context of its overall determinations regarding the Agreements, that the long-term investment performance of the Fund, along with ongoing efforts by New York Life Investments and MacKay Shields to enhance investment returns, supported a determination to approve the Agreements. The Fund discloses more information about investment performance in the Portfolio Management Discussion and Analysis, Investment and Performance Comparison and Financial Highlights sections of this Semiannual Report and in the Fund’s prospectus.

Costs of the Services Provided, and Profits to Be Realized, by New York Life Investments and MacKay Shields

The Board considered the costs of the services provided by New York Life Investments and MacKay Shields under the Agreements, and the profits realized by New York Life Investments and its affiliates due to their relationships with the Fund. Because MacKay Shields is an affiliate of New York Life Investments whose subadvisory fees are paid directly by New York Life Investments, the Board considered cost and profitability information for New York Life Investments and MacKay Shields in the aggregate.

In evaluating any costs and profits of New York Life Investments and its affiliates, including MacKay Shields, due to their relationships with the Fund, the Board considered, among other factors, each party’s investments in personnel, systems, equipment and other resources necessary to manage the Fund, and that New York Life Investments is responsible for paying the subadvisory fees for the Fund. The Board acknowledged that New York Life Investments and MacKay Shields must be in a position to pay and retain experienced professional personnel to provide services to the Fund, and that New York Life Investments’ ability to maintain a strong financial position is important in order for New York Life Investments to continue to provide high-quality services to the Fund. The Board noted, for example, costs borne by New York Life Investments and its affiliates due to new and ongoing regulatory and compliance requirements. The Board also noted that the Fund benefits from the allocation of certain fixed costs across the MainStay Group of Funds.

In addition, the Board noted the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability, since such information generally is not publicly available and may be impacted by numerous factors, including the structure of a fund manager’s organization, the types of funds it manages, the methodology used to allocate certain fixed costs to specific funds, and the manager’s capital structure and costs of capital. While recognizing the difficulty in evaluating a manager’s profitability with respect to the Fund, and noting that other profitability methodologies may also be reasonable, the Board concluded that the profitability methodology presented by New York Life Investments to the Board, which was developed by New York Life Investments in consultation with an independent consultant, was reasonable in all material respects.

In considering the costs and profitability of the Fund, the Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates due to their relationships with the Fund. The Board further considered that, in addition to fees earned by New York Life Investments for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board observed that information about these other revenues, and their impact on the profitability of the Fund to New York Life Investments and its affiliates, was presented to the Board as part of the 15(c) processes. The Board noted that, although it assessed the overall profitability of the Fund to New York Life Investments and its affiliates as part of the contract review processes, when considering

mainstayinvestments.com    25

the reasonableness of the fees to be paid to New York Life Investments and its affiliates under the Agreements, the Board considered the profitability of New York Life Investments’ relationship with the Fund on a pre-tax basis, and without regard to distribution expenses.

After evaluating the information presented to the Board, the Board concluded, within the context of its overall determinations regarding the Agreements, that any profits realized by New York Life Investments and its affiliates (including MacKay Shields) due to their relationships with the Fund supported the Board’s determination to approve the Agreements.

Extent to Which Economies of Scale May Be Realized as the Fund Grows

The Board also considered whether the Fund’s expense structure permitted economies of scale to be shared with Fund investors. The Board reviewed information from New York Life Investments showing how the Fund’s management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from Strategic Insight showing how the Fund’s management fee schedule hypothetically would compare with fees paid for similar services by peer funds at varying asset levels. The Board noted the extent to which the Fund benefits from any breakpoints or expense limitations. While recognizing the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with the Fund in a number of ways, including, for example, through the imposition of management fee breakpoints and by initially setting relatively lower management fees.

Based on this information, the Board concluded, within the context of its overall determinations regarding the Agreements, that the Fund’s expense structure appropriately reflects economies of scale for the benefit of Fund investors. The Board noted, however, that it would continue to evaluate the reasonableness of the Fund’s expense structure as the Fund grows over time.

Management and Subadvisory Fees and Total Ordinary Operating Expenses

The Board evaluated the reasonableness of the fees to be paid under the Agreements and the Fund’s expected total ordinary operating expenses. The Board primarily considered the reasonableness of the overall management fees paid by the Fund to New York Life Investments, since the fees to be paid to MacKay Shields are paid by New York Life Investments, not the Fund. The Board also considered the impact of the Fund’s expense limitation arrangements pursuant to which New York Life Investments has agreed to limit the Fund’s total ordinary operating expenses.

In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by Strategic Insight on the fees and expenses charged by similar mutual funds managed by other investment advisers. In addition, the Board considered information provided by New York Life Investments and MacKay Shields on fees charged to other investment advisory clients, including institutional separate accounts and other funds with similar investment objectives as the Fund. In this regard, the Board took into account explanations from New York Life Investments and MacKay Shields about the different scope of services provided to retail mutual funds as compared with other investment advisory clients.

The Board noted that, outside of the Fund’s management fee and the fees charged under a share class’s Rule 12b-1 and/or shareholder services plans, a share class’s most significant “other expenses” are transfer agent fees. Transfer agent fees are charged to the Fund based on the number of shareholder accounts (a “per-account” fee) as compared with certain other fees (e.g., management fees), which are charged based on the Fund’s average net assets. The Board took into account information from New York Life Investments showing that the Fund’s transfer agent fee schedule is reasonable, including industry data showing that the per-account fees that NYLIM Service Company LLC, the Fund’s transfer agent, charges the Fund are within the range of per-account fees charged by transfer agents to other mutual funds. In addition, the Board considered NYLIM Service Company LLC’s profitability in connection with the transfer agent services it provides to the Fund.

The Board observed that, because the Fund’s transfer agent fees are billed on a per-account basis, the impact of transfer agent fees on a share class’s expense ratio may be more significant in cases where the share class has a high number of accounts with limited assets (i.e., small accounts). The Board noted that transfer agent fees are a significant portion of total expenses of many funds in the MainStay Group of Funds. The impact of transfer agent fees on the expense ratios of these MainStay Funds tends to be greater than for other open-end retail funds because the MainStay Group of Funds generally has a significant number of small accounts relative to competitor funds. The Board noted the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company (“New York Life”) policyholders, who often maintain smaller account balances than other fund investors. The Board discussed measures that it and New York Life Investments have taken in recent years to mitigate the effect of small accounts on the expense ratios of Fund share classes, including: (i) encouraging New York Life agents to consolidate multiple small accounts held by the same investor into one MainStay Asset Allocation Fund account; (ii) increasing investment minimums from $500 to $1,000 in 2003; (iii) closing small accounts with balances below $250 in Investor Class shares or $750 in all other classes of shares; (iv) no longer allowing an exception with no minimum investment amount with respect to AutoInvest accounts with subsequent monthly purchases of $100; (v) since 2007, charging an annual $20.00 small account fee on certain accounts with balances below $1,000; (vi) modifying the approach for billing transfer agent expenses to reduce the degree of subsidization by large accounts of smaller accounts; and (vii) introducing Investor Class shares for certain MainStay Funds in early 2008 to consolidate smaller account investors.

After considering all of the factors outlined above, the Board concluded that the Fund’s management and subadvisory fees and total ordinary operating expenses were within a range that is competitive and, within the context of the Board’s overall conclusions regarding the Agreements, support a conclusion that these fees and expenses are reasonable.

Conclusion

On the basis of the information provided to it and its evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Agreements.

26    MainStay Short Term Bond Fund

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available without charge, upon request, (i) by visiting the Fund’s website at mainstayinvestments.com; and (ii) on the Securities and Exchange Commission’s (SEC) website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. The Fund’s most recent Form N-PX is available free of charge upon request by calling 800-MAINSTAY (624-6782); visiting the Fund’s website at mainstayinvestments.com; or on the SEC’s website at www.sec.gov.

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. The Fund’s Form N-Q is available without charge, on the SEC’s website at www.sec.gov or by calling MainStay Investments at 800-MAINSTAY (624-6782). You also can obtain and review copies of Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

mainstayinvestments.com    27

MainStay Funds

MainStay offers a wide range of Funds for virtually any investment need. The full array of MainStay offerings is listed here, with information about the manager, subadvisors, legal counsel, and independent registered public accounting firm.

Equity Funds

MainStay 130/30 Core Fund

MainStay 130/30 Growth Fund

MainStay Common Stock Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Fund

MainStay Equity Index Fund¹

MainStay Growth Equity Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Small Cap Fund

Income Funds

MainStay Cash Reserves Fund

MainStay Flexible Bond Opportunities Fund

MainStay Floating Rate Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Municipal Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Intermediate Term Bond Fund

MainStay Money Market Fund

MainStay Principal Preservation Fund

MainStay Short Term Bond Fund

MainStay Tax Free Bond Fund

Blended Funds

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

International Funds

MainStay 130/30 International Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay Global High Income Fund

MainStay ICAP Global Fund

MainStay ICAP International Fund

MainStay International Equity Fund

Asset Allocation Funds

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

Retirement Funds

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC²

Chicago, Illinois

MacKay Shields LLC²

New York, New York

Madison Square Investors LLC²

New York, New York

Markston International LLC

White Plains, New York

Winslow Capital Management, Inc.

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firm

KPMG LLP

1.	Closed to new investors and new purchases as of January 1, 2002.
2.	An affiliate of New York Life Investment Management LLC.

Not part of the Semiannual Report

mainstayinvestments.com

The MainStay Funds are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors is a Member FINRA/SIPC.

MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.

This report may be distributed only when preceded or accompanied by a current Fund prospectus.

^© 2011 by NYLIFE Distributors LLC. All rights reserved.

Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency

NYLIM-23181 MS136-11 MSSB10-06/11

B5

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments

The Schedule of Investments is included as part of Item 1 of this report.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not Applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Since the Registrant’s last response to this Item, there have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) Based on an evaluation of the Registrant’s Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) (the “Disclosure Controls”), as of a date within 90 days prior to the filing date (the “Filing Date”) of this Form N-CSR (the “Report”), the Registrant’s principal executive officer and principal financial officer have concluded that the Disclosure Controls are reasonably designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and

reported by the Filing Date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d)) under the Investment Company Act of 1940 that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940.
(b)	Certifications of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

MAINSTAY FUNDS TRUST

By:	/s/ Stephen P. FisherStephen P. Fisher
	President and Principal Executive Officer

Date: July 7, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Stephen P. FisherStephen P. Fisher
	President and Principal Executive Officer

Date: July 7, 2011

By:	/s/ Jack R. BenintendeJack R. Benintende
	Treasurer and Principal Financial and Accounting Officer

Date: July 7, 2011

EXHIBIT INDEX

(a)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940.
(b)	Certification of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002.