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.
30 Hudson Street
Jersey City, New Jersey 07302
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 576-7000
Date of fiscal year end: October 31
Date of reporting period: April 30, 2024
Item 1. Reports to Stockholders.
MainStay Balanced Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio3 |
Class A Shares4 | Maximum 3.00% Initial Sales Charge | With sales charges | 1/2/2004 | 6.38% | 2.89% | 4.55% | 4.82% | 1.07% |
| | Excluding sales charges | | 9.67 | 6.07 | 5.74 | 5.42 | 1.07 |
Investor Class Shares5 | Maximum 2.50% Initial Sales Charge | With sales charges | 2/28/2008 | 6.79 | 3.15 | 4.29 | 4.60 | 1.42 |
| | Excluding sales charges | | 9.53 | 5.80 | 5.48 | 5.20 | 1.42 |
Class B Shares6 | Maximum 5.00% CDSC | With sales charges | 1/2/2004 | 4.13 | -0.00 | 4.37 | 4.41 | 2.17 |
| if Redeemed Within the First Six Years of Purchase | Excluding sales charges | | 9.13 | 5.00 | 4.69 | 4.41 | 2.17 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 12/30/2002 | 8.13 | 3.96 | 4.69 | 4.41 | 2.17 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 9.13 | 4.96 | 4.69 | 4.41 | 2.17 |
Class I Shares | No Sales Charge | | 5/1/1989 | 9.80 | 6.31 | 6.01 | 5.68 | 0.82 |
Class R6 Shares | No Sales Charge | | 12/15/2017 | 9.84 | 6.40 | 6.10 | 5.38 | 0.73 |
1. | Effective March 5, 2021, the Fund replaced the subadvisor to the equity portion of the Fund and modified its principal investment strategies. The past performance in the graph and table prior to that date reflects the Fund’s prior subadvisor and principal investment strategies for the equity portion of the Fund. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Prior to November 4, 2019, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
5. | Prior to June 30, 2020, the maximum initial sales charge was 3.00%, which is reflected in the applicable average annual total return figures shown. |
6. | Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Russell 3000® Index2 | 21.09% | 22.30% | 12.43% | 11.81% |
Russell 1000® Value Index3 | 18.42 | 13.42 | 8.60 | 8.43 |
Bloomberg U.S. Intermediate Government/Credit Bond Index4 | 3.47 | 0.69 | 0.78 | 1.42 |
Balanced Composite Index5 | 12.30 | 8.37 | 5.81 | 5.86 |
Morningstar Moderate Allocation Category Average6 | 13.00 | 10.46 | 6.28 | 6.07 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index, which represents a broad measure of market performance, as a replacement for the Russell 1000® Value Index. 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. |
3. | The Russell 1000® Value Index, which is generally representative of the market sectors or types of investments in which the Fund invests, measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® Index companies with lower price-to-book ratios and lower expected growth values. |
4. | The Bloomberg U.S. Intermediate Government/Credit Bond Index, which is generally representative of the market sectors or types of investments in which the Fund invests, measures the performance of U.S. dollar denominated U.S. treasuries, government related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year and less than ten years. |
5. | The Balanced Composite Index, which is generally representative of the market sectors or types of investments in which the Fund invests, consists of the Russell 1000® Value Index and the Bloomberg U.S. Intermediate Government/Credit Bond Index weighted 60%/40%, respectively. |
6. | The Morningstar Moderate Allocation Category Average is representative of funds in allocation categories that seek to provide both income and capital appreciation by primarily investing in multiple asset classes, including stocks, bonds, and cash. These moderate strategies seek to balance preservation of capital with appreciation. They typically expect volatility similar to a strategic equity exposure between 50% and 70%. Results are based on average total returns of similar funds with all dividends 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.
Cost in Dollars of a $1,000 Investment in MainStay Balanced Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,096.70 | $ 5.53 | $1,019.59 | $ 5.32 | 1.06% |
Investor Class Shares | $1,000.00 | $1,095.30 | $ 6.88 | $1,018.30 | $ 6.62 | 1.32% |
Class B Shares | $1,000.00 | $1,091.30 | $10.76 | $1,014.57 | $10.37 | 2.07% |
Class C Shares | $1,000.00 | $1,091.30 | $10.76 | $1,014.57 | $10.37 | 2.07% |
Class I Shares | $1,000.00 | $1,098.00 | $ 4.23 | $1,020.84 | $ 4.07 | 0.81% |
Class R6 Shares | $1,000.00 | $1,098.40 | $ 3.81 | $1,021.23 | $ 3.67 | 0.73% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Portfolio Composition as of April 30, 2024 (Unaudited)
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | U.S. Treasury Notes, 2.50%-4.875%, due 5/15/24–2/15/34 |
2. | iShares Russell 1000 Value ETF |
3. | JPMorgan Chase & Co. |
4. | Vanguard Russell 1000 Value |
5. | iShares Intermediate Government/Credit Bond ETF |
6. | Merck & Co., Inc. |
7. | Johnson & Johnson |
8. | Vanguard Intermediate-Term Treasury ETF |
9. | Cisco Systems, Inc. |
10. | Morgan Stanley |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Long-Term Bonds 32.6% |
Asset-Backed Securities 0.7% |
Other Asset-Backed Securities 0.7% |
Ballyrock CLO 23 Ltd. | | |
Series 2023-23A, Class A1 | | |
7.304% (3 Month SOFR + 1.98%), due 4/25/36 (Jersey, C.I.) (a)(b) | $ 750,000 | $ 756,397 |
Barings CLO Ltd. | | |
Series 2024-1A, Class B | | |
7.369% (3 Month SOFR + 2.10%), due 1/20/37 (Cayman Islands) (a)(b) | 500,000 | 502,104 |
Benefit Street Partners CLO XXX Ltd. | | |
Series 2023-30A, Class A | | |
7.424% (3 Month SOFR + 2.10%), due 4/25/36 (Jersey, C.I.) (a)(b) | 700,000 | 705,165 |
Carlyle Global Market Strategies CLO Ltd. | | |
Series 2013-3A, Class A2R | | |
6.99% (3 Month SOFR + 1.662%), due 10/15/30 (Cayman Islands) (a)(b) | 1,100,000 | 1,100,899 |
STORE Master Funding I-VII XIV XIX XX | | |
Series 2021-1A, Class A1 | | |
2.12%, due 6/20/51 (a) | 304,376 | 259,558 |
| | 3,324,123 |
Total Asset-Backed Securities (Cost $3,350,412) | | 3,324,123 |
Corporate Bonds 13.0% |
Aerospace & Defense 0.3% |
BAE Systems plc | | |
5.125%, due 3/26/29 (United Kingdom) (a) | 850,000 | 834,402 |
Boeing Co. (The) | | |
5.15%, due 5/1/30 | 290,000 | 274,279 |
5.805%, due 5/1/50 | 120,000 | 106,191 |
HEICO Corp. | | |
5.35%, due 8/1/33 | 210,000 | 206,235 |
| | 1,421,107 |
Auto Manufacturers 0.5% |
Ford Motor Co. | | |
3.25%, due 2/12/32 | 205,000 | 165,113 |
Ford Motor Credit Co. LLC | | |
4.542%, due 8/1/26 | 450,000 | 435,268 |
General Motors Financial Co., Inc. | | |
6.05%, due 10/10/25 | 595,000 | 596,386 |
| Principal Amount | Value |
|
Auto Manufacturers (continued) |
Hyundai Capital America | | |
5.68%, due 6/26/28 (a) | $ 580,000 | $ 577,726 |
Volkswagen Group of America Finance LLC | | |
5.60%, due 3/22/34 (Germany) (a) | 295,000 | 287,952 |
| | 2,062,445 |
Auto Parts & Equipment 0.1% |
Aptiv plc | | |
3.25%, due 3/1/32 | 320,000 | 270,436 |
Banks 4.7% |
ABN AMRO Bank NV | | |
6.339% (1 Year Treasury Constant Maturity Rate + 1.65%), due 9/18/27 (Netherlands) (a)(b) | 400,000 | 403,488 |
Bank of America Corp. (c) | | |
1.734%, due 7/22/27 | 1,040,000 | 954,135 |
2.087%, due 6/14/29 | 865,000 | 752,557 |
5.202%, due 4/25/29 | 660,000 | 649,785 |
5.468%, due 1/23/35 | 200,000 | 194,494 |
Bank of New York Mellon Corp. (The) | | |
6.474%, due 10/25/34 (c) | 175,000 | 184,733 |
Barclays plc | | |
7.385% (1 Year Treasury Constant Maturity Rate + 3.30%), due 11/2/28 (United Kingdom) (b) | 405,000 | 423,009 |
Citigroup, Inc. (c) | | |
2.014%, due 1/25/26 | 875,000 | 849,516 |
5.61%, due 9/29/26 | 1,050,000 | 1,047,691 |
6.174%, due 5/25/34 | 410,000 | 406,900 |
Citizens Bank NA | | |
6.064%, due 10/24/25 (c) | 380,000 | 378,217 |
Citizens Financial Group, Inc. | | |
6.645%, due 4/25/35 (c) | 265,000 | 265,741 |
Credit Suisse AG | | |
7.95%, due 1/9/25 (Switzerland) | 1,000,000 | 1,013,460 |
Danske Bank A/S | | |
6.466% (1 Year Treasury Constant Maturity Rate + 2.10%), due 1/9/26 (Denmark) (a)(b) | 850,000 | 851,097 |
Deutsche Bank AG | | |
7.079%, due 2/10/34 (Germany) (c) | 270,000 | 269,242 |
Goldman Sachs Group, Inc. (The) | | |
5.70%, due 11/1/24 | 650,000 | 650,136 |
6.484%, due 10/24/29 (c) | 345,000 | 355,985 |
HSBC Holdings plc (United Kingdom) (c) | | |
6.547%, due 6/20/34 | 330,000 | 333,972 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Banks (continued) |
HSBC Holdings plc (United Kingdom) (c) (continued) | | |
7.39%, due 11/3/28 | $ 470,000 | $ 492,718 |
JPMorgan Chase & Co. (c) | | |
2.005%, due 3/13/26 | 190,000 | 183,800 |
5.012%, due 1/23/30 | 600,000 | 585,441 |
5.04%, due 1/23/28 | 625,000 | 616,133 |
5.546%, due 12/15/25 | 730,000 | 728,112 |
5.571%, due 4/22/28 | 295,000 | 294,767 |
5.581%, due 4/22/30 | 595,000 | 594,473 |
Mitsubishi UFJ Financial Group, Inc. | | |
5.426% (1 Year Treasury Constant Maturity Rate + 1.00%), due 4/17/35 (Japan) (b) | 200,000 | 195,133 |
Morgan Stanley (c) | | |
4.679%, due 7/17/26 | 1,314,000 | 1,296,914 |
5.173%, due 1/16/30 | 160,000 | 156,879 |
5.656%, due 4/18/30 | 310,000 | 310,066 |
Morgan Stanley Bank NA | | |
4.754%, due 4/21/26 | 425,000 | 419,467 |
4.952%, due 1/14/28 (c) | 250,000 | 246,257 |
National Securities Clearing Corp. | | |
5.00%, due 5/30/28 (a) | 375,000 | 370,519 |
PNC Financial Services Group, Inc. (The) (c) | | |
5.812%, due 6/12/26 | 415,000 | 415,086 |
6.615%, due 10/20/27 | 545,000 | 556,907 |
6.875%, due 10/20/34 | 20,000 | 21,228 |
Royal Bank of Canada | | |
5.66%, due 10/25/24 (Canada) | 605,000 | 605,060 |
Truist Bank | | |
2.636% (5 Year Treasury Constant Maturity Rate + 1.15%), due 9/17/29 (b) | 250,000 | 240,803 |
Truist Financial Corp. | | |
5.122%, due 1/26/34 (c) | 160,000 | 149,084 |
U.S. Bancorp (c) | | |
4.653%, due 2/1/29 | 150,000 | 144,571 |
6.787%, due 10/26/27 | 385,000 | 394,856 |
UBS Group AG (Switzerland) (a) | | |
5.428% (1 Year Treasury Constant Maturity Rate + 1.52%), due 2/8/30 (b) | 340,000 | 334,366 |
6.442%, due 8/11/28 (c) | 550,000 | 558,390 |
| Principal Amount | Value |
|
Banks (continued) |
Wells Fargo & Co. (c) | | |
5.198%, due 1/23/30 | $ 845,000 | $ 828,548 |
5.499%, due 1/23/35 | 385,000 | 373,984 |
| | 21,097,720 |
Beverages 0.1% |
Constellation Brands, Inc. | | |
4.90%, due 5/1/33 | 345,000 | 325,428 |
Keurig Dr Pepper, Inc. | | |
Series 10 | | |
5.20%, due 3/15/31 | 130,000 | 127,076 |
| | 452,504 |
Biotechnology 0.2% |
Amgen, Inc. | | |
4.05%, due 8/18/29 | 590,000 | 555,004 |
5.15%, due 3/2/28 | 300,000 | 297,336 |
5.25%, due 3/2/30 | 200,000 | 198,236 |
| | 1,050,576 |
Chemicals 0.2% |
Celanese US Holdings LLC | | |
6.33%, due 7/15/29 | 420,000 | 426,052 |
6.55%, due 11/15/30 | 230,000 | 235,599 |
| | 661,651 |
Commercial Services 0.1% |
Global Payments, Inc. | | |
2.15%, due 1/15/27 | 400,000 | 366,218 |
Computers 0.0% ‡ |
Dell International LLC | | |
5.40%, due 4/15/34 | 135,000 | 130,798 |
Diversified Financial Services 0.5% |
American Express Co. | | |
6.489%, due 10/30/31 (c) | 390,000 | 408,217 |
Ares Management Corp. | | |
6.375%, due 11/10/28 | 425,000 | 438,511 |
Blackstone Holdings Finance Co. LLC | | |
5.90%, due 11/3/27 (a) | 605,000 | 612,226 |
Charles Schwab Corp. (The) | | |
6.196%, due 11/17/29 (c) | 470,000 | 481,023 |
Intercontinental Exchange, Inc. | | |
4.35%, due 6/15/29 | 110,000 | 104,999 |
| | 2,044,976 |
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 1.5% |
AEP Texas, Inc. | | |
4.70%, due 5/15/32 | $ 40,000 | $ 37,086 |
American Electric Power Co., Inc. | | |
5.625%, due 3/1/33 | 220,000 | 215,048 |
Appalachian Power Co. | | |
Series BB | | |
4.50%, due 8/1/32 | 45,000 | 40,969 |
Arizona Public Service Co. | | |
5.55%, due 8/1/33 | 415,000 | 406,805 |
Commonwealth Edison Co. | | |
3.10%, due 11/1/24 | 290,000 | 286,167 |
Duke Energy Carolinas LLC | | |
4.95%, due 1/15/33 | 195,000 | 187,681 |
Duke Energy Corp. | | |
2.45%, due 6/1/30 | 240,000 | 202,176 |
4.50%, due 8/15/32 | 140,000 | 128,889 |
Duke Energy Ohio, Inc. | | |
5.25%, due 4/1/33 | 70,000 | 68,297 |
Enel Finance America LLC | | |
7.10%, due 10/14/27 (Italy) (a) | 420,000 | 437,798 |
Entergy Arkansas LLC | | |
5.15%, due 1/15/33 | 220,000 | 213,713 |
Florida Power & Light Co. | | |
5.05%, due 4/1/28 | 640,000 | 636,454 |
Georgia Power Co. | | |
4.65%, due 5/16/28 | 755,000 | 734,036 |
National Rural Utilities Cooperative Finance Corp. | | |
5.05%, due 9/15/28 | 330,000 | 326,228 |
NextEra Energy Capital Holdings, Inc. | | |
6.051%, due 3/1/25 | 280,000 | 280,554 |
Pacific Gas and Electric Co. | | |
5.45%, due 6/15/27 | 400,000 | 397,452 |
6.10%, due 1/15/29 | 240,000 | 241,955 |
6.15%, due 1/15/33 | 450,000 | 450,413 |
6.40%, due 6/15/33 | 110,000 | 111,927 |
PECO Energy Co. | | |
4.90%, due 6/15/33 | 310,000 | 298,975 |
Southern California Edison Co. | | |
5.30%, due 3/1/28 | 380,000 | 377,858 |
5.95%, due 11/1/32 | 175,000 | 178,030 |
Southern Co. (The) | | |
5.15%, due 10/6/25 | 220,000 | 218,444 |
5.70%, due 10/15/32 | 100,000 | 100,196 |
Xcel Energy, Inc. | | |
5.50%, due 3/15/34 | 290,000 | 279,662 |
| | 6,856,813 |
| Principal Amount | Value |
|
Entertainment 0.0% ‡ |
Warnermedia Holdings, Inc. | | |
4.054%, due 3/15/29 | $ 224,000 | $ 204,329 |
Environmental Control 0.1% |
Waste Connections, Inc. | | |
2.60%, due 2/1/30 | 445,000 | 384,349 |
Food 0.1% |
Kraft Heinz Foods Co. | | |
3.75%, due 4/1/30 | 130,000 | 119,445 |
Tyson Foods, Inc. | | |
5.40%, due 3/15/29 | 525,000 | 519,570 |
| | 639,015 |
Gas 0.2% |
CenterPoint Energy Resources Corp. | | |
1.75%, due 10/1/30 | 550,000 | 439,580 |
Southwest Gas Corp. | | |
5.45%, due 3/23/28 | 220,000 | 219,083 |
| | 658,663 |
Healthcare-Products 0.3% |
Baxter International, Inc. | | |
3.95%, due 4/1/30 | 610,000 | 556,947 |
Solventum Corp. | | |
5.45%, due 2/25/27 (a) | 605,000 | 599,902 |
| | 1,156,849 |
Healthcare-Services 0.1% |
HCA, Inc. | | |
3.625%, due 3/15/32 | 620,000 | 533,290 |
Insurance 0.4% |
Corebridge Financial, Inc. | | |
3.85%, due 4/5/29 | 325,000 | 298,340 |
Corebridge Global Funding | | |
5.20%, due 1/12/29 (a) | 545,000 | 534,974 |
RGA Global Funding | | |
6.00%, due 11/21/28 (a) | 705,000 | 716,219 |
| | 1,549,533 |
Internet 0.2% |
Amazon.com, Inc. | | |
2.10%, due 5/12/31 | 430,000 | 353,879 |
Meta Platforms, Inc. | | |
3.85%, due 8/15/32 | 440,000 | 399,486 |
| | 753,365 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Investment Companies 0.1% |
Blackstone Private Credit Fund | | |
7.05%, due 9/29/25 | $ 420,000 | $ 423,917 |
Media 0.1% |
Paramount Global | | |
4.20%, due 5/19/32 | 605,000 | 494,070 |
Mining 0.0% ‡ |
Newmont Corp. | | |
5.35%, due 3/15/34 (a) | 195,000 | 190,211 |
Miscellaneous—Manufacturing 0.0% ‡ |
3M Co. | | |
3.05%, due 4/15/30 | 209,000 | 183,545 |
Oil & Gas 0.2% |
Coterra Energy, Inc. | | |
5.60%, due 3/15/34 | 195,000 | 190,680 |
Phillips 66 Co. | | |
3.15%, due 12/15/29 | 535,000 | 475,066 |
| | 665,746 |
Packaging & Containers 0.1% |
Berry Global, Inc. | | |
5.65%, due 1/15/34 (a) | 305,000 | 294,567 |
Pharmaceuticals 0.3% |
AbbVie, Inc. | | |
2.95%, due 11/21/26 | 240,000 | 226,614 |
5.05%, due 3/15/34 | 385,000 | 375,444 |
Cigna Group (The) | | |
5.25%, due 2/15/34 | 195,000 | 187,921 |
CVS Health Corp. | | |
3.75%, due 4/1/30 | 170,000 | 154,209 |
5.30%, due 6/1/33 | 65,000 | 62,842 |
Merck & Co., Inc. | | |
2.15%, due 12/10/31 | 415,000 | 336,523 |
Pfizer Investment Enterprises Pte. Ltd. | | |
4.75%, due 5/19/33 | 210,000 | 200,044 |
| | 1,543,597 |
Pipelines 0.4% |
Columbia Pipelines Operating Co. LLC | | |
5.927%, due 8/15/30 (a) | 270,000 | 270,461 |
| Principal Amount | Value |
|
Pipelines (continued) |
Energy Transfer LP | | |
3.75%, due 5/15/30 | $ 185,000 | $ 166,892 |
5.75%, due 2/15/33 | 205,000 | 203,361 |
Enterprise Products Operating LLC | | |
4.85%, due 1/31/34 | 415,000 | 395,639 |
MPLX LP | | |
4.95%, due 9/1/32 | 178,000 | 167,886 |
Targa Resources Partners LP | | |
5.50%, due 3/1/30 | 755,000 | 736,540 |
| | 1,940,779 |
Real Estate Investment Trusts 0.4% |
American Tower Corp. | | |
2.10%, due 6/15/30 | 660,000 | 538,541 |
CubeSmart LP | | |
2.25%, due 12/15/28 | 340,000 | 293,442 |
Simon Property Group LP | | |
1.75%, due 2/1/28 | 425,000 | 372,917 |
Sun Communities Operating LP | | |
2.70%, due 7/15/31 | 435,000 | 350,779 |
| | 1,555,679 |
Retail 0.3% |
AutoZone, Inc. | | |
5.20%, due 8/1/33 | 415,000 | 402,760 |
Home Depot, Inc. (The) | | |
1.875%, due 9/15/31 | 385,000 | 306,050 |
Lowe's Cos., Inc. | | |
4.80%, due 4/1/26 | 310,000 | 306,456 |
5.00%, due 4/15/33 | 205,000 | 197,984 |
5.15%, due 7/1/33 | 105,000 | 102,510 |
| | 1,315,760 |
Semiconductors 0.4% |
Broadcom, Inc. | | |
2.45%, due 2/15/31 (a) | 385,000 | 316,417 |
Intel Corp. | | |
5.125%, due 2/10/30 | 290,000 | 286,989 |
5.20%, due 2/10/33 | 215,000 | 209,770 |
Micron Technology, Inc. | | |
5.375%, due 4/15/28 | 380,000 | 378,442 |
5.875%, due 9/15/33 | 215,000 | 215,953 |
QUALCOMM, Inc. | | |
2.15%, due 5/20/30 | 490,000 | 414,930 |
| | 1,822,501 |
Software 0.3% |
Fiserv, Inc. | | |
5.35%, due 3/15/31 | 505,000 | 497,797 |
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 (continued) |
Microsoft Corp. | | |
2.525%, due 6/1/50 | $ 220,000 | $ 134,635 |
Oracle Corp. | | |
4.50%, due 5/6/28 | 220,000 | 213,121 |
4.90%, due 2/6/33 | 280,000 | 265,074 |
6.15%, due 11/9/29 | 170,000 | 175,319 |
| | 1,285,946 |
Telecommunications 0.6% |
AT&T, Inc. | | |
2.25%, due 2/1/32 | 415,000 | 327,768 |
4.35%, due 3/1/29 | 955,000 | 911,213 |
T-Mobile USA, Inc. | | |
2.625%, due 4/15/26 | 675,000 | 637,735 |
2.625%, due 2/15/29 | 135,000 | 118,632 |
5.75%, due 1/15/34 | 405,000 | 407,879 |
Verizon Communications, Inc. | | |
2.10%, due 3/22/28 | 340,000 | 301,051 |
3.376%, due 2/15/25 | 8,000 | 7,858 |
| | 2,712,136 |
Transportation 0.1% |
Norfolk Southern Corp. | | |
3.00%, due 3/15/32 | 250,000 | 211,153 |
Union Pacific Corp. | | |
2.80%, due 2/14/32 | 245,000 | 206,636 |
United Parcel Service, Inc. | | |
4.45%, due 4/1/30 | 220,000 | 212,312 |
| | 630,101 |
Trucking & Leasing 0.1% |
Penske Truck Leasing Co. LP (a) | | |
5.75%, due 5/24/26 | 230,000 | 230,070 |
6.05%, due 8/1/28 | 165,000 | 166,777 |
| | 396,847 |
Total Corporate Bonds (Cost $58,636,367) | | 57,750,039 |
Foreign Government Bond 0.1% |
France 0.1% |
Electricite de France SA | | |
5.65%, due 4/22/29 (a) | 370,000 | 368,954 |
Total Foreign Government Bond (Cost $369,477) | | 368,954 |
| Principal Amount | Value |
Mortgage-Backed Securities 0.3% |
Commercial Mortgage Loans (Collateralized Mortgage Obligation) 0.2% |
Citigroup Commercial Mortgage Trust | | |
Series 2020-GC46, Class A5 | | |
2.717%, due 2/15/53 | $ 1,000,000 | $ 852,608 |
Whole Loan (Collateralized Mortgage Obligation) 0.1% |
BRAVO Residential Funding Trust | | |
Series 2023-NQM8, Class A1 | | |
6.394%, due 10/25/63 (a)(d) | 479,562 | 478,681 |
Total Mortgage-Backed Securities (Cost $1,506,962) | | 1,331,289 |
U.S. Government & Federal Agencies 18.5% |
United States Treasury Bonds 0.0% ‡ |
U.S. Treasury Bonds | | |
4.375%, due 8/15/43 | 330,000 | 308,189 |
United States Treasury Notes 18.5% |
U.S. Treasury Notes | | |
2.50%, due 5/15/24 | 7,050,000 | 7,042,004 |
2.875%, due 5/31/25 | 1,300,000 | 1,267,754 |
4.00%, due 2/15/34 | 3,960,000 | 3,749,625 |
4.50%, due 4/15/27 | 19,900,000 | 19,697,891 |
4.625%, due 4/30/29 | 9,050,000 | 9,015,355 |
4.625%, due 4/30/31 | 13,650,000 | 13,586,016 |
4.875%, due 4/30/26 | 28,000,000 | 27,915,781 |
| | 82,274,426 |
Total U.S. Government & Federal Agencies (Cost $82,729,874) | | 82,582,615 |
Total Long-Term Bonds (Cost $146,593,092) | | 145,357,020 |
|
| Shares | |
|
Common Stocks 56.2% |
Aerospace & Defense 1.8% |
General Dynamics Corp. | 14,134 | 4,057,730 |
L3Harris Technologies, Inc. | 18,760 | 4,015,578 |
| | 8,073,308 |
Air Freight & Logistics 1.1% |
United Parcel Service, Inc., Class B | 34,087 | 5,027,151 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Automobile Components 0.8% |
Gentex Corp. | 108,676 | $ 3,727,587 |
Banks 4.3% |
JPMorgan Chase & Co. | 53,770 | 10,309,860 |
M&T Bank Corp. | 34,649 | 5,002,969 |
PNC Financial Services Group, Inc. (The) | 26,082 | 3,997,327 |
| | 19,310,156 |
Beverages 1.5% |
Keurig Dr Pepper, Inc. | 110,246 | 3,715,290 |
Pernod Ricard SA, Sponsored ADR (France) | 96,829 | 2,932,951 |
| | 6,648,241 |
Biotechnology 0.8% |
Gilead Sciences, Inc. | 56,871 | 3,707,989 |
Building Products 1.5% |
Fortune Brands Innovations, Inc. | 34,609 | 2,529,918 |
Johnson Controls International plc | 65,345 | 4,251,999 |
| | 6,781,917 |
Capital Markets 5.0% |
Ares Management Corp. | 27,856 | 3,707,355 |
Intercontinental Exchange, Inc. | 25,605 | 3,296,900 |
KKR & Co., Inc. | 32,827 | 3,055,209 |
LPL Financial Holdings, Inc. | 10,375 | 2,792,224 |
Morgan Stanley | 42,876 | 3,894,856 |
Nasdaq, Inc. | 21,479 | 1,285,518 |
Raymond James Financial, Inc. | 35,572 | 4,339,784 |
| | 22,371,846 |
Chemicals 0.6% |
Axalta Coating Systems Ltd. (e) | 85,405 | 2,685,133 |
Communications Equipment 2.1% |
Cisco Systems, Inc. | 130,566 | 6,133,991 |
F5, Inc. (e) | 20,372 | 3,367,695 |
| | 9,501,686 |
Distributors 0.7% |
LKQ Corp. | 72,826 | 3,140,985 |
Diversified Consumer Services 0.8% |
H&R Block, Inc. | 74,024 | 3,496,154 |
| Shares | Value |
|
Electrical Equipment 0.9% |
Emerson Electric Co. | 36,764 | $ 3,962,424 |
Electronic Equipment, Instruments & Components 0.9% |
Corning, Inc. | 123,343 | 4,117,189 |
Entertainment 0.8% |
Electronic Arts, Inc. | 26,485 | 3,358,828 |
Financial Services 0.6% |
Global Payments, Inc. | 22,310 | 2,738,999 |
Food Products 0.6% |
Archer-Daniels-Midland Co. | 46,343 | 2,718,480 |
Gas Utilities 0.8% |
Atmos Energy Corp. | 28,967 | 3,415,209 |
Ground Transportation 0.6% |
Knight-Swift Transportation Holdings, Inc. | 52,083 | 2,407,797 |
Health Care Equipment & Supplies 0.9% |
Boston Scientific Corp. (e) | 52,783 | 3,793,514 |
Health Care Providers & Services 3.4% |
Centene Corp. (e) | 59,365 | 4,337,207 |
Elevance Health, Inc. | 10,558 | 5,580,747 |
UnitedHealth Group, Inc. | 10,644 | 5,148,503 |
| | 15,066,457 |
Hotel & Resort REITs 0.6% |
Host Hotels & Resorts, Inc. | 139,524 | 2,632,818 |
Hotels, Restaurants & Leisure 0.6% |
Wyndham Hotels & Resorts, Inc. | 37,747 | 2,774,782 |
Household Durables 0.7% |
Lennar Corp., Class A | 19,375 | 2,937,638 |
Insurance 2.8% |
American International Group, Inc. | 65,588 | 4,939,432 |
Everest Group Ltd. | 7,835 | 2,870,823 |
MetLife, Inc. | 66,579 | 4,732,435 |
| | 12,542,690 |
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) |
Interactive Media & Services 0.6% |
Alphabet, Inc., Class C (e) | 15,993 | $ 2,633,088 |
IT Services 0.7% |
Amdocs Ltd. | 38,153 | 3,204,470 |
Machinery 0.6% |
Middleby Corp. (The) (e) | 20,521 | 2,851,803 |
Media 0.8% |
Omnicom Group, Inc. | 37,846 | 3,513,623 |
Multi-Utilities 0.9% |
Sempra | 54,184 | 3,881,200 |
Oil, Gas & Consumable Fuels 5.4% |
Antero Resources Corp. (e) | 83,204 | 2,829,768 |
ConocoPhillips | 37,025 | 4,651,080 |
Coterra Energy, Inc. | 105,698 | 2,891,897 |
EOG Resources, Inc. | 28,629 | 3,782,750 |
Hess Corp. | 17,665 | 2,782,061 |
Phillips 66 | 28,332 | 4,057,426 |
Targa Resources Corp. | 26,301 | 2,999,892 |
| | 23,994,874 |
Personal Care Products 1.4% |
Kenvue, Inc. | 156,013 | 2,936,165 |
Unilever plc, Sponsored ADR (United Kingdom) | 63,563 | 3,295,741 |
| | 6,231,906 |
Pharmaceuticals 5.9% |
AstraZeneca plc, Sponsored ADR (United Kingdom) | 48,923 | 3,712,277 |
Johnson & Johnson | 48,437 | 7,003,506 |
Merck & Co., Inc. | 58,586 | 7,570,483 |
Pfizer, Inc. | 206,900 | 5,300,778 |
Roche Holding AG | 10,672 | 2,553,162 |
| | 26,140,206 |
Real Estate Management & Development 0.7% |
CBRE Group, Inc., Class A (e) | 35,061 | 3,046,450 |
Semiconductors & Semiconductor Equipment 2.4% |
Analog Devices, Inc. | 18,337 | 3,678,586 |
NXP Semiconductors NV (China) | 16,286 | 4,172,310 |
| Shares | | Value |
|
Semiconductors & Semiconductor Equipment (continued) |
QUALCOMM, Inc. | 17,042 | | $ 2,826,416 |
| | | 10,677,312 |
Specialized REITs 1.6% |
Crown Castle, Inc. | 38,171 | | 3,579,677 |
Gaming and Leisure Properties, Inc. | 78,847 | | 3,369,132 |
| | | 6,948,809 |
Total Common Stocks (Cost $211,164,779) | | | 250,062,719 |
Exchange-Traded Funds 9.1% |
iShares Intermediate Government/Credit Bond ETF | 80,097 | | 8,191,520 |
iShares Russell 1000 Value ETF | 92,544 | | 15,871,296 |
Vanguard Intermediate-Term Treasury ETF (f) | 121,600 | | 6,954,304 |
Vanguard Russell 1000 Value (f) | 123,521 | | 9,299,896 |
Total Exchange-Traded Funds (Cost $38,026,503) | | | 40,317,016 |
Short-Term Investments 1.4% |
Affiliated Investment Company 0.7% |
MainStay U.S. Government Liquidity Fund, 5.242% (g) | 3,033,470 | | 3,033,470 |
Unaffiliated Investment Company 0.7% |
Invesco Government & Agency Portfolio, 5.309% (g)(h) | 3,077,100 | | 3,077,100 |
Total Short-Term Investments (Cost $6,110,570) | | | 6,110,570 |
Total Investments (Cost $401,894,944) | 99.3% | | 441,847,325 |
Other Assets, Less Liabilities | 0.7 | | 3,314,713 |
Net Assets | 100.0% | | $ 445,162,038 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
‡ | 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(a)(2) of the Securities Act of 1933, as amended. |
(b) | Floating rate—Rate shown was the rate in effect as of April 30, 2024. |
(c) | Fixed to floating rate—Rate shown was the rate in effect as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
(d) | Step coupon—Rate shown was the rate in effect as of April 30, 2024. |
(e) | Non-income producing security. |
(f) | All or a portion of this security was held on loan. As of April 30, 2024, the aggregate market value of securities on loan was $5,741,221; the total market value of collateral held by the Fund was $5,904,807. The market value of the collateral held included non-cash collateral in the form of U.S. Treasury securities with a value of $2,827,707. The Fund received cash collateral with a value of $3,077,100. (See Note 2(I)) |
(g) | Current yield as of April 30, 2024. |
(h) | Represents a security purchased with cash collateral received for securities on loan. |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 2,083 | $ 29,713 | $ (28,763) | $ — | $ — | $ 3,033 | $ 52 | $ — | 3,033 |
Futures Contracts
As of April 30, 2024, the Fund held the following futures contracts1:
Type | Number of Contracts | Expiration Date | Value at Trade Date | Current Notional Amount | Unrealized Appreciation (Depreciation)2 |
Long Contracts | | | | | |
U.S. Treasury 5 Year Notes | 120 | June 2024 | $ 12,763,506 | $ 12,569,063 | $ (194,443) |
U.S. Treasury 10 Year Notes | 11 | June 2024 | 1,215,020 | 1,181,812 | (33,208) |
U.S. Treasury 10 Year Ultra Bonds | 1 | June 2024 | 114,611 | 110,219 | (4,392) |
Total Long Contracts | | | | | (232,043) |
Short Contracts | | | | | |
U.S. Treasury 2 Year Notes | (13) | June 2024 | (2,641,009) | (2,634,531) | 6,478 |
U.S. Treasury Long Bonds | (3) | June 2024 | (355,573) | (341,438) | 14,135 |
U.S. Treasury Ultra Bonds | (2) | June 2024 | (250,477) | (239,125) | 11,352 |
Total Short Contracts | | | | | 31,965 |
Net Unrealized Depreciation | | | | | $ (200,078) |
1. | As of April 30, 2024, cash in the amount of $179,404 was on deposit with a broker or futures commission merchant for futures transactions. |
2. | Represents the difference between the value of the contracts at the time they were opened and the value as of April 30, 2024. |
Abbreviation(s): |
ADR—American Depositary Receipt |
CLO—Collateralized Loan Obligation |
ETF—Exchange-Traded Fund |
REIT—Real Estate Investment Trust |
SOFR—Secured Overnight Financing Rate |
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, 2024, for valuing the Fund’s assets and liabilities:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Long-Term Bonds | | | | | | | |
Asset-Backed Securities | $ — | | $ 3,324,123 | | $ — | | $ 3,324,123 |
Corporate Bonds | — | | 57,750,039 | | — | | 57,750,039 |
Foreign Government Bond | — | | 368,954 | | — | | 368,954 |
Mortgage-Backed Securities | — | | 1,331,289 | | — | | 1,331,289 |
U.S. Government & Federal Agencies | — | | 82,582,615 | | — | | 82,582,615 |
Total Long-Term Bonds | — | | 145,357,020 | | — | | 145,357,020 |
Common Stocks | | | | | | | |
Pharmaceuticals | 23,587,044 | | 2,553,162 | | — | | 26,140,206 |
All Other Industries | 223,922,513 | | — | | — | | 223,922,513 |
Total Common Stocks | 247,509,557 | | 2,553,162 | | — | | 250,062,719 |
Exchange-Traded Funds | 40,317,016 | | — | | — | | 40,317,016 |
Short-Term Investments | | | | | | | |
Affiliated Investment Company | 3,033,470 | | — | | — | | 3,033,470 |
Unaffiliated Investment Company | 3,077,100 | | — | | — | | 3,077,100 |
Total Short-Term Investments | 6,110,570 | | — | | — | | 6,110,570 |
Total Investments in Securities | 293,937,143 | | 147,910,182 | | — | | 441,847,325 |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | 31,965 | | — | | — | | 31,965 |
Total Investments in Securities and Other Financial Instruments | $ 293,969,108 | | $ 147,910,182 | | $ — | | $ 441,879,290 |
Liability Valuation Inputs | | | | | | | |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | $ (232,043) | | $ — | | $ — | | $ (232,043) |
(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 (depreciation) as shown on the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $398,861,474) including securities on loan of $5,741,221 | $438,813,855 |
Investment in affiliated investment companies, at value (identified cost $3,033,470) | 3,033,470 |
Cash | 6,583,496 |
Cash collateral on deposit at broker for futures contracts | 179,404 |
Receivables: | |
Investment securities sold | 3,275,803 |
Dividends and interest | 1,054,241 |
Fund shares sold | 107,046 |
Securities lending | 1,758 |
Other assets | 73,752 |
Total assets | 453,122,825 |
Liabilities |
Cash collateral received for securities on loan | 3,077,100 |
Payables: | |
Investment securities purchased | 3,999,872 |
Fund shares redeemed | 335,930 |
Manager (See Note 3) | 240,412 |
Transfer agent (See Note 3) | 101,844 |
NYLIFE Distributors (See Note 3) | 88,610 |
Variation margin on futures contracts | 50,061 |
Professional fees | 35,986 |
Custodian | 18,425 |
Shareholder communication | 10,436 |
Trustees | 142 |
Accrued expenses | 1,969 |
Total liabilities | 7,960,787 |
Net assets | $445,162,038 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 15,013 |
Additional paid-in-capital | 402,600,013 |
| 402,615,026 |
Total distributable earnings (loss) | 42,547,012 |
Net assets | $445,162,038 |
Class A | |
Net assets applicable to outstanding shares | $344,036,978 |
Shares of beneficial interest outstanding | 11,603,661 |
Net asset value per share outstanding | $ 29.65 |
Maximum sales charge (3.00% of offering price) | 0.92 |
Maximum offering price per share outstanding | $ 30.57 |
Investor Class | |
Net assets applicable to outstanding shares | $ 36,741,058 |
Shares of beneficial interest outstanding | 1,239,245 |
Net asset value per share outstanding | $ 29.65 |
Maximum sales charge (2.50% of offering price) | 0.76 |
Maximum offering price per share outstanding | $ 30.41 |
Class B | |
Net assets applicable to outstanding shares | $ 1,776,100 |
Shares of beneficial interest outstanding | 60,728 |
Net asset value and offering price per share outstanding | $ 29.25 |
Class C | |
Net assets applicable to outstanding shares | $ 9,574,414 |
Shares of beneficial interest outstanding | 327,518 |
Net asset value and offering price per share outstanding | $ 29.23 |
Class I | |
Net assets applicable to outstanding shares | $ 52,976,487 |
Shares of beneficial interest outstanding | 1,780,214 |
Net asset value and offering price per share outstanding | $ 29.76 |
Class R6 | |
Net assets applicable to outstanding shares | $ 57,001 |
Shares of beneficial interest outstanding | 1,913 |
Net asset value and offering price per share outstanding(a) | $ 29.79 |
(a) | The difference between the calculated and stated NAV was caused by rounding. |
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, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $27,049) | $ 3,833,007 |
Interest | 3,680,981 |
Dividends-affiliated | 51,957 |
Securities lending, net | 9,148 |
Total income | 7,575,093 |
Expenses | |
Manager (See Note 3) | 1,466,242 |
Distribution/Service—Class A (See Note 3) | 430,324 |
Distribution/Service—Investor Class (See Note 3) | 47,363 |
Distribution/Service—Class B (See Note 3) | 12,361 |
Distribution/Service—Class C (See Note 3) | 53,562 |
Distribution/Service—Class R2 (See Note 3)(a) | 260 |
Distribution/Service—Class R3 (See Note 3)(a) | 2,632 |
Transfer agent (See Note 3) | 309,269 |
Registration | 53,575 |
Professional fees | 49,149 |
Custodian | 18,709 |
Shareholder communication | 12,413 |
Trustees | 5,700 |
Shareholder service (See Note 3) | 656 |
Miscellaneous | 14,946 |
Total expenses before waiver/reimbursement | 2,477,161 |
Expense waiver/reimbursement from Manager (See Note 3) | (28,110) |
Net expenses | 2,449,051 |
Net investment income (loss) | 5,126,042 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | 5,606,212 |
Futures transactions | (251,889) |
Foreign currency transactions | 1,343 |
Net realized gain (loss) | 5,355,666 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 31,043,346 |
Futures contracts | (34,798) |
Translation of other assets and liabilities in foreign currencies | (1,409) |
Net change in unrealized appreciation (depreciation) | 31,007,139 |
Net realized and unrealized gain (loss) | 36,362,805 |
Net increase (decrease) in net assets resulting from operations | $41,488,847 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 5,126,042 | $ 9,538,218 |
Net realized gain (loss) | 5,355,666 | (485,097) |
Net change in unrealized appreciation (depreciation) | 31,007,139 | (12,348,597) |
Net increase (decrease) in net assets resulting from operations | 41,488,847 | (3,295,476) |
Distributions to shareholders: | | |
Class A | (3,936,313) | (7,916,075) |
Investor Class | (375,977) | (791,702) |
Class B | (13,457) | (50,948) |
Class C | (64,861) | (167,807) |
Class I | (680,267) | (1,495,744) |
Class R1(a) | (600) | (4,769) |
Class R2(a) | (1,468) | (12,812) |
Class R3(a) | (4,982) | (38,396) |
Class R6 | (734) | (1,952) |
Total distributions to shareholders | (5,078,659) | (10,480,205) |
Capital share transactions: | | |
Net proceeds from sales of shares | 20,062,015 | 61,966,081 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 4,995,375 | 10,314,554 |
Cost of shares redeemed | (51,422,791) | (92,500,140) |
Increase (decrease) in net assets derived from capital share transactions | (26,365,401) | (20,219,505) |
Net increase (decrease) in net assets | 10,044,787 | (33,995,186) |
Net Assets |
Beginning of period | 435,117,251 | 469,112,437 |
End of period | $445,162,038 | $435,117,251 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
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
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 27.34 | | $ 28.21 | | $ 37.09 | | $ 29.72 | | $ 30.98 | | $ 31.49 |
Net investment income (loss) (a) | 0.34 | | 0.59 | | 0.36 | | 0.27 | | 0.36 | | 0.44 |
Net realized and unrealized gain (loss) | 2.31 | | (0.82) | | (2.03) | | 7.70 | | (0.54) | | 1.58 |
Total from investment operations | 2.65 | | (0.23) | | (1.67) | | 7.97 | | (0.18) | | 2.02 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.34) | | (0.61) | | (0.33) | | (0.28) | | (0.41) | | (0.46) |
From net realized gain on investments | — | | (0.03) | | (6.88) | | (0.32) | | (0.67) | | (2.07) |
Total distributions | (0.34) | | (0.64) | | (7.21) | | (0.60) | | (1.08) | | (2.53) |
Net asset value at end of period | $ 29.65 | | $ 27.34 | | $ 28.21 | | $ 37.09 | | $ 29.72 | | $ 30.98 |
Total investment return (b) | 9.67% | | (0.86)% | | (5.35)% | | 27.03% | | (0.53)% | | 7.07% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.29%†† | | 2.06% | | 1.22% | | 0.78% | | 1.21% | | 1.47% |
Net expenses (c) | 1.06%†† | | 1.06% | | 1.06% | | 1.08% | | 1.13% | | 1.12% |
Portfolio turnover rate | 123% | | 313% | | 290% | | 182% | | 217% | | 194% |
Net assets at end of period (in 000’s) | $ 344,037 | | $ 328,665 | | $ 345,376 | | $ 343,224 | | $ 252,574 | | $ 279,636 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 27.34 | | $ 28.20 | | $ 37.10 | | $ 29.75 | | $ 31.01 | | $ 31.51 |
Net investment income (loss) (a) | 0.30 | | 0.51 | | 0.28 | | 0.19 | | 0.29 | | 0.38 |
Net realized and unrealized gain (loss) | 2.31 | | (0.80) | | (2.03) | | 7.69 | | (0.55) | | 1.58 |
Total from investment operations | 2.61 | | (0.29) | | (1.75) | | 7.88 | | (0.26) | | 1.96 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.30) | | (0.54) | | (0.27) | | (0.21) | | (0.33) | | (0.39) |
From net realized gain on investments | — | | (0.03) | | (6.88) | | (0.32) | | (0.67) | | (2.07) |
Total distributions | (0.30) | | (0.57) | | (7.15) | | (0.53) | | (1.00) | | (2.46) |
Net asset value at end of period | $ 29.65 | | $ 27.34 | | $ 28.20 | | $ 37.10 | | $ 29.75 | | $ 31.01 |
Total investment return (b) | 9.53% | | (1.08)% | | (5.62)% | | 26.68% | | (0.75)% | | 6.79% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.05%†† | | 1.81% | | 0.95% | | 0.54% | | 0.97% | | 1.26% |
Net expenses (c) | 1.32%†† | | 1.31% | | 1.32% | | 1.35% | | 1.38% | | 1.33% |
Expenses (before waiver/reimbursement) (c) | 1.43%†† | | 1.41% | | 1.34% | | 1.37% | | 1.40% | | 1.35% |
Portfolio turnover rate | 123% | | 313% | | 290% | | 182% | | 217% | | 194% |
Net assets at end of period (in 000's) | $ 36,741 | | $ 36,675 | | $ 40,341 | | $ 46,706 | | $ 47,358 | | $ 53,006 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
21
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class B | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 26.97 | | $ 27.81 | | $ 36.72 | | $ 29.56 | | $ 30.82 | | $ 31.35 |
Net investment income (loss) (a) | 0.19 | | 0.30 | | 0.05 | | (0.07) | | 0.07 | | 0.16 |
Net realized and unrealized gain (loss) | 2.28 | | (0.80) | | (1.99) | | 7.63 | | (0.54) | | 1.54 |
Total from investment operations | 2.47 | | (0.50) | | (1.94) | | 7.56 | | (0.47) | | 1.70 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.19) | | (0.31) | | (0.09) | | (0.08) | | (0.12) | | (0.16) |
From net realized gain on investments | — | | (0.03) | | (6.88) | | (0.32) | | (0.67) | | (2.07) |
Total distributions | (0.19) | | (0.34) | | (6.97) | | (0.40) | | (0.79) | | (2.23) |
Net asset value at end of period | $ 29.25 | | $ 26.97 | | $ 27.81 | | $ 36.72 | | $ 29.56 | | $ 30.82 |
Total investment return (b) | 9.13% | | (1.83)% | | (6.30)% | | 25.74% | | (1.51)% | | 6.00% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.34%†† | | 1.06% | | 0.18% | | (0.21)% | | 0.23% | | 0.54% |
Net expenses (c) | 2.07%†† | | 2.07% | | 2.07% | | 2.10% | | 2.13% | | 2.08% |
Expenses (before waiver/reimbursement) (c) | 2.17%†† | | 2.16% | | 2.09% | | 2.12% | | 2.15% | | 2.10% |
Portfolio turnover rate | 123% | | 313% | | 290% | | 182% | | 217% | | 194% |
Net assets at end of period (in 000’s) | $ 1,776 | | $ 2,999 | | $ 5,798 | | $ 9,645 | | $ 10,671 | | $ 15,049 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 26.95 | | $ 27.80 | | $ 36.71 | | $ 29.55 | | $ 30.81 | | $ 31.33 |
Net investment income (loss) (a) | 0.19 | | 0.30 | | 0.06 | | (0.07) | | 0.07 | | 0.18 |
Net realized and unrealized gain (loss) | 2.28 | | (0.81) | | (2.00) | | 7.63 | | (0.54) | | 1.53 |
Total from investment operations | 2.47 | | (0.51) | | (1.94) | | 7.56 | | (0.47) | | 1.71 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.19) | | (0.31) | | (0.09) | | (0.08) | | (0.12) | | (0.16) |
From net realized gain on investments | — | | (0.03) | | (6.88) | | (0.32) | | (0.67) | | (2.07) |
Total distributions | (0.19) | | (0.34) | | (6.97) | | (0.40) | | (0.79) | | (2.23) |
Net asset value at end of period | $ 29.23 | | $ 26.95 | | $ 27.80 | | $ 36.71 | | $ 29.55 | | $ 30.81 |
Total investment return (b) | 9.13% | | (1.87)% | | (6.30)% | | 25.75% | | (1.51)% | | 6.03% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.31%†† | | 1.06% | | 0.19% | | (0.20)% | | 0.23% | | 0.59% |
Net expenses (c) | 2.07%†† | | 2.07% | | 2.07% | | 2.10% | | 2.13% | | 2.08% |
Expenses (before waiver/reimbursement) (c) | 2.18%†† | | 2.16% | | 2.09% | | 2.12% | | 2.15% | | 2.10% |
Portfolio turnover rate | 123% | | 313% | | 290% | | 182% | | 217% | | 194% |
Net assets at end of period (in 000’s) | $ 9,574 | | $ 11,121 | | $ 17,020 | | $ 26,050 | | $ 30,769 | | $ 45,437 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 27.44 | | $ 28.31 | | $ 37.19 | | $ 29.80 | | $ 31.06 | | $ 31.56 |
Net investment income (loss) (a) | 0.38 | | 0.66 | | 0.44 | | 0.37 | | 0.44 | | 0.53 |
Net realized and unrealized gain (loss) | 2.31 | | (0.81) | | (2.03) | | 7.70 | | (0.55) | | 1.57 |
Total from investment operations | 2.69 | | (0.15) | | (1.59) | | 8.07 | | (0.11) | | 2.10 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.37) | | (0.69) | | (0.41) | | (0.36) | | (0.48) | | (0.53) |
From net realized gain on investments | — | | (0.03) | | (6.88) | | (0.32) | | (0.67) | | (2.07) |
Total distributions | (0.37) | | (0.72) | | (7.29) | | (0.68) | | (1.15) | | (2.60) |
Net asset value at end of period | $ 29.76 | | $ 27.44 | | $ 28.31 | | $ 37.19 | | $ 29.80 | | $ 31.06 |
Total investment return (b) | 9.80% | | (0.61)% | | (5.09)% | | 27.32% | | (0.27)% | | 7.32% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.55%†† | | 2.30% | | 1.47% | | 1.08% | | 1.47% | | 1.75% |
Net expenses (c) | 0.81%†† | | 0.81% | | 0.81% | | 0.84% | | 0.88% | | 0.87% |
Portfolio turnover rate | 123% | | 313% | | 290% | | 182% | | 217% | | 194% |
Net assets at end of period (in 000’s) | $ 52,976 | | $ 53,113 | | $ 57,772 | | $ 72,481 | | $ 152,036 | | $ 177,076 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 27.47 | | $ 28.35 | | $ 37.23 | | $ 29.83 | | $ 31.06 | | $ 31.57 |
Net investment income (loss) (a) | 0.39 | | 0.69 | | 0.46 | | 0.39 | | 0.61 | | 0.53 |
Net realized and unrealized gain (loss) | 2.32 | | (0.83) | | (2.03) | | 7.73 | | (0.69) | | 1.59 |
Total from investment operations | 2.71 | | (0.14) | | (1.57) | | 8.12 | | (0.08) | | 2.12 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.39) | | (0.71) | | (0.43) | | (0.40) | | (0.48) | | (0.56) |
From net realized gain on investments | — | | (0.03) | | (6.88) | | (0.32) | | (0.67) | | (2.07) |
Total distributions | (0.39) | | (0.74) | | (7.31) | | (0.72) | | (1.15) | | (2.63) |
Net asset value at end of period | $ 29.79 | | $ 27.47 | | $ 28.35 | | $ 37.23 | | $ 29.83 | | $ 31.06 |
Total investment return (b) | 9.84% | | (0.51)% | | (5.04)% | | 27.45% | | (0.17)% | | 7.40% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.63%†† | | 2.40% | | 1.55% | | 1.12% | | 1.94% | | 1.75% |
Net expenses (c) | 0.73%†† | | 0.72% | | 0.73% | | 0.74% | | 0.78% | | 0.77% |
Portfolio turnover rate | 123% | | 313% | | 290% | | 182% | | 217% | | 194% |
Net assets at end of period (in 000’s) | $ 57 | | $ 52 | | $ 53 | | $ 61 | | $ 49 | | $ 14,697 |
* | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Balanced Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | January 2, 2004 |
Investor Class | February 28, 2008 |
Class B | January 2, 2004 |
Class C | December 30, 2002 |
Class I | May 1, 1989 |
Class R6 | December 15, 2017 |
Effective at the close of business on February 23, 2024, Class R1, R2 and R3 shares were liquidated.
Class B shares of the MainStay Group of Funds are closed to all new purchases as well as additional investments by existing Class B shareholders. Existing Class B shareholders may continue to reinvest dividends and capital gains distributions, as well as exchange their Class B shares for Class B shares of other funds in the MainStay Group of Funds as permitted by the current exchange privileges. Class B shareholders continue to be subject to any applicable contingent deferred sales charge ("CDSC") at the time of redemption. All other features of the Class B shares, including but not limited to the fees and expenses applicable to Class B shares, remain unchanged. Unless redeemed, Class B shareholders will remain in Class B shares of their respective fund until the Class B shares are converted to Class A or Investor Class shares pursuant to the applicable conversion schedule.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a CDSC of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. When Class B shares were offered, they were offered at NAV without an initial sales charge, although a CDSC that declines depending on the number of years a shareholder held its Class B shares may be imposed on certain redemptions of such shares made within six years of the date of purchase of such shares. Class I and Class R6 shares are offered at NAV without a sales charge. Depending upon eligibility, Class B shares convert to either Class A or Investor Class shares at the end of the
calendar quarter eight years after the date they were purchased. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter ten years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class B and Class C shares are subject to higher distribution and/or service fees than Class A, Investor Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fees.
The Fund's investment objective is to seek total return.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which
market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal
Notes to Financial Statements (Unaudited) (continued)
conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Exchange-traded funds (“ETFs”) are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. These securities are generally categorized as Level 1 in the hierarchy.
Debt securities (other than convertible and municipal bonds) are valued at the evaluated bid prices (evaluated mean prices in the case of convertible and municipal bonds) supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisors. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent’s good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants’ assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisors, to be representative of market values at the regular close of trading of the Exchange on each valuation date. Debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Debt securities, including corporate bonds, U.S. government and federal agency bonds, municipal bonds, foreign bonds, convertible bonds, asset-backed securities and mortgage-backed securities are generally categorized as Level 2 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of
such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 from net investment income, if any, at least quarterly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source, and interest income is accrued as earned
using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital. Discounts and premiums on securities purchased for the Fund are accreted and amortized, respectively, on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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.
Additionally, the Fund may invest in ETFs and mutual funds, which are subject to management fees and other fees that may cause the costs of investing in ETFs and mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of ETFs and mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 risks such as market price risk, leverage risk, liquidity risk, counterparty risk, operational risk, legal risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation 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 or futures commission merchant 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. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. 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 the entire margin owed to the Fund, potentially resulting in a loss. The Fund may invest in futures contracts to seek enhanced returns or to reduce the risk of loss by hedging certain of its holdings. The Fund's investment in futures contracts and other derivatives may increase the volatility of the Fund's NAVs and may result in a loss to the Fund.
(H) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest
Notes to Financial Statements (Unaudited) (continued)
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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(J) Debt Securities Risk. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by, among other things, economic or political developments in a specific country, industry or region. Debt securities are also subject to the risks associated with changes in interest rates.
Investments in the Fund are not guaranteed, even though some of the Fund’s underlying investments are guaranteed by the U.S. government or its agencies or instrumentalities. The principal risk of mortgage-related and asset-backed securities is that the underlying debt may be prepaid ahead of schedule, if interest rates fall, thereby reducing the value of the Fund’s investment. If interest rates rise, less of the debt may be prepaid and the Fund may lose money because the Fund may be unable to invest in higher yielding assets. The Fund is subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner.
The Fund may invest in foreign debt securities, which carry certain risks that are in addition to the usual risks inherent in domestic instruments.
Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund’s investments in such securities less liquid or more difficult to value. 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, among other things, 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 that may 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. The Manager believes 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.
(L) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures related to 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.
The Fund entered into futures contracts to hedge against anticipated changes in interest rates that might otherwise have an adverse effect upon the value of the Fund’s securities as well as to help manage the duration and yield curve positioning of the portfolio.
Fair value of derivative instruments as of April 30, 2024:
Asset Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized appreciation on futures contracts (a) | $31,965 | $31,965 |
Total Fair Value | $31,965 | $31,965 |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Liability Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized depreciation on futures contracts (a) | $(232,043) | $(232,043) |
Total Fair Value | $(232,043) | $(232,043) |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is 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, 2024:
Net Realized Gain (Loss) from: | Interest Rate Contracts Risk | Total |
Futures Transactions | $(251,889) | $(251,889) |
Total Net Realized Gain (Loss) | $(251,889) | $(251,889) |
Net Change in Unrealized Appreciation (Depreciation) | Interest Rate Contracts Risk | Total |
Futures Contracts | $(34,798) | $(34,798) |
Total Net Change in Unrealized Appreciation (Depreciation) | $(34,798) | $(34,798) |
Average Notional Amount | Total |
Futures Contracts Long | $14,444,488 |
Futures Contracts Short | $ (2,211,620) |
Note 3–Fees and Related Party Transactions
(A) Manager and Subadvisors. 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 Fund’s Manager, pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. The Fund’s subadvisor changed effective March 5, 2021 due to the removal of MacKay Shields LLC ("MacKay Shields") as a subadvisor to the equity portion of the Fund and the appointment of Wellington Management Company LLP (“Wellington” or the “Subadvisor”) as a subadvisor to the equity portion of the Fund. Wellington, a registered investment adviser, is responsible for the day-to-day portfolio
management of the equity portion of the Fund, pursuant to the terms of a Subadvisory Agreement (a “Subadvisory Agreement”) between New York Life Investments and Wellington. NYL Investors LLC (“NYL Investors” or the “Subadvisor,” and, together with Wellington, the “Subadvisors”), a registered investment adviser and a direct, wholly-owned subsidiary of New York Life, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the fixed-income portion of the Fund, pursuant to the terms of a Subadvisory Agreement between New York Life Investments and NYL Investors. New York Life Investments pays for the services of the Subadvisors.
Under the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.65% up to $1 billion; 0.625% from $1 billion to $2 billion; and 0.60% in excess of $2 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.65% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) of Class R6 do not exceed those of Class I. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $1,466,242 and waived fees and/or reimbursed expenses, including the voluntary waiver/reimbursement of certain class specific expenses in the amount of $28,110 and paid Wellington and NYL Investors $349,487 and $247,369, respectively.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
Notes to Financial Statements (Unaudited) (continued)
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and 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 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 Plan, Class R3 shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, for a total 12b-1 fee of 0.50%. Class I, Class R1 and Class R6 shares are not subject to a distribution and/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.
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, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R1, Class R2 and Class R3 shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the period November 1, 2023 through February 23, 2024, shareholder service fees incurred by the Fund were as follows:
|
Class R1* | $ 26 |
Class R2* | 104 |
Class R3* | 526 |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $10,682 and $1,228, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class and Class C shares during the
six-month period ended April 30, 2024, of $16,437, $30 and $718, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $165,068 | $ — |
Investor Class | 87,306 | (20,998) |
Class B | 5,599 | (1,273) |
Class C | 24,585 | (5,839) |
Class I | 26,092 | — |
Class R1* | 24 | — |
Class R2* | 97 | — |
Class R3* | 496 | — |
Class R6 | 2 | — |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $404,493,123 | $47,422,548 | $(10,068,346) | $37,354,202 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $665,768, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $666 | $— |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $ 9,944,673 |
Long-Term Capital Gains | 535,532 |
Total | $10,480,205 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based
upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of U.S. government securities were $446,316 and $454,537, respectively. Purchases and sales of securities, other than U.S. government securities and short-term securities, were $90,401 and $109,209, respectively.
Notes to Financial Statements (Unaudited) (continued)
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 544,290 | $ 16,175,336 |
Shares issued to shareholders in reinvestment of distributions | 128,796 | 3,867,071 |
Shares redeemed | (1,212,384) | (35,671,118) |
Net increase (decrease) in shares outstanding before conversion | (539,298) | (15,628,711) |
Shares converted into Class A (See Note 1) | 120,857 | 3,606,818 |
Shares converted from Class A (See Note 1) | (712) | (21,190) |
Net increase (decrease) | (419,153) | $(12,043,083) |
Year ended October 31, 2023: | | |
Shares sold | 1,548,082 | $ 44,180,228 |
Shares issued to shareholders in reinvestment of distributions | 274,607 | 7,784,603 |
Shares redeemed | (2,164,362) | (61,622,715) |
Net increase (decrease) in shares outstanding before conversion | (341,673) | (9,657,884) |
Shares converted into Class A (See Note 1) | 133,110 | 3,781,693 |
Shares converted from Class A (See Note 1) | (13,254) | (377,528) |
Net increase (decrease) | (221,817) | $ (6,253,719) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 21,373 | $ 631,723 |
Shares issued to shareholders in reinvestment of distributions | 12,467 | 374,741 |
Shares redeemed | (67,687) | (1,998,484) |
Net increase (decrease) in shares outstanding before conversion | (33,847) | (992,020) |
Shares converted into Investor Class (See Note 1) | 15,249 | 451,946 |
Shares converted from Investor Class (See Note 1) | (83,840) | (2,505,886) |
Net increase (decrease) | (102,438) | $ (3,045,960) |
Year ended October 31, 2023: | | |
Shares sold | 64,061 | $ 1,827,161 |
Shares issued to shareholders in reinvestment of distributions | 27,830 | 789,111 |
Shares redeemed | (130,944) | (3,733,182) |
Net increase (decrease) in shares outstanding before conversion | (39,053) | (1,116,910) |
Shares converted into Investor Class (See Note 1) | 36,922 | 1,060,041 |
Shares converted from Investor Class (See Note 1) | (86,523) | (2,454,105) |
Net increase (decrease) | (88,654) | $ (2,510,974) |
|
Class B | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 967 | $ 29,015 |
Shares issued to shareholders in reinvestment of distributions | 441 | 13,145 |
Shares redeemed | (21,195) | (621,944) |
Net increase (decrease) in shares outstanding before conversion | (19,787) | (579,784) |
Shares converted from Class B (See Note 1) | (30,699) | (898,130) |
Net increase (decrease) | (50,486) | $ (1,477,914) |
Year ended October 31, 2023: | | |
Shares sold | 2,287 | $ 64,388 |
Shares issued to shareholders in reinvestment of distributions | 1,744 | 48,820 |
Shares redeemed | (47,813) | (1,340,758) |
Net increase (decrease) in shares outstanding before conversion | (43,782) | (1,227,550) |
Shares converted from Class B (See Note 1) | (53,489) | (1,507,157) |
Net increase (decrease) | (97,271) | $ (2,734,707) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 13,419 | $ 390,759 |
Shares issued to shareholders in reinvestment of distributions | 2,163 | 64,678 |
Shares redeemed | (85,693) | (2,502,629) |
Net increase (decrease) in shares outstanding before conversion | (70,111) | (2,047,192) |
Shares converted from Class C (See Note 1) | (14,974) | (439,109) |
Net increase (decrease) | (85,085) | $ (2,486,301) |
Year ended October 31, 2023: | | |
Shares sold | 42,430 | $ 1,204,480 |
Shares issued to shareholders in reinvestment of distributions | 5,996 | 167,716 |
Shares redeemed | (218,174) | (6,111,194) |
Net increase (decrease) in shares outstanding before conversion | (169,748) | (4,738,998) |
Shares converted from Class C (See Note 1) | (29,912) | (841,362) |
Net increase (decrease) | (199,660) | $ (5,580,360) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 88,289 | $ 2,622,008 |
Shares issued to shareholders in reinvestment of distributions | 22,232 | 668,714 |
Shares redeemed | (266,905) | (7,903,830) |
Net increase (decrease) in shares outstanding before conversion | (156,384) | (4,613,108) |
Shares converted into Class I (See Note 1) | 709 | 21,190 |
Net increase (decrease) | (155,675) | $ (4,591,918) |
Year ended October 31, 2023: | | |
Shares sold | 491,436 | $ 14,118,732 |
Shares issued to shareholders in reinvestment of distributions | 51,766 | 1,472,892 |
Shares redeemed | (660,021) | (18,893,780) |
Net increase (decrease) in shares outstanding before conversion | (116,819) | (3,302,156) |
Shares converted into Class I (See Note 1) | 12,813 | 366,508 |
Shares converted from Class I (See Note 1) | (969) | (28,090) |
Net increase (decrease) | (104,975) | $ (2,963,738) |
|
Class R1 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 213 | $ 6,072 |
Shares issued to shareholders in reinvestment of distributions | 21 | 600 |
Shares redeemed | (5,858) | (174,282) |
Net increase (decrease) | (5,624) | $ (167,610) |
Year ended October 31, 2023: | | |
Shares sold | 1,365 | $ 38,947 |
Shares issued to shareholders in reinvestment of distributions | 168 | 4,769 |
Shares redeemed | (2,149) | (59,921) |
Net increase (decrease) | (616) | $ (16,205) |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 112 | $ 3,189 |
Shares issued to shareholders in reinvestment of distributions | 30 | 878 |
Shares redeemed | (17,191) | (509,539) |
Net increase (decrease) | (17,049) | $ (505,472) |
Year ended October 31, 2023: | | |
Shares sold | 828 | $ 23,643 |
Shares issued to shareholders in reinvestment of distributions | 296 | 8,404 |
Shares redeemed | (7,102) | (198,535) |
Net increase (decrease) | (5,978) | $ (166,488) |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 6,954 | $ 203,907 |
Shares issued to shareholders in reinvestment of distributions | 168 | 4,814 |
Shares redeemed | (68,530) | (2,040,606) |
Net increase (decrease) in shares outstanding before conversion | (61,408) | (1,831,885) |
Shares converted from Class R3 (See Note 1) | (7,263) | (215,639) |
Net increase (decrease) | (68,671) | $ (2,047,524) |
Year ended October 31, 2023: | | |
Shares sold | 16,350 | $ 466,567 |
Shares issued to shareholders in reinvestment of distributions | 1,284 | 36,287 |
Shares redeemed | (17,400) | (496,225) |
Net increase (decrease) | 234 | $ 6,629 |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1 | $ 6 |
Shares issued to shareholders in reinvestment of distributions | 24 | 734 |
Shares redeemed | (12) | (359) |
Net increase (decrease) | 13 | $ 381 |
Year ended October 31, 2023: | | |
Shares sold | 1,497 | $ 41,935 |
Shares issued to shareholders in reinvestment of distributions | 69 | 1,952 |
Shares redeemed | (1,534) | (43,830) |
Net increase (decrease) | 32 | $ 57 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreements (Unaudited)
The continuation of the Management Agreement with respect to the MainStay Balanced Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”) and the Subadvisory Agreements between New York Life Investments and each of NYL Investors LLC (“NYL Investors”) and Wellington Management Company LLP (“WMC”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments, NYL Investors and WMC in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments, NYL Investors and WMC in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments, NYL Investors and/or WMC that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually,
NYL Investors WMC personnel. In addition, the Board took into account other information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments, NYL Investors and WMC; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments, NYL Investors and WMC; (iii) the costs of the services provided, and profits realized, by New York Life Investments, NYL Investors and WMC with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to
each Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments, NYL Investors and WMC. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments, NYL Investors and WMC resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments, NYL Investors and WMC
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by NYL Investors and WMC, evaluating the performance of NYL Investors and WMC, making recommendations to the Board as to whether the Subadvisory Agreements should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of NYL Investors and WMC and ongoing analysis of, and interactions with, NYL Investors and WMC with respect to, among other things, the Fund’s investment performance and risks as well as NYL Investors’ and WMC’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that NYL Investors and WMC provide to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated NYL Investors’ and WMC’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and NYL Investors’ and WMC’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at NYL Investors and WMC. The Board considered New York Life Investments’, NYL Investors’ and WMC’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments, NYL Investors and WMC and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered NYL Investors’ and WMC’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments, NYL Investors and WMC regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Board Consideration and Approval of Management Agreement and Subadvisory Agreements (Unaudited) (continued)
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of NYL Investors and WMC and the members of the Board’s Investment Committee, which generally occur on an annual basis. In considering the investment performance of the Fund, the Board noted that the Fund underperformed its peer funds for the one-year period ended July 31, 2023, performed in line with its peer funds for the five- and ten-year periods ended July 31, 2023, and performed favorably relative to its peer funds for the three-year period ended July 31, 2023. The Board considered its discussions with representatives from New York Life Investments and NYL Investors and WMC regarding the Fund’s investment performance.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments, NYL Investors and WMC
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including NYL Investors, and WMC due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because NYL Investors is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and NYL Investors in the aggregate. With respect to the profitability of WMC’s relationship with the Fund, the Board considered information from New York Life Investments that WMC’s subadvisory fee reflected an arm’s-length negotiation and that this fee is paid by New York Life Investments, not the Fund, and the relevance of
WMC’s profitability was considered by the Trustees in that context. On this basis, the Board primarily considered the costs and profitability for New York Life Investments and its affiliates with respect to the Fund.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments, NYL Investors and WMC, and profitability of New York Life Investments and its affiliates, including NYL Investors, and WMC due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including NYL Investors’, and WMC’s continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments, NYL Investors and WMC and acknowledged that New York Life Investments, NYL Investors and WMC must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments, NYL Investors and WMC to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including NYL Investors, and WMC and its affiliates due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to WMC from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to WMC in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In this regard, the Board also requested and considered information from New York Life Investments concerning other material business relationships between WMC and its affiliates and New York Life Investments and its affiliates and considered
the existence of a strategic partnership between New York Life Investments and WMC that relates to certain current and future products and represents a potential conflict of interest associated with New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund were not excessive, other expected benefits that may accrue to New York Life Investments and its affiliates, including NYL Investors, are reasonable and other expected benefits that may accrue to WMC and its affiliates are consistent with those expected for a subadvisor to a mutual fund. With respect to WMC, the Board considered that any profits realized by WMC due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and WMC, acknowledging that any such profits are based on the subadvisory fee paid to WMC by New York Life Investments, not the Fund.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to NYL Investors and WMC is paid by New York Life Investments,
not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments, NYL Investors and WMC on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, and voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Board Consideration and Approval of Management Agreement and Subadvisory Agreements (Unaudited) (continued)
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund's subadvisors, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022175 MS081-24 | MSBL10-06/24 |
(NYLIM) NL231
MainStay Candriam Emerging Markets Equity Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Since Inception | Gross Expense Ratio2 |
Class A Shares | Maximum 5.50% Initial Sales Charge | With sales charges | 11/15/2017 | 9.48% | 3.90% | 1.02% | -0.71% | 1.55% |
| | Excluding sales charges | | 15.85 | 9.95 | 2.17 | 0.16 | 1.55 |
Investor Class Shares3 | Maximum 5.00% Initial Sales Charge | With sales charges | 11/15/2017 | 10.01 | 4.27 | 0.89 | -0.85 | 1.72 |
| | Excluding sales charges | | 15.80 | 9.76 | 2.04 | 0.02 | 1.72 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 11/15/2017 | 14.40 | 8.01 | 1.30 | -0.70 | 2.48 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 15.40 | 9.01 | 1.30 | -0.70 | 2.48 |
Class I Shares | No Sales Charge | | 11/15/2017 | 16.09 | 10.24 | 2.51 | 0.50 | 1.29 |
Class R6 Shares | No Sales Charge | | 11/15/2017 | 16.15 | 10.38 | 2.53 | 0.52 | 1.23 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Since Inception |
MSCI Emerging Markets Index (Net)2 | 15.40% | 9.88% | 1.89% | 1.49% |
Morningstar Diversified Emerging Markets Category Average3 | 15.17 | 10.54 | 2.83 | 1.64 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | The Fund has selected MSCI Emerging Markets Index (Net), which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. |
3. | The Morningstar Diversified Emerging Markets Category Average is representative of funds that tend to divide their assets among 20 or more nations, although they tend to focus on the emerging markets of Asia and Latin America rather than on those of the Middle East, Africa, or Europe. These funds invest predominantly in emerging market equities, but some funds also invest in both equities and fixed income investments from emerging markets. Results are based on average total returns of similar funds with all dividends 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 Candriam Emerging Markets Equity Fund |
Cost in Dollars of a $1,000 Investment in MainStay Candriam Emerging Markets 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,158.50 | $ 7.30 | $1,018.10 | $ 6.82 | 1.36% |
Investor Class Shares | $1,000.00 | $1,158.00 | $ 8.05 | $1,017.40 | $ 7.52 | 1.50% |
Class C Shares | $1,000.00 | $1,154.00 | $12.05 | $1,013.67 | $11.27 | 2.25% |
Class I Shares | $1,000.00 | $1,160.90 | $ 5.43 | $1,019.84 | $ 5.07 | 1.01% |
Class R6 Shares | $1,000.00 | $1,161.50 | $ 5.43 | $1,019.84 | $ 5.07 | 1.01% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Country Composition as of April 30, 2024 (Unaudited)
China | 27.5% |
India | 17.9 |
Taiwan | 15.8 |
Republic of Korea | 12.4 |
Brazil | 6.0 |
South Africa | 4.9 |
Turkey | 4.1 |
Mexico | 2.9 |
Saudi Arabia | 2.1 |
Indonesia | 1.9 |
Malaysia | 0.9% |
Philippines | 0.8 |
Argentina | 0.7 |
Thailand | 0.5 |
Kazakhstan | 0.3 |
Russia | 0.0‡ |
Other Assets, Less Liabilities | 1.3 |
| 100.0% |
‡ | Less than one–tenth of a percent. |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Taiwan Semiconductor Manufacturing Co. Ltd. |
2. | Samsung Electronics Co. Ltd. |
3. | Tencent Holdings Ltd. |
4. | SK Hynix, Inc. |
5. | Bharti Airtel Ltd. |
6. | Meituan |
7. | Reliance Industries Ltd. |
8. | China Merchants Bank Co. Ltd., Class H |
9. | Gold Fields Ltd. |
10. | Alibaba Group Holding Ltd. |
8 | MainStay Candriam Emerging Markets Equity Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 96.1% |
Argentina 0.7% |
Banco Macro SA, ADR (Banks) (a) | 20,000 | $ 1,083,200 |
Brazil 5.0% |
Banco BTG Pactual SA (Capital Markets) (a) | 156,000 | 1,003,428 |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP (Water Utilities) | 32,000 | 498,063 |
MercadoLibre, Inc. (Broadline Retail) (a) | 650 | 948,155 |
NU Holdings Ltd., Class A (Banks) (a) | 180,000 | 1,954,800 |
PRIO SA (Oil, Gas & Consumable Fuels) | 216,000 | 1,996,687 |
Suzano SA (Paper & Forest Products) (a) | 84,000 | 945,700 |
WEG SA (Electrical Equipment) | 92,000 | 700,728 |
| | 8,047,561 |
China 27.5% |
Airtac International Group (Machinery) | 30,000 | 1,061,565 |
Alibaba Group Holding Ltd. (Broadline Retail) | 292,000 | 2,741,105 |
Anhui Huaheng Biotechnology Co. Ltd., Class A (Chemicals) | 80,044 | 1,307,982 |
ANTA Sports Products Ltd. (Textiles, Apparel & Luxury Goods) | 68,000 | 771,526 |
Baidu, Inc., Class A (Interactive Media & Services) (a) | 54,000 | 702,590 |
Bank of Jiangsu Co. Ltd., Class A (Banks) | 2,419,960 | 2,696,154 |
BYD Co. Ltd., Class H (Automobiles) | 20,000 | 548,165 |
China Merchants Bank Co. Ltd., Class H (Banks) | 751,980 | 3,281,856 |
CMOC Group Ltd., Class H (Metals & Mining) | 2,759,001 | 2,608,265 |
Eoptolink Technology, Inc. Ltd., Class A (Electronic Equipment, Instruments & Components) | 96,994 | 1,129,833 |
Lenovo Group Ltd. (Technology Hardware, Storage & Peripherals) | 520,000 | 588,961 |
Luzhou Laojiao Co. Ltd., Class A (Beverages) | 24,000 | 615,522 |
Meituan (Hotels, Restaurants & Leisure) (a)(b) | 248,000 | 3,415,927 |
NAURA Technology Group Co. Ltd., Class A (Semiconductors & Semiconductor Equipment) | 33,177 | 1,458,708 |
NetEase, Inc. (Entertainment) | 52,500 | 982,359 |
Nongfu Spring Co. Ltd., Class H (Beverages) (b) | 176,000 | 1,033,262 |
PDD Holdings, Inc., ADR (Broadline Retail) (a) | 20,000 | 2,503,600 |
| Shares | Value |
|
China (continued) |
Ping An Insurance Group Co. of China Ltd., Class H (Insurance) | 412,000 | $ 1,878,551 |
Sailun Group Co. Ltd., Class A (Automobile Components) | 514,997 | 1,177,246 |
Shenzhen New Industries Biomedical Engineering Co. Ltd., Class A (Health Care Equipment & Supplies) | 123,958 | 1,205,765 |
Shenzhen Transsion Holdings Co. Ltd., Class A (Technology Hardware, Storage & Peripherals) | 36,500 | 725,057 |
SITC International Holdings Co. Ltd. (Marine Transportation) | 252,960 | 551,024 |
Sunresin New Materials Co. Ltd., Class A (Chemicals) | 126,992 | 819,911 |
Suzhou TFC Optical Communication Co. Ltd., Class A (Communications Equipment) | 26,955 | 586,625 |
Tencent Holdings Ltd. (Interactive Media & Services) | 141,900 | 6,238,751 |
Vipshop Holdings Ltd., ADR (Broadline Retail) | 78,000 | 1,173,120 |
Xiaomi Corp., Class B (Technology Hardware, Storage & Peripherals) (a)(b) | 480,000 | 1,043,505 |
Yantai Jereh Oilfield Services Group Co. Ltd., Class A (Energy Equipment & Services) | 370,500 | 1,632,460 |
| | 44,479,395 |
India 17.9% |
ABB India Ltd. (Electrical Equipment) | 26,000 | 2,033,042 |
APL Apollo Tubes Ltd. (Metals & Mining) | 52,000 | 970,334 |
Apollo Hospitals Enterprise Ltd. (Health Care Providers & Services) | 19,400 | 1,381,949 |
Axis Bank Ltd. (Banks) | 132,000 | 1,844,207 |
Bharti Airtel Ltd. (Wireless Telecommunication Services) | 222,000 | 3,514,086 |
Coforge Ltd. (IT Services) | 15,600 | 943,754 |
Dixon Technologies India Ltd. (Household Durables) | 17,000 | 1,699,258 |
ICICI Bank Ltd. (Banks) | 188,000 | 2,591,798 |
Infosys Ltd. (IT Services) | 37,000 | 625,525 |
KPIT Technologies Ltd. (Software) | 50,000 | 895,213 |
Reliance Industries Ltd. (Oil, Gas & Consumable Fuels) | 95,000 | 3,326,901 |
Shriram Finance Ltd. (Consumer Finance) | 54,000 | 1,639,715 |
Tata Motors Ltd. (Automobiles) | 166,000 | 2,000,462 |
Torrent Pharmaceuticals Ltd. (Pharmaceuticals) | 52,000 | 1,646,782 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
India (continued) |
Trent Ltd. (Specialty Retail) | 36,000 | $ 1,886,346 |
Varun Beverages Ltd. (Beverages) | 112,000 | 1,983,047 |
| | 28,982,419 |
Indonesia 1.9% |
Bank Mandiri Persero Tbk. PT (Banks) | 5,800,000 | 2,447,981 |
Sumber Alfaria Trijaya Tbk. PT (Consumer Staples Distribution & Retail) | 3,600,000 | 646,734 |
| | 3,094,715 |
Kazakhstan 0.3% |
Kaspi.KZ JSC, ADR (Consumer Finance) | 3,400 | 400,384 |
Malaysia 0.9% |
Press Metal Aluminium Holdings Bhd. (Metals & Mining) | 1,240,000 | 1,394,935 |
Mexico 2.9% |
Alsea SAB de CV (Hotels, Restaurants & Leisure) (a) | 230,000 | 963,460 |
America Movil SAB de CV (Wireless Telecommunication Services) | 1,320,000 | 1,256,758 |
Grupo Financiero Banorte SAB de CV, Class O (Banks) | 246,000 | 2,434,762 |
| | 4,654,980 |
Philippines 0.8% |
International Container Terminal Services, Inc. (Transportation Infrastructure) | 214,000 | 1,231,591 |
Republic of Korea 10.8% |
DB Insurance Co. Ltd. (Insurance) | 26,000 | 1,825,086 |
KB Financial Group, Inc. (Banks) | 40,000 | 2,167,642 |
Kia Motors Corp. (Automobiles) | 10,500 | 888,148 |
Meritz Financial Group, Inc. (Financial Services) | 32,000 | 1,816,879 |
Samsung Electronics Co. Ltd. (Technology Hardware, Storage & Peripherals) | 105,000 | 5,811,551 |
Samsung Heavy Industries Co. Ltd. (Machinery) (a) | 172,000 | 1,168,312 |
SK Hynix, Inc. (Semiconductors & Semiconductor Equipment) | 30,800 | 3,769,692 |
| | 17,447,310 |
Russia 0.0% ‡ |
Magnit PJSC (Consumer Staples Distribution & Retail) (c)(d) | 6,769 | — |
| Shares | Value |
|
Saudi Arabia 2.1% |
Al Rajhi Bank (Banks) | 58,000 | $ 1,234,292 |
Dr. Sulaiman Al Habib Medical Services Group Co. (Health Care Providers & Services) | 8,800 | 728,354 |
Elm Co. (IT Services) | 2,900 | 706,731 |
United Electronics Co. (Specialty Retail) | 29,000 | 764,774 |
| | 3,434,151 |
South Africa 4.9% |
Capitec Bank Holdings Ltd. (Banks) | 17,400 | 2,153,309 |
Gold Fields Ltd. (Metals & Mining) | 190,000 | 3,096,781 |
Naspers Ltd., Class N (Broadline Retail) | 13,800 | 2,640,985 |
| | 7,891,075 |
Taiwan 15.8% |
Accton Technology Corp. (Communications Equipment) | 54,000 | 755,309 |
Alchip Technologies Ltd. (Semiconductors & Semiconductor Equipment) | 8,000 | 750,578 |
ASE Technology Holding Co. Ltd. (Semiconductors & Semiconductor Equipment) | 300,000 | 1,356,128 |
ASPEED Technology, Inc. (Semiconductors & Semiconductor Equipment) | 11,400 | 1,077,979 |
Chailease Holding Co. Ltd. (Financial Services) | 199,000 | 1,056,078 |
CTBC Financial Holding Co. Ltd. (Banks) | 2,160,000 | 2,256,497 |
E Ink Holdings, Inc. (Electronic Equipment, Instruments & Components) | 88,000 | 565,814 |
Lotes Co. Ltd. (Electronic Equipment, Instruments & Components) | 25,000 | 1,102,853 |
Realtek Semiconductor Corp. (Semiconductors & Semiconductor Equipment) | 34,000 | 538,869 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment) | 609,300 | 14,681,438 |
Wiwynn Corp. (Technology Hardware, Storage & Peripherals) | 20,000 | 1,444,401 |
| | 25,585,944 |
Thailand 0.5% |
Thai Oil PCL, NVDR (Oil, Gas & Consumable Fuels) (e) | 540,000 | 790,101 |
Turkey 4.1% |
BIM Birlesik Magazalar A/S (Consumer Staples Distribution & Retail) | 120,000 | 1,433,472 |
Coca-Cola Icecek A/S (Beverages) | 72,000 | 1,610,717 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay Candriam Emerging Markets Equity Fund |
| Shares | | Value |
Common Stocks (continued) |
Turkey (continued) |
Ford Otomotiv Sanayi A/S (Automobiles) | 21,000 | | $ 722,471 |
Turkiye Garanti Bankasi A/S (Banks) (e) | 640,000 | | 1,630,441 |
Turkiye Petrol Rafinerileri A/S (Oil, Gas & Consumable Fuels) | 204,000 | | 1,231,991 |
| | | 6,629,092 |
Total Common Stocks (Cost $134,309,409) | | | 155,146,853 |
Preferred Stocks 2.6% |
Brazil 1.0% |
Itau Unibanco Holding SA (Banks) | 282,000 | | 1,703,101 |
Republic of Korea 1.6% |
Samsung Electronics Co. Ltd. (Technology Hardware, Storage & Peripherals) 1.88% | 54,000 | | 2,530,658 |
Total Preferred Stocks (Cost $4,012,569) | | | 4,233,759 |
Total Investments (Cost $138,321,978) | 98.7% | | 159,380,612 |
Other Assets, Less Liabilities | 1.3 | | 2,118,315 |
Net Assets | 100.0% | | $ 161,498,927 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
‡ | Less than one-tenth of a percent. |
(a) | Non-income producing security. |
(b) | May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
(c) | Illiquid security—As of April 30, 2024, the total market value deemed illiquid under procedures approved by the Board of Trustees was $0, which represented less than one-tenth of a percent of the Fund’s net assets. |
(d) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(e) | All or a portion of this security was held on loan. As of April 30, 2024, the aggregate market value of securities on loan was $868,703. The market value of the collateral held included non-cash collateral in the form of U.S. Treasury securities with a value of $953,430. (See Note 2(I)) |
Abbreviation(s): |
ADR—American Depositary Receipt |
NVDR—Non-Voting Depositary Receipt |
PCL—Provision for Credit Losses |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | | | | | | | |
China | $ 3,676,720 | | $ 40,802,675 | | $ — | | $ 44,479,395 |
India | — | | 28,982,419 | | — | | 28,982,419 |
Indonesia | — | | 3,094,715 | | — | | 3,094,715 |
Malaysia | — | | 1,394,935 | | — | | 1,394,935 |
Philippines | — | | 1,231,591 | | — | | 1,231,591 |
Republic of Korea | — | | 17,447,310 | | — | | 17,447,310 |
Saudi Arabia | — | | 3,434,151 | | — | | 3,434,151 |
South Africa | — | | 7,891,075 | | — | | 7,891,075 |
Taiwan | — | | 25,585,944 | | — | | 25,585,944 |
Thailand | — | | 790,101 | | — | | 790,101 |
Turkey | — | | 6,629,092 | | — | | 6,629,092 |
All Other Countries | 14,186,125 | | — | | — | | 14,186,125 |
Total Common Stocks | 17,862,845 | | 137,284,008 | | — | | 155,146,853 |
Preferred Stocks | 1,703,101 | | 2,530,658 | | — | | 4,233,759 |
Total Investments in Securities | $ 19,565,946 | | $ 139,814,666 | | $ — | | $ 159,380,612 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay Candriam Emerging Markets Equity Fund |
The table below sets forth the diversification of the Fund’s investments by industry.
Industry Diversification
| Value | | Percent †^ |
Automobile Components | $ 1,177,246 | | 0.7% |
Automobiles | 4,159,246 | | 2.6 |
Banks | 29,480,040 | | 18.3 |
Beverages | 5,242,548 | | 3.2 |
Broadline Retail | 10,006,965 | | 6.2 |
Capital Markets | 1,003,428 | | 0.6 |
Chemicals | 2,127,893 | | 1.3 |
Communications Equipment | 1,341,934 | | 0.8 |
Consumer Finance | 2,040,099 | | 1.3 |
Consumer Staples Distribution & Retail | 2,080,206 | | 1.3 |
Electrical Equipment | 2,733,770 | | 1.7 |
Electronic Equipment, Instruments & Components | 2,798,500 | | 1.7 |
Energy Equipment & Services | 1,632,460 | | 1.0 |
Entertainment | 982,359 | | 0.6 |
Financial Services | 2,872,957 | | 1.8 |
Health Care Equipment & Supplies | 1,205,765 | | 0.7 |
Health Care Providers & Services | 2,110,303 | | 1.3 |
Hotels, Restaurants & Leisure | 4,379,387 | | 2.7 |
Household Durables | 1,699,258 | | 1.1 |
Insurance | 3,703,637 | | 2.3 |
Interactive Media & Services | 6,941,341 | | 4.3 |
IT Services | 2,276,010 | | 1.4 |
Machinery | 2,229,877 | | 1.4 |
Marine Transportation | 551,024 | | 0.3 |
Metals & Mining | 8,070,315 | | 5.0 |
Oil, Gas & Consumable Fuels | 7,345,680 | | 4.6 |
Paper & Forest Products | 945,700 | | 0.6 |
Pharmaceuticals | 1,646,782 | | 1.0 |
Semiconductors & Semiconductor Equipment | 23,633,392 | | 14.6 |
Software | 895,213 | | 0.6 |
Specialty Retail | 2,651,120 | | 1.6 |
Technology Hardware, Storage & Peripherals | 12,144,133 | | 7.5 |
Textiles, Apparel & Luxury Goods | 771,526 | | 0.5 |
Transportation Infrastructure | 1,231,591 | | 0.8 |
Water Utilities | 498,063 | | 0.3 |
Wireless Telecommunication Services | 4,770,844 | | 3.0 |
| Value | | Percent †^ |
| 159,380,612 | | 98.7 |
Other Assets, Less Liabilities | 2,118,315 | | 1.3 |
Net Assets | $161,498,927 | | 100.0% |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $138,321,978) including securities on loan of $868,703 | $159,380,612 |
Cash | 3,227,377 |
Cash denominated in foreign currencies (identified cost $316,240) | 315,999 |
Receivables: | |
Investment securities sold | 633,502 |
Dividends | 122,331 |
Fund shares sold | 63,725 |
Securities lending | 4,472 |
Other assets | 51,180 |
Total assets | 163,799,198 |
Liabilities |
Payables: | |
Foreign capital gains tax (See Note 2) | 1,053,813 |
Investment securities purchased | 1,038,615 |
Manager (See Note 3) | 101,441 |
Custodian | 68,658 |
Professional fees | 23,693 |
Fund shares redeemed | 6,290 |
Transfer agent (See Note 3) | 3,775 |
Shareholder communication | 2,257 |
NYLIFE Distributors (See Note 3) | 490 |
Trustees | 30 |
Accrued expenses | 1,209 |
Total liabilities | 2,300,271 |
Net assets | $161,498,927 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 16,702 |
Additional paid-in-capital | 171,528,768 |
| 171,545,470 |
Total distributable earnings (loss) | (10,046,543) |
Net assets | $161,498,927 |
Class A | |
Net assets applicable to outstanding shares | $ 1,973,619 |
Shares of beneficial interest outstanding | 204,741 |
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 |
Investor Class | |
Net assets applicable to outstanding shares | $ 210,029 |
Shares of beneficial interest outstanding | 21,825 |
Net asset value per share outstanding | $ 9.62 |
Maximum sales charge (5.00% of offering price) | 0.51 |
Maximum offering price per share outstanding | $ 10.13 |
Class C | |
Net assets applicable to outstanding shares | $ 46,948 |
Shares of beneficial interest outstanding | 4,975 |
Net asset value and offering price per share outstanding | $ 9.44 |
Class I | |
Net assets applicable to outstanding shares | $ 7,542,366 |
Shares of beneficial interest outstanding | 774,811 |
Net asset value and offering price per share outstanding | $ 9.73 |
Class R6 | |
Net assets applicable to outstanding shares | $151,725,965 |
Shares of beneficial interest outstanding | 15,695,511 |
Net asset value and offering price per share outstanding | $ 9.67 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay Candriam Emerging Markets Equity Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends (net of foreign tax withholding of $171,906) | $ 1,131,089 |
Securities lending, net | 19,749 |
Other | 11,015 |
Total income | 1,161,853 |
Expenses | |
Manager (See Note 3) | 778,428 |
Custodian | 66,217 |
Professional fees | 53,312 |
Registration | 35,068 |
Transfer agent (See Note 3) | 8,828 |
Shareholder communication | 4,582 |
Distribution/Service—Class A (See Note 3) | 2,428 |
Distribution/Service—Investor Class (See Note 3) | 265 |
Distribution/Service—Class C (See Note 3) | 259 |
Trustees | 1,966 |
Miscellaneous | 9,828 |
Total expenses before waiver/reimbursement | 961,181 |
Expense waiver/reimbursement from Manager (See Note 3) | (170,759) |
Net expenses | 790,422 |
Net investment income (loss) | 371,431 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions(a) | 227,109 |
Foreign currency transactions | (199,664) |
Net realized gain (loss) | 27,445 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments(b) | 22,990,973 |
Translation of other assets and liabilities in foreign currencies | 29,594 |
Net change in unrealized appreciation (depreciation) | 23,020,567 |
Net realized and unrealized gain (loss) | 23,048,012 |
Net increase (decrease) in net assets resulting from operations | $23,419,443 |
(a) | Realized gain (loss) on security transactions recorded net of foreign capital gains tax in the amount of $(199,352). |
(b) | Net change in unrealized appreciation (depreciation) on investments recorded net of foreign capital gains tax in the amount of $(758,544). |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 371,431 | $ 1,864,234 |
Net realized gain (loss) | 27,445 | (12,251,073) |
Net change in unrealized appreciation (depreciation) | 23,020,567 | 9,333,017 |
Net increase (decrease) in net assets resulting from operations | 23,419,443 | (1,053,822) |
Distributions to shareholders: | | |
Class A | (16,315) | (17,148) |
Investor Class | (1,313) | (1,668) |
Class I | (254,305) | (145,979) |
Class R6 | (1,543,945) | (1,134,919) |
Total distributions to shareholders | (1,815,878) | (1,299,714) |
Capital share transactions: | | |
Net proceeds from sales of shares | 16,348,267 | 60,890,791 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 1,217,522 | 1,018,121 |
Cost of shares redeemed | (26,408,567) | (19,933,822) |
Increase (decrease) in net assets derived from capital share transactions | (8,842,778) | 41,975,090 |
Net increase (decrease) in net assets | 12,760,787 | 39,621,554 |
Net Assets |
Beginning of period | 148,738,140 | 109,116,586 |
End of period | $161,498,927 | $148,738,140 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay Candriam Emerging Markets Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.39 | | $ 8.24 | | $ 12.73 | | $ 10.66 | | $ 8.97 | | $ 7.98 |
Net investment income (loss) (a) | 0.01 | | 0.08 | | 0.13 | | 0.04 | | 0.02 | | 0.10 |
Net realized and unrealized gain (loss) | 1.31 | | 0.14 | | (4.56) | | 2.06 | | 1.85 | | 0.93 |
Total from investment operations | 1.32 | | 0.22 | | (4.43) | | 2.10 | | 1.87 | | 1.03 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.07) | | (0.07) | | (0.06) | | (0.03) | | (0.18) | | (0.04) |
Net asset value at end of period | $ 9.64 | | $ 8.39 | | $ 8.24 | | $ 12.73 | | $ 10.66 | | $ 8.97 |
Total investment return (b) | 15.85% | | 2.60% | | (34.95)% | | 19.68% | | 21.14% | | 12.96% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.12%†† | | 0.84% | | 1.25% | | 0.30% | | 0.22% | | 1.18% |
Net expenses (c) | 1.36%†† | | 1.33% | | 1.44% | | 1.47% | | 1.50% | | 1.50% |
Expenses (before waiver/reimbursement) (c) | 1.57%†† | | 1.55% | | 1.77% | | 1.75% | | 2.00% | | 1.77% |
Portfolio turnover rate | 49% | | 60% | | 105% | | 74% | | 122% | | 107% |
Net assets at end of period (in 000’s) | $ 1,974 | | $ 1,910 | | $ 2,144 | | $ 2,921 | | $ 1,111 | | $ 77 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.36 | | $ 8.22 | | $ 12.70 | | $ 10.65 | | $ 8.95 | | $ 7.97 |
Net investment income (loss) (a) | 0.00‡ | | 0.06 | | 0.12 | | 0.02 | | 0.02 | | 0.07 |
Net realized and unrealized gain (loss) | 1.32 | | 0.13 | | (4.55) | | 2.05 | | 1.84 | | 0.94 |
Total from investment operations | 1.32 | | 0.19 | | (4.43) | | 2.07 | | 1.86 | | 1.01 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.06) | | (0.05) | | (0.05) | | (0.02) | | (0.16) | | (0.03) |
Net asset value at end of period | $ 9.62 | | $ 8.36 | | $ 8.22 | | $ 12.70 | | $ 10.65 | | $ 8.95 |
Total investment return (b) | 15.80% | | 2.33% | | (34.99)% | | 19.49% | | 21.11%(c) | | 12.71%(c) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.01%†† | | 0.68% | | 1.09% | | 0.15% | | 0.17% | | 0.76% |
Net expenses (d) | 1.50%†† | | 1.50% | | 1.57% | | 1.52% | | 1.52% | | 1.66% |
Expenses (before waiver/reimbursement) (d) | 1.71%†† | | 1.72% | | 1.88% | | 1.81% | | 2.03% | | 1.92% |
Portfolio turnover rate | 49% | | 60% | | 105% | | 74% | | 122% | | 107% |
Net assets at end of period (in 000's) | $ 210 | | $ 198 | | $ 256 | | $ 507 | | $ 360 | | $ 121 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.18 | | $ 8.05 | | $ 12.48 | | $ 10.52 | | $ 8.85 | | $ 7.91 |
Net investment income (loss) (a) | (0.04) | | (0.02) | | 0.04 | | (0.08) | | (0.05) | | (0.01) |
Net realized and unrealized gain (loss) | 1.30 | | 0.15 | | (4.47) | | 2.04 | | 1.83 | | 0.95 |
Total from investment operations | 1.26 | | 0.13 | | (4.43) | | 1.96 | | 1.78 | | 0.94 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | — | | — | | — | | (0.11) | | — |
Net asset value at end of period | $ 9.44 | | $ 8.18 | | $ 8.05 | | $ 12.48 | | $ 10.52 | | $ 8.85 |
Total investment return (b) | 15.40% | | 1.61% | | (35.50)% | | 18.63%(c) | | 20.23% | | 11.88% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (0.85)%†† | | (0.18)% | | 0.36% | | (0.63)% | | (0.52)% | | (0.13)% |
Net expenses (d) | 2.25%†† | | 2.25% | | 2.31% | | 2.27% | | 2.27% | | 2.40% |
Expenses (before waiver/reimbursement) (d) | 2.45%†† | | 2.48% | | 2.64% | | 2.57% | | 2.78% | | 2.67% |
Portfolio turnover rate | 49% | | 60% | | 105% | | 74% | | 122% | | 107% |
Net assets at end of period (in 000’s) | $ 47 | | $ 71 | | $ 141 | | $ 212 | | $ 217 | | $ 56 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.48 | | $ 8.33 | | $ 12.85 | | $ 10.77 | | $ 8.99 | | $ 8.00 |
Net investment income (loss) (a) | 0.02 | | 0.12 | | 0.16 | | 0.05 | | 0.05 | | (0.02) |
Net realized and unrealized gain (loss) | 1.34 | | 0.12 | | (4.58) | | 2.11 | | 1.87 | | 1.07 |
Total from investment operations | 1.36 | | 0.24 | | (4.42) | | 2.16 | | 1.92 | | 1.05 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.11) | | (0.09) | | (0.10) | | (0.08) | | (0.14) | | (0.06) |
Net asset value at end of period | $ 9.73 | | $ 8.48 | | $ 8.33 | | $ 12.85 | | $ 10.77 | | $ 8.99 |
Total investment return (b) | 16.09% | | 2.87% | | (34.65)% | | 20.05% | | 21.60% | | 13.28% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.37%†† | | 1.28% | | 1.65% | | 0.38% | | 0.55% | | (0.26)% |
Net expenses (c) | 1.01%†† | | 1.01% | | 1.06% | | 1.07% | | 1.15% | | 1.15% |
Expenses (before waiver/reimbursement) (c) | 1.29%†† | | 1.29% | | 1.54% | | 1.52% | | 1.79% | | 1.52% |
Portfolio turnover rate | 49% | | 60% | | 105% | | 74% | | 122% | | 107% |
Net assets at end of period (in 000’s) | $ 7,542 | | $ 20,401 | | $ 12,977 | | $ 4,532 | | $ 30 | | $ 40 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
18 | MainStay Candriam Emerging Markets Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.42 | | $ 8.28 | | $ 12.79 | | $ 10.71 | | $ 9.00 | | $ 8.01 |
Net investment income (loss) (a) | 0.02 | | 0.11 | | 0.17 | | 0.08 | | 0.05 | | 0.10 |
Net realized and unrealized gain (loss) | 1.33 | | 0.13 | | (4.57) | | 2.06 | | 1.86 | | 0.95 |
Total from investment operations | 1.35 | | 0.24 | | (4.40) | | 2.14 | | 1.91 | | 1.05 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.10) | | (0.10) | | (0.11) | | (0.06) | | (0.20) | | (0.06) |
Net asset value at end of period | $ 9.67 | | $ 8.42 | | $ 8.28 | | $ 12.79 | | $ 10.71 | | $ 9.00 |
Total investment return (b) | 16.15% | | 2.82% | | (34.65)% | | 20.05% | | 21.61% | | 13.29% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.49%†† | | 1.24% | | 1.63% | | 0.58% | | 0.51% | | 1.11% |
Net expenses (c) | 1.01%†† | | 1.01% | | 1.06% | | 1.07% | | 1.15% | | 1.15% |
Expenses (before waiver/reimbursement) (c) | 1.22%†† | | 1.23% | | 1.40% | | 1.32% | | 1.53% | | 1.42% |
Portfolio turnover rate | 49% | | 60% | | 105% | | 74% | | 122% | | 107% |
Net assets at end of period (in 000’s) | $ 151,726 | | $ 126,160 | | $ 93,598 | | $ 83,916 | | $ 83,230 | | $ 49,111 |
* | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Candriam Emerging Markets Equity Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | November 15, 2017 |
Investor Class | November 15, 2017 |
Class C | November 15, 2017 |
Class I | November 15, 2017 |
Class R6 | November 15, 2017 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. A contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions of Class A and Investor Class shares made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are offered at NAV without a sales charge. Depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. Class I and Class R6 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 is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent
20 | MainStay Candriam Emerging Markets Equity Fund |
buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any
restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Certain securities held by the Fund may principally trade in foreign markets. Events may occur between the time the foreign markets close and the time at which the Fund's 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 Valuation Designee conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Valuation Designee may, pursuant to the Valuation Procedures, adjust the value of the local price to reflect the estimated 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, certain 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 Valuation Procedures and are generally categorized as Level 2 in the hierarchy.
If the principal market of certain foreign equity securities is closed in observance of a local foreign holiday, these securities are valued using the last closing price of regular trading on the relevant exchange and fair valued by applying factors provided by a third-party vendor in accordance with the Valuation Procedures. These securities are generally categorized as Level 2 in the hierarchy.
Notes to Financial Statements (Unaudited) (continued)
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally 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 in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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) Foreign Taxes. The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which it invests. A portion of the taxes on gains on investments or currency purchases/repatriation may be reclaimable. The Fund will accrue such taxes and reclaims as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
The Fund may be subject to taxation on realized capital gains, repatriation proceeds and other transaction-based taxes imposed by certain countries in which it invests. The Fund will accrue such taxes as applicable based upon its current interpretation of tax rules and regulations that exist in the market in which it invests. Capital gains taxes relating to positions still held are reflected as a liability in the Statement of Assets and Liabilities, as well as an adjustment to the Fund's net unrealized appreciation (depreciation). Taxes related to capital gains realized, if any, are reflected as part of net realized gain (loss) in the Statement of Operations. Changes in tax liabilities related to capital gains taxes on unrealized investment gains, if any, are reflected as part of the change in net unrealized appreciation (depreciation) on investments in the Statement of Operations. Transaction-based charges are generally assessed as a percentage of the transaction amount.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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
22 | MainStay Candriam Emerging Markets Equity Fund |
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, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive
compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(J) Foreign Securities Risk. The Fund may invest in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult to value. 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, among other things, economic or political developments in a specific country, industry or region. For example, the Fund's portfolio has significant investments in the Asia-Pacific region. The development and stability of the Asia-Pacific region can be adversely affected by, among other regional and global developments, trade barriers, exchange controls and other measures imposed or negotiated by the countries with which they trade. Some Asia-Pacific countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles and less liquid markets than developed countries.
(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 that may 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. The Manager believes 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.
Notes to Financial Statements (Unaudited) (continued)
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 Fund's Manager, pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Candriam (the "Subadvisor"), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as the 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 ("Subadvisory Agreement") between New York Life Investments and Candriam, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 1.00% up to $1 billion and 0.975% in excess of $1 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 1.00% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) for Class A and Class I shares do not exceed 1.50% and 1.01%, respectively, of the Fund's average daily net assets. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points of the Class A shares waiver/reimbursement, to Investor Class and Class C. In addition, New York Life Investments has also contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) for Class R6 shares do not exceed those of Class I. These agreements will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $778,428 and waived fees and/or reimbursed expenses in the amount of $170,759 and paid the Subadvisor fees in the amount of $303,834.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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, for a total 12b-1 fee of 1.00%. Class I and Class R6 shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $22 and $38, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until
24 | MainStay Candriam Emerging Markets Equity Fund |
February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 944 | $— |
Investor Class | 251 | — |
Class C | 61 | — |
Class I | 4,734 | — |
Class R6 | 2,838 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class I | $28,261 | 0.4% |
Class R6 | 28,263 | 0.0‡ |
‡ | Less than one-tenth of a percent. |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $143,852,012 | $20,271,525 | $(4,742,925) | $15,528,600 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $24,908,932, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected
to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $22,758 | $2,151 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $1,299,714 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Notes to Financial Statements (Unaudited) (continued)
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $75,854 and $90,109, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 585 | $ 5,296 |
Shares issued to shareholders in reinvestment of distributions | 1,798 | 16,131 |
Shares redeemed | (25,978) | (235,221) |
Net increase (decrease) in shares outstanding before conversion | (23,595) | (213,794) |
Shares converted into Class A (See Note 1) | 633 | 5,828 |
Net increase (decrease) | (22,962) | $ (207,966) |
Year ended October 31, 2023: | | |
Shares sold | 16,378 | $ 149,198 |
Shares issued to shareholders in reinvestment of distributions | 1,938 | 17,148 |
Shares redeemed | (57,528) | (516,759) |
Net increase (decrease) in shares outstanding before conversion | (39,212) | (350,413) |
Shares converted into Class A (See Note 1) | 6,792 | 60,925 |
Net increase (decrease) | (32,420) | $ (289,488) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,970 | $ 17,964 |
Shares issued to shareholders in reinvestment of distributions | 147 | 1,313 |
Shares redeemed | (3,392) | (31,981) |
Net increase (decrease) in shares outstanding before conversion | (1,275) | (12,704) |
Shares converted into Investor Class (See Note 1) | 104 | 956 |
Shares converted from Investor Class (See Note 1) | (633) | (5,828) |
Net increase (decrease) | (1,804) | $ (17,576) |
Year ended October 31, 2023: | | |
Shares sold | 4,509 | $ 40,548 |
Shares issued to shareholders in reinvestment of distributions | 189 | 1,668 |
Shares redeemed | (11,260) | (101,809) |
Net increase (decrease) in shares outstanding before conversion | (6,562) | (59,593) |
Shares converted into Investor Class (See Note 1) | 1,179 | 10,594 |
Shares converted from Investor Class (See Note 1) | (2,161) | (19,757) |
Net increase (decrease) | (7,544) | $ (68,756) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares redeemed | (3,548) | $ (30,220) |
Net increase (decrease) in shares outstanding before conversion | (3,548) | (30,220) |
Shares converted from Class C (See Note 1) | (106) | (956) |
Net increase (decrease) | (3,654) | $ (31,176) |
Year ended October 31, 2023: | | |
Shares sold | 703 | $ 6,000 |
Shares redeemed | (7,078) | (61,830) |
Net increase (decrease) in shares outstanding before conversion | (6,375) | (55,830) |
Shares converted from Class C (See Note 1) | (2,527) | (22,213) |
Net increase (decrease) | (8,902) | $ (78,043) |
|
26 | MainStay Candriam Emerging Markets Equity Fund |
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 11,212 | $ 102,683 |
Shares issued to shareholders in reinvestment of distributions | 26,035 | 235,619 |
Shares redeemed | (1,667,247) | (15,184,481) |
Net increase (decrease) | (1,630,000) | $(14,846,179) |
Year ended October 31, 2023: | | |
Shares sold | 1,673,240 | $ 15,800,238 |
Shares issued to shareholders in reinvestment of distributions | 14,494 | 129,432 |
Shares redeemed | (840,143) | (7,263,043) |
Net increase (decrease) | 847,591 | $ 8,666,627 |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,784,017 | $ 16,222,324 |
Shares issued to shareholders in reinvestment of distributions | 107,281 | 964,459 |
Shares redeemed | (1,177,383) | (10,926,664) |
Net increase (decrease) | 713,915 | $ 6,260,119 |
Year ended October 31, 2023: | | |
Shares sold | 4,914,202 | $ 44,894,807 |
Shares issued to shareholders in reinvestment of distributions | 98,069 | 869,873 |
Shares redeemed | (1,334,945) | (11,990,381) |
Net increase (decrease) in shares outstanding before conversion | 3,677,326 | 33,774,299 |
Shares converted from Class R6 (See Note 1) | (3,328) | (29,549) |
Net increase (decrease) | 3,673,998 | $ 33,744,750 |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay Candriam Emerging Markets Equity Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”) and the Subadvisory Agreement between New York Life Investments and Candriam with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and Candriam in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and Candriam in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or Candriam that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, Candriam personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and Candriam; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and Candriam; (iii) the costs of the services provided, and profits realized, by New York Life Investments and Candriam with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
28 | MainStay Candriam Emerging Markets Equity Fund |
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and Candriam. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and Candriam resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and Candriam
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by Candriam, evaluating the performance of Candriam, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of Candriam and ongoing analysis of, and interactions with, Candriam with respect to, among other things, the Fund’s investment performance and risks as well as Candriam’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that Candriam provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated Candriam’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and Candriam’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at Candriam. The Board considered New York Life Investments’ and Candriam’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and Candriam and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered Candriam’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and Candriam regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
to the Board throughout the year. These reports include, among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmark, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of Candriam and the members of the Board’s Investment Committee, which generally occur on an annual basis. In considering the investment performance of the Fund, the Board noted that the Fund underperformed its peer funds for the one- and three-year periods ended July 31, 2023. The Board considered its discussions with representatives from New York Life Investments and Candriam regarding the Fund’s investment performance.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and Candriam
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including Candriam, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because Candriam is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and Candriam in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and Candriam, and profitability of New York Life Investments and its affiliates, including Candriam, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including Candriam’s, continuing
investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and Candriam and acknowledged that New York Life Investments and Candriam must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and Candriam to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including Candriam, due to their relationships with the Fund, including reputational and other indirect benefits. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
30 | MainStay Candriam Emerging Markets Equity Fund |
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including Candriam, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including Candriam, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to Candriam is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and Candriam on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
32 | MainStay Candriam Emerging Markets Equity Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022269 MS081-24 | MSCEME10-06/24 |
(NYLIM) NL440
MainStay Asset Allocation Funds
Message from the President and Semiannual Report
Unaudited | April 30, 2024
MainStay Conservative Allocation Fund |
MainStay Moderate Allocation Fund |
MainStay Growth Allocation Fund |
MainStay Equity Allocation Fund |
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read each Fund’s Summary Prospectus and/or Prospectus carefully before investing.
MainStay Conservative Allocation Fund
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 3.00% Initial Sales Charge | With sales charges | 4/4/2005 | 7.48% | 3.81% | 2.83% | 3.15% | 0.83% |
| | Excluding sales charges | | 10.81 | 7.02 | 4.00 | 3.74 | 0.83 |
Investor Class Shares3, 4 | Maximum 2.50% Initial Sales Charge | With sales charges | 2/28/2008 | 7.86 | 4.08 | 2.65 | 2.98 | 1.13 |
| | Excluding sales charges | | 10.63 | 6.75 | 3.81 | 3.57 | 1.13 |
Class B Shares5 | Maximum 5.00% CDSC | With sales charges | 4/4/2005 | 5.30 | 0.92 | 2.69 | 2.79 | 1.89 |
| if Redeemed Within the First Six Years of Purchase | Excluding sales charges | | 10.30 | 5.92 | 3.03 | 2.79 | 1.89 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 4/4/2005 | 9.30 | 5.02 | 3.04 | 2.79 | 1.89 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 10.30 | 6.02 | 3.04 | 2.79 | 1.89 |
Class I Shares | No Sales Charge | | 4/4/2005 | 10.90 | 7.19 | 4.27 | 4.00 | 0.58 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 10.63 | 6.67 | N/A | 2.11 | 1.18 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to July 22, 2019, the maximum initial sales charge applicable was 5.50%, which is reflected in the applicable average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 3.00%, which is reflected in the applicable average annual total return figures shown. |
5. | Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg U.S. Aggregate Bond Index2 | 4.97% | -1.47% | -0.16% | 1.20% |
S&P 500® Index3 | 20.98 | 22.66 | 13.19 | 12.41 |
MSCI EAFE® Index (Net)4 | 18.63 | 9.28 | 6.18 | 4.38 |
Conservative Allocation Composite Index5 | 10.97 | 6.49 | 4.66 | 5.03 |
Morningstar Moderately Conservative Allocation Category Average6 | 10.44 | 6.33 | 3.80 | 3.95 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | The Bloomberg U.S. Aggregate Bond Index is generally representative of the market sectors or types of investments in which the Fund invests. The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the performance of 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. |
3. | The S&P 500® Index, which represents a broad measure of market performance, is generally representative of the market sectors or types of investments in which the Fund invests. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. |
4. | The MSCI EAFE® Index (Net), which is generally representative of the market sectors or types of investments in which the Fund invests, consists of international stocks representing the developed world outside of North America. |
5. | The Conservative Allocation Composite Index, which is generally representative of the market sectors or types of investments in which the Fund invests, consists of the Bloomberg U.S. Aggregate Bond Index, the S&P 500® Index and the MSCI EAFE® Index (Net) weighted 60%, 30% and 10%, respectively. |
6. | The Morningstar Moderately Conservative Allocation Category Average is a representative of funds in allocation categories that seek to provide both income and capital appreciation by primarily investing in multiple asset classes, including stocks, bonds, and cash. These moderately conservative strategies prioritize preservation of capital over appreciation. They typically expect volatility similar to a strategic equity exposure between 30% and 50%. Results are based on average total returns of similar funds with all dividends 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,108.10 | $1.94 | $1,023.02 | $1.86 | 0.37% |
Investor Class Shares | $1,000.00 | $1,106.30 | $2.88 | $1,022.13 | $2.77 | 0.55% |
Class B Shares | $1,000.00 | $1,103.00 | $6.80 | $1,018.40 | $6.52 | 1.30% |
Class C Shares | $1,000.00 | $1,103.00 | $6.80 | $1,018.40 | $6.52 | 1.30% |
Class I Shares | $1,000.00 | $1,109.00 | $0.63 | $1,024.27 | $0.60 | 0.12% |
SIMPLE Class Shares | $1,000.00 | $1,106.30 | $3.25 | $1,021.78 | $3.12 | 0.62% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Asset Diversification as of April 30, 2024 (Unaudited)
Equity Funds | 37.6% |
Fixed Income Funds | 52.5 |
Short-Term Investment | 8.9 |
Other Assets, Less Liabilities | 1.0 |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund’s holdings are subject to change.
8 | MainStay Conservative Allocation Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Affiliated Investment Companies 90.1% |
Equity Funds 37.6% |
IQ 500 International ETF | 146,057 | $ 4,869,672 |
IQ Candriam International Equity ETF | 168,220 | 4,843,659 |
IQ Candriam U.S. Large Cap Equity ETF | 236,182 | 10,088,514 |
IQ Candriam U.S. Mid Cap Equity ETF | 254,589 | 7,591,666 |
IQ CBRE NextGen Real Estate ETF (a) | 448,185 | 8,259,243 |
IQ FTSE International Equity Currency Neutral ETF | 295,306 | 7,751,783 |
IQ Winslow Large Cap Growth ETF (a) | 42,374 | 1,668,561 |
MainStay Candriam Emerging Markets Equity Fund Class R6 | 610,307 | 5,899,590 |
MainStay Epoch Capital Growth Fund Class I | 91,920 | 1,321,557 |
MainStay Epoch International Choice Fund Class I | 121,191 | 4,824,692 |
MainStay Epoch U.S. Equity Yield Fund Class R6 (a) | 444,037 | 9,190,404 |
MainStay Fiera SMID Growth Fund Class R6 | 464,019 | 7,839,883 |
MainStay MacKay Convertible Fund Class I | 427,305 | 7,733,578 |
MainStay PineStone International Equity Fund Class R6 | 288,626 | 4,655,024 |
MainStay PineStone U.S. Equity Fund Class R6 | 550,211 | 9,592,053 |
MainStay Winslow Large Cap Growth Fund Class R6 | 743,858 | 8,717,274 |
MainStay WMC Enduring Capital Fund Class R6 (a) | 237,652 | 8,503,000 |
MainStay WMC Growth Fund Class R6 (a) | 225,173 | 10,173,310 |
MainStay WMC International Research Equity Fund Class I | 655,174 | 4,955,079 |
MainStay WMC Small Companies Fund Class I (a) | 270,533 | 6,300,196 |
MainStay WMC Value Fund Class R6 | 281,540 | 8,596,131 |
Total Equity Funds (Cost $117,782,283) | | 143,374,869 |
Fixed Income Funds 52.5% |
IQ MacKay ESG Core Plus Bond ETF (a) | 2,848,007 | 58,309,526 |
IQ Mackay ESG High Income ETF (a) | 245,215 | 6,392,755 |
MainStay Floating Rate Fund Class R6 (a) | 2,221,104 | 19,711,630 |
MainStay MacKay High Yield Corporate Bond Fund Class R6 | 1,266,462 | 6,461,998 |
MainStay MacKay Short Duration High Income Fund Class I | 1,784,224 | 16,839,864 |
MainStay MacKay Total Return Bond Fund Class R6 (a) | 6,655,088 | 58,582,079 |
| Shares | | Value |
|
Fixed Income Funds (continued) |
MainStay Mackay U.S. Infrastructure Bond Fund Class R6 (a) | 4,000,881 | | $ 29,457,287 |
MainStay Short Term Bond Fund Class I (a) | 446,219 | | 4,020,567 |
Total Fixed Income Funds (Cost $212,660,576) | | | 199,775,706 |
Total Affiliated Investment Companies (Cost $330,442,859) | | | 343,150,575 |
Short-Term Investment 8.9% |
Affiliated Investment Company 8.9% |
MainStay U.S. Government Liquidity Fund, 5.242% (b) | 33,950,436 | | 33,950,436 |
Total Short-Term Investment (Cost $33,950,436) | 8.9% | | 33,950,436 |
Total Investments (Cost $364,393,295) | 99.0% | | 377,101,011 |
Other Assets, Less Liabilities | 1.0 | | 3,855,468 |
Net Assets | 100.0% | | $ 380,956,479 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | As of April 30, 2024, the Fund's ownership exceeds 5% of the outstanding shares of the Underlying Fund's share class. |
(b) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
IQ 500 International ETF | $ 6,173 | $ 38 | $ (2,080) | $ 291 | $ 448 | $ 4,870 | $ 99 | $ — | 146 |
IQ Candriam International Equity ETF | 6,085 | — | (2,168) | 578 | 349 | 4,844 | 53 | — | 168 |
IQ Candriam U.S. Large Cap Equity ETF | 10,202 | 145 | (1,938) | 651 | 1,028 | 10,088 | 63 | — | 236 |
IQ Candriam U.S. Mid Cap Equity ETF | 6,126 | 1,005 | (687) | 40 | 1,108 | 7,592 | 47 | — | 255 |
IQ CBRE NextGen Real Estate ETF | — | 8,840 | (245) | 6 | (342) | 8,259 | 95 | — | 448 |
IQ FTSE International Equity Currency Neutral ETF | 7,363 | — | (806) | 179 | 1,016 | 7,752 | 73 | — | 295 |
IQ MacKay ESG Core Plus Bond ETF | 71,018 | — | (16,021) | (2,389) | 5,701 | 58,309 | 1,789 | — | 2,848 |
IQ Mackay ESG High Income ETF | 6,205 | 94 | (163) | 2 | 255 | 6,393 | 237 | 5 | 245 |
IQ U.S. Large Cap ETF | 7,594 | — | (8,108) | 2,865 | (2,351) | — | 19 | — | — |
IQ U.S. Small Cap ETF | 3,873 | 124 | (4,896) | 1,818 | (919) | — | 35 | — | — |
IQ Winslow Large Cap Growth ETF | 1,257 | 55 | — | — | 357 | 1,669 | —(a) | — | 42 |
MainStay Candriam Emerging Markets Equity Fund Class R6 | 5,424 | 84 | (415) | (56) | 863 | 5,900 | 66 | — | 610 |
MainStay Epoch Capital Growth Fund Class I | 1,277 | 8 | (213) | 13 | 236 | 1,321 | 8 | —(a) | 92 |
MainStay Epoch International Choice Fund Class I | 3,621 | 925 | (205) | 39 | 445 | 4,825 | 69 | — | 121 |
MainStay Epoch U.S. Equity Yield Fund Class R6 | 7,756 | 1,722 | (1,210) | 204 | 718 | 9,190 | 115 | 260 | 444 |
MainStay Fiera SMID Growth Fund Class R6 | 6,061 | 1,191 | (607) | 47 | 1,148 | 7,840 | — | 177 | 464 |
MainStay Floating Rate Fund Class R6 | 20,710 | 1,277 | (2,561) | (67) | 353 | 19,712 | 910 | — | 2,221 |
MainStay MacKay Convertible Fund Class I | — | 7,874 | (91) | 1 | (50) | 7,734 | 19 | — | 427 |
MainStay MacKay High Yield Corporate Bond Fund Class R6 | 6,224 | 255 | (282) | (1) | 266 | 6,462 | 217 | — | 1,266 |
MainStay MacKay Short Duration High Income Fund Class I (b) | 15,854 | 730 | (190) | (8) | 454 | 16,840 | 532 | — | 1,784 |
MainStay MacKay Total Return Bond Fund Class R6 | 71,122 | 1,683 | (18,235) | (3,994) | 8,006 | 58,582 | 1,683 | — | 6,655 |
MainStay Mackay U.S. Infrastructure Bond Fund Class R6 | — | 29,835 | — | — | (378) | 29,457 | 397 | — | 4,001 |
MainStay PineStone International Equity Fund Class R6 | 3,635 | 899 | (525) | 25 | 621 | 4,655 | 19 | — | 289 |
MainStay PineStone U.S. Equity Fund Class R6 | 7,317 | 1,603 | (246) | 13 | 905 | 9,592 | 22 | 7 | 550 |
MainStay S&P 500 Index Fund Class I | 5,599 | 255 | (6,510) | 2,673 | (2,017) | — | 79 | 176 | — |
MainStay Short Term Bond Fund Class I | 7,526 | 308 | (3,884) | (29) | 100 | 4,021 | 186 | — | 446 |
MainStay U.S. Government Liquidity Fund | 40,309 | 34,691 | (41,050) | — | — | 33,950 | 992 | — | 33,950 |
MainStay Winslow Large Cap Growth Fund Class R6 | 9,730 | 925 | (3,634) | 752 | 944 | 8,717 | — | 926 | 744 |
MainStay WMC Enduring Capital Fund Class R6 | 7,009 | 1,346 | (1,140) | 19 | 1,269 | 8,503 | 74 | — | 238 |
MainStay WMC Growth Fund Class R6 | 10,237 | 7 | (2,618) | 25 | 2,522 | 10,173 | — | — | 225 |
MainStay WMC International Research Equity Fund Class I | 3,641 | 929 | (207) | 5 | 587 | 4,955 | 83 | — | 655 |
MainStay WMC Small Companies Fund Class I | 4,133 | 1,824 | (608) | 70 | 881 | 6,300 | 17 | — | 271 |
MainStay WMC Value Fund Class R6 | 6,971 | 1,938 | (935) | 3 | 619 | 8,596 | 122 | 216 | 282 |
| $370,052 | $100,610 | $(122,478) | $ 3,775 | $25,142 | $377,101 | $8,120 | $1,767 | |
| |
(a) | Less than $500. |
(b) | Prior to February 28, 2024, known as MainStay MacKay Short Duration High Yield Fund Class I. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay Conservative Allocation Fund |
Swap Contracts
Open OTC total return equity swap contracts as of April 30, 2024 were as follows1:
Swap Counterparty | Reference Obligation | Floating Rate2 | Termination Date(s) | Payment Frequency Paid/ Received | Notional Amount Long/ (Short) (000)3 | Unrealized Appreciation/ (Depreciation)4 |
Citibank NA | Citi Leveraged Loan Basket | 1 day FEDF minus 0.20% | 12/3/24 | Daily | (5,415) | $ — |
Citibank NA | Citi Zombie Company Basket | 1 day FEDF minus 0.50% | 12/3/24 | Daily | (6,373) | — |
JPMorgan Chase Bank NA | Global X Uranium ETF | 1 day FEDF plus 0.50% | 10/8/24 - 11/12/24 | Daily | 8,950 | — |
Citibank NA | iShares 20+ Year Treasury Bond ETF | 1 day FEDF plus 0.60% | 12/3/24 | Daily | 18,883 | — |
Citibank NA | iShares MSCI China ETF | 1 day FEDF minus 0.56% | 12/3/24 | Daily | (2,134) | — |
Citibank NA | iShares MSCI EAFE ETF | 1 day FEDF minus 1.25% | 12/3/24 | Daily | (19,089) | — |
Citibank NA | iShares MSCI Emerging Markets ex China ETF | 1 day FEDF plus 0.75% | 12/3/24 | Daily | 7,667 | — |
Citibank NA | iShares MSCI India ETF | 1 day FEDF plus 0.40% | 12/3/24 | Daily | 4,183 | — |
JPMorgan Chase Bank NA | iShares MSCI Japan ETF | 1 day FEDF plus 0.15% - plus 0.55% | 5/7/24 - 4/24/25 | Daily | 11,283 | — |
JPMorgan Chase Bank NA | JPNYOIH Index | 1 day FEDF plus 0.48% | 2/14/25 | Daily | 3,713 | — |
JPMorgan Chase Bank NA | Russell 2000 Total Return Index | 1 day FEDF minus 0.15% - plus 0.13% | 5/7/24 - 4/9/25 | Daily | (15,827) | — |
JPMorgan Chase Bank NA | S&P 500 Equal Weight | 1 day FEDF plus 0.47% - plus 0.51% | 5/7/24 | Daily | 5,936 | — |
Citibank NA | S&P 500 Total Return Index | 1 day FEDF plus 0.58% | 12/3/24 | Daily | 11,105 | — |
Citibank NA | S&P Midcap 400 Total Return Index | 1 day FEDF plus 0.35% | 12/3/24 | Daily | 2,500 | — |
Citibank NA | S&P Small Cap 600 Total Return Index | 1 day FEDF plus 0.45% | 12/3/24 | Daily | 18,934 | — |
Citibank NA | Vanguard FTSE Europe ETF | 1 day FEDF minus 0.50% | 12/3/24 | Daily | (4,114) | — |
| | | | | | $ — |
The following table represents the basket holdings underlying the total return swap with Citi Leveraged Loan Basket as of April 30, 2024.
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
AerCap Holdings NV | (1,878) | (250,881) | — | 4.63 |
Apollo Commercial Real Estate Finance, Inc. | (266) | (35,570) | — | 0.66 |
Atlantica Sustainable Infrastructure plc | (185) | (24,695) | — | 0.46 |
Brandywine Realty Trust | (302) | (40,400) | — | 0.75 |
Carnival Corp. | (4,479) | (598,324) | — | 11.05 |
Chart Industries, Inc. | (1,650) | (220,425) | — | 4.07 |
Coherent Corp. | (1,022) | (136,536) | — | 2.52 |
CommScope Holding Co, Inc. | (31) | (4,141) | — | 0.08 |
Crane NXT Co | (1,203) | (160,744) | — | 2.97 |
Cushman & Wakefield plc | (341) | (45,503) | — | 0.84 |
Delta Air Lines, Inc. | (4,425) | (591,196) | — | 10.92 |
Designer Brands, Inc. | (267) | (35,669) | — | 0.66 |
DigitalBridge Group, Inc. | (471) | (62,915) | — | 1.16 |
Elanco Animal Health, Inc. | (1,693) | (226,176) | — | 4.18 |
Entegris, Inc. | (2,724) | (363,844) | — | 6.72 |
Fidelity National Information Services, Inc. | (3,803) | (508,096) | — | 9.38 |
Hanesbrands, Inc. | (800) | (106,806) | — | 1.97 |
JetBlue Airways Corp. | (585) | (78,197) | — | 1.44 |
Lumen Technologies, Inc. | (650) | (86,864) | — | 1.60 |
MKS Instruments, Inc. | (967) | (129,191) | — | 2.39 |
Oatly Group AB | (76) | (10,175) | — | 0.19 |
Opendoor Technologies, Inc. | (578) | (77,202) | — | 1.43 |
Par Pacific Holdings, Inc. | (396) | (52,885) | — | 0.98 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
PureCycle Technologies, Inc. | (175) | (23,416) | — | 0.43 |
Scorpio Tankers, Inc. | (1,214) | (162,212) | — | 3.00 |
Topgolf Callaway Brands Corp. | (366) | (48,923) | — | 0.90 |
Uber Technologies, Inc. | (6,461) | (863,175) | — | 15.94 |
United Airlines Holdings, Inc. | (3,523) | (470,643) | — | 8.69 |
The following table represents the basket holdings underlying the total return swap with Citi Zombie Company Basket as of April 30, 2024.
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
AppLovin Corp. | (3,008) | (332,360) | — | 5.22 |
Array Technologies Inc. | (1,071) | (118,309) | — | 1.86 |
Asana Inc. | (616) | (68,061) | — | 1.07 |
BILL Holdings Inc. | (2,169) | (239,609) | — | 3.76 |
BioCryst Pharmaceuticals Inc. | (170) | (18,736) | — | 0.29 |
Bloom Energy Corp. | (523) | (57,837) | — | 0.91 |
Bridgebio Pharma Inc. | (1,565) | (172,873) | — | 2.71 |
Carnival Corp. | (3,963) | (437,854) | — | 6.87 |
Children's Place Inc./The | (83) | (9,154) | — | 0.14 |
Cinemark Holdings Inc. | (798) | (88,194) | — | 1.38 |
Coeur Mining Inc. | (432) | (47,765) | — | 0.75 |
Cytokinetics Inc. | (1,251) | (138,198) | — | 2.17 |
DigitalBridge Group, Inc. | (589) | (65,038) | — | 1.02 |
Emergent BioSolutions Inc. | (69) | (7,666) | — | 0.12 |
Enviva Inc. | (9) | (1,046) | — | 0.02 |
Exact Sciences Corp. | (1,821) | (201,201) | — | 3.16 |
Fastly Inc. | (800) | (88,377) | — | 1.39 |
Gap Inc./The | (3,244) | (358,424) | — | 5.62 |
Guardant Health Inc. | (609) | (67,247) | — | 1.06 |
IAC Inc. | (587) | (64,873) | — | 1.02 |
Infinera Corp. | (209) | (23,038) | — | 0.36 |
Insmed Inc. | (538) | (59,461) | — | 0.93 |
JetBlue Airways Corp. | (732) | (80,836) | — | 1.27 |
Kyndryl Holdings Inc. | (490) | (54,166) | — | 0.85 |
Lyft Inc. | (4,057) | (448,241) | — | 7.03 |
NeoGenomics Inc. | (389) | (42,992) | — | 0.67 |
Oscar Health Inc. | (2,096) | (231,593) | — | 3.63 |
Pacific Biosciences of California Inc. | (108) | (11,894) | — | 0.19 |
Peloton Interactive Inc. | (428) | (47,258) | — | 0.74 |
Q2 Holdings Inc. | (768) | (84,881) | — | 1.33 |
Redfin Corp. | (267) | (29,450) | — | 0.46 |
Revance Therapeutics Inc. | (72) | (7,946) | — | 0.13 |
RingCentral Inc. | (1,107) | (122,364) | — | 1.92 |
Rivian Automotive Inc. | (1,621) | (179,105) | — | 2.81 |
Royal Caribbean Cruises Ltd. | (5,909) | (652,879) | — | 10.24 |
Scotts Miracle-Gro Co/The | (908) | (100,274) | — | 1.57 |
Spirit AeroSystems Holdings Inc. | (788) | (87,069) | — | 1.37 |
Spirit Airlines Inc. | (89) | (9,822) | — | 0.15 |
Sweetgreen Inc. | (864) | (95,482) | — | 1.50 |
TG Therapeutics Inc. | (810) | (89,465) | — | 1.40 |
Twist Bioscience Corp. | (862) | (95,292) | — | 1.50 |
Vistra Corp. | (4,748) | (524,646) | — | 8.23 |
Warner Bros Discovery Inc. | (1,323) | (146,229) | — | 2.29 |
Wix.com Ltd. | (1,270) | (140,350) | — | 2.20 |
Wolfspeed Inc. | (1,019) | (112,560) | — | 1.77 |
WW International Inc. | (184) | (20,328) | — | 0.32 |
Wynn Resorts Ltd. | (2,302) | (254,346) | — | 3.99 |
Xerox Holdings Corp. | (347) | (38,384) | — | 0.60 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay Conservative Allocation Fund |
1. | As of April 30, 2024, cash in the amount $1,350,000 was pledged to brokers for OTC swap contracts. |
2. | Fund pays the floating rate and receives the total return of the reference entity. |
3. | Notional amounts reflected as a positive value indicate a long position held by the Fund or Index and a negative value indicates a short position. |
4. | Reflects the value at reset date as of April 30, 2024. |
Abbreviation(s): |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
FEDF—Federal Funds Rate |
FTSE—Financial Times Stock Exchange |
MSCI—Morgan Stanley Capital International |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Affiliated Investment Companies | | | | | | | |
Equity Funds | $ 143,374,869 | | $ — | | $ — | | $ 143,374,869 |
Fixed Income Funds | 199,775,706 | | — | | — | | 199,775,706 |
Total Affiliated Investment Companies | 343,150,575 | | — | | — | | 343,150,575 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 33,950,436 | | — | | — | | 33,950,436 |
Total Investments in Securities | $ 377,101,011 | | $ — | | $ — | | $ 377,101,011 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in affiliated investment companies, at value (identified cost $364,393,295) | $377,101,011 |
Cash | 3,810,373 |
Cash collateral on deposit at broker for swap contracts | 1,350,000 |
Receivables: | |
Dividends | 143,240 |
Fund shares sold | 47,754 |
Manager (See Note 3) | 7,216 |
Prepaid expenses | 16 |
Other assets | 83,009 |
Total assets | 382,542,619 |
Liabilities |
Payables: | |
Dividends and interest on OTC swaps contracts | 1,182,320 |
Fund shares redeemed | 188,742 |
NYLIFE Distributors (See Note 3) | 86,280 |
Transfer agent (See Note 3) | 70,398 |
Shareholder communication | 28,472 |
Custodian | 18,181 |
Professional fees | 9,853 |
Trustees | 121 |
Accrued expenses | 1,773 |
Total liabilities | 1,586,140 |
Net assets | $380,956,479 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 33,182 |
Additional paid-in-capital | 365,714,256 |
| 365,747,438 |
Total distributable earnings (loss) | 15,209,041 |
Net assets | $380,956,479 |
Class A | |
Net assets applicable to outstanding shares | $327,432,955 |
Shares of beneficial interest outstanding | 28,506,476 |
Net asset value per share outstanding | $ 11.49 |
Maximum sales charge (3.00% of offering price) | 0.36 |
Maximum offering price per share outstanding | $ 11.85 |
Investor Class | |
Net assets applicable to outstanding shares | $ 31,566,031 |
Shares of beneficial interest outstanding | 2,749,195 |
Net asset value per share outstanding | $ 11.48 |
Maximum sales charge (2.50% of offering price) | 0.29 |
Maximum offering price per share outstanding | $ 11.77 |
Class B | |
Net assets applicable to outstanding shares | $ 2,007,315 |
Shares of beneficial interest outstanding | 178,110 |
Net asset value and offering price per share outstanding | $ 11.27 |
Class C | |
Net assets applicable to outstanding shares | $ 10,605,701 |
Shares of beneficial interest outstanding | 941,215 |
Net asset value and offering price per share outstanding | $ 11.27 |
Class I | |
Net assets applicable to outstanding shares | $ 6,557,842 |
Shares of beneficial interest outstanding | 563,885 |
Net asset value and offering price per share outstanding | $ 11.63 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 2,786,635 |
Shares of beneficial interest outstanding | 243,323 |
Net asset value and offering price per share outstanding | $ 11.45 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay Conservative Allocation Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividend distributions from affiliated investment companies | $ 8,120,438 |
Expenses | |
Distribution/Service—Class A (See Note 3) | 411,713 |
Distribution/Service—Investor Class (See Note 3) | 40,508 |
Distribution/Service—Class B (See Note 3) | 13,237 |
Distribution/Service—Class C (See Note 3) | 59,425 |
Distribution/Service—Class R2 (See Note 3)(a) | 74 |
Distribution/Service—Class R3 (See Note 3)(a) | 3,602 |
Distribution/Service—SIMPLE Class (See Note 3) | 6,388 |
Transfer agent (See Note 3) | 188,516 |
Registration | 48,867 |
Professional fees | 34,436 |
Custodian | 15,616 |
Trustees | 4,838 |
Shareholder communication | 1,621 |
Shareholder service (See Note 3) | 749 |
Miscellaneous | 10,287 |
Total expenses before waiver/reimbursement | 839,877 |
Expense waiver/reimbursement from Manager (See Note 3) | (30,653) |
Net expenses | 809,224 |
Net investment income (loss) | 7,311,214 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Affiliated investment company transactions | 3,775,203 |
Realized capital gain distributions from affiliated investment companies | 1,766,836 |
Swap transactions | 1,399,730 |
Net realized gain (loss) | 6,941,769 |
Net change in unrealized appreciation (depreciation) on: Affiliated investments companies | 25,141,646 |
Net realized and unrealized gain (loss) | 32,083,415 |
Net increase (decrease) in net assets resulting from operations | $39,394,629 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 7,311,214 | $ 13,178,524 |
Net realized gain (loss) | 6,941,769 | (10,589,000) |
Net change in unrealized appreciation (depreciation) | 25,141,646 | 7,901,408 |
Net increase (decrease) in net assets resulting from operations | 39,394,629 | 10,490,932 |
Distributions to shareholders: | | |
Class A | (4,863,537) | (9,330,355) |
Investor Class | (445,301) | (887,959) |
Class B | (24,431) | (103,952) |
Class C | (117,218) | (354,812) |
Class I | (115,708) | (221,882) |
Class R2(a) | (1,155) | (4,078) |
Class R3(a) | (17,224) | (62,481) |
SIMPLE Class | (36,139) | (43,011) |
| (5,620,713) | (11,008,530) |
Distributions to shareholders from return of capital: | | |
Class A | — | (5,483,513) |
Investor Class | — | (521,859) |
Class B | — | (61,094) |
Class C | — | (208,526) |
Class I | — | (130,401) |
Class R2 (a) | — | (2,396) |
Class R3 (a) | — | (36,720) |
SIMPLE Class | — | (25,278) |
| — | (6,469,787) |
Total distributions to shareholders | (5,620,713) | (17,478,317) |
Capital share transactions: | | |
Net proceeds from sales of shares | 14,247,600 | 28,523,895 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 5,566,256 | 17,304,759 |
Cost of shares redeemed | (43,746,330) | (71,998,268) |
Increase (decrease) in net assets derived from capital share transactions | (23,932,474) | (26,169,614) |
Net increase (decrease) in net assets | 9,841,442 | (33,156,999) |
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Net Assets |
Beginning of period | $371,115,037 | $404,272,036 |
End of period | $380,956,479 | $371,115,037 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay Conservative Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.52 | | $ 10.74 | | $ 13.53 | | $ 12.23 | | $ 11.96 | | $ 11.69 |
Net investment income (loss) (a) | 0.22 | | 0.37 | | 0.25 | | 0.22 | | 0.25 | | 0.24 |
Net realized and unrealized gain (loss) | 0.92 | | (0.10) | | (2.02) | | 1.64 | | 0.33 | | 0.69 |
Total from investment operations | 1.14 | | 0.27 | | (1.77) | | 1.86 | | 0.58 | | 0.93 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.17) | | (0.12) | | (0.44) | | (0.19) | | (0.26) | | (0.28) |
From net realized gain on investments | — | | (0.19) | | (0.58) | | (0.37) | | (0.05) | | (0.38) |
Return of capital | — | | (0.18) | | — | | — | | — | | — |
Total distributions | (0.17) | | (0.49) | | (1.02) | | (0.56) | | (0.31) | | (0.66) |
Net asset value at end of period | $ 11.49 | | $ 10.52 | | $ 10.74 | | $ 13.53 | | $ 12.23 | | $ 11.96 |
Total investment return (b) | 10.81% | | 2.41% | | (14.05)% | | 15.51% | | 5.00% | | 8.54% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.81%†† | | 3.34% | | 2.09% | | 1.67% | | 2.10% | | 2.11% |
Net expenses (c) | 0.37%†† | | 0.37% | | 0.35% | | 0.37% | | 0.37% | | 0.38% |
Portfolio turnover rate | 19% | | 19% | | 38% | | 25% | | 70% | | 46% |
Net assets at end of period (in 000’s) | $ 327,433 | | $ 312,385 | | $ 336,711 | | $ 419,554 | | $ 355,167 | | $ 334,242 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.52 | | $ 10.74 | | $ 13.53 | | $ 12.23 | | $ 11.97 | | $ 11.69 |
Net investment income (loss) (a) | 0.21 | | 0.35 | | 0.22 | | 0.20 | | 0.23 | | 0.22 |
Net realized and unrealized gain (loss) | 0.91 | | (0.11) | | (2.01) | | 1.64 | | 0.33 | | 0.70 |
Total from investment operations | 1.12 | | 0.24 | | (1.79) | | 1.84 | | 0.56 | | 0.92 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.16) | | (0.10) | | (0.42) | | (0.17) | | (0.25) | | (0.26) |
From net realized gain on investments | — | | (0.19) | | (0.58) | | (0.37) | | (0.05) | | (0.38) |
Return of capital | — | | (0.17) | | — | | — | | — | | — |
Total distributions | (0.16) | | (0.46) | | (1.00) | | (0.54) | | (0.30) | | (0.64) |
Net asset value at end of period | $ 11.48 | | $ 10.52 | | $ 10.74 | | $ 13.53 | | $ 12.23 | | $ 11.97 |
Total investment return (b) | 10.63% | | 2.22% | | (14.22)% | | 15.33% | | 4.80% | | 8.43% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.64%†† | | 3.16% | | 1.90% | | 1.49% | | 1.93% | | 1.92% |
Net expenses (c) | 0.55%†† | | 0.55% | | 0.55% | | 0.55% | | 0.55% | | 0.55% |
Expenses (before waiver/reimbursement) (c) | 0.68%†† | | 0.67% | | 0.57% | | 0.64% | | 0.61% | | 0.59% |
Portfolio turnover rate | 19% | | 19% | | 38% | | 25% | | 70% | | 46% |
Net assets at end of period (in 000's) | $ 31,566 | | $ 31,065 | | $ 33,625 | | $ 41,154 | | $ 41,762 | | $ 44,934 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class B | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.32 | | $ 10.55 | | $ 13.30 | | $ 12.07 | | $ 11.84 | | $ 11.64 |
Net investment income (loss) (a) | 0.16 | | 0.26 | | 0.13 | | 0.09 | | 0.15 | | 0.14 |
Net realized and unrealized gain (loss) | 0.90 | | (0.11) | | (1.97) | | 1.63 | | 0.31 | | 0.69 |
Total from investment operations | 1.06 | | 0.15 | | (1.84) | | 1.72 | | 0.46 | | 0.83 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.11) | | (0.05) | | (0.33) | | (0.12) | | (0.18) | | (0.25) |
From net realized gain on investments | — | | (0.19) | | (0.58) | | (0.37) | | (0.05) | | (0.38) |
Return of capital | — | | (0.14) | | — | | — | | — | | — |
Total distributions | (0.11) | | (0.38) | | (0.91) | | (0.49) | | (0.23) | | (0.63) |
Net asset value at end of period | $ 11.27 | | $ 10.32 | | $ 10.55 | | $ 13.30 | | $ 12.07 | | $ 11.84 |
Total investment return (b) | 10.30% | | 1.36% | | (14.86)% | | 14.49% | | 3.99% | | 7.61% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.96%†† | | 2.41% | | 1.13% | | 0.72% | | 1.23% | | 1.22% |
Net expenses (c) | 1.30%†† | | 1.30% | | 1.30% | | 1.30% | | 1.30% | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.43%†† | | 1.43% | | 1.32% | | 1.39% | | 1.36% | | 1.34% |
Portfolio turnover rate | 19% | | 19% | | 38% | | 25% | | 70% | | 46% |
Net assets at end of period (in 000’s) | $ 2,007 | | $ 3,153 | | $ 5,787 | | $ 11,550 | | $ 13,236 | | $ 17,273 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
18 | MainStay Conservative Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.32 | | $ 10.54 | | $ 13.29 | | $ 12.07 | | $ 11.84 | | $ 11.64 |
Net investment income (loss) (a) | 0.16 | | 0.26 | | 0.13 | | 0.09 | | 0.14 | | 0.14 |
Net realized and unrealized gain (loss) | 0.90 | | (0.10) | | (1.97) | | 1.62 | | 0.32 | | 0.69 |
Total from investment operations | 1.06 | | 0.16 | | (1.84) | | 1.71 | | 0.46 | | 0.83 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.11) | | (0.05) | | (0.33) | | (0.12) | | (0.18) | | (0.25) |
From net realized gain on investments | — | | (0.19) | | (0.58) | | (0.37) | | (0.05) | | (0.38) |
Return of capital | — | | (0.14) | | — | | — | | — | | — |
Total distributions | (0.11) | | (0.38) | | (0.91) | | (0.49) | | (0.23) | | (0.63) |
Net asset value at end of period | $ 11.27 | | $ 10.32 | | $ 10.54 | | $ 13.29 | | $ 12.07 | | $ 11.84 |
Total investment return (b) | 10.30% | | 1.45% | | (14.87)% | | 14.41% | | 3.99% | | 7.61% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.91%†† | | 2.41% | | 1.13% | | 0.73% | | 1.21% | | 1.24% |
Net expenses (c) | 1.30%†† | | 1.30% | | 1.30% | | 1.30% | | 1.30% | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.43%†† | | 1.43% | | 1.32% | | 1.39% | | 1.36% | | 1.34% |
Portfolio turnover rate | 19% | | 19% | | 38% | | 25% | | 70% | | 46% |
Net assets at end of period (in 000’s) | $ 10,606 | | $ 12,276 | | $ 18,099 | | $ 29,825 | | $ 36,802 | | $ 44,222 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
19
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.65 | | $ 10.87 | | $ 13.68 | | $ 12.36 | | $ 12.08 | | $ 11.80 |
Net investment income (loss) (a) | 0.24 | | 0.40 | | 0.28 | | 0.25 | | 0.29 | | 0.28 |
Net realized and unrealized gain (loss) | 0.92 | | (0.11) | | (2.04) | | 1.66 | | 0.33 | | 0.69 |
Total from investment operations | 1.16 | | 0.29 | | (1.76) | | 1.91 | | 0.62 | | 0.97 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.18) | | (0.14) | | (0.47) | | (0.22) | | (0.29) | | (0.31) |
From net realized gain on investments | — | | (0.19) | | (0.58) | | (0.37) | | (0.05) | | (0.38) |
Return of capital | — | | (0.18) | | — | | — | | — | | — |
Total distributions | (0.18) | | (0.51) | | (1.05) | | (0.59) | | (0.34) | | (0.69) |
Net asset value at end of period | $ 11.63 | | $ 10.65 | | $ 10.87 | | $ 13.68 | | $ 12.36 | | $ 12.08 |
Total investment return (b) | 10.90% | | 2.63% | | (13.82)% | | 15.79% | | 5.30% | | 8.91% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 4.10%†† | | 3.58% | | 2.33% | | 1.91% | | 2.40% | | 2.38% |
Net expenses (c) | 0.12%†† | | 0.12% | | 0.10% | | 0.12% | | 0.12% | | 0.13% |
Portfolio turnover rate | 19% | | 19% | | 38% | | 25% | | 70% | | 46% |
Net assets at end of period (in 000’s) | $ 6,558 | | $ 7,385 | | $ 6,412 | | $ 8,909 | | $ 7,878 | | $ 9,272 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
20 | MainStay Conservative Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 10.49 | | $ 10.71 | | $ 13.50 | | $ 12.23 | | $ 12.58** |
Net investment income (loss) (a) | 0.20 | | 0.33 | | 0.20 | | 0.17 | | 0.03 |
Net realized and unrealized gain (loss) | 0.92 | | (0.11) | | (2.02) | | 1.63 | | (0.38) |
Total from investment operations | 1.12 | | 0.22 | | (1.82) | | 1.80 | | (0.35) |
Less distributions: | | | | | | | | | |
From net investment income | (0.16) | | (0.10) | | (0.39) | | (0.16) | | — |
From net realized gain on investments | — | | (0.19) | | (0.58) | | (0.37) | | — |
Return of capital | — | | (0.15) | | — | | — | | — |
Total distributions | (0.16) | | (0.44) | | (0.97) | | (0.53) | | — |
Net asset value at end of period | $ 11.45 | | $ 10.49 | | $ 10.71 | | $ 13.50 | | $ 12.23 |
Total investment return (b) | 10.63% | | 2.04% | | (14.45)% | | 14.98% | | (2.78)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 3.55%†† | | 2.97% | | 1.74% | | 1.27% | | 1.25%†† |
Net expenses (c) | 0.62%†† | | 0.72% | | 0.80% | | 0.80% | | 0.80%†† |
Expenses (before waiver/reimbursement) (c) | 0.62%†† | | 0.72% | | 0.80% | | 0.89% | | 0.88%†† |
Portfolio turnover rate | 19% | | 19% | | 38% | | 25% | | 70% |
Net assets at end of period (in 000’s) | $ 2,787 | | $ 2,117 | | $ 1,301 | | $ 304 | | $ 27 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
21
MainStay Moderate Allocation Fund
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 3.00% Initial Sales Charge | With sales charges | 4/4/2005 | 9.66% | 6.34% | 4.47% | 4.51% | 0.83% |
| | Excluding sales charges | | 13.05 | 9.63 | 5.66 | 5.10 | 0.83 |
Investor Class Shares3, 4 | Maximum 2.50% Initial Sales Charge | With sales charges | 2/28/2008 | 10.26 | 6.66 | 4.27 | 4.32 | 1.17 |
| | Excluding sales charges | | 13.08 | 9.40 | 5.46 | 4.91 | 1.17 |
Class B Shares5 | Maximum 5.00% CDSC | With sales charges | 4/4/2005 | 7.59 | 3.59 | 4.32 | 4.13 | 1.92 |
| if Redeemed Within the First Six Years of Purchase | Excluding sales charges | | 12.59 | 8.59 | 4.66 | 4.13 | 1.92 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 4/4/2005 | 11.59 | 7.59 | 4.67 | 4.13 | 1.92 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 12.59 | 8.59 | 4.67 | 4.13 | 1.92 |
Class I Shares | No Sales Charge | | 4/4/2005 | 13.29 | 9.90 | 5.94 | 5.37 | 0.58 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 13.01 | 9.33 | N/A | 4.14 | 1.20 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to July 22, 2019, the maximum initial sales charge applicable was 5.50%, which is reflected in the applicable average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 3.00%, which is reflected in the applicable average annual total return figures shown. |
5. | Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders. |
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 Moderate Allocation Fund |
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Russell 3000® Index2 | 21.09% | 22.30% | 12.43% | 11.81% |
S&P 500® Index3 | 20.98 | 22.66 | 13.19 | 12.41 |
MSCI EAFE® Index (Net)4 | 18.63 | 9.28 | 6.18 | 4.38 |
Bloomberg U.S. Aggregate Bond Index5 | 4.97 | -1.47 | -0.16 | 1.20 |
Moderate Allocation Composite Index6 | 14.06 | 10.63 | 6.99 | 6.88 |
Morningstar Moderate Allocation Category Average7 | 13.00 | 10.46 | 6.28 | 6.07 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index, which represents a broad measure of market performance, as a replacement for the S&P 500® Index. 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. |
3. | The S&P 500® Index, which represents a broad measure of market performance, is generally representative of the market sectors or types of investments in which the Fund invests. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. |
4. | The MSCI EAFE® Index (Net), which is generally representative of the market sectors or types of investments in which the Fund invests, consists of international stocks representing the developed world outside of North America. |
5. | The Bloomberg U.S. Aggregate Bond Index, which is generally representative of the market sectors or types of investments in which the Fund invests, is a broad-based benchmark that measures the performance of 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. |
6. | The Moderate Allocation Composite Index, which is generally representative of the market sectors or types of investments in which the Fund invests, consists of the S&P 500® Index, the MSCI EAFE® Index (Net) and the Bloomberg U.S. Aggregate Bond Index weighted 45%, 15% and 40%, respectively. |
7. | The Morningstar Moderate Allocation Category Average is representative of funds in allocation categories that seek to provide both income and capital appreciation by primarily investing in multiple asset classes, including stocks, bonds, and cash. These moderate strategies seek to balance preservation of capital with appreciation. They typically expect volatility similar to a strategic equity exposure between 50% and 70%. Results are based on average total returns of similar funds with all dividends 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.
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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,130.50 | $1.80 | $1,023.17 | $1.71 | 0.34% |
Investor Class Shares | $1,000.00 | $1,130.80 | $2.91 | $1,022.13 | $2.77 | 0.55% |
Class B Shares | $1,000.00 | $1,125.90 | $6.87 | $1,018.40 | $6.52 | 1.30% |
Class C Shares | $1,000.00 | $1,125.90 | $6.87 | $1,018.40 | $6.52 | 1.30% |
Class I Shares | $1,000.00 | $1,132.90 | $0.48 | $1,024.42 | $0.45 | 0.09% |
SIMPLE Class Shares | $1,000.00 | $1,130.10 | $3.28 | $1,021.78 | $3.12 | 0.62% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
24 | MainStay Moderate Allocation Fund |
Asset Diversification as of April 30, 2024 (Unaudited)
Equity Funds | 57.6% |
Fixed Income Funds | 32.1 |
Short-Term Investment | 9.3 |
Other Assets, Less Liabilities | 1.0 |
See Portfolio of Investments beginning on page 26 for specific holdings within these categories. The Fund’s holdings are subject to change.
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Affiliated Investment Companies 89.7% |
Equity Funds 57.6% |
IQ 500 International ETF (a) | 485,169 | $ 16,175,971 |
IQ Candriam International Equity ETF (a) | 558,489 | 16,080,909 |
IQ Candriam U.S. Large Cap Equity ETF (a) | 842,326 | 35,979,955 |
IQ Candriam U.S. Mid Cap Equity ETF (a) | 752,337 | 22,434,163 |
IQ CBRE NextGen Real Estate ETF (a) | 913,911 | 16,841,735 |
IQ FTSE International Equity Currency Neutral ETF | 602,218 | 15,808,222 |
IQ Winslow Large Cap Growth ETF (a) | 141,678 | 5,578,855 |
MainStay Candriam Emerging Markets Equity Fund Class R6 (a) | 2,070,348 | 20,013,226 |
MainStay Epoch Capital Growth Fund Class I | 186,472 | 2,680,965 |
MainStay Epoch International Choice Fund Class I (a) | 405,753 | 16,153,229 |
MainStay Epoch U.S. Equity Yield Fund Class R6 (a) | 1,530,461 | 31,676,560 |
MainStay Fiera SMID Growth Fund Class R6 (a) | 1,380,981 | 23,332,495 |
MainStay MacKay Convertible Fund Class I | 871,252 | 15,768,354 |
MainStay PineStone International Equity Fund Class R6 (a) | 965,761 | 15,575,987 |
MainStay PineStone U.S. Equity Fund Class R6 (a) | 1,920,110 | 33,474,053 |
MainStay Winslow Large Cap Growth Fund Class R6 | 2,703,509 | 31,682,418 |
MainStay WMC Enduring Capital Fund Class R6 (a) | 809,171 | 28,951,502 |
MainStay WMC Growth Fund Class R6 (a) | 800,366 | 36,160,437 |
MainStay WMC International Research Equity Fund Class I (a) | 2,177,748 | 16,470,305 |
MainStay WMC Small Companies Fund Class I (a) | 703,475 | 16,382,594 |
MainStay WMC Value Fund Class R6 (a) | 957,000 | 29,219,608 |
Total Equity Funds (Cost $364,349,852) | | 446,441,543 |
Fixed Income Funds 32.1% |
IQ MacKay ESG Core Plus Bond ETF (a) | 2,938,671 | 60,165,762 |
IQ Mackay ESG High Income ETF (a) | 348,495 | 9,085,265 |
MainStay Floating Rate Fund Class R6 (a) | 2,264,570 | 20,097,377 |
MainStay MacKay High Yield Corporate Bond Fund Class R6 | 1,799,785 | 9,183,223 |
MainStay MacKay Short Duration High Income Fund Class I | 2,293,240 | 21,644,056 |
| Shares | | Value |
|
Fixed Income Funds (continued) |
MainStay MacKay Total Return Bond Fund Class R6 (a) | 6,868,109 | | $ 60,457,216 |
MainStay Mackay U.S. Infrastructure Bond Fund Class R6 (a) | 8,212,940 | | 60,469,411 |
MainStay Short Term Bond Fund Class I (a) | 910,786 | | 8,206,455 |
Total Fixed Income Funds (Cost $259,465,077) | | | 249,308,765 |
Total Affiliated Investment Companies (Cost $623,814,929) | | | 695,750,308 |
Short-Term Investment 9.3% |
Affiliated Investment Company 9.3% |
MainStay U.S. Government Liquidity Fund, 5.242% (a)(b) | 72,251,629 | | 72,251,629 |
Total Short-Term Investment (Cost $72,251,629) | 9.3% | | 72,251,629 |
Total Investments (Cost $696,066,558) | 99.0% | | 768,001,937 |
Other Assets, Less Liabilities | 1.0 | | 7,853,428 |
Net Assets | 100.0% | | $ 775,855,365 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | As of April 30, 2024, the Fund's ownership exceeds 5% of the outstanding shares of the Underlying Fund's share class. |
(b) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
26 | MainStay Moderate Allocation Fund |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
IQ 500 International ETF | $ 17,696 | $ 443 | $ (4,136) | $ 504 | $ 1,669 | $ 16,176 | $ 288 | $ — | 485 |
IQ Candriam International Equity ETF | 17,443 | 25 | (4,070) | 653 | 2,030 | 16,081 | 161 | — | 558 |
IQ Candriam U.S. Large Cap Equity ETF | 33,555 | 526 | (3,716) | 1,032 | 4,583 | 35,980 | 223 | — | 842 |
IQ Candriam U.S. Mid Cap Equity ETF | 17,169 | 3,683 | (1,616) | 93 | 3,105 | 22,434 | 135 | — | 752 |
IQ CBRE NextGen Real Estate ETF | — | 17,631 | (91) | 2 | (700) | 16,842 | 191 | — | 914 |
IQ FTSE International Equity Currency Neutral ETF | 14,258 | 7 | (802) | 187 | 2,158 | 15,808 | 143 | — | 602 |
IQ MacKay ESG Core Plus Bond ETF | 83,245 | — | (26,944) | (3,497) | 7,362 | 60,166 | 1,966 | — | 2,939 |
IQ Mackay ESG High Income ETF | 8,375 | 409 | (42) | —(a) | 343 | 9,085 | 327 | 7 | 348 |
IQ U.S. Large Cap ETF | 27,017 | — | (28,862) | 9,292 | (7,447) | — | 72 | — | — |
IQ U.S. Small Cap ETF | 8,903 | 92 | (11,016) | 3,788 | (1,767) | — | 78 | — | — |
IQ Winslow Large Cap Growth ETF | 3,918 | 557 | — | — | 1,104 | 5,579 | 1 | — | 142 |
MainStay Candriam Emerging Markets Equity Fund Class R6 | 17,503 | 699 | (831) | (243) | 2,885 | 20,013 | 214 | — | 2,070 |
MainStay Epoch Capital Growth Fund Class I | 2,474 | 17 | (295) | 21 | 464 | 2,681 | 16 | 1 | 186 |
MainStay Epoch International Choice Fund Class I | 12,628 | 2,173 | (338) | 4 | 1,686 | 16,153 | 240 | — | 406 |
MainStay Epoch U.S. Equity Yield Fund Class R6 | 27,672 | 3,137 | (2,507) | 51 | 3,324 | 31,677 | 405 | 924 | 1,530 |
MainStay Fiera SMID Growth Fund Class R6 | 16,919 | 4,751 | (1,714) | 91 | 3,286 | 23,333 | — | 496 | 1,381 |
MainStay Floating Rate Fund Class R6 | 21,876 | 1,994 | (4,078) | (109) | 414 | 20,097 | 979 | — | 2,265 |
MainStay MacKay Convertible Fund Class I | — | 15,958 | (90) | 1 | (101) | 15,768 | 38 | — | 871 |
MainStay MacKay High Yield Corporate Bond Fund Class R6 | 8,401 | 538 | (114) | (2) | 360 | 9,183 | 302 | — | 1,800 |
MainStay MacKay Short Duration High Income Fund Class I (b) | 19,738 | 1,436 | (85) | (4) | 559 | 21,644 | 678 | — | 2,293 |
MainStay MacKay Total Return Bond Fund Class R6 | 83,367 | 1,807 | (29,417) | (6,449) | 11,149 | 60,457 | 1,808 | — | 6,868 |
MainStay Mackay U.S. Infrastructure Bond Fund Class R6 | — | 61,221 | — | — | (752) | 60,469 | 823 | — | 8,213 |
MainStay PineStone International Equity Fund Class R6 | 12,717 | 1,932 | (1,396) | 77 | 2,246 | 15,576 | 68 | — | 966 |
MainStay PineStone U.S. Equity Fund Class R6 | 14,166 | 18,475 | (1,134) | 19 | 1,948 | 33,474 | 44 | 14 | 1,920 |
MainStay S&P 500 Index Fund Class I | 11,074 | 506 | (12,901) | 5,271 | (3,950) | — | 157 | 348 | — |
MainStay Short Term Bond Fund Class I | 14,574 | 1,262 | (7,761) | (58) | 190 | 8,207 | 372 | — | 911 |
MainStay U.S. Government Liquidity Fund | 79,197 | 65,865 | (72,810) | — | — | 72,252 | 2,055 | — | 72,252 |
MainStay Winslow Large Cap Growth Fund Class R6 | 33,864 | 3,228 | (11,448) | 2,120 | 3,918 | 31,682 | — | 3,229 | 2,704 |
MainStay WMC Enduring Capital Fund Class R6 | 24,667 | 1,754 | (2,120) | 73 | 4,578 | 28,952 | 265 | — | 809 |
MainStay WMC Growth Fund Class R6 | 34,826 | — | (7,512) | 75 | 8,771 | 36,160 | — | — | 800 |
MainStay WMC International Research Equity Fund Class I | 12,698 | 2,358 | (630) | 33 | 2,011 | 16,470 | 288 | — | 2,178 |
MainStay WMC Small Companies Fund Class I | 10,382 | 5,564 | (1,835) | 222 | 2,050 | 16,383 | 43 | — | 703 |
MainStay WMC Value Fund Class R6 | 24,549 | 3,555 | (1,152) | (36) | 2,304 | 29,220 | 429 | 758 | 957 |
| $ 714,871 | $221,603 | $(241,463) | $13,211 | $ 59,780 | $ 768,002 | $12,809 | $5,777 | |
| |
(a) | Less than $500. |
(b) | Prior to February 28, 2024, known as MainStay MacKay Short Duration High Yield Fund Class I. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
27
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Swap Contracts
Open OTC total return equity swap contracts as of April 30, 2024 were as follows1:
Swap Counterparty | Reference Obligation | Floating Rate2 | Termination Date(s) | Payment Frequency Paid/ Received | Notional Amount Long/ (Short) (000)3 | Unrealized Appreciation/ (Depreciation)4 |
Citibank NA | Citi Leveraged Loan Basket | 1 day FEDF minus 0.20% | 12/3/24 | Daily | (10,203) | $ — |
Citibank NA | Citi Zombie Company Basket | 1 day FEDF minus 0.50% | 12/3/24 | Daily | (12,283) | — |
JPMorgan Chase Bank NA | Global X Uranium ETF | 1 day FEDF plus 0.50% | 10/8/24- 11/12/24 | Daily | 18,253 | — |
Citibank NA | iShares 20+ Year Treasury Bond ETF | 1 day FEDF plus 0.60% | 12/3/24 | Daily | 38,481 | — |
Citibank NA | iShares MSCI China ETF | 1 day FEDF minus 0.56% | 12/3/24 | Daily | (8,607) | — |
Citibank NA | iShares MSCI EAFE ETF | 1 day FEDF minus 1.25% | 12/3/24 | Daily | (38,922) | — |
Citibank NA | iShares MSCI Emerging Markets ex China ETF | 1 day FEDF plus 0.75% | 12/3/24 | Daily | 19,538 | — |
Citibank NA | iShares MSCI India ETF | 1 day FEDF plus 0.40% | 12/3/24 | Daily | 8,391 | — |
JPMorgan Chase Bank NA | iShares MSCI Japan ETF | 1 day FEDF plus 0.15% - plus 0.55% | 5/7/24 -4/24/25 | Daily | 22,868 | — |
JPMorgan Chase Bank NA | J.P. Morgan IDEX Pure Size Short Index | 1 day FEDF plus 0.13% | 6/20/24 | Daily | (197) | — |
JPMorgan Chase Bank NA | JPNYOIH Index | 1 day FEDF plus 0.48% | 2/14/25 | Daily | 7,571 | — |
JPMorgan Chase Bank NA | Russell 2000 Total Return Index | 1 day FEDF minus 0.15% - plus 0.13% | 5/7/24-4/9/25 | Daily | (33,186) | — |
JPMorgan Chase Bank NA | S&P 500 Equal Weight | 1 day FEDF plus 0.47% - plus 0.51% | 5/7/24 | Daily | 11,975 | — |
Citibank NA | S&P 500 Total Return Index | 1 day FEDF plus 0.58% | 12/3/24 | Daily | 21,213 | — |
Citibank NA | S&P Midcap 400 Total Return Index | 1 day FEDF plus 0.35% | 12/3/24 | Daily | 6,792 | — |
Citibank NA | S&P Small Cap 600 Total Return Index | 1 day FEDF plus 0.45% | 12/3/24 | Daily | 38,608 | — |
Citibank NA | Vanguard FTSE Europe ETF | 1 day FEDF minus 0.50% | 12/3/24 | Daily | (8,082) | — |
| | | | | | $ — |
The following table represents the basket holdings underlying the total return swap with Citi Leveraged Loan Basket as of April 30, 2024.
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
AerCap Holdings NV | (3,539) | (472,751) | — | 4.63 |
Apollo Commercial Real Estate Finance, Inc. | (502) | (67,027) | — | 0.66 |
Atlantica Sustainable Infrastructure plc | (348) | (46,535) | — | 0.46 |
Brandywine Realty Trust | (570) | (76,129) | — | 0.75 |
Carnival Corp. | (8,440) | (1,127,461) | — | 11.05 |
Chart Industries, Inc. | (3,109) | (415,362) | — | 4.07 |
Coherent Corp. | (1,926) | (257,283) | — | 2.52 |
CommScope Holding Co, Inc. | (58) | (7,804) | — | 0.08 |
Crane NXT Co | (2,267) | (302,900) | — | 2.97 |
Cushman & Wakefield plc | (642) | (85,745) | — | 0.84 |
Delta Air Lines, Inc. | (8,339) | (1,114,030) | — | 10.92 |
Designer Brands, Inc. | (503) | (67,214) | — | 0.66 |
DigitalBridge Group, Inc. | (887) | (118,554) | — | 1.16 |
Elanco Animal Health, Inc. | (3,190) | (426,198) | — | 4.18 |
Entegris, Inc. | (5,132) | (685,615) | — | 6.72 |
Fidelity National Information Services, Inc. | (7,167) | (957,439) | — | 9.38 |
Hanesbrands, Inc. | (1,507) | (201,262) | — | 1.97 |
JetBlue Airways Corp. | (1,103) | (147,351) | — | 1.44 |
Lumen Technologies, Inc. | (1,225) | (163,683) | — | 1.60 |
MKS Instruments, Inc. | (1,822) | (243,443) | — | 2.39 |
Oatly Group AB | (144) | (19,174) | — | 0.19 |
Opendoor Technologies, Inc. | (1,089) | (145,476) | — | 1.43 |
Par Pacific Holdings, Inc. | (746) | (99,655) | — | 0.98 |
PureCycle Technologies, Inc. | (330) | (44,124) | — | 0.43 |
Scorpio Tankers, Inc. | (2,288) | (305,666) | — | 3.00 |
Topgolf Callaway Brands Corp. | (690) | (92,188) | — | 0.90 |
Uber Technologies, Inc. | (12,176) | (1,626,538) | — | 15.94 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
28 | MainStay Moderate Allocation Fund |
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
United Airlines Holdings, Inc. | (6,639) | (886,864) | — | 8.69 |
The following table represents the basket holdings underlying the total return swap with Citi Zombie Company Basket as of April 30, 2024.
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
AppLovin Corp. | (5,797) | (640,548) | — | 5.22 |
Array Technologies Inc. | (2,064) | (228,014) | — | 1.86 |
Asana Inc. | (1,187) | (131,173) | — | 1.07 |
BILL Holdings Inc. | (4,179) | (461,792) | — | 3.76 |
BioCryst Pharmaceuticals Inc. | (327) | (36,110) | — | 0.29 |
Bloom Energy Corp. | (1,009) | (111,468) | — | 0.91 |
Bridgebio Pharma Inc. | (3,015) | (333,173) | — | 2.71 |
Carnival Corp. | (7,637) | (843,864) | — | 6.87 |
Children's Place Inc./The | (160) | (17,642) | — | 0.14 |
Cinemark Holdings Inc. | (1,538) | (169,973) | — | 1.38 |
Coeur Mining Inc. | (833) | (92,056) | — | 0.75 |
Cytokinetics Inc. | (2,411) | (266,345) | — | 2.17 |
DigitalBridge Group, Inc. | (1,134) | (125,345) | — | 1.02 |
Emergent BioSolutions Inc. | (134) | (14,775) | — | 0.12 |
Enviva Inc. | (18) | (2,015) | — | 0.02 |
Exact Sciences Corp. | (3,510) | (387,770) | — | 3.16 |
Fastly Inc. | (1,542) | (170,327) | — | 1.39 |
Gap Inc./The | (6,252) | (690,781) | — | 5.62 |
Guardant Health Inc. | (1,173) | (129,604) | — | 1.06 |
IAC Inc. | (1,132) | (125,028) | — | 1.02 |
Infinera Corp. | (402) | (44,401) | — | 0.36 |
Insmed Inc. | (1,037) | (114,598) | — | 0.93 |
JetBlue Airways Corp. | (1,410) | (155,793) | — | 1.27 |
Kyndryl Holdings Inc. | (945) | (104,392) | — | 0.85 |
Lyft Inc. | (7,819) | (863,883) | — | 7.03 |
NeoGenomics Inc. | (750) | (82,857) | — | 0.67 |
Oscar Health Inc. | (4,040) | (446,344) | — | 3.63 |
Pacific Biosciences of California Inc. | (207) | (22,923) | — | 0.19 |
Peloton Interactive Inc. | (824) | (91,079) | — | 0.74 |
Q2 Holdings Inc. | (1,481) | (163,588) | — | 1.33 |
Redfin Corp. | (514) | (56,758) | — | 0.46 |
Revance Therapeutics Inc. | (139) | (15,314) | — | 0.13 |
RingCentral Inc. | (2,134) | (235,830) | — | 1.92 |
Rivian Automotive Inc. | (3,124) | (345,184) | — | 2.81 |
Royal Caribbean Cruises Ltd. | (11,388) | (1,258,276) | — | 10.24 |
Scotts Miracle-Gro Co/The | (1,749) | (193,255) | — | 1.57 |
Spirit AeroSystems Holdings Inc. | (1,519) | (167,806) | — | 1.37 |
Spirit Airlines Inc. | (171) | (18,929) | — | 0.15 |
Sweetgreen Inc. | (1,665) | (184,019) | — | 1.50 |
TG Therapeutics Inc. | (1,561) | (172,423) | — | 1.40 |
Twist Bioscience Corp. | (1,662) | (183,653) | — | 1.50 |
Vistra Corp. | (9,151) | (1,011,136) | — | 8.23 |
Warner Bros Discovery Inc. | (2,551) | (281,822) | — | 2.29 |
Wix.com Ltd. | (2,448) | (270,493) | — | 2.20 |
Wolfspeed Inc. | (1,963) | (216,933) | — | 1.77 |
WW International Inc. | (355) | (39,178) | — | 0.32 |
Wynn Resorts Ltd. | (4,437) | (490,195) | — | 3.99 |
Xerox Holdings Corp. | (670) | (73,976) | — | 0.60 |
1. | As of April 30, 2024, cash in the amount $2,700,000 was pledged to brokers for OTC swap contracts. |
2. | Fund pays the floating rate and receives the total return of the reference entity. |
3. | Notional amounts reflected as a positive value indicate a long position held by the Fund or Index and a negative value indicates a short position. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
29
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
4. | Reflects the value at reset date as of April 30, 2024. |
Abbreviation(s): |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
FEDF—Federal Funds Rate |
FTSE—Financial Times Stock Exchange |
MSCI—Morgan Stanley Capital International |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Affiliated Investment Companies | | | | | | | |
Equity Funds | $ 446,441,543 | | $ — | | $ — | | $ 446,441,543 |
Fixed Income Funds | 249,308,765 | | — | | — | | 249,308,765 |
Total Affiliated Investment Companies | 695,750,308 | | — | | — | | 695,750,308 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 72,251,629 | | — | | — | | 72,251,629 |
Total Investments in Securities | $ 768,001,937 | | $ — | | $ — | | $ 768,001,937 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
30 | MainStay Moderate Allocation Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in affiliated investment companies, at value (identified cost $696,066,558) | $768,001,937 |
Cash | 7,760,941 |
Cash collateral on deposit at broker for swap contracts | 2,700,000 |
Receivables: | |
Fund shares sold | 462,298 |
Dividends | 298,023 |
Manager (See Note 3) | 15,603 |
Prepaid expenses | 8 |
Other assets | 131,847 |
Total assets | 779,370,657 |
Liabilities |
Payables: | |
Dividends and interest on OTC swaps contracts | 2,787,593 |
Fund shares redeemed | 329,483 |
NYLIFE Distributors (See Note 3) | 172,750 |
Transfer agent (See Note 3) | 142,620 |
Shareholder communication | 30,355 |
Professional fees | 28,445 |
Custodian | 22,360 |
Accrued expenses | 1,686 |
Total liabilities | 3,515,292 |
Net assets | $775,855,365 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 58,056 |
Additional paid-in-capital | 684,788,541 |
| 684,846,597 |
Total distributable earnings (loss) | 91,008,768 |
Net assets | $775,855,365 |
Class A | |
Net assets applicable to outstanding shares | $659,962,573 |
Shares of beneficial interest outstanding | 49,384,025 |
Net asset value per share outstanding | $ 13.36 |
Maximum sales charge (3.00% of offering price) | 0.41 |
Maximum offering price per share outstanding | $ 13.77 |
Investor Class | |
Net assets applicable to outstanding shares | $ 80,706,246 |
Shares of beneficial interest outstanding | 6,024,358 |
Net asset value per share outstanding | $ 13.40 |
Maximum sales charge (2.50% of offering price) | 0.34 |
Maximum offering price per share outstanding | $ 13.74 |
Class B | |
Net assets applicable to outstanding shares | $ 5,214,262 |
Shares of beneficial interest outstanding | 396,452 |
Net asset value and offering price per share outstanding | $ 13.15 |
Class C | |
Net assets applicable to outstanding shares | $ 12,576,937 |
Shares of beneficial interest outstanding | 956,592 |
Net asset value and offering price per share outstanding | $ 13.15 |
Class I | |
Net assets applicable to outstanding shares | $ 8,076,279 |
Shares of beneficial interest outstanding | 599,221 |
Net asset value and offering price per share outstanding | $ 13.48 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 9,319,068 |
Shares of beneficial interest outstanding | 695,705 |
Net asset value and offering price per share outstanding | $ 13.40 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
31
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividend distributions from affiliated investment companies | $12,808,674 |
Expenses | |
Distribution/Service—Class A (See Note 3) | 818,671 |
Distribution/Service—Investor Class (See Note 3) | 103,886 |
Distribution/Service—Class B (See Note 3) | 34,405 |
Distribution/Service—Class C (See Note 3) | 69,461 |
Distribution/Service—Class R2 (See Note 3)(a) | 118 |
Distribution/Service—Class R3 (See Note 3)(a) | 2,780 |
Distribution/Service—SIMPLE Class (See Note 3) | 20,865 |
Transfer agent (See Note 3) | 390,923 |
Registration | 51,602 |
Professional fees | 44,811 |
Custodian | 17,908 |
Trustees | 9,445 |
Shareholder communication | 2,807 |
Shareholder service (See Note 3) | 603 |
Miscellaneous | 21,884 |
Total expenses before waiver/reimbursement | 1,590,169 |
Expense waiver/reimbursement from Manager (See Note 3) | (66,204) |
Net expenses | 1,523,965 |
Net investment income (loss) | 11,284,709 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Affiliated investment company transactions | 13,211,418 |
Realized capital gain distributions from affiliated investment companies | 5,777,193 |
Swap transactions | 3,171,384 |
Net realized gain (loss) | 22,159,995 |
Net change in unrealized appreciation (depreciation) on: Affiliated investments companies | 59,779,927 |
Net realized and unrealized gain (loss) | 81,939,922 |
Net increase (decrease) in net assets resulting from operations | $93,224,631 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
32 | MainStay Moderate Allocation Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 11,284,709 | $ 19,210,300 |
Net realized gain (loss) | 22,159,995 | (17,485,145) |
Net change in unrealized appreciation (depreciation) | 59,779,927 | 22,557,022 |
Net increase (decrease) in net assets resulting from operations | 93,224,631 | 24,282,177 |
Distributions to shareholders: | | |
Class A | (2,395,326) | (33,143,840) |
Investor Class | (143,883) | (4,344,071) |
Class B | — | (609,120) |
Class C | — | (828,328) |
Class I | (48,416) | (476,779) |
Class R2(a) | (469) | (8,356) |
Class R3(a) | (276) | (80,138) |
SIMPLE Class | (1,931) | (179,559) |
Total distributions to shareholders | (2,590,301) | (39,670,191) |
Capital share transactions: | | |
Net proceeds from sales of shares | 30,801,375 | 56,971,120 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 2,570,981 | 39,401,094 |
Cost of shares redeemed | (64,363,793) | (102,134,619) |
Increase (decrease) in net assets derived from capital share transactions | (30,991,437) | (5,762,405) |
Net increase (decrease) in net assets | 59,642,893 | (21,150,419) |
Net Assets |
Beginning of period | 716,212,472 | 737,362,891 |
End of period | $775,855,365 | $ 716,212,472 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
33
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 11.86 | | $ 12.14 | | $ 15.64 | | $ 13.41 | | $ 13.28 | | $ 13.14 |
Net investment income (loss) (a) | 0.19 | | 0.32 | | 0.22 | | 0.20 | | 0.24 | | 0.23 |
Net realized and unrealized gain (loss) | 1.36 | | 0.07 | | (2.35) | | 2.83 | | 0.41 | | 0.81 |
Total from investment operations | 1.55 | | 0.39 | | (2.13) | | 3.03 | | 0.65 | | 1.04 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.05) | | (0.13) | | (0.53) | | (0.23) | | (0.26) | | (0.27) |
From net realized gain on investments | — | | (0.54) | | (0.84) | | (0.57) | | (0.26) | | (0.63) |
Total distributions | (0.05) | | (0.67) | | (1.37) | | (0.80) | | (0.52) | | (0.90) |
Net asset value at end of period | $ 13.36 | | $ 11.86 | | $ 12.14 | | $ 15.64 | | $ 13.41 | | $ 13.28 |
Total investment return (b) | 13.05% | | 3.24% | | (14.97)% | | 23.28% | | 4.96% | | 8.88% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.95%†† | | 2.59% | | 1.65% | | 1.32% | | 1.87% | | 1.82% |
Net expenses (c) | 0.34%†† | | 0.35% | | 0.34% | | 0.35% | | 0.36% | | 0.36% |
Portfolio turnover rate | 23% | | 23% | | 32% | | 29% | | 59% | | 45% |
Net assets at end of period (in 000’s) | $ 659,963 | | $ 599,019 | | $ 605,511 | | $ 721,363 | | $ 568,079 | | $ 553,530 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 11.87 | | $ 12.16 | | $ 15.65 | | $ 13.42 | | $ 13.28 | | $ 13.14 |
Net investment income (loss) (a) | 0.18 | | 0.29 | | 0.19 | | 0.17 | | 0.22 | | 0.21 |
Net realized and unrealized gain (loss) | 1.37 | | 0.06 | | (2.34) | | 2.82 | | 0.41 | | 0.81 |
Total from investment operations | 1.55 | | 0.35 | | (2.15) | | 2.99 | | 0.63 | | 1.02 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.02) | | (0.10) | | (0.50) | | (0.19) | | (0.23) | | (0.25) |
From net realized gain on investments | — | | (0.54) | | (0.84) | | (0.57) | | (0.26) | | (0.63) |
Total distributions | (0.02) | | (0.64) | | (1.34) | | (0.76) | | (0.49) | | (0.88) |
Net asset value at end of period | $ 13.40 | | $ 11.87 | | $ 12.16 | | $ 15.65 | | $ 13.42 | | $ 13.28 |
Total investment return (b) | 13.08% | | 2.92% | | (15.08)% | | 22.97% | | 4.83% | | 8.64% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.77%†† | | 2.40% | | 1.45% | | 1.12% | | 1.68% | | 1.60% |
Net expenses (c) | 0.55%†† | | 0.55% | | 0.55% | | 0.55% | | 0.55% | | 0.55% |
Expenses (before waiver/reimbursement) (c) | 0.68%†† | | 0.69% | | 0.61% | | 0.67% | | 0.66% | | 0.64% |
Portfolio turnover rate | 23% | | 23% | | 32% | | 29% | | 59% | | 45% |
Net assets at end of period (in 000's) | $ 80,706 | | $ 78,972 | | $ 84,180 | | $ 101,233 | | $ 101,831 | | $ 104,946 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
34 | MainStay Moderate Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class B | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 11.68 | | $ 11.96 | | $ 15.42 | | $ 13.23 | | $ 13.09 | | $ 12.94 |
Net investment income (loss) (a) | 0.13 | | 0.20 | | 0.09 | | 0.06 | | 0.13 | | 0.12 |
Net realized and unrealized gain (loss) | 1.34 | | 0.07 | | (2.32) | | 2.79 | | 0.39 | | 0.79 |
Total from investment operations | 1.47 | | 0.27 | | (2.23) | | 2.85 | | 0.52 | | 0.91 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.01) | | (0.39) | | (0.09) | | (0.12) | | (0.13) |
From net realized gain on investments | — | | (0.54) | | (0.84) | | (0.57) | | (0.26) | | (0.63) |
Total distributions | — | | (0.55) | | (1.23) | | (0.66) | | (0.38) | | (0.76) |
Net asset value at end of period | $ 13.15 | | $ 11.68 | | $ 11.96 | | $ 15.42 | | $ 13.23 | | $ 13.09 |
Total investment return (b) | 12.59% | | 2.21% | | (15.77)% | | 22.04% | | 4.03% | | 7.82% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.08%†† | | 1.67% | | 0.70% | | 0.43% | | 1.00% | | 0.96% |
Net expenses (c) | 1.30%†† | | 1.30% | | 1.30% | | 1.30% | | 1.30% | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.42%†† | | 1.44% | | 1.36% | | 1.42% | | 1.40% | | 1.38% |
Portfolio turnover rate | 23% | | 23% | | 32% | | 29% | | 59% | | 45% |
Net assets at end of period (in 000’s) | $ 5,214 | | $ 7,875 | | $ 14,890 | | $ 27,037 | | $ 31,682 | | $ 40,817 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 11.68 | | $ 11.96 | | $ 15.42 | | $ 13.23 | | $ 13.08 | | $ 12.93 |
Net investment income (loss) (a) | 0.13 | | 0.20 | | 0.09 | | 0.06 | | 0.13 | | 0.13 |
Net realized and unrealized gain (loss) | 1.34 | | 0.07 | | (2.32) | | 2.79 | | 0.40 | | 0.78 |
Total from investment operations | 1.47 | | 0.27 | | (2.23) | | 2.85 | | 0.53 | | 0.91 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.01) | | (0.39) | | (0.09) | | (0.12) | | (0.13) |
From net realized gain on investments | — | | (0.54) | | (0.84) | | (0.57) | | (0.26) | | (0.63) |
Total distributions | — | | (0.55) | | (1.23) | | (0.66) | | (0.38) | | (0.76) |
Net asset value at end of period | $ 13.15 | | $ 11.68 | | $ 11.96 | | $ 15.42 | | $ 13.23 | | $ 13.08 |
Total investment return (b) | 12.59% | | 2.21% | | (15.76)% | | 22.05% | | 4.11% | | 7.83% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.04%†† | | 1.66% | | 0.70% | | 0.40% | | 0.99% | | 1.00% |
Net expenses (c) | 1.30%†† | | 1.30% | | 1.30% | | 1.30% | | 1.30% | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.43%†† | | 1.44% | | 1.36% | | 1.42% | | 1.40% | | 1.38% |
Portfolio turnover rate | 23% | | 23% | | 32% | | 29% | | 59% | | 45% |
Net assets at end of period (in 000’s) | $ 12,577 | | $ 14,105 | | $ 19,531 | | $ 30,309 | | $ 35,483 | | $ 43,681 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
35
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 11.97 | | $ 12.25 | | $ 15.77 | | $ 13.52 | | $ 13.37 | | $ 13.24 |
Net investment income (loss) (a) | 0.21 | | 0.35 | | 0.26 | | 0.23 | | 0.30 | | 0.28 |
Net realized and unrealized gain (loss) | 1.38 | | 0.07 | | (2.37) | | 2.85 | | 0.40 | | 0.79 |
Total from investment operations | 1.59 | | 0.42 | | (2.11) | | 3.08 | | 0.70 | | 1.07 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.08) | | (0.16) | | (0.57) | | (0.26) | | (0.29) | | (0.31) |
From net realized gain on investments | — | | (0.54) | | (0.84) | | (0.57) | | (0.26) | | (0.63) |
Total distributions | (0.08) | | (0.70) | | (1.41) | | (0.83) | | (0.55) | | (0.94) |
Net asset value at end of period | $ 13.48 | | $ 11.97 | | $ 12.25 | | $ 15.77 | | $ 13.52 | | $ 13.37 |
Total investment return (b) | 13.29% | | 3.49% | | (14.76)% | | 23.52% | | 5.33% | | 9.04% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.20%†† | | 2.85% | | 1.91% | | 1.55% | | 2.31% | | 2.15% |
Net expenses (c) | 0.09%†† | | 0.10% | | 0.09% | | 0.10% | | 0.11% | | 0.11% |
Portfolio turnover rate | 23% | | 23% | | 32% | | 29% | | 59% | | 45% |
Net assets at end of period (in 000’s) | $ 8,076 | | $ 7,595 | | $ 8,483 | | $ 11,150 | | $ 8,586 | | $ 11,687 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
36 | MainStay Moderate Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 11.86 | | $ 12.13 | | $ 15.62 | | $ 13.42 | | $ 13.95** |
Net investment income (loss) (a) | 0.17 | | 0.27 | | 0.15 | | 0.11 | | 0.02 |
Net realized and unrealized gain (loss) | 1.37 | | 0.07 | | (2.34) | | 2.84 | | (0.55) |
Total from investment operations | 1.54 | | 0.34 | | (2.19) | | 2.95 | | (0.53) |
Less distributions: | | | | | | | | | |
From net investment income | (0.00)‡ | | (0.07) | | (0.46) | | (0.18) | | — |
From net realized gain on investments | — | | (0.54) | | (0.84) | | (0.57) | | — |
Total distributions | (0.00)‡ | | (0.61) | | (1.30) | | (0.75) | | — |
Net asset value at end of period | $ 13.40 | | $ 11.86 | | $ 12.13 | | $ 15.62 | | $ 13.42 |
Total investment return (b) | 13.01% | | 2.81% | | (15.33)% | | 22.61% | | (3.80)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 2.61%†† | | 2.16% | | 1.19% | | 0.75% | | 0.95%†† |
Net expenses (c) | 0.62%†† | | 0.72% | | 0.80% | | 0.80% | | 0.80%†† |
Expenses (before waiver/reimbursement) (c) | 0.62%†† | | 0.72% | | 0.86% | | 0.92% | | 0.93%†† |
Portfolio turnover rate | 23% | | 23% | | 32% | | 29% | | 59% |
Net assets at end of period (in 000’s) | $ 9,319 | | $ 6,734 | | $ 3,013 | | $ 853 | | $ 38 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
‡ | Less than one cent per share. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
37
MainStay Growth Allocation Fund
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 3.00% Initial Sales Charge | With sales charges | 4/4/2005 | 11.95% | 8.89% | 5.87% | 5.56% | 0.87% |
| | Excluding sales charges | | 15.41 | 12.25 | 7.08 | 6.15 | 0.87 |
Investor Class Shares3, 4 | Maximum 2.50% Initial Sales Charge | With sales charges | 2/28/2008 | 12.36 | 9.22 | 5.68 | 5.36 | 1.21 |
| | Excluding sales charges | | 15.24 | 12.02 | 6.88 | 5.96 | 1.21 |
Class B Shares5 | Maximum 5.00% CDSC | With sales charges | 4/4/2005 | 9.79 | 6.18 | 5.75 | 5.16 | 1.96 |
| if Redeemed Within the First Six Years of Purchase | Excluding sales charges | | 14.79 | 11.18 | 6.07 | 5.16 | 1.96 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 4/4/2005 | 13.87 | 10.17 | 6.08 | 5.18 | 1.96 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 14.87 | 11.17 | 6.08 | 5.18 | 1.96 |
Class I Shares | No Sales Charge | | 4/4/2005 | 15.59 | 12.56 | 7.35 | 6.43 | 0.62 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 15.18 | 11.88 | N/A | 6.33 | 1.22 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to July 22, 2019, the maximum initial sales charge applicable was 5.50%, which is reflected in the applicable average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 3.00%, which is reflected in the applicable average annual total return figures shown. |
5. | Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
38 | MainStay Growth Allocation Fund |
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Russell 3000® Index2 | 21.09% | 22.30% | 12.43% | 11.81% |
S&P 500® Index3 | 20.98 | 22.66 | 13.19 | 12.41 |
MSCI EAFE® Index (Net)4 | 18.63 | 9.28 | 6.18 | 4.38 |
Bloomberg U.S. Aggregate Bond Index5 | 4.97 | -1.47 | -0.16 | 1.20 |
Growth Allocation Composite Index6 | 17.21 | 14.88 | 9.26 | 8.67 |
Morningstar Moderately Aggressive Allocation Category Average7 | 15.76 | 12.74 | 7.07 | 6.69 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index, which represents a broad measure of market performance, as a replacement for the S&P 500® Index. 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. |
3. | The S&P 500® Index, which represents a broad measure of market performance, is generally representative of the market sectors or types of investments in which the Fund invests. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. |
4. | The MSCI EAFE® Index (Net), which is generally representative of the market sectors or types of investments in which the Fund invests, consists of international stocks representing the developed world outside of North America. |
5. | The Bloomberg U.S. Aggregate Bond Index, which is generally representative of the market sectors or types of investments in which the Fund invests, is a broad-based benchmark that measures the performance of 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. |
6. | The Growth Allocation Composite Index, which is generally representative of the market sectors or types of investments in which the Fund invests, consists of the S&P 500® Index, the MSCI EAFE® Index (Net) and the Bloomberg U.S. Aggregate Bond Index weighted 60%, 20% and 20%,respectively. |
7. | The Morningstar Moderately Aggressive Allocation Category Average is representative of funds in allocation categories that seek to provide both income and capital appreciation by primarily investing in multiple asset classes, including stocks, bonds, and cash. These moderately aggressive strategies prioritize capital appreciation over preservation. They typically expect volatility similar to a strategic equity exposure between 70% and 85%. Results are based on average total returns of similar funds with all dividends 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.
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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,154.10 | $1.87 | $1,023.12 | $1.76 | 0.35% |
Investor Class Shares | $1,000.00 | $1,152.40 | $2.94 | $1,022.13 | $2.77 | 0.55% |
Class B Shares | $1,000.00 | $1,147.90 | $6.94 | $1,018.40 | $6.52 | 1.30% |
Class C Shares | $1,000.00 | $1,148.70 | $6.95 | $1,018.40 | $6.52 | 1.30% |
Class I Shares | $1,000.00 | $1,155.90 | $0.54 | $1,024.37 | $0.50 | 0.10% |
SIMPLE Class Shares | $1,000.00 | $1,151.80 | $3.26 | $1,021.83 | $3.07 | 0.61% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
40 | MainStay Growth Allocation Fund |
Asset Diversification as of April 30, 2024 (Unaudited)
Equity Funds | 75.8% |
Fixed Income Funds | 11.9 |
Short-Term Investment | 11.4 |
Other Assets, Less Liabilities | 0.9 |
See Portfolio of Investments beginning on page 42 for specific holdings within these categories. The Fund’s holdings are subject to change.
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Affiliated Investment Companies 87.7% |
Equity Funds 75.8% |
IQ 500 International ETF (a) | 713,422 | $ 23,786,132 |
IQ Candriam International Equity ETF (a) | 817,432 | 23,536,810 |
IQ Candriam U.S. Large Cap Equity ETF (a) | 1,024,779 | 43,773,434 |
IQ Candriam U.S. Mid Cap Equity ETF (a) | 1,337,995 | 39,898,074 |
IQ CBRE NextGen Real Estate ETF (a) | 955,053 | 17,599,908 |
IQ FTSE International Equity Currency Neutral ETF | 637,614 | 16,737,368 |
IQ Winslow Large Cap Growth ETF (a) | 179,016 | 7,049,113 |
MainStay Candriam Emerging Markets Equity Fund Class R6 (a) | 3,068,212 | 29,659,181 |
MainStay Epoch Capital Growth Fund Class I | 196,583 | 2,826,336 |
MainStay Epoch International Choice Fund Class I (a) | 595,932 | 23,724,353 |
MainStay Epoch U.S. Equity Yield Fund Class R6 (a) | 2,095,537 | 43,372,177 |
MainStay Fiera SMID Growth Fund Class R6 (a) | 2,406,028 | 40,651,290 |
MainStay MacKay Convertible Fund Class I | 921,662 | 16,680,704 |
MainStay PineStone International Equity Fund Class R6 (a) | 1,416,200 | 22,840,762 |
MainStay PineStone U.S. Equity Fund Class R6 (a) | 2,472,958 | 43,112,073 |
MainStay Winslow Large Cap Growth Fund Class R6 | 3,067,401 | 35,946,872 |
MainStay WMC Enduring Capital Fund Class R6 (a) | 1,133,054 | 40,539,766 |
MainStay WMC Growth Fund Class R6 (a) | 956,096 | 43,196,330 |
MainStay WMC International Research Equity Fund Class I (a) | 3,199,340 | 24,196,612 |
MainStay WMC Small Companies Fund Class I (a) | 1,598,728 | 37,231,330 |
MainStay WMC Value Fund Class R6 (a) | 1,352,898 | 41,307,373 |
Total Equity Funds (Cost $507,611,950) | | 617,665,998 |
Fixed Income Funds 11.9% |
IQ MacKay ESG Core Plus Bond ETF | 340,708 | 6,975,588 |
IQ Mackay ESG High Income ETF (a) | 416,777 | 10,865,376 |
MainStay Floating Rate Fund Class R6 (a) | 2,395,667 | 21,260,827 |
MainStay MacKay High Yield Corporate Bond Fund Class R6 | 2,152,303 | 10,981,913 |
MainStay MacKay Short Duration High Income Fund Class I | 2,153,844 | 20,328,407 |
| Shares | | Value |
|
Fixed Income Funds (continued) |
MainStay MacKay Total Return Bond Fund Class R6 | 795,775 | | $ 7,004,887 |
MainStay Mackay U.S. Infrastructure Bond Fund Class R6 | 1,497,294 | | 11,024,126 |
MainStay Short Term Bond Fund Class I (a) | 968,261 | | 8,724,320 |
Total Fixed Income Funds (Cost $95,760,993) | | | 97,165,444 |
Total Affiliated Investment Companies (Cost $603,372,943) | | | 714,831,442 |
Short-Term Investment 11.4% |
Affiliated Investment Company 11.4% |
MainStay U.S. Government Liquidity Fund, 5.242% (a)(b) | 93,263,341 | | 93,263,341 |
Total Short-Term Investment (Cost $93,263,341) | 11.4% | | 93,263,341 |
Total Investments (Cost $696,636,284) | 99.1% | | 808,094,783 |
Other Assets, Less Liabilities | 0.9 | | 7,142,601 |
Net Assets | 100.0% | | $ 815,237,384 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | As of April 30, 2024, the Fund's ownership exceeds 5% of the outstanding shares of the Underlying Fund's share class. |
(b) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
42 | MainStay Growth Allocation Fund |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
IQ 500 International ETF | $ 24,172 | $ 1,144 | $ (4,521) | $ 423 | $ 2,568 | $ 23,786 | $ 395 | $ — | 713 |
IQ Candriam International Equity ETF | 23,825 | 42 | (3,990) | 53 | 3,607 | 23,537 | 227 | — | 817 |
IQ Candriam U.S. Large Cap Equity ETF | 40,244 | 1,237 | (4,528) | 1,107 | 5,714 | 43,774 | 277 | — | 1,025 |
IQ Candriam U.S. Mid Cap Equity ETF | 28,690 | 7,939 | (2,061) | 115 | 5,215 | 39,898 | 235 | — | 1,338 |
IQ CBRE NextGen Real Estate ETF | — | 18,580 | (254) | 6 | (732) | 17,600 | 199 | — | 955 |
IQ FTSE International Equity Currency Neutral ETF | 14,704 | 45 | (435) | 96 | 2,328 | 16,738 | 148 | — | 638 |
IQ MacKay ESG Core Plus Bond ETF | 11,197 | 343 | (5,032) | (34) | 502 | 6,976 | 215 | — | 341 |
IQ Mackay ESG High Income ETF | 9,763 | 740 | (35) | —(a) | 397 | 10,865 | 384 | 8 | 417 |
IQ U.S. Large Cap ETF | 37,807 | — | (40,215) | 12,295 | (9,887) | — | 59 | — | — |
IQ U.S. Small Cap ETF | 26,114 | 328 | (31,614) | 10,087 | (4,915) | — | 226 | — | — |
IQ Winslow Large Cap Growth ETF | 5,203 | 372 | — | — | 1,474 | 7,049 | 1 | — | 179 |
MainStay Candriam Emerging Markets Equity Fund Class R6 | 25,269 | 1,471 | (928) | (156) | 4,003 | 29,659 | 316 | — | 3,068 |
MainStay Epoch Capital Growth Fund Class I | 2,556 | 25 | (254) | 17 | 482 | 2,826 | 16 | 1 | 197 |
MainStay Epoch International Choice Fund Class I | 18,814 | 2,850 | (455) | 6 | 2,509 | 23,724 | 358 | — | 596 |
MainStay Epoch U.S. Equity Yield Fund Class R6 | 38,235 | 4,861 | (4,279) | 336 | 4,219 | 43,372 | 555 | 1,277 | 2,096 |
MainStay Fiera SMID Growth Fund Class R6 | 21,332 | 16,793 | (2,585) | 156 | 4,955 | 40,651 | — | 828 | 2,406 |
MainStay Floating Rate Fund Class R6 | 22,559 | 2,484 | (4,097) | (106) | 421 | 21,261 | 1,019 | — | 2,396 |
MainStay MacKay Convertible Fund Class I | — | 16,789 | — | — | (108) | 16,681 | 40 | — | 922 |
MainStay MacKay High Yield Corporate Bond Fund Class R6 | 9,793 | 853 | (80) | (1) | 417 | 10,982 | 356 | — | 2,152 |
MainStay MacKay Short Duration High Income Fund Class I (b) | 18,093 | 1,741 | (12) | —(a) | 507 | 20,329 | 628 | — | 2,154 |
MainStay MacKay Total Return Bond Fund Class R6 | 11,214 | 403 | (5,179) | 43 | 524 | 7,005 | 190 | — | 796 |
MainStay Mackay U.S. Infrastructure Bond Fund Class R6 | — | 11,074 | — | — | (50) | 11,024 | 201 | — | 1,497 |
MainStay PineStone International Equity Fund Class R6 | 18,957 | 2,600 | (2,186) | 122 | 3,348 | 22,841 | 101 | — | 1,416 |
MainStay PineStone U.S. Equity Fund Class R6 | 14,617 | 27,590 | (1,705) | 61 | 2,549 | 43,112 | 77 | 24 | 2,473 |
MainStay S&P 500 Index Fund Class I | 11,602 | 530 | (13,521) | 5,506 | (4,117) | — | 165 | 365 | — |
MainStay Short Term Bond Fund Class I | 15,030 | 1,728 | (8,168) | (60) | 194 | 8,724 | 388 | — | 968 |
MainStay U.S. Government Liquidity Fund | 82,409 | 77,284 | (66,430) | — | — | 93,263 | 2,145 | — | 93,263 |
MainStay Winslow Large Cap Growth Fund Class R6 | 40,662 | 3,755 | (15,832) | 3,059 | 4,303 | 35,947 | — | 3,755 | 3,067 |
MainStay WMC Enduring Capital Fund Class R6 | 35,969 | 2,362 | (4,429) | 89 | 6,549 | 40,540 | 384 | — | 1,133 |
MainStay WMC Growth Fund Class R6 | 43,185 | — | (10,910) | 202 | 10,719 | 43,196 | — | — | 956 |
MainStay WMC International Research Equity Fund Class I | 18,918 | 3,109 | (856) | 42 | 2,984 | 24,197 | 430 | — | 3,199 |
MainStay WMC Small Companies Fund Class I | 26,347 | 8,513 | (3,482) | 543 | 5,310 | 37,231 | 108 | — | 1,599 |
MainStay WMC Value Fund Class R6 | 35,945 | 5,371 | (3,264) | (106) | 3,361 | 41,307 | 629 | 1,110 | 1,353 |
| $ 733,225 | $222,956 | $(241,337) | $33,901 | $ 59,350 | $ 808,095 | $10,472 | $7,368 | |
| |
(a) | Less than $500. |
(b) | Prior to February 28, 2024, known as MainStay MacKay Short Duration High Yield Fund Class I. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
43
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Swap Contracts
Open OTC total return equity swap contracts as of April 30, 2024 were as follows1:
Swap Counterparty | Reference Obligation | Floating Rate2 | Termination Date(s) | Payment Frequency Paid/ Received | Notional Amount Long/ (Short) (000)3 | Unrealized Appreciation/ (Depreciation)4 |
Citibank NA | Citi Leveraged Loan Basket | 1 day FEDF minus 0.20% | 12/3/24 | Daily | (10,427) | $ — |
Citibank NA | Citi Zombie Company Basket | 1 day FEDF minus 0.50% | 12/3/24 | Daily | (12,648) | — |
JPMorgan Chase Bank NA | Global X Uranium ETF | 1 day FEDF plus 0.50% | 10/8/24 - 11/12/24 | Daily | 19,314 | — |
Citibank NA | iShares 20+ Year Treasury Bond ETF | 1 day FEDF plus 0.60% | 12/3/24 | Daily | 40,674 | — |
Citibank NA | iShares MSCI China ETF | 1 day FEDF minus 0.56% | 12/3/24 | Daily | (8,987) | — |
Citibank NA | iShares MSCI EAFE ETF | 1 day FEDF minus 1.25% | 12/3/24 | Daily | (41,175) | — |
Citibank NA | iShares MSCI Emerging Markets ex China ETF | 1 day FEDF plus 0.75% | 12/3/24 | Daily | 20,667 | — |
Citibank NA | iShares MSCI India ETF | 1 day FEDF plus 0.40% | 12/3/24 | Daily | 8,775 | — |
JPMorgan Chase Bank NA | iShares MSCI Japan ETF | 1 day FEDF plus 0.15% - plus 0.55% | 5/7/24 - 4/24/25 | Daily | 24,031 | — |
JPMorgan Chase Bank NA | J.P. Morgan IDEX Pure Size Short Index | 1 day FEDF plus 0.11% - plus 0.13% | 6/20/24 | Daily | (5,757) | — |
JPMorgan Chase Bank NA | JPNYOIH Index | 1 day FEDF plus 0.48% | 2/14/25 | Daily | 8,008 | — |
JPMorgan Chase Bank NA | Russell 2000 Total Return Index | 1 day FEDF minus 0.15% - plus 0.10% | 5/7/24 - 4/9/25 | Daily | (15,372) | — |
JPMorgan Chase Bank NA | S&P 500 Equal Weight | 1 day FEDF plus 0.47% - plus 0.51% | 5/7/24 | Daily | 12,541 | — |
Citibank NA | S&P 500 Total Return Index | 1 day FEDF plus 0.58% | 12/3/24 | Daily | 24,378 | — |
Citibank NA | S&P Midcap 400 Total Return Index | 1 day FEDF plus 0.35% | 12/3/24 | Daily | 8,084 | — |
Citibank NA | S&P Small Cap 600 Total Return Index | 1 day FEDF plus 0.45% | 12/3/24 | Daily | 40,843 | — |
Citibank NA | Vanguard FTSE Europe ETF | 1 day FEDF minus 0.50% | 12/3/24 | Daily | (8,389) | — |
| | | | | | $ — |
The following table represents the basket holdings underlying the total return swap with Citi Leveraged Loan Basket as of April 30, 2024.
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
AerCap Holdings NV | (3,616) | (483,088) | — | 4.63 |
Apollo Commercial Real Estate Finance, Inc. | (513) | (68,492) | — | 0.66 |
Atlantica Sustainable Infrastructure plc | (356) | (47,553) | — | 0.46 |
Brandywine Realty Trust | (582) | (77,793) | — | 0.75 |
Carnival Corp. | (8,624) | (1,152,112) | — | 11.05 |
Chart Industries, Inc. | (3,177) | (424,444) | — | 4.07 |
Coherent Corp. | (1,968) | (262,909) | — | 2.52 |
CommScope Holding Co, Inc. | (60) | (7,974) | — | 0.08 |
Crane NXT Co | (2,317) | (309,523) | — | 2.97 |
Cushman & Wakefield plc | (656) | (87,620) | — | 0.84 |
Delta Air Lines, Inc. | (8,522) | (1,138,388) | — | 10.92 |
Designer Brands, Inc. | (514) | (68,683) | — | 0.66 |
DigitalBridge Group, Inc. | (907) | (121,146) | — | 1.16 |
Elanco Animal Health, Inc. | (3,260) | (435,516) | — | 4.18 |
Entegris, Inc. | (5,244) | (700,606) | — | 6.72 |
Fidelity National Information Services, Inc. | (7,324) | (978,373) | — | 9.38 |
Hanesbrands, Inc. | (1,540) | (205,663) | — | 1.97 |
JetBlue Airways Corp. | (1,127) | (150,573) | — | 1.44 |
Lumen Technologies, Inc. | (1,252) | (167,262) | — | 1.60 |
MKS Instruments, Inc. | (1,862) | (248,766) | — | 2.39 |
Oatly Group AB | (147) | (19,594) | — | 0.19 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
44 | MainStay Growth Allocation Fund |
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
Opendoor Technologies, Inc. | (1,113) | (148,657) | — | 1.43 |
Par Pacific Holdings, Inc. | (762) | (101,834) | — | 0.98 |
PureCycle Technologies, Inc. | (338) | (45,088) | — | 0.43 |
Scorpio Tankers, Inc. | (2,338) | (312,349) | — | 3.00 |
Topgolf Callaway Brands Corp. | (705) | (94,204) | — | 0.90 |
Uber Technologies, Inc. | (12,442) | (1,662,102) | — | 15.94 |
United Airlines Holdings, Inc. | (6,784) | (906,255) | — | 8.69 |
The following table represents the basket holdings underlying the total return swap with Citi Zombie Company Basket as of April 30, 2024.
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
AppLovin Corp. | (5,970) | (659,609) | — | 5.22 |
Array Technologies Inc. | (2,125) | (234,799) | — | 1.86 |
Asana Inc. | (1,223) | (135,076) | — | 1.07 |
BILL Holdings Inc. | (4,304) | (475,534) | — | 3.76 |
BioCryst Pharmaceuticals Inc. | (337) | (37,185) | — | 0.29 |
Bloom Energy Corp. | (1,039) | (114,785) | — | 0.91 |
Bridgebio Pharma Inc. | (3,105) | (343,088) | — | 2.71 |
Carnival Corp. | (7,865) | (868,975) | — | 6.87 |
Children's Place Inc./The | (164) | (18,167) | — | 0.14 |
Cinemark Holdings Inc. | (1,584) | (175,031) | — | 1.38 |
Coeur Mining Inc. | (858) | (94,795) | — | 0.75 |
Cytokinetics Inc. | (2,482) | (274,271) | — | 2.17 |
DigitalBridge Group, Inc. | (1,168) | (129,075) | — | 1.02 |
Emergent BioSolutions Inc. | (138) | (15,215) | — | 0.12 |
Enviva Inc. | (19) | (2,075) | — | 0.02 |
Exact Sciences Corp. | (3,614) | (399,309) | — | 3.16 |
Fastly Inc. | (1,587) | (175,396) | — | 1.39 |
Gap Inc./The | (6,438) | (711,336) | — | 5.62 |
Guardant Health Inc. | (1,208) | (133,460) | — | 1.06 |
IAC Inc. | (1,165) | (128,748) | — | 1.02 |
Infinera Corp. | (414) | (45,722) | — | 0.36 |
Insmed Inc. | (1,068) | (118,008) | — | 0.93 |
JetBlue Airways Corp. | (1,452) | (160,429) | — | 1.27 |
Kyndryl Holdings Inc. | (973) | (107,499) | — | 0.85 |
Lyft Inc. | (8,051) | (889,589) | — | 7.03 |
NeoGenomics Inc. | (772) | (85,322) | — | 0.67 |
Oscar Health Inc. | (4,160) | (459,625) | — | 3.63 |
Pacific Biosciences of California Inc. | (214) | (23,605) | — | 0.19 |
Peloton Interactive Inc. | (849) | (93,789) | — | 0.74 |
Q2 Holdings Inc. | (1,525) | (168,456) | — | 1.33 |
Redfin Corp. | (529) | (58,447) | — | 0.46 |
Revance Therapeutics Inc. | (143) | (15,770) | — | 0.13 |
RingCentral Inc. | (2,198) | (242,847) | — | 1.92 |
Rivian Automotive Inc. | (3,217) | (355,456) | — | 2.81 |
Royal Caribbean Cruises Ltd. | (11,727) | (1,295,719) | — | 10.24 |
Scotts Miracle-Gro Co/The | (1,801) | (199,005) | — | 1.57 |
Spirit AeroSystems Holdings Inc. | (1,564) | (172,799) | — | 1.37 |
Spirit Airlines Inc. | (176) | (19,492) | — | 0.15 |
Sweetgreen Inc. | (1,715) | (189,495) | — | 1.50 |
TG Therapeutics Inc. | (1,607) | (177,554) | — | 1.40 |
Twist Bioscience Corp. | (1,712) | (189,118) | — | 1.50 |
Vistra Corp. | (9,424) | (1,041,224) | — | 8.23 |
Warner Bros Discovery Inc. | (2,627) | (290,209) | — | 2.29 |
Wix.com Ltd. | (2,521) | (278,542) | — | 2.20 |
Wolfspeed Inc. | (2,022) | (223,388) | — | 1.77 |
WW International Inc. | (365) | (40,344) | — | 0.32 |
Wynn Resorts Ltd. | (4,569) | (504,781) | — | 3.99 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
45
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
Xerox Holdings Corp. | (689) | (76,178) | — | 0.60 |
1. | As of April 30, 2024, cash in the amount $3,650,000 was pledged to brokers for OTC swap contracts. |
2. | Fund pays the floating rate and receives the total return of the reference entity. |
3. | Notional amounts reflected as a positive value indicate a long position held by the Fund or Index and a negative value indicates a short position. |
4. | Reflects the value at reset date as of April 30, 2024. |
Abbreviation(s): |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
FEDF—Federal Funds Rate |
FTSE—Financial Times Stock Exchange |
MSCI—Morgan Stanley Capital International |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Affiliated Investment Companies | | | | | | | |
Equity Funds | $ 617,665,998 | | $ — | | $ — | | $ 617,665,998 |
Fixed Income Funds | 97,165,444 | | — | | — | | 97,165,444 |
Total Affiliated Investment Companies | 714,831,442 | | — | | — | | 714,831,442 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 93,263,341 | | — | | — | | 93,263,341 |
Total Investments in Securities | $ 808,094,783 | | $ — | | $ — | | $ 808,094,783 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
46 | MainStay Growth Allocation Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in affiliated investment companies, at value (identified cost $696,636,284) | $808,094,783 |
Cash | 8,167,527 |
Cash collateral on deposit at broker for swap contracts | 3,650,000 |
Receivables: | |
Dividends | 317,962 |
Manager (See Note 3) | 16,404 |
Prepaid expenses | 21 |
Other assets | 88,918 |
Total assets | 820,335,615 |
Liabilities |
Payables: | |
Dividends and interest on OTC swaps contracts | 3,893,816 |
Fund shares redeemed | 757,715 |
NYLIFE Distributors (See Note 3) | 182,227 |
Transfer agent (See Note 3) | 162,400 |
Shareholder communication | 50,700 |
Professional fees | 27,609 |
Custodian | 22,784 |
Accrued expenses | 980 |
Total liabilities | 5,098,231 |
Net assets | $815,237,384 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 54,093 |
Additional paid-in-capital | 670,664,058 |
| 670,718,151 |
Total distributable earnings (loss) | 144,519,233 |
Net assets | $815,237,384 |
Class A | |
Net assets applicable to outstanding shares | $682,367,921 |
Shares of beneficial interest outstanding | 45,278,209 |
Net asset value per share outstanding | $ 15.07 |
Maximum sales charge (3.00% of offering price) | 0.47 |
Maximum offering price per share outstanding | $ 15.54 |
Investor Class | |
Net assets applicable to outstanding shares | $ 94,663,167 |
Shares of beneficial interest outstanding | 6,268,268 |
Net asset value per share outstanding | $ 15.10 |
Maximum sales charge (2.50% of offering price) | 0.39 |
Maximum offering price per share outstanding | $ 15.49 |
Class B | |
Net assets applicable to outstanding shares | $ 6,520,354 |
Shares of beneficial interest outstanding | 440,168 |
Net asset value and offering price per share outstanding | $ 14.81 |
Class C | |
Net assets applicable to outstanding shares | $ 14,085,189 |
Shares of beneficial interest outstanding | 950,562 |
Net asset value and offering price per share outstanding | $ 14.82 |
Class I | |
Net assets applicable to outstanding shares | $ 10,811,624 |
Shares of beneficial interest outstanding | 706,395 |
Net asset value and offering price per share outstanding | $ 15.31 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 6,789,129 |
Shares of beneficial interest outstanding | 449,223 |
Net asset value and offering price per share outstanding | $ 15.11 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
47
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividend distributions from affiliated investment companies | $ 10,471,990 |
Expenses | |
Distribution/Service—Class A (See Note 3) | 841,337 |
Distribution/Service—Investor Class (See Note 3) | 122,869 |
Distribution/Service—Class B (See Note 3) | 42,564 |
Distribution/Service—Class C (See Note 3) | 75,730 |
Distribution/Service—Class R2 (See Note 3)(a) | 53 |
Distribution/Service—Class R3 (See Note 3)(a) | 1,367 |
Distribution/Service—SIMPLE Class (See Note 3) | 15,151 |
Transfer agent (See Note 3) | 447,566 |
Registration | 52,381 |
Professional fees | 45,908 |
Custodian | 18,139 |
Trustees | 9,792 |
Shareholder communication | 2,865 |
Shareholder service (See Note 3) | 294 |
Miscellaneous | 17,620 |
Total expenses before waiver/reimbursement | 1,693,636 |
Expense waiver/reimbursement from Manager (See Note 3) | (75,863) |
Net expenses | 1,617,773 |
Net investment income (loss) | 8,854,217 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Affiliated investment company transactions | 33,900,670 |
Realized capital gain distributions from affiliated investment companies | 7,368,087 |
Swap transactions | 2,902,399 |
Net realized gain (loss) | 44,171,156 |
Net change in unrealized appreciation (depreciation) on: Affiliated investments companies | 59,349,560 |
Net realized and unrealized gain (loss) | 103,520,716 |
Net increase (decrease) in net assets resulting from operations | $112,374,933 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
48 | MainStay Growth Allocation Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 8,854,217 | $ 15,274,356 |
Net realized gain (loss) | 44,171,156 | (10,510,090) |
Net change in unrealized appreciation (depreciation) | 59,349,560 | 19,937,039 |
Net increase (decrease) in net assets resulting from operations | 112,374,933 | 24,701,305 |
Distributions to shareholders: | | |
Class A | (5,831,073) | (42,482,199) |
Investor Class | (657,946) | (6,720,364) |
Class B | (13,076) | (930,924) |
Class C | (22,860) | (1,187,696) |
Class I | (109,083) | (631,052) |
Class R2(a) | (522) | (5,399) |
Class R3(a) | (5,231) | (68,391) |
SIMPLE Class | (32,252) | (223,140) |
Total distributions to shareholders | (6,672,043) | (52,249,165) |
Capital share transactions: | | |
Net proceeds from sales of shares | 31,617,921 | 58,830,977 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 6,634,543 | 52,068,829 |
Cost of shares redeemed | (63,343,220) | (101,020,230) |
Increase (decrease) in net assets derived from capital share transactions | (25,090,756) | 9,879,576 |
Net increase (decrease) in net assets | 80,612,134 | (17,668,284) |
Net Assets |
Beginning of period | 734,625,250 | 752,293,534 |
End of period | $815,237,384 | $ 734,625,250 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
49
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.17 | | $ 13.71 | | $ 17.89 | | $ 14.33 | | $ 14.40 | | $ 14.76 |
Net investment income (loss) (a) | 0.16 | | 0.28 | | 0.19 | | 0.16 | | 0.24 | | 0.22 |
Net realized and unrealized gain (loss) | 1.87 | | 0.14 | | (2.56) | | 4.22 | | 0.32 | | 0.77 |
Total from investment operations | 2.03 | | 0.42 | | (2.37) | | 4.38 | | 0.56 | | 0.99 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.11) | | (0.13) | | (0.66) | | (0.17) | | (0.26) | | (0.28) |
From net realized gain on investments | (0.02) | | (0.83) | | (1.15) | | (0.65) | | (0.37) | | (1.07) |
Total distributions | (0.13) | | (0.96) | | (1.81) | | (0.82) | | (0.63) | | (1.35) |
Net asset value at end of period | $ 15.07 | | $ 13.17 | | $ 13.71 | | $ 17.89 | | $ 14.33 | | $ 14.40 |
Total investment return (b) | 15.41% | | 3.20% | | (14.90)% | | 31.45% | | 3.89% | | 8.17% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.22%†† | | 2.02% | | 1.30% | | 0.98% | | 1.69% | | 1.55% |
Net expenses (c) | 0.35%†† | | 0.35% | | 0.35% | | 0.35% | | 0.37% | | 0.37% |
Portfolio turnover rate | 20% | | 27% | | 25% | | 29% | | 47% | | 42% |
Net assets at end of period (in 000’s) | $ 682,368 | | $ 603,146 | | $ 603,691 | | $ 728,402 | | $ 542,938 | | $ 545,586 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.19 | | $ 13.73 | | $ 17.91 | | $ 14.33 | | $ 14.40 | | $ 14.76 |
Net investment income (loss) (a) | 0.15 | | 0.25 | | 0.17 | | 0.14 | | 0.21 | | 0.18 |
Net realized and unrealized gain (loss) | 1.86 | | 0.15 | | (2.58) | | 4.22 | | 0.32 | | 0.79 |
Total from investment operations | 2.01 | | 0.40 | | (2.41) | | 4.36 | | 0.53 | | 0.97 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.08) | | (0.11) | | (0.62) | | (0.13) | | (0.23) | | (0.26) |
From net realized gain on investments | (0.02) | | (0.83) | | (1.15) | | (0.65) | | (0.37) | | (1.07) |
Total distributions | (0.10) | | (0.94) | | (1.77) | | (0.78) | | (0.60) | | (1.33) |
Net asset value at end of period | $ 15.10 | | $ 13.19 | | $ 13.73 | | $ 17.91 | | $ 14.33 | | $ 14.40 |
Total investment return (b) | 15.24% | | 2.97% | | (15.05)% | | 31.27% | | 3.70% | | 7.94% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.07%†† | | 1.84% | | 1.11% | | 0.82% | | 1.54% | | 1.32% |
Net expenses (c) | 0.55%†† | | 0.55% | | 0.55% | | 0.55% | | 0.55% | | 0.55% |
Expenses (before waiver/reimbursement) (c) | 0.68%†† | | 0.69% | | 0.60% | | 0.68% | | 0.67% | | 0.68% |
Portfolio turnover rate | 20% | | 27% | | 25% | | 29% | | 47% | | 42% |
Net assets at end of period (in 000's) | $ 94,663 | | $ 92,321 | | $ 99,449 | | $ 122,265 | | $ 126,514 | | $ 139,892 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
50 | MainStay Growth Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class B | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 12.92 | | $ 13.46 | | $ 17.59 | | $ 14.10 | | $ 14.16 | | $ 14.50 |
Net investment income (loss) (a) | 0.10 | | 0.15 | | 0.06 | | 0.02 | | 0.12 | | 0.10 |
Net realized and unrealized gain (loss) | 1.81 | | 0.14 | | (2.54) | | 4.14 | | 0.30 | | 0.76 |
Total from investment operations | 1.91 | | 0.29 | | (2.48) | | 4.16 | | 0.42 | | 0.86 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | — | | (0.50) | | (0.02) | | (0.11) | | (0.13) |
From net realized gain on investments | (0.02) | | (0.83) | | (1.15) | | (0.65) | | (0.37) | | (1.07) |
Total distributions | (0.02) | | (0.83) | | (1.65) | | (0.67) | | (0.48) | | (1.20) |
Net asset value at end of period | $ 14.81 | | $ 12.92 | | $ 13.46 | | $ 17.59 | | $ 14.10 | | $ 14.16 |
Total investment return (b) | 14.79% | | 2.20% | | (15.70)% | | 30.24% | | 2.97% | | 7.14% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.38%†† | | 1.13% | | 0.37% | | 0.11% | | 0.87% | | 0.73% |
Net expenses (c) | 1.30%†† | | 1.30% | | 1.30% | | 1.30% | | 1.30% | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.41%†† | | 1.44% | | 1.35% | | 1.43% | | 1.42% | | 1.42% |
Portfolio turnover rate | 20% | | 27% | | 25% | | 29% | | 47% | | 42% |
Net assets at end of period (in 000’s) | $ 6,520 | | $ 9,587 | | $ 16,753 | | $ 30,461 | | $ 32,739 | | $ 43,800 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 12.92 | | $ 13.46 | | $ 17.59 | | $ 14.10 | | $ 14.16 | | $ 14.50 |
Net investment income (loss) (a) | 0.09 | | 0.15 | | 0.05 | | 0.02 | | 0.11 | | 0.10 |
Net realized and unrealized gain (loss) | 1.83 | | 0.14 | | (2.53) | | 4.14 | | 0.31 | | 0.76 |
Total from investment operations | 1.92 | | 0.29 | | (2.48) | | 4.16 | | 0.42 | | 0.86 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | — | | (0.50) | | (0.02) | | (0.11) | | (0.13) |
From net realized gain on investments | (0.02) | | (0.83) | | (1.15) | | (0.65) | | (0.37) | | (1.07) |
Total distributions | (0.02) | | (0.83) | | (1.65) | | (0.67) | | (0.48) | | (1.20) |
Net asset value at end of period | $ 14.82 | | $ 12.92 | | $ 13.46 | | $ 17.59 | | $ 14.10 | | $ 14.16 |
Total investment return (b) | 14.87% | | 2.19% | | (15.70)% | | 30.23% | | 2.97% | | 7.14% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.31%†† | | 1.11% | | 0.36% | | 0.09% | | 0.81% | | 0.76% |
Net expenses (c) | 1.30%†† | | 1.30% | | 1.30% | | 1.30% | | 1.30% | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.42%†† | | 1.44% | | 1.35% | | 1.43% | | 1.42% | | 1.42% |
Portfolio turnover rate | 20% | | 27% | | 25% | | 29% | | 47% | | 42% |
Net assets at end of period (in 000’s) | $ 14,085 | | $ 14,669 | | $ 20,272 | | $ 29,440 | | $ 31,564 | | $ 36,721 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
51
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.39 | | $ 13.93 | | $ 18.15 | | $ 14.52 | | $ 14.58 | | $ 14.94 |
Net investment income (loss) (a) | 0.18 | | 0.32 | | 0.23 | | 0.21 | | 0.31 | | 0.25 |
Net realized and unrealized gain (loss) | 1.90 | | 0.14 | | (2.60) | | 4.27 | | 0.30 | | 0.78 |
Total from investment operations | 2.08 | | 0.46 | | (2.37) | | 4.48 | | 0.61 | | 1.03 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.14) | | (0.17) | | (0.70) | | (0.20) | | (0.30) | | (0.32) |
From net realized gain on investments | (0.02) | | (0.83) | | (1.15) | | (0.65) | | (0.37) | | (1.07) |
Total distributions | (0.16) | | (1.00) | | (1.85) | | (0.85) | | (0.67) | | (1.39) |
Net asset value at end of period | $ 15.31 | | $ 13.39 | | $ 13.93 | | $ 18.15 | | $ 14.52 | | $ 14.58 |
Total investment return (b) | 15.59% | | 3.42% | | (14.68)% | | 31.82% | | 4.16% | | 8.40% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.46%†† | | 2.33% | | 1.51% | | 1.23% | | 2.18% | | 1.74% |
Net expenses (c) | 0.10%†† | | 0.10% | | 0.10% | | 0.10% | | 0.11% | | 0.13% |
Portfolio turnover rate | 20% | | 27% | | 25% | | 29% | | 47% | | 42% |
Net assets at end of period (in 000’s) | $ 10,812 | | $ 9,104 | | $ 7,974 | | $ 11,142 | | $ 8,063 | | $ 11,037 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
52 | MainStay Growth Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 13.19 | | $ 13.71 | | $ 17.89 | | $ 14.33 | | $ 15.03** |
Net investment income (loss) (a) | 0.14 | | 0.22 | | 0.12 | | 0.06 | | 0.02 |
Net realized and unrealized gain (loss) | 1.86 | | 0.16 | | (2.57) | | 4.25 | | (0.72) |
Total from investment operations | 2.00 | | 0.38 | | (2.45) | | 4.31 | | (0.70) |
Less distributions: | | | | | | | | | |
From net investment income | (0.06) | | (0.07) | | (0.58) | | (0.10) | | — |
From net realized gain on investments | (0.02) | | (0.83) | | (1.15) | | (0.65) | | — |
Total distributions | (0.08) | | (0.90) | | (1.73) | | (0.75) | | — |
Net asset value at end of period | $ 15.11 | | $ 13.19 | | $ 13.71 | | $ 17.89 | | $ 14.33 |
Total investment return (b) | 15.18% | | 2.84% | | (15.29)% | | 30.89% | | (4.66)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 1.91%†† | | 1.62% | | 0.79% | | 0.37% | | 0.80%†† |
Net expenses (c) | 0.61%†† | | 0.70% | | 0.80% | | 0.80% | | 0.80%†† |
Expenses (before waiver/reimbursement) (c) | 0.61%†† | | 0.70% | | 0.85% | | 0.93% | | 0.95%†† |
Portfolio turnover rate | 20% | | 27% | | 25% | | 29% | | 47% |
Net assets at end of period (in 000’s) | $ 6,789 | | $ 4,822 | | $ 3,072 | | $ 1,567 | | $ 180 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
53
MainStay Equity Allocation Fund
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 3.00% Initial Sales Charge | With sales charges | 4/4/2005 | 14.34% | 11.46% | 6.99% | 6.35% | 0.94% |
| | Excluding sales charges | | 17.87 | 14.90 | 8.20 | 6.95 | 0.94 |
Investor Class Shares3, 4 | Maximum 2.50% Initial Sales Charge | With sales charges | 2/28/2008 | 14.88 | 11.82 | 6.82 | 6.17 | 1.27 |
| | Excluding sales charges | | 17.83 | 14.69 | 8.03 | 6.78 | 1.27 |
Class B Shares5 | Maximum 5.00% CDSC | With sales charges | 4/4/2005 | 12.39 | 8.87 | 6.91 | 5.99 | 2.03 |
| if Redeemed Within the First Six Years of Purchase | Excluding sales charges | | 17.39 | 13.87 | 7.21 | 5.99 | 2.03 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 4/4/2005 | 16.35 | 12.75 | 7.21 | 5.98 | 2.02 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 17.35 | 13.75 | 7.21 | 5.98 | 2.02 |
Class I Shares | No Sales Charge | | 4/4/2005 | 18.08 | 15.18 | 8.47 | 7.22 | 0.69 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 17.76 | 14.46 | N/A | 7.69 | 1.34 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to July 22, 2019, the maximum initial sales charge applicable was 5.50%, which is reflected in the applicable average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 3.00%, which is reflected in the applicable average annual total return figures shown. |
5. | Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
54 | MainStay Equity Allocation Fund |
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Russell 3000® Index2 | 21.09% | 22.30% | 12.43% | 11.81% |
S&P 500® Index3 | 20.98 | 22.66 | 13.19 | 12.41 |
MSCI EAFE® Index (Net)4 | 18.63 | 9.28 | 6.18 | 4.38 |
Equity Allocation Composite Index5 | 20.41 | 19.23 | 11.47 | 10.41 |
Morningstar Aggressive Allocation Category Average6 | 17.57 | 14.29 | 7.74 | 7.29 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index, which represents a broad measure of market performance, as a replacement for the S&P 500® Index. 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. |
3. | The S&P 500® Index, which represents a broad measure of market performance, is generally representative of the market sectors or types of investments in which the Fund invests. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. |
4. | The MSCI EAFE® Index (Net), which is generally representative of the market sectors or types of investments in which the Fund invests, consists of international stocks representing the developed world outside of North America. |
5. | The Equity Allocation Composite Index, which is generally representative of the market sectors or types of investments in which the Fund invests, consists of the S&P 500® Index and the MSCI EAFE® Index (Net) weighted 75% and 25%, respectively. |
6. | The Morningstar Aggressive Allocation Category Average is representative of funds in allocation categories that seek to provide both income and capital appreciation by primarily investing in multiple asset classes, including stocks, bonds, and cash. These aggressive strategies typically allocate at least 10% to equities of foreign companies and prioritize capital appreciation over preservation. They typically expect volatility similar to a strategic equity exposure of more than 85%. Results are based on average total returns of similar funds with all dividends 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.
Cost in Dollars of a $1,000 Investment in MainStay Equity 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,178.70 | $2.00 | $1,023.02 | $1.86 | 0.37% |
Investor Class Shares | $1,000.00 | $1,178.30 | $2.98 | $1,022.13 | $2.77 | 0.55% |
Class B Shares | $1,000.00 | $1,173.90 | $7.03 | $1,018.40 | $6.52 | 1.30% |
Class C Shares | $1,000.00 | $1,173.50 | $7.03 | $1,018.40 | $6.52 | 1.30% |
Class I Shares | $1,000.00 | $1,180.80 | $0.65 | $1,024.27 | $0.60 | 0.12% |
SIMPLE Class Shares | $1,000.00 | $1,177.60 | $3.41 | $1,021.73 | $3.17 | 0.63% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
56 | MainStay Equity Allocation Fund |
Asset Diversification as of April 30, 2024 (Unaudited)
Equity Funds | 93.4 % |
Short-Term Investment | 6.7 |
Other Assets, Less Liabilities | (0.1) |
See Portfolio of Investments beginning on page 58 for specific holdings within these categories. The Fund’s holdings are subject to change.
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Affiliated Investment Companies 93.4% |
Equity Funds 93.4% |
IQ 500 International ETF (a) | 485,521 | $ 16,187,707 |
IQ Candriam International Equity ETF (a) | 555,869 | 16,005,470 |
IQ Candriam U.S. Large Cap Equity ETF (a) | 713,992 | 30,498,168 |
IQ Candriam U.S. Mid Cap Equity ETF (a) | 950,153 | 28,332,897 |
IQ CBRE NextGen Real Estate ETF (a) | 522,543 | 9,629,527 |
IQ FTSE International Equity Currency Neutral ETF | 348,856 | 9,157,470 |
IQ Winslow Large Cap Growth ETF (a) | 107,780 | 4,244,053 |
MainStay Candriam Emerging Markets Equity Fund Class R6 (a) | 2,397,731 | 23,177,905 |
MainStay Epoch Capital Growth Fund Class I | 107,611 | 1,547,161 |
MainStay Epoch International Choice Fund Class I (a) | 405,092 | 16,126,902 |
MainStay Epoch U.S. Equity Yield Fund Class R6 (a) | 1,460,832 | 30,235,433 |
MainStay Fiera SMID Growth Fund Class R6 (a) | 1,710,661 | 28,902,643 |
MainStay PineStone International Equity Fund Class R6 (a) | 975,756 | 15,737,189 |
MainStay PineStone U.S. Equity Fund Class R6 (a) | 1,727,410 | 30,114,632 |
MainStay Winslow Large Cap Growth Fund Class R6 | 2,185,495 | 25,611,818 |
MainStay WMC Enduring Capital Fund Class R6 (a) | 792,318 | 28,348,505 |
MainStay WMC Growth Fund Class R6 (a) | 664,055 | 30,001,933 |
| Shares | | Value |
|
Equity Funds (continued) |
MainStay WMC International Research Equity Fund Class I (a) | 2,178,090 | | $ 16,472,892 |
MainStay WMC Small Companies Fund Class I (a) | 1,078,383 | | 25,113,496 |
MainStay WMC Value Fund Class R6 (a) | 944,788 | | 28,846,741 |
Total Affiliated Investment Companies (Cost $343,111,264) | | | 414,292,542 |
Short-Term Investment 6.7% |
Affiliated Investment Company 6.7% |
MainStay U.S. Government Liquidity Fund, 5.242% (b) | 29,820,299 | | 29,820,299 |
Total Short-Term Investment (Cost $29,820,299) | 6.7% | | 29,820,299 |
Total Investments (Cost $372,931,563) | 100.1% | | 444,112,841 |
Other Assets, Less Liabilities | (0.1) | | (561,066) |
Net Assets | 100.0% | | $ 443,551,775 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | As of April 30, 2024, the Fund's ownership exceeds 5% of the outstanding shares of the Underlying Fund's share class. |
(b) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
58 | MainStay Equity Allocation Fund |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
IQ 500 International ETF | $ 15,693 | $ 745 | $ (2,211) | $ 152 | $ 1,809 | $ 16,188 | $ 257 | $ — | 486 |
IQ Candriam International Equity ETF | 15,466 | 46 | (1,894) | 22 | 2,365 | 16,005 | 150 | — | 556 |
IQ Candriam U.S. Large Cap Equity ETF | 26,861 | 1,644 | (2,577) | 379 | 4,191 | 30,498 | 190 | — | 714 |
IQ Candriam U.S. Mid Cap Equity ETF | 19,698 | 5,914 | (949) | 78 | 3,592 | 28,333 | 163 | — | 950 |
IQ CBRE NextGen Real Estate ETF | — | 10,146 | (117) | 3 | (402) | 9,630 | 108 | — | 523 |
IQ FTSE International Equity Currency Neutral ETF | 7,867 | 153 | (164) | 7 | 1,294 | 9,157 | 79 | — | 349 |
IQ U.S. Large Cap ETF | 26,543 | — | (28,274) | 7,397 | (5,666) | — | 51 | — | — |
IQ U.S. Small Cap ETF | 19,193 | — | (22,951) | 6,124 | (2,366) | — | 162 | — | — |
IQ Winslow Large Cap Growth ETF | 3,023 | 363 | — | — | 858 | 4,244 | —(a) | — | 108 |
MainStay Candriam Emerging Markets Equity Fund Class R6 | 19,293 | 1,554 | (631) | (161) | 3,123 | 23,178 | 241 | — | 2,398 |
MainStay Epoch Capital Growth Fund Class I | 1,408 | 13 | (150) | 11 | 265 | 1,547 | 9 | —(a) | 108 |
MainStay Epoch International Choice Fund Class I | 12,767 | 1,813 | (158) | (2) | 1,707 | 16,127 | 243 | — | 405 |
MainStay Epoch U.S. Equity Yield Fund Class R6 | 26,822 | 2,529 | (2,335) | 116 | 3,103 | 30,235 | 386 | 886 | 1,461 |
MainStay Fiera SMID Growth Fund Class R6 | 11,409 | 14,966 | (572) | 48 | 3,052 | 28,903 | — | 501 | 1,711 |
MainStay PineStone International Equity Fund Class R6 | 12,787 | 1,754 | (1,152) | 65 | 2,283 | 15,737 | 68 | — | 976 |
MainStay PineStone U.S. Equity Fund Class R6 | 7,799 | 22,049 | (951) | 8 | 1,210 | 30,115 | 41 | 13 | 1,727 |
MainStay S&P 500 Index Fund Class I | 6,264 | 286 | (7,303) | 1,934 | (1,181) | — | 89 | 197 | — |
MainStay U.S. Government Liquidity Fund | 14,633 | 53,934 | (38,747) | — | — | 29,820 | 425 | — | 29,820 |
MainStay Winslow Large Cap Growth Fund Class R6 | 28,020 | 2,452 | (10,118) | 1,789 | 3,469 | 25,612 | — | 2,453 | 2,185 |
MainStay WMC Enduring Capital Fund Class R6 | 25,298 | 711 | (2,361) | 8 | 4,693 | 28,349 | 270 | — | 792 |
MainStay WMC Growth Fund Class R6 | 29,550 | — | (7,070) | 134 | 7,388 | 30,002 | — | — | 664 |
MainStay WMC International Research Equity Fund Class I | 12,836 | 2,085 | (500) | 20 | 2,032 | 16,473 | 291 | — | 2,178 |
MainStay WMC Small Companies Fund Class I | 19,174 | 4,708 | (3,137) | 209 | 4,159 | 25,113 | 79 | — | 1,078 |
MainStay WMC Value Fund Class R6 | 25,333 | 2,854 | (1,657) | (44) | 2,361 | 28,847 | 442 | 780 | 945 |
| $ 387,737 | $130,719 | $(135,979) | $18,297 | $ 43,339 | $ 444,113 | $3,744 | $4,830 | |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
59
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Swap Contracts
Open OTC total return equity swap contracts as of April 30, 2024 were as follows1:
Swap Counterparty | Reference Obligation | Floating Rate2 | Termination Date(s) | Payment Frequency Paid/ Received | Notional Amount Long/ (Short) (000)3 | Unrealized Appreciation/ (Depreciation)4 |
Citibank NA | Citi Leveraged Loan Basket | 1 day FEDF minus 0.20% | 12/3/24 | Daily | (5,454) | $ — |
Citibank NA | Citi Zombie Company Basket | 1 day FEDF minus 0.50% | 12/3/24 | Daily | (6,696) | — |
JPMorgan Chase Bank NA | Global X Uranium ETF | 1 day FEDF plus 0.50% | 10/08/24 -11/12/24 | Daily | 10,582 | — |
Citibank NA | iShares MSCI China ETF | 1 day FEDF minus 0.56% | 12/3/24 | Daily | (4,903) | — |
Citibank NA | iShares MSCI EAFE ETF | 1 day FEDF minus 1.25% | 12/3/24 | Daily | (22,556) | — |
Citibank NA | iShares MSCI Emerging Markets ex China ETF | 1 day FEDF plus 0.75% | 12/3/24 | Daily | 11,320 | — |
Citibank NA | iShares MSCI India ETF | 1 day FEDF plus 0.40% | 12/3/24 | Daily | 4,771 | — |
JPMorgan Chase Bank NA | iShares MSCI Japan ETF | 1 day FEDF plus 0.15% - plus 0.55% | 5/7/24 -4/24/25 | Daily | 13,104 | — |
JPMorgan Chase Bank NA | J.P. Morgan IDEX Pure Size Short Index | 1 day FEDF plus 0.00% - 0.13% | 6/20/24 | Daily | (6,067) | — |
JPMorgan Chase Bank NA | JPNYOIH Index | 1 day FEDF plus 0.48% | 2/24/25 | Daily | 4,387 | — |
JPMorgan Chase Bank NA | Russell 2000 Total Return Index | 1 day FEDF plus 0.10% | 4/9/25 | Daily | (3,235) | — |
JPMorgan Chase Bank NA | S&P 500 Equal Weight | 1 day FEDF plus 0.30% - plus 0.51% | 5/7/24 | Daily | 6,810 | — |
Citibank NA | S&P 500 Total Return Index | 1 day FEDF plus 0.65% | 12/3/24 | Daily | 7,140 | — |
Citibank NA | S&P Midcap 400 Total Return Index | 1 day FEDF plus 0.35% | 12/3/24 | Daily | 3,544 | — |
Citibank NA | S&P Small Cap 600 Total Return Index | 1 day FEDF plus 0.45% | 12/3/24 | Daily | 22,373 | — |
Citibank NA | Vanguard FTSE Europe ETF | 1 day FEDF minus 0.50% | 12/3/24 | Daily | (4,485) | — |
| | | | | | $ — |
The following table represents the basket holdings underlying the total return swap with Citi Leveraged Loan Basket as of April 30, 2024.
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
AerCap Holdings NV | (1,892) | (252,713) | — | 4.63 |
Apollo Commercial Real Estate Finance, Inc. | (268) | (35,829) | — | 0.66 |
Atlantica Sustainable Infrastructure plc | (186) | (24,876) | — | 0.46 |
Brandywine Realty Trust | (305) | (40,695) | — | 0.75 |
Carnival Corp. | (4,512) | (602,693) | — | 11.05 |
Chart Industries, Inc. | (1,662) | (222,035) | — | 4.07 |
Coherent Corp. | (1,030) | (137,533) | — | 2.52 |
CommScope Holding Co, Inc. | (31) | (4,171) | — | 0.08 |
Crane NXT Co | (1,212) | (161,918) | — | 2.97 |
Cushman & Wakefield plc | (343) | (45,836) | — | 0.84 |
Delta Air Lines, Inc. | (4,458) | (595,514) | — | 10.92 |
Designer Brands, Inc. | (269) | (35,930) | — | 0.66 |
DigitalBridge Group, Inc. | (474) | (63,374) | — | 1.16 |
Elanco Animal Health, Inc. | (1,705) | (227,827) | — | 4.18 |
Entegris, Inc. | (2,743) | (366,501) | — | 6.72 |
Fidelity National Information Services, Inc. | (3,831) | (511,807) | — | 9.38 |
Hanesbrands, Inc. | (805) | (107,586) | — | 1.97 |
JetBlue Airways Corp. | (590) | (78,768) | — | 1.44 |
Lumen Technologies, Inc. | (655) | (87,498) | — | 1.60 |
MKS Instruments, Inc. | (974) | (130,134) | — | 2.39 |
Oatly Group AB | (77) | (10,250) | — | 0.19 |
Opendoor Technologies, Inc. | (582) | (77,765) | — | 1.43 |
Par Pacific Holdings, Inc. | (399) | (53,271) | — | 0.98 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
60 | MainStay Equity Allocation Fund |
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
PureCycle Technologies, Inc. | (177) | (23,587) | — | 0.43 |
Scorpio Tankers, Inc. | (1,223) | (163,396) | — | 3.00 |
Topgolf Callaway Brands Corp. | (369) | (49,280) | — | 0.90 |
Uber Technologies, Inc. | (6,509) | (869,479) | — | 15.94 |
United Airlines Holdings, Inc. | (3,549) | (474,080) | — | 8.69 |
The following table represents the basket holdings underlying the total return swap with Citi Zombie Company Basket as of April 30, 2024.
Security Description | Shares | Notional Value | Unrealized Appreciation/ Depreciation | Percent of Basket Net Assets |
AppLovin Corp. | (3,160) | (349,196) | — | 5.22 |
Array Technologies Inc. | (1,125) | (124,303) | — | 1.86 |
Asana Inc. | (647) | (71,509) | — | 1.07 |
BILL Holdings Inc. | (2,278) | (251,747) | — | 3.76 |
BioCryst Pharmaceuticals Inc. | (178) | (19,686) | — | 0.29 |
Bloom Energy Corp. | (550) | (60,767) | — | 0.91 |
Bridgebio Pharma Inc. | (1,644) | (181,630) | — | 2.71 |
Carnival Corp. | (4,164) | (460,035) | — | 6.87 |
Children's Place Inc./The | (87) | (9,618) | — | 0.14 |
Cinemark Holdings Inc. | (839) | (92,661) | — | 1.38 |
Coeur Mining Inc. | (454) | (50,185) | — | 0.75 |
Cytokinetics Inc. | (1,314) | (145,199) | — | 2.17 |
DigitalBridge Group, Inc. | (618) | (68,332) | — | 1.02 |
Emergent BioSolutions Inc. | (73) | (8,055) | — | 0.12 |
Enviva Inc. | (10) | (1,099) | — | 0.02 |
Exact Sciences Corp. | (1,913) | (211,394) | — | 3.16 |
Fastly Inc. | (840) | (92,854) | — | 1.39 |
Gap Inc./The | (3,408) | (376,581) | — | 5.62 |
Guardant Health Inc. | (639) | (70,654) | — | 1.06 |
IAC Inc. | (617) | (68,159) | — | 1.02 |
Infinera Corp. | (219) | (24,205) | — | 0.36 |
Insmed Inc. | (565) | (62,473) | — | 0.93 |
JetBlue Airways Corp. | (769) | (84,931) | — | 1.27 |
Kyndryl Holdings Inc. | (515) | (56,910) | — | 0.85 |
Lyft Inc. | (4,262) | (470,948) | — | 7.03 |
NeoGenomics Inc. | (409) | (45,170) | — | 0.67 |
Oscar Health Inc. | (2,202) | (243,325) | — | 3.63 |
Pacific Biosciences of California Inc. | (113) | (12,497) | — | 0.19 |
Peloton Interactive Inc. | (449) | (49,652) | — | 0.74 |
Q2 Holdings Inc. | (807) | (89,180) | — | 1.33 |
Redfin Corp. | (280) | (30,942) | — | 0.46 |
Revance Therapeutics Inc. | (76) | (8,349) | — | 0.13 |
RingCentral Inc. | (1,164) | (128,563) | — | 1.92 |
Rivian Automotive Inc. | (1,703) | (188,178) | — | 2.81 |
Royal Caribbean Cruises Ltd. | (6,208) | (685,953) | — | 10.24 |
Scotts Miracle-Gro Co/The | (954) | (105,353) | — | 1.57 |
Spirit AeroSystems Holdings Inc. | (828) | (91,480) | — | 1.37 |
Spirit Airlines Inc. | (93) | (10,319) | — | 0.15 |
Sweetgreen Inc. | (908) | (100,319) | — | 1.50 |
TG Therapeutics Inc. | (851) | (93,997) | — | 1.40 |
Twist Bioscience Corp. | (906) | (100,119) | — | 1.50 |
Vistra Corp. | (4,989) | (551,223) | — | 8.23 |
Warner Bros Discovery Inc. | (1,390) | (153,636) | — | 2.29 |
Wix.com Ltd. | (1,335) | (147,460) | — | 2.20 |
Wolfspeed Inc. | (1,070) | (118,262) | — | 1.77 |
WW International Inc. | (193) | (21,358) | — | 0.32 |
Wynn Resorts Ltd. | (2,419) | (267,231) | — | 3.99 |
Xerox Holdings Corp. | (365) | (40,328) | — | 0.60 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
61
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
1. | As of April 30, 2024, cash in the amount $1,700,000 was pledged to brokers for OTC swap contracts. |
2. | Fund pays the floating rate and receives the total return of the reference entity. |
3. | Notional amounts reflected as a positive value indicate a long position held by the Fund or Index and a negative value indicates a short position. |
4. | Reflects the value at reset date as of April 30, 2024. |
Abbreviation(s): |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
FEDF—Federal Funds Rate |
FTSE—Financial Times Stock Exchange |
MSCI—Morgan Stanley Capital International |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Affiliated Investment Companies | | | | | | | |
Equity Funds | $ 414,292,542 | | $ — | | $ — | | $ 414,292,542 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 29,820,299 | | — | | — | | 29,820,299 |
Total Investments in Securities | $ 444,112,841 | | $ — | | $ — | | $ 444,112,841 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
62 | MainStay Equity Allocation Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in affiliated investment companies, at value (identified cost $372,931,563) | $444,112,841 |
Cash collateral on deposit at broker for swap contracts | 1,700,000 |
Receivables: | |
Fund shares sold | 166,664 |
Dividends | 64,902 |
Manager (See Note 3) | 10,883 |
Other assets | 82,724 |
Total assets | 446,138,014 |
Liabilities |
Payables: | |
Fund shares redeemed | 1,373,644 |
Dividends and interest on OTC swaps contracts | 954,291 |
NYLIFE Distributors (See Note 3) | 100,019 |
Transfer agent (See Note 3) | 95,773 |
Professional fees | 21,852 |
Shareholder communication | 19,553 |
Custodian | 18,580 |
Accrued expenses | 2,527 |
Total liabilities | 2,586,239 |
Net assets | $443,551,775 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 27,831 |
Additional paid-in-capital | 354,931,158 |
| 354,958,989 |
Total distributable earnings (loss) | 88,592,786 |
Net assets | $443,551,775 |
Class A | |
Net assets applicable to outstanding shares | $365,436,354 |
Shares of beneficial interest outstanding | 22,901,067 |
Net asset value per share outstanding | $ 15.96 |
Maximum sales charge (3.00% of offering price) | 0.49 |
Maximum offering price per share outstanding | $ 16.45 |
Investor Class | |
Net assets applicable to outstanding shares | $ 56,160,041 |
Shares of beneficial interest outstanding | 3,525,671 |
Net asset value per share outstanding | $ 15.93 |
Maximum sales charge (2.50% of offering price) | 0.41 |
Maximum offering price per share outstanding | $ 16.34 |
Class B | |
Net assets applicable to outstanding shares | $ 4,014,886 |
Shares of beneficial interest outstanding | 264,392 |
Net asset value and offering price per share outstanding | $ 15.19 |
Class C | |
Net assets applicable to outstanding shares | $ 7,951,542 |
Shares of beneficial interest outstanding | 522,386 |
Net asset value and offering price per share outstanding | $ 15.22 |
Class I | |
Net assets applicable to outstanding shares | $ 5,902,754 |
Shares of beneficial interest outstanding | 360,200 |
Net asset value and offering price per share outstanding | $ 16.39 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 4,086,198 |
Shares of beneficial interest outstanding | 256,857 |
Net asset value and offering price per share outstanding | $ 15.91 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
63
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividend distributions from affiliated investment companies | $ 3,743,966 |
Expenses | |
Distribution/Service—Class A (See Note 3) | 446,276 |
Distribution/Service—Investor Class (See Note 3) | 73,006 |
Distribution/Service—Class B (See Note 3) | 26,048 |
Distribution/Service—Class C (See Note 3) | 42,185 |
Distribution/Service—Class R3 (See Note 3)(a) | 3,115 |
Distribution/Service—SIMPLE Class (See Note 3) | 8,899 |
Transfer agent (See Note 3) | 262,959 |
Registration | 47,794 |
Professional fees | 35,359 |
Custodian | 15,555 |
Trustees | 5,220 |
Shareholder communication | 4,086 |
Shareholder service (See Note 3) | 623 |
Miscellaneous | 10,251 |
Total expenses before waiver/reimbursement | 981,376 |
Expense waiver/reimbursement from Manager (See Note 3) | (52,308) |
Net expenses | 929,068 |
Net investment income (loss) | 2,814,898 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Affiliated investment company transactions | 18,297,027 |
Realized capital gain distributions from affiliated investment companies | 4,830,156 |
Swap transactions | 123,434 |
Net realized gain (loss) | 23,250,617 |
Net change in unrealized appreciation (depreciation) on: Affiliated investments companies | 43,338,942 |
Net realized and unrealized gain (loss) | 66,589,559 |
Net increase (decrease) in net assets resulting from operations | $69,404,457 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
64 | MainStay Equity Allocation Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 2,814,898 | $ 4,497,455 |
Net realized gain (loss) | 23,250,617 | (6,491,762) |
Net change in unrealized appreciation (depreciation) | 43,338,942 | 16,295,583 |
Net increase (decrease) in net assets resulting from operations | 69,404,457 | 14,301,276 |
Distributions to shareholders: | | |
Class A | — | (30,476,962) |
Investor Class | — | (5,716,602) |
Class B | — | (890,193) |
Class C | — | (968,429) |
Class I | — | (534,380) |
Class R3(a) | — | (192,570) |
SIMPLE Class | — | (153,058) |
Total distributions to shareholders | — | (38,932,194) |
Capital share transactions: | | |
Net proceeds from sales of shares | 17,803,295 | 34,925,137 |
Net asset value of shares issued to shareholders in reinvestment of distributions | — | 38,698,435 |
Cost of shares redeemed | (32,526,235) | (51,020,915) |
Increase (decrease) in net assets derived from capital share transactions | (14,722,940) | 22,602,657 |
Net increase (decrease) in net assets | 54,681,517 | (2,028,261) |
Net Assets |
Beginning of period | 388,870,258 | 390,898,519 |
End of period | $443,551,775 | $388,870,258 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
65
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.54 | | $ 14.50 | | $ 19.80 | | $ 14.86 | | $ 15.10 | | $ 15.60 |
Net investment income (loss) (a) | 0.10 | | 0.16 | | 0.14 | | 0.11 | | 0.19 | | 0.15 |
Net realized and unrealized gain (loss) | 2.32 | | 0.34 | | (3.19) | | 5.64 | | 0.38 | | 0.93 |
Total from investment operations | 2.42 | | 0.50 | | (3.05) | | 5.75 | | 0.57 | | 1.08 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.18) | | (0.86) | | (0.08) | | (0.28) | | (0.18) |
From net realized gain on investments | — | | (1.28) | | (1.39) | | (0.73) | | (0.53) | | (1.40) |
Total distributions | — | | (1.46) | | (2.25) | | (0.81) | | (0.81) | | (1.58) |
Net asset value at end of period | $ 15.96 | | $ 13.54 | | $ 14.50 | | $ 19.80 | | $ 14.86 | | $ 15.10 |
Total investment return (b) | 17.87% | | 3.60% | | (17.56)% | | 39.73% | | 3.70% | | 8.72% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.32%†† | | 1.16% | | 0.89% | | 0.60% | | 1.29% | | 1.06% |
Net expenses (c) | 0.37%†† | | 0.39% | | 0.37% | | 0.38% | | 0.41% | | 0.43% |
Portfolio turnover rate | 18% | | 23% | | 17% | | 27% | | 36% | | 35% |
Net assets at end of period (in 000’s) | $ 365,436 | | $ 311,491 | | $ 302,559 | | $ 372,926 | | $ 258,743 | | $ 248,068 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.52 | | $ 14.48 | | $ 19.78 | | $ 14.84 | | $ 15.08 | | $ 15.58 |
Net investment income (loss) (a) | 0.09 | | 0.14 | | 0.12 | | 0.09 | | 0.17 | | 0.13 |
Net realized and unrealized gain (loss) | 2.32 | | 0.33 | | (3.20) | | 5.62 | | 0.38 | | 0.93 |
Total from investment operations | 2.41 | | 0.47 | | (3.08) | | 5.71 | | 0.55 | | 1.06 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.15) | | (0.83) | | (0.04) | | (0.26) | | (0.16) |
From net realized gain on investments | — | | (1.28) | | (1.39) | | (0.73) | | (0.53) | | (1.40) |
Total distributions | — | | (1.43) | | (2.22) | | (0.77) | | (0.79) | | (1.56) |
Net asset value at end of period | $ 15.93 | | $ 13.52 | | $ 14.48 | | $ 19.78 | | $ 14.84 | | $ 15.08 |
Total investment return (b) | 17.83% | | 3.41% | | (17.72)% | | 39.50% | | 3.55% | | 8.52% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.21%†† | | 1.02% | | 0.73% | | 0.48% | | 1.18% | | 0.89% |
Net expenses (c) | 0.55%†† | | 0.55% | | 0.55% | | 0.55% | | 0.55% | | 0.55% |
Expenses (before waiver/reimbursement) (c) | 0.70%†† | | 0.72% | | 0.63% | | 0.71% | | 0.72% | | 0.72% |
Portfolio turnover rate | 18% | | 23% | | 17% | | 27% | | 36% | | 35% |
Net assets at end of period (in 000's) | $ 56,160 | | $ 54,091 | | $ 58,318 | | $ 73,138 | | $ 73,492 | | $ 75,913 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
66 | MainStay Equity Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class B | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 12.94 | | $ 13.90 | | $ 19.07 | | $ 14.40 | | $ 14.64 | | $ 15.13 |
Net investment income (loss) (a) | 0.04 | | 0.05 | | 0.00‡ | | (0.03) | | 0.08 | | 0.04 |
Net realized and unrealized gain (loss) | 2.21 | | 0.30 | | (3.09) | | 5.43 | | 0.34 | | 0.89 |
Total from investment operations | 2.25 | | 0.35 | | (3.09) | | 5.40 | | 0.42 | | 0.93 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.03) | | (0.69) | | — | | (0.13) | | (0.02) |
From net realized gain on investments | — | | (1.28) | | (1.39) | | (0.73) | | (0.53) | | (1.40) |
Total distributions | — | | (1.31) | | (2.08) | | (0.73) | | (0.66) | | (1.42) |
Net asset value at end of period | $ 15.19 | | $ 12.94 | | $ 13.90 | | $ 19.07 | | $ 14.40 | | $ 14.64 |
Total investment return (b) | 17.39% | | 2.65% | | (18.36)% | | 38.44% | | 2.80% | | 7.73% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.52%†† | | 0.34% | | 0.02% | | (0.19)% | | 0.55% | | 0.28% |
Net expenses (c) | 1.30%†† | | 1.30% | | 1.30% | | 1.30% | | 1.30% | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.44%†† | | 1.48% | | 1.38% | | 1.46% | | 1.47% | | 1.47% |
Portfolio turnover rate | 18% | | 23% | | 17% | | 27% | | 36% | | 35% |
Net assets at end of period (in 000’s) | $ 4,015 | | $ 5,790 | | $ 10,468 | | $ 18,670 | | $ 19,651 | | $ 25,905 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
67
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 12.97 | | $ 13.93 | | $ 19.11 | | $ 14.42 | | $ 14.66 | | $ 15.15 |
Net investment income (loss) (a) | 0.03 | | 0.04 | | (0.00)‡ | | (0.04) | | 0.07 | | 0.05 |
Net realized and unrealized gain (loss) | 2.22 | | 0.31 | | (3.10) | | 5.46 | | 0.35 | | 0.88 |
Total from investment operations | 2.25 | | 0.35 | | (3.10) | | 5.42 | | 0.42 | | 0.93 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.03) | | (0.69) | | — | | (0.13) | | (0.02) |
From net realized gain on investments | — | | (1.28) | | (1.39) | | (0.73) | | (0.53) | | (1.40) |
Total distributions | — | | (1.31) | | (2.08) | | (0.73) | | (0.66) | | (1.42) |
Net asset value at end of period | $ 15.22 | | $ 12.97 | | $ 13.93 | | $ 19.11 | | $ 14.42 | | $ 14.66 |
Total investment return (b) | 17.35% | | 2.64% | | (18.37)% | | 38.53% | | 2.79% | | 7.72% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.43%†† | | 0.30% | | (0.00)%‡‡ | | (0.25)% | | 0.49% | | 0.33% |
Net expenses (c) | 1.30%†† | | 1.30% | | 1.30% | | 1.30% | | 1.30% | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.45%†† | | 1.47% | | 1.38% | | 1.46% | | 1.47% | | 1.47% |
Portfolio turnover rate | 18% | | 23% | | 17% | | 27% | | 36% | | 35% |
Net assets at end of period (in 000’s) | $ 7,952 | | $ 7,961 | | $ 10,763 | | $ 16,001 | | $ 15,805 | | $ 18,411 |
* | Unaudited. |
‡ | Less than one cent per share. |
‡‡ | Less than one-tenth of a percent. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
68 | MainStay Equity Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.88 | | $ 14.84 | | $ 20.21 | | $ 15.15 | | $ 15.37 | | $ 15.86 |
Net investment income (loss) (a) | 0.12 | | 0.21 | | 0.19 | | 0.16 | | 0.24 | | 0.21 |
Net realized and unrealized gain (loss) | 2.39 | | 0.32 | | (3.27) | | 5.74 | | 0.39 | | 0.93 |
Total from investment operations | 2.51 | | 0.53 | | (3.08) | | 5.90 | | 0.63 | | 1.14 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.21) | | (0.90) | | (0.11) | | (0.32) | | (0.23) |
From net realized gain on investments | — | | (1.28) | | (1.39) | | (0.73) | | (0.53) | | (1.40) |
Total distributions | — | | (1.49) | | (2.29) | | (0.84) | | (0.85) | | (1.63) |
Net asset value at end of period | $ 16.39 | | $ 13.88 | | $ 14.84 | | $ 20.21 | | $ 15.15 | | $ 15.37 |
Total investment return (b) | 18.08% | | 3.80% | | (17.35)% | | 40.05% | | 4.02% | | 8.97% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.57%†† | | 1.43% | | 1.16% | | 0.86% | | 1.60% | | 1.40% |
Net expenses (c) | 0.12%†† | | 0.14% | | 0.12% | | 0.13% | | 0.16% | | 0.16% |
Portfolio turnover rate | 18% | | 23% | | 17% | | 27% | | 36% | | 35% |
Net assets at end of period (in 000’s) | $ 5,903 | | $ 4,968 | | $ 5,463 | | $ 6,649 | | $ 4,727 | | $ 4,894 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
69
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 13.51 | | $ 14.46 | | $ 19.75 | | $ 14.84 | | $ 15.70** |
Net investment income (loss) (a) | 0.08 | | 0.09 | | 0.05 | | (0.01) | | (0.01) |
Net realized and unrealized gain (loss) | 2.32 | | 0.35 | | (3.17) | | 5.68 | | (0.85) |
Total from investment operations | 2.40 | | 0.44 | | (3.12) | | 5.67 | | (0.86) |
Less distributions: | | | | | | | | | |
From net investment income | — | | (0.11) | | (0.78) | | (0.03) | | — |
From net realized gain on investments | — | | (1.28) | | (1.39) | | (0.73) | | — |
Total distributions | — | | (1.39) | | (2.17) | | (0.76) | | — |
Net asset value at end of period | $ 15.91 | | $ 13.51 | | $ 14.46 | | $ 19.75 | | $ 14.84 |
Total investment return (b) | 17.76% | | 3.19% | | (17.91)% | | 39.15% | | (5.48)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 0.98%†† | | 0.62% | | 0.30% | | (0.07)% | | (0.27)%†† |
Net expenses (c) | 0.63%†† | | 0.79% | | 0.80% | | 0.80% | | 0.80%†† |
Expenses (before waiver/reimbursement) (c) | 0.63%†† | | 0.79% | | 0.88% | | 0.96% | | 0.97%†† |
Portfolio turnover rate | 18% | | 23% | | 17% | | 27% | | 36% |
Net assets at end of period (in 000’s) | $ 4,086 | | $ 2,742 | | $ 1,383 | | $ 463 | | $ 24 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
70 | MainStay Equity Allocation Fund |
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. 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 thirty-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 Growth Allocation Fund (formerly known as MainStay Moderate Growth Allocation Fund) and MainStay Equity Allocation Fund (formerly known as 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, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists each Allocation Fund's share classes that have been registered and commenced operations:
Fund | Share Classes Commenced Operations |
MainStay Conservative Allocation Fund | Class A, Investor Class, Class B, Class C, Class I and SIMPLE Class |
MainStay Moderate Allocation Fund | Class A, Investor Class, Class B, Class C, Class I and SIMPLE Class |
MainStay Growth Allocation Fund | Class A, Investor Class, Class B, Class C, Class I and SIMPLE Class |
MainStay Equity Allocation Fund | Class A, Investor Class, Class B, Class C, Class I and SIMPLE Class |
Effective at the close of business on February 23, 2024, Class R3 shares of MainStay Equity Allocation Fund and Class R2 and R3 shares of the MainStay Conservative Allocation Fund, MainStay Growth Allocation Fund and MainStay Moderate Allocation Fund were liquidated.
Class B shares of the MainStay Group of Funds are closed to all new purchases as well as additional investments by existing Class B shareholders. Existing Class B shareholders may continue to reinvest dividends and capital gains distributions, as well as exchange their Class B shares for Class B shares of other funds in the MainStay Group of Funds as permitted by the current exchange privileges. Class B shareholders continue to be subject to any applicable contingent deferred sales charge ("CDSC") at the time of redemption. All other features of the Class B shares, including but not limited to the fees and expenses applicable to Class B shares, remain unchanged. Unless redeemed, Class B shareholders will remain in Class B shares of their respective fund until the Class B shares are converted to Class A or Investor Class shares pursuant to the applicable conversion schedule.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a CDSC of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge,
although a CDSC of 1.00% may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. When Class B shares were offered, they were offered at NAV without an initial sales charge, although a CDSC that declines depending on the number of years a shareholder held its Class B shares may be imposed on certain redemptions of such shares made within six years of the date of purchase of such shares. Class I and SIMPLE Class shares are offered at NAV without a sales charge. Depending upon eligibility, Class B shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter ten years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. SIMPLE Class shares convert to Class A shares, or Investor Class shares if you are not eligible to hold Class A shares, at the end of the calendar quarter, ten years after the date they were purchased. Share class conversions are based on the relevant NAVs of the two classes at the time of the conversion, and no sales load or other charge is imposed. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of an Allocation Fund may be converted to one or more other share classes of the Allocation Funds as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class B and Class C shares are subject to higher distribution and/or service fees than Class A, Investor Class and SIMPLE Class shares. 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 Growth Allocation Fund seeks long-term growth of capital and, secondarily, current income.
The MainStay Equity Allocation Fund seeks long-term growth of capital.
The Allocation Funds are "funds-of-funds" that seek to achieve their investment objectives by investing in mutual funds and exchange-traded funds (“ETFs”) managed by New York Life Investment Management LLC ("New York Life Investments" or “Manager”) or its affiliates (the “Underlying Funds”). The MainStay Equity Allocation Fund invests, under normal circumstances, at least 80% of its assets (net assets plus any borrowings for investment purposes) in Underlying Equity Funds.
Notes to Financial Statements (Unaudited) (continued)
Note 2–Significant Accounting Policies
The Allocation Funds are investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. The Allocation Funds prepare their financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follow the significant accounting policies described below.
(A) Securities Valuation. Investments are usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Allocation Funds are open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investments as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in each Allocation Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Allocation Funds' and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Allocation Fund investments. The Valuation Designee may value the Allocation Funds' portfolio securities for which market quotations are not readily available and other Allocation Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that
quotation is a quoted price (unadjusted) in active markets for identical investments that each Allocation Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Allocation Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 each Allocation Fund. Unobservable inputs reflect each Allocation Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including each Allocation Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of each Allocation Fund’s assets and liabilities as of April 30, 2024, is included at the end of each Allocation Fund’s Portfolio of Investments.
Exchange-traded funds (“ETFs”) are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
72 | MainStay Asset Allocation Funds |
Swaps are marked to market daily based upon quotations from pricing agents, brokers or market makers. These securities are generally categorized as Level 2 in the hierarchy.
Total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, are based on a notional principal amount. To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Allocation Funds will receive a payment from or make a payment to the counterparty. Total return swap contracts are marked to market daily based upon quotations from market makers and these securities are generally categorized as Level 2 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(B) Income Taxes. Each Allocation Fund 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 its taxable income to the shareholders of each Allocation Fund within the allowable time limits.
The Manager evaluates each Allocation Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Allocation Funds' financial statements. The Allocation Funds' federal, state and local income tax 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 MainStay Moderate Allocation Fund, MainStay Growth Allocation Fund and MainStay Equity Allocation Fund each intend to declare and pay dividends from net investment income and distributions from net realized capital and currency gains, if any, at least annually. The MainStay Conservative Allocation Fund intends to declare and dividends from net investment income, if any, at least quarterly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the respective Allocation Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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 pro rata to the separate classes of shares 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/or 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 Allocation Funds, including those of related parties to the Allocation Funds, are shown in the Statement of Operations.
Additionally, the Allocation Funds may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
Notes to Financial Statements (Unaudited) (continued)
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) Swap Contracts. The Allocation Funds may enter into credit default, interest rate, equity, index and currency exchange rate swap contracts (“swaps”). In a typical swap transaction, two parties agree to exchange the future returns (or differentials in rates of future returns) earned or realized at periodic intervals on a particular investment or instrument based on a notional principal amount. Generally, the Allocation Funds will enter into a swap on a net basis, which means that the two payment streams under the swap are netted, with the Allocation Funds receiving or paying (as the case may be) only the net amount of the two payment streams. Therefore, the Allocation Funds' current obligation under a swap generally will be equal to the net amount to be paid or received under the swap, based on the relative value of notional positions attributable to each counterparty to the swap. The payments may be adjusted for transaction costs, interest payments, the amount of interest paid on the investment or instrument or other factors. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the custodian bank or broker in accordance with the terms of the swap. Swap agreements are privately negotiated in the over the counter (“OTC”) market and may be executed in a multilateral or other trade facilities platform, such as a registered commodities exchange (“centrally cleared swaps”).
Certain standardized swaps, including certain credit default and interest rate swaps, are subject to mandatory clearing and exchange-trading, and more types of standardized swaps are expected to be subject to mandatory clearing and exchange-trading in the future. The counterparty risk for exchange-traded and cleared derivatives is expected to be generally lower than for uncleared derivatives, but cleared contracts are not risk-free. In a cleared derivative transaction, the Allocation Funds typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Allocation Funds' exposure to the credit risk of its original counterparty. The Allocation Funds will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Allocation Funds would be required to post in an uncleared transaction.
Swaps are marked to market daily based upon quotations from pricing agents, brokers, or market makers and the change in value, if any, is recorded as unrealized appreciation or depreciation. Any payments made or received upon entering into a swap would be amortized or accreted over the life of the swap and recorded as a realized gain or loss. Early termination of a swap is recorded as a realized gain or loss. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value as appropriate on the Statement of Assets and Liabilities.
The Allocation Funds bears the risk of loss of the amount expected to be received under a swap in the event of the default or bankruptcy of the swap counterparty. The Allocation Funds may be able to eliminate its exposure under a swap either by assignment or other disposition, or by entering into an offsetting swap with the same party or a similar credit-worthy party. Swaps are not actively traded on financial markets. Entering into swaps involves elements of credit, market, leverage, liquidity, operational, counterparty and legal/documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibilities that there will be no liquid market for these swaps, that the counterparty to the swaps may default on its obligation to perform or disagree as to the meaning of the contractual terms in the swaps and that there may be unfavorable changes in interest rates, the price of the index or the security underlying these transactions, among other risks.
Equity Swaps (Total Return Swaps). Total return swap contracts are agreements between counterparties to exchange cash flow, one based on a market-linked return of an individual asset or group of assets (such as an index), and the other on a fixed or floating rate. As a total return swap, an equity swap may be structured in different ways. For example, when the Allocation Funds enters into a “long” equity swap, the counterparty may agree to pay the Allocation Funds the amount, if any, by which the notional amount of the equity swap would have increased in value had it been invested in a particular referenced security or securities, plus the dividends that would have been received on those securities. In return, the Allocation Funds will generally agree to pay the counterparty interest on the notional amount of the equity swap plus the amount, if any, by which that notional amount would have decreased in value had it been invested in such referenced security or securities, plus, in certain instances, commissions or trading spreads on the notional amounts. Therefore, the Allocation Funds' return on the equity swap generally should equal the gain or loss on the notional amount, plus dividends on the referenced security or securities less the interest paid by the Allocation Funds on the notional amount. Alternatively, when the Allocation Funds enters into a “short” equity swap, the counterparty will generally agree to pay the Allocation Funds the amount, if any, by which the notional amount of the equity swap would have decreased in value had the Allocation Funds sold a particular referenced security or securities short, less the dividend expense that the Allocation Funds would have incurred on the referenced security or securities, as adjusted for interest payments or other economic factors. In this situation, the Allocation Funds will generally be obligated to pay the amount, if any, by which the notional amount of the swap would have increased in value had it been invested directly in the referenced security or securities.
Equity swaps generally do not involve the delivery of securities or other referenced assets. Accordingly, the risk of loss with respect to equity swaps is normally limited to the net amount of payments that the Allocation Funds is contractually obligated to make. If the other party to an equity swap defaults, the Allocation Funds' risk of loss consists of the net amount of payments that the Allocation Funds is contractually entitled to receive, if any. The Allocation Funds will segregate cash or liquid
74 | MainStay Asset Allocation Funds |
assets, enter into offsetting transactions or use other measures permitted by applicable law to “cover” the Allocation Funds' current obligations. The Allocation Funds and New York Life Investments, however, believe these transactions do not constitute senior securities under the 1940 Act and, accordingly, will not treat them as being subject to the Allocation Funds' borrowing restrictions.
Equity swaps are derivatives and their value can be very volatile. The Allocation Funds may engage in total return swaps to gain exposure to emerging markets securities, along with offsetting long total return swap positions to maintain appropriate currency balances and risk exposures across all swap positions. To the extent that the Manager, or the Subadvisor do not accurately analyze and predict future market trends, the values or assets or economic factors, the Allocation Funds may suffer a loss, which may be substantial.
(H) 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 that may 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. The Manager believes 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.
(I) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures related to the Allocation Funds' derivative and hedging activities, including how such activities are accounted for and their effect on the Allocation Funds' financial positions, performance and cash flows.
The Allocation Funds entered into total return swap contracts to seek to enhance returns or reduce the risk of loss by hedging certain of the Allocation Funds' holdings. These derivatives are not accounted for as hedging instruments.
MainStay Conservative Allocation Fund
The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2024:
Net Realized Gain (Loss) from: | Equity Contracts Risk | Total |
Swap Transactions | $1,399,730 | $1,399,730 |
Total Net Realized Gain (Loss) | $1,399,730 | $1,399,730 |
Average Notional Amount | Total |
Swap Contracts Long | $ 91,524,193 |
Swap Contracts Short | $(58,918,392) |
MainStay Moderate Allocation Fund
The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2024:
Net Realized Gain (Loss) from: | Equity Contracts Risk | Total |
Swap Transactions | $3,171,384 | $3,171,384 |
Total Net Realized Gain (Loss) | $3,171,384 | $3,171,384 |
Average Notional Amount | Total |
Swap Contracts Long | $ 186,408,753 |
Swap Contracts Short | $(120,027,545) |
MainStay Growth Allocation Fund
The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2024:
Net Realized Gain (Loss) from: | Equity Contracts Risk | Total |
Swap Transactions | $2,902,399 | $2,902,399 |
Total Net Realized Gain (Loss) | $2,902,399 | $2,902,399 |
Average Notional Amount | Total |
Swap Contracts Long | $ 195,745,366 |
Swap Contracts Short | $(123,363,637) |
MainStay Equity Allocation Fund
The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2024:
Net Realized Gain (Loss) from: | Equity Contracts Risk | Total |
Swap Transactions | $123,434 | $123,434 |
Total Net Realized Gain (Loss) | $123,434 | $123,434 |
Average Notional Amount | Total |
Swap Contracts Long | $ 88,138,937 |
Swap Contracts Short | $(66,661,370) |
Note 3–Fees and Related Party Transactions
(A) Manager. 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 an Amended and Restated Management Agreement
Notes to Financial Statements (Unaudited) (continued)
(“Management Agreement”) and is responsible for the day-to-day portfolio management of the Allocation 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 pays the salaries and expenses of all personnel affiliated with the Allocation Funds and certain operational expenses of the Allocation Funds. The Allocation Funds reimburse New York Life Investments in an
amount equal to a portion of the compensation of the Chief Compliance Officer attributable to the Allocation Funds.
The Allocation Funds do not pay any fees to the Manager in return for the services performed under the Management Agreement. The Allocation Funds do, however, indirectly pay a proportionate share of the management fees paid to the managers of the Underlying Portfolios/Funds in which the Allocation Funds invest.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase and sale of portfolio investments, and acquired (underlying) fund fees and expenses) of a class do not exceed the following percentages of average daily net assets for each class:
Fund | Class A | Investor Class | Class B | Class C | Class I | SIMPLE Class |
MainStay Conservative Allocation Fund | 0.50% | 0.55% | 1.30% | 1.30% | 0.25% | 0.80% |
MainStay Moderate Allocation Fund | 0.50 | 0.55 | 1.30 | 1.30 | 0.25 | 0.80 |
MainStay Growth Allocation Fund | 0.50 | 0.55 | 1.30 | 1.30 | 0.25 | 0.80 |
MainStay Equity Allocation Fund | 0.50 | 0.55 | 1.30 | 1.30 | 0.25 | 0.80 |
This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments waived its fees and/or reimbursed expenses of the Allocation Funds as follows:
Fund | Total |
MainStay Conservative Allocation Fund | $30,653 |
MainStay Moderate Allocation Fund | 66,204 |
MainStay Growth Allocation Fund | 75,863 |
MainStay Equity Allocation Fund | 52,308 |
JPMorgan 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, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Allocation Funds. The Allocation Funds will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Allocation Funds.
(B) Distribution, Service and Shareholder Service Fees. The Trust, on behalf of the Allocation Funds, has entered into a distribution agreement with NYLIFE Distributors LLC (the “Distributor”), an affiliate of
New York Life Investments. 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 Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and 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 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 and SIMPLE Class Plans, Class R3 and SIMPLE Class shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, for a total 12b-1 fee of 0.50%. Class I shares are not subject to a distribution and/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.
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, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R1, Class R2 and Class R3
76 | MainStay Asset Allocation Funds |
shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the period November 1, 2023 through February 23, 2024, shareholder service fees incurred by the Fund were as follows:
MainStay Conservative Allocation Fund |
Class R2* | $ 29 |
Class R3* | 720 |
|
MainStay Moderate Allocation Fund |
Class R2* | $ 47 |
Class R3* | 556 |
|
MainStay Growth Allocation Fund |
Class R2* | $ 21 |
Class R3* | 273 |
|
MainStay Equity Allocation Fund |
Class R3* | $623 |
* | Class liquidated and is no longer offered for sale as of February 23, 2024. |
(C) Sales Charges. The Allocation Funds were advised by the Distributor that the amount of initial sales charges retained on sales of each class of shares during the six-month period ended April 30, 2024, was as follows:
MainStay Conservative Allocation Fund | |
Class A | $ 11,714 |
Investor Class | 3,112 |
|
MainStay Moderate Allocation Fund | |
Class A | $ 32,567 |
Investor Class | 11,254 |
|
MainStay Growth Allocation Fund | |
Class A | $ 40,306 |
Investor Class | 10,866 |
|
MainStay Equity Allocation Fund | |
Class A | $ 22,185 |
Investor Class | 5,929 |
The Allocation Funds were also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares during the six-month period ended April 30, 2024, as follows:
MainStay Conservative Allocation Fund | |
Class A | $ 1,373 |
Investor Class | 1 |
Class B | 392 |
Class C | 274 |
|
MainStay Moderate Allocation Fund | |
Class A | $ 4,969 |
Class C | 1,132 |
|
MainStay Growth Allocation Fund | |
Class A | $ 3,638 |
Investor Class | 3 |
Class C | 851 |
|
MainStay Equity Allocation Fund | |
Class A | $ 2,321 |
Class B | 8 |
Class C | 240 |
(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 SS&C Global Investor and Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to each of the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025 and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Allocation Funds and any reimbursements,
Notes to Financial Statements (Unaudited) (continued)
pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
MainStay Conservative Allocation Fund | Expense | Waived |
Class A | $ 98,081 | $ — |
Investor Class | 60,108 | — |
Class B | 4,899 | — |
Class C | 22,025 | — |
Class I | 2,198 | — |
Class R2* | 17 | — |
Class R3* | 421 | — |
SIMPLE Class | 767 | — |
* | Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated. |
MainStay Moderate Allocation Fund | Expense | Waived |
Class A | $ 182,838 | $ — |
Investor Class | 162,259 | — |
Class B | 12,957 | — |
Class C | 26,911 | — |
Class I | 2,244 | — |
Class R2* | 26 | — |
Class R3* | 311 | — |
SIMPLE Class | 3,377 | — |
* | Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated. |
MainStay Growth Allocation Fund | Expense | Waived |
Class A | $ 205,244 | $ — |
Investor Class | 191,241 | — |
Class B | 16,031 | — |
Class C | 29,400 | — |
Class I | 3,169 | — |
Class R2* | 13 | — |
Class R3* | 165 | — |
SIMPLE Class | 2,303 | — |
* | Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated. |
MainStay Equity Allocation Fund | Expense | Waived |
Class A | $ 118,335 | $ — |
Investor Class | 114,255 | — |
Class B | 10,146 | — |
Class C | 16,501 | — |
Class I | 1,876 | — |
Class R3* | 415 | — |
SIMPLE Class | 1,431 | — |
* | Effective at the close of business on February 23, 2024, Class R3 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Allocation Funds with the values and percentages of net assets as follows:
MainStay Conservative Allocation Fund | | |
SIMPLE Class | $26,987 | 1.0% |
|
MainStay Moderate Allocation Fund | | |
SIMPLE Class | $29,012 | 0.3% |
|
MainStay Growth Allocation Fund | | |
SIMPLE Class | $31,307 | 0.5% |
|
MainStay Equity Allocation Fund | | |
SIMPLE Class | $32,801 | 0.8% |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of each Allocation Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
MainStay Conservative Allocation Fund |
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $368,685,772 | $22,481,230 | $(14,065,991) | $8,415,239 |
MainStay Moderate Allocation Fund |
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $705,351,439 | $74,554,795 | $(11,904,297) | $62,650,498 |
78 | MainStay Asset Allocation Funds |
MainStay Growth Allocation Fund |
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $708,230,902 | $100,836,268 | $(972,387) | $99,863,881 |
MainStay Equity Allocation Fund |
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $378,212,446 | $66,302,090 | $(401,695) | $65,900,395 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $319,475, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of MainStay Conservative Allocation Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $— | $319 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $2,192,839, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of MainStay Equity Allocation Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $14 | $2,179 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Fund | Ordinary Income | Long-Term Capital Gains | Return of Capital | Total |
MainStay Conservative Allocation Fund | $ 4,038,761 | $ 6,969,769 | $6,469,787 | $17,478,317 |
MainStay Moderate Allocation Fund | 10,715,476 | 28,954,715 | — | 39,670,191 |
MainStay Growth Allocation Fund | 9,642,885 | 42,606,280 | — | 52,249,165 |
MainStay Equity Allocation Fund | 7,684,587 | 31,247,607 | — | 38,932,194 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Allocation Funds. Custodial fees are charged to each Allocation Fund based on each Allocation Fund's net assets and/or the market value of securities held by each Allocation Fund and the number of certain transactions incurred by each Allocation Fund.
Note 6–Line of Credit
The Allocation Funds and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Allocation Funds and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Allocation Funds, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional
Notes to Financial Statements (Unaudited) (continued)
year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Allocation Funds under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Allocation Funds, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Allocation Funds and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Allocation Funds.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities were as follows:
Fund | Purchases | Sales |
MainStay Conservative Allocation Fund | $ 65,919 | $ 81,427 |
MainStay Moderate Allocation Fund | 155,736 | 168,651 |
MainStay Growth Allocation Fund | 145,669 | 174,904 |
MainStay Equity Allocation Fund | 76,786 | 97,233 |
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
MainStay Conservative Allocation Fund
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,012,904 | $ 11,695,993 |
Shares issued to shareholders in reinvestment of distributions | 411,968 | 4,811,919 |
Shares redeemed | (3,010,864) | (34,396,596) |
Net increase (decrease) in shares outstanding before conversion | (1,585,992) | (17,888,684) |
Shares converted into Class A (See Note 1) | 399,367 | 4,624,004 |
Net increase (decrease) | (1,186,625) | $(13,264,680) |
Year ended October 31, 2023: | | |
Shares sold | 1,825,511 | $ 20,067,573 |
Shares issued to shareholders in reinvestment of distributions | 1,355,130 | 14,650,400 |
Shares redeemed | (5,502,780) | (60,483,372) |
Net increase (decrease) in shares outstanding before conversion | (2,322,139) | (25,765,399) |
Shares converted into Class A (See Note 1) | 675,316 | 7,437,427 |
Shares converted from Class A (See Note 1) | (1,028) | (11,375) |
Net increase (decrease) | (1,647,851) | $(18,339,347) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 107,214 | $ 1,229,439 |
Shares issued to shareholders in reinvestment of distributions | 38,018 | 443,660 |
Shares redeemed | (190,701) | (2,181,289) |
Net increase (decrease) in shares outstanding before conversion | (45,469) | (508,190) |
Shares converted into Investor Class (See Note 1) | 70,801 | 813,419 |
Shares converted from Investor Class (See Note 1) | (229,798) | (2,663,624) |
Net increase (decrease) | (204,466) | $ (2,358,395) |
Year ended October 31, 2023: | | |
Shares sold | 303,166 | $ 3,331,191 |
Shares issued to shareholders in reinvestment of distributions | 130,090 | 1,405,692 |
Shares redeemed | (383,584) | (4,216,738) |
Net increase (decrease) in shares outstanding before conversion | 49,672 | 520,145 |
Shares converted into Investor Class (See Note 1) | 150,061 | 1,663,424 |
Shares converted from Investor Class (See Note 1) | (376,864) | (4,137,768) |
Net increase (decrease) | (177,131) | $ (1,954,199) |
|
80 | MainStay Asset Allocation Funds |
Class B | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 952 | $ 10,814 |
Shares issued to shareholders in reinvestment of distributions | 2,132 | 24,408 |
Shares redeemed | (21,605) | (244,815) |
Net increase (decrease) in shares outstanding before conversion | (18,521) | (209,593) |
Shares converted from Class B (See Note 1) | (108,796) | (1,226,377) |
Net increase (decrease) | (127,317) | $ (1,435,970) |
Year ended October 31, 2023: | | |
Shares sold | 6,867 | $ 74,042 |
Shares issued to shareholders in reinvestment of distributions | 15,529 | 164,406 |
Shares redeemed | (78,848) | (851,118) |
Net increase (decrease) in shares outstanding before conversion | (56,452) | (612,670) |
Shares converted from Class B (See Note 1) | (186,807) | (2,026,564) |
Net increase (decrease) | (243,259) | $ (2,639,234) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 21,498 | $ 242,446 |
Shares issued to shareholders in reinvestment of distributions | 10,212 | 116,990 |
Shares redeemed | (143,382) | (1,612,407) |
Net increase (decrease) in shares outstanding before conversion | (111,672) | (1,252,971) |
Shares converted from Class C (See Note 1) | (136,427) | (1,546,542) |
Net increase (decrease) | (248,099) | $ (2,799,513) |
Year ended October 31, 2023: | | |
Shares sold | 75,687 | $ 818,520 |
Shares issued to shareholders in reinvestment of distributions | 53,130 | 562,670 |
Shares redeemed | (386,212) | (4,156,690) |
Net increase (decrease) in shares outstanding before conversion | (257,395) | (2,775,500) |
Shares converted from Class C (See Note 1) | (269,755) | (2,925,144) |
Net increase (decrease) | (527,150) | $ (5,700,644) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 35,366 | $ 410,755 |
Shares issued to shareholders in reinvestment of distributions | 9,731 | 114,921 |
Shares redeemed | (174,626) | (2,042,005) |
Net increase (decrease) | (129,529) | $ (1,516,329) |
Year ended October 31, 2023: | | |
Shares sold | 230,488 | $ 2,544,900 |
Shares issued to shareholders in reinvestment of distributions | 32,042 | 350,884 |
Shares redeemed | (159,046) | (1,769,430) |
Net increase (decrease) | 103,484 | $ 1,126,354 |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 138 | $ 1,512 |
Shares issued to shareholders in reinvestment of distributions | 100 | 1,155 |
Shares redeemed | (15,127) | (174,359) |
Net increase (decrease) | (14,889) | $ (171,692) |
Year ended October 31, 2023: | | |
Shares sold | 1,194 | $ 13,165 |
Shares issued to shareholders in reinvestment of distributions | 599 | 6,474 |
Shares redeemed | (92) | (997) |
Net increase (decrease) | 1,701 | $ 18,642 |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 300 | $ 3,335 |
Shares issued to shareholders in reinvestment of distributions | 1,487 | 17,084 |
Shares redeemed | (248,093) | (2,881,689) |
Net increase (decrease) | (246,306) | $ (2,861,270) |
Year ended October 31, 2023: | | |
Shares sold | 46,586 | $ 506,417 |
Shares issued to shareholders in reinvestment of distributions | 8,920 | 95,982 |
Shares redeemed | (14,617) | (160,100) |
Net increase (decrease) | 40,889 | $ 442,299 |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 57,026 | $ 653,306 |
Shares issued to shareholders in reinvestment of distributions | 3,100 | 36,119 |
Shares redeemed | (18,484) | (213,170) |
Net increase (decrease) in shares outstanding before conversion | 41,642 | 476,255 |
Shares converted from SIMPLE Class (See Note 1) | (77) | (880) |
Net increase (decrease) | 41,565 | $ 475,375 |
Year ended October 31, 2023: | | |
Shares sold | 106,697 | $ 1,168,087 |
Shares issued to shareholders in reinvestment of distributions | 6,326 | 68,251 |
Shares redeemed | (32,717) | (359,823) |
Net increase (decrease) | 80,306 | $ 876,515 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Notes to Financial Statements (Unaudited) (continued)
MainStay Moderate Allocation Fund
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,723,298 | $ 22,771,035 |
Shares issued to shareholders in reinvestment of distributions | 179,621 | 2,376,217 |
Shares redeemed | (3,979,929) | (52,457,610) |
Net increase (decrease) in shares outstanding before conversion | (2,077,010) | (27,310,358) |
Shares converted into Class A (See Note 1) | 935,409 | 12,470,523 |
Net increase (decrease) | (1,141,601) | $(14,839,835) |
Year ended October 31, 2023: | | |
Shares sold | 3,202,261 | $ 39,321,541 |
Shares issued to shareholders in reinvestment of distributions | 2,799,172 | 32,890,277 |
Shares redeemed | (6,828,277) | (83,781,863) |
Net increase (decrease) in shares outstanding before conversion | (826,844) | (11,570,045) |
Shares converted into Class A (See Note 1) | 1,476,474 | 18,127,191 |
Net increase (decrease) | 649,630 | $ 6,557,146 |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 336,502 | $ 4,454,387 |
Shares issued to shareholders in reinvestment of distributions | 10,827 | 143,677 |
Shares redeemed | (395,808) | (5,223,499) |
Net increase (decrease) in shares outstanding before conversion | (48,479) | (625,435) |
Shares converted into Investor Class (See Note 1) | 110,469 | 1,459,542 |
Shares converted from Investor Class (See Note 1) | (687,958) | (9,197,953) |
Net increase (decrease) | (625,968) | $ (8,363,846) |
Year ended October 31, 2023: | | |
Shares sold | 827,461 | $ 10,171,397 |
Shares issued to shareholders in reinvestment of distributions | 368,313 | 4,338,731 |
Shares redeemed | (776,785) | (9,543,046) |
Net increase (decrease) in shares outstanding before conversion | 418,989 | 4,967,082 |
Shares converted into Investor Class (See Note 1) | 274,894 | 3,416,373 |
Shares converted from Investor Class (See Note 1) | (968,458) | (11,897,082) |
Net increase (decrease) | (274,575) | $ (3,513,627) |
|
Class B | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 2,894 | $ 37,579 |
Shares redeemed | (36,826) | (479,802) |
Net increase (decrease) in shares outstanding before conversion | (33,932) | (442,223) |
Shares converted from Class B (See Note 1) | (243,748) | (3,185,031) |
Net increase (decrease) | (277,680) | $ (3,627,254) |
Year ended October 31, 2023: | | |
Shares sold | 3,497 | $ 42,158 |
Shares issued to shareholders in reinvestment of distributions | 51,681 | 603,118 |
Shares redeemed | (133,386) | (1,615,872) |
Net increase (decrease) in shares outstanding before conversion | (78,208) | (970,596) |
Shares converted from Class B (See Note 1) | (492,641) | (6,001,797) |
Net increase (decrease) | (570,849) | $ (6,972,393) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 37,236 | $ 485,082 |
Shares redeemed | (176,673) | (2,292,177) |
Net increase (decrease) in shares outstanding before conversion | (139,437) | (1,807,095) |
Shares converted from Class C (See Note 1) | (111,834) | (1,461,458) |
Net increase (decrease) | (251,271) | $ (3,268,553) |
Year ended October 31, 2023: | | |
Shares sold | 125,907 | $ 1,523,284 |
Shares issued to shareholders in reinvestment of distributions | 71,032 | 828,236 |
Shares redeemed | (324,580) | (3,922,879) |
Net increase (decrease) in shares outstanding before conversion | (127,641) | (1,571,359) |
Shares converted from Class C (See Note 1) | (298,033) | (3,640,901) |
Net increase (decrease) | (425,674) | $ (5,212,260) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 39,634 | $ 535,930 |
Shares issued to shareholders in reinvestment of distributions | 3,632 | 48,416 |
Shares redeemed | (78,536) | (1,031,809) |
Net increase (decrease) | (35,270) | $ (447,463) |
Year ended October 31, 2023: | | |
Shares sold | 89,272 | $ 1,090,784 |
Shares issued to shareholders in reinvestment of distributions | 39,985 | 473,021 |
Shares redeemed | (187,074) | (2,289,886) |
Net increase (decrease) | (57,817) | $ (726,081) |
|
82 | MainStay Asset Allocation Funds |
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 38 | $ 492 |
Shares issued to shareholders in reinvestment of distributions | 35 | 469 |
Shares redeemed | (13,582) | (182,114) |
Net increase (decrease) | (13,509) | $ (181,153) |
Year ended October 31, 2023: | | |
Shares sold | 279 | $ 3,452 |
Shares issued to shareholders in reinvestment of distributions | 712 | 8,356 |
Shares redeemed | (256) | (3,139) |
Net increase (decrease) | 735 | $ 8,669 |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 4,792 | $ 61,215 |
Shares issued to shareholders in reinvestment of distributions | 21 | 271 |
Shares redeemed | (147,694) | (1,979,435) |
Net increase (decrease) in shares outstanding before conversion | (142,881) | (1,917,949) |
Shares converted from Class R3 (See Note 1) | (5,519) | (73,520) |
Net increase (decrease) | (148,400) | $ (1,991,469) |
Year ended October 31, 2023: | | |
Shares sold | 61,228 | $ 754,197 |
Shares issued to shareholders in reinvestment of distributions | 6,808 | 79,853 |
Shares redeemed | (52,021) | (645,674) |
Net increase (decrease) | 16,015 | $ 188,376 |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 184,604 | $ 2,455,655 |
Shares issued to shareholders in reinvestment of distributions | 146 | 1,931 |
Shares redeemed | (55,965) | (717,347) |
Net increase (decrease) in shares outstanding before conversion | 128,785 | 1,740,239 |
Shares converted from SIMPLE Class (See Note 1) | (907) | (12,103) |
Net increase (decrease) | 127,878 | $ 1,728,136 |
Year ended October 31, 2023: | | |
Shares sold | 331,562 | $ 4,064,307 |
Shares issued to shareholders in reinvestment of distributions | 15,225 | 179,502 |
Shares redeemed | (26,988) | (332,260) |
Net increase (decrease) in shares outstanding before conversion | 319,799 | 3,911,549 |
Shares converted from SIMPLE Class (See Note 1) | (311) | (3,784) |
Net increase (decrease) | 319,488 | $ 3,907,765 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
MainStay Growth Allocation Fund
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,538,943 | $ 22,918,422 |
Shares issued to shareholders in reinvestment of distributions | 390,867 | 5,796,297 |
Shares redeemed | (3,491,476) | (51,976,495) |
Net increase (decrease) in shares outstanding before conversion | (1,561,666) | (23,261,776) |
Shares converted into Class A (See Note 1) | 1,054,990 | 15,864,694 |
Shares converted from Class A (See Note 1) | (692) | (10,174) |
Net increase (decrease) | (507,368) | $ (7,407,256) |
Year ended October 31, 2023: | | |
Shares sold | 3,011,551 | $ 41,173,419 |
Shares issued to shareholders in reinvestment of distributions | 3,252,977 | 42,321,240 |
Shares redeemed | (5,905,220) | (80,731,428) |
Net increase (decrease) in shares outstanding before conversion | 359,308 | 2,763,231 |
Shares converted into Class A (See Note 1) | 1,417,769 | 19,378,397 |
Shares converted from Class A (See Note 1) | (9,590) | (134,191) |
Net increase (decrease) | 1,767,487 | $ 22,007,437 |
|
Notes to Financial Statements (Unaudited) (continued)
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 286,697 | $ 4,250,050 |
Shares issued to shareholders in reinvestment of distributions | 44,206 | 657,269 |
Shares redeemed | (348,364) | (5,176,022) |
Net increase (decrease) in shares outstanding before conversion | (17,461) | (268,703) |
Shares converted into Investor Class (See Note 1) | 114,281 | 1,697,514 |
Shares converted from Investor Class (See Note 1) | (828,402) | (12,493,857) |
Net increase (decrease) | (731,582) | $(11,065,046) |
Year ended October 31, 2023: | | |
Shares sold | 734,117 | $ 10,055,235 |
Shares issued to shareholders in reinvestment of distributions | 514,529 | 6,714,607 |
Shares redeemed | (751,519) | (10,314,971) |
Net increase (decrease) in shares outstanding before conversion | 497,127 | 6,454,871 |
Shares converted into Investor Class (See Note 1) | 254,922 | 3,542,500 |
Shares converted from Investor Class (See Note 1) | (997,180) | (13,604,376) |
Net increase (decrease) | (245,131) | $ (3,607,005) |
|
Class B | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 811 | $ 11,810 |
Shares issued to shareholders in reinvestment of distributions | 893 | 13,058 |
Shares redeemed | (54,585) | (804,443) |
Net increase (decrease) in shares outstanding before conversion | (52,881) | (779,575) |
Shares converted from Class B (See Note 1) | (249,096) | (3,649,357) |
Net increase (decrease) | (301,977) | $ (4,428,932) |
Year ended October 31, 2023: | | |
Shares sold | 2,367 | $ 31,717 |
Shares issued to shareholders in reinvestment of distributions | 72,241 | 929,021 |
Shares redeemed | (113,744) | (1,529,107) |
Net increase (decrease) in shares outstanding before conversion | (39,136) | (568,369) |
Shares converted from Class B (See Note 1) | (463,828) | (6,298,856) |
Net increase (decrease) | (502,964) | $ (6,867,225) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 45,727 | $ 670,572 |
Shares issued to shareholders in reinvestment of distributions | 1,560 | 22,826 |
Shares redeemed | (145,527) | (2,143,351) |
Net increase (decrease) in shares outstanding before conversion | (98,240) | (1,449,953) |
Shares converted from Class C (See Note 1) | (86,442) | (1,264,693) |
Net increase (decrease) | (184,682) | $ (2,714,646) |
Year ended October 31, 2023: | | |
Shares sold | 94,402 | $ 1,271,273 |
Shares issued to shareholders in reinvestment of distributions | 92,277 | 1,187,605 |
Shares redeemed | (336,393) | (4,514,659) |
Net increase (decrease) in shares outstanding before conversion | (149,714) | (2,055,781) |
Shares converted from Class C (See Note 1) | (221,194) | (3,009,905) |
Net increase (decrease) | (370,908) | $ (5,065,686) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 136,709 | $ 2,057,039 |
Shares issued to shareholders in reinvestment of distributions | 7,122 | 107,190 |
Shares redeemed | (117,737) | (1,766,441) |
Net increase (decrease) in shares outstanding before conversion | 26,094 | 397,788 |
Shares converted into Class I (See Note 1) | 489 | 7,174 |
Net increase (decrease) | 26,583 | $ 404,962 |
Year ended October 31, 2023: | | |
Shares sold | 250,066 | $ 3,535,573 |
Shares issued to shareholders in reinvestment of distributions | 46,977 | 620,096 |
Shares redeemed | (198,492) | (2,738,948) |
Net increase (decrease) in shares outstanding before conversion | 98,551 | 1,416,721 |
Shares converted into Class I (See Note 1) | 8,866 | 126,431 |
Net increase (decrease) | 107,417 | $ 1,543,152 |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares issued to shareholders in reinvestment of distributions | 35 | $ 522 |
Shares redeemed | (4,669) | (71,175) |
Net increase (decrease) | (4,634) | $ (70,653) |
Year ended October 31, 2023: | | |
Shares issued to shareholders in reinvestment of distributions | 415 | $ 5,399 |
Shares redeemed | (1,451) | (19,532) |
Net increase (decrease) | (1,036) | $ (14,133) |
|
84 | MainStay Asset Allocation Funds |
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 1,809 | $ 26,072 |
Shares issued to shareholders in reinvestment of distributions | 348 | 5,141 |
Shares redeemed | (63,720) | (955,725) |
Net increase (decrease) in shares outstanding before conversion | (61,563) | (924,512) |
Shares converted from Class R3 (See Note 1) | (8,354) | (125,756) |
Net increase (decrease) | (69,917) | $ (1,050,268) |
Year ended October 31, 2023: | | |
Shares sold | 13,691 | $ 185,219 |
Shares issued to shareholders in reinvestment of distributions | 5,226 | 67,736 |
Shares redeemed | (22,726) | (303,999) |
Net increase (decrease) | (3,809) | $ (51,044) |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 113,017 | $ 1,683,956 |
Shares issued to shareholders in reinvestment of distributions | 2,165 | 32,240 |
Shares redeemed | (29,969) | (449,568) |
Net increase (decrease) in shares outstanding before conversion | 85,213 | 1,266,628 |
Shares converted from SIMPLE Class (See Note 1) | (1,655) | (25,545) |
Net increase (decrease) | 83,558 | $ 1,241,083 |
Year ended October 31, 2023: | | |
Shares sold | 188,294 | $ 2,578,541 |
Shares issued to shareholders in reinvestment of distributions | 17,071 | 223,125 |
Shares redeemed | (63,741) | (867,586) |
Net increase (decrease) | 141,624 | $ 1,934,080 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
MainStay Equity Allocation Fund
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 870,194 | $ 13,573,252 |
Shares redeemed | (1,624,001) | (25,564,496) |
Net increase (decrease) in shares outstanding before conversion | (753,807) | (11,991,244) |
Shares converted into Class A (See Note 1) | 643,522 | 10,184,703 |
Shares converted from Class A (See Note 1) | (301) | (4,920) |
Net increase (decrease) | (110,586) | $ (1,811,461) |
Year ended October 31, 2023: | | |
Shares sold | 1,778,515 | $ 25,173,338 |
Shares issued to shareholders in reinvestment of distributions | 2,272,820 | 30,273,962 |
Shares redeemed | (2,748,476) | (38,870,329) |
Net increase (decrease) in shares outstanding before conversion | 1,302,859 | 16,576,971 |
Shares converted into Class A (See Note 1) | 837,211 | 11,822,136 |
Shares converted from Class A (See Note 1) | (87) | (1,202) |
Net increase (decrease) | 2,139,983 | $ 28,397,905 |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 154,816 | $ 2,402,234 |
Shares redeemed | (187,052) | (2,910,267) |
Net increase (decrease) in shares outstanding before conversion | (32,236) | (508,033) |
Shares converted into Investor Class (See Note 1) | 65,538 | 1,015,461 |
Shares converted from Investor Class (See Note 1) | (507,199) | (8,031,147) |
Net increase (decrease) | (473,897) | $ (7,523,719) |
Year ended October 31, 2023: | | |
Shares sold | 474,160 | $ 6,710,903 |
Shares issued to shareholders in reinvestment of distributions | 428,984 | 5,714,066 |
Shares redeemed | (476,362) | (6,732,595) |
Net increase (decrease) in shares outstanding before conversion | 426,782 | 5,692,374 |
Shares converted into Investor Class (See Note 1) | 129,559 | 1,864,152 |
Shares converted from Investor Class (See Note 1) | (583,935) | (8,226,270) |
Net increase (decrease) | (27,594) | $ (669,744) |
|
Notes to Financial Statements (Unaudited) (continued)
Class B | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,378 | $ 19,200 |
Shares redeemed | (28,350) | (424,355) |
Net increase (decrease) in shares outstanding before conversion | (26,972) | (405,155) |
Shares converted from Class B (See Note 1) | (155,992) | (2,330,235) |
Net increase (decrease) | (182,964) | $ (2,735,390) |
Year ended October 31, 2023: | | |
Shares sold | 389 | $ 5,230 |
Shares issued to shareholders in reinvestment of distributions | 69,384 | 890,193 |
Shares redeemed | (92,560) | (1,262,149) |
Net increase (decrease) in shares outstanding before conversion | (22,787) | (366,726) |
Shares converted from Class B (See Note 1) | (282,868) | (3,873,248) |
Net increase (decrease) | (305,655) | $ (4,239,974) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 17,791 | $ 263,179 |
Shares redeemed | (63,087) | (943,045) |
Net increase (decrease) in shares outstanding before conversion | (45,296) | (679,866) |
Shares converted from Class C (See Note 1) | (46,024) | (689,164) |
Net increase (decrease) | (91,320) | $ (1,369,030) |
Year ended October 31, 2023: | | |
Shares sold | 50,468 | $ 683,433 |
Shares issued to shareholders in reinvestment of distributions | 75,273 | 968,019 |
Shares redeemed | (168,666) | (2,278,811) |
Net increase (decrease) in shares outstanding before conversion | (42,925) | (627,359) |
Shares converted from Class C (See Note 1) | (116,014) | (1,585,568) |
Net increase (decrease) | (158,939) | $ (2,212,927) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 21,708 | $ 360,552 |
Shares redeemed | (19,307) | (312,961) |
Net increase (decrease) | 2,401 | $ 47,591 |
Year ended October 31, 2023: | | |
Shares sold | 26,561 | $ 377,541 |
Shares issued to shareholders in reinvestment of distributions | 38,925 | 530,552 |
Shares redeemed | (75,901) | (1,100,828) |
Net increase (decrease) | (10,415) | $ (192,735) |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 2,882 | $ 41,697 |
Shares redeemed | (130,069) | (2,073,042) |
Net increase (decrease) in shares outstanding before conversion | (127,187) | (2,031,345) |
Shares converted from Class R3 (See Note 1) | (9,250) | (140,500) |
Net increase (decrease) | (136,437) | $ (2,171,845) |
Year ended October 31, 2023: | | |
Shares sold | 20,292 | $ 284,024 |
Shares issued to shareholders in reinvestment of distributions | 12,754 | 168,606 |
Shares redeemed | (32,098) | (442,365) |
Net increase (decrease) | 948 | $ 10,265 |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 73,628 | $ 1,143,181 |
Shares redeemed | (19,417) | (298,069) |
Net increase (decrease) in shares outstanding before conversion | 54,211 | 845,112 |
Shares converted from SIMPLE Class (See Note 1) | (282) | (4,198) |
Net increase (decrease) | 53,929 | $ 840,914 |
Year ended October 31, 2023: | | |
Shares sold | 119,470 | $ 1,690,668 |
Shares issued to shareholders in reinvestment of distributions | 11,472 | 153,037 |
Shares redeemed | (23,660) | (333,838) |
Net increase (decrease) | 107,282 | $ 1,509,867 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 10–Other Matters
As of the date of this report, the Funds face a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Funds' investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Funds' performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date
86 | MainStay Asset Allocation Funds |
the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay Conservative Allocation Fund, MainStay Moderate Allocation Fund, MainStay Growth Allocation Fund and MainStay Equity Allocation Fund (each, a “Fund” and together, the “Funds”) and New York Life Investment Management LLC (“New York Life Investments”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of the Management Agreement for a one-year period.
In reaching the decision to approve the continuation of the Management Agreement, the Board considered information and materials furnished by New York Life Investments in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on each Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on each Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments that follow investment strategies similar to those of each Fund, if any, and, when applicable, the rationale for differences in each Fund’s management fee and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of the Management Agreement. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of the Management Agreement reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of each Fund and investment-related matters for each Fund as well as presentations from New York Life Investments personnel. In addition, the Board took into account other information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio
turnover, brokerage commissions and non-advisory services provided to each Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding each Fund’s distribution arrangements. In addition, the Board received information regarding each Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of each Fund, among other information.
In considering the continuation of the Management Agreement, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of the Management Agreement are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to each Fund by New York Life Investments; (ii) the qualifications of the portfolio managers of each Fund and the historical investment performance of each Fund and New York Life Investments; (iii) the costs of the services provided, and profits realized, by New York Life Investments with respect to its relationship with each Fund; (iv) the extent to which economies of scale have been realized or may be realized if each Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit each Fund’s shareholders; and (v) the reasonableness of each Fund’s management fee and total ordinary operating expenses. Although the Board recognized that comparisons between each Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of each Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing each Fund.
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments. The Board’s decision with respect to the Management Agreement may have also been based, in part, on the Board’s knowledge of New York Life Investments resulting from, among other things, the Board’s consideration of the Management Agreement in prior years, the advisory agreements for other funds in the
88 | MainStay Asset Allocation Funds |
MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that each Fund’s shareholders, having had the opportunity to consider other investment options, have invested in each Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of the Management Agreement during the Board’s December 6–7, 2023 meeting are summarized in more detail below. The Board considered on a Fund-by-Fund basis the factors and information deemed relevant and appropriate by the Trustees to evaluate the continuation of the Management Agreement, and the Board’s decision was made separately with respect to each Fund.
Nature, Extent and Quality of Services Provided by New York Life Investments
The Board examined the nature, extent and quality of the services that New York Life Investments provides to each Fund. The Board evaluated New York Life Investments’ experience and capabilities in serving as manager of each Fund. The Board noted 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 overseeing mutual fund service providers. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to each Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to each Fund.
The Board also considered the range of services that New York Life Investments provides to the Funds under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Funds’ compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Funds and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain
other non-advisory services to the Funds and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that New York Life Investments provides to each Fund and considered the terms of the Management Agreement. The Board evaluated New York Life Investments’ experience and performance in serving as investment adviser to the Funds and advising other portfolios and New York Life Investments’ track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at New York Life Investments. The Board considered New York Life Investments’ overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and acknowledged New York Life Investments’ commitment to further developing and strengthening compliance programs that may relate to the Funds. The Board also considered New York Life Investments’ ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Funds. In this regard, the Board considered the qualifications and experience of each Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
Because the Funds invest substantially all their assets in other funds advised by New York Life Investments or its affiliates, the Board considered information from New York Life Investments regarding the investment rationale and process for the allocation among and selection of the underlying funds in which the Funds invest.
In addition, the Board considered information provided by New York Life Investments regarding its business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that each Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating each Fund’s investment performance, the Board considered investment performance results over various periods in light of each Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, each Fund’s performance provided to the Board throughout the year. These reports include, among other items, information on each Fund’s gross and net returns, each Fund’s investment performance compared to a relevant investment category and each Fund’s benchmarks, each Fund’s risk-adjusted investment performance and each Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also
Board Consideration and Approval of Management Agreement (Unaudited) (continued)
considered information provided by ISS showing the investment performance of each Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning each Fund’s investment performance over various periods as well as discussions between each Fund’s portfolio management team and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of each Fund’s investment performance and related information supported a determination to approve the continuation of the Management Agreement.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments
The Board considered the costs of the services provided under the Management Agreement. The Board also considered the profitability of New York Life Investments and its affiliates due to their relationships with the Funds as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds.
The Board noted that the Funds do not pay a management fee for the allocation and other management services provided by New York Life Investments under the Management Agreement but that shareholders of the Funds indirectly pay their pro rata share of the fees and expenses of the underlying funds in which the Funds invest. The Board considered that the Funds’ investments in underlying funds managed by New York Life Investments or its affiliates indirectly benefit New York Life Investments or its affiliates. The Board noted that it considers the profits realized by New York Life Investments and its affiliates with respect to the underlying MainStay Funds as part of the annual contract review process for those funds.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments, and profitability of New York Life Investments and its affiliates due to their relationships with each Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’ continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of each Fund. The Board also considered the financial resources of New York Life Investments and acknowledged that New York Life Investments must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life
Investments to continue to provide high-quality services to the Funds. The Board recognized that each Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to each Fund and considered that other profitability methodologies may also be reasonable.
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 each Fund, including reputational and other indirect benefits. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Funds, including the potential rationale for and costs associated with investments in this money market fund by the Funds, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Funds.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement for managing each Fund, New York Life Investments’ affiliates also earn revenues from serving each Fund in various other capacities, including as each Fund’s transfer agent and distributor. The Board considered information about these other revenues and their impact on the profitability of the relationship with each Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with each Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management Agreement, the Board considered the profitability of New York Life Investments’ relationship with the Funds on a pre-tax basis and without regard to distribution expenses incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates due to their relationships with each Fund were not excessive.
90 | MainStay Asset Allocation Funds |
Management Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under the Management Agreement and each Fund’s total ordinary operating expenses.
In assessing the reasonableness of each Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. Because the Funds do not pay a management fee to New York Life Investments, the Board considered the reasonableness of fees and expenses the Funds indirectly pay by investing in underlying funds that charge a management fee. The Board considered New York Life Investments’ process for monitoring and addressing potential conflicts of interest in the selection of underlying 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/or other funds, that follow investment strategies similar to those of each Fund, if any. The Board considered the contractual management fee schedule for each Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Funds, as compared with other investment advisory clients. Additionally, the Board considered the impact of voluntary waivers and expense limitation arrangements on each Fund’s net management fee and expenses. The Board also considered that in proposing fees for each Fund, New York Life Investments considers the competitive marketplace for mutual funds.
Because the Funds invest substantially all their assets in other funds advised by New York Life Investments or its affiliates, the Board also considered information provided by New York Life Investments regarding the fees and expenses associated with the Funds’ investments in other funds, including New York Life Investments’ finding that the applicable Fund’s fees and expenses do not duplicate the fees and expenses of the corresponding acquired fund (when required by Rule 12d1-4 under the 1940 Act).
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of each Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and each Fund’s transfer agent, charges each Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Funds.
The Board considered the extent to which transfer agent fees contributed to the total expenses of each Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that each Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to each Fund and whether each Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with each Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized the difficulty of determining economies of scale with precision, the Board acknowledged that economies of scale may be shared with each Fund in a number of ways, including, for example, through the imposition of fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to each Fund. The Board reviewed information from New York Life Investments showing how each 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 ISS showing how each Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels. The Board noted that the Funds do not pay a management fee and that the Board separately considers economies of scale as part of its review of the management agreements of underlying MainStay Funds in which the Funds invest and the benefit of any breakpoints in the management fee schedules for the underlying MainStay Funds would pass through to shareholders of the Funds at the specified levels of underlying MainStay Fund assets.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of each Fund’s shareholders through each Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Board Consideration and Approval of Management Agreement (Unaudited) (continued)
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of the Management Agreement.
92 | MainStay Asset Allocation Funds |
Discussion of the Operation and Effectiveness of the Allocation Funds' Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Allocation Funds have adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Allocation Funds' liquidity risk. The Allocation Funds' liquidity risk is the risk that the Allocation Funds could not meet requests to redeem shares issued by the Allocation Funds without significant dilution of the remaining investors’ interests in the Allocation Funds. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Allocation Funds' liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Allocation Funds' liquidity developments and (iii) the Allocation Funds' investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Allocation Funds' liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Allocation Fund's portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator's liquidity classification determinations are made by taking into account the Allocation Funds' reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Allocation Funds' prospectus for more information regarding the Allocation Funds' exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
Each Allocation Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on Form N-PX. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Allocation Funds' holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
94 | MainStay Asset Allocation Funds |
Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022177 MS081-24 | MSAA10-06/24 |
(NYLIM) NL224
MainStay Epoch Capital Growth Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Since Inception | Gross Expense Ratio2 |
Class A Shares | Maximum 5.50% Initial Sales Charge | With sales charges | 6/30/2016 | 13.35% | 11.86% | 12.39% | 12.60% | 1.26% |
| | Excluding sales charges | | 19.95 | 18.37 | 13.66 | 13.42 | 1.26 |
Investor Class Shares3 | Maximum 5.00% Initial Sales Charge | With sales charges | 6/30/2016 | 13.79 | 12.09 | 12.06 | 12.33 | 1.46 |
| | Excluding sales charges | | 19.77 | 17.98 | 13.33 | 13.15 | 1.46 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 6/30/2016 | 18.37 | 16.18 | 12.53 | 12.33 | 2.20 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 19.37 | 17.18 | 12.53 | 12.33 | 2.20 |
Class I Shares | No Sales Charge | | 6/30/2016 | 20.15 | 18.67 | 13.96 | 13.70 | 1.01 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Since Inception |
MSCI World Index (Net)2 | 20.29% | 18.39% | 10.46% | 11.13% |
Morningstar Global Large Stock Growth Category Average3 | 21.62 | 17.03 | 9.29 | 10.70 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | The Fund has selected the MSCI World Index (Net), which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The MSCI World Index (Net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. |
3. | The Morningstar Global Large Stock Growth Category Average is a representative of funds that invest in a variety of international stocks and typically skew towards large caps that are more expensive or projected to grow faster than other global large-cap stocks. World large stock growth portfolios have few geographical limitations. It is common for these portfolios to invest the majority of their assets in developed markets, with the remainder divided among the globe's emerging markets. These funds are not significantly overweight U.S. equity exposure relative to the Morningstar Global Market Index and maintain at least a 20% absolute U.S. exposure. Results are based on average total returns of similar funds with all dividends 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 Capital Growth Fund |
Cost in Dollars of a $1,000 Investment in MainStay Epoch Capital 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,199.50 | $ 6.29 | $1,019.14 | $ 5.77 | 1.15% |
Investor Class Shares | $1,000.00 | $1,197.70 | $ 7.76 | $1,017.80 | $ 7.12 | 1.42% |
Class C Shares | $1,000.00 | $1,193.70 | $11.84 | $1,014.07 | $10.87 | 2.17% |
Class I Shares | $1,000.00 | $1,201.50 | $ 4.93 | $1,020.39 | $ 4.52 | 0.90% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Country Composition as of April 30, 2024 (Unaudited)
United States | 72.0% |
Switzerland | 3.7 |
United Kingdom | 3.0 |
China | 2.9 |
Canada | 2.3 |
Spain | 2.2 |
Netherlands | 2.1 |
France | 1.9 |
Sweden | 1.7 |
Denmark | 1.6 |
Japan | 1.3 |
Taiwan | 1.2 |
Australia | 1.0 |
Germany | 1.0% |
South Africa | 0.8 |
Jordan | 0.7 |
Italy | 0.7 |
Singapore | 0.6 |
Malta | 0.6 |
Mexico | 0.6 |
Thailand | 0.4 |
Indonesia | 0.4 |
Other Assets, Less Liabilities | –2.7 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Ameriprise Financial, Inc. |
2. | Alphabet, Inc., Class A |
3. | Costco Wholesale Corp. |
4. | Domino's Pizza, Inc. |
5. | Industria de Diseno Textil SA |
6. | Meta Platforms, Inc., Class A |
7. | Deckers Outdoor Corp. |
8. | LPL Financial Holdings, Inc. |
9. | Medpace Holdings, Inc. |
10. | Eagle Materials, Inc. |
8 | MainStay Epoch Capital Growth Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 99.2% |
Australia 1.0% |
Aristocrat Leisure Ltd. (Hotels, Restaurants & Leisure) | 66,336 | $ 1,699,409 |
Canada 2.3% |
Alimentation Couche-Tard, Inc. (Consumer Staples Distribution & Retail) | 48,652 | 2,696,508 |
Constellation Software, Inc. (Software) | 517 | 1,331,052 |
| | 4,027,560 |
China 2.9% |
BYD Co. Ltd., Class H (Automobiles) | 38,500 | 1,055,218 |
Chongqing Brewery Co. Ltd., Class A (Beverages) | 118,274 | 1,148,608 |
SITC International Holdings Co. Ltd. (Marine Transportation) | 590,000 | 1,285,200 |
Yadea Group Holdings Ltd. (Automobiles) (a) | 742,000 | 1,427,640 |
| | 4,916,666 |
Denmark 1.6% |
Coloplast A/S, Class B (Health Care Equipment & Supplies) | 6,929 | 837,096 |
Novo Nordisk A/S, Class B (Pharmaceuticals) | 14,453 | 1,857,434 |
| | 2,694,530 |
France 1.9% |
Edenred SE (Financial Services) | 22,229 | 1,053,442 |
Hermes International SCA (Textiles, Apparel & Luxury Goods) | 352 | 846,246 |
Sartorius Stedim Biotech (Life Sciences Tools & Services) | 6,643 | 1,434,591 |
| | 3,334,279 |
Germany 1.0% |
Merck KGaA (Pharmaceuticals) | 10,504 | 1,669,436 |
Indonesia 0.4% |
Bank Central Asia Tbk. PT (Banks) | 1,192,500 | 714,797 |
Italy 0.7% |
Recordati Industria Chimica e Farmaceutica SpA (Pharmaceuticals) | 21,789 | 1,157,866 |
| Shares | Value |
|
Japan 1.3% |
Goldwin, Inc. (Textiles, Apparel & Luxury Goods) | 17,900 | $ 1,086,015 |
Hoya Corp. (Health Care Equipment & Supplies) | 9,800 | 1,138,641 |
| | 2,224,656 |
Jordan 0.7% |
Hikma Pharmaceuticals plc (Pharmaceuticals) | 52,367 | 1,257,812 |
Malta 0.6% |
Kindred Group plc, SDR (Hotels, Restaurants & Leisure) | 89,401 | 1,001,133 |
Mexico 0.6% |
Grupo Aeroportuario del Pacifico SAB de CV, Class B (Transportation Infrastructure) | 53,620 | 976,636 |
Netherlands 2.1% |
ASML Holding NV (Semiconductors & Semiconductor Equipment) | 1,419 | 1,236,833 |
BE Semiconductor Industries NV (Semiconductors & Semiconductor Equipment) | 17,577 | 2,310,931 |
| | 3,547,764 |
Singapore 0.6% |
Singapore Exchange Ltd. (Capital Markets) | 156,500 | 1,071,177 |
South Africa 0.8% |
FirstRand Ltd. (Financial Services) | 421,597 | 1,452,271 |
Spain 2.2% |
Amadeus IT Group SA (Hotels, Restaurants & Leisure) | 12,528 | 794,891 |
Industria de Diseno Textil SA (Specialty Retail) (b) | 65,544 | 2,976,908 |
| | 3,771,799 |
Sweden 1.7% |
Atlas Copco AB, Class B (Machinery) | 52,884 | 798,489 |
Epiroc AB, Class B (Machinery) | 49,111 | 818,923 |
Evolution AB (Hotels, Restaurants & Leisure) | 11,384 | 1,266,483 |
| | 2,883,895 |
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Switzerland 3.7% |
EMS-Chemie Holding AG (Chemicals) | 1,353 | $ 1,080,491 |
Kuehne + Nagel International AG (Registered) (Marine Transportation) | 6,193 | 1,641,176 |
Logitech International SA (Registered) (Technology Hardware, Storage & Peripherals) | 20,755 | 1,613,386 |
Partners Group Holding AG (Capital Markets) | 1,540 | 1,974,630 |
| | 6,309,683 |
Taiwan 1.2% |
Eclat Textile Co. Ltd. (Textiles, Apparel & Luxury Goods) | 88,000 | 1,392,010 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment) | 28,000 | 674,676 |
| | 2,066,686 |
Thailand 0.4% |
Fabrinet (Electronic Equipment, Instruments & Components) (c) | 4,477 | 774,834 |
United Kingdom 3.0% |
Auto Trader Group plc (Interactive Media & Services) (a) | 190,901 | 1,653,148 |
Diageo plc (Beverages) | 28,631 | 987,296 |
Games Workshop Group plc (Leisure Products) | 6,072 | 750,984 |
Howden Joinery Group plc (Trading Companies & Distributors) | 162,248 | 1,762,429 |
| | 5,153,857 |
United States 68.5% |
Accenture plc, Class A (IT Services) | 3,751 | 1,128,714 |
Adobe, Inc. (Software) (c) | 2,343 | 1,084,411 |
Alphabet, Inc., Class A (Interactive Media & Services) (c) | 18,995 | 3,092,006 |
Ameriprise Financial, Inc. (Capital Markets) | 7,589 | 3,125,074 |
Apple, Inc. (Technology Hardware, Storage & Peripherals) | 8,337 | 1,420,041 |
Applied Materials, Inc. (Semiconductors & Semiconductor Equipment) | 10,669 | 2,119,397 |
Arista Networks, Inc. (Communications Equipment) (c) | 10,141 | 2,601,775 |
Automatic Data Processing, Inc. (Professional Services) | 5,918 | 1,431,505 |
| Shares | Value |
|
United States (continued) |
Broadcom, Inc. (Semiconductors & Semiconductor Equipment) | 1,771 | $ 2,302,778 |
Chemed Corp. (Health Care Providers & Services) | 4,048 | 2,299,264 |
Copart, Inc. (Commercial Services & Supplies) (c) | 25,661 | 1,393,649 |
Costco Wholesale Corp. (Consumer Staples Distribution & Retail) | 4,191 | 3,029,674 |
CSL Ltd. (Biotechnology) | 10,262 | 1,834,380 |
Deckers Outdoor Corp. (Textiles, Apparel & Luxury Goods) (c) | 3,520 | 2,881,014 |
Domino's Pizza, Inc. (Hotels, Restaurants & Leisure) | 5,698 | 3,015,781 |
Donaldson Co., Inc. (Machinery) | 21,272 | 1,535,838 |
Eagle Materials, Inc. (Construction Materials) | 10,955 | 2,746,528 |
Electronic Arts, Inc. (Entertainment) | 6,951 | 881,526 |
Eli Lilly & Co. (Pharmaceuticals) | 3,432 | 2,680,735 |
Encompass Health Corp. (Health Care Providers & Services) | 23,010 | 1,918,574 |
Etsy, Inc. (Broadline Retail) (c) | 11,714 | 804,400 |
Expeditors International of Washington, Inc. (Air Freight & Logistics) | 11,197 | 1,246,338 |
Fastenal Co. (Trading Companies & Distributors) | 37,144 | 2,523,563 |
Ferguson plc (Trading Companies & Distributors) | 9,371 | 1,976,710 |
Gentex Corp. (Automobile Components) | 45,800 | 1,570,940 |
Graco, Inc. (Machinery) | 13,287 | 1,065,617 |
HCA Healthcare, Inc. (Health Care Providers & Services) | 4,356 | 1,349,576 |
Hess Midstream LP, Class A (Oil, Gas & Consumable Fuels) | 57,030 | 1,944,723 |
Home Depot, Inc. (The) (Specialty Retail) | 4,642 | 1,551,449 |
IDEXX Laboratories, Inc. (Health Care Equipment & Supplies) (c) | 2,024 | 997,346 |
KLA Corp. (Semiconductors & Semiconductor Equipment) | 2,860 | 1,971,369 |
Lam Research Corp. (Semiconductors & Semiconductor Equipment) | 2,981 | 2,666,236 |
LPL Financial Holdings, Inc. (Capital Markets) | 10,680 | 2,874,308 |
Manhattan Associates, Inc. (Software) (c) | 5,577 | 1,149,197 |
Mastercard, Inc., Class A (Financial Services) | 5,500 | 2,481,600 |
Medpace Holdings, Inc. (Life Sciences Tools & Services) (c) | 7,281 | 2,827,576 |
10 | MainStay Epoch Capital Growth Fund |
| Shares | Value |
Common Stocks (continued) |
United States (continued) |
Meta Platforms, Inc., Class A (Interactive Media & Services) | 6,896 | $ 2,966,452 |
Mettler-Toledo International, Inc. (Life Sciences Tools & Services) (c) | 1,111 | 1,366,197 |
Microsoft Corp. (Software) | 5,863 | 2,282,642 |
Monster Beverage Corp. (Beverages) (c) | 48,297 | 2,581,475 |
NetApp, Inc. (Technology Hardware, Storage & Peripherals) | 18,292 | 1,869,625 |
PACCAR, Inc. (Machinery) | 12,187 | 1,293,163 |
Paychex, Inc. (Professional Services) | 20,095 | 2,387,487 |
Pioneer Natural Resources Co. (Oil, Gas & Consumable Fuels) | 5,049 | 1,359,797 |
Pool Corp. (Distributors) | 2,739 | 992,970 |
QUALCOMM, Inc. (Semiconductors & Semiconductor Equipment) | 12,484 | 2,070,471 |
Regeneron Pharmaceuticals, Inc. (Biotechnology) (c) | 1,815 | 1,616,548 |
Rollins, Inc. (Commercial Services & Supplies) | 27,740 | 1,236,094 |
Starbucks Corp. (Hotels, Restaurants & Leisure) | 15,916 | 1,408,407 |
Thermo Fisher Scientific, Inc. (Life Sciences Tools & Services) | 1,991 | 1,132,322 |
TJX Cos., Inc. (The) (Specialty Retail) | 18,413 | 1,732,479 |
TKO Group Holdings, Inc. (Entertainment) | 14,662 | 1,388,052 |
Ulta Beauty, Inc. (Specialty Retail) (c) | 3,839 | 1,554,181 |
Union Pacific Corp. (Ground Transportation) | 5,720 | 1,356,555 |
UnitedHealth Group, Inc. (Health Care Providers & Services) | 4,873 | 2,357,070 |
Veeva Systems, Inc., Class A (Health Care Technology) (c) | 8,326 | 1,653,211 |
VeriSign, Inc. (IT Services) (c) | 7,061 | 1,196,698 |
Vertex Pharmaceuticals, Inc. (Biotechnology) (c) | 2,684 | 1,054,302 |
Visa, Inc., Class A (Financial Services) | 8,854 | 2,378,273 |
Waters Corp. (Life Sciences Tools & Services) (c) | 2,959 | 914,449 |
West Pharmaceutical Services, Inc. (Life Sciences Tools & Services) | 3,762 | 1,344,840 |
Yum! Brands, Inc. (Hotels, Restaurants & Leisure) | 18,050 | 2,549,563 |
Zoetis, Inc. (Pharmaceuticals) | 12,407 | 1,975,691 |
| | 117,542,626 |
Total Common Stocks (Cost $133,065,156) | | 170,249,372 |
|
| Number of Warrants | | Value |
|
Warrants 0.0% ‡ |
Canada 0.0% ‡ |
Constellation Software, Inc. (Software) | | | |
Expires 3/31/40 (c)(d)(e) | 721 | | $ — |
Total Warrants (Cost $0) | | | — |
|
| Shares | | |
|
Short-Term Investments 3.5% |
Affiliated Investment Company 1.6% |
United States 1.6% |
MainStay U.S. Government Liquidity Fund, 5.242% (f) | 2,716,933 | | 2,716,933 |
Unaffiliated Investment Company 1.9% |
United States 1.9% |
Invesco Government & Agency Portfolio, 5.309% (f)(g) | 3,202,766 | | 3,202,766 |
Total Short-Term Investments (Cost $5,919,699) | | | 5,919,699 |
Total Investments (Cost $138,984,855) | 102.7% | | 176,169,071 |
Other Assets, Less Liabilities | (2.7) | | (4,599,309) |
Net Assets | 100.0% | | $ 171,569,762 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
‡ | 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(a)(2) of the Securities Act of 1933, as amended. |
(b) | All or a portion of this security was held on loan. As of April 30, 2024, the aggregate market value of securities on loan was $2,947,613. The Fund received cash collateral with a value of $3,202,766. (See Note 2(I)) |
(c) | Non-income producing security. |
(d) | Illiquid security—As of April 30, 2024, the total market value deemed illiquid under procedures approved by the Board of Trustees was $0, which represented less than one-tenth of a percent of the Fund’s net assets. |
(e) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(f) | Current yield as of April 30, 2024. |
(g) | Represents a security purchased with cash collateral received for securities on loan. |
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 1,119 | $ 28,219 | $ (26,621) | $ — | $ — | $ 2,717 | $ 53 | $ — | 2,717 |
Abbreviation(s): |
SDR—Special Drawing Right |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | | | | | | | |
Australia | $ — | | $ 1,699,409 | | $ — | | $ 1,699,409 |
China | — | | 4,916,666 | | — | | 4,916,666 |
Denmark | — | | 2,694,530 | | — | | 2,694,530 |
France | — | | 3,334,279 | | — | | 3,334,279 |
Germany | — | | 1,669,436 | | — | | 1,669,436 |
Indonesia | — | | 714,797 | | — | | 714,797 |
Italy | — | | 1,157,866 | | — | | 1,157,866 |
Japan | — | | 2,224,656 | | — | | 2,224,656 |
Jordan | — | | 1,257,812 | | — | | 1,257,812 |
Malta | — | | 1,001,133 | | — | | 1,001,133 |
Netherlands | — | | 3,547,764 | | — | | 3,547,764 |
Singapore | — | | 1,071,177 | | — | | 1,071,177 |
South Africa | — | | 1,452,271 | | — | | 1,452,271 |
Spain | — | | 3,771,799 | | — | | 3,771,799 |
Sweden | — | | 2,883,895 | | — | | 2,883,895 |
Switzerland | — | | 6,309,683 | | — | | 6,309,683 |
Taiwan | — | | 2,066,686 | | — | | 2,066,686 |
United Kingdom | — | | 5,153,857 | | — | | 5,153,857 |
United States | 113,731,536 | | 3,811,090 | | — | | 117,542,626 |
All Other Countries | 5,779,030 | | — | | — | | 5,779,030 |
Total Common Stocks | 119,510,566 | | 50,738,806 | | — | | 170,249,372 |
Warrants | — | | — | | — | | — |
Short-Term Investments | | | | | | | |
Affiliated Investment Company | 2,716,933 | | — | | — | | 2,716,933 |
Unaffiliated Investment Company | 3,202,766 | | — | | — | | 3,202,766 |
Total Short-Term Investments | 5,919,699 | | — | | — | | 5,919,699 |
Total Investments in Securities | $ 125,430,265 | | $ 50,738,806 | | $ — | | $ 176,169,071 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
12 | MainStay Epoch Capital Growth Fund |
The table below sets forth the diversification of the Fund’s investments by industry.
Industry Diversification
| Value | | Percent †^ |
Air Freight & Logistics | $ 1,246,338 | | 0.7% |
Automobile Components | 1,570,940 | | 0.9 |
Automobiles | 2,482,858 | | 1.4 |
Banks | 714,797 | | 0.4 |
Beverages | 4,717,379 | | 2.8 |
Biotechnology | 4,505,230 | | 2.6 |
Broadline Retail | 804,400 | | 0.5 |
Capital Markets | 9,045,189 | | 5.3 |
Chemicals | 1,080,491 | | 0.6 |
Commercial Services & Supplies | 2,629,743 | | 1.5 |
Communications Equipment | 2,601,775 | | 1.5 |
Construction Materials | 2,746,528 | | 1.6 |
Consumer Staples Distribution & Retail | 5,726,182 | | 3.3 |
Distributors | 992,970 | | 0.6 |
Electronic Equipment, Instruments & Components | 774,834 | | 0.5 |
Entertainment | 2,269,578 | | 1.3 |
Financial Services | 7,365,586 | | 4.3 |
Ground Transportation | 1,356,555 | | 0.8 |
Health Care Equipment & Supplies | 2,973,083 | | 1.7 |
Health Care Providers & Services | 7,924,484 | | 4.6 |
Health Care Technology | 1,653,211 | | 1.0 |
Hotels, Restaurants & Leisure | 11,735,667 | | 6.8 |
Interactive Media & Services | 7,711,606 | | 4.5 |
IT Services | 2,325,412 | | 1.4 |
Leisure Products | 750,984 | | 0.4 |
Life Sciences Tools & Services | 9,019,975 | | 5.3 |
Machinery | 5,512,030 | | 3.2 |
Marine Transportation | 2,926,376 | | 1.7 |
Oil, Gas & Consumable Fuels | 3,304,520 | | 1.9 |
Pharmaceuticals | 10,598,974 | | 6.2 |
Professional Services | 3,818,992 | | 2.2 |
Semiconductors & Semiconductor Equipment | 15,352,691 | | 8.9 |
Software | 5,847,302 | | 3.4 |
Specialty Retail | 7,815,017 | | 4.6 |
Technology Hardware, Storage & Peripherals | 4,903,052 | | 2.9 |
Textiles, Apparel & Luxury Goods | 6,205,285 | | 3.6 |
Trading Companies & Distributors | 6,262,702 | | 3.7 |
Transportation Infrastructure | 976,636 | | 0.6 |
| 170,249,372 | | 99.2 |
Short-Term Investments | 5,919,699 | | 3.5 |
Other Assets, Less Liabilities | (4,599,309) | | (2.7) |
Net Assets | $171,569,762 | | 100.0% |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $136,267,922) including securities on loan of $2,947,613 | $173,452,138 |
Investment in affiliated investment companies, at value (identified cost $2,716,933) | 2,716,933 |
Cash | 22 |
Cash denominated in foreign currencies (identified cost $22,004) | 21,845 |
Receivables: | |
Dividends | 383,323 |
Fund shares sold | 259,160 |
Securities lending | 2,145 |
Other assets | 36,357 |
Total assets | 176,871,923 |
Liabilities |
Cash collateral received for securities on loan | 3,202,766 |
Payables: | |
Investment securities purchased | 1,765,129 |
Fund shares redeemed | 166,520 |
Manager (See Note 3) | 98,942 |
Custodian | 29,794 |
Professional fees | 15,353 |
NYLIFE Distributors (See Note 3) | 12,845 |
Transfer agent (See Note 3) | 10,198 |
Accrued expenses | 614 |
Total liabilities | 5,302,161 |
Net assets | $171,569,762 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 11,961 |
Additional paid-in-capital | 132,644,857 |
| 132,656,818 |
Total distributable earnings (loss) | 38,912,944 |
Net assets | $171,569,762 |
Class A | |
Net assets applicable to outstanding shares | $ 51,623,104 |
Shares of beneficial interest outstanding | 3,607,483 |
Net asset value per share outstanding | $ 14.31 |
Maximum sales charge (5.50% of offering price) | 0.83 |
Maximum offering price per share outstanding | $ 15.14 |
Investor Class | |
Net assets applicable to outstanding shares | $ 3,722,441 |
Shares of beneficial interest outstanding | 262,617 |
Net asset value per share outstanding | $ 14.17 |
Maximum sales charge (5.00% of offering price) | 0.75 |
Maximum offering price per share outstanding | $ 14.92 |
Class C | |
Net assets applicable to outstanding shares | $ 1,426,323 |
Shares of beneficial interest outstanding | 106,526 |
Net asset value and offering price per share outstanding | $ 13.39 |
Class I | |
Net assets applicable to outstanding shares | $114,797,894 |
Shares of beneficial interest outstanding | 7,984,744 |
Net asset value and offering price per share outstanding | $ 14.38 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay Epoch Capital Growth Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $54,855) | $ 1,117,712 |
Dividends-affiliated | 53,425 |
Securities lending, net | 3,238 |
Total income | 1,174,375 |
Expenses | |
Manager (See Note 3) | 596,178 |
Transfer agent (See Note 3) | 77,578 |
Distribution/Service—Class A (See Note 3) | 61,403 |
Distribution/Service—Investor Class (See Note 3) | 4,664 |
Distribution/Service—Class C (See Note 3) | 6,509 |
Registration | 32,968 |
Professional fees | 32,536 |
Custodian | 28,079 |
Shareholder communication | 4,783 |
Trustees | 1,740 |
Miscellaneous | 4,476 |
Total expenses before waiver/reimbursement | 850,914 |
Expense waiver/reimbursement from Manager (See Note 3) | (56,185) |
Net expenses | 794,729 |
Net investment income (loss) | 379,646 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | 2,451,735 |
Foreign currency transactions | 134 |
Net realized gain (loss) | 2,451,869 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 22,998,647 |
Translation of other assets and liabilities in foreign currencies | (1,282) |
Net change in unrealized appreciation (depreciation) | 22,997,365 |
Net realized and unrealized gain (loss) | 25,449,234 |
Net increase (decrease) in net assets resulting from operations | $25,828,880 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 379,646 | $ 611,011 |
Net realized gain (loss) | 2,451,869 | (391,298) |
Net change in unrealized appreciation (depreciation) | 22,997,365 | 8,705,536 |
Net increase (decrease) in net assets resulting from operations | 25,828,880 | 8,925,249 |
Distributions to shareholders: | | |
Class A | (187,510) | (257,794) |
Investor Class | (11,877) | (11,851) |
Class C | (346) | (8,497) |
Class I | (581,113) | (609,460) |
Total distributions to shareholders | (780,846) | (887,602) |
Capital share transactions: | | |
Net proceeds from sales of shares | 44,513,076 | 78,496,435 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 775,082 | 880,683 |
Cost of shares redeemed | (26,251,409) | (24,019,094) |
Increase (decrease) in net assets derived from capital share transactions | 19,036,749 | 55,358,024 |
Net increase (decrease) in net assets | 44,084,783 | 63,395,671 |
Net Assets |
Beginning of period | 127,484,979 | 64,089,308 |
End of period | $171,569,762 | $127,484,979 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay Epoch Capital Growth Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 11.98 | | $ 10.44 | | $ 17.09 | | $ 14.43 | | $ 13.20 | | $ 12.21 |
Net investment income (loss) (a) | 0.02 | | 0.06 | | 0.03 | | (0.01) | | 0.00‡ | | 0.07 |
Net realized and unrealized gain (loss) | 2.36 | | 1.61 | | (2.86) | | 5.43 | | 1.92 | | 1.81 |
Total from investment operations | 2.38 | | 1.67 | | (2.83) | | 5.42 | | 1.92 | | 1.88 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.05) | | (0.02) | | — | | (0.03) | | (0.07) | | (0.08) |
From net realized gain on investments | (0.00)‡ | | (0.11) | | (3.82) | | (2.73) | | (0.62) | | (0.81) |
Total distributions | (0.05) | | (0.13) | | (3.82) | | (2.76) | | (0.69) | | (0.89) |
Net asset value at end of period | $ 14.31 | | $ 11.98 | | $ 10.44 | | $ 17.09 | | $ 14.43 | | $ 13.20 |
Total investment return (b) | 19.95% | | 16.09% | | (20.79)% | | 42.61% | | 15.31% | | 16.82% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.32%†† | | 0.51% | | 0.30% | | (0.08)% | | 0.01% | | 0.58% |
Net expenses (c) | 1.15%†† | | 1.15% | | 1.15% | | 1.15% | | 1.13% | | 1.15% |
Expenses (before waiver/reimbursement) (c) | 1.22%†† | | 1.26% | | 1.25% | | 1.36% | | 1.16% | | 1.27% |
Portfolio turnover rate | 10% | | 30% | | 31% | | 80% | | 43% | | 46% |
Net assets at end of period (in 000’s) | $ 51,623 | | $ 38,828 | | $ 20,880 | | $ 21,767 | | $ 6,733 | | $ 4,041 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 11.87 | | $ 10.35 | | $ 17.02 | | $ 14.40 | | $ 13.16 | | $ 12.18 |
Net investment income (loss) (a) | 0.00‡ | | 0.03 | | 0.01 | | (0.05) | | (0.02) | | 0.04 |
Net realized and unrealized gain (loss) | 2.34 | | 1.60 | | (2.86) | | 5.40 | | 1.92 | | 1.80 |
Total from investment operations | 2.34 | | 1.63 | | (2.85) | | 5.35 | | 1.90 | | 1.84 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.04) | | — | | — | | (0.00)‡ | | (0.04) | | (0.05) |
From net realized gain on investments | (0.00)‡ | | (0.11) | | (3.82) | | (2.73) | | (0.62) | | (0.81) |
Total distributions | (0.04) | | (0.11) | | (3.82) | | (2.73) | | (0.66) | | (0.86) |
Net asset value at end of period | $ 14.17 | | $ 11.87 | | $ 10.35 | | $ 17.02 | | $ 14.40 | | $ 13.16 |
Total investment return (b) | 19.77% | | 15.81% | | (21.04)% | | 42.05% | | 15.14% | | 16.42% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.05%†† | | 0.26% | | 0.05% | | (0.31)% | | (0.17)% | | 0.30% |
Net expenses (c) | 1.42%†† | | 1.41% | | 1.39% | | 1.42% | | 1.34% | | 1.43% |
Expenses (before waiver/reimbursement) (c) | 1.42%†† | | 1.46% | | 1.44% | | 1.59% | | 1.36% | | 1.54% |
Portfolio turnover rate | 10% | | 30% | | 31% | | 80% | | 43% | | 46% |
Net assets at end of period (in 000's) | $ 3,722 | | $ 3,195 | | $ 1,134 | | $ 1,648 | | $ 1,416 | | $ 1,177 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
18 | MainStay Epoch Capital Growth Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 11.22 | | $ 9.86 | | $ 16.49 | | $ 14.10 | | $ 12.97 | | $ 12.04 |
Net investment income (loss) (a) | (0.04) | | (0.05) | | (0.08) | | (0.16) | | (0.12) | | (0.06) |
Net realized and unrealized gain (loss) | 2.21 | | 1.52 | | (2.73) | | 5.28 | | 1.87 | | 1.80 |
Total from investment operations | 2.17 | | 1.47 | | (2.81) | | 5.12 | | 1.75 | | 1.74 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | — | | — | | — | | (0.62) | | (0.81) |
From net realized gain on investments | (0.00)‡ | | (0.11) | | (3.82) | | (2.73) | | — | | — |
Total distributions | (0.00)‡ | | (0.11) | | (3.82) | | (2.73) | | (0.62) | | (0.81) |
Net asset value at end of period | $ 13.39 | | $ 11.22 | | $ 9.86 | | $ 16.49 | | $ 14.10 | | $ 12.97 |
Total investment return (b) | 19.37% | | 14.97% | | (21.60)% | | 41.17% | | 14.24% | | 15.59% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (0.68)%†† | | (0.43)% | | (0.71)% | | (1.09)% | | (0.92)% | | (0.46)% |
Net expenses (c) | 2.17%†† | | 2.15% | | 2.14% | | 2.17% | | 2.09% | | 2.17% |
Expenses (before waiver/reimbursement) (c) | 2.17%†† | | 2.20% | | 2.20% | | 2.34% | | 2.11% | | 2.27% |
Portfolio turnover rate | 10% | | 30% | | 31% | | 80% | | 43% | | 46% |
Net assets at end of period (in 000’s) | $ 1,426 | | $ 1,091 | | $ 794 | | $ 1,288 | | $ 1,152 | | $ 1,236 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
19
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 12.04 | | $ 10.49 | | $ 17.15 | | $ 14.47 | | $ 13.23 | | $ 12.24 |
Net investment income (loss) (a) | 0.04 | | 0.09 | | 0.06 | | 0.03 | | 0.04 | | 0.08 |
Net realized and unrealized gain (loss) | 2.38 | | 1.62 | | (2.88) | | 5.45 | | 1.92 | | 1.83 |
Total from investment operations | 2.42 | | 1.71 | | (2.82) | | 5.48 | | 1.96 | | 1.91 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.08) | | (0.05) | | (0.02) | | (0.07) | | (0.10) | | (0.11) |
From net realized gain on investments | (0.00)‡ | | (0.11) | | (3.82) | | (2.73) | | (0.62) | | (0.81) |
Total distributions | (0.08) | | (0.16) | | (3.84) | | (2.80) | | (0.72) | | (0.92) |
Net asset value at end of period | $ 14.38 | | $ 12.04 | | $ 10.49 | | $ 17.15 | | $ 14.47 | | $ 13.23 |
Total investment return (b) | 20.15% | | 16.39% | | (20.63)% | | 42.99% | | 15.58% | | 17.11% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.58%†† | | 0.75% | | 0.54% | | 0.21% | | 0.29% | | 0.66% |
Net expenses (c) | 0.90%†† | | 0.90% | | 0.90% | | 0.90% | | 0.90% | | 0.90% |
Expenses (before waiver/reimbursement) (c) | 0.97%†† | | 1.01% | | 1.00% | | 1.10% | | 0.93% | | 1.00% |
Portfolio turnover rate | 10% | | 30% | | 31% | | 80% | | 43% | | 46% |
Net assets at end of period (in 000’s) | $ 114,798 | | $ 84,371 | | $ 41,282 | | $ 53,944 | | $ 56,502 | | $ 119,464 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
20 | MainStay Epoch Capital Growth Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Epoch Capital Growth Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | June 30, 2016 |
Investor Class | June 30, 2016 |
Class C | June 30, 2016 |
Class I | June 30, 2016 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I shares are offered at NAV without a sales charge. Depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. 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 is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that
Notes to Financial Statements (Unaudited) (continued)
establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value
determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Certain securities held by the Fund may principally trade in foreign markets. Events may occur between the time the foreign markets close and the time at which the Fund's 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 Valuation Designee conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Valuation Designee may, pursuant to the Valuation Procedures, adjust the value of the local price to reflect the estimated 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, certain 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 Valuation Procedures and are generally categorized as Level 2 in the hierarchy.
If the principal market of certain foreign equity securities is closed in observance of a local foreign holiday, these securities are valued using the last closing price of regular trading on the relevant exchange and fair valued by applying factors provided by a third-party vendor in accordance with the Valuation Procedures. These securities are generally categorized as Level 2 in the hierarchy.
22 | MainStay Epoch Capital Growth Fund |
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The
Fund's federal, state and local income tax 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) Foreign Taxes. The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which it invests. A portion of the taxes on gains on investments or currency purchases/repatriation may be reclaimable. The Fund will accrue such taxes and reclaims as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
The Fund may be subject to taxation on realized capital gains, repatriation proceeds and other transaction-based taxes imposed by certain countries in which it invests. The Fund will accrue such taxes as applicable based upon its current interpretation of tax rules and regulations that exist in the market in which it invests. Capital gains taxes relating to positions still held are reflected as a liability in the Statement of Assets and Liabilities, as well as an adjustment to the Fund's net unrealized appreciation (depreciation). Taxes related to capital gains realized, if any, are reflected as part of net realized gain (loss) in the Statement of Operations. Changes in tax liabilities related to capital gains taxes on unrealized investment gains, if any, are reflected as part of the change in net unrealized appreciation (depreciation) on investments in the Statement of Operations. Transaction-based charges are generally assessed as a percentage of the transaction amount.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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
Notes to Financial Statements (Unaudited) (continued)
under the shareholder services plans and/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(G) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may
include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(J) Rights and Warrants. Rights are certificates that permit the holder to purchase a certain number of shares, or a fractional share, of a new stock from the issuer at a specific price. Warrants are instruments that entitle the holder to buy an equity security at a specific price for a specific period of time. 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.
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 its investment in warrants if such warrants are not exercised by the date of its expiration. The Fund is exposed to risk until the sale or exercise of each right or warrant is completed.
(K) Foreign Securities Risk. The Fund may invest in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult to value. 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, among other things, economic or political developments in a specific country, industry or region.
24 | MainStay Epoch Capital Growth Fund |
(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Epoch Investment Partners, Inc. (“Epoch” or the “Subadvisor”), a registered investment adviser, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and Epoch, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.75% of the Fund's average daily net assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 1.15% and Class I, 0.90%. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $596,178 and
waived fees and/or reimbursed expenses in the amount of $56,185 and paid the Subadvisor fees in the amount of $269,996.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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, for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $13,407 and $216, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $654 and $2,522, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent
Notes to Financial Statements (Unaudited) (continued)
services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $22,436 | $— |
Investor Class | 5,329 | — |
Class C | 1,860 | — |
Class I | 47,953 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $139,980,179 | $38,835,363 | $(2,646,471) | $36,188,892 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $223,315 |
Long-Term Capital Gains | 664,287 |
Total | $887,602 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $33,668 and $14,905, respectively.
26 | MainStay Epoch Capital Growth Fund |
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 765,320 | $ 10,654,028 |
Shares issued to shareholders in reinvestment of distributions | 13,900 | 183,616 |
Shares redeemed | (437,706) | (6,190,157) |
Net increase (decrease) in shares outstanding before conversion | 341,514 | 4,647,487 |
Shares converted into Class A (See Note 1) | 24,209 | 348,667 |
Net increase (decrease) | 365,723 | $ 4,996,154 |
Year ended October 31, 2023: | | |
Shares sold | 1,628,163 | $ 19,874,450 |
Shares issued to shareholders in reinvestment of distributions | 23,071 | 256,316 |
Shares redeemed | (430,284) | (5,125,878) |
Net increase (decrease) in shares outstanding before conversion | 1,220,950 | 15,004,888 |
Shares converted into Class A (See Note 1) | 19,946 | 241,280 |
Net increase (decrease) | 1,240,896 | $ 15,246,168 |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 28,088 | $ 392,753 |
Shares issued to shareholders in reinvestment of distributions | 907 | 11,877 |
Shares redeemed | (15,221) | (215,340) |
Net increase (decrease) in shares outstanding before conversion | 13,774 | 189,290 |
Shares converted into Investor Class (See Note 1) | 1,608 | 22,762 |
Shares converted from Investor Class (See Note 1) | (21,898) | (314,904) |
Net increase (decrease) | (6,516) | $ (102,852) |
Year ended October 31, 2023: | | |
Shares sold | 182,305 | $ 2,235,615 |
Shares issued to shareholders in reinvestment of distributions | 1,067 | 11,776 |
Shares redeemed | (9,749) | (116,399) |
Net increase (decrease) in shares outstanding before conversion | 173,623 | 2,130,992 |
Shares converted into Investor Class (See Note 1) | 1,556 | 19,187 |
Shares converted from Investor Class (See Note 1) | (15,543) | (186,386) |
Net increase (decrease) | 159,636 | $ 1,963,793 |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 28,660 | $ 389,789 |
Shares issued to shareholders in reinvestment of distributions | 24 | 297 |
Shares redeemed | (15,074) | (200,664) |
Net increase (decrease) in shares outstanding before conversion | 13,610 | 189,422 |
Shares converted from Class C (See Note 1) | (4,363) | (56,525) |
Net increase (decrease) | 9,247 | $ 132,897 |
Year ended October 31, 2023: | | |
Shares sold | 175,065 | $ 1,997,848 |
Shares issued to shareholders in reinvestment of distributions | 809 | 8,497 |
Shares redeemed | (152,718) | (1,745,171) |
Net increase (decrease) in shares outstanding before conversion | 23,156 | 261,174 |
Shares converted from Class C (See Note 1) | (6,440) | (74,081) |
Net increase (decrease) | 16,716 | $ 187,093 |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 2,361,961 | $ 33,076,506 |
Shares issued to shareholders in reinvestment of distributions | 43,720 | 579,292 |
Shares redeemed | (1,428,351) | (19,645,248) |
Net increase (decrease) | 977,330 | $ 14,010,550 |
Year ended October 31, 2023: | | |
Shares sold | 4,429,760 | $ 54,388,522 |
Shares issued to shareholders in reinvestment of distributions | 54,227 | 604,094 |
Shares redeemed | (1,412,291) | (17,031,646) |
Net increase (decrease) | 3,071,696 | $ 37,960,970 |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay Epoch Capital Growth 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and Epoch in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and Epoch in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or Epoch that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, Epoch personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the qualifications of the portfolio managers of the Fund and the historical 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 Epoch with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
28 | MainStay Epoch Capital Growth Fund |
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and Epoch. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and Epoch resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and Epoch
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by Epoch, evaluating the performance of Epoch, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of Epoch and ongoing analysis of, and interactions with, Epoch with respect to, among other things, the Fund’s investment performance and risks as well as Epoch’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that Epoch provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated Epoch’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and Epoch’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at Epoch. The Board considered New York Life Investments’ and Epoch’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and Epoch and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered Epoch’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and Epoch regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmark, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of Epoch and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and Epoch
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. With respect to the profitability of Epoch’s relationship with the Fund, the Board considered information from New York Life Investments that Epoch’s subadvisory fee reflected an arm’s-length negotiation and that this fee is paid by New York Life Investments, not the Fund, and the relevance of Epoch’s profitability was considered by the Trustees in that context. On this basis, the Board primarily considered the costs and profitability for New York Life Investments and its affiliates with respect to the Fund.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and Epoch, and profitability of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’ and Epoch’s continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also
considered the financial resources of New York Life Investments and Epoch and acknowledged that New York Life Investments and Epoch must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and Epoch to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates and Epoch and its affiliates due to their relationships with the Fund, including reputational and other indirect benefits. 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 in the Fund’s portfolio securities. In this regard, the Board also requested and considered information from New York Life Investments concerning other material business relationships between Epoch and its affiliates and New York Life Investments and its affiliates and considered the existence of a strategic partnership between New York Life Investments and Epoch that relates to certain current and future products and represents a potential conflict of interest associated with New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with
30 | MainStay Epoch Capital Growth Fund |
the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund were not excessive, other expected benefits that may accrue to New York Life Investments and its affiliates are reasonable and other expected benefits that may accrue to Epoch and its affiliates are consistent with those expected for a subadvisor to a mutual fund. With respect to Epoch, the Board considered 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, acknowledging that any such profits are based on the subadvisory fee paid to Epoch by New York Life Investments, not the Fund.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to Epoch is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. 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/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
32 | MainStay Epoch Capital Growth Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
34 | MainStay Epoch Capital Growth Fund |
Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022312 MS081-24 | MSECG10-06/24 |
(NYLIM) NL284
MainStay Epoch Global Equity Yield Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years | Gross Expense Ratio2 |
Class A Shares | Maximum 5.50% Initial Sales Charge | With sales charges | 8/2/2006 | 9.99% | 5.11% | 5.30% | 4.48% | 1.16% |
| | Excluding sales charges | | 16.40 | 11.22 | 6.50 | 5.08 | 1.16 |
Investor Class Shares3 | Maximum 5.00% Initial Sales Charge | With sales charges | 11/16/2009 | 10.51 | 5.54 | 5.24 | 4.45 | 1.19 |
| | Excluding sales charges | | 16.33 | 11.09 | 6.44 | 5.05 | 1.19 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 11/16/2009 | 14.96 | 9.37 | 5.70 | 4.29 | 1.94 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 15.96 | 10.37 | 5.70 | 4.29 | 1.94 |
Class I Shares | No Sales Charge | | 12/27/2005 | 16.47 | 11.48 | 6.75 | 5.33 | 0.91 |
Class R6 Shares | No Sales Charge | | 6/17/2013 | 16.59 | 11.59 | 6.60 | 5.32 | 0.75 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
MSCI World Index (Net)2 | 20.29% | 18.39% | 10.46% | 8.87% |
Global Equity Yield Composite Index3 | 12.40 | 6.60 | 5.80 | 6.17 |
Morningstar Global Large Stock Value Category Average4 | 16.38 | 11.74 | 7.46 | 6.00 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | The Fund has selected the MSCI World Index (Net), which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The MSCI World Index (Net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. |
3. | The Global Equity Yield Composite Index consists of the MSCI World High Dividend Yield Index and the MSCI World Minimum Volatility (USD) Index weighted at 60% and 40%, respectively. The MSCI World High Dividend Yield Index is based on the MSCI World Index and is designed to reflect the performance of equities in the MSCI World Index (excluding real estate investment trusts) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. The MSCI World Minimum Volatility (USD) Index aims to reflect the performance characteristics of a minimum variance strategy applied to the MSCI large and mid-cap equity universe across 23 developed markets countries. The MSCI World Minimum Volatility (USD) Index is calculated by optimizing the MSCI World Index for the lowest absolute risk (within a given set of constraints). |
4. | Morningstar Global Large Stock Value Category Average portfolios invest in a variety of international stocks and typically skew towards large caps that are less expensive or growing more slowly than other global large-cap stocks. Global large stock value portfolios have few geographical limitations. It is common for these funds to invest the majority of their assets in developed markets, with the remainder divided among the globe’s emerging markets. These funds are not significantly overweight U.S. equity exposure relative to the Morningstar Global Market Index and maintain at least a 20% absolute U.S. exposure. |
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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,164.00 | $5.86 | $1,019.44 | $5.47 | 1.09% |
Investor Class Shares | $1,000.00 | $1,163.30 | $6.35 | $1,019.00 | $5.92 | 1.18% |
Class C Shares | $1,000.00 | $1,159.60 | $9.88 | $1,015.71 | $9.22 | 1.84% |
Class I Shares | $1,000.00 | $1,164.70 | $4.52 | $1,020.69 | $4.22 | 0.84% |
Class R6 Shares | $1,000.00 | $1,165.90 | $3.99 | $1,021.18 | $3.72 | 0.74% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Country Composition as of April 30, 2024 (Unaudited)
United States | 70.3% |
United Kingdom | 6.8 |
Canada | 5.3 |
Germany | 4.7 |
France | 4.1 |
Republic of Korea | 2.1 |
Taiwan | 1.6 |
Japan | 1.3 |
Switzerland | 1.3% |
Italy | 0.7 |
Austria | 0.6 |
Norway | 0.5 |
Other Assets, Less Liabilities | 0.7 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Broadcom, Inc. |
2. | Microsoft Corp. |
3. | International Business Machines Corp. |
4. | Coca-Cola Europacific Partners plc |
5. | Analog Devices, Inc. |
6. | Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR |
7. | TotalEnergies SE |
8. | AstraZeneca plc, Sponsored ADR |
9. | KLA Corp. |
10. | Restaurant Brands International, Inc. |
8 | MainStay Epoch Global Equity Yield Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 98.3% |
Austria 0.6% |
BAWAG Group AG (Banks) (a) | 69,990 | $ 4,184,466 |
Canada 5.3% |
BCE, Inc. (Diversified Telecommunication Services) | 108,787 | 3,574,210 |
Manulife Financial Corp. (Insurance) | 346,505 | 8,082,138 |
Nutrien Ltd. (Chemicals) | 79,916 | 4,217,167 |
Restaurant Brands International, Inc. (Hotels, Restaurants & Leisure) | 152,730 | 11,584,571 |
Rogers Communications, Inc., Class B (Wireless Telecommunication Services) (b) | 93,920 | 3,518,290 |
Royal Bank of Canada (Banks) | 39,916 | 3,861,847 |
TELUS Corp. (Diversified Telecommunication Services) | 284,462 | 4,568,667 |
| | 39,406,890 |
France 4.1% |
AXA SA (Insurance) | 164,348 | 5,658,816 |
Cie Generale des Etablissements Michelin SCA (Automobile Components) | 122,592 | 4,710,436 |
Orange SA (Diversified Telecommunication Services) | 387,255 | 4,306,305 |
TotalEnergies SE (Oil, Gas & Consumable Fuels) | 165,480 | 12,019,257 |
Vinci SA (Construction & Engineering) | 34,101 | 3,991,166 |
| | 30,685,980 |
Germany 4.7% |
Allianz SE (Registered) (Insurance) | 16,899 | 4,799,398 |
Deutsche Post AG (Air Freight & Logistics) | 159,176 | 6,666,825 |
Deutsche Telekom AG (Registered) (Diversified Telecommunication Services) | 456,749 | 10,453,624 |
Muenchener Rueckversicherungs-Gesellschaft AG (Registered) (Insurance) | 13,220 | 5,809,759 |
Siemens AG (Registered) (Industrial Conglomerates) | 40,585 | 7,613,158 |
| | 35,342,764 |
Italy 0.7% |
Snam SpA (Gas Utilities) | 1,104,910 | 5,072,913 |
Japan 1.3% |
Astellas Pharma, Inc. (Pharmaceuticals) | 434,300 | 4,170,229 |
| Shares | Value |
|
Japan (continued) |
Toyota Motor Corp. (Automobiles) | 243,900 | $ 5,586,360 |
| | 9,756,589 |
Norway 0.5% |
Orkla ASA (Food Products) | 514,266 | 3,494,686 |
Republic of Korea 2.1% |
Hyundai Glovis Co. Ltd. (Air Freight & Logistics) | 31,894 | 4,164,480 |
Samsung Electronics Co. Ltd., GDR (Technology Hardware, Storage & Peripherals) | 5,301 | 7,357,946 |
SK Telecom Co. Ltd. (Wireless Telecommunication Services) | 114,506 | 4,242,055 |
| | 15,764,481 |
Switzerland 1.3% |
Novartis AG (Registered) (Pharmaceuticals) | 100,386 | 9,696,378 |
Taiwan 1.6% |
Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR (Semiconductors & Semiconductor Equipment) | 88,568 | 12,163,929 |
United Kingdom 6.8% |
AstraZeneca plc, Sponsored ADR (Pharmaceuticals) | 156,120 | 11,846,386 |
BAE Systems plc (Aerospace & Defense) | 458,184 | 7,620,425 |
British American Tobacco plc (Tobacco) | 134,441 | 3,940,300 |
Coca-Cola Europacific Partners plc (Beverages) | 196,024 | 14,117,648 |
Imperial Brands plc (Tobacco) | 185,096 | 4,220,594 |
Schroders plc (Capital Markets) | 822,666 | 3,591,055 |
Unilever plc (Personal Care Products) | 101,685 | 5,256,554 |
| | 50,592,962 |
United States 69.3% |
AbbVie, Inc. (Biotechnology) | 59,157 | 9,621,294 |
Air Products and Chemicals, Inc. (Chemicals) | 17,690 | 4,180,855 |
American Electric Power Co., Inc. (Electric Utilities) | 61,029 | 5,250,325 |
Analog Devices, Inc. (Semiconductors & Semiconductor Equipment) | 68,839 | 13,809,792 |
Apple, Inc. (Technology Hardware, Storage & Peripherals) | 59,929 | 10,207,707 |
AT&T, Inc. (Diversified Telecommunication Services) | 232,897 | 3,933,630 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
United States (continued) |
Bank of America Corp. (Banks) | 228,317 | $ 8,450,012 |
Best Buy Co., Inc. (Specialty Retail) | 51,740 | 3,810,134 |
BlackRock, Inc. (Capital Markets) | 5,076 | 3,830,553 |
Bristol-Myers Squibb Co. (Pharmaceuticals) | 82,058 | 3,605,629 |
Broadcom, Inc. (Semiconductors & Semiconductor Equipment) | 12,898 | 16,770,882 |
Chevron Corp. (Oil, Gas & Consumable Fuels) | 26,883 | 4,335,421 |
Cisco Systems, Inc. (Communications Equipment) | 238,790 | 11,218,354 |
Coca-Cola Co. (The) (Beverages) | 87,648 | 5,414,017 |
Columbia Banking System, Inc. (Banks) | 209,108 | 3,933,321 |
Comcast Corp., Class A (Media) | 127,384 | 4,854,604 |
Cummins, Inc. (Machinery) | 31,206 | 8,815,383 |
CVS Health Corp. (Health Care Providers & Services) | 53,741 | 3,638,803 |
Dell Technologies, Inc., Class C (Technology Hardware, Storage & Peripherals) | 76,275 | 9,506,916 |
Dow, Inc. (Chemicals) | 86,838 | 4,941,082 |
Duke Energy Corp. (Electric Utilities) | 40,502 | 3,979,727 |
Eaton Corp. plc (Electrical Equipment) | 25,037 | 7,968,276 |
Eli Lilly & Co. (Pharmaceuticals) | 13,104 | 10,235,534 |
Emerson Electric Co. (Electrical Equipment) | 59,498 | 6,412,694 |
Entergy Corp. (Electric Utilities) | 40,733 | 4,344,989 |
Enterprise Products Partners LP (Oil, Gas & Consumable Fuels) | 151,444 | 4,252,548 |
Essential Utilities, Inc. (Water Utilities) | 113,284 | 4,143,929 |
Garmin Ltd. (Household Durables) | 36,771 | 5,312,306 |
General Dynamics Corp. (Aerospace & Defense) | 17,356 | 4,982,734 |
GSK plc (Pharmaceuticals) | 201,910 | 4,185,340 |
Hasbro, Inc. (Leisure Products) | 80,463 | 4,932,382 |
Hewlett Packard Enterprise Co. (Technology Hardware, Storage & Peripherals) | 408,276 | 6,940,692 |
Home Depot, Inc. (The) (Specialty Retail) | 16,204 | 5,415,701 |
Honeywell International, Inc. (Industrial Conglomerates) | 20,547 | 3,960,023 |
International Business Machines Corp. (IT Services) | 87,938 | 14,615,296 |
Iron Mountain, Inc. (Specialized REITs) | 147,918 | 11,466,603 |
Johnson & Johnson (Pharmaceuticals) | 32,891 | 4,755,710 |
JPMorgan Chase & Co. (Banks) | 58,166 | 11,152,749 |
KLA Corp. (Semiconductors & Semiconductor Equipment) | 16,957 | 11,688,291 |
| Shares | Value |
|
United States (continued) |
Lazard, Inc. (Capital Markets) | 132,782 | $ 5,112,107 |
Linde plc (Chemicals) | 15,388 | 6,785,492 |
Lockheed Martin Corp. (Aerospace & Defense) | 11,927 | 5,545,220 |
LyondellBasell Industries NV, Class A (Chemicals) | 53,065 | 5,304,908 |
McDonald's Corp. (Hotels, Restaurants & Leisure) | 19,775 | 5,399,366 |
Medtronic plc (Health Care Equipment & Supplies) | 88,903 | 7,133,577 |
Merck & Co., Inc. (Pharmaceuticals) | 64,316 | 8,310,914 |
Meta Platforms, Inc., Class A (Interactive Media & Services) | 10,674 | 4,591,635 |
MetLife, Inc. (Insurance) | 120,836 | 8,589,023 |
Microsoft Corp. (Software) | 42,702 | 16,625,170 |
Mondelez International, Inc., Class A (Food Products) | 73,477 | 5,285,935 |
MPLX LP (Oil, Gas & Consumable Fuels) | 96,378 | 4,028,600 |
MSC Industrial Direct Co., Inc., Class A (Trading Companies & Distributors) | 89,909 | 8,203,297 |
Nestle SA (Registered) (Food Products) | 42,309 | 4,243,986 |
NetApp, Inc. (Technology Hardware, Storage & Peripherals) | 75,657 | 7,732,902 |
NextEra Energy, Inc. (Electric Utilities) | 100,939 | 6,759,885 |
NiSource, Inc. (Multi-Utilities) | 161,807 | 4,507,943 |
Omnicom Group, Inc. (Media) | 57,169 | 5,307,570 |
Paychex, Inc. (Professional Services) | 36,243 | 4,306,031 |
PepsiCo, Inc. (Beverages) | 31,682 | 5,573,181 |
Pfizer, Inc. (Pharmaceuticals) | 148,169 | 3,796,090 |
Philip Morris International, Inc. (Tobacco) | 89,340 | 8,481,940 |
Pinnacle West Capital Corp. (Electric Utilities) | 55,915 | 4,118,140 |
PNC Financial Services Group, Inc. (The) (Banks) | 29,501 | 4,521,323 |
Realty Income Corp. (Retail REITs) | 91,457 | 4,896,608 |
Regions Financial Corp. (Banks) | 213,419 | 4,112,584 |
Roche Holding AG (Pharmaceuticals) | 15,143 | 3,622,801 |
RTX Corp. (Aerospace & Defense) | 68,440 | 6,948,029 |
Sanofi SA (Pharmaceuticals) | 96,436 | 9,508,244 |
Texas Instruments, Inc. (Semiconductors & Semiconductor Equipment) | 46,169 | 8,145,135 |
Travelers Cos., Inc. (The) (Insurance) | 19,878 | 4,217,316 |
Truist Financial Corp. (Banks) | 117,137 | 4,398,494 |
U.S. Bancorp (Banks) | 110,408 | 4,485,877 |
United Parcel Service, Inc., Class B (Air Freight & Logistics) | 29,741 | 4,386,203 |
UnitedHealth Group, Inc. (Health Care Providers & Services) | 17,433 | 8,432,342 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay Epoch Global Equity Yield Fund |
| Shares | | Value |
Common Stocks (continued) |
United States (continued) |
Vail Resorts, Inc. (Hotels, Restaurants & Leisure) | 18,246 | | $ 3,455,245 |
Verizon Communications, Inc. (Diversified Telecommunication Services) | 98,205 | | 3,878,115 |
VICI Properties, Inc. (Specialized REITs) | 156,352 | | 4,463,850 |
Walmart, Inc. (Consumer Staples Distribution & Retail) | 169,790 | | 10,077,036 |
WEC Energy Group, Inc. (Multi-Utilities) | 52,769 | | 4,360,830 |
Williams Cos., Inc. (The) (Oil, Gas & Consumable Fuels) | 128,841 | | 4,942,341 |
| | | 515,469,523 |
Total Common Stocks (Cost $527,556,287) | | | 731,631,561 |
Short-Term Investment 1.0% |
Affiliated Investment Company 1.0% |
United States 1.0% |
MainStay U.S. Government Liquidity Fund, 5.242% (c) | 6,959,485 | | 6,959,485 |
Total Short-Term Investment (Cost $6,959,485) | | | 6,959,485 |
Total Investments (Cost $534,515,772) | 99.3% | | 738,591,046 |
Other Assets, Less Liabilities | 0.7 | | 5,451,167 |
Net Assets | 100.0% | | $ 744,042,213 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
(a) | May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
(b) | All or a portion of this security was held on loan. As of April 30, 2024, the aggregate market value of securities on loan was $9,328. The market value of the collateral held included non-cash collateral in the form of U.S. Treasury securities with a value of $27,735. (See Note 2(I)) |
(c) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 3,960 | $ 80,574 | $ (77,575) | $ — | $ — | $ 6,959 | $ 201 | $ — | 6,959 |
Abbreviation(s): |
ADR—American Depositary Receipt |
GDR—Global Depositary Receipt |
REIT—Real Estate Investment Trust |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | | | | | | | |
Austria | $ — | | $ 4,184,466 | | $ — | | $ 4,184,466 |
France | — | | 30,685,980 | | — | | 30,685,980 |
Germany | — | | 35,342,764 | | — | | 35,342,764 |
Italy | — | | 5,072,913 | | — | | 5,072,913 |
Japan | — | | 9,756,589 | | — | | 9,756,589 |
Norway | — | | 3,494,686 | | — | | 3,494,686 |
Republic of Korea | — | | 15,764,481 | | — | | 15,764,481 |
Switzerland | — | | 9,696,378 | | — | | 9,696,378 |
United Kingdom | 25,964,034 | | 24,628,928 | | — | | 50,592,962 |
United States | 493,909,152 | | 21,560,371 | | — | | 515,469,523 |
All Other Countries | 51,570,819 | | — | | — | | 51,570,819 |
Total Common Stocks | 571,444,005 | | 160,187,556 | | — | | 731,631,561 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 6,959,485 | | — | | — | | 6,959,485 |
Total Investments in Securities | $ 578,403,490 | | $ 160,187,556 | | $ — | | $ 738,591,046 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay Epoch Global Equity Yield Fund |
The table below sets forth the diversification of the Fund’s investments by industry.
Industry Diversification
| Value | | Percent †^ |
Aerospace & Defense | $ 25,096,408 | | 3.4% |
Air Freight & Logistics | 15,217,508 | | 2.0 |
Automobile Components | 4,710,436 | | 0.6 |
Automobiles | 5,586,360 | | 0.8 |
Banks | 49,100,673 | | 6.6 |
Beverages | 25,104,846 | | 3.4 |
Biotechnology | 9,621,294 | | 1.3 |
Capital Markets | 12,533,715 | | 1.7 |
Chemicals | 25,429,504 | | 3.4 |
Communications Equipment | 11,218,354 | | 1.5 |
Construction & Engineering | 3,991,166 | | 0.5 |
Consumer Staples Distribution & Retail | 10,077,036 | | 1.4 |
Diversified Telecommunication Services | 30,714,551 | | 4.1 |
Electric Utilities | 24,453,066 | | 3.3 |
Electrical Equipment | 14,380,970 | | 1.9 |
Food Products | 13,024,607 | | 1.7 |
Gas Utilities | 5,072,913 | | 0.7 |
Health Care Equipment & Supplies | 7,133,577 | | 1.0 |
Health Care Providers & Services | 12,071,145 | | 1.6 |
Hotels, Restaurants & Leisure | 20,439,182 | | 2.7 |
Household Durables | 5,312,306 | | 0.7 |
Industrial Conglomerates | 11,573,181 | | 1.6 |
Insurance | 37,156,450 | | 5.0 |
Interactive Media & Services | 4,591,635 | | 0.6 |
IT Services | 14,615,296 | | 2.0 |
Leisure Products | 4,932,382 | | 0.7 |
Machinery | 8,815,383 | | 1.2 |
Media | 10,162,174 | | 1.4 |
Multi-Utilities | 8,868,773 | | 1.2 |
Oil, Gas & Consumable Fuels | 29,578,167 | | 4.0 |
Personal Care Products | 5,256,554 | | 0.7 |
Pharmaceuticals | 73,733,255 | | 9.9 |
Professional Services | 4,306,031 | | 0.6 |
Retail REITs | 4,896,608 | | 0.7 |
Semiconductors & Semiconductor Equipment | 62,578,029 | | 8.4 |
Software | 16,625,170 | | 2.2 |
Specialized REITs | 15,930,453 | | 2.1 |
Specialty Retail | 9,225,835 | | 1.2 |
Technology Hardware, Storage & Peripherals | 41,746,163 | | 5.6 |
Tobacco | 16,642,834 | | 2.2 |
Trading Companies & Distributors | 8,203,297 | | 1.1 |
Water Utilities | 4,143,929 | | 0.6 |
Wireless Telecommunication Services | 7,760,345 | | 1.0 |
| 731,631,561 | | 98.3 |
| Value | | Percent †^ |
Short-Term Investment | $ 6,959,485 | | 1.0% |
Other Assets, Less Liabilities | 5,451,167 | | 0.7 |
Net Assets | $744,042,213 | | 100.0% |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $527,556,287) including securities on loan of $9,328 | $731,631,561 |
Investment in affiliated investment companies, at value (identified cost $6,959,485) | 6,959,485 |
Cash | 34,543 |
Cash denominated in foreign currencies (identified cost $1,408,466) | 1,412,713 |
Receivables: | |
Dividends | 4,562,503 |
Fund shares sold | 358,362 |
Investment securities sold | 82 |
Other assets | 68,872 |
Total assets | 745,028,121 |
Liabilities |
Payables: | |
Manager (See Note 3) | 420,460 |
Fund shares redeemed | 300,493 |
Transfer agent (See Note 3) | 146,495 |
Shareholder communication | 35,689 |
NYLIFE Distributors (See Note 3) | 33,892 |
Custodian | 24,649 |
Professional fees | 10,569 |
Securities lending | 3,289 |
Trustees | 391 |
Accrued expenses | 9,981 |
Total liabilities | 985,908 |
Net assets | $744,042,213 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 34,601 |
Additional paid-in-capital | 550,603,873 |
| 550,638,474 |
Total distributable earnings (loss) | 193,403,739 |
Net assets | $744,042,213 |
Class A | |
Net assets applicable to outstanding shares | $122,562,390 |
Shares of beneficial interest outstanding | 5,687,029 |
Net asset value per share outstanding | $ 21.55 |
Maximum sales charge (5.50% of offering price) | 1.25 |
Maximum offering price per share outstanding | $ 22.80 |
Investor Class | |
Net assets applicable to outstanding shares | $ 8,282,985 |
Shares of beneficial interest outstanding | 385,249 |
Net asset value per share outstanding | $ 21.50 |
Maximum sales charge (5.00% of offering price) | 1.13 |
Maximum offering price per share outstanding | $ 22.63 |
Class C | |
Net assets applicable to outstanding shares | $ 8,073,536 |
Shares of beneficial interest outstanding | 376,214 |
Net asset value and offering price per share outstanding | $ 21.46 |
Class I | |
Net assets applicable to outstanding shares | $604,114,895 |
Shares of beneficial interest outstanding | 28,105,242 |
Net asset value and offering price per share outstanding | $ 21.49 |
Class R6 | |
Net assets applicable to outstanding shares | $ 1,008,407 |
Shares of beneficial interest outstanding | 47,559 |
Net asset value and offering price per share outstanding | $ 21.20 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay Epoch Global Equity Yield Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $139,249) | $ 13,927,732 |
Dividends-affiliated | 200,970 |
Securities lending, net | 61,360 |
Total income | 14,190,062 |
Expenses | |
Manager (See Note 3) | 2,634,136 |
Transfer agent (See Note 3) | 506,697 |
Distribution/Service—Class A (See Note 3) | 151,198 |
Distribution/Service—Investor Class (See Note 3) | 10,270 |
Distribution/Service—Class C (See Note 3) | 44,878 |
Distribution/Service—Class R2 (See Note 3)(a) | 177 |
Distribution/Service—Class R3 (See Note 3)(a) | 1,134 |
Professional fees | 59,060 |
Registration | 52,227 |
Custodian | 26,206 |
Trustees | 9,515 |
Shareholder communication | 4,628 |
Shareholder service (See Note 3) | 297 |
Miscellaneous | 29,586 |
Total expenses before waiver/reimbursement | 3,530,009 |
Expense waiver/reimbursement from Manager (See Note 3) | (157,903) |
Net expenses | 3,372,106 |
Net investment income (loss) | 10,817,956 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | 23,076,882 |
Foreign currency transactions | 11,311 |
Net realized gain (loss) | 23,088,193 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 79,930,456 |
Translation of other assets and liabilities in foreign currencies | (14,944) |
Net change in unrealized appreciation (depreciation) | 79,915,512 |
Net realized and unrealized gain (loss) | 103,003,705 |
Net increase (decrease) in net assets resulting from operations | $113,821,661 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 10,817,956 | $ 23,093,860 |
Net realized gain (loss) | 23,088,193 | 27,037,611 |
Net change in unrealized appreciation (depreciation) | 79,915,512 | 25,643,292 |
Net increase (decrease) in net assets resulting from operations | 113,821,661 | 75,774,763 |
Distributions to shareholders: | | |
Class A | (1,586,014) | (3,322,177) |
Investor Class | (103,546) | (228,072) |
Class C | (78,306) | (244,643) |
Class I | (8,779,947) | (21,686,277) |
Class R2(a) | (512) | (5,881) |
Class R3(a) | (1,418) | (16,055) |
Class R6 | (14,890) | (168,086) |
Total distributions to shareholders | (10,564,633) | (25,671,191) |
Capital share transactions: | | |
Net proceeds from sales of shares | 28,553,597 | 110,349,315 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 8,880,310 | 22,237,098 |
Cost of shares redeemed | (100,508,083) | (540,645,216) |
Increase (decrease) in net assets derived from capital share transactions | (63,074,176) | (408,058,803) |
Net increase (decrease) in net assets | 40,182,852 | (357,955,231) |
Net Assets |
Beginning of period | 703,859,361 | 1,061,814,592 |
End of period | $ 744,042,213 | $ 703,859,361 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay Epoch Global Equity Yield Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.75 | | $ 18.28 | | $ 20.18 | | $ 15.83 | | $ 18.75 | | $ 18.38 |
Net investment income (loss) (a) | 0.28 | | 0.46 | | 0.41 | | 0.45 | | 0.46 | | 0.57 |
Net realized and unrealized gain (loss) | 2.80 | | 0.55 | | (1.87) | | 4.43 | | (2.59) | | 1.42 |
Total from investment operations | 3.08 | | 1.01 | | (1.46) | | 4.88 | | (2.13) | | 1.99 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.28) | | (0.54) | | (0.44) | | (0.53) | | (0.45) | | (0.59) |
From net realized gain on investments | — | | — | | — | | — | | (0.34) | | (1.03) |
Total distributions | (0.28) | | (0.54) | | (0.44) | | (0.53) | | (0.79) | | (1.62) |
Net asset value at end of period | $ 21.55 | | $ 18.75 | | $ 18.28 | | $ 20.18 | | $ 15.83 | | $ 18.75 |
Total investment return (b) | 16.40% | | 5.45% | | (7.36)% | | 30.98% | | (11.48)% | | 11.66% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.68%†† | | 2.36% | | 2.08% | | 2.32% | | 2.74% | | 3.17% |
Net expenses (c) | 1.09%†† | | 1.09%(d) | | 1.09% | | 1.09%(e) | | 1.09%(e) | | 1.10%(e) |
Expenses (before waiver/reimbursement) (c) | 1.13%†† | | 1.16%(d) | | 1.16% | | 1.16%(e) | | 1.14%(e) | | 1.14%(e) |
Portfolio turnover rate | 7% | | 30% | | 50% | | 27% | | 40% | | 24% |
Net assets at end of period (in 000’s) | $ 122,562 | | $ 111,149 | | $ 120,648 | | $ 134,982 | | $ 103,166 | | $ 125,791 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of 0.01%. (See Note 6) |
(e) | Net of interest expense of less than 0.01%. (See Note 6) |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.71 | | $ 18.24 | | $ 20.14 | | $ 15.80 | | $ 18.72 | | $ 18.35 |
Net investment income (loss) (a) | 0.27 | | 0.45 | | 0.39 | | 0.44 | | 0.46 | | 0.57 |
Net realized and unrealized gain (loss) | 2.79 | | 0.54 | | (1.86) | | 4.42 | | (2.59) | | 1.42 |
Total from investment operations | 3.06 | | 0.99 | | (1.47) | | 4.86 | | (2.13) | | 1.99 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.27) | | (0.52) | | (0.43) | | (0.52) | | (0.45) | | (0.59) |
From net realized gain on investments | — | | — | | — | | — | | (0.34) | | (1.03) |
Total distributions | (0.27) | | (0.52) | | (0.43) | | (0.52) | | (0.79) | | (1.62) |
Net asset value at end of period | $ 21.50 | | $ 18.71 | | $ 18.24 | | $ 20.14 | | $ 15.80 | | $ 18.72 |
Total investment return (b) | 16.33% | | 5.39% | | (7.42)% | | 30.91% | | (11.53)% | | 11.67% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.60%†† | | 2.28% | | 2.02% | | 2.29% | | 2.70% | | 3.15% |
Net expenses (c) | 1.18%†† | | 1.18%(d) | | 1.15% | | 1.15%(e) | | 1.13%(e) | | 1.11%(e) |
Expenses (before waiver/reimbursement) (c) | 1.19%†† | | 1.19%(d) | | 1.16% | | 1.16%(e) | | 1.13%(e) | | 1.11%(e) |
Portfolio turnover rate | 7% | | 30% | | 50% | | 27% | | 40% | | 24% |
Net assets at end of period (in 000's) | $ 8,283 | | $ 7,788 | | $ 7,976 | | $ 9,081 | | $ 7,897 | | $ 10,067 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of 0.01%. (See Note 6) |
(e) | Net of interest expense of less than 0.01%. (See Note 6) |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay Epoch Global Equity Yield Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.67 | | $ 18.19 | | $ 20.07 | | $ 15.73 | | $ 18.62 | | $ 18.25 |
Net investment income (loss) (a) | 0.20 | | 0.32 | | 0.26 | | 0.30 | | 0.34 | | 0.44 |
Net realized and unrealized gain (loss) | 2.78 | | 0.53 | | (1.86) | | 4.40 | | (2.57) | | 1.41 |
Total from investment operations | 2.98 | | 0.85 | | (1.60) | | 4.70 | | (2.23) | | 1.85 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.19) | | (0.37) | | (0.28) | | (0.36) | | (0.32) | | (0.45) |
From net realized gain on investments | — | | — | | — | | — | | (0.34) | | (1.03) |
Total distributions | (0.19) | | (0.37) | | (0.28) | | (0.36) | | (0.66) | | (1.48) |
Net asset value at end of period | $ 21.46 | | $ 18.67 | | $ 18.19 | | $ 20.07 | | $ 15.73 | | $ 18.62 |
Total investment return (b) | 15.96% | | 4.67% | | (8.07)% | | 30.00% | | (12.14)% | | 10.88% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.91%†† | | 1.65% | | 1.34% | | 1.59% | | 2.00% | | 2.47% |
Net expenses (c) | 1.84%†† | | 1.84%(d) | | 1.84% | | 1.84%(e) | | 1.84%(e) | | 1.85%(e) |
Expenses (before waiver/reimbursement) (c) | 1.94%†† | | 1.94%(d) | | 1.91% | | 1.91%(e) | | 1.88%(e) | | 1.87%(e) |
Portfolio turnover rate | 7% | | 30% | | 50% | | 27% | | 40% | | 24% |
Net assets at end of period (in 000’s) | $ 8,074 | | $ 9,215 | | $ 15,801 | | $ 27,874 | | $ 42,298 | | $ 97,872 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of 0.01%. (See Note 6) |
(e) | Net of interest expense of less than 0.01%. (See Note 6) |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.71 | | $ 18.23 | | $ 20.13 | | $ 15.79 | | $ 18.72 | | $ 18.34 |
Net investment income (loss) (a) | 0.31 | | 0.51 | | 0.45 | | 0.50 | | 0.50 | | 0.62 |
Net realized and unrealized gain (loss) | 2.77 | | 0.55 | | (1.86) | | 4.42 | | (2.59) | | 1.43 |
Total from investment operations | 3.08 | | 1.06 | | (1.41) | | 4.92 | | (2.09) | | 2.05 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.30) | | (0.58) | | (0.49) | | (0.58) | | (0.50) | | (0.64) |
From net realized gain on investments | — | | — | | — | | — | | (0.34) | | (1.03) |
Total distributions | (0.30) | | (0.58) | | (0.49) | | (0.58) | | (0.84) | | (1.67) |
Net asset value at end of period | $ 21.49 | | $ 18.71 | | $ 18.23 | | $ 20.13 | | $ 15.79 | | $ 18.72 |
Total investment return (b) | 16.47% | | 5.73% | | (7.08)% | | 31.32% | | (11.31)% | | 12.03% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.93%†† | | 2.59% | | 2.33% | | 2.59% | | 2.98% | | 3.44% |
Net expenses (c) | 0.84%†† | | 0.84%(d) | | 0.84% | | 0.84%(e) | | 0.84%(e) | | 0.85%(e) |
Expenses (before waiver/reimbursement) (c) | 0.88%†† | | 0.91%(d) | | 0.91% | | 0.91%(e) | | 0.89%(e) | | 0.89%(e) |
Portfolio turnover rate | 7% | | 30% | | 50% | | 27% | | 40% | | 24% |
Net assets at end of period (in 000’s) | $ 604,115 | | $ 573,786 | | $ 910,693 | | $ 1,003,575 | | $ 1,106,793 | | $ 1,657,341 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of 0.01%. (See Note 6) |
(e) | Net of interest expense of less than 0.01%. (See Note 6) |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay Epoch Global Equity Yield Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.45 | | $ 18.00 | | $ 19.88 | | $ 15.60 | | $ 18.73 | | $ 18.35 |
Net investment income (loss) (a) | 0.31 | | 0.55 | | 0.44 | | 0.54 | | 0.54 | | 0.63 |
Net realized and unrealized gain (loss) | 2.75 | | 0.51 | | (1.81) | | 4.34 | | (2.81) | | 1.43 |
Total from investment operations | 3.06 | | 1.06 | | (1.37) | | 4.88 | | (2.27) | | 2.06 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.31) | | (0.61) | | (0.51) | | (0.60) | | (0.52) | | (0.65) |
From net realized gain on investments | — | | — | | — | | — | | (0.34) | | (1.03) |
Total distributions | (0.31) | | (0.61) | | (0.51) | | (0.60) | | (0.86) | | (1.68) |
Net asset value at end of period | $ 21.20 | | $ 18.45 | | $ 18.00 | | $ 19.88 | | $ 15.60 | | $ 18.73 |
Total investment return (b) | 16.59% | | 5.82% | | (7.02)% | | 31.45% | | (12.32)% | | 12.14% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.04%†† | | 2.85% | | 2.33% | | 2.81% | | 3.18% | | 3.50% |
Net expenses (c) | 0.74%†† | | 0.74%(d) | | 0.74% | | 0.74%(e) | | 0.74%(e) | | 0.75%(e) |
Expenses (before waiver/reimbursement) (c) | 0.75%†† | | 0.75%(d) | | 0.75% | | 0.75%(e) | | 0.76%(e) | | 0.75%(e) |
Portfolio turnover rate | 7% | | 30% | | 50% | | 27% | | 40% | | 24% |
Net assets at end of period (in 000’s) | $ 1,008 | | $ 995 | | $ 5,851 | | $ 769 | | $ 325 | | $ 67,054 |
* | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of 0.01%. (See Note 6) |
(e) | Net of interest expense of less than 0.01%. (See Note 6) |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Epoch Global Equity Yield Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | August 2, 2006 |
Investor Class | November 16, 2009 |
Class C | November 16, 2009 |
Class I | December 27, 2005 |
Class R6 | June 17, 2013 |
Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 fees than Class A and Investor Class shares under distribution plans pursuant to Rule 12b-1 under the 1940 Act. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek a high level of income. Capital appreciation is a secondary investment objective.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that
22 | MainStay Epoch Global Equity Yield Fund |
quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or
liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Certain securities held by the Fund may principally trade in foreign markets. Events may occur between the time the foreign markets close and the time at which the Fund's 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 Valuation Designee conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Valuation Designee may, pursuant to the Valuation Procedures, adjust the value of the local price to reflect the estimated 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, certain 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 Valuation Procedures and are generally categorized as Level 2 in the hierarchy.
Notes to Financial Statements (Unaudited) (continued)
If the principal market of certain foreign equity securities is closed in observance of a local foreign holiday, these securities are valued using the last closing price of regular trading on the relevant exchange and fair valued by applying factors provided by a third-party vendor in accordance with the Valuation Procedures. These securities are generally categorized as Level 2 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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) Foreign Taxes. The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which it invests. A portion of the taxes on gains on investments or currency purchases/repatriation may be reclaimable. The Fund will accrue such taxes and reclaims as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
The Fund may be subject to taxation on realized capital gains, repatriation proceeds and other transaction-based taxes imposed by certain countries in which it invests. The Fund will accrue such taxes as applicable based upon its current interpretation of tax rules and regulations that exist in the market in which it invests. Capital gains taxes relating to positions still held are reflected as a liability in the Statement of Assets and Liabilities, as well as an adjustment to the Fund's net unrealized appreciation (depreciation). Taxes related to capital gains realized, if any, are reflected as part of net realized gain (loss) in the Statement of Operations. Changes in tax liabilities related to capital gains taxes on unrealized investment gains, if any, are reflected as part of the change in net unrealized appreciation (depreciation) on investments in the Statement of Operations. Transaction-based charges are generally assessed as a percentage of the transaction amount.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income, if any, at least quarterly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
24 | MainStay Epoch Global Equity Yield Fund |
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(G) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(J) Foreign Securities Risk. The Fund may invest in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult to value. 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, among other things, economic or political developments in a specific country, industry or region.
(K) 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 the Fund’s performance if the Fund were required to sell securities or invest cash at times when it otherwise would not do so.
Notes to Financial Statements (Unaudited) (continued)
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.
(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Epoch Investment Partners, Inc. (“Epoch” or the “Subadvisor”), a registered investment adviser, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and Epoch, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.70% of the Fund's average daily net assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 1.09%; Class C, 1.84%; Class I, 0.84%; and Class R6, 0.74%. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life
Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $2,634,136 and waived fees and/or reimbursed certain class specific expenses in the amount of $157,903 and paid the Subadvisor fees in the amount of $1,317,068.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 Plan, Class R3 shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, for a total 12b-1 fee of 0.50%. Class I and Class R6 shares are not subject to a distribution and/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.
In accordance with the Shareholder Services Plans for the 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 R2 and Class R3 shares.
26 | MainStay Epoch Global Equity Yield Fund |
For its services, the Manager, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R2 and Class R3 shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the six-month period ended April 30, 2024, shareholder service fees incurred by the Fund were as follows:
|
Class R2* | $ 70 |
Class R3* | 227 |
* | Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $5,092 and $204, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $169 and $228, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the
aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 81,063 | $— |
Investor Class | 7,938 | — |
Class C | 8,630 | — |
Class I | 408,720 | — |
Class R2* | 81 | — |
Class R3* | 245 | — |
Class R6 | 20 | — |
* | Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $565,991,165 | $191,382,649 | $(18,782,768) | $172,599,881 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $4,494,086, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $4,494 | $— |
Notes to Financial Statements (Unaudited) (continued)
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $25,671,191 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 26, 2022, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 25, 2023, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 26, 2022, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. As of April 30, 2024, there were no borrowings outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $55,464 and $124,689, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 197,696 | $ 4,197,467 |
Shares issued to shareholders in reinvestment of distributions | 60,388 | 1,317,948 |
Shares redeemed | (523,677) | (11,028,805) |
Net increase (decrease) in shares outstanding before conversion | (265,593) | (5,513,390) |
Shares converted into Class A (See Note 1) | 34,025 | 723,962 |
Shares converted from Class A (See Note 1) | (7,981) | (168,785) |
Net increase (decrease) | (239,549) | $ (4,958,213) |
Year ended October 31, 2023: | | |
Shares sold | 751,565 | $ 14,677,121 |
Shares issued to shareholders in reinvestment of distributions | 135,691 | 2,666,106 |
Shares redeemed | (1,536,885) | (30,173,346) |
Net increase (decrease) in shares outstanding before conversion | (649,629) | (12,830,119) |
Shares converted into Class A (See Note 1) | 24,709 | 482,972 |
Shares converted from Class A (See Note 1) | (49,895) | (971,102) |
Net increase (decrease) | (674,815) | $ (13,318,249) |
|
28 | MainStay Epoch Global Equity Yield Fund |
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 62,905 | $ 1,308,022 |
Shares issued to shareholders in reinvestment of distributions | 4,720 | 102,745 |
Shares redeemed | (67,040) | (1,383,244) |
Net increase (decrease) in shares outstanding before conversion | 585 | 27,523 |
Shares converted into Investor Class (See Note 1) | 1,686 | 35,882 |
Shares converted from Investor Class (See Note 1) | (33,216) | (705,673) |
Net increase (decrease) | (30,945) | $ (642,268) |
Year ended October 31, 2023: | | |
Shares sold | 31,310 | $ 606,554 |
Shares issued to shareholders in reinvestment of distributions | 11,539 | 226,195 |
Shares redeemed | (56,797) | (1,110,126) |
Net increase (decrease) in shares outstanding before conversion | (13,948) | (277,377) |
Shares converted into Investor Class (See Note 1) | 7,968 | 157,444 |
Shares converted from Investor Class (See Note 1) | (15,164) | (296,241) |
Net increase (decrease) | (21,144) | $ (416,174) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 7,871 | $ 168,362 |
Shares issued to shareholders in reinvestment of distributions | 3,213 | 70,677 |
Shares redeemed | (125,804) | (2,637,413) |
Net increase (decrease) in shares outstanding before conversion | (114,720) | (2,398,374) |
Shares converted from Class C (See Note 1) | (2,580) | (54,171) |
Net increase (decrease) | (117,300) | $ (2,452,545) |
Year ended October 31, 2023: | | |
Shares sold | 34,518 | $ 670,163 |
Shares issued to shareholders in reinvestment of distributions | 11,357 | 222,244 |
Shares redeemed | (405,654) | (7,904,116) |
Net increase (decrease) in shares outstanding before conversion | (359,779) | (7,011,709) |
Shares converted from Class C (See Note 1) | (15,575) | (305,574) |
Net increase (decrease) | (375,354) | $ (7,317,283) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,088,817 | $ 22,798,562 |
Shares issued to shareholders in reinvestment of distributions | 339,935 | 7,374,486 |
Shares redeemed | (4,006,287) | (84,177,431) |
Net increase (decrease) in shares outstanding before conversion | (2,577,535) | (54,004,383) |
Shares converted into Class I (See Note 1) | 8,001 | 168,785 |
Net increase (decrease) | (2,569,534) | $ (53,835,598) |
Year ended October 31, 2023: | | |
Shares sold | 4,785,433 | $ 93,311,010 |
Shares issued to shareholders in reinvestment of distributions | 967,417 | 18,937,586 |
Shares redeemed | (25,084,792) | (494,922,086) |
Net increase (decrease) in shares outstanding before conversion | (19,331,942) | (382,673,490) |
Shares converted into Class I (See Note 1) | 51,300 | 996,452 |
Shares converted from Class I (See Note 1) | (3,327) | (63,951) |
Net increase (decrease) | (19,283,969) | $(381,740,989) |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | — | $ 7 |
Shares issued to shareholders in reinvestment of distributions | 25 | 512 |
Shares redeemed | (10,976) | (236,768) |
Net increase (decrease) | (10,951) | $ (236,249) |
Year ended October 31, 2023: | | |
Shares issued to shareholders in reinvestment of distributions | 299 | $ 5,881 |
Shares redeemed | (896) | (17,100) |
Net increase (decrease) | (597) | $ (11,219) |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 2,575 | $ 51,699 |
Shares issued to shareholders in reinvestment of distributions | 67 | 1,367 |
Shares redeemed | (41,091) | (878,664) |
Net increase (decrease) | (38,449) | $ (825,598) |
Year ended October 31, 2023: | | |
Shares sold | 10,400 | $ 205,116 |
Shares issued to shareholders in reinvestment of distributions | 790 | 15,494 |
Shares redeemed | (7,480) | (146,993) |
Net increase (decrease) | 3,710 | $ 73,617 |
|
Notes to Financial Statements (Unaudited) (continued)
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,420 | $ 29,478 |
Shares issued to shareholders in reinvestment of distributions | 588 | 12,575 |
Shares redeemed | (8,350) | (165,758) |
Net increase (decrease) | (6,342) | $ (123,705) |
Year ended October 31, 2023: | | |
Shares sold | 45,710 | $ 879,351 |
Shares issued to shareholders in reinvestment of distributions | 8,444 | 163,592 |
Shares redeemed | (325,406) | (6,371,449) |
Net increase (decrease) | (271,252) | $ (5,328,506) |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
30 | MainStay Epoch Global Equity Yield Fund |
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and Epoch in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and Epoch in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or Epoch that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, Epoch personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the qualifications of the portfolio managers of the Fund and the historical 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 Epoch with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and Epoch. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and Epoch resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and Epoch
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by Epoch, evaluating the performance of Epoch, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of Epoch and ongoing analysis of, and interactions with, Epoch with respect to, among other things, the Fund’s investment performance and risks as well as Epoch’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that Epoch provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated Epoch’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and Epoch’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at Epoch. The Board considered New York Life Investments’ and Epoch’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and Epoch and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered Epoch’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and Epoch regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
32 | MainStay Epoch Global Equity Yield Fund |
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of Epoch and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and Epoch
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. With respect to the profitability of Epoch’s relationship with the Fund, the Board considered information from New York Life Investments that Epoch’s subadvisory fee reflected an arm’s-length negotiation and that this fee is paid by New York Life Investments, not the Fund, and the relevance of Epoch’s profitability was considered by the Trustees in that context. On this basis, the Board primarily considered the costs and profitability for New York Life Investments and its affiliates with respect to the Fund.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and Epoch, and profitability of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’ and Epoch’s continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also
considered the financial resources of New York Life Investments and Epoch and acknowledged that New York Life Investments and Epoch must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and Epoch to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates and Epoch and its affiliates due to their relationships with the Fund, including reputational and other indirect benefits. 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 in the Fund’s portfolio securities. In this regard, the Board also requested and considered information from New York Life Investments concerning other material business relationships between Epoch and its affiliates and New York Life Investments and its affiliates and considered the existence of a strategic partnership between New York Life Investments and that relates to certain current and future products and represents a potential conflict of interest associated with New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund were not excessive, other expected benefits that may accrue to New York Life Investments and its affiliates are reasonable and other expected benefits that may accrue to Epoch and its affiliates are consistent with those expected for a subadvisor to a mutual fund. With respect to Epoch, the Board considered 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, acknowledging that any such profits are based on the subadvisory fee paid to Epoch by New York Life Investments, not the Fund.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to Epoch is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. 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/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
34 | MainStay Epoch Global Equity Yield Fund |
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
36 | MainStay Epoch Global Equity Yield Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022132 MS081-24 | MSEGE10-06/24 |
(NYLIM) NL241
MainStay Epoch International Choice Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares | Maximum 5.50% Initial Sales Charge | With sales charges | 9/1/2006 | 8.62% | -1.77% | 3.11% | 2.13% | 1.22% |
| | Excluding sales charges | | 14.94 | 3.95 | 4.29 | 2.70 | 1.22 |
Investor Class Shares3 | Maximum 5.00% Initial Sales Charge | With sales charges | 4/29/2008 | 9.06 | -1.53 | 2.84 | 1.90 | 1.68 |
| | Excluding sales charges | | 14.80 | 3.66 | 4.01 | 2.48 | 1.68 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 9/1/2006 | 13.37 | 1.87 | 3.23 | 1.69 | 2.43 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 14.37 | 2.87 | 3.23 | 1.69 | 2.43 |
Class I Shares | No Sales Charge | | 12/31/1997 | 15.10 | 4.23 | 4.57 | 2.98 | 0.97 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 14.82 | 3.70 | N/A | 3.85 | 1.58 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
MSCI EAFE® Index (Net)2 | 18.63% | 9.28% | 6.18% | 4.38% |
Morningstar Foreign Large Blend Category Average3 | 16.61 | 8.18 | 5.40 | 4.18 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | The Fund has selected the MSCI EAFE® Index (Net), which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The MSCI EAFE® Index (Net) consists of international stocks representing the developed world outside of North America. |
3. | The Morningstar Foreign Large Blend Category Average is representative of funds that invest in a variety of big international stocks. Most of these funds divide their assets among a dozen or more developed markets, including Japan, Britain, France, and Germany. These funds primarily invest in stocks that have market caps in the top 70% of each economically integrated market (such as Europe or Asia ex-Japan). The blend style is assigned to funds where neither growth nor value characteristics predominate. These funds typically will have less than 20% of assets invested in U.S. stocks. Results are based on average total returns of similar funds with all dividends 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 Choice Fund |
Cost in Dollars of a $1,000 Investment in MainStay Epoch International 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,149.40 | $ 6.57 | $1,018.75 | $ 6.17 | 1.23% |
Investor Class Shares | $1,000.00 | $1,148.00 | $ 8.12 | $1,017.30 | $ 7.62 | 1.52% |
Class C Shares | $1,000.00 | $1,143.70 | $12.10 | $1,013.58 | $11.36 | 2.27% |
Class I Shares | $1,000.00 | $1,151.00 | $ 5.08 | $1,020.14 | $ 4.77 | 0.95% |
SIMPLE Class Shares | $1,000.00 | $1,148.20 | $ 7.74 | $1,017.65 | $ 7.27 | 1.45% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Country Composition as of April 30, 2024 (Unaudited)
United Kingdom | 20.6% |
Japan | 19.1 |
France | 18.7 |
United States | 12.1 |
Germany | 6.6 |
Netherlands | 6.4 |
Sweden | 4.7 |
Denmark | 3.1% |
Singapore | 2.6 |
Spain | 2.1 |
Republic of Korea | 1.9 |
Other Assets, Less Liabilities | 2.1 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | AstraZeneca plc, Sponsored ADR |
2. | Lloyds Banking Group plc |
3. | Keyence Corp. |
4. | Sony Group Corp. |
5. | Asahi Group Holdings Ltd. |
6. | TotalEnergies SE |
7. | BNP Paribas SA |
8. | NN Group NV |
9. | Deutsche Telekom AG (Registered) |
10. | Novo Nordisk A/S, Class B |
8 | MainStay Epoch International Choice Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 96.0% |
Denmark 3.1% |
Novo Nordisk A/S, Class B (Pharmaceuticals) | 53,035 | $ 6,815,818 |
France 18.7% |
Airbus SE (Aerospace & Defense) | 34,221 | 5,623,820 |
AXA SA (Insurance) | 176,654 | 6,082,535 |
BNP Paribas SA (Banks) | 110,566 | 7,907,061 |
Edenred SE (Financial Services) | 86,030 | 4,077,000 |
LVMH Moet Hennessy Louis Vuitton SE (Textiles, Apparel & Luxury Goods) | 6,109 | 4,917,599 |
Pernod Ricard SA (Beverages) | 28,025 | 4,231,929 |
TotalEnergies SE (Oil, Gas & Consumable Fuels) | 114,494 | 8,316,007 |
| | 41,155,951 |
Germany 6.6% |
Deutsche Post AG (Air Freight & Logistics) | 87,838 | 3,678,950 |
Deutsche Telekom AG (Registered) (Diversified Telecommunication Services) | 308,097 | 7,051,423 |
Vonovia SE (Real Estate Management & Development) | 129,853 | 3,757,974 |
| | 14,488,347 |
Japan 19.1% |
Asahi Group Holdings Ltd. (Beverages) | 245,300 | 8,382,579 |
Hoya Corp. (Health Care Equipment & Supplies) | 22,800 | 2,649,083 |
Keyence Corp. (Electronic Equipment, Instruments & Components) | 20,500 | 9,080,602 |
Nissan Chemical Corp. (Chemicals) | 147,000 | 5,013,595 |
Rohto Pharmaceutical Co. Ltd. (Personal Care Products) | 174,400 | 3,401,698 |
Sony Group Corp. (Household Durables) | 104,400 | 8,623,672 |
Suzuki Motor Corp. (Automobiles) | 420,000 | 4,886,158 |
| | 42,037,387 |
Netherlands 6.4% |
ASML Holding NV (Semiconductors & Semiconductor Equipment) | 7,052 | 6,146,684 |
NN Group NV (Insurance) | 170,802 | 7,874,556 |
| | 14,021,240 |
Republic of Korea 1.9% |
Samsung Electronics Co. Ltd., GDR (Technology Hardware, Storage & Peripherals) | 3,040 | 4,221,708 |
| Shares | Value |
|
Singapore 2.6% |
STMicroelectronics NV (Semiconductors & Semiconductor Equipment) | 145,550 | $ 5,747,197 |
Spain 2.1% |
Amadeus IT Group SA (Hotels, Restaurants & Leisure) | 72,951 | 4,628,679 |
Sweden 4.7% |
Epiroc AB, Class A (Machinery) | 349,445 | 6,441,240 |
Evolution AB (Hotels, Restaurants & Leisure) | 35,910 | 3,995,029 |
| | 10,436,269 |
United Kingdom 20.6% |
AstraZeneca plc, Sponsored ADR (Pharmaceuticals) | 175,968 | 13,352,452 |
Coca-Cola Europacific Partners plc (Beverages) | 79,404 | 5,718,676 |
Compass Group plc (Hotels, Restaurants & Leisure) | 153,557 | 4,267,178 |
Lloyds Banking Group plc (Banks) | 15,251,537 | 9,844,019 |
RELX plc (Professional Services) | 140,709 | 5,783,348 |
Unilever plc (Personal Care Products) | 122,877 | 6,352,063 |
| | 45,317,736 |
United States 10.2% |
BP plc (Oil, Gas & Consumable Fuels) | 752,083 | 4,865,059 |
CSL Ltd. (Biotechnology) | 35,960 | 6,428,017 |
Linde plc (Chemicals) | 14,573 | 6,426,110 |
Schneider Electric SE (Electrical Equipment) | 20,812 | 4,739,803 |
| | 22,458,989 |
Total Common Stocks (Cost $197,401,339) | | 211,329,321 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | | Value |
Short-Term Investment 1.9% |
Affiliated Investment Company 1.9% |
United States 1.9% |
MainStay U.S. Government Liquidity Fund, 5.242% (a) | 4,326,353 | | $ 4,326,353 |
Total Short-Term Investment (Cost $4,326,353) | | | 4,326,353 |
Total Investments (Cost $201,727,692) | 97.9% | | 215,655,674 |
Other Assets, Less Liabilities | 2.1 | | 4,525,357 |
Net Assets | 100.0% | | $ 220,181,031 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
(a) | Current yield as of April 30, 2024. |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 2,332 | $ 41,672 | $ (39,678) | $ — | $ — | $ 4,326 | $ 82 | $ — | 4,326 |
Abbreviation(s): |
ADR—American Depositary Receipt |
GDR—Global Depositary Receipt |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay Epoch International Choice Fund |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | | | | | | | |
Denmark | $ — | | $ 6,815,818 | | $ — | | $ 6,815,818 |
France | — | | 41,155,951 | | — | | 41,155,951 |
Germany | — | | 14,488,347 | | — | | 14,488,347 |
Japan | — | | 42,037,387 | | — | | 42,037,387 |
Netherlands | — | | 14,021,240 | | — | | 14,021,240 |
Republic of Korea | — | | 4,221,708 | | — | | 4,221,708 |
Singapore | — | | 5,747,197 | | — | | 5,747,197 |
Spain | — | | 4,628,679 | | — | | 4,628,679 |
Sweden | — | | 10,436,269 | | — | | 10,436,269 |
United Kingdom | 19,071,128 | | 26,246,608 | | — | | 45,317,736 |
United States | 6,426,110 | | 16,032,879 | | — | | 22,458,989 |
Total Common Stocks | 25,497,238 | | 185,832,083 | | — | | 211,329,321 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 4,326,353 | | — | | — | | 4,326,353 |
Total Investments in Securities | $ 29,823,591 | | $ 185,832,083 | | $ — | | $ 215,655,674 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
The table below sets forth the diversification of the Fund’s investments by industry.
Industry Diversification
| Value | | Percent |
Aerospace & Defense | $ 5,623,820 | | 2.6% |
Air Freight & Logistics | 3,678,950 | | 1.7 |
Automobiles | 4,886,158 | | 2.2 |
Banks | 17,751,080 | | 8.1 |
Beverages | 18,333,184 | | 8.3 |
Biotechnology | 6,428,017 | | 2.9 |
Chemicals | 11,439,705 | | 5.2 |
Diversified Telecommunication Services | 7,051,423 | | 3.2 |
Electrical Equipment | 4,739,803 | | 2.2 |
Electronic Equipment, Instruments & Components | 9,080,602 | | 4.1 |
Financial Services | 4,077,000 | | 1.9 |
Health Care Equipment & Supplies | 2,649,083 | | 1.2 |
Hotels, Restaurants & Leisure | 12,890,886 | | 5.9 |
Household Durables | 8,623,672 | | 3.9 |
Insurance | 13,957,091 | | 6.3 |
Machinery | 6,441,240 | | 2.9 |
Oil, Gas & Consumable Fuels | 13,181,066 | | 6.0 |
Personal Care Products | 9,753,761 | | 4.4 |
Pharmaceuticals | 20,168,270 | | 9.2 |
Professional Services | 5,783,348 | | 2.6 |
Real Estate Management & Development | 3,757,974 | | 1.7 |
Semiconductors & Semiconductor Equipment | 11,893,881 | | 5.4 |
Technology Hardware, Storage & Peripherals | 4,221,708 | | 1.9 |
Textiles, Apparel & Luxury Goods | 4,917,599 | | 2.2 |
| 211,329,321 | | 96.0 |
Short-Term Investment | 4,326,353 | | 1.9 |
Other Assets, Less Liabilities | 4,525,357 | | 2.1 |
Net Assets | $220,181,031 | | 100.0% |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay Epoch International Choice Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $197,401,339) | $211,329,321 |
Investment in affiliated investment companies, at value (identified cost $4,326,353) | 4,326,353 |
Cash | 16,384 |
Cash denominated in foreign currencies (identified cost $1,333,709) | 1,306,828 |
Receivables: | |
Dividends | 3,344,032 |
Fund shares sold | 3,240 |
Other assets | 109,476 |
Total assets | 220,435,634 |
Liabilities |
Payables: | |
Manager (See Note 3) | 143,913 |
Professional fees | 30,301 |
Transfer agent (See Note 3) | 24,826 |
Fund shares redeemed | 22,247 |
Custodian | 18,643 |
NYLIFE Distributors (See Note 3) | 6,845 |
Shareholder communication | 6,260 |
Accrued expenses | 1,568 |
Total liabilities | 254,603 |
Net assets | $220,181,031 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 5,530 |
Additional paid-in-capital | 260,500,314 |
| 260,505,844 |
Total distributable earnings (loss) | (40,324,813) |
Net assets | $220,181,031 |
Class A | |
Net assets applicable to outstanding shares | $ 28,469,238 |
Shares of beneficial interest outstanding | 714,552 |
Net asset value per share outstanding | $ 39.84 |
Maximum sales charge (5.50% of offering price) | 2.32 |
Maximum offering price per share outstanding | $ 42.16 |
Investor Class | |
Net assets applicable to outstanding shares | $ 3,976,458 |
Shares of beneficial interest outstanding | 99,913 |
Net asset value per share outstanding | $ 39.80 |
Maximum sales charge (5.00% of offering price) | 2.09 |
Maximum offering price per share outstanding | $ 41.89 |
Class C | |
Net assets applicable to outstanding shares | $ 153,429 |
Shares of beneficial interest outstanding | 3,896 |
Net asset value and offering price per share outstanding | $ 39.38 |
Class I | |
Net assets applicable to outstanding shares | $187,537,777 |
Shares of beneficial interest outstanding | 4,710,753 |
Net asset value and offering price per share outstanding | $ 39.81 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 44,129 |
Shares of beneficial interest outstanding | 1,109 |
Net asset value and offering price per share outstanding(a) | $ 39.78 |
(a) | The difference between the calculated and stated NAV was caused by rounding. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $217,538) | $ 2,700,279 |
Dividends-affiliated | 82,106 |
Securities lending, net | 13,677 |
Total income | 2,796,062 |
Expenses | |
Manager (See Note 3) | 866,823 |
Transfer agent (See Note 3) | 69,075 |
Distribution/Service—Class A (See Note 3) | 35,606 |
Distribution/Service—Investor Class (See Note 3) | 5,179 |
Distribution/Service—Class C (See Note 3) | 899 |
Distribution/Service—Class R2 (See Note 3)(a) | 4,427 |
Distribution/Service—Class R3 (See Note 3)(a) | 4,084 |
Distribution/Service—SIMPLE Class (See Note 3) | 106 |
Registration | 49,218 |
Professional fees | 42,886 |
Custodian | 20,368 |
Shareholder communication | 4,243 |
Trustees | 2,635 |
Shareholder service (See Note 3) | 2,612 |
Miscellaneous | 10,892 |
Total expenses before waiver/reimbursement | 1,119,053 |
Expense waiver/reimbursement from Manager (See Note 3) | (26,077) |
Net expenses | 1,092,976 |
Net investment income (loss) | 1,703,086 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | 11,264,840 |
Foreign currency transactions | 4,395 |
Net realized gain (loss) | 11,269,235 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 16,678,294 |
Translation of other assets and liabilities in foreign currencies | (92,194) |
Net change in unrealized appreciation (depreciation) | 16,586,100 |
Net realized and unrealized gain (loss) | 27,855,335 |
Net increase (decrease) in net assets resulting from operations | $29,558,421 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay Epoch International Choice Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 1,703,086 | $ 3,518,079 |
Net realized gain (loss) | 11,269,235 | 11,232,602 |
Net change in unrealized appreciation (depreciation) | 16,586,100 | 14,764,124 |
Net increase (decrease) in net assets resulting from operations | 29,558,421 | 29,514,805 |
Distributions to shareholders: | | |
Class A | (411,771) | (204,408) |
Investor Class | (49,979) | (28,190) |
Class C | (47) | — |
Class I | (2,984,898) | (2,313,006) |
Class R1(a) | (2,387) | (374) |
Class R2(a) | (76,146) | (52,601) |
Class R3(a) | (27,571) | (14,715) |
SIMPLE Class | (500) | (155) |
Total distributions to shareholders | (3,553,299) | (2,613,449) |
Capital share transactions: | | |
Net proceeds from sales of shares | 17,476,548 | 14,480,791 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 3,527,904 | 2,592,955 |
Cost of shares redeemed | (22,797,124) | (52,917,475) |
Increase (decrease) in net assets derived from capital share transactions | (1,792,672) | (35,843,729) |
Net increase (decrease) in net assets | 24,212,450 | (8,942,373) |
Net Assets |
Beginning of period | 195,968,581 | 204,910,954 |
End of period | $220,181,031 | $195,968,581 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 35.17 | | $ 31.28 | | $ 41.50 | | $ 33.68 | | $ 35.57 | | $ 33.37 |
Net investment income (loss) (a) | 0.26 | | 0.54 | | 0.35 | | 0.34 | | 0.17 | | 0.74 |
Net realized and unrealized gain (loss) | 4.97 | | 3.68 | | (9.61) | | 7.66 | | (1.14) | | 1.96 |
Total from investment operations | 5.23 | | 4.22 | | (9.26) | | 8.00 | | (0.97) | | 2.70 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.56) | | (0.33) | | (0.96) | | (0.18) | | (0.92) | | (0.50) |
Net asset value at end of period | $ 39.84 | | $ 35.17 | | $ 31.28 | | $ 41.50 | | $ 33.68 | | $ 35.57 |
Total investment return (b) | 14.94% | | 13.52% | | (22.84)%(c) | | 23.80% | | (2.87)% | | 8.30% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.33%†† | | 1.44% | | 0.97% | | 0.83% | | 0.48% | | 2.19% |
Net expenses (d) | 1.23%†† | | 1.22% | | 1.23% | | 1.21% | | 1.20%(e) | | 1.19%(e) |
Portfolio turnover rate | 32% | | 34% | | 49% | | 43% | | 52% | | 47% |
Net assets at end of period (in 000’s) | $ 28,469 | | $ 26,164 | | $ 19,445 | | $ 26,613 | | $ 20,108 | | $ 23,114 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In 2022, the Fund’s total investment return includes impact of payments from affiliates due to a trade communications error. Excluding these items, total return would have been (22.89)%. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(e) | Net of interest expense of less than 0.01%. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 35.08 | | $ 31.20 | | $ 41.39 | | $ 33.60 | | $ 35.49 | | $ 33.30 |
Net investment income (loss) (a) | 0.19 | | 0.42 | | 0.24 | | 0.20 | | 0.08 | | 0.66 |
Net realized and unrealized gain (loss) | 4.98 | | 3.69 | | (9.60) | | 7.68 | | (1.13) | | 1.95 |
Total from investment operations | 5.17 | | 4.11 | | (9.36) | | 7.88 | | (1.05) | | 2.61 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.45) | | (0.23) | | (0.83) | | (0.09) | | (0.84) | | (0.42) |
Net asset value at end of period | $ 39.80 | | $ 35.08 | | $ 31.20 | | $ 41.39 | | $ 33.60 | | $ 35.49 |
Total investment return (b) | 14.80% | | 13.19% | | (23.07)%(c) | | 23.48% | | (3.10)% | | 8.02% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.00%†† | | 1.13% | | 0.67% | | 0.50% | | 0.23% | | 1.97% |
Net expenses (d) | 1.52%†† | | 1.51% | | 1.52% | | 1.50% | | 1.46%(e) | | 1.41%(e) |
Expenses (before waiver/reimbursement) (d) | 1.68%†† | | 1.68% | | 1.63% | | 1.59% | | 1.46%(e) | | 1.42%(e) |
Portfolio turnover rate | 32% | | 34% | | 49% | | 43% | | 52% | | 47% |
Net assets at end of period (in 000's) | $ 3,976 | | $ 3,892 | | $ 3,795 | | $ 5,341 | | $ 5,308 | | $ 6,306 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In 2022, the Fund’s total investment return includes impact of payments from affiliates due to a trade communications error. Excluding these items, total return would have been (23.12)%. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(e) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay Epoch International Choice Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 34.44 | | $ 30.66 | | $ 40.33 | | $ 32.90 | | $ 34.73 | | $ 32.54 |
Net investment income (loss) (a) | 0.03 | | 0.14 | | (0.01) | | (0.28) | | (0.17) | | 0.42 |
Net realized and unrealized gain (loss) | 4.92 | | 3.64 | | (9.49) | | 7.71 | | (1.13) | | 1.92 |
Total from investment operations | 4.95 | | 3.78 | | (9.50) | | 7.43 | | (1.30) | | 2.34 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.01) | | — | | (0.17) | | — | | (0.53) | | (0.15) |
Net asset value at end of period | $ 39.38 | | $ 34.44 | | $ 30.66 | | $ 40.33 | | $ 32.90 | | $ 34.73 |
Total investment return (b) | 14.37% | | 12.33% | | (23.66)%(c) | | 22.55% | | (3.81)% | | 7.25% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.15%†† | | 0.38% | | (0.02)% | | (0.71)% | | (0.51)% | | 1.27% |
Net expenses (d) | 2.27%†† | | 2.26% | | 2.27% | | 2.25% | | 2.21%(e) | | 2.16%(e) |
Expenses (before waiver/reimbursement) (d) | 2.43%†† | | 2.43% | | 2.38% | | 2.28% | | 2.21%(e) | | 2.17%(e) |
Portfolio turnover rate | 32% | | 34% | | 49% | | 43% | | 52% | | 47% |
Net assets at end of period (in 000’s) | $ 153 | | $ 207 | | $ 339 | | $ 1,081 | | $ 4,740 | | $ 6,416 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In 2022, the Fund’s total investment return includes impact of payments from affiliates due to a trade communications error. Excluding these items, total return would have been (23.71)%. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(e) | Net of interest expense of less than 0.01%. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 35.19 | | $ 31.30 | | $ 41.52 | | $ 33.69 | | $ 35.58 | | $ 33.40 |
Net investment income (loss) (a) | 0.33 | | 0.62 | | 0.45 | | 0.40 | | 0.26 | | 0.80 |
Net realized and unrealized gain (loss) | 4.96 | | 3.71 | | (9.61) | | 7.70 | | (1.14) | | 1.98 |
Total from investment operations | 5.29 | | 4.33 | | (9.16) | | 8.10 | | (0.88) | | 2.78 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.67) | | (0.44) | | (1.06) | | (0.27) | | (1.01) | | (0.60) |
Net asset value at end of period | $ 39.81 | | $ 35.19 | | $ 31.30 | | $ 41.52 | | $ 33.69 | | $ 35.58 |
Total investment return (b) | 15.10% | | 13.84% | | (22.63)%(c) | | 24.11% | | (2.61)% | | 8.57% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.67%†† | | 1.67% | | 1.27% | | 0.99% | | 0.76% | | 2.40% |
Net expenses (d) | 0.95%†† | | 0.95% | | 0.95% | | 0.95% | | 0.95%(e) | | 0.94%(e) |
Expenses (before waiver/reimbursement) (d) | 0.97%†† | | 0.97% | | 0.98% | | 0.96% | | 0.96%(e) | | 0.94%(e) |
Portfolio turnover rate | 32% | | 34% | | 49% | | 43% | | 52% | | 47% |
Net assets at end of period (in 000’s) | $ 187,538 | | $ 157,911 | | $ 173,142 | | $ 241,084 | | $ 252,974 | | $ 355,348 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In 2022, the Fund’s total investment return includes impact of payments from affiliates due to a trade communications error. Excluding these items, total return would have been (22.68)%. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(e) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 35.07 | | $ 31.16 | | $ 41.39 | | $ 33.59 | | $ 35.90** |
Net investment income (loss) (a) | 0.22 | | 0.38 | | 0.14 | | 0.11 | | (0.02) |
Net realized and unrealized gain (loss) | 4.96 | | 3.70 | | (9.60) | | 7.69 | | (2.29) |
Total from investment operations | 5.18 | | 4.08 | | (9.46) | | 7.80 | | (2.31) |
Less distributions: | | | | | | | | | |
From net investment income | (0.47) | | (0.17) | | (0.77) | | — | | — |
Net asset value at end of period | $ 39.78 | | $ 35.07 | | $ 31.16 | | $ 41.39 | | $ 33.59 |
Total investment return (b) | 14.82% | | 13.10% | | (23.26)%(c) | | 23.19% | | (6.43)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 1.14%†† | | 1.03% | | 0.40% | | 0.27% | | (0.29)%†† |
Net expenses (d) | 1.45%†† | | 1.58% | | 1.77% | | 1.74% | | 1.69%††(e) |
Expenses (before waiver/reimbursement) (d) | 1.45%†† | | 1.58% | | 1.88% | | 1.86% | | 1.69%††(e) |
Portfolio turnover rate | 32% | | 34% | | 49% | | 43% | | 52% |
Net assets at end of period (in 000’s) | $ 44 | | $ 37 | | $ 28 | | $ 34 | | $ 23 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In 2022, the Fund’s total investment return includes impact of payments from affiliates due to a trade communications error. Excluding these items, total return would have been (23.31)%. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(e) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay Epoch International Choice Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Epoch International Choice Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | September 1, 2006 |
Investor Class | April 29, 2008 |
Class C | September 1, 2006 |
Class I | December 31, 1997 |
SIMPLE Class | August 31, 2020 |
Effective at the close of business on February 23, 2024, Class R1, R2 and R3 shares were liquidated.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and SIMPLE Class shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. SIMPLE Class shares convert to Class A shares, or Investor Class shares if you are not eligible to hold Class A shares, at the end of the calendar quarter, ten years after the date they were purchased. Share class conversions are based on the relevant NAVs of the two classes at the time of the conversion, and no sales load or other charge is imposed. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than
Class A, Investor Class and SIMPLE Class shares. Class I shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek total return.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation
Notes to Financial Statements (Unaudited) (continued)
materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Certain securities held by the Fund may principally trade in foreign markets. Events may occur between the time the foreign markets close and the time at which the Fund's 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 Valuation Designee conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Valuation Designee may, pursuant to the Valuation Procedures, adjust the value of the local price to reflect the estimated 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, certain foreign equity securities are also fair valued whenever the movement of a
20 | MainStay Epoch International Choice Fund |
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 Valuation Procedures and are generally categorized as Level 2 in the hierarchy.
If the principal market of certain foreign equity securities is closed in observance of a local foreign holiday, these securities are valued using the last closing price of regular trading on the relevant exchange and fair valued by applying factors provided by a third-party vendor in accordance with the Valuation Procedures. These securities are generally categorized as Level 2 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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) Foreign Taxes. The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which it invests. A portion of the taxes on gains on investments or currency purchases/repatriation may be reclaimable. The Fund will accrue such taxes and reclaims as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
The Fund may be subject to taxation on realized capital gains, repatriation proceeds and other transaction-based taxes imposed by certain countries in which it invests. The Fund will accrue such taxes as applicable based upon its current interpretation of tax rules and regulations that exist in the market in which it invests. Capital gains taxes relating to positions still held are reflected as a liability in the Statement of Assets and Liabilities, as well as an adjustment to the Fund's net unrealized appreciation (depreciation). Taxes related to capital gains realized, if any, are reflected as part of net realized gain (loss) in the Statement of Operations. Changes in tax liabilities related to capital gains taxes on unrealized investment gains, if any, are reflected as part of the change in net unrealized appreciation (depreciation) on investments in the Statement of Operations. Transaction-based charges are generally assessed as a percentage of the transaction amount.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real
Notes to Financial Statements (Unaudited) (continued)
estate investment trusts may be classified as dividends, capital gains and/or return of capital. Discounts and premiums on securities purchased for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(G) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(J) Foreign Securities Risk. The Fund may invest in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult to value. 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, among other things, economic or political developments in a specific country, industry or region.
22 | MainStay Epoch International Choice Fund |
(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Epoch Investment Partners, Inc. (“Epoch” or the “Subadvisor”), a registered investment adviser, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and Epoch, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.80% up to $5 billion; 0.775% from $5 billion to $7.5 billion; and 0.75% in excess of $7.5 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.82% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) for Class I shares do not exceed 0.95% of its average daily net assets. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $866,823 and waived fees and/or reimbursed expenses, including the waiver/reimbursement of certain class specific expenses in the amount of $26,077 and paid the Subadvisor fees in the amount of $422,061.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 and SIMPLE Class Plan, Class R3 and SIMPLE Class shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, for a total 12b-1 fee of 0.50%. Class I and Class R1 shares are not subject to a distribution and/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.
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, its affiliates or independent third-party service providers are entitled to a
Notes to Financial Statements (Unaudited) (continued)
shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R1, Class R2 and Class R3 shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the period November 1, 2023 through February 23, 2024, shareholder service fees incurred by the Fund were as follows:
|
Class R1* | $ 24 |
Class R2* | 1,771 |
Class R3* | 817 |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $475 and $182, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class C shares during the six-month period ended April 30, 2024, of $36.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the
aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 7,804 | $ — |
Investor Class | 10,488 | (3,237) |
Class C | 455 | (140) |
Class I | 48,858 | — |
Class R1* | 13 | — |
Class R2* | 992 | — |
Class R3* | 458 | — |
SIMPLE Class | 7 | — |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $201,761,709 | $20,565,011 | $(6,671,046) | $13,893,965 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $67,223,910, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected
24 | MainStay Epoch International Choice Fund |
to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $67,224 | $— |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $2,613,449 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $67,545 and $74,433, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 6,210 | $ 244,105 |
Shares issued to shareholders in reinvestment of distributions | 10,587 | 406,964 |
Shares redeemed | (53,524) | (2,096,188) |
Net increase (decrease) in shares outstanding before conversion | (36,727) | (1,445,119) |
Shares converted into Class A (See Note 1) | 7,260 | 288,870 |
Net increase (decrease) | (29,467) | $ (1,156,249) |
Year ended October 31, 2023: | | |
Shares sold | 216,462 | $ 7,624,665 |
Shares issued to shareholders in reinvestment of distributions | 5,801 | 201,594 |
Shares redeemed | (104,849) | (3,898,138) |
Net increase (decrease) in shares outstanding before conversion | 117,414 | 3,928,121 |
Shares converted into Class A (See Note 1) | 4,881 | 185,534 |
Net increase (decrease) | 122,295 | $ 4,113,655 |
|
Notes to Financial Statements (Unaudited) (continued)
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 837 | $ 32,823 |
Shares issued to shareholders in reinvestment of distributions | 1,298 | 49,921 |
Shares redeemed | (6,231) | (246,207) |
Net increase (decrease) in shares outstanding before conversion | (4,096) | (163,463) |
Shares converted into Investor Class (See Note 1) | 115 | 4,537 |
Shares converted from Investor Class (See Note 1) | (7,057) | (280,803) |
Net increase (decrease) | (11,038) | $ (439,729) |
Year ended October 31, 2023: | | |
Shares sold | 3,972 | $ 149,834 |
Shares issued to shareholders in reinvestment of distributions | 810 | 28,159 |
Shares redeemed | (11,345) | (420,451) |
Net increase (decrease) in shares outstanding before conversion | (6,563) | (242,458) |
Shares converted into Investor Class (See Note 1) | 450 | 16,840 |
Shares converted from Investor Class (See Note 1) | (4,577) | (174,139) |
Net increase (decrease) | (10,690) | $ (399,757) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 12 | $ 445 |
Shares issued to shareholders in reinvestment of distributions | 1 | 46 |
Shares redeemed | (1,800) | (69,720) |
Net increase (decrease) in shares outstanding before conversion | (1,787) | (69,229) |
Shares converted from Class C (See Note 1) | (322) | (12,604) |
Net increase (decrease) | (2,109) | $ (81,833) |
Year ended October 31, 2023: | | |
Shares sold | 3,748 | $ 136,472 |
Shares redeemed | (8,028) | (296,006) |
Net increase (decrease) in shares outstanding before conversion | (4,280) | (159,534) |
Shares converted from Class C (See Note 1) | (770) | (28,235) |
Net increase (decrease) | (5,050) | $ (187,769) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 430,032 | $ 16,864,696 |
Shares issued to shareholders in reinvestment of distributions | 77,328 | 2,967,058 |
Shares redeemed | (284,437) | (11,147,726) |
Net increase (decrease) | 222,923 | $ 8,684,028 |
Year ended October 31, 2023: | | |
Shares sold | 131,195 | $ 5,036,280 |
Shares issued to shareholders in reinvestment of distributions | 66,235 | 2,297,693 |
Shares redeemed | (1,241,537) | (45,229,500) |
Net increase (decrease) | (1,044,107) | $(37,895,527) |
|
Class R1 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 17 | $ 649 |
Shares issued to shareholders in reinvestment of distributions | 62 | 2,387 |
Shares redeemed | (3,795) | (151,067) |
Net increase (decrease) | (3,716) | $ (148,031) |
Year ended October 31, 2023: | | |
Shares sold | 2,833 | $ 102,178 |
Shares issued to shareholders in reinvestment of distributions | 11 | 374 |
Shares redeemed | (167) | (6,248) |
Net increase (decrease) | 2,677 | $ 96,304 |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 6,058 | $ 236,996 |
Shares issued to shareholders in reinvestment of distributions | 1,924 | 74,011 |
Shares redeemed | (156,036) | (6,213,796) |
Net increase (decrease) | (148,054) | $ (5,902,789) |
Year ended October 31, 2023: | | |
Shares sold | 26,339 | $ 991,406 |
Shares issued to shareholders in reinvestment of distributions | 1,454 | 50,560 |
Shares redeemed | (60,673) | (2,239,388) |
Net increase (decrease) | (32,880) | $ (1,197,422) |
|
26 | MainStay Epoch International Choice Fund |
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 2,442 | $ 95,035 |
Shares issued to shareholders in reinvestment of distributions | 705 | 27,017 |
Shares redeemed | (72,453) | (2,872,400) |
Net increase (decrease) | (69,306) | $ (2,750,348) |
Year ended October 31, 2023: | | |
Shares sold | 11,642 | $ 434,488 |
Shares issued to shareholders in reinvestment of distributions | 417 | 14,420 |
Shares redeemed | (22,419) | (827,724) |
Net increase (decrease) | (10,360) | $ (378,816) |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 47 | $ 1,799 |
Shares issued to shareholders in reinvestment of distributions | 13 | 500 |
Shares redeemed | (1) | (20) |
Net increase (decrease) | 59 | $ 2,279 |
Year ended October 31, 2023: | | |
Shares sold | 146 | $ 5,468 |
Shares issued to shareholders in reinvestment of distributions | 5 | 155 |
Shares redeemed | (1) | (20) |
Net increase (decrease) | 150 | $ 5,603 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay Epoch International 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and Epoch in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and Epoch in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or Epoch that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, Epoch personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the qualifications of the portfolio managers of the Fund and the historical 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 Epoch with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
28 | MainStay Epoch International Choice Fund |
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and Epoch. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and Epoch resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and Epoch
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by Epoch, evaluating the performance of Epoch, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of Epoch and ongoing analysis of, and interactions with, Epoch with respect to, among other things, the Fund’s investment performance and risks as well as Epoch’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that Epoch provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated Epoch’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and Epoch’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at Epoch. The Board considered New York Life Investments’ and Epoch’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and Epoch and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered Epoch’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and Epoch regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmark, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of Epoch and the members of the Board’s Investment Committee, which generally occur on an annual basis. In considering the investment performance of the Fund, the Board noted that the Fund underperformed its peer funds for the three-, five- and ten-year periods ended July 31, 2023, and performed favorably relative to its peer funds for the one-year period ended July 31, 2023. The Board considered its discussions with representatives from New York Life Investments and Epoch regarding the Fund’s investment performance.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and Epoch
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. With respect to the profitability of Epoch’s relationship with the Fund, the Board considered information from New York Life Investments that Epoch’s subadvisory fee reflected an arm’s-length negotiation and that this fee is paid by New York Life Investments, not the Fund, and the relevance of Epoch’s profitability was considered by the Trustees in that context. On this basis, the Board primarily considered the costs and profitability for New York Life Investments and its affiliates with respect to the Fund.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and Epoch, and profitability of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’ and Epoch’s continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and Epoch and acknowledged that New York Life Investments and Epoch must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and Epoch to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates and Epoch and its affiliates due to their relationships with the Fund, including reputational and other indirect benefits. 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 in the Fund’s portfolio securities. In this regard, the Board also requested and considered information from New York Life Investments concerning other material business relationships between Epoch and its affiliates and New York Life Investments and its affiliates and considered the existence of a strategic partnership between New York Life Investments and Epoch that relates to certain current and future products and represents a potential conflict of interest associated with New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
30 | MainStay Epoch International Choice Fund |
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund were not excessive, other expected benefits that may accrue to New York Life Investments and its affiliates are reasonable and other expected benefits that may accrue to Epoch and its affiliates are consistent with those expected for a subadvisor to a mutual fund. With respect to Epoch, the Board considered 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, acknowledging that any such profits are based on the subadvisory fee paid to Epoch by New York Life Investments, not the Fund.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to Epoch is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. 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/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into
account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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,
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
including, for example, through the imposition of fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
32 | MainStay Epoch International Choice Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
34 | MainStay Epoch International Choice Fund |
Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022297 MS081-24 | MSEIC10-06/24 |
(NYLIM) NL319
MainStay Epoch U.S. Equity
Yield Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares | Maximum 5.50% Initial Sales Charge | With sales charges | 2/3/2009 | 10.42% | 7.08% | 6.88% | 7.82% | 1.06% |
| | Excluding sales charges | | 16.85 | 13.31 | 8.10 | 8.44 | 1.06 |
Investor Class Shares3 | Maximum 5.00% Initial Sales Charge | With sales charges | 11/16/2009 | 10.84 | 7.39 | 6.62 | 7.59 | 1.39 |
| | Excluding sales charges | | 16.68 | 13.04 | 7.83 | 8.20 | 1.39 |
Class B Shares4 | Maximum 5.00% CDSC | With sales charges | 5/8/2017 | 11.24 | 7.17 | 6.70 | 7.19 | 2.14 |
| if Redeemed Within the First Six Years of Purchase | Excluding sales charges | | 16.24 | 12.17 | 7.01 | 7.19 | 2.14 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 11/16/2009 | 15.24 | 11.17 | 7.02 | 7.40 | 2.14 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 16.24 | 12.17 | 7.02 | 7.40 | 2.14 |
Class I Shares | No Sales Charge | | 12/3/2008 | 17.06 | 13.75 | 8.45 | 8.75 | 0.81 |
Class R6 Shares | No Sales Charge | | 5/8/2017 | 17.06 | 13.75 | 8.46 | 8.62 | 0.73 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 16.69 | 12.99 | N/A | 10.71 | 1.38 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
4. | Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Russell 3000® Index2 | 21.09% | 22.30% | 12.43% | 11.81% |
Russell 1000® Value Index3 | 18.42 | 13.42 | 8.60 | 8.43 |
U.S. Equity Yield Composite Index4 | 14.56 | 10.31 | 6.96 | 8.87 |
Morningstar Large Value Category Average5 | 17.99 | 14.37 | 9.20 | 8.57 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index, which represents a broad measure of market performance, as a replacement for the Russell 1000® Value Index. 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. |
3. | The Russell 1000® Value Index, which is generally representative of the market sectors or types of investments in which the Fund invests, measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® Index companies with lower price-to-book ratios and lower expected growth values. |
4. | The U.S. Equity Yield Composite Index, which is generally representative of the market sectors or types of investments in which the Fund invests, consists of the MSCI USA High Dividend Yield Index and the MSCI USA Minimum Volatility (USD) Index weighted at 60% and 40%, respectively. The MSCI USA High Dividend Yield Index is based on the MSCI USA Index and includes large- and mid-cap stocks. The MSCI USA High Dividend Yield Index is designed to reflect the performance of equities in the MSCI USA Index (excluding real estate investment trusts) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. The MSCI USA Minimum Volatility (USD) Index aims to reflect the performance characteristics of a minimum variance strategy applied to the large- and mid-cap U.S. equity universe. The MSCI USA Minimum Volatility (USD) Index is calculated by optimizing the MSCI USA Index in U.S. dollars for the lowest absolute risk (within a given set of constraints). |
5. | The Morningstar Large Value Category Average is representative of funds that invest primarily in big U.S. companies that are less expensive or growing more slowly than other large-cap stocks. Results are based on average total returns of similar funds with all dividends 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 Yield Fund |
Cost in Dollars of a $1,000 Investment in MainStay Epoch U.S. 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,168.50 | $ 5.72 | $1,019.59 | $ 5.32 | 1.06% |
Investor Class Shares | $1,000.00 | $1,166.80 | $ 7.22 | $1,018.20 | $ 6.72 | 1.34% |
Class B Shares | $1,000.00 | $1,162.40 | $11.24 | $1,014.47 | $10.47 | 2.09% |
Class C Shares | $1,000.00 | $1,162.40 | $11.24 | $1,014.47 | $10.47 | 2.09% |
Class I Shares | $1,000.00 | $1,170.60 | $ 3.94 | $1,021.23 | $ 3.67 | 0.73% |
Class R6 Shares | $1,000.00 | $1,170.60 | $ 3.94 | $1,021.23 | $ 3.67 | 0.73% |
SIMPLE Class Shares | $1,000.00 | $1,166.90 | $ 7.11 | $1,018.30 | $ 6.62 | 1.32% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
Banks | 9.2% |
Pharmaceuticals | 7.1 |
Semiconductors & Semiconductor Equipment | 6.0 |
Oil, Gas & Consumable Fuels | 5.9 |
Insurance | 5.4 |
Electric Utilities | 4.8 |
Chemicals | 4.3 |
Electrical Equipment | 3.7 |
Technology Hardware, Storage & Peripherals | 3.6 |
Capital Markets | 3.3 |
Specialized REITs | 3.0 |
Aerospace & Defense | 2.8 |
Health Care Providers & Services | 2.8 |
Biotechnology | 2.7 |
Multi–Utilities | 2.5 |
Beverages | 2.5 |
Media | 2.3 |
Machinery | 2.0 |
Diversified Telecommunication Services | 1.8 |
Household Products | 1.7 |
Consumer Staples Distribution & Retail | 1.7 |
Hotels, Restaurants & Leisure | 1.6 |
Software | 1.6 |
Specialty Retail | 1.5% |
Health Care Equipment & Supplies | 1.4 |
IT Services | 1.3 |
Commercial Services & Supplies | 1.3 |
Tobacco | 1.2 |
Communications Equipment | 1.2 |
Professional Services | 1.1 |
Trading Companies & Distributors | 1.0 |
Industrial Conglomerates | 0.9 |
Leisure Products | 0.8 |
Air Freight & Logistics | 0.8 |
Household Durables | 0.6 |
Water Utilities | 0.6 |
Health Care REITs | 0.6 |
Food Products | 0.5 |
Retail REITs | 0.5 |
Interactive Media & Services | 0.5 |
Containers & Packaging | 0.5 |
Industrial REITs | 0.5 |
Short–Term Investment | 0.9 |
Other Assets, Less Liabilities | –0.0‡ |
| 100.0% |
‡ Less than one–tenth of a percent
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | JPMorgan Chase & Co. |
2. | Eli Lilly & Co. |
3. | Bank of America Corp. |
4. | Broadcom, Inc. |
5. | MetLife, Inc. |
6. | Merck & Co., Inc. |
7. | Cummins, Inc. |
8. | AbbVie, Inc. |
9. | Chevron Corp. |
10. | Walmart, Inc. |
8 | MainStay Epoch U.S. Equity Yield Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 99.1% |
Aerospace & Defense 2.8% |
General Dynamics Corp. | 31,569 | $ 9,063,144 |
Lockheed Martin Corp. | 18,329 | 8,521,702 |
RTX Corp. | 92,949 | 9,436,183 |
| | 27,021,029 |
Air Freight & Logistics 0.8% |
United Parcel Service, Inc., Class B | 50,226 | 7,407,330 |
Banks 9.2% |
Bank of America Corp. | 617,511 | 22,854,082 |
Columbia Banking System, Inc. | 401,709 | 7,556,146 |
JPMorgan Chase & Co. | 126,634 | 24,280,803 |
PNC Financial Services Group, Inc. (The) | 49,730 | 7,621,620 |
Regions Financial Corp. | 380,596 | 7,334,085 |
Truist Financial Corp. | 187,320 | 7,033,866 |
U.S. Bancorp | 318,854 | 12,955,038 |
| | 89,635,640 |
Beverages 2.5% |
Coca-Cola Co. (The) | 119,867 | 7,404,184 |
Coca-Cola Europacific Partners plc | 138,986 | 10,009,772 |
PepsiCo, Inc. | 36,843 | 6,481,052 |
| | 23,895,008 |
Biotechnology 2.7% |
AbbVie, Inc. | 115,829 | 18,838,429 |
Amgen, Inc. | 27,077 | 7,417,473 |
| | 26,255,902 |
Capital Markets 3.3% |
BlackRock, Inc. | 17,054 | 12,869,631 |
CME Group, Inc. | 37,726 | 7,908,879 |
Lazard, Inc. | 285,203 | 10,980,315 |
| | 31,758,825 |
Chemicals 4.3% |
Air Products and Chemicals, Inc. | 25,218 | 5,960,022 |
Dow, Inc. | 137,127 | 7,802,526 |
Linde plc | 22,854 | 10,077,700 |
LyondellBasell Industries NV, Class A | 73,737 | 7,371,488 |
Nutrien Ltd. | 120,567 | 6,362,321 |
PPG Industries, Inc. | 35,750 | 4,611,750 |
| | 42,185,807 |
Commercial Services & Supplies 1.3% |
Republic Services, Inc. | 32,141 | 6,161,430 |
Waste Management, Inc. | 30,896 | 6,426,986 |
| | 12,588,416 |
| Shares | Value |
|
Communications Equipment 1.2% |
Cisco Systems, Inc. | 239,288 | $ 11,241,750 |
Consumer Staples Distribution & Retail 1.7% |
Walmart, Inc. | 280,614 | 16,654,441 |
Containers & Packaging 0.5% |
Amcor plc | 510,994 | 4,568,286 |
Diversified Telecommunication Services 1.8% |
AT&T, Inc. | 470,199 | 7,941,661 |
Verizon Communications, Inc. | 242,997 | 9,595,952 |
| | 17,537,613 |
Electric Utilities 4.8% |
Alliant Energy Corp. | 117,713 | 5,862,107 |
American Electric Power Co., Inc. | 136,724 | 11,762,366 |
Duke Energy Corp. | 53,768 | 5,283,244 |
Entergy Corp. | 75,293 | 8,031,504 |
NextEra Energy, Inc. | 154,262 | 10,330,926 |
Pinnacle West Capital Corp. | 70,221 | 5,171,777 |
| | 46,441,924 |
Electrical Equipment 3.7% |
Eaton Corp. plc | 49,040 | 15,607,470 |
Emerson Electric Co. | 119,253 | 12,853,088 |
Hubbell, Inc. | 21,399 | 7,928,758 |
| | 36,389,316 |
Food Products 0.5% |
Mondelez International, Inc., Class A | 69,270 | 4,983,284 |
Health Care Equipment & Supplies 1.4% |
Medtronic plc | 174,862 | 14,030,927 |
Health Care Providers & Services 2.8% |
CVS Health Corp. | 150,292 | 10,176,271 |
UnitedHealth Group, Inc. | 34,387 | 16,632,992 |
| | 26,809,263 |
Health Care REITs 0.6% |
Welltower, Inc. | 58,015 | 5,527,669 |
Hotels, Restaurants & Leisure 1.6% |
McDonald's Corp. | 35,539 | 9,703,568 |
Vail Resorts, Inc. | 33,159 | 6,279,320 |
| | 15,982,888 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Household Durables 0.6% |
Garmin Ltd. | 43,724 | $ 6,316,806 |
Household Products 1.7% |
Colgate-Palmolive Co. | 63,929 | 5,876,353 |
Procter & Gamble Co. (The) | 66,284 | 10,817,549 |
| | 16,693,902 |
Industrial Conglomerates 0.9% |
Honeywell International, Inc. | 47,122 | 9,081,823 |
Industrial REITs 0.5% |
Prologis, Inc. | 44,414 | 4,532,449 |
Insurance 5.4% |
Arthur J. Gallagher & Co. | 23,014 | 5,401,156 |
Marsh & McLennan Cos., Inc. | 51,782 | 10,326,884 |
MetLife, Inc. | 301,847 | 21,455,285 |
Travelers Cos., Inc. (The) | 71,019 | 15,067,391 |
| | 52,250,716 |
Interactive Media & Services 0.5% |
Meta Platforms, Inc., Class A | 11,165 | 4,802,848 |
IT Services 1.3% |
International Business Machines Corp. | 78,119 | 12,983,378 |
Leisure Products 0.8% |
Hasbro, Inc. | 128,430 | 7,872,759 |
Machinery 2.0% |
Cummins, Inc. | 69,859 | 19,734,469 |
Media 2.3% |
Comcast Corp., Class A | 326,534 | 12,444,211 |
Omnicom Group, Inc. | 106,825 | 9,917,633 |
| | 22,361,844 |
Multi-Utilities 2.5% |
Ameren Corp. | 75,773 | 5,597,351 |
CMS Energy Corp. | 114,954 | 6,967,362 |
NiSource, Inc. | 215,676 | 6,008,733 |
WEC Energy Group, Inc. | 66,309 | 5,479,776 |
| | 24,053,222 |
| Shares | Value |
|
Oil, Gas & Consumable Fuels 5.9% |
Chevron Corp. | 105,533 | $ 17,019,307 |
Enterprise Products Partners LP | 447,603 | 12,568,692 |
MPLX LP | 272,245 | 11,379,841 |
TotalEnergies SE, Sponsored ADR | 100,452 | 7,279,757 |
Williams Cos., Inc. (The) | 242,206 | 9,291,022 |
| | 57,538,619 |
Pharmaceuticals 7.1% |
Bristol-Myers Squibb Co. | 98,434 | 4,325,190 |
Eli Lilly & Co. | 29,374 | 22,944,032 |
Johnson & Johnson | 104,465 | 15,104,594 |
Merck & Co., Inc. | 154,456 | 19,958,804 |
Pfizer, Inc. | 247,901 | 6,351,224 |
| | 68,683,844 |
Professional Services 1.1% |
Automatic Data Processing, Inc. | 22,392 | 5,416,401 |
Paychex, Inc. | 42,950 | 5,102,889 |
| | 10,519,290 |
Retail REITs 0.5% |
Realty Income Corp. | 90,123 | 4,825,185 |
Semiconductors & Semiconductor Equipment 6.0% |
Analog Devices, Inc. | 75,074 | 15,060,595 |
Broadcom, Inc. | 16,908 | 21,984,965 |
KLA Corp. | 20,625 | 14,216,606 |
Texas Instruments, Inc. | 39,754 | 7,013,401 |
| | 58,275,567 |
Software 1.6% |
Microsoft Corp. | 39,678 | 15,447,836 |
Specialized REITs 3.0% |
American Tower Corp. | 28,213 | 4,840,222 |
Iron Mountain, Inc. | 210,780 | 16,339,666 |
VICI Properties, Inc. | 264,934 | 7,563,866 |
| | 28,743,754 |
Specialty Retail 1.5% |
Best Buy Co., Inc. | 67,294 | 4,955,530 |
Home Depot, Inc. (The) | 27,885 | 9,319,725 |
| | 14,275,255 |
Technology Hardware, Storage & Peripherals 3.6% |
Apple, Inc. | 34,909 | 5,946,050 |
Dell Technologies, Inc., Class C | 100,982 | 12,586,397 |
Hewlett Packard Enterprise Co. | 427,804 | 7,272,668 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay Epoch U.S. Equity Yield Fund |
| Shares | | Value |
Common Stocks (continued) |
Technology Hardware, Storage & Peripherals (continued) |
NetApp, Inc. | 93,168 | | $ 9,522,701 |
| | | 35,327,816 |
Tobacco 1.2% |
Philip Morris International, Inc. | 121,625 | | 11,547,077 |
Trading Companies & Distributors 1.0% |
MSC Industrial Direct Co., Inc., Class A | 111,161 | | 10,142,330 |
Water Utilities 0.6% |
Essential Utilities, Inc. | 151,220 | | 5,531,628 |
Total Common Stocks (Cost $659,841,152) | | | 962,457,735 |
Short-Term Investment 0.9% |
Affiliated Investment Company 0.9% |
MainStay U.S. Government Liquidity Fund, 5.242% (a) | 8,779,893 | | 8,779,893 |
Total Short-Term Investment (Cost $8,779,893) | | | 8,779,893 |
Total Investments (Cost $668,621,045) | 100.0% | | 971,237,628 |
Other Assets, Less Liabilities | (0.0)‡ | | (436,275) |
Net Assets | 100.0% | | $ 970,801,353 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
‡ | Less than one-tenth of a percent. |
(a) | Current yield as of April 30, 2024. |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ — | $ 90,073 | $ (81,293) | $ — | $ — | $ 8,780 | $ 242 | $ — | 8,780 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Abbreviation(s): |
ADR—American Depositary Receipt |
REIT—Real Estate Investment Trust |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | $ 962,457,735 | | $ — | | $ — | | $ 962,457,735 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 8,779,893 | | — | | — | | 8,779,893 |
Total Investments in Securities | $ 971,237,628 | | $ — | | $ — | | $ 971,237,628 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay Epoch U.S. Equity Yield Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $659,841,152) | $962,457,735 |
Investment in affiliated investment companies, at value (identified cost $8,779,893) | 8,779,893 |
Cash | 5,321 |
Receivables: | |
Dividends | 1,899,283 |
Fund shares sold | 166,380 |
Other assets | 103,780 |
Total assets | 973,412,392 |
Liabilities |
Payables: | |
Fund shares redeemed | 1,697,895 |
Manager (See Note 3) | 539,849 |
Transfer agent (See Note 3) | 177,311 |
NYLIFE Distributors (See Note 3) | 125,469 |
Professional fees | 42,612 |
Custodian | 16,363 |
Shareholder communication | 4,588 |
Securities lending | 4,126 |
Trustees | 274 |
Accrued expenses | 2,552 |
Total liabilities | 2,611,039 |
Net assets | $970,801,353 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 47,277 |
Additional paid-in-capital | 644,719,242 |
| 644,766,519 |
Total distributable earnings (loss) | 326,034,834 |
Net assets | $970,801,353 |
Class A | |
Net assets applicable to outstanding shares | $498,061,870 |
Shares of beneficial interest outstanding | 24,354,931 |
Net asset value per share outstanding | $ 20.45 |
Maximum sales charge (5.50% of offering price) | 1.19 |
Maximum offering price per share outstanding | $ 21.64 |
Investor Class | |
Net assets applicable to outstanding shares | $ 68,112,947 |
Shares of beneficial interest outstanding | 3,348,440 |
Net asset value per share outstanding | $ 20.34 |
Maximum sales charge (5.00% of offering price) | 1.07 |
Maximum offering price per share outstanding | $ 21.41 |
Class B | |
Net assets applicable to outstanding shares | $ 1,855,895 |
Shares of beneficial interest outstanding | 94,387 |
Net asset value and offering price per share outstanding | $ 19.66 |
Class C | |
Net assets applicable to outstanding shares | $ 7,543,827 |
Shares of beneficial interest outstanding | 383,619 |
Net asset value and offering price per share outstanding | $ 19.66 |
Class I | |
Net assets applicable to outstanding shares | $267,246,516 |
Shares of beneficial interest outstanding | 12,912,264 |
Net asset value and offering price per share outstanding | $ 20.70 |
Class R6 | |
Net assets applicable to outstanding shares | $127,823,160 |
Shares of beneficial interest outstanding | 6,175,799 |
Net asset value and offering price per share outstanding | $ 20.70 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 157,138 |
Shares of beneficial interest outstanding | 7,713 |
Net asset value and offering price per share outstanding | $ 20.37 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $40,043) | $ 15,573,370 |
Dividends-affiliated | 242,472 |
Securities lending, net | 52,246 |
Total income | 15,868,088 |
Expenses | |
Manager (See Note 3) | 3,319,928 |
Distribution/Service—Class A (See Note 3) | 605,086 |
Distribution/Service—Investor Class (See Note 3) | 87,813 |
Distribution/Service—Class B (See Note 3) | 11,821 |
Distribution/Service—Class C (See Note 3) | 40,824 |
Distribution/Service—Class R2 (See Note 3)(a) | 804 |
Distribution/Service—Class R3 (See Note 3)(a) | 3,203 |
Distribution/Service—SIMPLE Class (See Note 3) | 318 |
Transfer agent (See Note 3) | 461,329 |
Registration | 70,249 |
Professional fees | 61,729 |
Custodian | 27,326 |
Shareholder communication | 21,942 |
Trustees | 11,781 |
Shareholder service (See Note 3) | 1,075 |
Miscellaneous | 26,294 |
Total expenses before waiver/reimbursement | 4,751,522 |
Expense waiver/reimbursement from Manager (See Note 3) | (144,133) |
Net expenses | 4,607,389 |
Net investment income (loss) | 11,260,699 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on unaffiliated investments | 27,098,707 |
Net change in unrealized appreciation (depreciation) on unaffiliated investments | 110,020,099 |
Net realized and unrealized gain (loss) | 137,118,806 |
Net increase (decrease) in net assets resulting from operations | $148,379,505 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay Epoch U.S. Equity Yield Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 11,260,699 | $ 24,131,308 |
Net realized gain (loss) | 27,098,707 | 23,832,407 |
Net change in unrealized appreciation (depreciation) | 110,020,099 | (30,639,605) |
Net increase (decrease) in net assets resulting from operations | 148,379,505 | 17,324,110 |
Distributions to shareholders: | | |
Class A | (20,354,426) | (17,376,305) |
Investor Class | (3,004,328) | (2,460,343) |
Class B | (107,701) | (116,821) |
Class C | (336,603) | (282,010) |
Class I | (12,053,154) | (13,109,171) |
Class R1(a) | (25,663) | (28,460) |
Class R2(a) | (49,823) | (45,789) |
Class R3(a) | (99,851) | (84,878) |
Class R6 | (5,378,567) | (5,163,424) |
SIMPLE Class | (4,538) | (2,799) |
Total distributions to shareholders | (41,414,654) | (38,670,000) |
Capital share transactions: | | |
Net proceeds from sales of shares | 24,938,252 | 53,734,944 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 40,853,622 | 38,183,715 |
Cost of shares redeemed | (101,617,996) | (234,806,995) |
Increase (decrease) in net assets derived from capital share transactions | (35,826,122) | (142,888,336) |
Net increase (decrease) in net assets | 71,138,729 | (164,234,226) |
Net Assets |
Beginning of period | 899,662,624 | 1,063,896,850 |
End of period | $ 970,801,353 | $ 899,662,624 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.28 | | $ 18.78 | | $ 19.70 | | $ 14.96 | | $ 17.07 | | $ 15.70 |
Net investment income (loss) (a) | 0.22 | | 0.42 | | 0.39 | | 0.32 | | 0.36 | | 0.36 |
Net realized and unrealized gain (loss) | 2.80 | | (0.23) | | (0.95) | | 4.78 | | (1.83) | | 1.84 |
Total from investment operations | 3.02 | | 0.19 | | (0.56) | | 5.10 | | (1.47) | | 2.20 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.23) | | (0.40) | | (0.36) | | (0.36) | | (0.34) | | (0.37) |
From net realized gain on investments | (0.62) | | (0.29) | | — | | — | | (0.30) | | (0.46) |
Total distributions | (0.85) | | (0.69) | | (0.36) | | (0.36) | | (0.64) | | (0.83) |
Net asset value at end of period | $ 20.45 | | $ 18.28 | | $ 18.78 | | $ 19.70 | | $ 14.96 | | $ 17.07 |
Total investment return (b) | 16.85% | | 0.87% | | (2.85)% | | 34.30% | | (8.77)% | | 14.49% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.23%†† | | 2.22% | | 2.00% | | 1.76% | | 2.31% | | 2.21% |
Net expenses (c) | 1.06%††(d) | | 1.06% | | 1.05% | | 1.07% | | 1.08%(e) | | 1.08% |
Expenses (before waiver/reimbursement) (c) | 1.06%†† | | 1.06% | | 1.05% | | 1.07% | | 1.09% | | 1.08% |
Portfolio turnover rate | 6% | | 19% | | 25% | | 16% | | 29% | | 18% |
Net assets at end of period (in 000’s) | $ 498,062 | | $ 442,341 | | $ 483,936 | | $ 508,888 | | $ 379,695 | | $ 450,979 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Expense waiver/reimbursement less than 0.01%. |
(e) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay Epoch U.S. Equity Yield Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.19 | | $ 18.69 | | $ 19.61 | | $ 14.89 | | $ 16.99 | | $ 15.63 |
Net investment income (loss) (a) | 0.19 | | 0.37 | | 0.34 | | 0.28 | | 0.32 | | 0.32 |
Net realized and unrealized gain (loss) | 2.79 | | (0.23) | | (0.95) | | 4.75 | | (1.82) | | 1.83 |
Total from investment operations | 2.98 | | 0.14 | | (0.61) | | 5.03 | | (1.50) | | 2.15 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.21) | | (0.35) | | (0.31) | | (0.31) | | (0.30) | | (0.33) |
From net realized gain on investments | (0.62) | | (0.29) | | — | | — | | (0.30) | | (0.46) |
Total distributions | (0.83) | | (0.64) | | (0.31) | | (0.31) | | (0.60) | | (0.79) |
Net asset value at end of period | $ 20.34 | | $ 18.19 | | $ 18.69 | | $ 19.61 | | $ 14.89 | | $ 16.99 |
Total investment return (b) | 16.68% | | 0.60% | | (3.12)% | | 33.96% | | (8.99)% | | 14.25% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.98%†† | | 1.95% | | 1.75% | | 1.53% | | 2.07% | | 2.01% |
Net expenses (c) | 1.34%†† | | 1.33% | | 1.30% | | 1.33% | | 1.33%(d) | | 1.30% |
Expenses (before waiver/reimbursement) (c) | 1.39%†† | | 1.39% | | 1.30% | | 1.39% | | 1.38% | | 1.35% |
Portfolio turnover rate | 6% | | 19% | | 25% | | 16% | | 29% | | 18% |
Net assets at end of period (in 000's) | $ 68,113 | | $ 67,157 | | $ 73,132 | | $ 86,155 | | $ 81,365 | | $ 100,602 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of less than 0.01%. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class B | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 17.61 | | $ 18.11 | | $ 19.00 | | $ 14.43 | | $ 16.48 | | $ 15.18 |
Net investment income (loss) (a) | 0.12 | | 0.23 | | 0.19 | | 0.14 | | 0.21 | | 0.20 |
Net realized and unrealized gain (loss) | 2.69 | | (0.24) | | (0.92) | | 4.60 | | (1.78) | | 1.77 |
Total from investment operations | 2.81 | | (0.01) | | (0.73) | | 4.74 | | (1.57) | | 1.97 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.14) | | (0.20) | | (0.16) | | (0.17) | | (0.18) | | (0.21) |
From net realized gain on investments | (0.62) | | (0.29) | | — | | — | | (0.30) | | (0.46) |
Total distributions | (0.76) | | (0.49) | | (0.16) | | (0.17) | | (0.48) | | (0.67) |
Net asset value at end of period | $ 19.66 | | $ 17.61 | | $ 18.11 | | $ 19.00 | | $ 14.43 | | $ 16.48 |
Total investment return (b) | 16.24% | | (0.16)% | | (3.82)% | | 32.98% | | (9.71)% | | 13.40% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.28%†† | | 1.24% | | 1.01% | | 0.80% | | 1.36% | | 1.29% |
Net expenses (c) | 2.09%†† | | 2.08% | | 2.06% | | 2.08% | | 2.08%(d) | | 2.05% |
Expenses (before waiver/reimbursement) (c) | 2.14%†† | | 2.14% | | 2.06% | | 2.14% | | 2.13% | | 2.10% |
Portfolio turnover rate | 6% | | 19% | | 25% | | 16% | | 29% | | 18% |
Net assets at end of period (in 000’s) | $ 1,856 | | $ 2,654 | | $ 4,827 | | $ 7,840 | | $ 8,894 | | $ 14,579 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 17.61 | | $ 18.11 | | $ 19.00 | | $ 14.43 | | $ 16.47 | | $ 15.17 |
Net investment income (loss) (a) | 0.12 | | 0.22 | | 0.19 | | 0.14 | | 0.20 | | 0.20 |
Net realized and unrealized gain (loss) | 2.69 | | (0.23) | | (0.92) | | 4.60 | | (1.76) | | 1.77 |
Total from investment operations | 2.81 | | (0.01) | | (0.73) | | 4.74 | | (1.56) | | 1.97 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.14) | | (0.20) | | (0.16) | | (0.17) | | (0.18) | | (0.21) |
From net realized gain on investments | (0.62) | | (0.29) | | — | | — | | (0.30) | | (0.46) |
Total distributions | (0.76) | | (0.49) | | (0.16) | | (0.17) | | (0.48) | | (0.67) |
Net asset value at end of period | $ 19.66 | | $ 17.61 | | $ 18.11 | | $ 19.00 | | $ 14.43 | | $ 16.47 |
Total investment return (b) | 16.24% | | (0.16)% | | (3.82)% | | 32.98% | | (9.66)% | | 13.41% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.23%†† | | 1.22% | | 1.00% | | 0.81% | | 1.35% | | 1.30% |
Net expenses (c) | 2.09%†† | | 2.08% | | 2.06% | | 2.08% | | 2.08%(d) | | 2.05% |
Expenses (before waiver/reimbursement) (c) | 2.14%†† | | 2.14% | | 2.06% | | 2.14% | | 2.13% | | 2.10% |
Portfolio turnover rate | 6% | | 19% | | 25% | | 16% | | 29% | | 18% |
Net assets at end of period (in 000’s) | $ 7,544 | | $ 7,954 | | $ 10,961 | | $ 14,435 | | $ 17,920 | | $ 30,663 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay Epoch U.S. Equity Yield Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.49 | | $ 18.99 | | $ 19.91 | | $ 15.11 | | $ 17.24 | | $ 15.85 |
Net investment income (loss) (a) | 0.26 | | 0.49 | | 0.45 | | 0.39 | | 0.41 | | 0.40 |
Net realized and unrealized gain (loss) | 2.84 | | (0.24) | | (0.95) | | 4.82 | | (1.85) | | 1.86 |
Total from investment operations | 3.10 | | 0.25 | | (0.50) | | 5.21 | | (1.44) | | 2.26 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.27) | | (0.46) | | (0.42) | | (0.41) | | (0.39) | | (0.41) |
From net realized gain on investments | (0.62) | | (0.29) | | — | | — | | (0.30) | | (0.46) |
Total distributions | (0.89) | | (0.75) | | (0.42) | | (0.41) | | (0.69) | | (0.87) |
Net asset value at end of period | $ 20.70 | | $ 18.49 | | $ 18.99 | | $ 19.91 | | $ 15.11 | | $ 17.24 |
Total investment return (b) | 17.06% | | 1.18% | | (2.50)% | | 34.78% | | (8.50)% | | 14.76% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.58%†† | | 2.56% | | 2.32% | | 2.10% | | 2.63% | | 2.46% |
Net expenses (c) | 0.73%†† | | 0.73% | | 0.73% | | 0.73% | | 0.76%(d) | | 0.83% |
Expenses (before waiver/reimbursement) (c) | 0.81%†† | | 0.81% | | 0.80% | | 0.82% | | 0.84% | | 0.83% |
Portfolio turnover rate | 6% | | 19% | | 25% | | 16% | | 29% | | 18% |
Net assets at end of period (in 000’s) | $ 267,247 | | $ 262,299 | | $ 351,106 | | $ 357,565 | | $ 269,100 | | $ 313,261 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.49 | | $ 18.99 | | $ 19.92 | | $ 15.12 | | $ 17.25 | | $ 15.85 |
Net investment income (loss) (a) | 0.26 | | 0.49 | | 0.46 | | 0.39 | | 0.42 | | 0.42 |
Net realized and unrealized gain (loss) | 2.84 | | (0.24) | | (0.97) | | 4.83 | | (1.86) | | 1.86 |
Total from investment operations | 3.10 | | 0.25 | | (0.51) | | 5.22 | | (1.44) | | 2.28 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.27) | | (0.46) | | (0.42) | | (0.42) | | (0.39) | | (0.42) |
From net realized gain on investments | (0.62) | | (0.29) | | — | | — | | (0.30) | | (0.46) |
Total distributions | (0.89) | | (0.75) | | (0.42) | | (0.42) | | (0.69) | | (0.88) |
Net asset value at end of period | $ 20.70 | | $ 18.49 | | $ 18.99 | | $ 19.92 | | $ 15.12 | | $ 17.25 |
Total investment return (b) | 17.06% | | 1.19% | | (2.54)% | | 34.78% | | (8.46)% | | 14.94% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.57%†† | | 2.56% | | 2.32% | | 2.11% | | 2.68% | | 2.60% |
Net expenses (c) | 0.73%†† | | 0.73%(d) | | 0.73% | | 0.73% | | 0.73%(e) | | 0.73% |
Expenses (before waiver/reimbursement) (c) | 0.74%†† | | 0.73% | | 0.73% | | 0.73% | | 0.74% | | 0.73% |
Portfolio turnover rate | 6% | | 19% | | 25% | | 16% | | 29% | | 18% |
Net assets at end of period (in 000’s) | $ 127,823 | | $ 112,773 | | $ 135,192 | | $ 143,436 | | $ 107,887 | | $ 165,999 |
* | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Expense waiver/reimbursement less than 0.01%. |
(e) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay Epoch U.S. Equity Yield Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 18.22 | | $ 18.74 | | $ 19.65 | | $ 14.89 | | $ 15.57** |
Net investment income (loss) (a) | 0.19 | | 0.36 | | 0.28 | | 0.22 | | 0.03 |
Net realized and unrealized gain (loss) | 2.80 | | (0.24) | | (0.93) | | 4.76 | | (0.68) |
Total from investment operations | 2.99 | | 0.12 | | (0.65) | | 4.98 | | (0.65) |
Less distributions: | | | | | | | | | |
From net investment income | (0.22) | | (0.35) | | (0.26) | | (0.22) | | (0.03) |
From net realized gain on investments | (0.62) | | (0.29) | | — | | — | | — |
Total distributions | (0.84) | | (0.64) | | (0.26) | | (0.22) | | (0.03) |
Net asset value at end of period | $ 20.37 | | $ 18.22 | | $ 18.74 | | $ 19.65 | | $ 14.89 |
Total investment return (b) | 16.69% | | 0.55% | | (3.34)% | | 33.61% | | (4.16)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 1.92%†† | | 1.88% | | 1.48% | | 1.20% | | 0.98%†† |
Net expenses (c) | 1.32%††(d) | | 1.38% | | 1.55% | | 1.58% | | 1.57%††(e) |
Expenses (before waiver/reimbursement) (c) | 1.32%†† | | 1.38% | | 1.55% | | 1.65% | | 1.63%†† |
Portfolio turnover rate | 6% | | 19% | | 25% | | 16% | | 29% |
Net assets at end of period (in 000’s) | $ 157 | | $ 93 | | $ 77 | | $ 43 | | $ 24 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Expense waiver/reimbursement less than 0.01%. |
(e) | Net of interest expense of less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Epoch U.S. Equity Yield Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | February 3, 2009 |
Investor Class | November 16, 2009 |
Class B | May 8, 2017 |
Class C | November 16, 2009 |
Class I | December 3, 2008 |
Class R6 | May 8, 2017 |
SIMPLE Class | August 31, 2020 |
Effective at the close of business on February 23, 2024, Class R1, R2 and R3 shares were liquidated.
Class B shares of the MainStay Group of Funds are closed to all new purchases as well as additional investments by existing Class B shareholders. Existing Class B shareholders may continue to reinvest dividends and capital gains distributions, as well as exchange their Class B shares for Class B shares of other funds in the MainStay Group of Funds as permitted by the current exchange privileges. Class B shareholders continue to be subject to any applicable contingent deferred sales charge ("CDSC") at the time of redemption. All other features of the Class B shares, including but not limited to the fees and expenses applicable to Class B shares, remain unchanged. Unless redeemed, Class B shareholders will remain in Class B shares of their respective fund until the Class B shares are converted to Class A or Investor Class shares pursuant to the applicable conversion schedule.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a CDSC of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class B and Class C shares are offered at NAV without an initial sales charge, although a CDSC that declines depending on the number of years a shareholder held its Class B shares may be imposed on redemptions made within six years of the date of purchase of such shares and a 1.00% CDSC may be imposed on redemptions made within one year of the date of purchase of Class C shares. Class I, Class R6 and SIMPLE Class shares are offered at NAV without a sales charge. Depending upon eligibility, Class B shares convert to either Class A or Investor Class
shares at the end of the calendar quarter eight years after the date they were purchased. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. SIMPLE Class shares convert to Class A shares, or Investor Class shares if you are not eligible to hold Class A shares, at the end of the calendar quarter, ten years after the date they were purchased. Share class conversions are based on the relevant NAVs of the two classes at the time of the conversion, and no sales load or other charge is imposed. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 fees than Class A, Investor Class and SIMPLE Class shares under distribution plans pursuant to Rule 12b-1 under the 1940 Act. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek current income and capital appreciation.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation
22 | MainStay Epoch U.S. Equity Yield Fund |
Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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
Notes to Financial Statements (Unaudited) (continued)
has entered into a restructuring; (iv) a security that has been delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 from net investment income, if any, at least quarterly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
24 | MainStay Epoch U.S. Equity Yield Fund |
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(H) 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 the 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.
(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Epoch Investment Partners, Inc. (“Epoch” or the “Subadvisor”), a registered investment adviser, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and Epoch, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.70% up to $500 million; 0.68% from $500 million to $1 billion; 0.66% from $1 billion to $2 billion; and 0.65% in excess of $2 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.69% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) of Class I do not exceed 0.73%. In addition, New York Life Investments will waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) of Class R6 do not exceed those of Class I. These agreements will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $3,319,928 and waived fees and/or reimbursed certain class specific expenses in the
Notes to Financial Statements (Unaudited) (continued)
amount of $144,133 and paid the Subadvisor in the amount of $1,597,890.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and 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 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 and SIMPLE Class Plans, Class R3 and SIMPLE Class shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, for a total 12b-1 fee of 0.50%. Class I, Class R1 and Class R6 shares are not subject to a distribution and/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.
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, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R1, Class R2 and Class R3 shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the period November 1, 2023 through February 23, 2024, shareholder service fees incurred by the Fund were as follows:
|
Class R1* | $112 |
Class R2* | 322 |
Class R3* | 641 |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $18,072 and $2,631, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Class B and Class C shares during the six-month period ended April 30, 2024, of $320, $10 and $319, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $189,328 | $ — |
Investor Class | 141,144 | (17,428) |
Class B | 4,737 | (573) |
Class C | 16,364 | (1,984) |
Class I | 106,388 | — |
Class R1* | 89 | — |
Class R2* | 256 | — |
Class R3* | 510 | — |
Class R6 | 2,457 | — |
SIMPLE Class | 56 | — |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
26 | MainStay Epoch U.S. Equity Yield Fund |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $664,361,254 | $329,596,867 | $(22,720,493) | $306,876,374 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $22,404,190 |
Long-Term Capital Gains | 16,265,810 |
Total | $38,670,000 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $52,497 and $119,738, respectively.
Notes to Financial Statements (Unaudited) (continued)
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 462,048 | $ 9,224,565 |
Shares issued to shareholders in reinvestment of distributions | 1,036,849 | 19,946,643 |
Shares redeemed | (1,760,374) | (34,973,439) |
Net increase (decrease) in shares outstanding before conversion | (261,477) | (5,802,231) |
Shares converted into Class A (See Note 1) | 424,786 | 8,565,241 |
Shares converted from Class A (See Note 1) | (7,173) | (145,211) |
Net increase (decrease) | 156,136 | $ 2,617,799 |
Year ended October 31, 2023: | | |
Shares sold | 973,771 | $ 18,604,666 |
Shares issued to shareholders in reinvestment of distributions | 885,565 | 17,036,428 |
Shares redeemed | (3,625,920) | (69,451,735) |
Net increase (decrease) in shares outstanding before conversion | (1,766,584) | (33,810,641) |
Shares converted into Class A (See Note 1) | 226,614 | 4,297,248 |
Shares converted from Class A (See Note 1) | (25,712) | (498,356) |
Net increase (decrease) | (1,565,682) | $ (30,011,749) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 31,043 | $ 623,337 |
Shares issued to shareholders in reinvestment of distributions | 156,698 | 2,992,234 |
Shares redeemed | (162,286) | (3,212,275) |
Net increase (decrease) in shares outstanding before conversion | 25,455 | 403,296 |
Shares converted into Investor Class (See Note 1) | 15,169 | 304,146 |
Shares converted from Investor Class (See Note 1) | (384,296) | (7,712,750) |
Net increase (decrease) | (343,672) | $ (7,005,308) |
Year ended October 31, 2023: | | |
Shares sold | 63,894 | $ 1,214,662 |
Shares issued to shareholders in reinvestment of distributions | 127,791 | 2,449,156 |
Shares redeemed | (311,398) | (5,917,493) |
Net increase (decrease) in shares outstanding before conversion | (119,713) | (2,253,675) |
Shares converted into Investor Class (See Note 1) | 41,278 | 793,765 |
Shares converted from Investor Class (See Note 1) | (141,499) | (2,664,862) |
Net increase (decrease) | (219,934) | $ (4,124,772) |
|
Class B | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 527 | $ 10,362 |
Shares issued to shareholders in reinvestment of distributions | 5,826 | 107,128 |
Shares redeemed | (10,148) | (195,230) |
Net increase (decrease) in shares outstanding before conversion | (3,795) | (77,740) |
Shares converted from Class B (See Note 1) | (52,545) | (1,015,677) |
Net increase (decrease) | (56,340) | $ (1,093,417) |
Year ended October 31, 2023: | | |
Shares sold | 834 | $ 15,521 |
Shares issued to shareholders in reinvestment of distributions | 6,217 | 116,032 |
Shares redeemed | (29,897) | (547,694) |
Net increase (decrease) in shares outstanding before conversion | (22,846) | (416,141) |
Shares converted from Class B (See Note 1) | (92,917) | (1,713,976) |
Net increase (decrease) | (115,763) | $ (2,130,117) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 9,369 | $ 174,504 |
Shares issued to shareholders in reinvestment of distributions | 18,233 | 335,694 |
Shares redeemed | (84,560) | (1,634,261) |
Net increase (decrease) in shares outstanding before conversion | (56,958) | (1,124,063) |
Shares converted from Class C (See Note 1) | (11,054) | (214,633) |
Net increase (decrease) | (68,012) | $ (1,338,696) |
Year ended October 31, 2023: | | |
Shares sold | 36,529 | $ 675,156 |
Shares issued to shareholders in reinvestment of distributions | 15,082 | 281,221 |
Shares redeemed | (175,742) | (3,221,325) |
Net increase (decrease) in shares outstanding before conversion | (124,131) | (2,264,948) |
Shares converted from Class C (See Note 1) | (29,423) | (543,346) |
Net increase (decrease) | (153,554) | $ (2,808,294) |
|
28 | MainStay Epoch U.S. Equity Yield Fund |
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 331,942 | $ 6,739,016 |
Shares issued to shareholders in reinvestment of distributions | 612,003 | 11,919,093 |
Shares redeemed | (2,228,074) | (44,668,342) |
Net increase (decrease) in shares outstanding before conversion | (1,284,129) | (26,010,233) |
Shares converted into Class I (See Note 1) | 10,739 | 221,735 |
Shares converted from Class I (See Note 1) | (137) | (2,851) |
Net increase (decrease) | (1,273,527) | $ (25,791,349) |
Year ended October 31, 2023: | | |
Shares sold | 1,292,727 | $ 24,919,097 |
Shares issued to shareholders in reinvestment of distributions | 667,328 | 12,979,243 |
Shares redeemed | (6,280,669) | (122,008,540) |
Net increase (decrease) in shares outstanding before conversion | (4,320,614) | (84,110,200) |
Shares converted into Class I (See Note 1) | 24,789 | 485,968 |
Shares converted from Class I (See Note 1) | (7,236) | (133,794) |
Net increase (decrease) | (4,303,061) | $ (83,758,026) |
|
Class R1 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 160 | $ 3,096 |
Shares issued to shareholders in reinvestment of distributions | 1,334 | 25,662 |
Shares redeemed | (40,527) | (798,431) |
Net increase (decrease) | (39,033) | $ (769,673) |
Year ended October 31, 2023: | | |
Shares sold | 2,969 | $ 56,557 |
Shares issued to shareholders in reinvestment of distributions | 1,465 | 28,460 |
Shares redeemed | (4,954) | (96,705) |
Net increase (decrease) | (520) | $ (11,688) |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 772 | $ 14,882 |
Shares issued to shareholders in reinvestment of distributions | 2,468 | 46,944 |
Shares redeemed | (68,898) | (1,376,344) |
Net increase (decrease) | (65,658) | $ (1,314,518) |
Year ended October 31, 2023: | | |
Shares sold | 6,639 | $ 126,811 |
Shares issued to shareholders in reinvestment of distributions | 2,289 | 44,058 |
Shares redeemed | (13,272) | (256,137) |
Net increase (decrease) | (4,344) | $ (85,268) |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 2,781 | $ 54,066 |
Shares issued to shareholders in reinvestment of distributions | 5,101 | 97,119 |
Shares redeemed | (143,027) | (2,852,546) |
Net increase (decrease) | (135,145) | $ (2,701,361) |
Year ended October 31, 2023: | | |
Shares sold | 21,163 | $ 400,482 |
Shares issued to shareholders in reinvestment of distributions | 4,303 | 82,894 |
Shares redeemed | (28,792) | (550,277) |
Net increase (decrease) | (3,326) | $ (66,901) |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 400,235 | $ 8,030,335 |
Shares issued to shareholders in reinvestment of distributions | 275,973 | 5,378,567 |
Shares redeemed | (599,394) | (11,890,105) |
Net increase (decrease) | 76,814 | $ 1,518,797 |
Year ended October 31, 2023: | | |
Shares sold | 399,650 | $ 7,703,241 |
Shares issued to shareholders in reinvestment of distributions | 265,704 | 5,163,424 |
Shares redeemed | (1,683,921) | (32,754,489) |
Net increase (decrease) in shares outstanding before conversion | (1,018,567) | (19,887,824) |
Shares converted from Class R6 (See Note 1) | (1,162) | (22,647) |
Net increase (decrease) | (1,019,729) | $ (19,910,471) |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 3,238 | $ 64,089 |
Shares issued to shareholders in reinvestment of distributions | 236 | 4,538 |
Shares redeemed | (864) | (17,023) |
Net increase (decrease) | 2,610 | $ 51,604 |
Year ended October 31, 2023: | | |
Shares sold | 986 | $ 18,751 |
Shares issued to shareholders in reinvestment of distributions | 146 | 2,799 |
Shares redeemed | (134) | (2,600) |
Net increase (decrease) | 998 | $ 18,950 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism,
Notes to Financial Statements (Unaudited) (continued)
recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
30 | MainStay Epoch U.S. Equity Yield Fund |
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay Epoch U.S. 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and Epoch in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and Epoch in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or Epoch that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, Epoch personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and Epoch; (ii) the qualifications of the portfolio managers of the Fund and the historical 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 Epoch with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and Epoch. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and Epoch resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and Epoch
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by Epoch, evaluating the performance of Epoch, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of Epoch and ongoing analysis of, and interactions with, Epoch with respect to, among other things, the Fund’s investment performance and risks as well as Epoch’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that Epoch provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated Epoch’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and Epoch’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at Epoch. The Board considered New York Life Investments’ and Epoch’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and Epoch and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered Epoch’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and Epoch regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
32 | MainStay Epoch U.S. Equity Yield Fund |
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of Epoch and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and Epoch
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. With respect to the profitability of Epoch’s relationship with the Fund, the Board considered information from New York Life Investments that Epoch’s subadvisory fee reflected an arm’s-length negotiation and that this fee is paid by New York Life Investments, not the Fund, and the relevance of Epoch’s profitability was considered by the Trustees in that context. On this basis, the Board primarily considered the costs and profitability for New York Life Investments and its affiliates with respect to the Fund.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and Epoch, and profitability of New York Life Investments and its affiliates and Epoch due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’ and Epoch’s continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also
considered the financial resources of New York Life Investments and Epoch and acknowledged that New York Life Investments and Epoch must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and Epoch to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates and Epoch and its affiliates due to their relationships with the Fund, including reputational and other indirect benefits. 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 in the Fund’s portfolio securities. In this regard, the Board also requested and considered information from New York Life Investments concerning other material business relationships between Epoch and its affiliates and New York Life Investments and its affiliates and considered the existence of a strategic partnership between New York Life Investments and Epoch that relates to certain current and future products and represents a potential conflict of interest associated with New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund were not excessive, other expected benefits that may accrue to New York Life Investments and its affiliates are reasonable and other expected benefits that may accrue to Epoch and its affiliates are consistent with those expected for a subadvisor to a mutual fund. With respect to Epoch, the Board considered 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, acknowledging that any such profits are based on the subadvisory fee paid to Epoch by New York Life Investments, not the Fund.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to Epoch is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. 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/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
34 | MainStay Epoch U.S. Equity Yield Fund |
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
36 | MainStay Epoch U.S. Equity Yield Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022292 MS081-24 | MSEUE10-06/24 |
(NYLIM) NL239
MainStay Floating Rate Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares | Maximum 3.00% Initial Sales Charge | With sales charges | 5/3/2004 | 2.47% | 6.99% | 3.52% | 3.37% | 0.97% |
| | Excluding sales charges | | 5.64 | 10.30 | 4.15 | 3.68 | 0.97 |
Investor Class Shares3 | Maximum 2.50% Initial Sales Charge | With sales charges | 2/28/2008 | 2.93 | 7.37 | 3.44 | 3.33 | 1.10 |
| | Excluding sales charges | | 5.57 | 10.12 | 4.07 | 3.64 | 1.10 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 5/3/2004 | 4.17 | 8.18 | 3.27 | 2.87 | 1.85 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 5.17 | 9.18 | 3.27 | 2.87 | 1.85 |
Class I Shares | No Sales Charge | | 5/3/2004 | 5.77 | 10.58 | 4.41 | 3.94 | 0.73 |
Class R6 Shares | No Sales Charge | | 2/28/2019 | 5.69 | 10.51 | 4.53 | 4.68 | 0.64 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 5.51 | 10.03 | N/A | 5.07 | 1.20 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge was 3.00%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg U.S. Aggregate Bond Index2 | 4.97% | -1.47% | -0.16% | 1.20% |
Morningstar LSTA US Leveraged Loan Index3 | 6.05 | 11.97 | 5.26 | 4.60 |
Morningstar Bank Loan Category Average4 | 6.05 | 11.07 | 3.94 | 3.53 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg U.S. Aggregate Bond Index, which represents a broad measure of market performance, as a replacement for the Morninstar LSTA US Leveraged Loan Index. The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the performance of 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. |
3. | The Morningstar LSTA US Leveraged Loan Index, which is generally representative of the market sectors or types of investments in which the Fund invests, is a broad-based index designed to reflect the performance of U.S. dollar facilities in the leveraged loan market. |
4. | The Morningstar Bank Loan Category Average is representative of funds that invest in floating-rate bank loans instead of bonds. In exchange for their credit risk, these loans offer high interest payments that typically float above a common short-term benchmark. Results are based on average total returns of similar funds with all dividends 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,056.40 | $4.91 | $1,020.09 | $4.82 | 0.96% |
Investor Class Shares | $1,000.00 | $1,055.70 | $5.67 | $1,019.34 | $5.57 | 1.11% |
Class C Shares | $1,000.00 | $1,051.70 | $9.44 | $1,015.66 | $9.27 | 1.85% |
Class I Shares | $1,000.00 | $1,057.70 | $3.58 | $1,021.38 | $3.52 | 0.70% |
Class R6 Shares | $1,000.00 | $1,056.90 | $3.27 | $1,021.68 | $3.22 | 0.64% |
SIMPLE Class Shares | $1,000.00 | $1,055.10 | $6.18 | $1,018.85 | $6.07 | 1.21% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
Finance | 7.3% |
Electronics | 5.9 |
Services: Business | 5.8 |
Chemicals, Plastics & Rubber | 5.2 |
Other Asset-Backed Securities | 5.0 |
Insurance | 4.4 |
Healthcare, Education & Childcare | 4.0 |
Software | 3.8 |
Hotels, Motels, Inns & Gaming | 3.7 |
Containers, Packaging & Glass | 3.0 |
Oil & Gas | 2.6 |
Aerospace & Defense | 2.6 |
Telecommunications | 2.5 |
Buildings & Real Estate | 2.5 |
Manufacturing | 2.5 |
High Tech Industries | 2.5 |
Diversified/Conglomerate Manufacturing | 2.1 |
Diversified/Conglomerate Service | 2.1 |
Healthcare | 2.1 |
Media | 1.7 |
Automobile | 1.7 |
Personal & Nondurable Consumer Products | 1.7 |
Entertainment | 1.3 |
Healthcare & Pharmaceuticals | 1.3 |
Broadcasting & Entertainment | 1.2 |
Leisure, Amusement, Motion Pictures & Entertainment | 1.1 |
Beverage, Food & Tobacco | 1.1 |
Mining, Steel, Iron & Non-Precious Metals | 1.1 |
Utilities | 1.1 |
Personal, Food & Miscellaneous Services | 1.0 |
Retail Store | 0.9 |
Chemicals | 0.9 |
Commercial Services | 0.9 |
Banking | 0.8 |
Personal & Nondurable Consumer Products (Manufacturing Only) | 0.7 |
Capital Equipment | 0.7 |
Diversified Financial Services | 0.7 |
Machinery (Non-Agriculture, Non-Construct & Non-Electronic) | 0.6 |
Retail | 0.5 |
Hotel, Gaming & Leisure | 0.5 |
Affiliated Investment Company | 0.4 |
Printing & Publishing | 0.4 |
Pharmaceuticals | 0.4% |
Water | 0.3 |
Packaging | 0.3 |
Energy (Electricity) | 0.3 |
Packaging & Containers | 0.3 |
Consumer Durables | 0.2 |
Animal Food | 0.2 |
Ecological | 0.2 |
Environmental Control | 0.2 |
Building Materials | 0.2 |
Real Estate Investment Trusts | 0.2 |
Auto Manufacturers | 0.2 |
Services: Consumer | 0.1 |
Personal Transportation | 0.1 |
Electric | 0.1 |
Lodging | 0.1 |
Healthcare-Services | 0.1 |
Machinery-Diversified | 0.1 |
Real Estate | 0.1 |
Internet | 0.1 |
Engineering & Construction | 0.1 |
Pipelines | 0.1 |
Health Care Providers & Services | 0.1 |
Iron & Steel | 0.0‡ |
Distribution & Wholesale | 0.0‡ |
Food | 0.0‡ |
Airlines | 0.0‡ |
Healthcare-Products | 0.0‡ |
Technology Hardware, Storage & Peripherals | 0.0‡ |
IT Services | 0.0‡ |
Communications Equipment | 0.0‡ |
Machinery | 0.0‡ |
Specialty Retail | 0.0‡ |
Health Care Equipment & Supplies | 0.0‡ |
Independent Power and Renewable Electricity Producers | 0.0‡ |
Automobile Components | 0.0‡ |
Household Durables | 0.0‡ |
Financial Services | 0.0‡ |
Capital Markets | 0.0‡ |
Short-Term Investments | 4.2 |
Other Assets, Less Liabilities | -0.2 |
| 100.0% |
‡ | Less than one-tenth of a percent. |
See Portfolio of Investments beginning on page 10 for specific holdings within these categories. The Fund's holdings are subject to change.
8 | MainStay Floating Rate Fund |
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Palmer Square CLO Ltd., 7.24%-13.155%, due 7/20/34–4/15/37 |
2. | Asurion LLC, 8.68%-10.68%, due 12/23/26–1/20/29 |
3. | Univision Communications, Inc., 6.625%-9.559%, due 6/1/27–6/24/29 |
4. | Allied Universal Holdco LLC, 7.875%-10.066%, due 5/12/28–2/15/31 |
5. | TransDigm, Inc., 7.125%-8.059%, due 8/24/28–12/1/31 |
6. | UKG, Inc., 8.814%, due 2/10/31 |
7. | Rocket Software, Inc., 9.00%-10.066%, due 11/28/28 |
8. | Chariot Buyer LLC, 8.666%-9.066%, due 11/3/28 |
9. | Agiliti Health, Inc., 8.302%, due 5/1/30 |
10. | Nouryon Finance BV, 9.419%-9.423%, due 4/3/28 |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Long-Term Bonds 95.5% |
Asset-Backed Securities 5.0% |
Other Asset-Backed Securities 5.0% |
720 East CLO IV Ltd. (a)(b) | |
Series 2024-1A, Class B | | |
7.295% (3 Month SOFR + 2.00%), due 4/15/37 | $ 787,500 | $ 787,760 |
Series 2024-1A, Class D | | |
9.145% (3 Month SOFR + 3.85%), due 4/15/37 | 1,250,000 | 1,250,178 |
AGL CLO 20 Ltd. (a)(b) | |
Series 2022-20A, Class B | | |
8.275% (3 Month SOFR + 2.95%), due 7/20/35 | 2,500,000 | 2,506,505 |
Series 2022-20A, Class E | | |
13.685% (3 Month SOFR + 8.36%), due 7/20/35 | 2,500,000 | 2,510,630 |
AIMCO CLO 16 Ltd. (a)(b) | |
Series 2021-16A, Class B | | |
7.229% (3 Month SOFR + 1.912%), due 1/17/35 | 2,500,000 | 2,507,955 |
Series 2021-16A, Class E | | |
11.779% (3 Month SOFR + 6.462%), due 1/17/35 | 2,500,000 | 2,499,902 |
AIMCO CLO 20 Ltd. (a)(b) | |
Series 2023-20A, Class B1 | | |
7.565% (3 Month SOFR + 2.20%), due 10/16/36 | 1,500,000 | 1,505,393 |
Series 2023-20A, Class D | | |
9.365% (3 Month SOFR + 4.00%), due 10/16/36 | 1,276,785 | 1,279,169 |
Ballyrock CLO 21 Ltd. (a)(b) | |
Series 2022-21A, Class A2A | | |
8.125% (3 Month SOFR + 2.80%), due 10/20/35 | 2,700,000 | 2,711,748 |
Series 2022-21A, Class C | | |
10.645% (3 Month SOFR + 5.32%), due 10/20/35 | 2,500,000 | 2,521,545 |
Carlyle U.S. CLO Ltd. (a)(b) | |
Series 2022-2A, Class A2 | | |
7.325% (3 Month SOFR + 2.00%), due 4/20/35 | 2,500,000 | 2,508,592 |
Series 2022-2A, Class D | | |
12.725% (3 Month SOFR + 7.40%), due 4/20/35 | 2,500,000 | 2,501,035 |
Danby Park CLO Ltd. (a)(b) | |
Series 2022-1A, Class B | | |
8.275% (3 Month SOFR + 2.95%), due 10/21/35 | 1,000,000 | 1,008,141 |
| Principal Amount | Value |
|
Other Asset-Backed Securities (continued) |
Danby Park CLO Ltd. (a)(b) (continued) | |
Series 2022-1A, Class D | | |
10.655% (3 Month SOFR + 5.33%), due 10/21/35 | $ 1,000,000 | $ 1,011,219 |
Elmwood CLO XII Ltd. (a)(b) | |
Series 2021-5A, Class B | | |
7.286% (3 Month SOFR + 1.962%), due 1/20/35 | 2,500,000 | 2,511,292 |
Series 2021-5A, Class E | | |
11.936% (3 Month SOFR + 6.612%), due 1/20/35 | 2,500,000 | 2,506,485 |
Empower CLO Ltd. (a)(b) | |
Series 2023-2A, Class B | | |
8.079% (3 Month SOFR + 2.75%), due 7/15/36 | 1,250,000 | 1,260,198 |
Series 2023-2A, Class D | | |
10.729% (3 Month SOFR + 5.40%), due 7/15/36 | 1,250,000 | 1,283,271 |
Galaxy 32 CLO Ltd. (a)(b) | |
Series 2023-32A, Class B | | |
7.625% (3 Month SOFR + 2.30%), due 10/20/36 | 1,500,000 | 1,508,613 |
Series 2023-32A, Class D | | |
9.625% (3 Month SOFR + 4.30%), due 10/20/36 | 1,500,000 | 1,506,569 |
Magnetite XXXI Ltd. (a)(b) | |
Series 2021-31A, Class B | | |
7.24% (3 Month SOFR + 1.912%), due 7/15/34 | 2,500,000 | 2,509,892 |
Series 2021-31A, Class E | | |
11.59% (3 Month SOFR + 6.262%), due 7/15/34 | 2,500,000 | 2,492,363 |
Neuberger Berman Loan Advisers CLO 43 Ltd. (a)(b) | |
Series 2021-43A, Class C | | |
7.529% (3 Month SOFR + 2.212%), due 7/17/35 | 2,500,000 | 2,505,362 |
Series 2021-43A, Class E | | |
11.579% (3 Month SOFR + 6.262%), due 7/17/35 | 2,500,000 | 2,500,230 |
Neuberger Berman Loan Advisers CLO 51 Ltd. (a)(b) | |
Series 2022-51A, Class B | | |
8.376% (3 Month SOFR + 3.05%), due 10/23/35 | 1,250,000 | 1,253,265 |
Series 2022-51A, Class D | | |
11.026% (3 Month SOFR + 5.70%), due 10/23/35 | 1,250,000 | 1,259,958 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Asset-Backed Securities (continued) |
Other Asset-Backed Securities (continued) |
Octagon Investment Partners 51 Ltd. (a)(b) | |
Series 2021-1A, Class B | | |
7.286% (3 Month SOFR + 1.962%), due 7/20/34 | $ 2,500,000 | $ 2,502,897 |
Series 2021-1A, Class E | | |
12.336% (3 Month SOFR + 7.012%), due 7/20/34 | 2,500,000 | 2,500,607 |
OHA Credit Funding 16 Ltd. (a)(b) | |
Series 2023-16A, Class B | | |
7.575% (3 Month SOFR + 2.25%), due 10/20/36 | 1,500,000 | 1,512,650 |
Series 2023-16A, Class D | | |
9.325% (3 Month SOFR + 4.00%), due 10/20/36 | 1,500,000 | 1,505,132 |
Palmer Square CLO Ltd. (a)(b) | |
Series 2021-4A, Class B | | |
7.24% (3 Month SOFR + 1.912%), due 10/15/34 | 2,500,000 | 2,509,892 |
Series 2024-1A, Class B | | |
7.305% (3 Month SOFR + 2.00%), due 4/15/37 | 1,250,000 | 1,251,770 |
Series 2022-2A, Class B | | |
7.525% (3 Month SOFR + 2.20%), due 7/20/34 | 2,500,000 | 2,503,225 |
Series 2021-4A, Class D | | |
8.54% (3 Month SOFR + 3.212%), due 10/15/34 | 1,500,000 | 1,504,670 |
Series 2024-1A, Class D | | |
8.705% (3 Month SOFR + 3.40%), due 4/15/37 | 1,250,000 | 1,250,445 |
Series 2021-4A, Class E | | |
11.64% (3 Month SOFR + 6.312%), due 10/15/34 | 2,500,000 | 2,500,495 |
Series 2022-2A, Class E | | |
13.155% (3 Month SOFR + 7.83%), due 7/20/34 | 2,500,000 | 2,508,227 |
Rockland Park CLO Ltd. (a)(b) | |
Series 2021-1A, Class B | | |
7.236% (3 Month SOFR + 1.912%), due 4/20/34 | 2,500,000 | 2,503,925 |
Series 2021-1A, Class E | | |
11.836% (3 Month SOFR + 6.512%), due 4/20/34 | 2,500,000 | 2,502,650 |
Sixth Street CLO XXI Ltd. (a)(b) | |
Series 2022-21A, Class B | | |
8.329% (3 Month SOFR + 3.00%), due 10/15/35 | 2,500,000 | 2,519,540 |
| Principal Amount | Value |
|
Other Asset-Backed Securities (continued) |
Sixth Street CLO XXI Ltd. (a)(b) (continued) | |
Series 2022-21A, Class D | | |
10.429% (3 Month SOFR + 5.10%), due 10/15/35 | $ 1,429,000 | $ 1,442,041 |
Total Asset-Backed Securities (Cost $80,724,982) | | 81,225,436 |
Corporate Bonds 5.8% |
Aerospace & Defense 0.1% |
Spirit AeroSystems, Inc. | | |
9.375%, due 11/30/29 (a) | 250,000 | 270,380 |
TransDigm, Inc. | | |
7.125%, due 12/1/31 (a) | 1,000,000 | 1,019,075 |
| | 1,289,455 |
Airlines 0.0% ‡ |
United Airlines, Inc. | | |
4.375%, due 4/15/26 (a) | 800,000 | 769,507 |
Auto Manufacturers 0.2% |
Ford Motor Co. | | |
6.10%, due 8/19/32 | 1,900,000 | 1,863,753 |
Ford Motor Credit Co. LLC | | |
7.35%, due 11/4/27 | 2,000,000 | 2,068,705 |
| | 3,932,458 |
Building Materials 0.2% |
JELD-WEN, Inc. (a) | | |
4.625%, due 12/15/25 | 294,000 | 286,620 |
4.875%, due 12/15/27 | 780,000 | 740,285 |
Miter Brands Acquisition Holdco, Inc. | | |
6.75%, due 4/1/32 (a) | 1,750,000 | 1,737,972 |
| | 2,764,877 |
Chemicals 0.6% |
ASP Unifrax Holdings, Inc. | | |
5.25%, due 9/30/28 (a) | 730,000 | 439,800 |
INEOS Finance plc | | |
7.50%, due 4/15/29 (a) | 1,250,000 | 1,255,814 |
INEOS Quattro Finance 2 plc | | |
9.625%, due 3/15/29 (a) | 2,330,000 | 2,461,344 |
Olympus Water US Holding Corp. | | |
9.75%, due 11/15/28 (a) | 3,500,000 | 3,713,915 |
SCIL IV LLC | | |
5.375%, due 11/1/26 (a) | 660,000 | 633,450 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Chemicals (continued) |
WR Grace Holdings LLC | | |
5.625%, due 8/15/29 (a) | $ 700,000 | $ 626,849 |
| | 9,131,172 |
Commercial Services 0.6% |
Allied Universal Holdco LLC | | |
7.875%, due 2/15/31 (a) | 1,190,000 | 1,192,628 |
Avis Budget Car Rental LLC | | |
8.00%, due 2/15/31 (a) | 2,500,000 | 2,393,566 |
Champions Financing, Inc. | | |
8.75%, due 2/15/29 (a) | 3,150,000 | 3,219,061 |
Prime Security Services Borrower LLC | | |
6.25%, due 1/15/28 (a) | 1,000,000 | 976,916 |
Sotheby's | | |
5.875%, due 6/1/29 (a) | 2,100,000 | 1,747,418 |
| | 9,529,589 |
Distribution & Wholesale 0.0% ‡ |
OPENLANE, Inc. | | |
5.125%, due 6/1/25 (a) | 400,000 | 394,000 |
Diversified Financial Services 0.7% |
GGAM Finance Ltd. (a) | | |
6.875%, due 4/15/29 | 840,000 | 839,210 |
7.75%, due 5/15/26 | 2,625,000 | 2,666,669 |
8.00%, due 2/15/27 | 1,250,000 | 1,281,086 |
Jane Street Group | | |
7.125%, due 4/30/31 (a) | 3,500,000 | 3,521,923 |
LD Holdings Group LLC | | |
6.50%, due 11/1/25 (a) | 3,500,000 | 3,321,685 |
| | 11,630,573 |
Electric 0.1% |
Vistra Operations Co. LLC | | |
5.00%, due 7/31/27 (a) | 1,500,000 | 1,427,591 |
Engineering & Construction 0.1% |
Brand Industrial Services, Inc. | | |
10.375%, due 8/1/30 (a) | 1,500,000 | 1,609,649 |
Entertainment 0.2% |
Caesars Entertainment, Inc. | | |
7.00%, due 2/15/30 (a) | 1,420,000 | 1,429,973 |
Light & Wonder International, Inc. | | |
7.00%, due 5/15/28 (a) | 1,350,000 | 1,354,687 |
| | 2,784,660 |
| Principal Amount | Value |
|
Environmental Control 0.2% |
GFL Environmental, Inc. (a) | | |
4.25%, due 6/1/25 | $ 1,200,000 | $ 1,182,583 |
4.75%, due 6/15/29 | 2,000,000 | 1,844,980 |
| | 3,027,563 |
Food 0.0% ‡ |
Post Holdings, Inc. | | |
5.50%, due 12/15/29 (a) | 240,000 | 227,603 |
US Foods, Inc. | | |
7.25%, due 1/15/32 (a) | 500,000 | 510,559 |
| | 738,162 |
Healthcare-Products 0.0% ‡ |
Medline Borrower LP | | |
5.25%, due 10/1/29 (a) | 470,000 | 437,560 |
Healthcare-Services 0.1% |
Acadia Healthcare Co., Inc. | | |
5.00%, due 4/15/29 (a) | 240,000 | 225,404 |
Fortrea Holdings, Inc. | | |
7.50%, due 7/1/30 (a) | 840,000 | 847,328 |
| | 1,072,732 |
Insurance 0.4% |
Acrisure LLC | | |
8.25%, due 2/1/29 (a) | 1,110,000 | 1,100,882 |
GTCR AP Finance, Inc. | | |
8.00%, due 5/15/27 (a) | 900,000 | 900,341 |
Panther Escrow Issuer LLC | | |
7.125%, due 6/1/31 (a) | 4,000,000 | 4,020,745 |
| | 6,021,968 |
Internet 0.1% |
Gen Digital, Inc. | | |
6.75%, due 9/30/27 (a) | 1,320,000 | 1,324,912 |
Iron & Steel 0.0% ‡ |
Carpenter Technology Corp. | | |
6.375%, due 7/15/28 | 630,000 | 626,657 |
Lodging 0.1% |
Hilton Domestic Operating Co., Inc. | | |
5.375%, due 5/1/25 (a) | 1,000,000 | 991,728 |
Machinery-Diversified 0.1% |
GrafTech Finance, Inc. | | |
4.625%, due 12/15/28 (a) | 430,000 | 276,918 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Corporate Bonds (continued) |
Machinery-Diversified (continued) |
GrafTech Global Enterprises, Inc. | | |
9.875%, due 12/15/28 (a) | $ 2,100,000 | $ 1,578,800 |
| | 1,855,718 |
Media 0.4% |
Radiate Holdco LLC | | |
4.50%, due 9/15/26 (a) | 730,000 | 557,524 |
Univision Communications, Inc. (a) | | |
6.625%, due 6/1/27 | 1,400,000 | 1,351,020 |
8.00%, due 8/15/28 | 4,456,000 | 4,450,747 |
| | 6,359,291 |
Oil & Gas 0.2% |
Civitas Resources, Inc. | | |
8.625%, due 11/1/30 (a) | 2,270,000 | 2,415,578 |
Packaging & Containers 0.3% |
Ardagh Metal Packaging Finance USA LLC | | |
4.00%, due 9/1/29 (a) | 600,000 | 494,591 |
Ardagh Packaging Finance plc | | |
5.25%, due 4/30/25 (a) | 1,000,000 | 990,196 |
Clydesdale Acquisition Holdings, Inc. | | |
8.75%, due 4/15/30 (a) | 900,000 | 869,806 |
Mauser Packaging Solutions Holding Co. | | |
7.875%, due 4/15/27 (a) | 1,500,000 | 1,528,125 |
Trident TPI Holdings, Inc. | | |
12.75%, due 12/31/28 (a) | 1,180,000 | 1,276,956 |
| | 5,159,674 |
Pharmaceuticals 0.2% |
Bausch Health Cos., Inc. | | |
5.50%, due 11/1/25 (a) | 700,000 | 652,015 |
Endo Finance Holdings, Inc. | | |
8.50%, due 4/15/31 (a) | 1,737,000 | 1,764,909 |
Organon & Co. | | |
5.125%, due 4/30/31 (a) | 1,400,000 | 1,210,582 |
| | 3,627,506 |
Pipelines 0.1% |
Global Partners LP | | |
8.25%, due 1/15/32 (a) | 1,000,000 | 1,024,418 |
NGL Energy Operating LLC | | |
8.125%, due 2/15/29 (a) | 1,000,000 | 1,015,920 |
| | 2,040,338 |
| Principal Amount | Value |
|
Real Estate 0.1% |
Realogy Group LLC | | |
5.75%, due 1/15/29 (a) | $ 1,670,000 | $ 1,165,689 |
Real Estate Investment Trusts 0.2% |
RHP Hotel Properties LP | | |
4.75%, due 10/15/27 | 300,000 | 285,101 |
7.25%, due 7/15/28 (a) | 2,100,000 | 2,132,556 |
| | 2,417,657 |
Retail 0.1% |
IRB Holding Corp. | | |
7.00%, due 6/15/25 (a) | 580,000 | 578,752 |
LBM Acquisition LLC | | |
6.25%, due 1/15/29 (a) | 2,000,000 | 1,835,929 |
| | 2,414,681 |
Software 0.3% |
Clarivate Science Holdings Corp. (a) | | |
3.875%, due 7/1/28 | 700,000 | 637,423 |
4.875%, due 7/1/29 | 700,000 | 637,488 |
Rocket Software, Inc. | | |
9.00%, due 11/28/28 (a) | 3,500,000 | 3,513,265 |
| | 4,788,176 |
Telecommunications 0.1% |
Level 3 Financing, Inc. | | |
10.50%, due 5/15/30 (a) | 731,000 | 724,364 |
Telesat Canada | | |
4.875%, due 6/1/27 (a) | 900,000 | 405,274 |
| | 1,129,638 |
Total Corporate Bonds (Cost $95,715,328) | | 92,878,759 |
Loan Assignments 84.7% |
Aerospace & Defense 2.5% |
Amentum Government Services Holdings LLC (b) | |
First Lien Tranche Term Loan 3 | |
9.315% (1 Month SOFR + 4.00%), due 2/15/29 | 4,011,875 | 4,016,890 |
First Lien Tranche Term Loan 1 | |
9.43% (1 Month SOFR + 4.00%), due 1/29/27 | 1,988,607 | 1,991,093 |
Arcline FM Holdings LLC | |
First Lien Initial Term Loan | |
10.321% (3 Month SOFR + 4.75%), due 6/23/28 (b) | 3,102,395 | 3,107,048 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Aerospace & Defense (continued) |
Asplundh Tree Expert LLC | |
Amendment No. 1 Term Loan | |
7.166% (1 Month SOFR + 1.75%), due 9/7/27 (b) | $ 3,748,626 | $ 3,749,795 |
Barnes Group, Inc. | |
2024 Refinancing Term Loan | |
7.816% (1 Month SOFR + 2.50%), due 8/30/30 (b) | 1,074,027 | 1,075,369 |
Chromalloy Corp. | |
Term Loan | |
9.058% (3 Month SOFR + 3.75%), due 3/27/31 (b) | 2,250,000 | 2,260,312 |
Cobham Ultra SeniorCo. SARL | |
USD Facility Term Loan B | |
9.012% (6 Month SOFR + 3.50%), due 8/3/29 (b) | 3,344,380 | 3,276,449 |
Dynasty Acquisition Co., Inc. (b) | |
2024 Specified Refinancing Term Loan B1 | |
8.816% (1 Month SOFR + 3.50%), due 8/24/28 | 5,185,619 | 5,209,385 |
2024 Specified Refinancing Term Loan B2 | |
8.816% (1 Month SOFR + 3.50%), due 8/24/28 | 1,999,441 | 2,008,605 |
KBR, Inc. | |
Incremental Term Loan B | |
7.566% (1 Month SOFR + 2.25%), due 1/17/31 (b) | 1,300,000 | 1,302,275 |
SkyMiles IP Ltd. | |
Initial Term Loan | |
9.075% (3 Month SOFR + 3.75%), due 10/20/27 (b) | 2,281,292 | 2,350,206 |
TransDigm, Inc. (b) | |
Tranche Term Loan I | |
8.059% (3 Month SOFR + 2.75%), due 8/24/28 | 4,991,010 | 5,016,229 |
Tranche Term Loan K | |
8.059% (3 Month SOFR + 2.75%), due 3/22/30 | 3,350,205 | 3,363,991 |
United AirLines, Inc. | |
2024 Term Loan B | |
8.076% (3 Month SOFR + 2.75%), due 2/22/31 (b) | 2,100,000 | 2,101,749 |
WestJet Airlines Ltd. | |
Term Loan | |
8.418% (1 Month SOFR + 3.00%), due 12/11/26 (b) | 381,965 | 381,897 |
| | 41,211,293 |
| Principal Amount | Value |
|
Animal Food 0.2% |
Alltech, Inc. | |
Term Loan B | |
9.43% (1 Month SOFR + 4.00%), due 10/13/28 (b) | $ 3,050,460 | $ 3,023,768 |
Automobile 1.7% |
American Auto Auction Group LLC | |
First Lien Tranche Term Loan B | |
10.459% (3 Month SOFR + 5.00%), due 12/30/27 (b) | 5,865,000 | 5,850,337 |
Autokiniton U.S. Holdings, Inc. | |
2024 Replacement Term Loan B | |
9.43% (1 Month SOFR + 4.00%), due 4/6/28 (b) | 4,023,366 | 4,040,611 |
Belron Finance 2019 LLC | |
Dollar Second Incremental Term Loan | |
7.841% (3 Month SOFR + 2.25%), due 10/30/26 (b) | 4,135,494 | 4,142,388 |
Belron Finance U.S. LLC | |
2029 Dollar Incremental Term Loan | |
7.677% (3 Month SOFR + 2.25%), due 4/18/29 (b) | 496,250 | 496,516 |
Clarios Global LP | |
First Lien 2024 Refinancing Term Loan | |
8.316% (1 Month SOFR + 3.00%), due 5/6/30 (b) | 6,412,500 | 6,425,325 |
First Brands Group LLC (b) | |
First Lien 2021 Term Loan | |
10.591% (3 Month SOFR + 5.00%), due 3/30/27 | 1,326,496 | 1,266,803 |
First Lien 2022 Incremental Term Loan II | |
10.591% (3 Month SOFR + 5.00%), due 3/30/27 | 1,197,194 | 1,144,317 |
Mavis Tire Express Services Topco Corp. | |
First Lien 2024 Initial Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 5/4/28 (b) | 598,500 | 599,697 |
Wand Newco 3, Inc. | |
First Lien 2024 Refinancing Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 1/30/31 (b) | 4,333,333 | 4,355,984 |
| | 28,321,978 |
Banking 0.8% |
Edelman Financial Engines Center LLC (The) | |
First Lien 2021 Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 4/7/28 (b) | 5,554,612 | 5,554,612 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Banking (continued) |
Jane Street Group LLC | |
2024 Repricing Term Loan | |
7.93% (1 Month SOFR + 2.50%), due 1/26/28 (b) | $ 6,649,789 | $ 6,651,172 |
| | 12,205,784 |
Beverage, Food & Tobacco 1.1% |
8th Avenue Food & Provisions, Inc. | |
First Lien Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 10/1/25 (b) | 1,847,596 | 1,775,342 |
CHG PPC Parent LLC | |
First Lien 2021-1 U.S. Term Loan | |
8.43% (1 Month SOFR + 3.00%), due 12/8/28 (b) | 4,229,067 | 4,229,067 |
Froneri International Ltd. | |
First Lien Facility Term Loan B2 | |
7.666% (1 Month SOFR + 2.25%), due 1/29/27 (b) | 2,901,938 | 2,903,473 |
H-Food Holdings LLC | |
Initial Term Loan | |
9.292% (3 Month SOFR + 3.688%), due 5/23/25 (b) | 2,440,634 | 1,651,497 |
Naked Juice LLC | |
First Lien Initial Term Loan | |
8.659% (3 Month SOFR + 3.25%), due 1/24/29 (b) | 882,708 | 850,709 |
Pegasus BidCo BV | |
2024-1 Dollar Term Loan | |
9.057% (3 Month SOFR + 3.75%), due 7/12/29 (b) | 4,345,110 | 4,353,257 |
Sotheby's | |
2021 Second Refinancing Term Loan | |
10.09% (3 Month SOFR + 4.50%), due 1/15/27 (b) | 2,228,152 | 2,169,663 |
United Natural Foods, Inc. | |
Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 10/22/25 (b) | 284,351 | 281,152 |
| | 18,214,160 |
Broadcasting & Entertainment 1.2% |
Altice France SA | |
USD Term Loan B14 | |
10.829% (3 Month SOFR + 5.50%), due 8/15/28 (b) | 6,064,865 | 4,510,744 |
| Principal Amount | Value |
|
Broadcasting & Entertainment (continued) |
CMG Media Corp. | |
First Lien 2021 Term Loan B | |
8.909% (3 Month SOFR + 3.50%), due 12/17/26 (b) | $ 5,160,117 | $ 4,347,398 |
Gray Television, Inc. (b) | |
Term Loan E | |
7.942% (1 Month SOFR + 2.50%), due 1/2/26 | 11,573 | 11,394 |
Term Loan D | |
8.442% (1 Month SOFR + 3.00%), due 12/1/28 | 2,305,874 | 2,162,045 |
Nexstar Media, Inc. | |
Term Loan B4 | |
7.93% (1 Month SOFR + 2.50%), due 9/18/26 (b) | 2,916,698 | 2,917,480 |
Univision Communications, Inc. (b) | |
First Lien Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 1/31/29 | 4,414,789 | 4,400,441 |
First Lien 2022 Incremental Term Loan | |
9.559% (3 Month SOFR + 4.25%), due 6/24/29 | 921,094 | 921,094 |
| | 19,270,596 |
Buildings & Real Estate 2.5% |
Allspring Buyer LLC | |
Initial Term Loan | |
8.824% (3 Month SOFR + 3.25%), due 11/1/28 (b) | 3,646,378 | 3,633,463 |
Beacon Roofing Supply, Inc. | |
2024 Refinancing Term Loan | |
7.316% (1 Month SOFR + 2.00%), due 5/19/28 (b) | 3,403,969 | 3,410,777 |
Core & Main LP | |
Tranche Term Loan B | |
7.918% (1 Month SOFR + 2.50%), due 7/27/28 (b) | 5,314,633 | 5,334,563 |
Cornerstone Building Brands, Inc. | |
Tranche Term Loan B | |
8.671% (1 Month SOFR + 3.25%), due 4/12/28 (b) | 6,393,100 | 6,249,256 |
Cushman & Wakefield U.S. Borrower LLC (b) | |
Replacement Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 8/21/25 | 24,078 | 24,028 |
2023-1 Refinancing Term Loan | |
8.666% (1 Month SOFR + 3.25%), due 1/31/30 | 4,085,580 | 4,085,580 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Buildings & Real Estate (continued) |
Cushman & Wakefield U.S. Borrower LLC (b) (continued) | |
2024-1 Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 1/31/30 | $ 207,813 | $ 208,072 |
SRS Distribution, Inc. (b) | |
2022 Refinancing Term Loan | |
8.666% (1 Month SOFR + 3.25%), due 6/2/28 | 1,368,500 | 1,376,369 |
2021 Refinancing Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 6/2/28 | 2,964,331 | 2,984,710 |
VC GB Holdings I Corp. | |
First Lien Initial Term Loan | |
8.571% (3 Month SOFR + 3.00%), due 7/21/28 (b) | 3,164,502 | 3,160,052 |
WEC U.S. Holdings Ltd. | |
Initial Term Loan | |
8.066% (1 Month SOFR + 2.75%), due 1/27/31 (b) | 3,963,823 | 3,965,806 |
Wilsonart LLC | |
Tranche Term Loan E | |
8.652% (3 Month SOFR + 3.25%), due 12/31/26 (b) | 5,658,413 | 5,667,845 |
| | 40,100,521 |
Capital Equipment 0.7% |
AZZ, Inc. | |
Initial Term Loan | |
8.566% (1 Month SOFR + 3.25%), due 5/13/29 (b) | 2,923,846 | 2,934,811 |
CPM Holdings, Inc. | |
Initial Term Loan | |
9.827% (1 Month SOFR + 4.50%), due 9/28/28 (b) | 2,992,500 | 2,998,377 |
Crosby U.S. Acquisition Corp. | |
Amendment No. 3 Replacement Term Loan | |
9.316% (1 Month SOFR + 4.00%), due 8/16/29 (b) | 897,750 | 903,361 |
Discovery Energy Corp. | |
USD Term Loan | |
10.079%, due 1/30/31 | 2,600,000 | 2,604,875 |
MI Windows and Doors, LLC | |
2024 Incremental Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 3/28/31 (b) | 1,636,364 | 1,643,318 |
| | 11,084,742 |
| Principal Amount | Value |
|
Chemicals 0.3% |
ASP Unifrax Holdings, Inc. | |
First Lien USD Term Loan | |
9.202% (3 Month SOFR + 3.75%), due 12/12/25 (b) | $ 2,930,412 | $ 2,836,396 |
LSF11 A5 Holdco LLC (b) | |
Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 10/15/28 | 2,276,768 | 2,275,345 |
Fourth Amendment Incremental Term Loan | |
9.666% (1 Month SOFR + 4.25%), due 10/15/28 | 446,625 | 447,090 |
| | 5,558,831 |
Chemicals, Plastics & Rubber 5.2% |
Aruba Investments Holdings LLC (b) | |
First Lien Initial Dollar Term Loan | |
9.416% (1 Month SOFR + 4.00%), due 11/24/27 | 1,278,538 | 1,238,584 |
First Lien 2022 Incremental Term Loan | |
10.066% (1 Month SOFR + 4.75%), due 11/24/27 (c)(d) | 1,481,250 | 1,444,219 |
Bakelite UK Intermediate Ltd. | |
Initial Term Loan | |
9.459% (3 Month SOFR + 4.00%), due 5/29/29 (b) | 5,101,576 | 5,124,956 |
Clydesdale Acquisition Holdings, Inc. | |
First Lien Term Loan B | |
9.091% (1 Month SOFR + 3.675%), due 4/13/29 (b) | 4,897,701 | 4,916,503 |
Herens Holdco SARL | |
USD Facility Term Loan B | |
9.334% (3 Month SOFR + 3.925%), due 7/3/28 (b) | 1,803,601 | 1,726,304 |
Ineos Quattro Holdings U.K. Ltd. (b) | |
2030 Tranche Dollar Term Loan B | |
9.166% (1 Month SOFR + 3.75%), due 3/14/30 | 1,488,750 | 1,484,098 |
2029 Tranche Dollar Term Loan B | |
9.666% (1 Month SOFR + 4.25%), due 4/2/29 | 3,479,900 | 3,464,675 |
Ineos U.S. Finance LLC (b) | |
2030 Dollar Term Loan | |
8.916% (1 Month SOFR + 3.50%), due 2/18/30 | 992,500 | 993,563 |
2027-II Dollar Term Loan | |
9.166% (1 Month SOFR + 3.75%), due 11/8/27 | 2,339,533 | 2,340,368 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Chemicals, Plastics & Rubber (continued) |
Innophos Holdings, Inc. | |
Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 2/5/27 (b) | $ 5,309,081 | $ 5,300,789 |
Jazz Pharmaceuticals plc | |
Additional Dollar Tranche Term Loan B1 | |
8.43% (1 Month SOFR + 3.00%), due 5/5/28 (b) | 7,134,569 | 7,174,209 |
Koppers, Inc. | |
Incremental Term Loan B1 | |
8.32% (1 Month SOFR + 3.00%), due 4/10/30 (b) | 4,466,306 | 4,471,889 |
Nouryon Finance BV (b) | |
Extended Dollar Term Loan | |
9.419% (3 Month SOFR + 4.00%), due 4/3/28 | 6,397,799 | 6,407,127 |
2023 Term Loan | |
9.423% (1 Month SOFR + 4.00%), due 4/3/28 | 1,240,625 | 1,242,563 |
Olympus Water U.S. Holding Corp. | |
Initial Dollar Term Loan | |
9.321% (3 Month SOFR + 3.75%), due 11/9/28 (b) | 2,663,478 | 2,666,807 |
OQ Chemicals International Holding GmbH | |
Tranche Term Loan B2 | |
8.906% (3 Month SOFR + 3.50%), due 10/14/24 (b) | 3,390,410 | 3,106,463 |
PMHC II, Inc. | |
Initial Term Loan | |
9.706% (3 Month SOFR + 4.25%), due 4/23/29 (b) | 5,910,000 | 5,817,319 |
SCIH Salt Holdings, Inc. | |
First Lien Incremental Term Loan B1 | |
9.442% (1 Month SOFR + 4.00%), due 3/16/27 (b) | 6,208,626 | 6,213,059 |
Sparta U.S. Holdco LLC | |
First Lien Initial Term Loan | |
8.693% (1 Month SOFR + 3.25%), due 8/2/28 (b) | 2,052,750 | 2,056,856 |
Tricorbraun Holdings, Inc. | |
First Lien Closing Date Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 3/3/28 (b) | 5,791,344 | 5,723,174 |
Tronox Finance LLC | |
First Lien 2022 Incremental Term Loan | |
8.552% (3 Month SOFR + 3.25%), due 4/4/29 (b) | 2,527,733 | 2,529,313 |
| Principal Amount | Value |
|
Chemicals, Plastics & Rubber (continued) |
W. R. Grace Holdings LLC | |
Initial Term Loan | |
9.321% (3 Month SOFR + 3.75%), due 9/22/28 (b) | $ 3,421,250 | $ 3,421,250 |
Windsor Holdings III LLC | |
2024 Dollar Refinancing Term Loan B | |
9.319% (1 Month SOFR + 4.00%), due 8/1/30 (b) | 4,977,525 | 5,014,856 |
| | 83,878,944 |
Commercial Services 0.3% |
Prime Security Services Borrower LLC | |
First Lien 2024 Refinancing Term Loan B1 | |
7.579% (3 Month SOFR + 2.25%), due 10/13/30 (b) | 4,987,500 | 4,994,627 |
Consumer Durables 0.2% |
SWF Holdings I Corp. | |
First Lien Initial Term Loan | |
9.43% (1 Month SOFR + 4.00%), due 10/6/28 (b) | 4,787,189 | 4,037,194 |
Containers, Packaging & Glass 3.0% |
Alliance Laundry Systems LLC | |
Initial Term Loan B 8.899% - 8.921% | |
(1 Month SOFR + 3.50%, 3 Month SOFR + 3.50%), due 10/8/27 (b) | 4,564,536 | 4,577,659 |
Altium Packaging LLC | |
First Lien 2021 Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 2/3/28 (b) | 2,992,553 | 3,000,450 |
Anchor Glass Container Corp. | |
First Lien August 2023 Extended Term Loan 10.571% - 10.827% | |
(3 Month SOFR + 5.00%, 6 Month SOFR + 5.00%), due 12/7/25 (b) | 2,623,947 | 2,129,771 |
Berlin Packaging LLC (b) | |
Tranche Initial Term Loan B4 8.564% - 8.69% | |
(1 Month SOFR + 3.25%, 3 Month SOFR + 3.25%), due 3/11/28 | 3,880,017 | 3,856,306 |
Tranche Term Loan B5 9.178% - 9.321% | |
(1 Month SOFR + 3.75%, 3 Month SOFR + 3.75%), due 3/11/28 | 1,053,000 | 1,053,263 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Containers, Packaging & Glass (continued) |
Charter Next Generation, Inc. | |
First Lien 2024 Initial Term Loan | |
8.816% (1 Month SOFR + 3.50%), due 12/1/27 (b) | $ 5,973,309 | $ 5,994,012 |
Flint Group Packaging Inks North America Holdings LLC (b)(e) | |
First Lien USD Facility Term Loan B | |
5.688% (6.90% PIK) (3 Month SOFR + 0.10%), due 12/31/27 | 439,254 | 358,358 |
Second Lien USD Facility Term Loan B | |
5.688% (6.90% PIK) (3 Month SOFR + 0.10%), due 12/31/27 | 585,768 | 79,079 |
USD Facility Term Loan B | |
9.838% (0.75% PIK) (3 Month SOFR + 4.25%), due 12/31/26 | 849,319 | 806,145 |
Graham Packaging Co., Inc. | |
2021 Initial Term Loan | |
8.43% (1 Month SOFR + 3.00%), due 8/4/27 (b) | 4,298,966 | 4,307,250 |
Mauser Packaging Solutions Holding Co. | |
Term Loan B | |
9.315% (1 Month SOFR + 4.00%), due 4/15/27 (b) | 181,500 | 181,500 |
Pactiv Evergreen, Inc. (b) | |
Tranche U.S. Term Loan B2 | |
8.68% (1 Month SOFR + 3.25%), due 2/5/26 | 1,729,178 | 1,736,450 |
Tranche U.S. Term Loan B3 | |
8.68% (1 Month SOFR + 3.25%), due 9/24/28 | 975,000 | 979,764 |
Pretium PKG Holdings, Inc. (b) | |
First Lien Initial Third Amendment Tranche Term Loan A1 | |
9.906% (1.403% PIK) (3 Month SOFR + 4.60%), due 10/2/28 (e) | 3,400,306 | 2,994,395 |
First Lien Third Amendment Tranche Term Loan A | |
10.306% (2.50% PIK) (3 Month SOFR + 5.00%), due 10/2/28 (e) | 2,090,698 | 2,116,831 |
Second Lien Initial Term Loan | |
12.334% (3 Month SOFR + 6.75%), due 10/1/29 (c) | 1,750,000 | 1,041,250 |
| Principal Amount | Value |
|
Containers, Packaging & Glass (continued) |
ProAmpac PG Borrower LLC | |
2024-1 Refinancing Term Loan 9.321% - 9.329% | |
(1 Month SOFR + 4.00%, 3 Month SOFR + 4.00%), due 9/15/28 (b) | $ 3,158,750 | $ 3,167,964 |
Reynolds Consumer Products LLC | |
Initial Term Loan | |
7.166% (1 Month SOFR + 1.75%), due 2/4/27 (b) | 114,198 | 114,478 |
RLG Holdings LLC | |
First Lien Closing Date Initial Term Loan | |
9.68% (1 Month SOFR + 4.25%), due 7/7/28 (b) | 4,887,500 | 4,840,663 |
Trident TPI Holdings, Inc. (b) | |
Initial Tranche Term Loan B6 | |
9.302% (3 Month SOFR + 4.00%), due 9/15/28 | 965,690 | 966,897 |
Tranche Initial Term Loan B3 | |
9.571% (3 Month SOFR + 4.00%), due 9/15/28 | 3,679,729 | 3,680,303 |
Tranche Incremental Term Loan B4 | |
10.559% (3 Month SOFR + 5.25%), due 9/15/28 | 395,000 | 395,412 |
| | 48,378,200 |
Diversified/Conglomerate Manufacturing 2.1% |
Allied Universal Holdco LLC (b) | |
Initial U.S. Dollar Term Loan | |
9.166% (1 Month SOFR + 3.75%), due 5/12/28 | 5,946,115 | 5,945,289 |
Amendment No. 3 Term Loan | |
10.066% (1 Month SOFR + 4.75%), due 5/12/28 | 2,985,000 | 2,988,731 |
Filtration Group Corp. (b) | |
2021 Incremental Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 10/21/28 | 2,939,698 | 2,943,373 |
2023 Extended Dollar Term Loan | |
9.68% (1 Month SOFR + 4.25%), due 10/21/28 | 2,743,105 | 2,754,371 |
Gardner Denver, Inc. | |
2020 GDI Tranche Dollar Term Loan B2 | |
7.166% (1 Month SOFR + 1.75%), due 3/1/27 (b) | 3,291,653 | 3,296,514 |
GYP Holdings III Corp. | |
First Lien 2024 Refinancing Term Loan | |
7.566% (1 Month SOFR + 2.25%), due 5/12/30 (b) | 567,937 | 568,410 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Diversified/Conglomerate Manufacturing (continued) |
Ingersoll-Rand Services Co. | |
2020 Spinco Tranche Dollar Term Loan B1 | |
7.166% (1 Month SOFR + 1.75%), due 3/1/27 (b) | $ 157,660 | $ 157,893 |
Iron Mountain Information Management LLC | |
Incremental Term Loan B | |
7.18% (1 Month LIBOR + 1.75%), due 1/2/26 (b) | 3,160,601 | 3,151,382 |
LTI Holdings, Inc. (b) | |
First Lien Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 9/6/25 | 1,275,715 | 1,261,164 |
First Lien First Amendment Additional Term Loan | |
10.18% (1 Month SOFR + 4.75%), due 7/24/26 | 1,710,257 | 1,689,412 |
Quikrete Holdings, Inc. | |
First Lien Tranche Term Loan B1 | |
7.819% (1 Month SOFR + 2.50%), due 4/14/31 (b) | 4,946,944 | 4,949,264 |
Red Ventures LLC | |
First Lien Term Loan B4 | |
8.316% (1 Month SOFR + 3.00%), due 3/3/30 (b) | 4,115,960 | 4,115,960 |
| | 33,821,763 |
Diversified/Conglomerate Service 2.1% |
Applied Systems, Inc. | |
First Lien 2024 Initial Term Loan | |
8.809% (3 Month SOFR + 3.50%), due 2/24/31 (b) | 5,437,819 | 5,473,502 |
Blackhawk Network Holdings, Inc. | |
First Lien Additional Term Loan B1 | |
10.316% (1 Month SOFR + 5.00%), due 3/12/29 (b) | 5,000,000 | 5,010,940 |
Brightview Landscapes LLC | |
2022 Initial Term Loan | |
8.33% (3 Month SOFR + 3.00%), due 4/20/29 (b) | 880,595 | 881,695 |
Element Materials Technology Group U.S. Holdings, Inc. (b) | |
Initial USD Term Loan B | |
9.659% (3 Month SOFR + 4.25%), due 7/6/29 | 1,891,842 | 1,896,572 |
First Lien Delayed Draw Term Loan B | |
9.659% (3 Month SOFR + 4.25%), due 7/6/29 | 873,158 | 875,341 |
| Principal Amount | Value |
|
Diversified/Conglomerate Service (continued) |
Genesys Cloud Services Holdings I LLC (b) | |
2024 Incremental No. 2 Dollar Term Loan | |
8.816% (1 Month SOFR + 3.50%), due 12/1/27 | $ 5,739,577 | $ 5,761,100 |
2024 Incremental Dollar Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 12/1/27 | 1,197,000 | 1,203,484 |
MKS Instruments, Inc. | |
2023-1 Dollar Term Loan B | |
7.823% (1 Month SOFR + 2.50%), due 8/17/29 (b) | 6,589,477 | 6,592,225 |
TruGreen LP | |
First Lien Second Refinancing Term Loan | |
9.416% (1 Month SOFR + 4.00%), due 11/2/27 (b) | 6,285,206 | 6,036,941 |
| | 33,731,800 |
Ecological 0.2% |
GFL Environmental, Inc. | |
2023 Refinancing Term Loan A | |
7.826% (3 Month SOFR + 2.50%), due 5/31/27 (b) | 3,004,568 | 3,014,898 |
Electronics 5.9% |
Camelot U.S. Acquisition LLC | |
Amendment No. 6 Refinancing Term Loan | |
8.066% (1 Month SOFR + 2.75%), due 1/31/31 (b) | 6,116,603 | 6,122,720 |
Castle U.S. Holding Corp. (b) | |
Initial Dollar Term Loan | |
9.349% (3 Month SOFR + 3.75%), due 1/29/27 | 218,106 | 150,711 |
Dollar Term Loan B2 | |
9.599% (3 Month SOFR + 4.00%), due 1/29/27 | 4,875,000 | 3,363,750 |
Commscope, Inc. | |
Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 4/6/26 (b) | 6,091,260 | 5,345,080 |
CoreLogic, Inc. | |
First Lien Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 6/2/28 (b) | 6,381,799 | 6,137,166 |
DCert Buyer, Inc. | |
First Lien Initial Term Loan | |
9.316% (1 Month SOFR + 4.00%), due 10/16/26 (b) | 5,320,120 | 5,299,590 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Electronics (continued) |
Eci Macola LLC | |
First Lien 2024 Extended Term Loan | |
9.052% (3 Month SOFR + 3.75%), due 5/9/30 (b) | $ 3,386,250 | $ 3,398,948 |
Epicor Software Corp. (b) | |
Term Loan C | |
8.68% (1 Month SOFR + 3.25%), due 7/30/27 | 6,075,896 | 6,097,988 |
Term Loan D | |
9.066% (1 Month SOFR + 3.75%), due 7/30/27 | 1,246,875 | 1,253,109 |
Flexera Software LLC | |
First Lien Term Loan B1 | |
9.18% (1 Month SOFR + 3.75%), due 3/3/28 (b) | 4,684,085 | 4,693,285 |
Gainwell Acquisition Corp. | |
First Lien Term Loan B | |
9.409% (3 Month SOFR + 4.00%), due 10/1/27 (b) | 5,504,347 | 5,238,305 |
Helios Software Holdings, Inc. | |
2021 Initial Dollar Term Loan | |
9.202% (3 Month SOFR + 3.75%), due 3/11/28 (b) | 1,403,009 | 1,399,282 |
ION Trading Finance Ltd. | |
2021 Initial Dollar Term Loan | |
10.152% (3 Month SOFR + 4.75%), due 4/1/28 (b) | 3,890,000 | 3,889,191 |
MH Sub I LLC | |
First Lien 2023 May Incremental Term Loan | |
9.566% (1 Month SOFR + 4.25%), due 5/3/28 (b) | 6,717,510 | 6,688,121 |
Project Alpha Intermediate Holding, Inc. | |
Initial Term Loan | |
10.08% (3 Month SOFR + 4.75%), due 10/28/30 (b) | 6,500,000 | 6,515,347 |
Proofpoint, Inc. | |
First Lien Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 8/31/28 (b) | 5,444,453 | 5,462,148 |
Rocket Software, Inc. | |
Extended Dollar Term Loan | |
10.066% (1 Month SOFR + 4.75%), due 11/28/28 (b) | 5,145,606 | 5,107,014 |
Sharp Services LLC | |
First Lien Tranche Term Loan C | |
9.052% (3 Month SOFR + 3.75%), due 12/31/28 (b) | 5,096,202 | 5,108,943 |
| Principal Amount | Value |
|
Electronics (continued) |
Sophos Holdings SARL | |
First Lien Dollar Tranche Term Loan | |
8.933% (1 Month SOFR + 3.50%), due 3/5/27 (b) | $ 2,941,973 | $ 2,946,754 |
SS&C Technologies Holdings, Inc. (b) | |
Term Loan B6 | |
7.666% (1 Month SOFR + 2.25%), due 3/22/29 | 781,464 | 782,140 |
Term Loan B7 | |
7.666% (1 Month SOFR + 2.25%), due 3/22/29 | 1,847,009 | 1,848,606 |
Vertiv Group Corp. | |
Term Loan B1 | |
7.943% (1 Month SOFR + 2.50%), due 3/2/27 (b) | 5,764,106 | 5,780,678 |
VS Buyer LLC | |
2024 Refinancing Initial Term Loan | |
8.569% (1 Month SOFR + 3.25%), due 4/12/31 (b) | 3,571,885 | 3,580,814 |
| | 96,209,690 |
Energy (Electricity) 0.3% |
Covanta Holding Corp. (b) | |
Initial Term Loan B | |
7.816% (1 Month SOFR + 2.50%), due 11/30/28 | 4,011,512 | 4,009,362 |
Initial Term Loan C | |
7.816% (1 Month SOFR + 2.50%), due 11/30/28 | 306,620 | 306,456 |
Vistra Zero Operating Co. LLC | |
Initial Term Loan | |
8.068% (1 Month SOFR + 2.75%), due 4/30/31 (b) | 700,000 | 701,663 |
| | 5,017,481 |
Entertainment 1.1% |
Alterra Mountain Co. | |
Add-on Term Loan B | |
TBD, due 5/31/30 | 1,800,000 | 1,811,250 |
Term Loan B4 | |
8.577% (1 Month SOFR + 3.25%), due 8/17/28 (b) | 4,718,631 | 4,736,326 |
Term Loan B5 | |
8.827% (1 Month SOFR + 3.50%), due 5/31/30 (b) | 496,250 | 499,352 |
Fertitta Entertainment LLC | |
Initial Term Loan B | |
9.069% (1 Month SOFR + 3.75%), due 1/27/29 (b) | 4,926,048 | 4,935,900 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Entertainment (continued) |
Formula One Management Ltd. | |
First Lien Facility Term Loan B | |
7.559% (3 Month SOFR + 2.25%), due 1/15/30 (b) | $ 984,615 | $ 984,820 |
J&J Ventures Gaming LLC | |
Initial Term Loan | |
9.43% (1 Month SOFR + 4.00%), due 4/26/28 (b) | 5,342,803 | 5,318,760 |
| | 18,286,408 |
Finance 7.3% |
AAdvantage Loyality IP Ltd. | |
Initial Term Loan | |
10.336% (3 Month SOFR + 4.75%), due 4/20/28 (b) | 4,960,000 | 5,154,457 |
Acuris Finance U.S., Inc. | |
Initial Dollar Term Loan | |
9.452% (3 Month SOFR + 4.00%), due 2/16/28 (b) | 5,647,135 | 5,645,724 |
ADMI Corp. (b) | |
Amendment No.4 Refinancing Term Loan | |
8.805% (1 Month SOFR + 3.375%), due 12/23/27 | 2,425,000 | 2,331,637 |
Amendment No. 5 Incremental Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 12/23/27 | 3,656,250 | 3,523,711 |
Ahlstrom-Munksjo Holding 3 Oy | |
USD Facility Term Loan B | |
9.571% (3 Month SOFR + 4.00%), due 2/4/28 (b) | 3,105,309 | 3,101,427 |
AlixPartners LLP | |
Initial Dollar Term Loan | |
7.93% (1 Month SOFR + 2.50%), due 2/4/28 (b) | 3,340,745 | 3,348,054 |
Blackstone Mortgage Trust, Inc. | |
Term Loan B4 | |
8.816% (1 Month SOFR + 3.50%), due 5/9/29 (b) | 124,618 | 120,412 |
Blue Tree Holdings, Inc. | |
Term Loan | |
8.064% (3 Month SOFR + 2.50%), due 3/4/28 (b) | 1,455,000 | 1,450,756 |
Boost Newco Borrower LLC | |
Initial USD Term Loan | |
8.309% (3 Month SOFR + 3.00%), due 1/31/31 (b) | 5,000,000 | 5,013,280 |
| Principal Amount | Value |
|
Finance (continued) |
Boxer Parent Co., Inc. | |
2028 Extended Dollar Term Loan | |
9.566% (1 Month SOFR + 4.25%), due 12/29/28 (b) | $ 6,336,567 | $ 6,371,361 |
Covia Holdings LLC | |
Initial Term Loan | |
9.568% (3 Month SOFR + 4.00%), due 7/31/26 (b) | 837,917 | 834,146 |
CPC Acquisition Corp. | |
First Lien Initial Term Loan | |
9.321% (3 Month SOFR + 3.75%), due 12/29/27 (b) | 3,770,462 | 3,176,614 |
Deerfield Dakota Holding LLC | |
First Lien Initial Dollar Term Loan | |
9.059% (3 Month SOFR + 3.75%), due 4/9/27 (b) | 5,269,041 | 5,259,820 |
Endurance International Group Holdings, Inc. | |
Initial Term Loan | |
8.939% (1 Month SOFR + 3.50%), due 2/10/28 (b) | 5,588,878 | 5,396,760 |
LBM Acquisition LLC | |
First Lien Initial Term Loan | |
9.166% (1 Month SOFR + 3.75%), due 12/17/27 (b) | 4,447,879 | 4,448,991 |
LSF11 Trinity Bidco, Inc. | |
Initial Term Loan | |
9.315% (1 Month SOFR + 4.00%), due 6/14/30 (b) | 3,668,618 | 3,691,547 |
Minimax Viking GmbH | |
Facility Term Loan B1D | |
8.18% (1 Month SOFR + 2.75%), due 7/31/28 (b) | 4,022,789 | 4,029,495 |
Onex TSG Intermediate Corp. | |
Initial Term Loan | |
10.341% (3 Month SOFR + 4.75%), due 2/28/28 (b) | 2,897,653 | 2,887,995 |
Park River Holdings, Inc. | |
First Lien Initial Term Loan | |
8.814% (3 Month SOFR + 3.25%), due 12/28/27 (b) | 4,506,665 | 4,446,578 |
Peraton Corp. | |
First Lien Term Loan B | |
9.166% (1 Month SOFR + 3.75%), due 2/1/28 (b) | 4,942,823 | 4,941,059 |
Pluto Acquisition I, Inc. (b) | |
Tranche Term Loan B | |
9.316% (3 Month SOFR + 4.00%), due 9/20/28 | 3,728,575 | 3,281,146 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Finance (continued) |
Pluto Acquisition I, Inc. (b) (continued) | |
Tranche Term Loan A | |
10.687% (6 Month SOFR + 5.50%), due 6/20/28 | $ 1,860,294 | $ 1,874,246 |
Potters Industries LLC | |
2024 Incremental Term Loan | |
9.047% (3 Month SOFR + 3.75%), due 12/14/27 (b) | 1,524,000 | 1,530,668 |
RealPage, Inc. | |
First Lien Initial Term Loan | |
8.43% (1 Month SOFR + 3.00%), due 4/24/28 (b) | 4,764,987 | 4,588,683 |
RealTruck Group, Inc. | |
Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 1/31/28 (b) | 5,854,060 | 5,799,699 |
Russell Investments US Institutional Holdco, Inc. | |
Term Loan | |
10.33% (3 Month SOFR + 5.00%), due 5/30/27 (b) | 5,618,486 | 5,056,637 |
Triton Water Holdings, Inc. | |
First Lien Initial Term Loan | |
8.814% (3 Month SOFR + 3.25%), due 3/31/28 (b) | 3,782,179 | 3,763,268 |
WCG Purchaser Corp. | |
First Lien Initial Term Loan | |
9.43% (1 Month SOFR + 4.00%), due 1/8/27 (b) | 6,384,628 | 6,400,590 |
WildBrain Ltd. | |
Initial Term Loan | |
9.68% (1 Month SOFR + 4.25%), due 3/24/28 (b) | 5,441,257 | 5,223,607 |
WIN Waste Innovations Holdings, Inc. | |
Initial Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 3/24/28 (b) | 6,252,580 | 5,889,580 |
| | 118,581,948 |
Healthcare 2.1% |
AHP Health Partners, Inc. | |
Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 8/24/28 (b) | 1,950,000 | 1,952,925 |
Chariot Buyer LLC (b) | |
First Lien Initial Term Loan | |
8.666% (1 Month SOFR + 3.25%), due 11/3/28 | 5,043,629 | 5,033,724 |
| Principal Amount | Value |
|
Healthcare (continued) |
Chariot Buyer LLC (b) (continued) | |
First Lien Amendment No. 2 Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 11/3/28 | $ 3,000,000 | $ 3,003,000 |
CHG Healthcare Services, Inc. | |
First Lien Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 9/29/28 (b) | 6,052,331 | 6,063,261 |
ICU Medical, Inc. | |
Tranche Term Loan B | |
7.952% (3 Month SOFR + 2.50%), due 1/8/29 (b) | 4,282,303 | 4,276,950 |
LSCS Holdings, Inc. | |
First Lien Initial Term Loan | |
9.93% (1 Month SOFR + 4.50%), due 12/16/28 (b) | 4,692,000 | 4,621,620 |
Medical Solutions Holdings, Inc. | |
First Lien Initial Term Loan | |
8.666% (1 Month SOFR + 3.25%), due 11/1/28 (b) | 2,017,675 | 1,781,439 |
Medline Borrower LP | |
Refinancing Term Loan | |
8.068% (1 Month SOFR + 2.75%), due 10/23/28 (b) | 4,788,879 | 4,800,603 |
U.S. Anesthesia Partners, Inc. | |
First Lien Initial Term Loan | |
9.678% (1 Month SOFR + 4.25%), due 10/1/28 (b) | 1,890,608 | 1,825,854 |
| | 33,359,376 |
Healthcare & Pharmaceuticals 1.3% |
Bausch & Lomb Corp. | |
Initial Term Loan | |
8.669% (1 Month SOFR + 3.25%), due 5/10/27 (b) | 4,895,138 | 4,861,484 |
Bausch Health Cos., Inc. | |
Second Amendment Term Loan | |
10.668% (1 Month SOFR + 5.25%), due 2/1/27 (b) | 2,596,192 | 2,173,384 |
Embecta Corp. | |
First Lien Initial Term Loan | |
8.316% (1 Month SOFR + 3.00%), due 3/30/29 (b) | 6,295,435 | 5,505,131 |
Owens & Minor, Inc. | |
Term Loan B1 | |
9.166% (1 Month SOFR + 3.75%), due 3/29/29 (b) | 3,436,667 | 3,454,922 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Healthcare & Pharmaceuticals (continued) |
Pediatric Associates Holding Co. LLC | |
Amendment No. 1 Incremental Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 12/29/28 (b) | $ 3,308,402 | $ 2,973,426 |
Physician Partners LLC | |
Initial Term Loan | |
9.564% (6 Month SOFR + 4.00%), due 12/23/28 (b) | 2,557,726 | 1,772,139 |
Surgery Center Holdings, Inc. | |
Initial Term Loan | |
8.815% (1 Month SOFR + 3.50%), due 12/19/30 (b) | 537,500 | 540,371 |
| | 21,280,857 |
Healthcare, Education & Childcare 4.0% |
Agiliti Health, Inc. | |
Term Loan | |
8.302% (3 Month SOFR + 3.00%), due 5/1/30 (b) | 7,839,883 | 7,834,982 |
Amneal Pharmaceuticals LLC | |
Initial Term Loan | |
10.816% (1 Month SOFR + 5.50%), due 5/4/28 (b) | 6,845,216 | 6,832,381 |
athenahealth Group, Inc. | |
Initial Term Loan | |
8.566% (1 Month SOFR + 3.25%), due 2/15/29 (b) | 4,798,396 | 4,773,406 |
Carestream Dental Technology Parent Ltd. (b) | |
First Lien Initial Term Loan | |
8.559% (3 Month LIBOR + 3.25%), due 9/1/24 | 1,382,762 | 1,135,593 |
First Lien Tranche Term Loan B | |
9.909% (3 Month SOFR + 4.50%), due 9/1/24 | 1,834,678 | 1,507,495 |
Carestream Health, Inc. | |
Term Loan | |
12.909% (3 Month SOFR + 7.50%), due 9/30/27 (b) | 2,487,687 | 2,230,366 |
Ecovyst Catalyst Technologies LLC | |
Initial Term Loan | |
7.93% (3 Month SOFR + 2.50%), due 6/9/28 (b) | 3,432,556 | 3,426,656 |
Elanco Animal Health, Inc. | |
Term Loan | |
7.177% (1 Month SOFR + 1.75%), due 8/1/27 (b) | 2,596,327 | 2,589,586 |
| Principal Amount | Value |
|
Healthcare, Education & Childcare (continued) |
FC Compassus LLC | |
Term Loan B1 | |
9.683% (1 Month SOFR + 4.25%), due 12/31/26 (b)(c) | $ 5,239,619 | $ 5,123,363 |
Grifols Worldwide Operations Ltd. | |
Dollar Tranche Term Loan B | |
7.459% (3 Month SOFR + 2.00%), due 11/15/27 (b) | 1,716,101 | 1,677,011 |
Insulet Corp. | |
2024 Incremental Term Loan | |
8.316% (1 Month SOFR + 3.00%), due 5/4/28 (b) | 4,436,194 | 4,448,668 |
Journey Personal Care Corp. | |
Initial Term Loan | |
9.68% (1 Month SOFR + 4.25%), due 3/1/28 (b) | 3,870,153 | 3,841,127 |
Mallinckrodt International Finance SA | |
Second Out Term Loan | |
14.819% (1 Month SOFR + 9.50%), due 11/14/28 (b) | 916,206 | 997,902 |
National Mentor Holdings, Inc. (b) | |
First Lien Initial Term Loan 9.159% - 9.166% | |
(1 Month SOFR + 3.75%, 3 Month SOFR + 3.75%), due 3/2/28 | 2,131,402 | 1,935,579 |
First Lien Initial Term Loan C | |
9.159% (3 Month SOFR + 3.75%), due 3/2/28 | 79,651 | 72,333 |
Organon & Co. | |
Dollar Term Loan | |
8.433% (1 Month SOFR + 3.00%), due 6/2/28 (b) | 5,594,676 | 5,615,656 |
Petco Health and Wellness Co., Inc. | |
First Lien Initial Term Loan | |
8.821% (3 Month SOFR + 3.25%), due 3/3/28 (b) | 4,034,215 | 3,473,838 |
Raptor Acquisition Corp. | |
First Lien Term Loan B | |
9.59% (3 Month SOFR + 4.00%), due 11/1/26 (b) | 4,175,625 | 4,187,108 |
Select Medical Corp. | |
Tranche Term Loan B1 | |
8.316% (1 Month SOFR + 3.00%), due 3/6/27 (b) | 2,254,515 | 2,257,333 |
Sound Inpatient Physicians, Inc. | |
First Lien Initial Term Loan | |
8.591% (3 Month SOFR + 3.00%), due 6/27/25 (b)(c) | 1,885,000 | 1,065,025 |
| | 65,025,408 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
High Tech Industries 2.5% |
Altar BidCo, Inc. | |
First Lien Initial Term Loan | |
7.947% (1 Year SOFR + 3.10%), due 2/1/29 (b) | $ 4,041,676 | $ 4,035,900 |
AP Gaming I LLC | |
Term Loan B | |
9.052% (3 Month SOFR + 3.75%), due 2/15/29 (b) | 5,564,493 | 5,575,622 |
Central Parent LLC | |
First Lien 2023 Refinancing Term Loan | |
9.309% (3 Month SOFR + 4.00%), due 7/6/29 (b) | 2,000,000 | 2,006,924 |
Hanesbands, Inc. | |
Tranche Initial Term Loan B | |
9.066% (1 Month SOFR + 3.75%), due 3/8/30 (b) | 3,465,000 | 3,465,000 |
Modena Buyer LLC | |
Term Loan | |
TBD, due 4/18/31 | 3,500,000 | 3,430,000 |
NAB Holdings LLC | |
Initial Term Loan | |
8.209% (3 Month SOFR + 2.75%), due 11/23/28 (b) | 1,419,443 | 1,417,964 |
Nielsen Consumer, Inc. | |
Fifth Amendment Dollar Incremental Term Loan | |
11.566% (1 Month SOFR + 6.25%), due 3/6/28 (b) | 1,819,583 | 1,810,485 |
Open Text Corp. | |
2023 Replacement Term Loan | |
8.166% (1 Month SOFR + 2.75%), due 1/31/30 (b) | 4,195,497 | 4,206,640 |
Polaris Purchaser, Inc. | |
Initial Term Loan | |
9.841% (3 Month SOFR + 4.50%), due 3/3/31 (b) | 3,900,000 | 3,919,500 |
Scientific Games Holdings LP | |
First Lien Initial Dollar Term Loan | |
8.556% (3 Month SOFR + 3.25%), due 4/4/29 (b) | 4,280,962 | 4,278,667 |
Star Parent, Inc. | |
Term Loan | |
9.309% (3 Month SOFR + 4.00%), due 9/27/30 (b) | 4,500,000 | 4,496,252 |
| Principal Amount | Value |
|
High Tech Industries (continued) |
Trans Union LLC | |
2024 Replacement Term Loan B7 | |
7.316% (1 Month SOFR + 2.00%), due 12/1/28 (b) | $ 1,691,353 | $ 1,692,411 |
| | 40,335,365 |
Hotel, Gaming & Leisure 0.5% |
Flutter Entertainment plc | |
Term Loan B | |
7.559% (3 Month SOFR + 2.25%), due 11/25/30 (b) | 2,992,500 | 2,994,370 |
Hilton Domestic Operating Co., Inc. | |
Term Loan B4 | |
7.417% (1 Month SOFR + 2.00%), due 11/8/30 (b) | 1,720,157 | 1,723,024 |
Ontario Gaming GTA LP | |
First Lien Term Loan B | |
9.559% (3 Month SOFR + 4.25%), due 8/1/30 (b) | 2,327,500 | 2,337,974 |
Tacala Investment Corp. | |
First Lien Initial Term Loan | |
9.316% (1 Month SOFR + 4.00%), due 1/31/31 (b) | 600,000 | 603,375 |
| | 7,658,743 |
Hotels, Motels, Inns & Gaming 3.7% |
Aimbridge Acquisition Co., Inc. | |
First Lien 2019 Initial Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 2/2/26 (b) | 3,290,209 | 3,183,961 |
Caesars Entertainment, Inc. (b) | |
Incremental Term Loan B1 | |
8.066% (1 Month SOFR + 2.75%), due 2/6/31 | 2,100,000 | 2,100,437 |
2023 Incremental Term Loan B | |
8.666% (1 Month SOFR + 3.25%), due 2/6/30 | 2,079,000 | 2,080,299 |
Entain plc (b) | |
USD Facility Term Loan B | |
7.909% (3 Month SOFR + 2.50%), due 3/29/27 | 4,688,928 | 4,687,254 |
USD Facility Term Loan B2 | |
8.909% (3 Month SOFR + 3.50%), due 10/31/29 | 1,580,013 | 1,582,647 |
Everi Holdings, Inc. | |
Term Loan B | |
7.93% (1 Month SOFR + 2.50%), due 8/3/28 (b) | 3,997,413 | 4,004,285 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Hotels, Motels, Inns & Gaming (continued) |
Four Seasons Holdings, Inc. | |
First Lien 2024 Repricing Term Loan | |
7.316% (1 Month SOFR + 2.00%), due 11/30/29 (b) | $ 1,419,803 | $ 1,419,093 |
Golden Entertainment, Inc. | |
First Lien 2023 Refinancing Facility Term Loan B1 | |
8.168% (1 Month SOFR + 2.75%), due 5/28/30 (b) | 868,438 | 868,438 |
Light & Wonder International, Inc. | |
Term Loan B1 | |
8.071% (1 Month SOFR + 2.75%), due 4/14/29 (b) | 5,902,594 | 5,905,545 |
Oceankey U.S. II Corp. | |
Initial Term Loan | |
8.916% (1 Month SOFR + 3.50%), due 12/15/28 (b) | 3,533,413 | 3,505,439 |
PCI Gaming Authority | |
Facility Term Loan B | |
7.93% (1 Month SOFR + 2.50%), due 5/29/26 (b) | 1,370,300 | 1,372,226 |
Penn Entertainment, Inc. | |
Facility Term Loan B | |
8.166% (1 Month SOFR + 2.75%), due 5/3/29 (b) | 1,965,000 | 1,964,776 |
Station Casinos LLC | |
Facility Term Loan B | |
7.566% (1 Month SOFR + 2.25%), due 3/14/31 (b) | 6,000,000 | 5,997,498 |
Travel + Leisure Co. (b) | |
Term Loan B | |
7.68% (1 Month SOFR + 2.25%), due 5/30/25 | 3,780,000 | 3,772,913 |
2023 Incremental Term Loan | |
8.665% (1 Month SOFR + 3.25%), due 12/14/29 | 1,496,250 | 1,498,587 |
UFC Holdings LLC | |
First Lien Term Loan B3 | |
8.336% (3 Month SOFR + 2.75%), due 4/29/26 (b) | 7,371,796 | 7,383,060 |
Whatabrands LLC | |
Initial Term Loan B | |
8.68% (1 Month SOFR + 3.25%), due 8/3/28 (b) | 6,503,542 | 6,523,866 |
| Principal Amount | Value |
|
Hotels, Motels, Inns & Gaming (continued) |
Wyndham Hotels & Resorts, Inc. | |
2023 Term Loan B | |
7.666% (1 Month SOFR + 2.25%), due 5/24/30 (b) | $ 2,483,731 | $ 2,489,630 |
| | 60,339,954 |
Insurance 4.0% |
Acrisure LLC | |
First Lien 2021-2 Additional Term Loan | |
9.68% (1 Month LIBOR + 4.25%), due 2/15/27 (b) | 4,838,625 | 4,843,164 |
Alliant Holdings Intermediate LLC | |
New Term Loan B6 | |
8.819% (1 Month SOFR + 3.50%), due 11/6/30 (b) | 3,204,126 | 3,215,414 |
AmWINS Group, Inc. | |
Term Loan | |
7.68% (1 Month SOFR + 2.25%), due 2/19/28 (b) | 7,263,024 | 7,264,673 |
AssuredPartners, Inc. | |
2024 Term Loan | |
8.816% (1 Month SOFR + 3.50%), due 2/14/31 (b) | 7,000,000 | 7,024,500 |
Asurion LLC (b) | |
New Term Loan B8 | |
8.68% (1 Month SOFR + 3.25%), due 12/23/26 | 2,984,576 | 2,913,692 |
New Term Loan B11 | |
9.666% (1 Month SOFR + 4.25%), due 8/19/28 | 3,261,050 | 3,177,485 |
Second Lien New Term Loan B3 | |
10.68% (1 Month SOFR + 5.25%), due 1/31/28 | 4,200,000 | 3,812,999 |
Second Lien New Term Loan B4 | |
10.68% (1 Month SOFR + 5.25%), due 1/20/29 | 4,500,000 | 4,038,750 |
Broadstreet Partners, Inc. (b) | |
2020 Initial Term Loan | |
8.43% (1 Month SOFR + 3.00%), due 1/27/27 | 4,186,214 | 4,190,141 |
Tranche Term Loan B2 | |
8.68% (1 Month SOFR + 3.25%), due 1/27/27 | 1,137,500 | 1,138,922 |
2023 Term Loan B | |
9.066% (1 Month SOFR + 3.75%), due 1/27/29 | 497,503 | 498,836 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
25
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Insurance (continued) |
Hub International Ltd. | |
2024 Incremental Term Loan 8.565% - 8.575% | |
(1 Month SOFR + 3.25%, 3 Month SOFR + 3.25%), due 6/20/30 (b) | $ 3,591,000 | $ 3,608,266 |
Ryan Specialty Group LLC | |
Initial Term Loan | |
8.066% (1 Month SOFR + 2.75%), due 9/1/27 (b) | 3,896,646 | 3,900,301 |
Sedgwick Claims Management Services, Inc. | |
2023 Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 2/24/28 (b) | 6,154,244 | 6,175,402 |
Truist Insurance Holdings LLC | |
Term Loan B | |
8.586%, due 3/24/31 | 3,000,000 | 3,003,126 |
USI, Inc. | |
2023 Term Loan B | |
8.302% (3 Month SOFR + 3.00%), due 11/22/29 (b) | 5,173,758 | 5,183,459 |
| | 63,989,130 |
Leisure, Amusement, Motion Pictures & Entertainment 1.1% |
Bombardier Recreational Products, Inc. | |
2024 Incremental Term Loan | |
8.066% (1 Month SOFR + 2.75%), due 1/22/31 (b) | 4,155,688 | 4,153,739 |
Creative Artists Agency LLC | |
Incremental Term Loan B2 | |
8.566% (1 Month SOFR + 3.25%), due 11/27/28 (b) | 5,770,411 | 5,788,443 |
Lions Gate Capital Holdings LLC | |
Term Loan B | |
7.666% (1 Month SOFR + 2.25%), due 3/24/25 (b) | 1,312,410 | 1,308,895 |
Marriott Ownership Resorts, Inc. | |
2024 Incremental Term Loan | |
7.566% (1 Month SOFR + 2.25%), due 4/1/31 (b) | 2,910,432 | 2,901,942 |
William Morris Endeavor Entertainment LLC | |
First Lien Term Loan B1 | |
8.18% (1 Month SOFR + 2.75%), due 5/18/25 (b) | 3,619,691 | 3,626,478 |
| | 17,779,497 |
| Principal Amount | Value |
|
Machinery (Non-Agriculture, Non-Construct & Non-Electronic) 0.6% |
Advanced Drainage Systems, Inc. | |
Initial Term Loan | |
7.663% (1 Month SOFR + 2.25%), due 7/31/26 (b) | $ 448,393 | $ 450,299 |
Columbus McKinnon Corp. | |
2024 Initial Term Loan | |
7.809% (3 Month SOFR + 2.50%), due 5/14/28 (b) | 5,187,178 | 5,193,662 |
Husky Injection Molding Systems Ltd. | |
Term Loan B | |
10.317%, due 2/1/29 | 3,874,108 | 3,893,478 |
| | 9,537,439 |
Manufacturing 2.5% |
ASP Blade Holdings, Inc. | |
Initial Term Loan | |
9.564% (3 Month SOFR + 4.00%), due 10/13/28 (b) | 4,387,044 | 3,794,793 |
Chart Industries, Inc. | |
Amendment No. 5 Term Loan | |
8.673% (1 Month SOFR + 3.25%), due 3/15/30 (b) | 2,866,054 | 2,873,219 |
Clark Equipment Co. | |
Tranche Term Loan B | |
7.902% (3 Month SOFR + 2.50%), due 4/20/29 (b) | 431,176 | 432,147 |
Coherent Corp. | |
Term Loan B1 | |
7.829% (1 Month SOFR + 2.50%), due 7/2/29 (b) | 5,509,701 | 5,520,032 |
CP Atlas Buyer, Inc. | |
Term Loan B | |
9.166% (1 Month SOFR + 3.75%), due 11/23/27 (b) | 5,319,283 | 5,286,038 |
CPG International LLC | |
Closing Date Term Loan | |
7.916% (1 Month SOFR + 2.50%), due 4/28/29 (b) | 3,693,750 | 3,695,597 |
FCG Acquisitions, Inc. | |
First Lien Initial Term Loan | |
9.321% (3 Month SOFR + 3.75%), due 3/31/28 (b) | 3,367,231 | 3,370,390 |
LSF12 Badger Bidco LLC | |
Initial Term Loan | |
11.316% (1 Month SOFR + 6.00%), due 8/30/30 (b) | 1,246,875 | 1,250,771 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
26 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Manufacturing (continued) |
Madison IAQ LLC | |
Term Loan | |
8.68% (1 Month LIBOR + 3.25%), due 6/21/28 (b) | $ 2,735,520 | $ 2,734,760 |
Pro Mach Group, Inc. | |
First Lien Amendment No. 3 Refinancing Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 8/31/28 (b) | 6,279,915 | 6,302,038 |
Standard Building Solutions, Inc. | |
Initial Term Loan | |
7.68% (1 Month SOFR + 2.25%), due 9/22/28 (b) | 2,409,225 | 2,414,747 |
Summit Materials LLC | |
Term Loan B2 | |
7.799% (3 Month SOFR + 2.50%), due 1/12/29 (b) | 1,500,000 | 1,509,375 |
Zurn LLC | |
First Lien Term Loan B | |
7.43% (1 Month SOFR + 2.00%), due 10/4/28 (b) | 1,877,830 | 1,888,627 |
| | 41,072,534 |
Media 1.3% |
Apple Bidco LLC (b) | |
First Lien Initial Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 9/22/28 | 5,380,828 | 5,384,611 |
First Lien Amendment No. 3 Term Loan | |
8.816% (1 Month SOFR + 3.50%), due 9/22/28 | 1,728,191 | 1,733,050 |
Cogeco Communications Finance LP | |
Incremental Term Loan | |
7.93% (1 Month SOFR + 2.50%), due 9/1/28 (b) | 4,103,187 | 3,987,785 |
Diamond Sports Group LLC | |
Second Lien Term Loan | |
10.665% (1 Month SOFR + 5.25%), due 8/24/26 (b)(f)(g) | 2,898,312 | 67,386 |
Mission Broadcasting, Inc. | |
Term Loan B4 | |
7.942% (1 Month SOFR + 2.50%), due 6/2/28 (b) | 1,361,500 | 1,359,798 |
Radiate Holdco LLC | |
Amendment No. 6 Term Loan B | |
8.68% (1 Month SOFR + 3.25%), due 9/25/26 (b) | 2,528,129 | 2,020,397 |
| Principal Amount | Value |
|
Media (continued) |
Sinclair Television Group, Inc. | |
Term Loan B4 | |
9.166% (1 Month SOFR + 3.75%), due 4/21/29 (b) | $ 2,928,957 | $ 2,241,385 |
Virgin Media Bristol LLC | |
Facility Term Loan Y | |
8.656% (6 Month SOFR + 3.25%), due 3/31/31 (b) | 3,666,667 | 3,595,952 |
| | 20,390,364 |
Mining, Steel, Iron & Non-Precious Metals 1.1% |
American Rock Salt Co. LLC | |
First Lien Initial Term Loan | |
9.43% (1 Month SOFR + 4.00%), due 6/9/28 (b) | 3,397,410 | 3,009,538 |
Arsenal AIC Parent LLC | |
2024 Term Loan B | |
9.066% (1 Month SOFR + 3.75%), due 8/18/30 (b) | 2,558,587 | 2,574,579 |
Gates Global LLC | |
Initial Dollar Term Loan B3 | |
7.916% (1 Month SOFR + 2.50%), due 3/31/27 (b) | 3,493,344 | 3,500,917 |
MRC Global U.S., Inc. | |
2018 Refinancing Term Loan | |
8.43% (1 Month LIBOR + 3.00%), due 9/20/24 (b) | 2,270,955 | 2,267,169 |
U.S. Silica Co. | |
Term Loan | |
9.316% (1 Month SOFR + 4.00%), due 3/25/30 (b) | 2,393,951 | 2,392,454 |
Zekelman Industries, Inc. | |
2024 Term Loan | |
7.568% (1 Month SOFR + 2.25%), due 1/24/31 (b) | 3,986,477 | 3,989,467 |
| | 17,734,124 |
Oil & Gas 2.4% |
Buckeye Partners LP | |
2024 Tranche Term Loan B3 | |
7.316% (1 Month SOFR + 2.00%), due 11/1/26 (b) | 203,919 | 204,397 |
ChampionX Corp. | |
Term Loan B2 | |
8.168% (1 Month SOFR + 2.75%), due 6/7/29 (b) | 4,432,725 | 4,445,190 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
27
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Oil & Gas (continued) |
DT Midstream, Inc. | |
Initial Term Loan | |
7.43% (1 Month SOFR + 2.00%), due 6/26/28 (b) | $ 1,277,850 | $ 1,283,281 |
Fleet Midco I Ltd. | |
Facility Term Loan B | |
8.566% (1 Month SOFR + 3.25%), due 2/10/31 (b) | 7,000,000 | 7,017,500 |
GIP III Stetson I LP | |
2023 Initial Term Loan | |
9.666% (1 Month SOFR + 4.25%), due 10/31/28 (b) | 1,654,792 | 1,658,929 |
GIP Pilot Acquisition Partners LP | |
Initial Term Loan | |
8.308% (3 Month SOFR + 3.00%), due 10/4/30 (b) | 1,360,227 | 1,364,904 |
Medallion Midland Acquisition LP | |
2023 Repricing Term Loan | |
8.83% (3 Month SOFR + 3.50%), due 10/18/28 (b) | 3,741,859 | 3,753,084 |
Murphy Oil USA, Inc. | |
Tranche Term Loan B | |
7.192% (1 Month SOFR + 1.75%), due 1/31/28 (b) | 776,000 | 777,940 |
NGL Energy Operating LLC | |
Initial Term Loan | |
9.816% (1 Month SOFR + 4.50%), due 2/3/31 (b) | 800,000 | 802,800 |
Oryx Midstream Services Permian Basin LLC | |
2024 Refinancing Term Loan | |
8.436% (1 Month SOFR + 3.00%), due 10/5/28 (b) | 3,872,053 | 3,883,348 |
Prairie Acquiror LP | |
Initial Term Loan B2 | |
10.066% (1 Month SOFR + 4.75%), due 8/1/29 (b) | 3,241,934 | 3,243,960 |
TransMontaigne Operating Co. LP | |
Tranche Term Loan B | |
8.93% (1 Month SOFR + 3.50%), due 11/17/28 (b) | 4,887,500 | 4,889,538 |
Traverse Midstream Partners LLC | |
Advance Term Loan | |
8.83% (3 Month SOFR + 3.50%), due 2/16/28 (b) | 2,865,848 | 2,868,536 |
| Principal Amount | Value |
|
Oil & Gas (continued) |
Veritas U.S., Inc. | |
2021 Dollar Term Loan B | |
10.43% (1 Month SOFR + 5.00%), due 9/1/25 (b) | $ 2,722,613 | $ 2,493,233 |
| | 38,686,640 |
Packaging 0.3% |
LABL, Inc. | |
Initial Dollar Term Loan | |
10.416% (1 Month SOFR + 5.00%), due 10/29/28 (b) | 2,639,250 | 2,581,334 |
Plastipak Holdings, Inc. | |
2021 Tranche Term Loan B | |
7.916% (1 Month SOFR + 2.50%), due 12/1/28 (b) | 1,795,294 | 1,793,892 |
| | 4,375,226 |
Personal & Nondurable Consumer Products 1.7% |
ABG Intermediate Holdings 2 LLC | |
First Lien Tranche Term Loan B1 | |
8.918% (1 Month SOFR + 3.50%), due 12/21/28 (b) | 6,980,601 | 7,001,794 |
Foundation Building Materials, Inc. (b) | |
First Lien Initial Term Loan 8.68% - 8.841% | |
(1 Month SOFR + 3.25%, 3 Month SOFR + 3.25%), due 1/31/28 | 5,098,077 | 5,104,450 |
2024 Incremental Term Loan 9.316% - 9.33% | |
(1 Month SOFR + 4.00%, 3 Month SOFR + 4.00%), due 1/29/31 | 2,250,000 | 2,265,937 |
Hunter Douglas Holding BV | |
Tranche Term Loan B1 | |
8.824% (3 Month SOFR + 3.50%), due 2/26/29 (b) | 3,423,863 | 3,396,962 |
Leslie's Poolmart, Inc. | |
Initial Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 3/9/28 (b) | 4,310,600 | 4,187,269 |
Michaels Cos., Inc. (The) | |
Term Loan B | |
9.821% (3 Month SOFR + 4.25%), due 4/15/28 (b) | 1,703,796 | 1,585,241 |
Perrigo Co. plc | |
Initial Term Loan B | |
7.666% (1 Month SOFR + 2.25%), due 4/20/29 (b) | 2,930,063 | 2,916,878 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
28 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Personal & Nondurable Consumer Products (continued) |
Prestige Brands, Inc. | |
Term Loan B5 | |
7.43% (1 Month SOFR + 2.00%), due 7/3/28 (b) | $ 420,000 | $ 421,650 |
| | 26,880,181 |
Personal & Nondurable Consumer Products (Manufacturing Only) 0.7% |
American Builders & Contractors Supplu Co., Inc. | |
Term Loan | |
7.316% (1 Month SOFR + 2.00%), due 1/31/31 (b) | 2,633,125 | 2,639,297 |
Hercules Achievement LLC | |
First Lien Third Amendment Extended Term Loan | |
10.43% (1 Month SOFR + 5.00%), due 12/15/26 (b) | 4,221,760 | 4,240,758 |
SRAM LLC | |
Initial Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 5/18/28 (b) | 4,225,454 | 4,221,491 |
| | 11,101,546 |
Personal Transportation 0.1% |
Uber Technologies, Inc. | |
2023 Refinancing Term Loan | |
8.079% (3 Month SOFR + 2.75%), due 3/3/30 (b) | 1,985,834 | 1,997,281 |
Personal, Food & Miscellaneous Services 1.0% |
1011778 B.C. Unlimited Liability Co. | |
Term Loan B5 | |
7.566% (1 Month SOFR + 2.25%), due 9/20/30 (b) | 3,994,149 | 3,994,149 |
Aramark Intermediate HoldCo Corp. | |
U.S. Term Loan B7 | |
7.316% (1 Month SOFR + 2.00%), due 4/6/28 (b) | 4,051,889 | 4,049,863 |
Hayward Industries, Inc. | |
First Lien Refinancing Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 5/30/28 (b) | 1,586,462 | 1,584,809 |
IRB Holding Corp. | |
2024 Replacement Term Loan B | |
8.166% (1 Month SOFR + 2.75%), due 12/15/27 (b) | 4,092,099 | 4,095,680 |
| Principal Amount | Value |
|
Personal, Food & Miscellaneous Services (continued) |
KFC Holding Co. | |
2021 Term Loan B | |
7.183% (1 Month SOFR + 1.75%), due 3/15/28 (b) | $ 2,150,573 | $ 2,147,549 |
| | 15,872,050 |
Pharmaceuticals 0.2% |
Padagis LLC | |
Term Loan B | |
10.313% (3 Month SOFR + 4.75%), due 7/6/28 (b) | 4,011,765 | 3,650,706 |
Printing & Publishing 0.4% |
Getty Images, Inc. | |
Initial Dollar Term Loan | |
9.909% (3 Month SOFR + 4.50%), due 2/19/26 (b) | 2,538,801 | 2,538,009 |
Severin Acquisition LLC | |
First Lien Initial Term Loan | |
8.33% (3 Month SOFR + 3.00%), due 8/1/27 (b) | 4,307,247 | 4,315,862 |
| | 6,853,871 |
Retail 0.4% |
Great Outdoors Group LLC | |
Term Loan B2 | |
9.18% (1 Month SOFR + 3.75%), due 3/6/28 (b) | 6,016,195 | 6,010,179 |
Retail Store 0.9% |
EG Group Ltd. | |
USD Additional Facility Term Loan | |
9.99% (1 Month SOFR + 4.25%), due 3/31/26 (b) | 1,462,396 | 1,458,740 |
Harbor Freight Tools USA, Inc. | |
2021 Initial Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 10/19/27 (b) | 2,814,039 | 2,814,917 |
PetSmart LLC | |
Initial Term Loan | |
9.166% (1 Month SOFR + 3.75%), due 2/11/28 (b) | 4,886,636 | 4,807,228 |
White Cap Supply Holdings LLC | |
Initial Closing Date Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 10/19/27 (b) | 5,782,925 | 5,800,395 |
| | 14,881,280 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
29
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Services: Business 5.8% |
Ascensus Group Holdings, Inc. | |
First Lien Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 8/2/28 (b) | $ 6,876,139 | $ 6,858,949 |
Avis Budget Car Rental LLC | |
New Tranche Term Loan C | |
8.416% (1 Month SOFR + 3.00%), due 3/16/29 (b) | 3,582,688 | 3,566,268 |
Brown Group Holdings LLC (b) | |
Facility Incremental Term Loan B2 8.316% - 8.343% | |
(1 Month SOFR + 3.00%, 3 Month SOFR + 3.00%), due 7/2/29 | 1,197,571 | 1,198,320 |
Initial Term Loan | |
8.166% (1 Month SOFR + 2.75%), due 6/7/28 | 4,827,432 | 4,826,829 |
Charlotte Buyer, Inc. | |
First Lien Initial Term Loan B | |
10.571% (1 Month SOFR + 5.25%), due 2/11/28 (b) | 2,511,616 | 2,524,174 |
ConnectWise LLC | |
Initial Term Loan | |
9.064% (3 Month SOFR + 3.50%), due 9/29/28 (b) | 3,519,000 | 3,520,759 |
Corporation Service Co. | |
Initial USD Tranche Term Loan B | |
8.066% (1 Month SOFR + 2.75%), due 11/2/29 (b) | 1,167,732 | 1,169,921 |
Dun & Bradstreet Corp. | |
2024 Incremental Term Loan B2 | |
8.068% (1 Month SOFR + 2.75%), due 1/18/29 (b) | 5,534,761 | 5,544,275 |
Electron Bidco, Inc. | |
First Lien Initial Term Loan | |
8.43% (1 Month SOFR + 3.00%), due 11/1/28 (b) | 6,996,192 | 7,004,937 |
Fortrea Holdings, Inc. | |
Initial Term Loan B | |
9.066% (1 Month SOFR + 3.75%), due 7/1/30 (b) | 1,240,625 | 1,245,055 |
GIP II Blue Holding LP | |
Initial Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 9/29/28 (b) | 4,012,942 | 4,032,288 |
Icon Public Ltd. Co. (b) | |
Repriced U.S. Term Loan | |
7.309% (3 Month SOFR + 2.00%), due 7/3/28 | 616,384 | 618,118 |
| Principal Amount | Value |
|
Services: Business (continued) |
Icon Public Ltd. Co. (b) (continued) | |
Repriced Lux Term Loan | |
7.309% (3 Month SOFR + 2.00%), due 7/3/28 | $ 2,473,942 | $ 2,480,899 |
Inizio Group Ltd. | |
First Lien Initial Dollar Term Loan | |
9.659% (3 Month SOFR + 4.25%), due 8/19/28 (b) | 7,077,000 | 7,077,001 |
Mitchell International, Inc. (b) | |
First Lien Initial Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 10/15/28 | 3,266,667 | 3,267,892 |
Second Lien Initial Term Loan | |
11.93% (1 Month SOFR + 6.50%), due 10/15/29 | 1,800,000 | 1,803,150 |
MPH Acquisition Holdings LLC | |
Initial Term Loan | |
9.855% (3 Month SOFR + 4.25%), due 9/1/28 (b) | 4,875,000 | 4,504,154 |
Nielsen Consumer, Inc. | |
2021 Refinancing Dollar Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 3/6/28 (b) | 4,326,267 | 4,169,440 |
Orbit Private Holdings I Ltd. | |
First Lien Initial Dollar Term Loan | |
9.934% (6 Month SOFR + 4.50%), due 12/11/28 (b) | 3,589,066 | 3,609,255 |
Parexel International, Inc. | |
First Lien Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 11/15/28 (b) | 5,860,239 | 5,870,231 |
PECF USS Intermediate Holding III Corp. | |
Initial Term Loan 9.68% - 9.841% | |
(3 Month SOFR + 4.25%), due 12/15/28 (b) | 2,890,518 | 1,988,677 |
Polaris Newco LLC | |
First Lien Dollar Term Loan | |
9.591% (3 Month SOFR + 4.00%), due 6/2/28 (b) | 4,384,945 | 4,349,567 |
Project Boost Purchaser LLC | |
First Lien 2021 Tranche Term Loan 2 8.93% - 9.071% | |
(1 Month SOFR + 3.50%, 3 Month SOFR + 3.50%), due 5/30/26 (b) | 4,239,436 | 4,246,503 |
Prometric Holdings, Inc. | |
First Lien Initial Term Loan | |
10.68% (1 Month SOFR + 5.25%), due 1/31/28 (b) | 1,613,603 | 1,614,276 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
30 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Services: Business (continued) |
Ryan LLC | |
Closing Date Initial Term Loan | |
9.816% (1 Month SOFR + 4.50%), due 11/14/30 (b) | $ 1,900,000 | $ 1,908,312 |
Vestis Corp. | |
Term Loan B1 | |
7.576% (3 Month SOFR + 2.25%), due 2/22/31 (b) | 2,600,000 | 2,601,084 |
Vizient, Inc. | |
Term Loan B7 | |
7.666% (1 Month SOFR + 2.25%), due 5/16/29 (b) | 2,210,625 | 2,217,073 |
| | 93,817,407 |
Services: Consumer 0.1% |
Planet U.S. Buyer LLC | |
Term Loan | |
8.814% (3 Month SOFR + 3.50%), due 2/7/31 (b) | 1,500,000 | 1,505,532 |
West Technology Group LLC | |
Term Loan B3 | |
9.58% (3 Month SOFR + 4.00%), due 4/10/27 (b) | 912,176 | 889,372 |
| | 2,394,904 |
Software 3.5% |
AppLovin Corp. (b) | |
Amendment No. 10-I Replacement Term Loan | |
7.816% (1 Month SOFR + 2.50%), due 10/25/28 | 4,720,925 | 4,726,826 |
2024 Initial Term Loan | |
7.816% (1 Month SOFR + 2.50%), due 8/16/30 | 800,000 | 799,500 |
Cloud Software Group, Inc. (b) | |
First Lien Dollar Term Loan B | |
9.909% (3 Month SOFR + 4.50%), due 3/30/29 | 4,863,338 | 4,858,777 |
First Lien Third Amendment Term Loan | |
9.929% (3 Month SOFR + 4.50%), due 3/21/31 | 1,000,000 | 998,125 |
Cloudera, Inc. | |
First Lien Initial Term Loan | |
9.166% (1 Month SOFR + 3.75%), due 10/8/28 (b) | 2,487,277 | 2,470,956 |
| Principal Amount | Value |
|
Software (continued) |
Cornerstone OnDemand, Inc. | |
First Lien Initial Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 10/16/28 (b) | $ 2,565,094 | $ 2,452,872 |
Cotiviti Holdings, Inc. | |
Term Loan | |
8.563%, due 2/24/31 | 3,300,000 | 3,305,501 |
Delta Topco, Inc. | |
Term Loan | |
8.846%, due 12/24/29 | 1,285,714 | 1,285,178 |
Ellucian Holdings, Inc. | |
First Lien Term Loan B1 | |
8.916% (1 Month SOFR + 3.50%), due 10/9/29 (b) | 2,816,311 | 2,823,791 |
Gen Digital, Inc. | |
Tranche Initial Term Loan B | |
7.416% (1 Month SOFR + 2.00%), due 9/12/29 (b) | 3,369,609 | 3,372,241 |
Informatica LLC | |
Initial Term Loan | |
8.18% (1 Month SOFR + 2.75%), due 10/27/28 (b) | 3,708,905 | 3,712,614 |
Isolved, Inc. | |
Term Loan B1 | |
8.819% (1 Month SOFR + 3.50%), due 10/14/30 (b) | 586,765 | 587,498 |
Magenta Buyer LLC | |
First Lien Initial Term Loan | |
10.591% (3 Month SOFR + 5.00%), due 7/27/28 (b) | 3,182,955 | 1,587,499 |
McAfee Corp. | |
Tranche Term Loan B1 | |
9.177% (1 Month SOFR + 3.75%), due 3/1/29 (b) | 2,915,390 | 2,914,349 |
Mitnick Corp. Purchaser, Inc. | |
Initial Term Loan | |
9.93% (3 Month SOFR + 4.50%), due 5/2/29 (b) | 1,951,298 | 1,865,115 |
Precisely Software, Inc. | |
First Lien Third Incremental Term Loan | |
9.841% (3 Month SOFR + 4.25%), due 4/24/28 (b) | 2,731,683 | 2,716,317 |
Quartz AcquireCo LLC | |
Term Loan | |
8.809% (3 Month SOFR + 3.50%), due 6/28/30 (b) | 1,243,750 | 1,248,414 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
31
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Software (continued) |
Quest Software U.S. Holdings, Inc. | |
First Lien Initial Term Loan | |
9.73% (3 Month SOFR + 4.25%), due 2/1/29 (b) | $ 4,472,782 | $ 3,130,947 |
Sovos Compliance LLC | |
First Lien Initial Term Loan | |
9.93% (1 Month SOFR + 4.50%), due 8/11/28 (b) | 2,917,242 | 2,879,408 |
UKG, Inc. | |
First Lien 2024 Refinancing Term Loan | |
8.814% (3 Month SOFR + 3.50%), due 2/10/31 (b) | 8,840,078 | 8,877,904 |
| | 56,613,832 |
Telecommunications 2.4% |
Avaya, Inc. | |
Initial Term Loan | |
6.818% (7.00% PIK) (1 Month SOFR + 1.50%), due 8/1/28 (b)(e) | 423,423 | 367,672 |
Azalea TopCo, Inc. | |
Term Loan B | |
8.829%, due 4/24/31 | 3,571,429 | 3,556,547 |
Cablevision Lightpath LLC | |
Initial Term Loan | |
8.685% (1 Month SOFR + 3.25%), due 11/30/27 (b) | 3,991,202 | 3,903,064 |
Ciena Corp. | |
2020 Refinancing Term Loan | |
7.315% (1 Month SOFR + 2.00%), due 10/24/30 (b) | 990,025 | 991,675 |
Connect Finco SARL | |
Amendement No.1 Refinancing Term Loan | |
8.828% (3 Month SOFR + 3.50%), due 12/11/26 (b) | 2,210,226 | 2,204,700 |
CSC Holdings LLC | |
September 2019 Initial Term Loan | |
7.935% (1 Month LIBOR + 2.50%), due 4/15/27 (b) | 6,395,222 | 5,375,184 |
Cyxtera DC Holdings, Inc. | |
First Lien Initial Term Loan | |
TBD (3 Month SOFR + 2.00%), due 5/1/24 (b)(c)(f) | 491,469 | 17,969 |
Frontier Communications Holdings LLC | |
Term Loan B | |
9.18% (1 Month SOFR + 3.75%), due 10/8/27 (b) | 4,191,941 | 4,175,471 |
| Principal Amount | Value |
|
Telecommunications (continued) |
Gogo Intermediate Holdings LLC | |
Initial Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 4/30/28 (b) | $ 5,401,287 | $ 5,378,137 |
Iridium Satellite LLC | |
Term Loan B3 | |
7.816% (1 Month SOFR + 2.50%), due 9/20/30 (b) | 498,750 | 498,483 |
Lumen Technologies, Inc. (b) | |
Term Loan B1 | |
7.78% (1 Month SOFR + 2.35%), due 4/15/30 | 1,470,374 | 1,049,847 |
Term Loan B2 | |
7.78% (1 Month SOFR + 2.35%), due 4/15/30 | 1,474,059 | 1,020,786 |
Redstone HoldCo 2 LP | |
First Lien Initial Term Loan | |
10.18% (1 Month SOFR + 4.75%), due 4/27/28 (b) | 1,525,765 | 1,188,190 |
SBA Senior Finance II LLC | |
2024 Initial Term Loan | |
7.32% (1 Month SOFR + 2.00%), due 1/25/31 (b) | 3,168,470 | 3,178,175 |
Telesat Canada | |
Term Loan B5 | |
8.355% (3 Month SOFR + 2.75%), due 12/7/26 (b) | 2,034,078 | 1,008,563 |
Zayo Group Holdings, Inc. | |
Initial Dollar Term Loan | |
8.43% (1 Month SOFR + 3.00%), due 3/9/27 (b) | 5,075,110 | 4,393,142 |
| | 38,307,605 |
Utilities 1.1% |
Astoria Energy LLC | |
2020 Advance Term Loan B | |
8.93% (1 Month SOFR + 3.50%), due 12/10/27 (b) | 850,706 | 852,073 |
Compass Power Generation LLC | |
Tranche Term Loan B2 | |
9.68% (1 Month SOFR + 4.25%), due 4/14/29 (b) | 1,657,166 | 1,665,866 |
Constellation Renewables LLC | |
Term Loan | |
8.105% (3 Month SOFR + 2.50%), due 12/15/27 (b) | 2,348,856 | 2,346,652 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
32 | MainStay Floating Rate Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Utilities (continued) |
Edgewater Generation LLC | |
Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 12/13/25 (b) | $ 4,495,843 | $ 4,484,604 |
Granite Generation LLC | |
Term Loan | |
9.18% (1 Month SOFR + 3.75%), due 11/9/26 (b) | 5,898,555 | 5,899,375 |
Hamilton Projects Acquiror LLC | |
Term Loan | |
9.93% (1 Month SOFR + 4.50%), due 6/17/27 (b) | 1,813,316 | 1,821,532 |
| | 17,070,102 |
Water 0.3% |
Osmosis Buyer Ltd. (b) | |
2023 Incremental Delayed Draw Term Loan 9.566% - 9.574% | |
(1 Month SOFR + 4.25%), due 7/31/28 | 1,250,000 | 1,255,176 |
2022 Refinanciang Term Loan B | |
9.324% (1 Month SOFR + 4.00%), due 7/31/28 | 3,985,692 | 3,996,900 |
| | 5,252,076 |
Total Loan Assignments (Cost $1,396,646,655) | | 1,371,212,303 |
Total Long-Term Bonds (Cost $1,573,086,965) | | 1,545,316,498 |
|
| Shares | |
|
Affiliated Investment Company 0.4% |
Fixed Income Fund 0.4% | | |
MainStay MacKay High Yield Corporate Bond Fund Class I | 1,299,065 | 6,650,694 |
Total Affiliated Investment Company (Cost $7,308,299) | | 6,650,694 |
Common Stocks 0.1% |
Automobile Components 0.0% ‡ |
Millennium Corporate Trust (c)(d)(h) | 4,973 | — |
Millennium Industries Corp. (c)(d)(h) | 5,298 | — |
| | — |
| Shares | Value |
|
Communications Equipment 0.0% ‡ |
Avaya, Inc. (c)(d)(h) | 40,688 | $ 193,268 |
Financial Services 0.0% ‡ |
New Topco Shares, Class A (c)(d)(h) | 482,014 | — |
Health Care Equipment & Supplies 0.0% ‡ |
Carestream Equity (c)(d)(h) | 5,387 | 54 |
Health Care Providers & Services 0.1% |
Mallinckrodt International Corp. (c)(d)(h) | 11,784 | 612,768 |
Household Durables 0.0% ‡ |
SSB Equipment Co., Inc. (c)(d)(h) | 1,277 | — |
Independent Power and Renewable Electricity Producers 0.0% ‡ |
Sempra Texas Holdings Corp. (c)(d)(h) | 175,418 | — |
IT Services 0.0% ‡ |
Envision Financial Technologies, Inc. (c)(d)(h) | 62,402 | 374,412 |
Machinery 0.0% ‡ |
Ameriforge Group, Inc. (c)(d)(h) | 60,753 | 35,844 |
Specialty Retail 0.0% ‡ |
Serta Simmons Bedding, Inc. (c)(d)(h) | 1,277 | 7,024 |
Technology Hardware, Storage & Peripherals 0.0% ‡ |
Diebold Nixdorf, Inc. (h) | 11,878 | 376,057 |
Total Common Stocks (Cost $4,061,050) | | 1,599,427 |
|
| Number of Warrants | |
|
Warrants 0.0% ‡ |
Capital Markets 0.0% ‡ |
THAIHOT Investment Co. Ltd. | | |
Expires 10/13/27 (c)(d)(h)(i) | 26 | 0 |
Total Warrants (Cost $0) | | 0 |
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
33
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | | Value |
|
Short-Term Investments 4.2% |
U.S. Treasury Debt 4.2% |
U.S. Treasury Bills (j) | | | |
5.29%, due 5/28/24 | $ 5,569,000 | | $ 5,546,988 |
5.292%, due 5/9/24 | 2,216,000 | | 2,213,399 |
5.296%, due 5/14/24 | 3,167,000 | | 3,160,973 |
5.30%, due 5/7/24 | 43,735,000 | | 43,696,506 |
6.323%, due 5/21/24 | 13,276,000 | | 13,237,131 |
Total Short-Term Investments (Cost $67,854,931) | | | 67,854,997 |
Total Investments (Cost $1,652,311,245) | 100.2% | | 1,621,421,616 |
Other Assets, Less Liabilities | (0.2) | | (2,787,150) |
Net Assets | 100.0% | | $ 1,618,634,466 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
‡ | 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(a)(2) of the Securities Act of 1933, as amended. |
(b) | Floating rate—Rate shown was the rate in effect as of April 30, 2024. |
(c) | Illiquid security—As of April 30, 2024, the total market value deemed illiquid under procedures approved by the Board of Trustees was $9,915,196, which represented 0.6% of the Fund’s net assets. |
(d) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(e) | PIK ("Payment-in-Kind")—issuer may pay interest or dividends with additional securities and/or in cash. |
(f) | Issue in default. |
(g) | Issue in non-accrual status. |
(h) | Non-income producing security. |
(i) | Less than $1. |
(j) | Interest rate shown represents yield to maturity. |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay MacKay High Yield Corporate Bond Fund Class I | $ 6,377 | $ — | $ — | $ — | $ 274 | $ 6,651 | $ 218 | $ — | 1,299 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
34 | MainStay Floating Rate Fund |
Abbreviation(s): |
CLO—Collateralized Loan Obligation |
LIBOR—London Interbank Offered Rate |
SOFR—Secured Overnight Financing Rate |
TBD—To Be Determined |
USD—United States Dollar |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Long-Term Bonds | | | | | | | |
Asset-Backed Securities | $ — | | $ 81,225,436 | | $ — | | $ 81,225,436 |
Corporate Bonds | — | | 92,878,759 | | — | | 92,878,759 |
Loan Assignments | — | | 1,369,768,084 | | 1,444,219 | | 1,371,212,303 |
Total Long-Term Bonds | — | | 1,543,872,279 | | 1,444,219 | | 1,545,316,498 |
Affiliated Investment Company | | | | | | | |
Fixed Income Fund | 6,650,694 | | — | | — | | 6,650,694 |
Common Stocks | 376,057 | | — | | 1,223,370 | | 1,599,427 |
Warrants (b) | — | | — | | 0 | | 0 |
Short-Term Investments | | | | | | | |
U.S. Treasury Debt | — | | 67,854,997 | | — | | 67,854,997 |
Total Investments in Securities | $ 7,026,751 | | $ 1,611,727,276 | | $ 2,667,589 | | $ 1,621,421,616 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
(b) | Less than $1. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
35
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $1,645,002,946) | $1,614,770,922 |
Investment in affiliated investment companies, at value (identified cost $7,308,299) | 6,650,694 |
Cash | 13,027,658 |
Unrealized appreciation on unfunded commitments (See Note 5) | 875 |
Receivables: | |
Interest | 6,697,187 |
Investment securities sold | 4,284,768 |
Fund shares sold | 2,213,312 |
Other assets | 157,339 |
Total assets | 1,647,802,755 |
Liabilities |
Payables: | |
Investment securities purchased | 22,347,677 |
Fund shares redeemed | 4,143,962 |
Manager (See Note 3) | 778,963 |
NYLIFE Distributors (See Note 3) | 176,081 |
Transfer agent (See Note 3) | 162,941 |
Professional fees | 87,447 |
Custodian | 39,341 |
Trustees | 996 |
Accrued expenses | 2,037 |
Distributions payable | 1,428,844 |
Total liabilities | 29,168,289 |
Net assets | $1,618,634,466 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 182,440 |
Additional paid-in-capital | 1,821,088,187 |
| 1,821,270,627 |
Total distributable earnings (loss) | (202,636,161) |
Net assets | $1,618,634,466 |
Class A | |
Net assets applicable to outstanding shares | $678,927,901 |
Shares of beneficial interest outstanding | 76,533,354 |
Net asset value per share outstanding | $ 8.87 |
Maximum sales charge (3.00% of offering price) | 0.27 |
Maximum offering price per share outstanding | $ 9.14 |
Investor Class | |
Net assets applicable to outstanding shares | $ 17,653,351 |
Shares of beneficial interest outstanding | 1,989,993 |
Net asset value per share outstanding | $ 8.87 |
Maximum sales charge (2.50% of offering price) | 0.23 |
Maximum offering price per share outstanding | $ 9.10 |
Class C | |
Net assets applicable to outstanding shares | $ 42,472,646 |
Shares of beneficial interest outstanding | 4,786,223 |
Net asset value and offering price per share outstanding | $ 8.87 |
Class I | |
Net assets applicable to outstanding shares | $676,150,854 |
Shares of beneficial interest outstanding | 76,208,036 |
Net asset value and offering price per share outstanding | $ 8.87 |
Class R6 | |
Net assets applicable to outstanding shares | $203,187,094 |
Shares of beneficial interest outstanding | 22,894,757 |
Net asset value and offering price per share outstanding | $ 8.87 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 242,620 |
Shares of beneficial interest outstanding | 27,347 |
Net asset value and offering price per share outstanding | $ 8.87 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
36 | MainStay Floating Rate Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $75,118,179 |
Dividends-affiliated | 218,314 |
Total income | 75,336,493 |
Expenses | |
Manager (See Note 3) | 4,739,918 |
Distribution/Service—Class A (See Note 3) | 806,136 |
Distribution/Service—Investor Class (See Note 3) | 22,455 |
Distribution/Service—Class B (See Note 3)(a) | 1,037 |
Distribution/Service—Class C (See Note 3) | 220,672 |
Distribution/Service—Class R3 (See Note 3)(b) | 1,654 |
Distribution/Service—SIMPLE Class (See Note 3) | 526 |
Transfer agent (See Note 3) | 544,883 |
Professional fees | 108,389 |
Registration | 85,152 |
Shareholder communication | 42,584 |
Custodian | 34,323 |
Trustees | 20,695 |
Shareholder service (See Note 3) | 331 |
Miscellaneous | 62,980 |
Total expenses | 6,691,735 |
Net investment income (loss) | 68,644,758 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on unaffiliated investments | (5,720,197) |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 26,662,676 |
Affiliated investments | 273,713 |
Unfunded commitments | 875 |
Net change in unrealized appreciation (depreciation) | 26,937,264 |
Net realized and unrealized gain (loss) | 21,217,067 |
Net increase (decrease) in net assets resulting from operations | $89,861,825 |
(a) | Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and are no longer offered for sale as of February 20, 2024. |
(b) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
37
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 68,644,758 | $ 145,671,806 |
Net realized gain (loss) | (5,720,197) | (48,989,803) |
Net change in unrealized appreciation (depreciation) | 26,937,264 | 95,102,993 |
Net increase (decrease) in net assets resulting from operations | 89,861,825 | 191,784,996 |
Distributions to shareholders: | | |
Class A | (26,840,547) | (42,905,590) |
Investor Class | (735,789) | (1,416,352) |
Class B(a) | (7,859) | (34,075) |
Class C | (1,641,770) | (3,493,618) |
Class I | (29,464,228) | (75,206,717) |
Class R3(b) | (26,813) | (67,129) |
Class R6 | (9,100,926) | (21,775,159) |
SIMPLE Class | (8,472) | (6,483) |
Total distributions to shareholders | (67,826,404) | (144,905,123) |
Capital share transactions: | | |
Net proceeds from sales of shares | 250,717,672 | 722,369,202 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 58,506,852 | 122,065,730 |
Cost of shares redeemed | (352,186,579) | (1,460,955,196) |
Increase (decrease) in net assets derived from capital share transactions | (42,962,055) | (616,520,264) |
Net increase (decrease) in net assets | (20,926,634) | (569,640,391) |
Net Assets |
Beginning of period | 1,639,561,100 | 2,209,201,491 |
End of period | $1,618,634,466 | $ 1,639,561,100 |
(a) | Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and are no longer offered for sale as of February 20, 2024. |
(b) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
38 | MainStay Floating Rate Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.02 | | $ 9.28 |
Net investment income (loss) (a) | 0.37 | | 0.69 | | 0.34 | | 0.25 | | 0.31 | | 0.43 |
Net realized and unrealized gain (loss) | 0.12 | | 0.19 | | (0.59) | | 0.28 | | (0.18) | | (0.26) |
Total from investment operations | 0.49 | | 0.88 | | (0.25) | | 0.53 | | 0.13 | | 0.17 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.37) | | (0.68) | | (0.33) | | (0.24) | | (0.31) | | (0.43) |
Net asset value at end of period | $ 8.87 | | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.02 |
Total investment return (b) | 5.64% | | 10.61% | | (2.77)% | | 6.05% | | 1.55% | | 1.94% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 8.43%†† | | 7.85% | | 3.82% | | 2.78% | | 3.56% | | 4.76% |
Net expenses (c) | 0.96%†† | | 0.97% | | 0.99% | | 1.02% | | 1.14% | | 1.09% |
Portfolio turnover rate | 11% | | 11% | | 27% | | 22% | | 22% | | 19% |
Net assets at end of period (in 000’s) | $ 678,928 | | $ 617,220 | | $ 513,558 | | $ 397,101 | | $ 279,188 | | $ 338,392 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.02 | | $ 9.28 |
Net investment income (loss) (a) | 0.37 | | 0.67 | | 0.32 | | 0.24 | | 0.31 | | 0.43 |
Net realized and unrealized gain (loss) | 0.11 | | 0.20 | | (0.58) | | 0.28 | | (0.18) | | (0.26) |
Total from investment operations | 0.48 | | 0.87 | | (0.26) | | 0.52 | | 0.13 | | 0.17 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.36) | | (0.67) | | (0.32) | | (0.23) | | (0.31) | | (0.43) |
Net asset value at end of period | $ 8.87 | | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.02 |
Total investment return (b) | 5.57% | | 10.47% | | (2.85)% | | 5.96% | | 1.55% | | 1.95% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 8.29%†† | | 7.72% | | 3.64% | | 2.67% | | 3.55% | | 4.77% |
Net expenses (c) | 1.11%†† | | 1.10% | | 1.07% | | 1.12% | | 1.13% | | 1.08% |
Portfolio turnover rate | 11% | | 11% | | 27% | | 22% | | 22% | | 19% |
Net assets at end of period (in 000's) | $ 17,653 | | $ 18,016 | | $ 17,820 | | $ 19,314 | | $ 20,569 | | $ 23,496 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
39
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.03 | | $ 9.28 |
Net investment income (loss) (a) | 0.33 | | 0.61 | | 0.26 | | 0.17 | | 0.25 | | 0.37 |
Net realized and unrealized gain (loss) | 0.12 | | 0.19 | | (0.58) | | 0.28 | | (0.19) | | (0.25) |
Total from investment operations | 0.45 | | 0.80 | | (0.32) | | 0.45 | | 0.06 | | 0.12 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.33) | | (0.60) | | (0.26) | | (0.16) | | (0.25) | | (0.37) |
Net asset value at end of period | $ 8.87 | | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.03 |
Total investment return (b) | 5.17% | | 9.65% | | (3.58)% | | 5.17% | | 0.68% | | 1.30% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 7.54%†† | | 6.94% | | 2.92% | | 1.91% | | 2.85% | | 4.03% |
Net expenses (c) | 1.85%†† | | 1.85% | | 1.82% | | 1.88% | | 1.88% | | 1.83% |
Portfolio turnover rate | 11% | | 11% | | 27% | | 22% | | 22% | | 19% |
Net assets at end of period (in 000’s) | $ 42,473 | | $ 46,482 | | $ 56,706 | | $ 52,522 | | $ 55,153 | | $ 86,012 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.03 | | $ 9.28 |
Net investment income (loss) (a) | 0.38 | | 0.70 | | 0.35 | | 0.28 | | 0.33 | | 0.46 |
Net realized and unrealized gain (loss) | 0.12 | | 0.20 | | (0.58) | | 0.27 | | (0.19) | | (0.25) |
Total from investment operations | 0.50 | | 0.90 | | (0.23) | | 0.55 | | 0.14 | | 0.21 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.38) | | (0.70) | | (0.35) | | (0.26) | | (0.33) | | (0.46) |
Net asset value at end of period | $ 8.87 | | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.03 |
Total investment return (b) | 5.77% | | 10.89% | | (2.53)% | | 6.31% | | 1.69% | | 2.31% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 8.68%†† | | 8.01% | | 3.98% | | 3.04% | | 3.85% | | 5.02% |
Net expenses (c) | 0.70%†† | | 0.73% | | 0.74% | | 0.77% | | 0.89% | | 0.84% |
Portfolio turnover rate | 11% | | 11% | | 27% | | 22% | | 22% | | 19% |
Net assets at end of period (in 000’s) | $ 676,151 | | $ 743,846 | | $ 1,287,716 | | $ 1,186,421 | | $ 445,468 | | $ 716,692 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
40 | MainStay Floating Rate Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | February 28, 2019^ through October 31, 2019 |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 | |
Net asset value at beginning of period | $ 8.76 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.03 | | $ 9.18 |
Net investment income (loss) (a) | 0.39 | | 0.71 | | 0.36 | | 0.30 | | 0.35 | | 0.32 |
Net realized and unrealized gain (loss) | 0.10 | | 0.21 | | (0.58) | | 0.27 | | (0.19) | | (0.15) |
Total from investment operations | 0.49 | | 0.92 | | (0.22) | | 0.57 | | 0.16 | | 0.17 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.38) | | (0.71) | | (0.36) | | (0.28) | | (0.35) | | (0.32) |
Net asset value at end of period | $ 8.87 | | $ 8.76 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 9.03 |
Total investment return (b) | 5.69% | | 11.10% | | (2.42)% | | 6.47% | | 1.92% | | 1.84% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 8.75%†† | | 8.11% | | 4.07% | | 3.24% | | 3.99% | | 5.18%†† |
Net expenses (c) | 0.64%†† | | 0.64% | | 0.63% | | 0.62% | | 0.67% | | 0.64%†† |
Portfolio turnover rate | 11% | | 11% | | 27% | | 22% | | 22% | | 19% |
Net assets at end of period (in 000’s) | $ 203,187 | | $ 212,357 | | $ 332,082 | | $ 366,720 | | $ 120,432 | | $ 71,077 |
* | Unaudited. |
^ | Inception date. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 | | $ 8.83** |
Net investment income (loss) (a) | 0.36 | | 0.68 | | 0.30 | | 0.22 | | 0.04 |
Net realized and unrealized gain (loss) | 0.12 | | 0.18 | | (0.58) | | 0.28 | | 0.01 |
Total from investment operations | 0.48 | | 0.86 | | (0.28) | | 0.50 | | 0.05 |
Less distributions: | | | | | | | | | |
From net investment income | (0.36) | | (0.66) | | (0.30) | | (0.21) | | (0.04) |
Net asset value at end of period | $ 8.87 | | $ 8.75 | | $ 8.55 | | $ 9.13 | | $ 8.84 |
Total investment return (b) | 5.51% | | 10.33% | | (3.09)% | | 5.67% | | 0.57% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 8.15%†† | | 7.82% | | 3.41% | | 2.42% | | 2.72%†† |
Net expenses (c) | 1.21%†† | | 1.20% | | 1.32% | | 1.38% | | 1.37%†† |
Portfolio turnover rate | 11% | | 11% | | 27% | | 22% | | 22% |
Net assets at end of period (in 000’s) | $ 243 | | $ 142 | | $ 26 | | $ 27 | | $ 25 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
41
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Floating Rate Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | May 3, 2004 |
Investor Class | February 28, 2008 |
Class C | May 3, 2004 |
Class I | May 3, 2004 |
Class R6 | February 28, 2019 |
SIMPLE Class | August 31, 2020 |
Effective at the close of business on February 20, 2024, all outstanding Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and effective February 23, 2024, Class R3 shares were liquidated.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a CDSC of 1.00% may be imposed on certain redemptions of Class A and Investor Class shares made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. For purchases of Class A and Investor Class shares made from August 1, 2017 through April 14, 2019, a CDSC of 1.00% may be imposed on certain redemptions (for investments of $500,000 which paid no initial sales charge) of such shares within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on redemptions of such shares made within one year of the date of purchase of Class C shares. Investments in Class C shares are subject to a purchase maximum of $250,000. Class I and Class R6 and SIMPLE Class shares are offered at NAV without a sales charge. Depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. SIMPLE Class shares convert to Class A shares, or Investor Class shares if you are not eligible to hold Class A shares, at the end of the calendar quarter, ten years after the date they were purchased. Share class conversions are based on the relevant NAVs of the two classes at the time of the conversion, and no sales load or other charge is imposed. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under
the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A, Investor Class and SIMPLE Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek high current income.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
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The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the
Notes to Financial Statements (Unaudited) (continued)
valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Debt securities (other than convertible and municipal bonds) are valued at the evaluated bid prices (evaluated mean prices in the case of convertible and municipal bonds) supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent’s good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants’ assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values at the regular close of trading of the Exchange on each valuation date. Debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Debt securities, including corporate bonds, U.S. government and federal agency bonds, municipal bonds, foreign bonds, convertible bonds, asset-backed securities and mortgage-backed securities are generally categorized as Level 2 in the hierarchy.
Loan assignments, participations and commitments are valued at the average of bid quotations obtained from the engaged independent pricing service and are generally categorized as Level 2 in the hierarchy. Certain loan assignments, participations and commitments may be valued by utilizing significant unobservable inputs obtained from the pricing service and are generally categorized as Level 3 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The
Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
A portfolio investment may be classified as an illiquid investment under the Trust's written liquidity risk management program and related procedures (“Liquidity Program”). Illiquidity of an investment might prevent the sale of such investment at a time when the Manager or the Subadvisor might wish to sell, and these investments could have the effect of decreasing the overall level of the Fund's liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid investments, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary materially from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid investments may result in a loss or may be costly to the Fund. An illiquid investment is any investment that the Manager or Subadvisor reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The liquidity classification of each investment will be made using information obtained after reasonable inquiry and taking into account, among other things, relevant market, trading and investment-specific considerations in accordance with the Liquidity Program. Illiquid investments are often fair valued in accordance with the Fund's procedures described above. The liquidity of the Fund's investments was determined as of April 30, 2024, and can change at any time.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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.
44 | MainStay Floating Rate Fund |
(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare dividends from net investment income, if any, daily and intends to pay them at least monthly and pays distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source. Premiums and discount on purchased securities other than bank loans, are accreted and amortized, respectively on the effective interest rate method. Premiums and discounts on purchased bank loan securities are accreted and amortized, respectively, on the straight line method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital. Income from payment-in-kind securities is accreted daily based on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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.
Additionally, the Fund may invest in ETFs and mutual funds, which are subject to management fees and other fees that may cause the costs of investing in ETFs and mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of ETFs and mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) Loan Assignments, Participations and Commitments. The Fund may invest in loan assignments and participations ("loans"). Commitments are agreements to make money available to a borrower in a specified amount, at a specified rate and within a specified time. The Fund records an investment when the borrower withdraws money on a commitment or when a funded loan is purchased (trade date) 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, the Secured Overnight Financing Rate ("SOFR") or an alternative reference rate.
The loans in which the Fund may invest 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. If the Fund purchases an assignment from a lender, the Fund will generally have direct contractual rights against the borrower in favor of the lender. If the Fund purchases a participation interest either from a lender or a participant, the Fund typically will have established a direct contractual relationship with the seller of the participation interest, but not with the borrower. Consequently, the Fund is subject to the credit risk of the lender or participant who sold the participation interest to the Fund, in addition to the usual credit risk of the borrower. In the event that the borrower, selling participant or intermediate participants become insolvent or enter 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. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities.
(H) Rights and Warrants. Rights are certificates that permit the holder to purchase a certain number of shares, or a fractional share, of a new stock from the issuer at a specific price. Warrants are instruments that entitle the holder to buy an equity security at a specific price for a specific period of time. 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.
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 its investment in warrants if such warrants are not exercised by the date of its expiration. The Fund is exposed to risk until the sale or exercise of each right or warrant is completed.
Notes to Financial Statements (Unaudited) (continued)
(I) Loan Risk. The Fund may invest in loans which 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 investments pay investors a higher interest rate than investment grade debt securities because of the increased risk of loss. Although certain 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 value of these investments could decline significantly. As a result of these and other events, the Fund's NAVs could go down and you could lose money.
In addition, loans generally are subject to extended settlement periods that may be longer than seven days. As a result, the Fund may be adversely affected by selling other investments at an unfavorable time and/or under unfavorable conditions or engaging in borrowing transactions, such as borrowing against its credit facility, to raise cash to meet redemption obligations or pursue other investment opportunities.
In certain circumstances, loans may not be deemed to be securities. As a result, the Fund may not have the protection of the anti-fraud provisions of the federal securities laws. In such cases, the Fund generally must rely on the contractual provisions in the loan agreement and common-law fraud protections under applicable state law.
(J) Foreign Securities Risk. The Fund may invest in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult to value. 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, among other things, economic or political developments in a specific country, industry or region.
(K) Debt Securities Risk. The Fund's investments may include securities such as variable rate notes, floaters 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, investments in these types of securities could lose money for the Fund.
(L) LIBOR Replacement Risk. The Fund may invest in certain debt securities, derivatives or other financial instruments that have relied or continue to rely on the London Interbank Offered Rate ("LIBOR"), as a
“benchmark” or “reference rate” for various interest rate calculations. As of January 1, 2022, the United Kingdom Financial Conduct Authority ("FCA"), which regulates LIBOR, ceased its active encouragement of banks to provide the quotations needed to sustain most LIBOR rates due to the absence of an active market for interbank unsecured lending and other reasons. In connection with supervisory guidance from U.S. regulators, certain U.S. regulated entities have generally ceased to enter into certain new LIBOR contracts after January 1, 2022. On March 15, 2022, the Adjustable Interest Rate (LIBOR) Act was signed into law. This law provides a statutory fallback mechanism on a nationwide basis to replace LIBOR with a benchmark rate that is selected by the Board of Governors of the Federal Reserve System and based on SOFR (which measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities) for tough legacy contracts. On February 27, 2023, the Federal Reserve System’s final rule in connection with this law became effective, establishing benchmark replacements based on SOFR and Term SOFR (a forward-looking measurement of market expectations of SOFR implied from certain derivatives markets) for applicable tough legacy contracts governed by U.S. law. In addition, the FCA has announced that it will require the publication of synthetic LIBOR for the one-month, three-month and six-month U.S. Dollar LIBOR settings after June 30, 2023 through at least September 30, 2024. Certain of the Fund's investments may involve individual tough legacy contracts which may be subject to the Adjustable Interest Rate (LIBOR) Act or synthetic LIBOR and no assurances can be given that these measures will have had the intended effects. Although the transition process away from LIBOR for many instruments has been completed, some LIBOR use is continuing and there are potential effects related to the transition away from LIBOR or continued use of LIBOR on the Fund.
The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund's performance and/or net asset value. It could also lead to a reduction in the interest rates on, and the value of, some LIBOR-based investments and reduce the effectiveness of hedges mitigating risk in connection with LIBOR-based investments. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include enhanced provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund's performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The usefulness of LIBOR as a benchmark could deteriorate anytime during this transition period. Any such effects of the transition process, including unforeseen effects, could result in losses to the Fund.
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(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. NYL Investors LLC ("NYL Investors" or ''Subadvisor''), a registered investment adviser and a direct, wholly-owned subsidiary of New York Life, serves as the 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 ("Subadvisory Agreement") between New York Life Investments and NYL Investors, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.60% up to $1 billion; 0.575% from $1 billion to $3 billion; and 0.565% in excess of $3 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.59%.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) for Class A shares do not exceed 1.05% of the Fund’s 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, except for Class R6 shares. New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Class R6 fees and expenses do not exceed those of
Class I. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $4,739,918 and paid the Subadvisor in the amount of $2,369,959.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, the Distributor receives a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 and SIMPLE Class shares Plans, Class R3 and SIMPLE Class shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, for a total 12b-1 fee of 0.50%. Class I and Class R6 shares are not subject to a distribution and/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.
In accordance with the Shareholder Services Plans for the Class R3 shares, the Manager has agreed to provide, through its affiliates or independent third parties, various shareholder and administrative support
Notes to Financial Statements (Unaudited) (continued)
services to shareholders of the Class R3 shares. For its services, the Manager, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R3 shares. This is in addition to any fees paid under the Class R3 Plan.
During the period November 1, 2023 through February 28, 2024, shareholder service fees incurred by the Fund were as follows:
* | Effective at the close of business on February 23, 2024, Class R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $30,224 and $1,311, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class and Class C shares during the six-month period ended April 30, 2024, of $52,939, $110 and $1,454, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the
aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $231,676 | $— |
Investor Class | 19,758 | — |
Class B* | 215 | — |
Class C | 48,493 | — |
Class I | 240,271 | — |
Class R3* | 180 | — |
Class R6 | 4,209 | — |
SIMPLE Class | 81 | — |
* | Effective at the close of business on February 20, 2024, all outstanding Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and effective February 23, 2024, Class R3 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class R6 | $31,436 | 0.0%‡ |
SIMPLE Class | 29,784 | 12.3 |
‡ | Less than one-tenth of a percent. |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $1,652,442,001 | $10,657,445 | $(41,677,830) | $(31,020,385) |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $167,428,730, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected
48 | MainStay Floating Rate Fund |
to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $27,972 | $139,457 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $144,905,123 |
Note 5–Commitments and Contingencies
As of April 30, 2024, the Fund had unfunded commitments pursuant to the following loan agreements:
Borrower | Unfunded Commitments | Unrealized Appreciation/ (Depreciation) |
Ryan LLC, Delayed Draw Term Loan 4.50%, due 11/14/30 | $200,875 | $875 |
Commitments are available until maturity date.
Note 6–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 7–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may
renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 8–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 9–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $175,265 and $198,764, respectively.
Notes to Financial Statements (Unaudited) (continued)
Note 10–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 12,445,779 | $ 110,208,608 |
Shares issued to shareholders in reinvestment of distributions | 2,801,461 | 24,833,917 |
Shares redeemed | (9,544,041) | (84,535,735) |
Net increase (decrease) in shares outstanding before conversion | 5,703,199 | 50,506,790 |
Shares converted into Class A (See Note 1) | 332,307 | 2,950,918 |
Shares converted from Class A (See Note 1) | (26,717) | (237,247) |
Net increase (decrease) | 6,008,789 | $ 53,220,461 |
Year ended October 31, 2023: | | |
Shares sold | 29,660,554 | $ 259,073,096 |
Shares issued to shareholders in reinvestment of distributions | 4,535,788 | 39,624,570 |
Shares redeemed | (24,335,648) | (212,100,606) |
Net increase (decrease) in shares outstanding before conversion | 9,860,694 | 86,597,060 |
Shares converted into Class A (See Note 1) | 653,220 | 5,709,218 |
Shares converted from Class A (See Note 1) | (76,460) | (666,225) |
Net increase (decrease) | 10,437,454 | $ 91,640,053 |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 200,158 | $ 1,770,391 |
Shares issued to shareholders in reinvestment of distributions | 80,776 | 715,978 |
Shares redeemed | (133,667) | (1,184,246) |
Net increase (decrease) in shares outstanding before conversion | 147,267 | 1,302,123 |
Shares converted into Investor Class (See Note 1) | 40,973 | 362,404 |
Shares converted from Investor Class (See Note 1) | (256,603) | (2,279,407) |
Net increase (decrease) | (68,363) | $ (614,880) |
Year ended October 31, 2023: | | |
Shares sold | 366,136 | $ 3,196,355 |
Shares issued to shareholders in reinvestment of distributions | 158,344 | 1,382,777 |
Shares redeemed | (243,798) | (2,129,368) |
Net increase (decrease) in shares outstanding before conversion | 280,682 | 2,449,764 |
Shares converted into Investor Class (See Note 1) | 46,843 | 408,287 |
Shares converted from Investor Class (See Note 1) | (353,983) | (3,095,302) |
Net increase (decrease) | (26,458) | $ (237,251) |
|
Class B | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 1,921 | $ 16,930 |
Shares issued to shareholders in reinvestment of distributions | 655 | 5,801 |
Shares redeemed | (11,822) | (104,715) |
Net increase (decrease) in shares outstanding before conversion | (9,246) | (81,984) |
Shares converted from Class B (See Note 1) | (38,133) | (338,038) |
Net increase (decrease) | (47,379) | $ (420,022) |
Year ended October 31, 2023: | | |
Shares sold | 15,627 | $ 136,525 |
Shares issued to shareholders in reinvestment of distributions | 2,980 | 26,053 |
Shares redeemed | (18,403) | (160,726) |
Net increase (decrease) in shares outstanding before conversion | 204 | 1,852 |
Shares converted from Class B (See Note 1) | (16,990) | (148,518) |
Net increase (decrease) | (16,786) | $ (146,666) |
|
50 | MainStay Floating Rate Fund |
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 254,623 | $ 2,257,451 |
Shares issued to shareholders in reinvestment of distributions | 178,197 | 1,580,036 |
Shares redeemed | (871,453) | (7,722,838) |
Net increase (decrease) in shares outstanding before conversion | (438,633) | (3,885,351) |
Shares converted from Class C (See Note 1) | (84,416) | (748,371) |
Net increase (decrease) | (523,049) | $ (4,633,722) |
Year ended October 31, 2023: | | |
Shares sold | 1,027,146 | $ 8,965,639 |
Shares issued to shareholders in reinvestment of distributions | 382,406 | 3,340,107 |
Shares redeemed | (2,584,724) | (22,521,244) |
Net increase (decrease) in shares outstanding before conversion | (1,175,172) | (10,215,498) |
Shares converted from Class C (See Note 1) | (148,091) | (1,290,540) |
Net increase (decrease) | (1,323,263) | $ (11,506,038) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 13,825,372 | $ 122,542,111 |
Shares issued to shareholders in reinvestment of distributions | 2,510,422 | 22,251,224 |
Shares redeemed | (25,140,108) | (222,543,363) |
Net increase (decrease) in shares outstanding before conversion | (8,804,314) | (77,750,028) |
Shares converted into Class I (See Note 1) | 36,396 | 323,199 |
Shares converted from Class I (See Note 1) | (3,199) | (28,373) |
Net increase (decrease) | (8,771,117) | $ (77,455,202) |
Year ended October 31, 2023: | | |
Shares sold | 47,944,395 | $ 417,819,396 |
Shares issued to shareholders in reinvestment of distributions | 6,430,803 | 56,101,128 |
Shares redeemed | (119,984,501) | (1,042,874,690) |
Net increase (decrease) in shares outstanding before conversion | (65,609,303) | (568,954,166) |
Shares converted into Class I (See Note 1) | 74,860 | 652,282 |
Shares converted from Class I (See Note 1) | (134,653) | (1,184,095) |
Net increase (decrease) | (65,669,096) | $ (569,485,979) |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (b) | | |
Shares sold | 6,203 | $ 54,800 |
Shares issued to shareholders in reinvestment of distributions | 1,225 | 10,840 |
Shares redeemed | (131,146) | (1,164,460) |
Net increase (decrease) | (123,718) | $ (1,098,820) |
Year ended October 31, 2023: | | |
Shares sold | 54,334 | $ 474,247 |
Shares issued to shareholders in reinvestment of distributions | 3,966 | 34,653 |
Shares redeemed | (21,727) | (189,364) |
Net increase (decrease) | 36,573 | $ 319,536 |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,555,305 | $ 13,777,787 |
Shares issued to shareholders in reinvestment of distributions | 1,026,084 | 9,100,584 |
Shares redeemed | (3,940,158) | (34,931,222) |
Net increase (decrease) in shares outstanding before conversion | (1,358,769) | (12,052,851) |
Shares converted from Class R6 (See Note 1) | (572) | (5,085) |
Net increase (decrease) | (1,359,341) | $ (12,057,936) |
Year ended October 31, 2023: | | |
Shares sold | 3,742,287 | $ 32,595,005 |
Shares issued to shareholders in reinvestment of distributions | 2,467,779 | 21,549,959 |
Shares redeemed | (20,748,220) | (180,979,198) |
Net increase (decrease) in shares outstanding before conversion | (14,538,154) | (126,834,234) |
Shares converted from Class R6 (See Note 1) | (44,493) | (385,107) |
Net increase (decrease) | (14,582,647) | $ (127,219,341) |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 10,131 | $ 89,594 |
Shares issued to shareholders in reinvestment of distributions | 955 | 8,472 |
Net increase (decrease) | 11,086 | $ 98,066 |
Year ended October 31, 2023: | | |
Shares sold | 12,509 | $ 108,939 |
Shares issued to shareholders in reinvestment of distributions | 740 | 6,483 |
Net increase (decrease) | 13,249 | $ 115,422 |
(a) | Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and are no longer offered for sale as of February 20, 2024. |
(b) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Notes to Financial Statements (Unaudited) (continued)
Note 11–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 12–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
52 | MainStay Floating Rate Fund |
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay Floating Rate Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”) and the Subadvisory Agreement between New York Life Investments and NYL Investors LLC (“NYL Investors”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and NYL Investors in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and NYL Investors in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or NYL Investors that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, NYL Investors personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and NYL Investors; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and NYL Investors; (iii) the costs of the services provided, and profits realized, by New York Life Investments and NYL Investors with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and NYL Investors. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and NYL Investors resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and NYL Investors
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by NYL Investors, evaluating the performance of NYL Investors, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of NYL Investors and ongoing analysis of, and interactions with, NYL Investors with respect to, among other things, the Fund’s investment performance and risks as well as NYL Investors’ investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that NYL Investors provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated NYL Investors’ experience and performance in serving as subadvisor to the Fund and advising other portfolios and NYL Investors’ track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at NYL Investors. The Board considered New York Life Investments’ and NYL Investors’ overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and NYL Investors and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered NYL Investors’ ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and NYL Investors regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided
54 | MainStay Floating Rate Fund |
to the Board throughout the year. These reports include, among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of NYL Investors and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and NYL Investors
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because NYL Investors is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and NYL Investors in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and NYL Investors, and profitability of New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including NYL Investors’, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and NYL Investors and
acknowledged that New York Life Investments and NYL Investors must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and NYL Investors to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund, including reputational and other indirect benefits. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including NYL Investors, due to their relationships with
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including NYL Investors, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to NYL Investors is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and NYL Investors on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the
investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
56 | MainStay Floating Rate Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023 through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments, (iii) the Fund's investment strategy continues to be appropriate for an open-end and (iv) as applicable, the Fund's highly liquid investment minimum ("HLIM") operated effectively and was adequate and effective as one element of the Fund's liquidity risk management. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a HLIM. In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
58 | MainStay Floating Rate Fund |
Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022206 MS081-24 | MSFR10-06/24 |
(NYLIM) NL225
MainStay MacKay California Tax Free Opportunities Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 3.00% Initial Sales Charge | With sales charges | 2/28/2013 | 5.77% | 0.77% | 0.25% | 2.62% | 0.77% |
| | Excluding sales charges | | 9.05 | 3.89 | 1.18 | 3.10 | 0.77 |
Investor Class Shares4, 5 | Maximum 2.50% Initial Sales Charge | With sales charges | 2/28/2013 | 6.30 | 1.16 | 0.23 | 2.59 | 0.80 |
| | Excluding sales charges | | 9.03 | 3.75 | 1.15 | 3.06 | 0.80 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 2/28/2013 | 7.89 | 2.49 | 0.90 | 2.80 | 1.05 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 8.89 | 3.49 | 0.90 | 2.80 | 1.05 |
Class C2 Shares | Maximum 1.00% CDSC | With sales charges | 8/31/2020 | 7.81 | 2.33 | N/A | -0.69 | 1.20 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 8.81 | 3.33 | N/A | -0.69 | 1.20 |
Class I Shares | No Sales Charge | | 2/28/2013 | 9.18 | 4.15 | 1.43 | 3.36 | 0.52 |
Class R6 Shares | No Sales Charge | | 11/1/2019 | 9.30 | 4.16 | N/A | 0.70 | 0.48 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to August 10, 2022, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
5. | Prior to August 10, 2022, the maximum initial sales charge was 4.00%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg Municipal Bond Index2 | 7.06% | 2.08% | 1.26% | 2.41% |
Bloomberg California Municipal Bond Index3 | 6.67 | 2.08 | 1.25 | 2.41 |
Morningstar Muni California Long Category Average4 | 9.21 | 2.86 | 0.93 | 2.40 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg Municipal Bond Index, which represents a broad measure of market performance, as a replacement for the Bloomberg California Municipal Bond Index. The Bloomberg Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year. Bonds subject to the alternative minimum tax or with floating or zero coupons are excluded. |
3. | The Bloomberg California Municipal Bond Index, which is generally representative of the market sectors or types of investments in which the Fund invests, is a market value-weighted index of California investment grade tax exempt fixed-rate municipal bonds with maturities of one year or more. |
4. | The Morningstar Muni California Long Category Average is representative of funds that invest at least 80% of assets in California municipal debt. These funds have durations of more than 7.0 years. Results are based on average total returns of similar funds with all dividends 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 MacKay California Tax Free Opportunities Fund |
Cost in Dollars of a $1,000 Investment in MainStay MacKay California Tax Free Opportunities Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,090.50 | $3.90 | $1,021.13 | $3.77 | 0.75% |
Investor Class Shares | $1,000.00 | $1,090.30 | $4.05 | $1,020.98 | $3.92 | 0.78% |
Class C Shares | $1,000.00 | $1,088.90 | $5.35 | $1,019.74 | $5.17 | 1.03% |
Class C2 Shares | $1,000.00 | $1,088.10 | $6.13 | $1,019.00 | $5.92 | 1.18% |
Class I Shares | $1,000.00 | $1,091.80 | $2.60 | $1,022.38 | $2.51 | 0.50% |
Class R6 Shares | $1,000.00 | $1,093.00 | $2.50 | $1,022.48 | $2.41 | 0.48% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
General Obligation | 34.1% |
Other Revenue | 23.3 |
Transportation | 11.6 |
Water & Sewer | 8.3 |
Utilities | 6.8 |
Hospital | 5.0 |
Education | 4.5 |
General | 2.5% |
Housing | 1.5 |
Certificate of Participation/Lease | 1.3 |
Short–Term Investment | 1.4 |
Other Assets, Less Liabilities | –0.3 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | State of California, 4.00%-5.25%, due 11/1/28–4/1/49 |
2. | California Municipal Finance Authority, 3.50%-6.375%, due 8/1/26–6/15/64 |
3. | California Community Choice Financing Authority, 4.00%-5.50%, due 2/1/52–10/1/54 |
4. | California Health Facilities Financing Authority, 4.00%-5.25%, due 9/1/30–12/1/49 |
5. | Southern California Public Power Authority, 5.201%-5.25%, due 11/1/38–7/1/53 |
6. | Puerto Rico Commonwealth Aqueduct & Sewer Authority, 5.00%, due 7/1/33–7/1/47 |
7. | City of Los Angeles, 4.00%-5.50%, due 5/15/29–5/15/47 |
8. | Commonwealth of Puerto Rico, (zero coupon)-5.75%, due 7/1/27–11/1/51 |
9. | California Infrastructure & Economic Development Bank, 3.00%-5.00%, due 8/1/29–1/1/56 |
10. | Los Angeles Department of Water & Power, 3.90%-5.00%, due 7/1/34–7/1/49 |
8 | MainStay MacKay California Tax Free Opportunities Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Municipal Bonds 98.9% |
Long-Term Municipal Bonds 96.7% |
Certificate of Participation/Lease 1.3% |
California Municipal Finance Authority, Palomar Health Obligated Group, Certificate of Participation | | |
Series A, Insured: AGM | | |
5.25%, due 11/1/52 | $ 6,380,000 | $ 6,755,206 |
Hayward Unified School District, Certificate of Participation | | |
5.25%, due 8/1/47 | 6,900,000 | 7,125,135 |
Oxnard School District, Property Acquisition and Improvement Project, Certificate of Participation | | |
Insured: BAM | | |
5.00%, due 8/1/45 (a) | 950,000 | 973,503 |
| | 14,853,844 |
Education 4.5% |
California Infrastructure & Economic Development Bank, Equitable School Revolving Fund LLC Obligated Group, Revenue Bonds | | |
Series B | | |
5.00%, due 11/1/44 | 350,000 | 362,490 |
California Infrastructure & Economic Development Bank, WFCS Portfolio Projects, Revenue Bonds (b) | | |
Series A-1 | | |
5.00%, due 1/1/55 | 2,540,000 | 2,135,907 |
Series A-1 | | |
5.00%, due 1/1/56 | 840,000 | 692,885 |
California Municipal Finance Authority, Charter School, King Chavez Academy, Revenue Bonds (b) | | |
Series A | | |
5.00%, due 5/1/36 | 1,275,000 | 1,278,838 |
Series A | | |
5.00%, due 5/1/46 | 1,325,000 | 1,302,440 |
California Municipal Finance Authority, Charter School, Palmdale Aerospace Academy Projects (The), Revenue Bonds (b) | | |
Series A | | |
5.00%, due 7/1/36 | 1,300,000 | 1,305,994 |
Series A | | |
5.00%, due 7/1/46 | 795,000 | 759,072 |
| Principal Amount | Value |
|
Education (continued) |
California Municipal Finance Authority, Claremont Graduate University, Revenue Bonds | | |
Series B | | |
5.00%, due 10/1/54 (b) | $ 1,380,000 | $ 1,280,485 |
California Municipal Finance Authority, Creative Center Los Altos Project (The), Revenue Bonds (b) | | |
Series B | | |
4.00%, due 11/1/36 | 400,000 | 355,950 |
Series B | | |
4.50%, due 11/1/46 | 1,600,000 | 1,356,485 |
California Municipal Finance Authority, University of San Diego, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/44 | 3,065,000 | 3,191,192 |
Series A | | |
5.00%, due 10/1/49 | 4,440,000 | 4,581,608 |
California Municipal Finance Authority, Westside Neighborhood School, Revenue Bonds | | |
6.375%, due 6/15/64 (b)(c) | 3,250,000 | 3,347,940 |
California Public Finance Authority, California University of Science & Medicine Obligated Group, Revenue Bonds | | |
Series A | | |
6.25%, due 7/1/54 (b) | 1,000,000 | 1,040,264 |
California School Finance Authority, Aspire Public Schools Obligated Group, Revenue Bonds (b) | | |
5.00%, due 8/1/27 | 475,000 | 479,180 |
5.00%, due 8/1/28 | 650,000 | 656,437 |
5.00%, due 8/1/36 | 550,000 | 553,916 |
5.00%, due 8/1/41 | 700,000 | 700,966 |
5.00%, due 8/1/46 | 1,695,000 | 1,675,136 |
California School Finance Authority, Classical Academies Project, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/37 (b) | 1,485,000 | 1,494,902 |
California School Finance Authority, Grimmway Schools Obligated Group, Revenue Bonds (b) | | |
Series A | | |
4.25%, due 7/1/28 | 1,240,000 | 1,239,049 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Education (continued) |
California School Finance Authority, Grimmway Schools Obligated Group, Revenue Bonds (b) (continued) | | |
Series A | | |
5.00%, due 7/1/46 | $ 750,000 | $ 744,981 |
California School Finance Authority, High Tech High Learning Project, Revenue Bonds (b) | | |
Series A | | |
5.00%, due 7/1/37 | 500,000 | 492,859 |
Series A | | |
5.00%, due 7/1/49 | 500,000 | 471,960 |
California School Finance Authority, Kipp Social Public Schools Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/34 (b) | 600,000 | 601,340 |
California School Finance Authority, Partnerships to Uplift Communities, Revenue Bonds | | |
5.50%, due 8/1/47 (b) | 525,000 | 533,318 |
California School Finance Authority, Teach Public Schools, Revenue Bonds (b) | | |
Series A | | |
5.00%, due 6/1/39 | 740,000 | 731,482 |
Series A | | |
5.00%, due 6/1/58 | 600,000 | 550,571 |
California School Finance Authority, Vista Charter Public Schools, Revenue Bonds | | |
Series A | | |
4.00%, due 6/1/51 (b) | 1,790,000 | 1,418,320 |
California Statewide Communities Development Authority, Lancer Plaza Project, Revenue Bonds | | |
5.875%, due 11/1/43 | 1,000,000 | 1,000,858 |
Irvine Unified School District, Community Facilities District No. 9, Special Tax | | |
Series A | | |
5.00%, due 9/1/36 | 545,000 | 581,868 |
University of California, Revenue Bonds | | |
Series BH | | |
4.00%, due 5/15/46 | 2,775,000 | 2,788,503 |
| Principal Amount | Value |
|
Education (continued) |
University of California, Revenue Bonds (continued) | | |
Series AV | | |
5.25%, due 5/15/42 | $ 5,000,000 | $ 5,267,296 |
Series BN | | |
5.50%, due 5/15/40 | 5,700,000 | 6,624,846 |
| | 51,599,338 |
General 2.5% |
California Municipal Finance Authority, Special Tax | | |
Series B | | |
4.00%, due 9/1/43 | 1,070,000 | 939,283 |
Series B | | |
4.00%, due 9/1/50 | 3,150,000 | 2,642,246 |
California Statewide Communities Development Authority, Special Assessment | | |
Series A | | |
4.00%, due 9/2/50 | 1,000,000 | 816,590 |
Series D | | |
5.50%, due 9/2/53 | 1,000,000 | 998,120 |
California Statewide Communities Development Authority, Community Facilities District No. 2021-02, Special Tax | | |
5.00%, due 9/1/53 | 1,000,000 | 1,016,910 |
City of Irvine, Community Facilities District No. 2013-3, Special Tax | | |
5.00%, due 9/1/49 | 1,385,000 | 1,386,710 |
City of Irvine, Community Facilities District No. 2013-3 Improvement Area No. 1, Special Tax | | |
Insured: BAM | | |
4.00%, due 9/1/58 | 700,000 | 663,373 |
City of Palm Desert, University Park, Special Tax | | |
3.00%, due 9/1/31 | 315,000 | 288,976 |
4.00%, due 9/1/41 | 450,000 | 404,097 |
City of San Mateo, Community Facilities District No. 2008-1, Special Tax | | |
Series 1, Insured: BAM | | |
5.25%, due 9/1/40 | 4,000,000 | 4,318,920 |
City of South San Francisco, Community Facilities District No. 2021-01, Special Tax | | |
4.00%, due 9/1/44 | 400,000 | 357,173 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay MacKay California Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
General (continued) |
Commonwealth of Puerto Rico | | |
(zero coupon), due 11/1/51 | $ 1,976,398 | $ 1,188,309 |
Mountain View Shoreline Regional Park Community, Tax Allocation | | |
Series A, Insured: AGM | | |
5.00%, due 8/1/36 | 1,645,000 | 1,762,049 |
River Islands Public Financing Authority, Community Facilities District No. 2003-1, Special Tax | | |
Series A-1, Insured: AGM | | |
5.00%, due 9/1/42 | 1,500,000 | 1,622,442 |
Series A-1, Insured: AGM | | |
5.25%, due 9/1/52 | 1,000,000 | 1,076,703 |
Romoland School District, Community Facilities District No. 2017-1 Improvement Area 2, Special Tax | | |
5.00%, due 9/1/54 | 1,600,000 | 1,596,800 |
Sacramento Area Flood Control Agency, Consolidated Capital Assessment District No. 2, Special Assessment | | |
4.00%, due 10/1/47 | 3,700,000 | 3,694,756 |
San Francisco City & County Redevelopment Agency Successor Agency, Transbay Infrastructure Project, Tax Allocation, Third Lien | | |
Series B, Insured: AGM | | |
5.00%, due 8/1/48 | 1,500,000 | 1,606,705 |
Series B, Insured: AGM | | |
5.25%, due 8/1/53 | 1,400,000 | 1,515,221 |
Tracy Community Facilities District, Community Facilities District No. 2016-01 Improvement Area No. 2, Special Tax | | |
5.75%, due 9/1/48 | 1,000,000 | 1,040,803 |
| | 28,936,186 |
General Obligation 34.1% |
Alhambra Unified School District, Unlimited General Obligation | | |
Series B | | |
4.25%, due 8/1/43 | 2,000,000 | 2,067,191 |
Series B | | |
5.25%, due 8/1/48 | 3,000,000 | 3,321,416 |
| Principal Amount | Value |
|
General Obligation (continued) |
Belmont-Redwood Shores School District, Unlimited General Obligation | | |
Series B | | |
4.00%, due 8/1/42 | $ 9,950,000 | $ 9,864,050 |
Cabrillo Unified School District, Election of 2018, Unlimited General Obligation | | |
Series B, Insured: AGM-CR | | |
5.00%, due 8/1/50 | 3,150,000 | 3,272,142 |
Carlsbad Unified School District, Election of 2018, Unlimited General Obligation | | |
Series B | | |
3.00%, due 8/1/46 | 1,000,000 | 780,482 |
Ceres Unified School District, Unlimited General Obligation | | |
Insured: BAM | | |
(zero coupon), due 8/1/37 | 500,000 | 289,590 |
Chabot-Las Positas Community College District, Unlimited General Obligation | | |
4.00%, due 8/1/37 | 3,000,000 | 3,014,063 |
Series C | | |
5.25%, due 8/1/48 | 1,250,000 | 1,395,255 |
Chaffey Joint Union High School District, Unlimited General Obligation | | |
Series C | | |
5.25%, due 8/1/47 | 3,500,000 | 3,627,699 |
City of Berkeley, Unlimited General Obligation | | |
2.00%, due 9/1/39 | 1,560,000 | 1,113,023 |
2.00%, due 9/1/40 | 1,590,000 | 1,102,535 |
Clovis Unified School District, Unlimited General Obligation | | |
Series B | | |
5.25%, due 8/1/41 | 1,100,000 | 1,212,838 |
Series B | | |
5.25%, due 8/1/42 | 1,000,000 | 1,098,580 |
Commonwealth of Puerto Rico | | |
(zero coupon), due 11/1/43 | 4,840,839 | 2,886,350 |
Commonwealth of Puerto Rico, Unlimited General Obligation | | |
Series A-1 | | |
4.00%, due 7/1/33 | 10,000,000 | 9,856,186 |
Series A-1 | | |
4.00%, due 7/1/35 | 3,350,000 | 3,249,903 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
General Obligation (continued) |
Commonwealth of Puerto Rico, Unlimited General Obligation (continued) | | |
Series A-1 | | |
5.625%, due 7/1/27 | $ 8,000,000 | $ 8,321,932 |
Series A-1 | | |
5.625%, due 7/1/29 | 2,000,000 | 2,158,095 |
Series A-1 | | |
5.75%, due 7/1/31 | 1,800,000 | 2,009,856 |
Denair Unified School District, Election of 2007, Unlimited General Obligation | | |
Insured: AGM | | |
(zero coupon), due 8/1/41 | 4,260,000 | 1,928,600 |
Desert Community College District, Unlimited General Obligation | | |
4.00%, due 8/1/42 | 2,815,000 | 2,883,356 |
4.00%, due 8/1/43 | 2,000,000 | 2,037,924 |
4.00%, due 8/1/51 | 2,500,000 | 2,432,034 |
El Rancho Unified School District, Election of 2016, Unlimited General Obligation | | |
Series A, Insured: BAM | | |
5.25%, due 8/1/46 | 2,745,000 | 2,839,076 |
El Segundo Unified School District, Election of 2018, Unlimited General Obligation | | |
Series C | | |
4.00%, due 8/1/50 | 500,000 | 494,625 |
Elk Grove Unified School District, Unlimited General Obligation | | |
2.00%, due 8/1/40 | 3,740,000 | 2,540,267 |
Etiwanda School District, Unlimited General Obligation | | |
Series C | | |
5.25%, due 8/1/52 | 5,675,000 | 6,240,960 |
Foothill-De Anza Community College District, Unlimited General Obligation | | |
4.00%, due 8/1/40 | 3,470,000 | 3,482,113 |
Fort Bragg Unified School District, Election of 2020, Unlimited General Obligation | | |
Series B | | |
5.50%, due 8/1/52 | 1,000,000 | 1,082,269 |
| Principal Amount | Value |
|
General Obligation (continued) |
Fremont Union High School District, Unlimited General Obligation | | |
Series B | | |
5.00%, due 8/1/32 | $ 3,260,000 | $ 3,471,331 |
Glendale Community College District, Election of 2016, Unlimited General Obligation | | |
Series B | | |
3.00%, due 8/1/47 | 4,500,000 | 3,447,707 |
Hartnell Community College District, Unlimited General Obligation | | |
Series A | | |
(zero coupon), due 8/1/37 | 2,500,000 | 1,355,336 |
Healdsburg Unified School District, Unlimited General Obligation | | |
Series A | | |
4.60%, due 8/1/37 (a) | 4,405,000 | 4,556,296 |
Inglewood Unified School District, Election of 2020, Unlimited General Obligation | | |
Series A, Insured: AGM | | |
4.00%, due 8/1/51 | 2,750,000 | 2,662,168 |
Jurupa Unified School District, Unlimited General Obligation | | |
Series B | | |
5.00%, due 8/1/37 | 1,000,000 | 1,053,208 |
Kern Community College District, Election of 2016, Unlimited General Obligation | | |
Series C | | |
3.00%, due 8/1/46 | 5,000,000 | 3,976,382 |
Series D | | |
5.25%, due 8/1/33 | 1,000,000 | 1,192,006 |
Series D | | |
5.25%, due 8/1/34 | 700,000 | 832,641 |
Series D | | |
5.25%, due 8/1/38 | 2,000,000 | 2,311,098 |
Series D | | |
5.25%, due 8/1/39 | 1,400,000 | 1,614,880 |
Series D | | |
5.25%, due 8/1/40 | 2,200,000 | 2,511,403 |
La Mesa-Spring Valley School District, Unlimited General Obligation | | |
Series B | | |
5.00%, due 8/1/47 | 1,100,000 | 1,177,433 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay MacKay California Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
General Obligation (continued) |
Long Beach Unified School District, Unlimited General Obligation | | |
Series C | | |
4.00%, due 8/1/50 | $ 12,550,000 | $ 12,335,478 |
Los Angeles Community College District, Election of 2022, Unlimited General Obligation | | |
Series A-2 | | |
5.50%, due 8/1/24 | 3,000,000 | 2,998,803 |
Los Angeles Unified School District, Unlimited General Obligation | | |
Series A | | |
5.00%, due 7/1/25 | 1,000,000 | 1,018,512 |
Series A | | |
5.00%, due 7/1/26 | 6,500,000 | 6,738,938 |
Series QRR | | |
5.25%, due 7/1/40 | 3,500,000 | 4,057,753 |
Series QRR | | |
5.25%, due 7/1/47 | 7,500,000 | 8,330,100 |
Los Banos Unified School District, Election of 2018, Unlimited General Obligation | | |
5.25%, due 8/1/49 | 2,500,000 | 2,739,016 |
Manteca Unified School District, Unlimited General Obligation | | |
Series B | | |
5.25%, due 8/1/53 | 2,000,000 | 2,187,904 |
Marysville Joint Unified School District, Election 2008, Unlimited General Obligation | | |
Insured: AGM | | |
(zero coupon), due 8/1/35 | 1,500,000 | 948,475 |
Insured: AGM | | |
(zero coupon), due 8/1/36 | 2,000,000 | 1,200,586 |
Insured: AGM | | |
(zero coupon), due 8/1/37 | 2,000,000 | 1,141,354 |
Montebello Unified School District, Unlimited General Obligation | | |
Series B, Insured: AGM | | |
5.50%, due 8/1/47 | 1,500,000 | 1,623,569 |
Monterey Peninsula Community College District, Unlimited General Obligation | | |
Series B | | |
4.00%, due 8/1/41 | 475,000 | 487,011 |
Series B | | |
4.00%, due 8/1/51 | 4,000,000 | 3,916,801 |
| Principal Amount | Value |
|
General Obligation (continued) |
Mount San Antonio Community College District, Unlimited General Obligation | | |
Series A | | |
4.00%, due 8/1/49 | $ 2,000,000 | $ 1,968,808 |
Series A | | |
5.00%, due 8/1/41 | 305,000 | 328,988 |
Mount San Jacinto Community College District, Election 2014, Unlimited General Obligation | | |
Series B | | |
4.00%, due 8/1/38 | 1,985,000 | 2,007,329 |
Needles Unified School District, Capital Appreciation, Election 2008, Unlimited General Obligation | | |
Series B, Insured: AGM | | |
(zero coupon), due 8/1/45 (a) | 1,250,000 | 1,056,265 |
North Orange County Community College District, Election of 2014, Unlimited General Obligation | | |
Series C | | |
4.00%, due 8/1/47 | 4,750,000 | 4,719,098 |
Oakland Unified School District, Alameda County, Unlimited General Obligation | | |
Series A, Insured: AGM | | |
5.25%, due 8/1/39 | 2,240,000 | 2,586,751 |
Series A, Insured: AGM | | |
5.25%, due 8/1/40 | 1,600,000 | 1,837,654 |
Series A, Insured: AGM | | |
5.25%, due 8/1/43 | 3,000,000 | 3,395,123 |
Ocean View School District of Orange County, Unlimited General Obligation | | |
Series C, Insured: AGM | | |
3.00%, due 8/1/47 | 3,040,000 | 2,308,735 |
Ojai Unified School District, Unlimited General Obligation | | |
Series B, Insured: AGM | | |
5.25%, due 8/1/48 | 1,100,000 | 1,204,592 |
Series B, Insured: AGM | | |
5.50%, due 8/1/53 | 1,750,000 | 1,934,384 |
Ontario Montclair School District, Election of 2016, Unlimited General Obligation | | |
Series C | | |
5.25%, due 8/1/52 | 3,000,000 | 3,325,837 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
General Obligation (continued) |
Oxnard Union High School District, Unlimited General Obligation | | |
Series C | | |
3.50%, due 8/1/45 | $ 1,250,000 | $ 1,113,433 |
Palo Alto Unified School District, Unlimited General Obligation | | |
3.25%, due 7/1/35 | 3,700,000 | 3,491,949 |
Palomar Community College District, Election of 2006, Unlimited General Obligation | | |
Series B | | |
(zero coupon), due 8/1/39 (a) | 2,000,000 | 2,278,554 |
Peralta Community College District, Unlimited General Obligation | | |
Series B | | |
5.50%, due 8/1/52 | 2,000,000 | 2,239,032 |
Ravenswood City School District, Election 2018, Unlimited General Obligation | | |
Insured: AGM | | |
5.25%, due 8/1/45 | 3,500,000 | 3,812,117 |
Rio Hondo Community College District, Election 2004, Unlimited General Obligation | | |
Series C | | |
(zero coupon), due 8/1/42 (a) | 2,000,000 | 2,511,134 |
Sacramento City Unified School District, Election of 2020, Unlimited General Obligation | | |
Series A, Insured: BAM | | |
5.00%, due 8/1/40 | 1,960,000 | 2,113,988 |
Series A, Insured: BAM | | |
5.50%, due 8/1/52 | 4,500,000 | 4,875,382 |
Salinas Union High School District, Unlimited General Obligation | | |
Series A | | |
4.00%, due 8/1/47 | 4,300,000 | 4,297,785 |
San Bernardino Community College District, Election of 2018, Unlimited General Obligation | | |
Series B | | |
4.125%, due 8/1/49 | 5,000,000 | 5,001,473 |
San Diego Unified School District, Election of 2012, Unlimited General Obligation | | |
Series R-2 | | |
(zero coupon), due 7/1/41 (a) | 4,360,000 | 4,132,633 |
| Principal Amount | Value |
|
General Obligation (continued) |
San Diego Unified School District, Election of 2012, Unlimited General Obligation (continued) | | |
Series B-4 | | |
5.00%, due 7/1/40 | $ 2,690,000 | $ 3,058,276 |
San Diego Unified School District, Election of 2018, Unlimited General Obligation | | |
Series F-2 | | |
5.00%, due 7/1/40 | 3,020,000 | 3,402,876 |
San Diego Unified School District, Election of 2022, Unlimited General Obligation | | |
Series A-3 | | |
4.00%, due 7/1/53 | 6,640,000 | 6,509,794 |
Series A-3 | | |
5.00%, due 7/1/48 | 2,665,000 | 2,923,266 |
San Francisco Bay Area Rapid Transit District, Election of 2016, Unlimited General Obligation | | |
Series C-1 | | |
2.00%, due 8/1/41 | 3,585,000 | 2,382,262 |
Series D-1 | | |
5.25%, due 8/1/47 | 6,750,000 | 7,490,455 |
San Jose Evergreen Community College District, Election of 2016, Unlimited General Obligation | | |
Series C | | |
5.00%, due 9/1/39 | 3,000,000 | 3,415,013 |
Series C | | |
5.00%, due 9/1/40 | 2,575,000 | 2,894,960 |
San Juan Unified School District, Election 2016, Unlimited General Obligation | | |
5.00%, due 8/1/36 | 1,500,000 | 1,692,093 |
5.00%, due 8/1/38 | 1,800,000 | 1,998,187 |
San Luis Obispo County Community College District, Unlimited General Obligation | | |
Series B | | |
4.00%, due 8/1/43 | 2,250,000 | 2,240,234 |
San Marcos Unified School District, Unlimited General Obligation | | |
Series B | | |
(zero coupon), due 8/1/51 | 21,090,000 | 6,179,811 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay MacKay California Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
General Obligation (continued) |
San Mateo Foster City School District, Unlimited General Obligation | | |
Series B | | |
5.00%, due 8/1/40 | $ 1,000,000 | $ 1,123,036 |
Series B | | |
5.00%, due 8/1/41 | 1,150,000 | 1,284,646 |
San Rafael City Elementary School District, Election of 2022, Unlimited General Obligation | | |
Series A | | |
5.25%, due 8/1/52 | 1,250,000 | 1,351,499 |
San Rafael City High School District, Unlimited General Obligation | | |
Series B | | |
4.00%, due 8/1/53 | 5,750,000 | 5,635,446 |
San Rafael City High School District, Election of 2022, Unlimited General Obligation | | |
Series A | | |
5.25%, due 8/1/52 | 4,250,000 | 4,575,495 |
San Ysidro School District, Unlimited General Obligation | | |
Insured: AGM | | |
(zero coupon), due 8/1/47 | 3,000,000 | 907,424 |
Santa Barbara Unified School District, Election of 2010, Unlimited General Obligation | | |
Series A | | |
7.00%, due 8/1/36 (a) | 1,000,000 | 1,334,115 |
Santa Clarita Community College District, Election of 2016, Unlimited General Obligation | | |
5.25%, due 8/1/48 | 2,000,000 | 2,203,785 |
Santa Cruz City High School District, Unlimited General Obligation | | |
Series A | | |
4.00%, due 8/1/40 | 4,000,000 | 4,012,604 |
Savanna School District, Unlimited General Obligation | | |
Series B, Insured: AGM | | |
(zero coupon), due 2/1/52 (a) | 3,080,000 | 2,371,692 |
South San Francisco Unified School District, Unlimited General Obligation | | |
4.00%, due 9/1/52 | 10,000,000 | 9,801,309 |
| Principal Amount | Value |
|
General Obligation (continued) |
State of California, Various Purpose, Unlimited General Obligation | | |
4.00%, due 3/1/36 | $ 3,395,000 | $ 3,521,765 |
4.00%, due 10/1/36 | 4,150,000 | 4,326,887 |
4.00%, due 11/1/36 | 2,500,000 | 2,599,101 |
4.00%, due 10/1/37 | 4,000,000 | 4,130,566 |
4.00%, due 10/1/37 | 4,445,000 | 4,590,091 |
4.00%, due 11/1/38 | 4,775,000 | 4,887,673 |
4.00%, due 10/1/39 | 3,500,000 | 3,563,338 |
4.00%, due 3/1/40 | 5,000,000 | 5,051,852 |
4.00%, due 9/1/42 | 6,250,000 | 6,270,877 |
4.00%, due 4/1/49 | 1,895,000 | 1,867,875 |
5.00%, due 11/1/28 | 5,000,000 | 5,412,357 |
5.00%, due 11/1/30 | 4,500,000 | 5,051,196 |
5.00%, due 9/1/32 | 1,840,000 | 2,091,715 |
5.00%, due 4/1/38 | 5,000,000 | 5,009,372 |
5.00%, due 9/1/41 | 3,550,000 | 3,872,728 |
5.25%, due 9/1/47 | 8,450,000 | 9,321,382 |
Stockton Unified School District, Unlimited General Obligation | | |
Insured: BAM | | |
5.00%, due 8/1/27 (c) | 510,000 | 538,081 |
Sunnyvale School District, Unlimited General Obligation | | |
Series B | | |
5.00%, due 9/1/48 | 2,820,000 | 3,047,516 |
Ukiah Unified School District, Election of 2020, Unlimited General Obligation | | |
Series B, Insured: AGM | | |
5.50%, due 8/1/53 | 2,500,000 | 2,795,046 |
Vista Unified School District, Election of 2018, Unlimited General Obligation | | |
Series B, Insured: BAM | | |
5.25%, due 8/1/48 | 1,385,000 | 1,530,251 |
Washington Township Health Care District, Unlimited General Obligation | | |
Series B | | |
5.25%, due 8/1/36 | 500,000 | 571,714 |
Series B | | |
5.25%, due 8/1/40 | 880,000 | 980,351 |
Series B | | |
5.25%, due 8/1/48 | 500,000 | 547,947 |
Series B | | |
5.50%, due 8/1/53 | 2,000,000 | 2,207,487 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
General Obligation (continued) |
West Contra Costa Unified School District, Unlimited General Obligation | | |
Series A-1, Insured: AGM | | |
3.00%, due 8/1/51 | $ 2,000,000 | $ 1,517,132 |
| | 393,122,221 |
Hospital 5.0% |
California Health Facilities Financing Authority, Cedars-Sinai Health System, Revenue Bonds | | |
Series A | | |
4.00%, due 8/15/40 | 5,000,000 | 5,034,535 |
Series A, Insured: BAM | | |
4.00%, due 8/15/48 | 4,145,000 | 4,157,889 |
California Health Facilities Financing Authority, Children's Hospital Los Angeles Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 8/15/47 | 1,500,000 | 1,520,110 |
California Health Facilities Financing Authority, Children's Hospital of Orange County Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 11/1/49 | 2,250,000 | 2,435,454 |
California Health Facilities Financing Authority, CommonSpirit Health Obligated Group, Revenue Bonds | | |
Series A | | |
5.25%, due 12/1/49 | 3,000,000 | 3,272,277 |
California Health Facilities Financing Authority, El Camino Hospital, Revenue Bonds | | |
5.00%, due 2/1/47 | 6,500,000 | 6,620,927 |
California Health Facilities Financing Authority, Kaiser Foundation Hospitals, Revenue Bonds | | |
Series A-2 | | |
4.00%, due 11/1/44 | 5,000,000 | 4,893,748 |
California Health Facilities Financing Authority, Scripps Health System, Revenue Bonds | | |
Series A | | |
5.00%, due 11/15/37 | 5,550,000 | 6,380,746 |
| Principal Amount | Value |
|
Hospital (continued) |
California Public Finance Authority, Hoag Memorial Hospital Presbyterian, Revenue Bonds | | |
Series A | | |
4.00%, due 7/15/51 | $ 6,925,000 | $ 6,748,874 |
Series A | | |
5.00%, due 7/15/46 | 1,515,000 | 1,639,822 |
California Statewide Communities Development Authority, Adventist Health System/West Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 3/1/35 | 600,000 | 612,238 |
California Statewide Communities Development Authority, Enloe Medical Center Obligated Group, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 8/15/42 | 1,000,000 | 1,073,387 |
Series A, Insured: AGM | | |
5.25%, due 8/15/52 | 3,000,000 | 3,189,712 |
Regents of the University of California Medical Center, Pooled, Revenue Bonds | | |
Series P | | |
5.00%, due 5/15/47 | 7,400,000 | 7,990,817 |
Washington Township Health Care District, Revenue Bonds | | |
Series B | | |
4.00%, due 7/1/36 | 1,380,000 | 1,268,364 |
Series A | | |
5.00%, due 7/1/41 | 400,000 | 397,770 |
Series A | | |
5.00%, due 7/1/42 | 380,000 | 374,980 |
Series A | | |
5.00%, due 7/1/43 | 300,000 | 293,750 |
Series A | | |
5.75%, due 7/1/48 | 300,000 | 323,899 |
| | 58,229,299 |
Housing 1.5% |
California Community College Financing Authority, Orange Coast College Project, Revenue Bonds | | |
5.00%, due 5/1/27 | 280,000 | 290,076 |
5.00%, due 5/1/28 | 250,000 | 261,973 |
5.00%, due 5/1/29 | 1,470,000 | 1,538,733 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay MacKay California Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Housing (continued) |
California Municipal Finance Authority, Mobile Home Park Caritas Project, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 8/15/42 | $ 1,540,000 | $ 1,417,181 |
California Municipal Finance Authority, P3 Claremont Holdings LLC, Claremont Colleges Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/40 (b) | 1,000,000 | 954,046 |
California Municipal Finance Authority, Windsor Mobile Country Club, Revenue Bonds | | |
Series A | | |
4.00%, due 11/15/37 | 1,320,000 | 1,286,439 |
California School Finance Authority, Sonoma County Junior College Project, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/36 (b) | 2,000,000 | 1,886,898 |
California Statewide Communities Development Authority, Irvine Campus Apartments, Revenue Bonds | | |
5.00%, due 5/15/50 | 3,500,000 | 3,504,700 |
Hastings Campus Housing Finance Authority, Green Bond, Revenue Bonds, Senior Lien (b) | | |
Series A | | |
5.00%, due 7/1/45 | 3,150,000 | 2,913,451 |
Series A | | |
5.00%, due 7/1/61 | 3,850,000 | 3,451,721 |
| | 17,505,218 |
Other Revenue 23.3% |
Alameda County Transportation Commission, Measure BB, Revenue Bonds, Senior Lien | | |
Series BB | | |
5.00%, due 3/1/45 | 2,500,000 | 2,738,654 |
California Community Choice Financing Authority, Clean Energy Project, Revenue Bonds | | |
Series B-1 | | |
4.00%, due 2/1/52 (d) | 4,725,000 | 4,671,317 |
| Principal Amount | Value |
|
Other Revenue (continued) |
California Community Choice Financing Authority, Clean Energy Project, Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 5/1/54 (d) | $ 16,900,000 | $ 17,879,365 |
Series E-2 | | |
5.228%, due 2/1/54 | 4,250,000 | 4,243,268 |
Series C | | |
5.25%, due 1/1/54 (d) | 12,325,000 | 12,864,709 |
Series F | | |
5.50%, due 10/1/54 (d) | 7,245,000 | 7,858,993 |
California Community Housing Agency, Essential Housing, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
4.00%, due 2/1/56 (b) | 6,285,000 | 5,160,486 |
California Community Housing Agency, Fountains at Emerald, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
3.00%, due 8/1/56 (b) | 2,700,000 | 1,879,436 |
California Community Housing Agency, Summit at Sausalito Apartments, Revenue Bonds | | |
Series A-1 | | |
3.00%, due 2/1/57 (b) | 500,000 | 340,885 |
California County Tobacco Securitization Agency, Golden Gate Tobacco Funding Corp., Asset-Backed, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/47 | 1,275,000 | 1,195,330 |
California County Tobacco Securitization Agency, Tobacco Settlement, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 6/1/34 | 300,000 | 310,891 |
Series A | | |
4.00%, due 6/1/36 | 300,000 | 307,979 |
Series A | | |
4.00%, due 6/1/37 | 275,000 | 280,190 |
Series A | | |
4.00%, due 6/1/38 | 275,000 | 278,847 |
Series A | | |
4.00%, due 6/1/39 | 350,000 | 353,271 |
Series A | | |
4.00%, due 6/1/49 | 2,500,000 | 2,370,795 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
California Health Facilities Financing Authority, Lundquist Institute For Biomedical Innovation, Revenue Bonds | | |
5.00%, due 9/1/30 | $ 1,300,000 | $ 1,331,533 |
5.00%, due 9/1/32 | 1,435,000 | 1,469,475 |
5.00%, due 9/1/34 | 1,590,000 | 1,626,916 |
California Infrastructure & Economic Development Bank, California Academy of Sciences, Revenue Bonds | | |
Series A | | |
3.25%, due 8/1/29 | 3,400,000 | 3,375,821 |
California Infrastructure & Economic Development Bank, DesertXpress Enterprises LLC, Revenue Bonds | | |
Series A | | |
3.95%, due 1/1/50 (b)(d)(e) | 5,650,000 | 5,649,804 |
California Infrastructure & Economic Development Bank, Infrastructure State Revolving Fund, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/47 | 5,000,000 | 5,492,983 |
California Infrastructure & Economic Development Bank, Los Angeles County Museum of Natural History Foundation, Revenue Bonds | | |
3.00%, due 7/1/50 | 3,735,000 | 2,817,224 |
California Municipal Finance Authority, Orange County Civic Center Infrastructure Program, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/37 | 2,085,000 | 2,224,343 |
California Municipal Finance Authority, Rancho Colus LP, Revenue Bonds | | |
Series A, Insured: HUD Sector 8 | | |
5.00%, due 8/1/26 (d) | 3,360,000 | 3,387,431 |
California Municipal Finance Authority, Republic Services, Inc., Revenue Bonds | | |
Series A | | |
4.375%, due 9/1/53 (d)(e) | 7,500,000 | 7,706,417 |
| Principal Amount | Value |
|
Other Revenue (continued) |
California Municipal Finance Authority, United Airlines, Inc. Project, Revenue Bonds | | |
4.00%, due 7/15/29 (e) | $ 8,500,000 | $ 8,452,251 |
California Municipal Finance Authority, Waste Management, Inc., Revenue Bonds | | |
4.10%, due 10/1/45 (d)(e) | 2,000,000 | 1,998,864 |
California State Public Works Board, State of California Department of General Services, Revenue Bonds | | |
Series A | | |
5.00%, due 4/1/40 | 1,500,000 | 1,681,826 |
California State Public Works Board, Various Capital Projects, Revenue Bonds | | |
Series C | | |
5.00%, due 11/1/44 | 3,735,000 | 3,953,102 |
Series D | | |
5.00%, due 11/1/46 | 7,025,000 | 7,634,582 |
California Statewide Communities Development Authority, California Baptist University, Revenue Bonds | | |
Series A | | |
6.375%, due 11/1/43 (b) | 500,000 | 500,634 |
California Statewide Communities Development Authority, Front Porch Communities & Services Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 4/1/42 | 2,000,000 | 1,898,654 |
California Statewide Financing Authority, TSR Multi-County Special Purpose Trust, Revenue Bonds | | |
Series A | | |
6.00%, due 5/1/43 | 1,230,000 | 1,257,191 |
Children's Trust Fund, Asset-Backed, Revenue Bonds | | |
Series A | | |
(zero coupon), due 5/15/50 | 1,500,000 | 276,463 |
City of Glendale, Electric, Revenue Bonds | | |
5.00%, due 2/1/47 | 3,855,000 | 4,231,139 |
City of Victorville, Electric, Revenue Bonds | | |
Series A | | |
5.00%, due 5/1/38 | 1,115,000 | 1,214,499 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay MacKay California Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
CMFA Special Finance Agency VIII, Elan Huntington Beach, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
3.00%, due 8/1/56 (b) | $ 2,000,000 | $ 1,329,281 |
CSCDA Community Improvement Authority, 1818 Platinum Triangle-Anaheim, Revenue Bonds, Senior Lien | | |
Series A-2 | | |
3.25%, due 4/1/57 (b) | 3,500,000 | 2,472,281 |
CSCDA Community Improvement Authority, Acacia on Santa Rosa Creek, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 10/1/56 (b) | 2,000,000 | 1,691,921 |
CSCDA Community Improvement Authority, Dublin, Revenue Bonds, Senior Lien | | |
Series A-2 | | |
3.00%, due 2/1/57 (b) | 1,250,000 | 856,813 |
CSCDA Community Improvement Authority, Pasadena Portfolio, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
2.65%, due 12/1/46 (b) | 1,230,000 | 940,084 |
Del Mar Race Track Authority, Revenue Bonds | | |
5.00%, due 10/1/30 | 1,000,000 | 1,000,133 |
Golden State Tobacco Securitization Corp., Tobacco Settlement, Revenue Bonds | | |
Series A-1 | | |
5.00%, due 6/1/51 | 7,165,000 | 7,411,294 |
Guam Economic Development & Commerce Authority, Tobacco Settlement Asset-Backed, Revenue Bonds | | |
Series A | | |
5.625%, due 6/1/47 | 1,025,000 | 1,001,070 |
Imperial Irrigation District, Electric System, Revenue Bonds | | |
5.00%, due 11/1/41 | 1,655,000 | 1,774,553 |
Indio Finance Authority, Revenue Bonds | | |
Series A, Insured: BAM | | |
4.50%, due 11/1/52 | 2,000,000 | 2,030,706 |
| Principal Amount | Value |
|
Other Revenue (continued) |
Indio Finance Authority, Revenue Bonds (continued) | | |
Series A, Insured: BAM | | |
5.25%, due 11/1/42 | $ 1,500,000 | $ 1,675,476 |
Lodi Public Financing Authority, Electric System, Revenue Bonds | | |
Insured: AGM | | |
5.00%, due 9/1/32 | 1,650,000 | 1,775,832 |
Los Angeles County Metropolitan Transportation Authority, Sales Tax, Revenue Bonds | | |
Series A | | |
4.00%, due 6/1/38 | 6,245,000 | 6,519,692 |
Los Angeles County Public Works Financing Authority, County of Los Angeles, Revenue Bonds | | |
Series G | | |
5.00%, due 12/1/41 | 5,965,000 | 6,566,243 |
Matching Fund Special Purpose Securitization Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/30 | 3,140,000 | 3,338,389 |
Series A | | |
5.00%, due 10/1/32 | 3,140,000 | 3,374,217 |
Series A | | |
5.00%, due 10/1/39 | 11,915,000 | 12,437,968 |
Modesto Irrigation District, Electric System, Revenue Bonds | | |
Series A | | |
5.25%, due 10/1/48 | 7,905,000 | 8,723,324 |
Municipal Improvement Corp. of Los Angeles, Revenue Bonds | | |
Series A | | |
5.00%, due 5/1/42 | 350,000 | 393,256 |
Series A | | |
5.00%, due 5/1/43 | 1,000,000 | 1,116,714 |
Northern California Energy Authority, Revenue Bonds | | |
5.00%, due 12/1/54 (d) | 11,910,000 | 12,614,267 |
Peninsula Corridor Joint Powers Board, Green Bond, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/47 | 4,750,000 | 5,135,151 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
Puerto Rico Sales Tax Financing Corp., Revenue Bonds | | |
Series A-1 | | |
(zero coupon), due 7/1/46 | $ 12,530,000 | $ 3,929,099 |
Series A-1 | | |
(zero coupon), due 7/1/51 | 5,390,000 | 1,235,894 |
Series A-2 | | |
4.329%, due 7/1/40 | 4,659,000 | 4,562,704 |
Series A-1 | | |
4.50%, due 7/1/34 | 1,500,000 | 1,505,829 |
Series A-2B | | |
4.55%, due 7/1/40 | 1,871,000 | 1,873,708 |
Series A-1 | | |
4.75%, due 7/1/53 | 5,866,000 | 5,739,623 |
Series A-2 | | |
4.784%, due 7/1/58 | 4,707,000 | 4,616,587 |
Series A-1 | | |
5.00%, due 7/1/58 | 2,991,078 | 2,991,431 |
Riverside County Transportation Commission, Sales Tax, Revenue Bonds | | |
Series B | | |
4.00%, due 6/1/36 | 3,500,000 | 3,602,368 |
San Bernardino County Financing Authority, Court House Facilities Project, Revenue Bonds | | |
Series C, Insured: NATL-RE | | |
5.50%, due 6/1/37 | 950,000 | 959,967 |
San Joaquin County Transportation Authority, Sales Tax Revenue, Revenue Bonds | | |
Series K | | |
5.00%, due 3/1/37 | 1,705,000 | 1,785,356 |
South Bayside Waste Management Authority, Green Bond, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 9/1/40 | 2,435,000 | 2,571,174 |
South San Francisco Public Facilities Financing Authority, Multiple Capital Projects at Orange Memorial Park, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/40 | 1,150,000 | 1,257,258 |
| Principal Amount | Value |
|
Other Revenue (continued) |
Southern California Public Power Authority, Southern Transmissional System Renewal Project, Revenue Bonds | | |
Series A | | |
5.201%, due 11/1/38 | $ 2,500,000 | $ 2,315,715 |
Stockton Public Financing Authority, Water Revenue, Green Bonds, Revenue Bonds | | |
Series A, Insured: BAM | | |
4.00%, due 10/1/37 | 2,500,000 | 2,519,771 |
Series A, Insured: BAM | | |
5.00%, due 10/1/32 | 1,275,000 | 1,378,335 |
Series A, Insured: BAM | | |
5.00%, due 10/1/34 | 1,500,000 | 1,619,245 |
Territory of Guam, Business Privilege Tax, Revenue Bonds | | |
Series D | | |
5.00%, due 11/15/27 | 2,000,000 | 2,026,923 |
Series D | | |
5.00%, due 11/15/33 | 2,495,000 | 2,524,276 |
Tobacco Securitization Authority of Northern California, Sacramento County Tobacco Securitization Corp., Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 6/1/49 | 3,000,000 | 2,755,447 |
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/29 (b) | 1,500,000 | 1,453,440 |
Series A | | |
5.00%, due 10/1/32 | 1,150,000 | 1,091,436 |
| | 269,409,819 |
Transportation 11.6% |
Alameda Corridor Transportation Authority, Revenue Bonds | | |
Series A, Insured: NATL-RE | | |
(zero coupon), due 10/1/36 | 3,000,000 | 1,838,560 |
Series C, Insured: AGM | | |
5.00%, due 10/1/52 | 3,500,000 | 3,721,905 |
Bay Area Toll Authority, Revenue Bonds | | |
Series S-7 | | |
4.00%, due 4/1/35 | 3,500,000 | 3,539,532 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay MacKay California Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Transportation (continued) |
California Municipal Finance Authority, LINXS APM Project, Revenue Bonds, Senior Lien (e) | | |
Series A, Insured: AGM | | |
3.50%, due 12/31/35 | $ 2,310,000 | $ 2,125,045 |
Series A | | |
5.00%, due 12/31/33 | 3,800,000 | 3,767,400 |
City of Long Beach, Airport System, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 6/1/33 | 550,000 | 639,122 |
Series A, Insured: AGM | | |
5.00%, due 6/1/34 | 410,000 | 476,207 |
Series A, Insured: AGM | | |
5.00%, due 6/1/36 | 800,000 | 918,502 |
Series A, Insured: AGM | | |
5.00%, due 6/1/37 | 750,000 | 851,331 |
Series A, Insured: AGM | | |
5.00%, due 6/1/38 | 750,000 | 843,895 |
Series A, Insured: AGM | | |
5.00%, due 6/1/39 | 500,000 | 558,032 |
Series B, Insured: AGM | | |
5.00%, due 6/1/40 | 750,000 | 830,836 |
City of Long Beach, Harbor, Revenue Bonds | | |
Series A | | |
5.00%, due 5/15/37 | 3,475,000 | 3,803,968 |
Series A | | |
5.00%, due 5/15/40 (e) | 4,915,000 | 5,065,226 |
City of Los Angeles, Department of Airports, Revenue Bonds (e) | | |
Series D | | |
5.00%, due 5/15/30 | 3,000,000 | 3,201,990 |
Series B | | |
5.00%, due 5/15/34 | 4,625,000 | 4,854,525 |
Series D | | |
5.00%, due 5/15/35 | 2,000,000 | 2,105,406 |
Series F | | |
5.00%, due 5/15/38 | 1,000,000 | 1,041,773 |
City of Los Angeles, Department of Airports, Revenue Bonds, Senior Lien (e) | | |
Series G | | |
4.00%, due 5/15/47 | 2,000,000 | 1,886,573 |
Series C | | |
5.00%, due 5/15/29 | 5,000,000 | 5,355,489 |
| Principal Amount | Value |
|
Transportation (continued) |
City of Los Angeles, Department of Airports, Revenue Bonds, Senior Lien (e) (continued) | | |
Series G | | |
5.50%, due 5/15/38 | $ 1,000,000 | $ 1,116,464 |
Series G | | |
5.50%, due 5/15/39 | 1,375,000 | 1,528,025 |
Series G | | |
5.50%, due 5/15/40 | 4,000,000 | 4,420,070 |
Series H | | |
5.50%, due 5/15/47 | 4,100,000 | 4,442,898 |
Foothill-Eastern Transportation Corridor Agency, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.50%, due 1/15/31 (a) | 2,000,000 | 2,286,324 |
Foothill-Eastern Transportation Corridor Agency, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 1/15/46 | 5,270,000 | 5,071,145 |
Norman Y Mineta San Jose International Airport SJC, Revenue Bonds (e) | | |
Series A | | |
5.00%, due 3/1/30 | 1,855,000 | 1,992,837 |
Series A | | |
5.00%, due 3/1/47 | 6,890,000 | 6,928,539 |
Oklahoma Turnpike Authority, Revenue Bonds | | |
5.50%, due 1/1/53 | 5,000,000 | 5,467,831 |
Ontario International Airport Authority, Revenue Bonds | | |
Series A, Insured: AGM | | |
4.00%, due 5/15/51 | 2,000,000 | 1,922,405 |
Port of Oakland, Revenue Bonds | | |
Series H | | |
5.00%, due 5/1/29 (e) | 1,900,000 | 2,023,226 |
San Diego County Regional Airport Authority, Revenue Bonds, Senior Lien (e) | | |
Series B | | |
5.00%, due 7/1/48 | 2,000,000 | 2,081,850 |
Series B | | |
5.25%, due 7/1/36 | 3,370,000 | 3,778,349 |
Series B | | |
5.25%, due 7/1/58 | 6,000,000 | 6,292,021 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Transportation (continued) |
San Francisco City & County Airport Commission, San Francisco International Airport, Revenue Bonds, Second Series (e) | | |
Series E | | |
5.00%, due 5/1/36 | $ 1,195,000 | $ 1,261,601 |
Series A | | |
5.00%, due 5/1/44 | 2,500,000 | 2,500,440 |
Series E | | |
5.00%, due 5/1/50 | 3,460,000 | 3,520,949 |
Series C | | |
5.75%, due 5/1/48 | 14,300,000 | 15,732,225 |
San Joaquin Hills Transportation Corridor Agency, Revenue Bonds, Junior Lien | | |
Series B | | |
5.25%, due 1/15/44 | 9,750,000 | 9,814,648 |
Series B | | |
5.25%, due 1/15/49 | 1,915,000 | 1,926,514 |
San Joaquin Hills Transportation Corridor Agency, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 1/15/50 | 2,948,000 | 2,766,817 |
| | 134,300,495 |
Utilities 4.6% |
City of Riverside, Electric, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/41 | 550,000 | 621,869 |
Series A | | |
5.00%, due 10/1/42 | 515,000 | 579,922 |
Guam Power Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/27 | 1,230,000 | 1,265,223 |
Series A | | |
5.00%, due 10/1/33 | 1,000,000 | 1,031,537 |
Series A | | |
5.00%, due 10/1/40 | 1,000,000 | 1,011,859 |
Modesto Irrigation District, Electric System, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/40 | 1,690,000 | 1,723,122 |
| Principal Amount | Value |
|
Utilities (continued) |
Puerto Rico Electric Power Authority, Revenue Bonds | | |
Series UU, Insured: AGC | | |
4.25%, due 7/1/27 | $ 460,000 | $ 449,614 |
Series UU, Insured: AGM | | |
5.00%, due 7/1/24 | 225,000 | 225,005 |
Series XX | | |
5.25%, due 7/1/40 (f)(g) | 1,000,000 | 265,000 |
Sacramento Municipal Utility District, Revenue Bonds | | |
Series H | | |
5.00%, due 8/15/38 | 4,340,000 | 4,796,207 |
Series M | | |
5.00%, due 11/15/44 | 750,000 | 832,273 |
Series M | | |
5.00%, due 11/15/45 | 2,000,000 | 2,209,701 |
Series M | | |
5.00%, due 11/15/49 | 2,000,000 | 2,175,694 |
San Francisco City & County Public Utilities Commission, Power, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/45 | 1,920,000 | 1,930,748 |
Southern California Public Power Authority, Southern Transmissional System Renewal Project, Revenue Bonds | | |
Series A-1 | | |
5.25%, due 7/1/53 | 17,500,000 | 19,258,818 |
Southern California Public Power Authority, Transmission Syetem Renewal, Revenue Bonds (c) | | |
Series 1 | | |
5.25%, due 7/1/46 | 5,855,000 | 6,601,713 |
Series 1 | | |
5.25%, due 7/1/49 | 7,500,000 | 8,386,584 |
| | 53,364,889 |
Water & Sewer 8.3% |
California Infrastructure & Economic Development Bank, Clean Water and Drinking Water, Revenue Bonds | | |
4.00%, due 10/1/40 | 3,500,000 | 3,649,233 |
4.00%, due 10/1/45 | 5,250,000 | 5,338,362 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay MacKay California Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Water & Sewer (continued) |
City of Oxnard, Wastewater, Revenue Bonds | | |
Insured: BAM | | |
4.00%, due 6/1/32 | $ 1,920,000 | $ 1,977,328 |
Insured: BAM | | |
4.00%, due 6/1/34 | 2,080,000 | 2,131,968 |
Insured: BAM | | |
5.00%, due 6/1/30 | 1,340,000 | 1,444,883 |
City of San Francisco, Public Utilities Commission Water, Revenue Bonds | | |
Series B | | |
5.25%, due 11/1/48 | 3,945,000 | 4,454,362 |
Series B | | |
5.25%, due 11/1/52 | 2,500,000 | 2,798,900 |
East Bay Municipal Utility District, Water System, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/37 | 3,000,000 | 3,454,128 |
Series A | | |
5.00%, due 6/1/38 | 1,800,000 | 2,058,370 |
Series A | | |
5.00%, due 6/1/49 | 3,500,000 | 3,706,464 |
Series A | | |
5.00%, due 6/1/49 | 5,000,000 | 5,472,270 |
Guam Government Waterworks Authority, Water and Wastewater System, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/50 | 2,500,000 | 2,548,772 |
Los Angeles Department of Water & Power, Water System, Revenue Bonds | | |
Series C | | |
5.00%, due 7/1/40 | 2,000,000 | 2,191,742 |
Series C | | |
5.00%, due 7/1/41 | 1,035,000 | 1,151,493 |
Series B | | |
5.00%, due 7/1/46 | 1,575,000 | 1,697,954 |
Series A | | |
5.00%, due 7/1/47 | 1,250,000 | 1,334,946 |
Series A | | |
5.00%, due 7/1/49 | 1,000,000 | 1,090,303 |
Metropolitan Water District of Southern California, Waterworks, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/45 | 510,000 | 546,263 |
| Principal Amount | Value |
|
Water & Sewer (continued) |
Metropolitan Water District of Southern California, Waterworks, Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 10/1/46 | $ 3,500,000 | $ 3,786,760 |
Oxnard Financing Authority, Waste Water, Revenue Bonds | | |
Insured: AGM | | |
5.00%, due 6/1/34 | 1,000,000 | 1,000,499 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/33 (b) | 1,330,000 | 1,414,620 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds, Senior Lien (b) | | |
Series 2020A | | |
5.00%, due 7/1/35 | 8,000,000 | 8,408,436 |
Series A | | |
5.00%, due 7/1/37 | 4,800,000 | 5,042,642 |
Series A | | |
5.00%, due 7/1/47 | 16,295,000 | 16,509,346 |
San Diego County Water Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 5/1/52 | 2,065,000 | 2,244,521 |
San Francisco City & County Public Utilities Commission, Wastewater, Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/39 | 7,295,000 | 7,247,953 |
Santa Margarita-Dana Point Authority, Water District Improvement, Revenue Bonds | | |
4.00%, due 8/1/36 | 2,025,000 | 2,066,572 |
Watereuse Finance Authority, Vallejo Sanitation And Flood Control District Refunding Program, Revenue Bonds | | |
Series A | | |
5.50%, due 5/1/36 | 500,000 | 500,000 |
| | 95,269,090 |
Total Long-Term Municipal Bonds (Cost $1,098,259,693) | | 1,116,590,399 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | | Value |
Short-Term Municipal Notes 2.2% |
Utilities 2.2% |
Los Angeles Department of Water & Power, Power System, Revenue Bonds | | | |
Series B-3 | | | |
3.90%, due 7/1/34 (h) | $ 20,000,000 | | $ 20,000,000 |
Sacramento Municipal Utility District, Revenue Bonds | | | |
Series C | | | |
3.85%, due 8/15/41 (h) | 5,000,000 | | 5,000,000 |
| | | 25,000,000 |
Total Short-Term Municipal Notes (Cost $25,000,000) | | | 25,000,000 |
Total Municipal Bonds (Cost $1,123,259,693) | | | 1,141,590,399 |
|
| Shares | | |
Short-Term Investment 1.4% |
Unaffiliated Investment Company 1.4% |
BlackRock Liquidity Funds MuniCash, 3.427% (i) | 16,606,226 | | 16,607,887 |
Total Short-Term Investment (Cost $16,607,887) | | | 16,607,887 |
Total Investments (Cost $1,139,867,580) | 100.3% | | 1,158,198,286 |
Other Assets, Less Liabilities | (0.3) | | (3,473,205) |
Net Assets | 100.0% | | $ 1,154,725,081 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | Step coupon—Rate shown was the rate in effect as of April 30, 2024. |
(b) | May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
(c) | Delayed delivery security. |
(d) | Coupon rate may change based on changes of the underlying collateral or prepayments of principal. Rate shown was the rate in effect as of April 30, 2024. |
(e) | Interest on these securities was subject to alternative minimum tax . |
(f) | Issue in default. |
(g) | Issue in non-accrual status. |
(h) | Variable-rate demand notes (VRDNs)—Provide the right to sell the security at face value on either that day or within the rate-reset period. VRDNs will normally trade as if the maturity is the earlier put date, even though stated maturity is longer. The interest rate is reset on the put date at a stipulated daily, weekly, monthly, quarterly, or other specified time interval to reflect current market conditions. These securities do not indicate a reference rate and spread in their description. The maturity date shown is the final maturity. |
(i) | Current yield as of April 30, 2024. |
Futures Contracts
As of April 30, 2024, the Fund held the following futures contracts1:
Type | Number of Contracts | Expiration Date | Value at Trade Date | Current Notional Amount | Unrealized Appreciation (Depreciation)2 |
Short Contracts | | | | | |
U.S. Treasury 10 Year Notes | (315) | June 2024 | $ (34,728,019) | $ (33,842,813) | $ 885,206 |
1. | As of April 30, 2024, cash in the amount of $669,375 was on deposit with a broker or futures commission merchant for futures transactions. |
2. | Represents the difference between the value of the contracts at the time they were opened and the value as of April 30, 2024. |
Abbreviation(s): |
AGC—Assured Guaranty Corp. |
AGM—Assured Guaranty Municipal Corp. |
BAM—Build America Mutual Assurance Co. |
CR—Custodial Receipts |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 | MainStay MacKay California Tax Free Opportunities Fund |
HUD—Housing and Urban Development |
NATL-RE—National Public Finance Guarantee Corp. |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Municipal Bonds | | | | | | | |
Long-Term Municipal Bonds | $ — | | $ 1,116,590,399 | | $ — | | $ 1,116,590,399 |
Short-Term Municipal Notes | — | | 25,000,000 | | — | | 25,000,000 |
Total Municipal Bonds | — | | 1,141,590,399 | | — | | 1,141,590,399 |
Short-Term Investment | | | | | | | |
Unaffiliated Investment Company | 16,607,887 | | — | | — | | 16,607,887 |
Total Investments in Securities | 16,607,887 | | 1,141,590,399 | | — | | 1,158,198,286 |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | 885,206 | | — | | — | | 885,206 |
Total Investments in Securities and Other Financial Instruments | $ 17,493,093 | | $ 1,141,590,399 | | $ — | | $ 1,159,083,492 |
(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 (depreciation) as shown on the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
25
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $1,139,867,580) | $1,158,198,286 |
Cash collateral on deposit at broker for futures contracts | 669,375 |
Receivables: | |
Interest | 13,517,278 |
Fund shares sold | 4,279,406 |
Investment securities sold | 2,027,370 |
Variation margin on futures contracts | 162,424 |
Other assets | 22,002 |
Total assets | 1,178,876,141 |
Liabilities |
Due to custodian | 148 |
Payables: | |
Investment securities purchased | 18,675,417 |
Fund shares redeemed | 4,151,271 |
Manager (See Note 3) | 421,089 |
NYLIFE Distributors (See Note 3) | 104,932 |
Transfer agent (See Note 3) | 70,983 |
Professional fees | 44,629 |
Custodian | 36,590 |
Accrued expenses | 21 |
Distributions payable | 645,980 |
Total liabilities | 24,151,060 |
Net assets | $1,154,725,081 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 119,756 |
Additional paid-in-capital | 1,270,754,824 |
| 1,270,874,580 |
Total distributable earnings (loss) | (116,149,499) |
Net assets | $1,154,725,081 |
Class A | |
Net assets applicable to outstanding shares | $439,319,051 |
Shares of beneficial interest outstanding | 45,565,150 |
Net asset value per share outstanding | $ 9.64 |
Maximum sales charge (3.00% of offering price) | 0.30 |
Maximum offering price per share outstanding | $ 9.94 |
Investor Class | |
Net assets applicable to outstanding shares | $ 378,054 |
Shares of beneficial interest outstanding | 39,206 |
Net asset value per share outstanding | $ 9.64 |
Maximum sales charge (2.50% of offering price) | 0.25 |
Maximum offering price per share outstanding | $ 9.89 |
Class C | |
Net assets applicable to outstanding shares | $ 32,534,242 |
Shares of beneficial interest outstanding | 3,373,775 |
Net asset value and offering price per share outstanding | $ 9.64 |
Class C2 | |
Net assets applicable to outstanding shares | $ 2,807,162 |
Shares of beneficial interest outstanding | 291,053 |
Net asset value and offering price per share outstanding | $ 9.64 |
Class I | |
Net assets applicable to outstanding shares | $653,634,331 |
Shares of beneficial interest outstanding | 67,788,275 |
Net asset value and offering price per share outstanding | $ 9.64 |
Class R6 | |
Net assets applicable to outstanding shares | $ 26,052,241 |
Shares of beneficial interest outstanding | 2,698,597 |
Net asset value and offering price per share outstanding | $ 9.65 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
26 | MainStay MacKay California Tax Free Opportunities Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $22,509,614 |
Expenses | |
Manager (See Note 3) | 2,464,016 |
Distribution/Service—Class A (See Note 3) | 531,771 |
Distribution/Service—Investor Class (See Note 3) | 514 |
Distribution/Service—Class C (See Note 3) | 81,991 |
Distribution/Service—Class C2 (See Note 3) | 8,723 |
Transfer agent (See Note 3) | 196,412 |
Professional fees | 65,967 |
Custodian | 28,952 |
Trustees | 12,877 |
Shareholder communication | 11,696 |
Registration | 8,251 |
Miscellaneous | 25,508 |
Total expenses before waiver/reimbursement | 3,436,678 |
Expense waiver/reimbursement from Manager (See Note 3) | (61,072) |
Net expenses | 3,375,606 |
Net investment income (loss) | 19,134,008 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | (2,865,185) |
Futures transactions | (118,236) |
Net realized gain (loss) | (2,983,421) |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 73,517,208 |
Futures contracts | 526,298 |
Net change in unrealized appreciation (depreciation) | 74,043,506 |
Net realized and unrealized gain (loss) | 71,060,085 |
Net increase (decrease) in net assets resulting from operations | $90,194,093 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
27
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 19,134,008 | $ 34,339,637 |
Net realized gain (loss) | (2,983,421) | (37,813,817) |
Net change in unrealized appreciation (depreciation) | 74,043,506 | 35,314,412 |
Net increase (decrease) in net assets resulting from operations | 90,194,093 | 31,840,232 |
Distributions to shareholders: | | |
Class A | (7,694,684) | (14,220,240) |
Investor Class | (7,398) | (16,900) |
Class C | (548,101) | (1,108,306) |
Class C2 | (42,680) | (52,634) |
Class I | (11,968,517) | (22,219,696) |
Class R6 | (367,405) | (211,293) |
Total distributions to shareholders | (20,628,785) | (37,829,069) |
Capital share transactions: | | |
Net proceeds from sales of shares | 313,036,554 | 602,509,072 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 16,722,888 | 28,989,054 |
Cost of shares redeemed | (246,525,844) | (615,175,105) |
Increase (decrease) in net assets derived from capital share transactions | 83,233,598 | 16,323,021 |
Net increase (decrease) in net assets | 152,798,906 | 10,334,184 |
Net Assets |
Beginning of period | 1,001,926,175 | 991,591,991 |
End of period | $1,154,725,081 | $1,001,926,175 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
28 | MainStay MacKay California Tax Free Opportunities Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.75 | | $ 10.76 | | $ 10.12 |
Net investment income (loss) | 0.16(a) | | 0.30(a) | | 0.23(a) | | 0.20(a) | | 0.23 | | 0.28 |
Net realized and unrealized gain (loss) | 0.65 | | 0.01 | | (1.87) | | 0.23 | | 0.03 | | 0.64 |
Total from investment operations | 0.81 | | 0.31 | | (1.64) | | 0.43 | | 0.26 | | 0.92 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.17) | | (0.33) | | (0.28) | | (0.24) | | (0.27) | | (0.28) |
Net asset value at end of period | $ 9.64 | | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.75 | | $ 10.76 |
Total investment return (b) | 9.05% | | 3.34% | | (15.22)% | | 4.05% | | 2.46% | | 9.20% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.35%†† | | 3.16% | | 2.23% | | 1.80% | | 1.97% | | 2.65% |
Net expenses (c) | 0.75%†† | | 0.75% | | 0.75% | | 0.74% | | 0.75% | | 0.75% |
Expenses (before waiver/reimbursement) (c) | 0.76%†† | | 0.77% | | 0.76% | | 0.76% | | 0.80% | | 0.81% |
Portfolio turnover rate | 20%(d) | | 66% | | 70%(d) | | 17%(d) | | 29%(d) | | 47%(d) |
Net assets at end of period (in 000’s) | $ 439,319 | | $ 389,291 | | $ 395,405 | | $ 444,628 | | $ 373,966 | | $ 292,589 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.76 | | $ 10.76 | | $ 10.12 |
Net investment income (loss) | 0.16(a) | | 0.30(a) | | 0.22(a) | | 0.18(a) | | 0.23 | | 0.28 |
Net realized and unrealized gain (loss) | 0.65 | | 0.01 | | (1.86) | | 0.24 | | 0.04 | | 0.64 |
Total from investment operations | 0.81 | | 0.31 | | (1.64) | | 0.42 | | 0.27 | | 0.92 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.17) | | (0.33) | | (0.28) | | (0.24) | | (0.27) | | (0.28) |
Net asset value at end of period | $ 9.64 | | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.76 | | $ 10.76 |
Total investment return (b) | 9.03% | | 3.31% | | (15.24)% | | 3.93% | | 2.53% | | 9.18% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.33%†† | | 3.14% | | 2.22% | | 1.61% | | 1.95% | | 2.65% |
Net expenses (c) | 0.78%†† | | 0.78% | | 0.77% | | 0.76% | | 0.77% | | 0.77% |
Expenses (before waiver/reimbursement) (c) | 0.79%†† | | 0.80% | | 0.78% | | 0.78% | | 0.82% | | 0.83% |
Portfolio turnover rate | 20%(d) | | 66% | | 70%(d) | | 17%(d) | | 29%(d) | | 47%(d) |
Net assets at end of period (in 000's) | $ 378 | | $ 433 | | $ 493 | | $ 554 | | $ 672 | | $ 506 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
29
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.76 | | $ 10.77 | | $ 10.12 |
Net investment income (loss) | 0.15(a) | | 0.27(a) | | 0.20(a) | | 0.17(a) | | 0.19 | | 0.25 |
Net realized and unrealized gain (loss) | 0.65 | | 0.02 | | (1.87) | | 0.22 | | 0.04 | | 0.65 |
Total from investment operations | 0.80 | | 0.29 | | (1.67) | | 0.39 | | 0.23 | | 0.90 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.16) | | (0.31) | | (0.25) | | (0.21) | | (0.24) | | (0.25) |
Net asset value at end of period | $ 9.64 | | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.76 | | $ 10.77 |
Total investment return (b) | 8.89% | | 3.05% | | (15.45)% | | 3.67% | | 2.18% | | 9.01% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.07%†† | | 2.89% | | 1.93% | | 1.54% | | 1.70% | | 2.38% |
Net expenses (c) | 1.03%†† | | 1.03% | | 1.02% | | 1.01% | | 1.02% | | 1.02% |
Expenses (before waiver/reimbursement) (c) | 1.04%†† | | 1.05% | | 1.03% | | 1.03% | | 1.07% | | 1.08% |
Portfolio turnover rate | 20%(d) | | 66% | | 70%(d) | | 17%(d) | | 29%(d) | | 47%(d) |
Net assets at end of period (in 000’s) | $ 32,534 | | $ 30,932 | | $ 34,742 | | $ 58,263 | | $ 61,662 | | $ 52,964 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
Class C2 | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.75 | | $ 10.83 |
Net investment income (loss) | 0.14(a) | | 0.26(a) | | 0.19(a) | | 0.28(a) | | 0.03 |
Net realized and unrealized gain (loss) | 0.65 | | 0.01 | | (1.88) | | 0.11 | | (0.07) |
Total from investment operations | 0.79 | | 0.27 | | (1.69) | | 0.39 | | (0.04) |
Less distributions: | | | | | | | | | |
From net investment income | (0.15) | | (0.29) | | (0.23) | | (0.20) | | (0.04) |
Net asset value at end of period | $ 9.64 | | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.75 |
Total investment return (b) | 8.81% | | 2.89% | | (15.58)% | | 3.59% | | (0.40)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 2.91%†† | | 2.74% | | 1.86% | | 2.56% | | 1.49%†† |
Net expenses (c) | 1.18%†† | | 1.18% | | 1.17% | | 1.16% | | 1.16%†† |
Expenses (before waiver/reimbursement) (c) | 1.19%†† | | 1.20% | | 1.18% | | 1.18% | | 1.22%†† |
Portfolio turnover rate | 20%(d) | | 66% | | 70%(d) | | 17%(d) | | 29%(d) |
Net assets at end of period (in 000’s) | $ 2,807 | | $ 2,168 | | $ 361 | | $ 275 | | $ 25 |
* | Unaudited. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
30 | MainStay MacKay California Tax Free Opportunities Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.76 | | $ 10.76 | | $ 10.12 |
Net investment income (loss) | 0.17(a) | | 0.32(a) | | 0.25(a) | | 0.23(a) | | 0.28 | | 0.31 |
Net realized and unrealized gain (loss) | 0.66 | | 0.02 | | (1.87) | | 0.22 | | 0.02 | | 0.64 |
Total from investment operations | 0.83 | | 0.34 | | (1.62) | | 0.45 | | 0.30 | | 0.95 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.19) | | (0.36) | | (0.30) | | (0.27) | | (0.30) | | (0.31) |
Net asset value at end of period | $ 9.64 | | $ 9.00 | | $ 9.02 | | $ 10.94 | | $ 10.76 | | $ 10.76 |
Total investment return (b) | 9.18% | | 3.60% | | (15.01)% | | 4.21% | | 2.81% | | 9.48% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.59%†† | | 3.41% | | 2.46% | | 2.05% | | 2.20% | | 2.91% |
Net expenses (c) | 0.50%†† | | 0.50% | | 0.50% | | 0.49% | | 0.50% | | 0.50% |
Expenses (before waiver/reimbursement) (c) | 0.51%†† | | 0.52% | | 0.51% | | 0.51% | | 0.55% | | 0.56% |
Portfolio turnover rate | 20%(d) | | 66% | | 70%(d) | | 17%(d) | | 29%(d) | | 47%(d) |
Net assets at end of period (in 000’s) | $ 653,634 | | $ 572,918 | | $ 555,049 | | $ 776,207 | | $ 655,579 | | $ 429,106 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
| Six months ended April 30, 2024* | | Year Ended October 31, | | November 1, 2019^ through October 31, |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 9.00 | | $ 9.03 | | $ 10.94 | | $ 10.76 | | $ 10.77 |
Net investment income (loss) | 0.17(a) | | 0.33(a) | | 0.26(a) | | 0.21(a) | | 0.25 |
Net realized and unrealized gain (loss) | 0.67 | | —‡ | | (1.87) | | 0.24 | | 0.04 |
Total from investment operations | 0.84 | | 0.33 | | (1.61) | | 0.45 | | 0.29 |
Less distributions: | | | | | | | | | |
From net investment income | (0.19) | | (0.36) | | (0.30) | | (0.27) | | (0.30) |
Net asset value at end of period | $ 9.65 | | $ 9.00 | | $ 9.03 | | $ 10.94 | | $ 10.76 |
Total investment return (b) | 9.30% | | 3.49% | | (14.90)% | | 4.23% | | 2.83% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 3.60%†† | | 3.43% | | 2.57% | | 1.86% | | 2.25% |
Net expenses (c) | 0.48%†† | | 0.48% | | 0.49% | | 0.47% | | 0.48% |
Expenses (before waiver/reimbursement) (c) | 0.48%†† | | 0.48% | | 0.49% | | 0.49% | | 0.53% |
Portfolio turnover rate | 20%(d) | | 66% | | 70%(d) | | 17%(d) | | 29%(d) |
Net assets at end of period (in 000’s) | $ 26,052 | | $ 6,185 | | $ 5,542 | | $ 1,759 | | $ 3,211 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
31
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MacKay California Tax Free Opportunities Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | February 28, 2013 |
Investor Class | February 28, 2013 |
Class C | February 28, 2013 |
Class C2 | August 31, 2020 |
Class I | February 28, 2013 |
Class R6 | November 1, 2019 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C and Class C2 shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C and Class C2 shares. Class I and Class R6 shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C and Class C2 shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares based on a shareholder’s account balance as described in the Fund’s prospectus. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C and Class C2 shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek current income exempt from federal and California income taxes.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that
32 | MainStay MacKay California Tax Free Opportunities Fund |
quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value.
Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. These securities are generally categorized as Level 1 in the hierarchy.
Municipal debt securities are valued at the evaluated mean prices supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent's good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants' assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar
Notes to Financial Statements (Unaudited) (continued)
assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Municipal debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Municipal debt securities are generally categorized as Level 2 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 dividends from net investment income, if any, daily and intends to pay them at least monthly and declares and pays distributions from net realized capital gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Discounts and premiums on securities purchased, other than temporary cash investments that mature in 60 days or less at the time of purchase, for the Fund are accreted and amortized, respectively, on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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
34 | MainStay MacKay California Tax Free Opportunities Fund |
based on the value of a financial instrument (e.g., foreign currency, interest rate, security or securities index). The Fund is subject to risks such as market price risk, leverage risk, liquidity risk, counterparty risk, operational risk, legal risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation 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 or futures commission merchant 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. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. 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 the entire margin owed to the Fund, potentially resulting in a loss. The Fund may invest in futures contracts to seek enhanced returns or to reduce the risk of loss by hedging certain of its holdings. The Fund's investment in futures contracts and other derivatives may increase the volatility of the Fund's NAVs and may result in a loss to the Fund.
(H) Delayed Delivery Transactions. The Fund may purchase or sell securities on a delayed delivery basis. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Fund will designate liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of
ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell delayed delivery securities before they are delivered, which may result in a realized gain or loss. When the Fund has sold a security it owns on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.
(I) Municipal Bond Risk. The Fund may invest more heavily in municipal bonds from certain cities, states, territories or regions than others, which may increase the Fund’s exposure to losses resulting from economic, political, regulatory occurrences, or declines in tax revenue impacting these particular cities, states, territories or regions. In addition, many state and municipal governments that issue securities are under significant economic and financial stress and may not be able to satisfy their obligations, and these events may be made worse due to current economic challenges. The Fund may invest a substantial amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects, such as tobacco settlement bonds. If the Fund concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and this may have a significant impact on the Fund’s investment performance.
Certain of the issuers in which the Fund may invest have recently experienced, or may experience, significant financial difficulties and repeated credit rating downgrades. On May 3, 2017, the Commonwealth of Puerto Rico (the "Commonwealth") began proceedings pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) to seek bankruptcy-type protections from approximately $74 billion in debt and approximately $48 billion in unfunded pension obligations. In addition, the current economic environment and the resulting pressure on Puerto Rico’s budget have further contributed to its financial challenges. Following the outbreak of COVID-19, the federal government passed certain relief packages, including the Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan, which included an aggregate of more than $7 billion in disaster relief funds for the U.S. territories, including Puerto Rico. However, there can be no assurances that the federal funds allocated to the Commonwealth will be sufficient to address the long-term economic challenges that arose from COVID-19.
As of October 31, 2023, Puerto Rico Electric Power Authority ("PREPA") has remained in Title III Bankruptcy for over 6 years. A significant number of net revenue bond creditors, the Oversight Board, and the Commonwealth have been unable to reach a consensual resolution on PREPA’s debt restructuring following the termination of the previous 2019 PREPA Restructuring Support Agreement by the Commonwealth of Puerto Rico in March of 2022. On December 16, 2022, the Oversight Board filed a proposed plan of adjustment to restructure more than $10 billion of debt and other claims against PREPA. The plan of adjustment, amended in March, proposed to cut PREPA’s unsustainable debt to approximately $5.68 billion.
Notes to Financial Statements (Unaudited) (continued)
Bankruptcy litigation has ensued between the Oversight Board and a group of net revenue bond creditors over the security provisions of PREPA’s $8.3 billion of net revenue bonds resulting in a ruling in March that PREPA’s net revenue bonds are unsecured.
In June of 2023, a claims estimation hearing resulted in a ruling that PREPA’s now asserted unsecured net revenue bond claim was valued at approximately 2.383 billion, which is only 28.3% of the full prepetition claim asserted by net revenue bond holders. Due to the lower claims estimation ruling, at the end of August 2023 the Oversight Board filed a new proposed plan of adjustment to reflect the March lien ruling and June estimation hearing with lower recovery amounts afforded to net revenue bond holders. In conjunction with the new proposed plan of adjustment, a subset of the original litigating PREPA creditors entered into Planned Support Agreements (”PSAs”) supporting the new proposed plan of adjustment.
However, following the new proposed plan of adjustment, a significant amount of creditors not previously involved in the PREPA bankruptcy have objected to the revised plan of adjustment, including the MainStay MacKay Municipal Bond Funds.
Objecting creditors are appealing several rulings, including the March net revenue bond lien ruling, the June net revenue bond claims estimation ruling, and the November disclosure statement approval ruling that provides for a plan with disparate recoveries for the same creditors. Objecting creditors believe the PREPA bankruptcy plan of adjustment is unconfirmable and these rulings will be overturned on appeal, but there is no certainty that objecting creditors will be successful in appealing these rulings, or if overturned, these creditors will receive the relief sought. The proposed PREPA August plan of adjustment provides 3.5% of cash recovery for objecting creditors to the plan as opposed to 12.5% of cash recovery for consenting creditors who have not previously settled.
Bankruptcy plan confirmation hearings were held in March of 2024 though at the end of May 2024 Judge Swain has not yet ruled on the confirmability of the plan. Furthermore, as of the end of May 2024, the First Circuit has yet to rule on the appeal of the lien and recourse challenges brought by objecting creditors. It is unclear what impact if any the 1st Circuit rulings will have on plan confirmation and/or whether any appellate rulings will occur prior to the approval of any plan confirmation by Judge Swain.
The Fund’s vulnerability to potential losses associated with such developments may be reduced through investing in municipal securities that feature credit enhancements (such as bond insurance). The bond insurance provider pays both principal and interest when due to the bond holder. The magnitude of Puerto Rico’s debt restructuring or other adverse economic developments could pose significant strains on the ability of municipal securities insurers to meet all future claims. As of April 30, 2024, the Fund's total Puerto Rico investments is 6.0% of total investments, with 8.7% of that amount insured.
(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 that may 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. The Manager believes 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 related to 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.
The Fund entered into futures contracts to help manage the duration and yield curve positioning of the portfolio. These derivatives are not accounted for as hedging instruments.
Fair value of derivative instruments as of April 30, 2024:
Asset Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized appreciation on futures contracts (a) | $885,206 | $885,206 |
Total Fair Value | $885,206 | $885,206 |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is 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, 2024:
Net Realized Gain (Loss) from: | Interest Rate Contracts Risk | Total |
Futures Transactions | $(118,236) | $(118,236) |
Total Net Realized Gain (Loss) | $(118,236) | $(118,236) |
Net Change in Unrealized Appreciation (Depreciation) | Interest Rate Contracts Risk | Total |
Futures Contracts | $526,298 | $526,298 |
Total Net Change in Unrealized Appreciation (Depreciation) | $526,298 | $526,298 |
36 | MainStay MacKay California Tax Free Opportunities Fund |
Average Notional Amount | Total |
Futures Contracts Short | $(31,915,677) |
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 Fund's Manager, pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC ("MacKay Shields" or the "Subadvisor"), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.45% up to $1 billion; 0.43% from $1 billion up to $3 billion and 0.42% in excess of $3 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.45% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) of Class A shares do not exceed 0.75% 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 Investor Class, Class C, Class C2 and Class I shares. New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) of Class R6 do not exceed those of Class I. These agreements will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $2,464,016 and waived fees and/or reimbursed expenses in the amount of $61,072 and paid the Subadvisor fees in the amount of $1,201,472.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% 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, for a total 12b-1 fee of 0.50%. Pursuant to the Class C2 Plan, Class C2 shares pay the Distributor a monthly distribution fee at an annual rate of 0.40% of the average daily net assets of the Class C2 shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C2 shares, for a total 12b-1 fee of 0.65%. Class I and Class R6 shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $6,695 and $37, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $24,747 and $3,952, respectively.
Notes to Financial Statements (Unaudited) (continued)
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 75,131 | $— |
Investor Class | 134 | — |
Class C | 10,659 | — |
Class C2 | 872 | — |
Class I | 109,236 | — |
Class R6 | 380 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class C2 | $24,314 | 0.9% |
Class R6 | 25,681 | 0.1 |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $1,146,202,824 | $20,457,563 | $(8,462,101) | $11,995,462 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $124,211,026, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $57,535 | $66,676 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $ 977,265 |
Exempt Interest Dividends | 36,851,804 |
Total | $37,829,069 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based
38 | MainStay MacKay California Tax Free Opportunities Fund |
upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $319,618 and $211,407, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 8,130,590 | $ 78,677,651 |
Shares issued to shareholders in reinvestment of distributions | 705,044 | 6,865,673 |
Shares redeemed | (6,529,173) | (63,006,946) |
Net increase (decrease) in shares outstanding before conversion | 2,306,461 | 22,536,378 |
Shares converted into Class A (See Note 1) | 13,363 | 130,214 |
Shares converted from Class A (See Note 1) | (29,489) | (284,998) |
Net increase (decrease) | 2,290,335 | $ 22,381,594 |
Year ended October 31, 2023: | | |
Shares sold | 17,324,094 | $ 162,169,098 |
Shares issued to shareholders in reinvestment of distributions | 1,334,292 | 12,668,620 |
Shares redeemed | (19,318,887) | (181,429,974) |
Shares converted into Class A (See Note 1) | 99,379 | 969,646 |
Shares converted from Class A (See Note 1) | (4,004) | (39,036) |
Net increase (decrease) | (565,126) | $ (5,661,646) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,418 | $ 13,689 |
Shares issued to shareholders in reinvestment of distributions | 748 | 7,285 |
Shares redeemed | (6,083) | (58,014) |
Net increase (decrease) in shares outstanding before conversion | (3,917) | (37,040) |
Shares converted from Investor Class (See Note 1) | (4,978) | (48,528) |
Net increase (decrease) | (8,895) | $ (85,568) |
Year ended October 31, 2023: | | |
Shares sold | 4,150 | $ 39,305 |
Shares issued to shareholders in reinvestment of distributions | 1,760 | 16,720 |
Shares redeemed | (9,497) | (90,292) |
Shares converted into Investor Class (See Note 1) | 1,035 | 9,872 |
Shares converted from Investor Class (See Note 1) | (4,037) | (38,998) |
Net increase (decrease) | (6,589) | $ (63,393) |
|
Notes to Financial Statements (Unaudited) (continued)
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 391,951 | $ 3,812,383 |
Shares issued to shareholders in reinvestment of distributions | 47,887 | 466,313 |
Shares redeemed | (497,654) | (4,826,698) |
Net increase (decrease) in shares outstanding before conversion | (57,816) | (548,002) |
Shares converted from Class C (See Note 1) | (6,276) | (61,291) |
Net increase (decrease) | (64,092) | $ (609,293) |
Year ended October 31, 2023: | | |
Shares sold | 532,534 | $ 5,079,110 |
Shares issued to shareholders in reinvestment of distributions | 95,332 | 905,763 |
Shares redeemed | (1,028,354) | (9,799,048) |
Shares converted from Class C (See Note 1) | (12,887) | (123,665) |
Net increase (decrease) | (413,375) | $ (3,937,840) |
|
Class C2 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 60,641 | $ 576,316 |
Shares issued to shareholders in reinvestment of distributions | 4,381 | 42,680 |
Shares redeemed | (14,862) | (143,790) |
Net increase (decrease) | 50,160 | $ 475,206 |
Year ended October 31, 2023: | | |
Shares sold | 228,370 | $ 2,184,892 |
Shares issued to shareholders in reinvestment of distributions | 5,559 | 52,634 |
Shares redeemed | (33,076) | (316,300) |
Net increase (decrease) | 200,853 | $ 1,921,226 |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 22,483,041 | $ 217,426,181 |
Shares issued to shareholders in reinvestment of distributions | 950,226 | 9,253,155 |
Shares redeemed | (17,670,808) | (169,134,756) |
Net increase (decrease) in shares outstanding before conversion | 5,762,459 | 57,544,580 |
Shares converted into Class I (See Note 1) | 29,489 | 284,998 |
Shares converted from Class I (See Note 1) | (1,686,985) | (16,397,414) |
Net increase (decrease) | 4,104,963 | $ 41,432,164 |
Year ended October 31, 2023: | | |
Shares sold | 44,846,864 | $ 426,734,056 |
Shares issued to shareholders in reinvestment of distributions | 1,596,133 | 15,152,514 |
Shares redeemed | (44,211,347) | (417,848,215) |
Shares converted into Class I (See Note 1) | 4,004 | 39,036 |
Shares converted from Class I (See Note 1) | (83,490) | (816,855) |
Net increase (decrease) | 2,152,164 | $ 23,260,536 |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,285,297 | $ 12,530,334 |
Shares issued to shareholders in reinvestment of distributions | 9,010 | 87,782 |
Shares redeemed | (965,681) | (9,355,640) |
Net increase (decrease) in shares outstanding before conversion | 328,626 | 3,262,476 |
Shares converted into Class R6 (See Note 1) | 1,683,147 | 16,377,019 |
Net increase (decrease) | 2,011,773 | $ 19,639,495 |
Year ended October 31, 2023: | | |
Shares sold | 655,411 | $ 6,302,611 |
Shares issued to shareholders in reinvestment of distributions | 20,325 | 192,803 |
Shares redeemed | (602,761) | (5,691,276) |
Net increase (decrease) | 72,975 | $ 804,138 |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
40 | MainStay MacKay California Tax Free Opportunities Fund |
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay MacKay California Tax Free Opportunities 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and MacKay in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and MacKay in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or MacKay that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, MacKay personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and MacKay; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and MacKay; (iii) the costs of the services provided, and profits realized, by New York Life Investments and MacKay with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and MacKay. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and MacKay resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and MacKay
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by MacKay, evaluating the performance of MacKay, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of MacKay and ongoing analysis of, and interactions with, MacKay with respect to, among other things, the Fund’s investment performance and risks as well as MacKay’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that MacKay provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated MacKay’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and MacKay’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at MacKay. The Board considered New York Life Investments’ and MacKay’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and MacKay and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered MacKay’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and MacKay regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
42 | MainStay MacKay California Tax Free Opportunities Fund |
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of MacKay and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and MacKay
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because MacKay is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and MacKay in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and MacKay, and profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including MacKay’s, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and MacKay and acknowledged that New York Life Investments and MacKay must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial
position for New York Life Investments and MacKay to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to MacKay from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to MacKay in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including MacKay, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to MacKay is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and MacKay on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, and voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
44 | MainStay MacKay California Tax Free Opportunities Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
46 | MainStay MacKay California Tax Free Opportunities Fund |
Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022262 MS081-24 | MSCTF10-06/24 |
(NYLIM) NL237
MainStay MacKay High Yield Municipal Bond Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 3.00% Initial Sales Charge | With sales charges | 3/31/2010 | 8.85% | 2.02% | 0.89% | 3.57% | 0.87% |
| | Excluding sales charges | | 12.21 | 5.18 | 1.82 | 4.04 | 0.87 |
Investor Class Shares4, 5 | Maximum 2.50% Initial Sales Charge | With sales charges | 3/31/2010 | 9.41 | 2.62 | 0.88 | 3.56 | 0.89 |
| | Excluding sales charges | | 12.21 | 5.25 | 1.81 | 4.04 | 0.89 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 3/31/2010 | 10.72 | 3.38 | 1.05 | 3.25 | 1.64 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 11.72 | 4.38 | 1.05 | 3.25 | 1.64 |
Class I Shares | No Sales Charge | | 3/31/2010 | 12.34 | 5.53 | 2.08 | 4.31 | 0.62 |
Class R6 Shares | No Sales Charge | | 11/1/2019 | 12.38 | 5.60 | N/A | 1.41 | 0.56 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to August 10, 2022, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
5. | Prior to August 10, 2022, the maximum initial sales charge was 4.00%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg Municipal Bond Index2 | 7.06% | 2.08% | 1.26% | 2.41% |
Bloomberg High Yield Municipal Bond Index3 | 11.97 | 6.63 | 2.78 | 4.37 |
High Yield Municipal Bond Composite Index4 | 9.99 | 4.80 | 2.20 | 3.60 |
Morningstar High Yield Muni Category Average5 | 10.31 | 4.18 | 1.18 | 3.02 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg Municipal Bond Index, which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The Bloomberg Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year. Bonds subject to the alternative minimum tax or with floating or zero coupons are excluded. |
3. | The Bloomberg Municipal High Yield Bond Index is a flagship measure of the non-investment grade and non-rated U.S. dollar-denominated tax-exempt bond market. |
4. | The High Yield Municipal Bond Composite Index consists of the Bloomberg High Yield Municipal Bond Index and the Bloomberg Municipal Bond Index weighted 60%/40%, respectively. |
5. | The Morningstar High Yield Muni Category Average is representative of funds that invest a substantial portion of assets in high-income municipal securities that are not rated or that are rated at the level of or below BBB by a major ratings agency such as Standard & Poor’s or Moody’s. Results are based on average total returns of similar funds with all dividends 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 MacKay High Yield Municipal Bond Fund |
Cost in Dollars of a $1,000 Investment in MainStay MacKay 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,122.10 | $4.59 | $1,020.54 | $4.37 | 0.87% |
Investor Class Shares | $1,000.00 | $1,122.10 | $4.70 | $1,020.44 | $4.47 | 0.89% |
Class C Shares | $1,000.00 | $1,117.20 | $8.63 | $1,016.71 | $8.22 | 1.64% |
Class I Shares | $1,000.00 | $1,123.40 | $3.22 | $1,021.83 | $3.07 | 0.61% |
Class R6 Shares | $1,000.00 | $1,123.80 | $2.90 | $1,022.13 | $2.77 | 0.55% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Portfolio Composition as of April 30, 2024 (Unaudited)
Puerto Rico | 10.5% |
Illinois | 10.3 |
California | 9.4 |
New York | 8.8 |
Texas | 4.8 |
Ohio | 4.5 |
Pennsylvania | 3.8 |
New Jersey | 3.5 |
Florida | 3.2 |
Michigan | 3.1 |
Wisconsin | 2.7 |
U.S. Virgin Islands | 2.5 |
Colorado | 2.3 |
Alabama | 2.3 |
District of Columbia | 2.0 |
Virginia | 2.0 |
Georgia | 2.0 |
Utah | 1.5 |
Washington | 1.4 |
Arizona | 1.4 |
Maryland | 1.2 |
Kentucky | 1.2 |
Massachusetts | 1.0 |
Arkansas | 1.0 |
Iowa | 1.0 |
New Hampshire | 1.0 |
Minnesota | 0.9 |
South Carolina | 0.8 |
Connecticut | 0.7 |
Indiana | 0.7% |
North Carolina | 0.7 |
Delaware | 0.6 |
Missouri | 0.6 |
North Dakota | 0.5 |
Tennessee | 0.5 |
Hawaii | 0.5 |
West Virginia | 0.4 |
Guam | 0.4 |
Multi–State | 0.3 |
Nevada | 0.3 |
Kansas | 0.3 |
Alaska | 0.2 |
Montana | 0.2 |
Rhode Island | 0.2 |
Oregon | 0.1 |
Idaho | 0.1 |
Louisiana | 0.1 |
Oklahoma | 0.1 |
Vermont | 0.1 |
Mississippi | 0.1 |
Wyoming | 0.1 |
Maine | 0.0‡ |
Nebraska | 0.0‡ |
Short–Term Investment | 1.0 |
Other Assets, Less Liabilities | 1.1 |
| 100.0% |
‡ | Less than one–tenth of a percent. |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Commonwealth of Puerto Rico, (zero coupon)-4.00%, due 7/1/33–11/1/51 |
2. | Metropolitan Pier & Exposition Authority, (zero coupon)-5.00%, due 6/15/30–12/15/56 |
3. | Puerto Rico Sales Tax Financing Corp., (zero coupon)-5.00%, due 7/1/31–7/1/58 |
4. | New York Transportation Development Corp., 4.00%-5.375%, due 10/1/30–6/30/60 |
5. | Chicago Board of Education, (zero coupon)-7.00%, due 12/1/27–12/1/47 |
6. | Puerto Rico Commonwealth Aqueduct & Sewer Authority, 3.50%-5.00%, due 7/1/26–7/1/47 |
7. | Public Finance Authority, (zero coupon)-9.00%, due 10/1/24–5/1/71 |
8. | Buckeye Tobacco Settlement Financing Authority, 4.00%-5.00%, due 6/1/48–6/1/55 |
9. | Matching Fund Special Purpose Securitization Corp., 5.00%, due 10/1/30–10/1/39 |
10. | Metropolitan Transportation Authority, 4.00%-5.00%, due 11/15/27–11/15/52 |
8 | MainStay MacKay High Yield Municipal Bond Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Municipal Bonds 97.0% |
Long-Term Municipal Bonds 92.0% |
Alabama 2.3% |
Alabama Special Care Facilities Financing Authority, Methodist Home for the Aging, Revenue Bonds | | |
Series 1 | | |
5.75%, due 6/1/45 | $ 1,250,000 | $ 1,105,316 |
Black Belt Energy Gas District, Gas Project No.7, Revenue Bonds | | |
Series C-2 | | |
4.12%, due 10/1/52 | 27,720,000 | 27,078,806 |
Cooper Green Mercy Health Services Authority, County of Jefferson Indigent Care Fund, Revenue Bonds | | |
Series A | | |
5.25%, due 9/1/42 | 4,950,000 | 5,246,824 |
County of Jefferson, Sewer, Revenue Bonds | | |
5.25%, due 10/1/40 | 5,000,000 | 5,482,311 |
5.25%, due 10/1/41 | 5,000,000 | 5,449,914 |
5.25%, due 10/1/42 | 6,250,000 | 6,780,047 |
5.25%, due 10/1/43 | 6,250,000 | 6,759,739 |
5.25%, due 10/1/45 | 8,000,000 | 8,578,289 |
5.25%, due 10/1/49 | 22,300,000 | 23,497,604 |
5.50%, due 10/1/53 | 2,100,000 | 2,249,230 |
Hoover Industrial Development Board, United States Steel Corp., Green Bond, Revenue Bonds | | |
6.375%, due 11/1/50 (a)(b) | 3,140,000 | 3,446,274 |
Lower Alabama Gas District (The), Revenue Bonds | | |
Series A | | |
5.00%, due 9/1/46 | 17,360,000 | 17,884,419 |
Montgomery Educational Building Authority, Faulkner University, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/43 | 4,780,000 | 4,628,582 |
Prichard Water Works & Sewer Board, Revenue Bonds | | |
4.00%, due 11/1/49 | 6,000,000 | 3,767,623 |
Southeast Energy Authority, A Cooperative District, Project No. 2, Revenue Bonds | | |
Series B | | |
4.00%, due 12/1/51 (b) | 8,400,000 | 8,226,246 |
| Principal Amount | Value |
|
Alabama (continued) |
Tuscaloosa County Industrial Development Authority, Hunt Refining Project, Revenue Bonds (c) | | |
Series A | | |
4.50%, due 5/1/32 | $ 11,736,585 | $ 11,728,761 |
Series A | | |
5.25%, due 5/1/44 | 57,940,000 | 58,065,950 |
| | 199,975,935 |
Alaska 0.2% |
Alaska Industrial Development & Export Authority, Dena' Nena' Henash, Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/49 | 15,440,000 | 13,836,982 |
Alaska Industrial Development & Export Authority, Interior Gas Utility Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/40 | 1,795,000 | 1,690,935 |
Series A | | |
5.00%, due 6/1/50 | 3,485,000 | 3,133,312 |
| | 18,661,229 |
Arizona 1.4% |
Arizona Industrial Development Authority, GreatHearts Arizona Project, Revenue Bonds | | |
Series A, Insured: SD CRED PROG | | |
3.00%, due 7/1/46 | 4,265,000 | 3,182,328 |
Series A, Insured: SD CRED PROG | | |
3.00%, due 7/1/52 | 9,525,000 | 6,671,139 |
Arizona Industrial Development Authority, Provident Group, NCCU Properties LLC, Central University Project, Revenue Bonds | | |
Series A, Insured: BAM | | |
4.00%, due 6/1/44 | 2,500,000 | 2,378,286 |
Arizona Industrial Development Authority, Equitable School Revolving Fund LLC, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/45 | 5,470,000 | 5,069,140 |
Series A | | |
4.00%, due 11/1/46 | 1,000,000 | 920,667 |
Series A | | |
4.00%, due 11/1/51 | 3,405,000 | 3,023,616 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Arizona (continued) |
Arizona Industrial Development Authority, Equitable School Revolving Fund LLC, Revenue Bonds (continued) | | |
Series A | | |
4.25%, due 11/1/52 | $ 2,000,000 | $ 1,843,981 |
Arizona Industrial Development Authority, University of Indianapolis, Health Pavilion Project, Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/49 | 1,000,000 | 809,770 |
Series A | | |
5.00%, due 10/1/45 | 1,875,000 | 1,839,326 |
Arizona Industrial Development Authority, Equitable School Revolving Fund LLC Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/49 | 4,865,000 | 4,374,097 |
Arizona Industrial Development Authority, Macombs Facility Project, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/51 | 3,000,000 | 2,470,689 |
Series A | | |
4.00%, due 7/1/61 | 1,830,000 | 1,442,207 |
Arizona Industrial Development Authority, Jerome Facility Project, Revenue Bonds | | |
Series B | | |
4.00%, due 7/1/51 | 1,420,000 | 1,169,459 |
Series B | | |
4.00%, due 7/1/61 | 1,000,000 | 788,091 |
Arizona Industrial Development Authority, Odyssey Preparatory Academy, Inc. (The), Revenue Bonds (c) | | |
Series A | | |
4.75%, due 7/1/29 | 2,565,000 | 2,563,680 |
5.00%, due 7/1/54 | 2,000,000 | 1,745,035 |
Arizona Industrial Development Authority, Idaho State Tax Commission, Linder Village Project, Revenue Bonds | | |
5.00%, due 6/1/31 (c) | 3,700,000 | 3,694,151 |
| Principal Amount | Value |
|
Arizona (continued) |
Arizona Industrial Development Authority, Arizona Agribusiness and Equine Center, Inc., Revenue Bonds (c) | | |
Series B | | |
5.00%, due 3/1/37 | $ 3,030,000 | $ 2,937,704 |
Series B | | |
5.00%, due 3/1/42 | 3,185,000 | 2,957,397 |
Arizona Industrial Development Authority, Provident Group-NCCU Properties LLC, Revenue Bonds | | |
Series A, Insured: BAM | | |
5.00%, due 6/1/49 | 2,650,000 | 2,713,771 |
Series A, Insured: BAM | | |
5.00%, due 6/1/54 | 2,850,000 | 2,904,581 |
Arizona Industrial Development Authority, Somerset Academy of Las Vegas Lone Mountain Campus, Revenue Bonds | | |
Series A | | |
5.00%, due 12/15/49 (c) | 1,900,000 | 1,750,607 |
Arizona Industrial Development Authority, Mater Academy of Nevada, Bonanza Campus Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/15/50 (c) | 1,500,000 | 1,407,655 |
Arizona Industrial Development Authority, Provident Group, Eastern Michigan University Parking Project, Revenue Bonds | | |
5.00%, due 5/1/51 (d)(e) | 1,000,000 | 550,000 |
Arizona Industrial Development Authority, Revenue Bonds | | |
Series C | | |
6.00%, due 7/1/29 (c) | 3,300,000 | 3,134,433 |
Arizona Industrial Development Authority, American Charter Schools Foundation, Revenue Bonds (c) | | |
6.00%, due 7/1/37 | 2,910,000 | 2,987,104 |
6.00%, due 7/1/47 | 7,010,000 | 7,111,922 |
City of Phoenix, Downtown Phoenix Student Housing LLC, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/37 | 1,000,000 | 1,008,668 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Arizona (continued) |
City of Phoenix, Basis Schools Project, Revenue Bonds (c) | | |
Series A | | |
5.00%, due 7/1/45 | $ 1,000,000 | $ 954,701 |
Series A | | |
5.00%, due 7/1/46 | 3,820,000 | 3,618,467 |
City of Phoenix, Downtown Phoenix Student Housing II LLC, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/59 | 2,200,000 | 2,048,055 |
City of Phoenix, Espiritu Community Development Corp., Revenue Bonds | | |
Series A | | |
6.25%, due 7/1/36 | 820,000 | 784,945 |
Glendale Industrial Development Authority, Midwestern University Foundation, Revenue Bonds | | |
Series A | | |
2.125%, due 7/1/33 (a) | 2,000,000 | 1,612,317 |
Glendale Industrial Development Authority, People of Faith, Inc. Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 5/15/56 | 8,150,000 | 7,016,423 |
Industrial Development Authority of the County of Pima (The), American Leadership Academy Project, Revenue Bonds (c) | | |
4.00%, due 6/15/51 | 8,400,000 | 6,497,294 |
4.00%, due 6/15/57 | 1,000,000 | 742,137 |
5.625%, due 6/15/45 | 3,685,000 | 3,692,283 |
Industrial Development Authority of the County of Pima (The), Charter Schools Project, Revenue Bonds | | |
Series Q | | |
5.375%, due 7/1/31 | 1,045,000 | 1,034,226 |
Maricopa County Industrial Development Authority, Legacy Traditional School Project, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/51 (c) | 530,000 | 411,704 |
| Principal Amount | Value |
|
Arizona (continued) |
Maricopa County Industrial Development Authority, Legacy Traditional Schools Project, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/56 (c) | $ 1,220,000 | $ 921,546 |
Maricopa County Industrial Development Authority, Horizon Community Learning Center, Revenue Bonds | | |
5.00%, due 7/1/35 | 3,000,000 | 3,012,609 |
Maricopa County Pollution Control Corp., El Paso Electric Co. Project, Revenue Bonds | | |
Series B | | |
3.60%, due 4/1/40 | 8,650,000 | 7,426,291 |
Pinal County Industrial Development Authority, WOF SW GGP 1 LLC, Revenue Bonds (a)(f) | | |
Series A | | |
5.50%, due 10/1/33 (c) | 7,673,000 | 7,378,334 |
Series B | | |
5.50%, due 10/1/33 | 2,000,000 | 1,923,194 |
| | 122,524,030 |
Arkansas 1.0% |
Arkansas Development Finance Authority, Washington Regional Medical Center, Revenue Bonds | | |
4.00%, due 2/1/42 | 4,390,000 | 3,810,258 |
Arkansas Development Finance Authority, Baptist Health, Revenue Bonds | | |
4.00%, due 12/1/44 | 650,000 | 606,405 |
Arkansas Development Finance Authority, Big River Steel Project, Revenue Bonds (a)(c) | | |
4.50%, due 9/1/49 | 55,600,000 | 54,444,098 |
Series A | | |
4.75%, due 9/1/49 | 16,950,000 | 16,606,366 |
Arkansas Development Finance Authority, United States Steel Corp., Revenue Bonds | | |
5.70%, due 5/1/53 (a) | 7,900,000 | 8,124,551 |
| | 83,591,678 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
California 7.2% |
Alameda Corridor Transportation Authority, Revenue Bonds | | |
Series A, Insured: NATL-RE | | |
(zero coupon), due 10/1/35 | $ 3,440,000 | $ 2,224,971 |
Bassett Unified School District, Capital Appreciation, Election 2004, Unlimited General Obligation | | |
Series C, Insured: NATL-RE | | |
(zero coupon), due 8/1/41 | 2,050,000 | 930,721 |
Series C, Insured: NATL-RE | | |
(zero coupon), due 8/1/42 | 2,000,000 | 859,841 |
California Community Choice Financing Authority, Clean Energy Project, Revenue Bonds | | |
Series C | | |
5.25%, due 1/1/54 (b) | 5,350,000 | 5,584,275 |
California Community Housing Agency, Summit at Sausalito Apartments, Revenue Bonds | | |
Series A-1 | | |
3.00%, due 2/1/57 (c) | 3,500,000 | 2,386,196 |
California Community Housing Agency, Essential Housing, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
4.00%, due 2/1/56 (c) | 36,500,000 | 29,969,409 |
California Community Housing Agency, Essential Housing, Serenity at Larkspur Apartments, Revenue Bonds | | |
Series A | | |
5.00%, due 2/1/50 (c) | 3,895,000 | 2,723,897 |
California Enterprise Development Authority, Provident Group-Pomona Properties LLC, Revenue Bonds | | |
Series A | | |
5.00%, due 1/15/39 | 650,000 | 698,112 |
Series A | | |
5.00%, due 1/15/45 | 1,000,000 | 1,045,513 |
California Health Facilities Financing Authority, CommonSpirit Health, Revenue Bonds | | |
Series A | | |
4.00%, due 4/1/49 | 7,255,000 | 6,839,797 |
| Principal Amount | Value |
|
California (continued) |
California Health Facilities Financing Authority, Children's Hospital Los Angeles Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 8/15/47 | $ 5,215,000 | $ 5,284,916 |
California Infrastructure & Economic Development Bank, Equitable School Revolving Fund LLC Obligated Group, Revenue Bonds | | |
Series B | | |
4.00%, due 11/1/46 | 3,060,000 | 2,858,083 |
California Infrastructure & Economic Development Bank, WFCS Portfolio Projects, Revenue Bonds | | |
Series A-1 | | |
5.00%, due 1/1/55 (c) | 3,225,000 | 2,711,929 |
California Municipal Finance Authority, Ochard Park Student Housing Project, Revenue Bonds | | |
Insured: BAM | | |
3.00%, due 5/15/51 | 3,095,000 | 2,312,701 |
Insured: BAM | | |
3.00%, due 5/15/54 | 1,500,000 | 1,089,448 |
California Municipal Finance Authority, LINXS APM Project, Revenue Bonds, Senior Lien (a) | | |
Series A, Insured: AGM | | |
3.25%, due 12/31/32 | 3,910,000 | 3,605,589 |
Series A, Insured: AGM | | |
3.50%, due 12/31/35 | 2,055,000 | 1,890,462 |
Series A, Insured: AGM | | |
4.00%, due 12/31/47 | 9,380,000 | 8,657,389 |
Series A | | |
5.00%, due 12/31/43 | 5,745,000 | 5,651,357 |
California Municipal Finance Authority, Republic Services, Inc., Revenue Bonds (a)(b) | | |
Series A | | |
3.875%, due 3/1/54 | 15,500,000 | 15,392,917 |
Series A | | |
4.375%, due 9/1/53 | 3,750,000 | 3,853,209 |
California Municipal Finance Authority, United Airlines, Inc. Project, Revenue Bonds | | |
4.00%, due 7/15/29 (a) | 18,575,000 | 18,470,655 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
California (continued) |
California Municipal Finance Authority, HumanGood California Obligated Group, Revenue Bonds | | |
4.00%, due 10/1/49 | $ 1,785,000 | $ 1,585,686 |
California Municipal Finance Authority, William Jessup University, Revenue Bonds (c) | | |
5.00%, due 8/1/28 | 1,000,000 | 975,670 |
5.00%, due 8/1/48 | 2,675,000 | 2,225,194 |
California Municipal Finance Authority, Charter School, Palmdale Aerospace Academy Projects (The), Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/46 (c) | 2,665,000 | 2,544,561 |
California Municipal Finance Authority, CHF-Davis I LLC, West Village Student Housing Project, Revenue Bonds | | |
Insured: BAM | | |
5.00%, due 5/15/48 | 19,250,000 | 19,711,615 |
Insured: BAM | | |
5.00%, due 5/15/51 | 19,275,000 | 19,672,086 |
California Municipal Finance Authority, Healthright 360, Revenue Bonds | | |
Series A | | |
5.00%, due 11/1/49 (c) | 2,000,000 | 1,770,901 |
California Municipal Finance Authority, Baptist University, Revenue Bonds | | |
Series A | | |
5.375%, due 11/1/40 (c) | 3,000,000 | 3,016,031 |
California Pollution Control Financing Authority, Republic Services, Inc., Revenue Bonds (a)(b)(c) | | |
Series A-1 | | |
4.05%, due 11/1/42 | 5,500,000 | 5,499,624 |
Series A-2 | | |
4.05%, due 11/1/42 | 13,000,000 | 12,999,375 |
4.125%, due 7/1/43 | 22,705,000 | 22,660,857 |
California Public Finance Authority, Enso Village Project, Revenue Bonds (c) | | |
Series B-2 | | |
2.375%, due 11/15/28 | 1,260,000 | 1,226,826 |
| Principal Amount | Value |
|
California (continued) |
California Public Finance Authority, Enso Village Project, Revenue Bonds (c) (continued) | | |
Series A | | |
5.00%, due 11/15/46 | $ 750,000 | $ 672,450 |
California Public Finance Authority, California University of Science & Medicine Obligated Group, Revenue Bonds | | |
Series A | | |
6.25%, due 7/1/54 (c) | 5,265,000 | 5,476,988 |
California Public Finance Authority, California University of Science & Medicine, Revenue Bonds | | |
Series B | | |
7.50%, due 7/1/36 (c) | 8,840,000 | 8,670,106 |
California School Finance Authority, Granada Hills Charter High School Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/48 (c) | 675,000 | 559,345 |
California School Finance Authority, Vista Charter Public Schools, Revenue Bonds (c) | | |
Series A | | |
4.00%, due 6/1/51 | 2,910,000 | 2,305,761 |
Series A | | |
4.00%, due 6/1/61 | 1,840,000 | 1,386,898 |
California School Finance Authority, Hawking STEAM Charter Schools, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/42 (c) | 1,360,000 | 1,371,603 |
California School Finance Authority, High Tech High Learning Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/49 (c) | 3,000,000 | 2,831,760 |
California School Finance Authority, Teach Public Schools, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/58 (c) | 2,000,000 | 1,835,237 |
California School Finance Authority, Aspire Public Schools, Revenue Bonds | | |
Series A | | |
5.00%, due 8/1/59 (c) | 1,800,000 | 1,707,925 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
California (continued) |
California Statewide Communities Development Authority, Southern California Edison Co., Revenue Bonds | | |
Series A | | |
1.75%, due 9/1/29 | $ 7,200,000 | $ 6,203,232 |
California Statewide Communities Development Authority, Community Infrastructure Program, Special Assessment | | |
Series 2021A | | |
4.00%, due 9/2/41 | 1,000,000 | 890,436 |
Series A | | |
4.00%, due 9/2/51 | 995,000 | 801,649 |
California Statewide Communities Development Authority, Methodist Hospital of Southern California, Revenue Bonds | | |
4.375%, due 1/1/48 | 2,185,000 | 2,154,612 |
5.00%, due 1/1/48 | 7,150,000 | 7,383,549 |
California Statewide Communities Development Authority, Lancer Educational Student Housing Project, Revenue Bonds (c) | | |
Series A | | |
5.00%, due 6/1/36 | 2,250,000 | 2,270,688 |
Series A | | |
5.00%, due 6/1/46 | 2,000,000 | 1,968,390 |
California Statewide Communities Development Authority, Loma Linda University Medical Center, Revenue Bonds (c) | | |
Series A | | |
5.00%, due 12/1/46 | 18,170,000 | 18,205,493 |
Series A | | |
5.25%, due 12/1/56 | 3,970,000 | 3,989,018 |
California Statewide Communities Development Authority, Irvine Campus Apartments, Revenue Bonds | | |
5.00%, due 5/15/50 | 2,000,000 | 2,002,686 |
California Statewide Communities Development Authority, Lancer Plaza Project, Revenue Bonds | | |
5.625%, due 11/1/33 | 680,000 | 680,813 |
5.875%, due 11/1/43 | 435,000 | 435,373 |
| Principal Amount | Value |
|
California (continued) |
California Statewide Communities Development Authority, California Baptist University, Revenue Bonds | | |
Series A | | |
6.375%, due 11/1/43 (c) | $ 3,185,000 | $ 3,189,039 |
Cathedral City Public Financing Authority, Capital Appreciation, Tax Allocation | | |
Series A, Insured: NATL-RE | | |
(zero coupon), due 8/1/26 | 1,085,000 | 993,127 |
City of Los Angeles, Department of Airports, Revenue Bonds, Senior Lien | | |
Series G | | |
5.00%, due 5/15/47 (a) | 6,000,000 | 6,254,541 |
City of South San Francisco, Community Facilities District No. 2021-01, Special Tax | | |
5.00%, due 9/1/52 | 1,500,000 | 1,506,745 |
CMFA Special Finance Agency VIII, Elan Huntington Beach, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
3.00%, due 8/1/56 (c) | 1,500,000 | 996,961 |
CMFA Special Finance Agency XII, Allure Apartments, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
3.25%, due 2/1/57 (c) | 5,500,000 | 3,963,697 |
County of Placer, Community Facilities District No. 2017-1, Area No. 1, Special Tax | | |
3.00%, due 9/1/41 | 1,000,000 | 760,385 |
4.00%, due 9/1/51 | 3,270,000 | 2,797,359 |
CSCDA Community Improvement Authority, Pasadena Portfolio, Revenue Bonds, Senior Lien | | |
Series A-2 | | |
3.00%, due 12/1/56 (c) | 2,750,000 | 1,897,021 |
CSCDA Community Improvement Authority, Theo Pasadena, Revenue Bonds, Senior Lien | | |
Series A-2 | | |
3.25%, due 5/1/57 (c) | 11,100,000 | 7,636,214 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
California (continued) |
CSCDA Community Improvement Authority, Oceanaire Long Beach, Revenue Bonds | | |
Series A-2 | | |
4.00%, due 9/1/56 (c) | $ 10,060,000 | $ 7,232,159 |
CSCDA Community Improvement Authority, Altana Glendale, Revenue Bonds | | |
Series A-2 | | |
4.00%, due 10/1/56 (c) | 9,100,000 | 6,933,639 |
CSCDA Community Improvement Authority, Escondido Portfolio, Revenue Bonds, Senior Lien | | |
Series A-2 | | |
4.00%, due 6/1/58 (c) | 4,750,000 | 3,541,117 |
Foothill-Eastern Transportation Corridor Agency, Revenue Bonds | | |
Series B-2, Insured: AGM-CR | | |
3.50%, due 1/15/53 | 13,265,000 | 11,305,114 |
Foothill-Eastern Transportation Corridor Agency, Revenue Bonds, Junior Lien | | |
Series C, Insured: AGM-CR | | |
4.00%, due 1/15/43 | 16,904,000 | 16,744,825 |
Foothill-Eastern Transportation Corridor Agency, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 1/15/46 | 27,304,000 | 26,273,725 |
Series A, Insured: AGM-CR | | |
4.00%, due 1/15/46 | 27,795,000 | 27,325,979 |
Golden State Tobacco Securitization Corp., Asset-Backed, Revenue Bonds | | |
Series B-2 | | |
(zero coupon), due 6/1/66 (g) | 490,885,000 | 49,845,887 |
Golden State Tobacco Securitization Corp., Tobacco Settlement, Revenue Bonds | | |
Series B-1 | | |
3.85%, due 6/1/50 | 1,335,000 | 1,218,482 |
Hastings Campus Housing Finance Authority, Green Bond, Revenue Bonds, Senior Lien (c) | | |
Series A | | |
5.00%, due 7/1/45 | 12,080,000 | 11,172,851 |
| Principal Amount | Value |
|
California (continued) |
Hastings Campus Housing Finance Authority, Green Bond, Revenue Bonds, Senior Lien (c) (continued) | | |
Series A | | |
5.00%, due 7/1/61 | $ 58,400,000 | $ 52,358,578 |
Inland Empire Tobacco Securitization Corp., Revenue Bonds | | |
Series D | | |
(zero coupon), due 6/1/57 | 246,450,000 | 20,177,773 |
Northern California Gas Authority No. 1, Gas Project, Revenue Bonds | | |
Series B | | |
4.448%, due 7/1/27 | 21,900,000 | 21,790,875 |
Riverside County Transportation Commission, Revenue Bonds, Senior Lien | | |
Series B-1 | | |
3.00%, due 6/1/49 | 1,945,000 | 1,469,842 |
Rohnerville School District, Election 2010, Unlimited General Obligation | | |
Series B, Insured: AGM | | |
(zero coupon), due 8/1/42 | 1,000,000 | 445,216 |
Series B, Insured: AGM | | |
(zero coupon), due 8/1/47 | 1,000,000 | 340,895 |
San Diego County Regional Airport Authority, Revenue Bonds | | |
Series B | | |
4.00%, due 7/1/56 (a) | 11,160,000 | 9,985,091 |
San Joaquin Hills Transportation Corridor Agency, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 1/15/50 | 7,300,000 | 6,851,346 |
Santa Ana Unified School District, Capital Appreciation, Election 2008, Unlimited General Obligation | | |
Series B, Insured: AGC | | |
(zero coupon), due 8/1/47 | 24,400,000 | 7,632,259 |
Sierra Kings Health Care District, Unlimited General Obligation | | |
5.00%, due 8/1/37 | 2,465,000 | 2,479,743 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
California (continued) |
Stockton Unified School District, Capital Appreciation, Election 2008, Unlimited General Obligation | | |
Series D, Insured: AGM | | |
(zero coupon), due 8/1/42 | $ 8,780,000 | $ 3,960,989 |
Sutter Union High School District, Election 2008, Unlimited General Obligation | | |
Series B | | |
(zero coupon), due 6/1/50 | 16,010,000 | 2,520,690 |
Tobacco Securitization Authority of Southern California, San Diego County Tobacco Asset Securitization Corp., Asset-Backed, Revenue Bonds | | |
Series B-2 | | |
(zero coupon), due 6/1/54 | 18,500,000 | 3,582,116 |
Tobacco Securitization Authority of Southern California, San Diego County Tobacco Asset Securitization Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/48 | 1,250,000 | 1,289,831 |
West Contra Costa Healthcare District, Special Tax | | |
3.00%, due 7/1/42 | 5,620,000 | 4,599,653 |
| | 623,807,589 |
Colorado 2.3% |
3rd and Havana Metropolitan District, Tax Supported, Limited General Obligation | | |
Series A | | |
5.25%, due 12/1/49 | 2,250,000 | 1,877,250 |
Allison Valley Metropolitan District No. 2, Limited General Obligation | | |
4.70%, due 12/1/47 | 2,500,000 | 2,055,688 |
Arkansas River Power Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/38 | 6,900,000 | 7,035,597 |
Series A | | |
5.00%, due 10/1/43 | 7,025,000 | 7,107,272 |
| Principal Amount | Value |
|
Colorado (continued) |
Broadway Park North Metropolitan District No. 2, Limited General Obligation (c) | | |
5.00%, due 12/1/40 | $ 1,000,000 | $ 939,833 |
5.00%, due 12/1/49 | 1,000,000 | 908,906 |
Broadway Station Metropolitan District No. 2, Limited General Obligation | | |
Series A | | |
5.125%, due 12/1/48 | 3,000,000 | 2,385,957 |
Citadel on Colfax Business Improvement District, Revenue Bonds | | |
Series A | | |
5.35%, due 12/1/50 | 1,000,000 | 891,833 |
City & County of Denver, United Airlines, Inc., Project, Revenue Bonds | | |
5.00%, due 10/1/32 (a) | 6,800,000 | 6,795,079 |
City of Fruita Healthcare, Canyons Hospital & Medical Center Project, Revenue Bonds | | |
Series A | | |
5.50%, due 1/1/48 (c) | 9,650,000 | 8,917,056 |
Colorado Educational & Cultural Facilities Authority, Northeast Campus Project, Revenue Bonds | | |
Insured: Moral Obligation State Intercept | | |
3.00%, due 8/1/51 | 3,420,000 | 2,247,564 |
Colorado Educational & Cultural Facilities Authority, New Summit Academy, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/41 (c) | 2,600,000 | 2,177,842 |
Colorado Educational & Cultural Facilities Authority, New Vision Chater School, Revenue Bonds | | |
Series A, Insured: BAM Moral Obligation | | |
4.00%, due 6/1/42 | 2,635,000 | 2,429,468 |
Series A, Insured: BAM Moral Obligation | | |
4.00%, due 6/1/52 | 4,700,000 | 4,037,467 |
Series A, Insured: BAM Moral Obligation | | |
4.00%, due 6/1/56 | 6,255,000 | 5,249,474 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Colorado (continued) |
Colorado Health Facilities Authority, CommonSpirit Health, Revenue Bonds | | |
Series A-2, Insured: BAM | | |
3.25%, due 8/1/49 | $ 11,600,000 | $ 8,775,589 |
Series A-1 | | |
4.00%, due 8/1/44 | 4,750,000 | 4,464,131 |
Series A-2 | | |
4.00%, due 8/1/49 | 21,105,000 | 19,196,536 |
Series A-2 | | |
5.00%, due 8/1/44 | 11,425,000 | 11,745,655 |
Colorado Health Facilities Authority, Covenant Retirement Communities, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/35 | 3,500,000 | 3,504,340 |
Series A | | |
5.00%, due 12/1/48 | 6,715,000 | 6,412,636 |
Colorado Health Facilities Authority, Mental Health Center of Denver Project, Revenue Bonds | | |
Series A | | |
5.75%, due 2/1/44 | 5,330,000 | 5,331,728 |
Copper Ridge Metropolitan District, Revenue Bonds | | |
5.00%, due 12/1/39 | 3,750,000 | 3,498,909 |
Denver Health & Hospital Authority, 550 Acoma, Inc., Certificate of Participation | | |
5.00%, due 12/1/48 | 1,755,000 | 1,635,132 |
Denver Health & Hospital Authority, Revenue Bonds | | |
Series A | | |
5.25%, due 12/1/45 | 4,250,000 | 4,251,044 |
E-470 Public Highway Authority, Revenue Bonds | | |
Series B, Insured: NATL-RE | | |
(zero coupon), due 9/1/25 | 245,000 | 233,063 |
Series B, Insured: NATL-RE | | |
(zero coupon), due 9/1/29 | 4,510,000 | 3,731,374 |
Series B, Insured: NATL-RE | | |
(zero coupon), due 9/1/30 | 500,000 | 398,724 |
Series B, Insured: NATL-RE | | |
(zero coupon), due 9/1/35 | 2,245,000 | 1,307,893 |
Series B, Insured: NATL-RE | | |
(zero coupon), due 9/1/37 | 1,170,000 | 612,317 |
| Principal Amount | Value |
|
Colorado (continued) |
E-470 Public Highway Authority, Revenue Bonds (continued) | | |
Series A | | |
(zero coupon), due 9/1/39 | $ 1,800,000 | $ 930,821 |
Series B, Insured: NATL-RE | | |
(zero coupon), due 9/1/39 | 515,000 | 241,856 |
Series A | | |
(zero coupon), due 9/1/40 | 3,450,000 | 1,681,616 |
Series A | | |
(zero coupon), due 9/1/41 | 3,925,000 | 1,815,605 |
Eagle County Airport Terminal Corp., Revenue Bonds | | |
Series B | | |
5.00%, due 5/1/33 (a) | 1,450,000 | 1,486,486 |
Evan's Place Metropolitan District, Limited General Obligation | | |
Series A(3) | | |
5.00%, due 12/1/50 | 2,660,000 | 2,372,009 |
Green Gables Metropolitan District No. 2, Limited General Obligation | | |
Series A, Insured: BAM | | |
5.125%, due 12/1/53 | 675,000 | 693,624 |
Series A, Insured: BAM | | |
5.25%, due 12/1/58 | 575,000 | 591,882 |
Johnstown Plaza Metropolitan District, Limited General Obligation | | |
4.25%, due 12/1/46 | 9,078,000 | 7,363,050 |
Jones District Community Authority Board, Revenue Bonds | | |
Series A | | |
(zero coupon), due 12/1/50 (f) | 4,550,000 | 4,043,762 |
Karl's Farm Metropolitan District No. 2, Limited General Obligation | | |
Series A(3) | | |
5.625%, due 12/1/50 (c) | 1,485,000 | 1,375,504 |
Mirabelle Metropolitan District No. 2, Limited General Obligation, Senior Lien | | |
Series A | | |
5.00%, due 12/1/39 | 700,000 | 671,321 |
Series A | | |
5.00%, due 12/1/49 | 1,250,000 | 1,126,803 |
North Range Metropolitan District No. 3, Limited General Obligation | | |
Series 2020A-3 | | |
5.25%, due 12/1/50 | 1,000,000 | 952,680 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Colorado (continued) |
Park Creek Metropolitan District, Revenue Bonds, Senior Lien | | |
Series A, Insured: AGM | | |
4.00%, due 12/1/37 | $ 2,790,000 | $ 2,803,070 |
Series A, Insured: AGM | | |
4.00%, due 12/1/46 | 20,600,000 | 19,526,925 |
Park Creek Metropolitan District, Senior Ltd., Property, Revenue Bonds, Senior Lien | | |
Series A | | |
5.00%, due 12/1/45 | 4,000,000 | 3,931,842 |
Prairie Center Metropolitan District No. 3, Limited General Obligation | | |
Series A | | |
5.875%, due 12/15/46 | 2,125,000 | 2,231,250 |
Raindance Metropolitan District No. 2, Limited General Obligation | | |
Series A | | |
5.00%, due 12/1/49 | 2,500,000 | 2,259,801 |
Southglenn Metropolitan District, Special Revenue, Limited General Obligation | | |
5.00%, due 12/1/46 | 2,100,000 | 1,896,035 |
Sterling Ranch Community Authority Board, Colorado Limited Tax Supported and Special Revenue Senior Bonds, Revenue Bonds | | |
Series A | | |
4.25%, due 12/1/50 | 1,250,000 | 1,047,754 |
Village Metropolitan District (The), Special Revenue and Limited Property Tax, Limited General Obligation | | |
5.00%, due 12/1/40 | 750,000 | 726,978 |
Villages at Castle Rock Metropolitan District No. 6, Limited General Obligation | | |
Series A | | |
4.125%, due 12/1/51 (c) | 17,949,000 | 13,429,417 |
| | 203,355,448 |
Connecticut 0.4% |
City of New Haven, Unlimited General Obligation | | |
Series A | | |
4.00%, due 8/1/40 | 2,000,000 | 1,883,345 |
| Principal Amount | Value |
|
Connecticut (continued) |
City of West Haven, Unlimited General Obligation | | |
Insured: BAM | | |
4.00%, due 9/15/41 | $ 1,130,000 | $ 1,102,479 |
Connecticut State Health & Educational Facilities Authority, Yale University, Revenue Bonds | | |
Series A | | |
0.375%, due 7/1/35 (b) | 100,000 | 99,038 |
Connecticut State Health & Educational Facilities Authority, University of Hartford (The), Revenue Bonds | | |
Series N | | |
4.00%, due 7/1/39 | 5,550,000 | 4,531,496 |
Series N | | |
4.00%, due 7/1/49 | 4,000,000 | 2,909,956 |
Series N | | |
5.00%, due 7/1/31 | 575,000 | 572,227 |
Series N | | |
5.00%, due 7/1/32 | 575,000 | 570,403 |
Series N | | |
5.00%, due 7/1/33 | 475,000 | 469,472 |
Series N | | |
5.00%, due 7/1/34 | 700,000 | 689,005 |
Connecticut State Health & Educational Facilities Authority, Jerome Home, Revenue Bonds | | |
Series E | | |
4.00%, due 7/1/51 | 1,250,000 | 935,795 |
Connecticut State Health & Educational Facilities Authority, Mary Wade Home Obligated Group, Revenue Bonds (c) | | |
Series A-1 | | |
4.50%, due 10/1/34 | 2,350,000 | 2,054,921 |
Series A-1 | | |
5.00%, due 10/1/39 | 1,000,000 | 857,886 |
Connecticut State Health & Educational Facilities Authority, McLean Issue, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/30 (c) | 500,000 | 485,572 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Connecticut (continued) |
Connecticut State Health & Educational Facilities Authority, University of New Haven, Inc., Revenue Bonds | | |
Series K-3 | | |
5.00%, due 7/1/48 | $ 3,445,000 | $ 3,151,330 |
Connecticut State Health & Educational Facilities Authority, Griffin Health Obligated Group, Revenue Bonds | | |
Series G-1 | | |
5.00%, due 7/1/50 (c) | 1,750,000 | 1,509,716 |
Connecticut State Health & Educational Facilities Authority, Church Home of Hartford Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 9/1/53 (c) | 2,235,000 | 1,817,920 |
Connecticut State Higher Education Supplement Loan Authority, Chesla Loan Program, Revenue Bonds | | |
Series B, Insured: BAM | | |
3.25%, due 11/15/35 (a) | 5,300,000 | 4,725,159 |
Hartford Stadium Authority, Stadium Authority Lease, Revenue Bonds | | |
Series A | | |
5.00%, due 2/1/36 | 1,475,000 | 1,477,245 |
Steel Point Infrastructure Improvement District, Steelpointe Harbor Project, Tax Allocation (c) | | |
4.00%, due 4/1/31 | 700,000 | 660,518 |
4.00%, due 4/1/36 | 1,090,000 | 978,714 |
4.00%, due 4/1/41 | 1,785,000 | 1,513,117 |
4.00%, due 4/1/51 | 1,250,000 | 983,664 |
| | 33,978,978 |
Delaware 0.6% |
County of Kent, Student Housing & Dining Facility, CHF-Dover LLC, Delaware State University Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/40 | 1,050,000 | 1,056,942 |
Series A | | |
5.00%, due 7/1/48 | 2,735,000 | 2,715,847 |
| Principal Amount | Value |
|
Delaware (continued) |
County of Kent, Student Housing & Dining Facility, CHF-Dover LLC, Delaware State University Project, Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 7/1/53 | $ 4,040,000 | $ 3,960,709 |
Series A | | |
5.00%, due 7/1/58 | 8,100,000 | 7,829,269 |
Delaware State Economic Development Authority, Newark Charter School, Inc., Revenue Bonds | | |
4.00%, due 9/1/51 | 1,600,000 | 1,320,952 |
5.00%, due 9/1/50 | 2,100,000 | 2,075,199 |
Delaware State Economic Development Authority, ACTS Retirement-Life Communities, Inc. Obligated Group, Revenue Bonds | | |
Series B | | |
5.25%, due 11/15/53 | 4,790,000 | 4,893,442 |
Delaware State Health Facilities Authority, Beebe Medical Center, Revenue Bonds | | |
4.25%, due 6/1/38 | 2,235,000 | 2,078,244 |
4.375%, due 6/1/48 | 9,300,000 | 8,194,104 |
5.00%, due 6/1/37 | 1,000,000 | 1,002,114 |
Delaware State Health Facilities Authority, Christiana Care Health System, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/45 | 7,950,000 | 8,224,265 |
Delaware State Health Facilities Authority, Beebe Medical Center, Inc., Revenue Bonds | | |
5.00%, due 6/1/48 | 4,700,000 | 4,490,499 |
| | 47,841,586 |
District of Columbia 1.9% |
District of Columbia, Tobacco Settlement Financing Corp., Asset Backed, Revenue Bonds | | |
Series A | | |
(zero coupon), due 6/15/46 | 82,000,000 | 19,127,738 |
District of Columbia, KIPP DC Project, Revenue Bonds | | |
4.00%, due 7/1/49 | 2,420,000 | 2,096,767 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
District of Columbia (continued) |
District of Columbia, Provident Group-Howard Properties LLC, Revenue Bonds | | |
5.00%, due 10/1/30 | $ 1,410,000 | $ 1,409,987 |
5.00%, due 10/1/45 | 5,055,000 | 4,818,443 |
District of Columbia, Friendship Public Charter School, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/46 | 1,400,000 | 1,387,376 |
District of Columbia, International School Obligated Group, Revenue Bonds | | |
5.00%, due 7/1/54 | 2,550,000 | 2,509,825 |
District of Columbia, Revenue Bonds | | |
5.00%, due 6/1/55 | 4,110,000 | 3,548,042 |
District of Columbia, Methodist Home, Revenue Bonds | | |
Series A | | |
5.25%, due 1/1/39 | 1,015,000 | 884,818 |
Metropolitan Washington Airports Authority, Dulles Toll Road, Revenue Bonds, Senior Lien | | |
Series B | | |
(zero coupon), due 10/1/39 | 5,005,000 | 2,413,485 |
Metropolitan Washington Airports Authority, Dulles Toll Road, Revenue Bonds, Sub. Lien | | |
Series B | | |
4.00%, due 10/1/49 | 98,895,000 | 90,302,656 |
Metropolitan Washington Airports Authority, Dulles Toll Road, Metrorail & Capital Improvement Project, Revenue Bonds, Senior Lien | | |
Series A, Insured: AGM | | |
4.00%, due 10/1/52 | 4,000,000 | 3,772,252 |
Metropolitan Washington Airports Authority, Dulles Toll Road, Metrorail & Capital Improvement Project, Revenue Bonds, Sub. Lien | | |
Series B, Insured: AGM | | |
4.00%, due 10/1/53 | 12,950,000 | 12,028,926 |
| Principal Amount | Value |
|
District of Columbia (continued) |
Metropolitan Washington Airports Authority, Revenue Bonds (a) | | |
Series A | | |
5.00%, due 10/1/32 | $ 15,750,000 | $ 16,143,435 |
Series A | | |
5.00%, due 10/1/46 | 7,795,000 | 8,088,847 |
| | 168,532,597 |
Florida 3.1% |
Capital Projects Finance Authority, Provident Group - Continuum Properties LLC, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
5.00%, due 11/1/53 | 3,125,000 | 3,020,984 |
Capital Trust Agency, Inc., Wonderful Foundations Charter School, Revenue Bonds | | |
Series B | | |
(zero coupon), due 1/1/60 | 16,000,000 | 1,146,162 |
Series A-1 | | |
5.00%, due 1/1/55 (c) | 1,750,000 | 1,446,722 |
Capital Trust Agency, Inc., Odyssey Charter School, Inc., Revenue Bonds | | |
Series A | | |
5.50%, due 7/1/47 (c) | 2,000,000 | 1,979,173 |
Celebration Community Development District, Assessment Area 1 Project, Special Assessment | | |
3.125%, due 5/1/41 | 590,000 | 499,800 |
4.00%, due 5/1/51 | 845,000 | 713,916 |
CFM Community Development District, Capital Improvement, Special Assessment | | |
3.35%, due 5/1/41 | 200,000 | 159,161 |
4.00%, due 5/1/51 | 290,000 | 233,648 |
Charlotte County Industrial Development Authority, MSKP Town & Country Utility LLC, Revenue Bonds | | |
5.00%, due 10/1/49 (c) | 1,700,000 | 1,675,387 |
City of Atlantic Beach, Fleet Landing Project, Revenue Bonds | | |
Series A | | |
5.00%, due 11/15/48 | 3,000,000 | 2,889,127 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Florida (continued) |
City of Atlantic Beach, Fleet Landing Project, Revenue Bonds (continued) | | |
Series B | | |
5.625%, due 11/15/43 | $ 1,500,000 | $ 1,500,857 |
City of Fort Myers, Utility System, Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/49 | 10,155,000 | 9,545,370 |
City of Pompano Beach, John Knox Village Project, Revenue Bonds | | |
Series A | | |
4.00%, due 9/1/51 | 650,000 | 501,538 |
Series A | | |
4.00%, due 9/1/56 | 4,915,000 | 3,669,632 |
City of Tallahassee, Tallahassee Memorial HealthCare, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/40 | 6,835,000 | 6,837,614 |
Collier County Health Facilities Authority, Moorings, Inc. Obligated Group (The), Revenue Bonds | | |
4.00%, due 5/1/52 | 7,900,000 | 6,984,930 |
Cordova Palms Community Development District, Special Assessment | | |
3.00%, due 5/1/41 | 1,110,000 | 846,070 |
County of Osceola, Transportation, Revenue Bonds | | |
Series A-1, Insured: AGM-CR | | |
4.00%, due 10/1/54 | 4,345,000 | 3,887,558 |
Series A-1 | | |
5.00%, due 10/1/44 | 11,000,000 | 11,292,074 |
Cypress Ridge Community Development District, Assessment Area One Project, Special Assessment | | |
5.625%, due 5/1/43 | 1,250,000 | 1,268,048 |
5.875%, due 5/1/53 | 1,000,000 | 1,016,399 |
Elevation Pointe Community Development District, Special Assessment | | |
Series A-1 | | |
4.60%, due 5/1/52 | 1,090,000 | 965,492 |
| Principal Amount | Value |
|
Florida (continued) |
Epperson North Community Development District, Assessment Area 3, Special Assessment | | |
Series A | | |
3.40%, due 11/1/41 | $ 1,945,000 | $ 1,513,507 |
Epperson North Community Development District, Assessment Area 2, Special Assessment | | |
3.50%, due 5/1/41 | 1,430,000 | 1,141,196 |
Escambia County Health Facilities Authority, Baptist Health Care Corp. Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 8/15/50 | 4,865,000 | 4,169,213 |
Florida Development Finance Corp., UF Health Jacksonville Project, Revenue Bonds | | |
Series A, Insured: AGM-CR | | |
4.00%, due 2/1/52 | 14,005,000 | 12,947,678 |
Series A | | |
5.00%, due 2/1/40 | 2,600,000 | 2,490,619 |
Series A | | |
5.00%, due 2/1/52 | 6,350,000 | 5,556,165 |
Florida Development Finance Corp., River City Education Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/55 | 1,000,000 | 763,831 |
Florida Development Finance Corp., Florida Charter Foundation, Inc. Project, Revenue Bonds | | |
Series A | | |
4.75%, due 7/15/36 (c) | 4,755,000 | 4,604,838 |
Florida Development Finance Corp., Mater Academy Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/15/47 | 1,700,000 | 1,660,318 |
Series A | | |
5.00%, due 6/15/50 | 3,000,000 | 2,885,063 |
Series A | | |
5.00%, due 6/15/52 | 1,275,000 | 1,217,091 |
Series A | | |
5.00%, due 6/15/55 | 8,050,000 | 7,587,064 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Florida (continued) |
Florida Higher Educational Facilities Financial Authority, Ringling College Project, Revenue Bonds | | |
4.00%, due 3/1/47 | $ 6,515,000 | $ 5,504,754 |
5.00%, due 3/1/47 | 4,750,000 | 4,708,907 |
Florida Higher Educational Facilities Financial Authority, Saint Leo University Project, Revenue Bonds | | |
5.00%, due 3/1/44 | 1,370,000 | 988,075 |
5.00%, due 3/1/49 | 1,630,000 | 1,121,507 |
Hillsborough County Industrial Development Authority, Tampa General Hospital Project, Revenue Bonds | | |
Series A, Insured: BAM | | |
4.00%, due 8/1/50 | 40,340,000 | 36,040,926 |
Series A | | |
4.00%, due 8/1/55 | 52,185,000 | 44,468,733 |
Lakewood Ranch Stewardship District, Star Farms at Lakewood Ranch Project Phase 1 and 2, Special Assessment | | |
3.00%, due 5/1/41 | 430,000 | 331,881 |
4.00%, due 5/1/52 | 670,000 | 538,694 |
Lee Memorial Health System, Revenue Bonds | | |
Series A-1 | | |
4.00%, due 4/1/49 | 4,015,000 | 3,688,067 |
Miami Beach Health Facilities Authority, Mt Sinai Medical Center, Revenue Bonds | | |
Series B | | |
3.00%, due 11/15/51 | 4,190,000 | 3,032,356 |
5.00%, due 11/15/39 | 2,230,000 | 2,234,414 |
Mid-Bay Bridge Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/35 | 1,500,000 | 1,514,788 |
Series C | | |
5.00%, due 10/1/40 | 1,000,000 | 1,003,349 |
Mirada II Community Development District, Capital Improvement, Special Assessment | | |
3.125%, due 5/1/31 | 495,000 | 439,684 |
3.50%, due 5/1/41 | 990,000 | 803,926 |
4.00%, due 5/1/51 | 1,885,000 | 1,507,505 |
| Principal Amount | Value |
|
Florida (continued) |
New Port Tampa Bay Community Development District, Special Assessment | | |
3.50%, due 5/1/31 | $ 310,000 | $ 288,737 |
4.125%, due 5/1/52 | 365,000 | 298,211 |
North Powerline Road Community Development District, Special Assessment | | |
3.625%, due 5/1/40 | 500,000 | 419,517 |
4.00%, due 5/1/51 | 1,075,000 | 864,804 |
Osceola County Expressway Authority, Poinciana Parkway Project, Revenue Bonds, Senior Lien | | |
Series B-2 | | |
(zero coupon), due 10/1/36 (f) | 3,700,000 | 4,267,754 |
Palm Beach County Health Facilities Authority, Toby & Leon Cooperman Sinai residencies of Boca Raton, Revenue Bonds | | |
4.00%, due 6/1/36 | 4,000,000 | 3,674,554 |
Pinellas County Educational Facilities Authority, Pinellas Academy Math & Science Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/15/48 (c) | 3,030,000 | 2,877,493 |
Polk County Industrial Development Authority, Carpenter's Home Estates, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/39 | 1,750,000 | 1,705,517 |
Polk County Industrial Development Authority, Carpenter's Home Estates, Inc. Project, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/55 | 800,000 | 711,837 |
Preston Cove Community Development District, Special Assessment | | |
4.00%, due 5/1/42 | 1,825,000 | 1,574,877 |
Saltleaf Community Development District, Series 2024 Assessments, Special Assessment | | |
5.625%, due 5/1/44 | 1,500,000 | 1,462,244 |
6.00%, due 5/1/56 | 1,500,000 | 1,466,781 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Florida (continued) |
Sawyers Landing Community Development District, Special Assessment | | |
3.75%, due 5/1/31 | $ 1,550,000 | $ 1,421,280 |
4.25%, due 5/1/53 | 3,000,000 | 2,344,047 |
Shingle Creek at Bronson Community Development District, Special Assessment | | |
3.50%, due 6/15/41 | 1,000,000 | 879,239 |
South Broward Hospital District, Revenue Bonds | | |
Series A | | |
3.00%, due 5/1/51 | 17,550,000 | 12,686,196 |
Southern Groves Community Development District No. 5, Series 2024 Assessment Area, Special Assessment | | |
5.70%, due 5/1/50 | 1,035,000 | 1,029,536 |
Stillwater Community Development District, 2021 Project, Special Assessment (c) | | |
3.00%, due 6/15/31 | 410,000 | 369,868 |
3.50%, due 6/15/41 | 1,000,000 | 814,512 |
Tradition Community Development District No. 9, Special Assessment | | |
3.00%, due 5/1/41 | 1,800,000 | 1,355,003 |
Two Rivers North Community Development District, Special Assessment | | |
5.25%, due 5/1/52 | 1,500,000 | 1,465,588 |
V-Dana Community Development District, Special Assessment | | |
3.625%, due 5/1/41 | 1,040,000 | 865,714 |
Veranda Community Development District II, Special Assessment | | |
3.60%, due 5/1/41 (c) | 235,000 | 194,777 |
Viera Stewardship District, Village 2 Project, Special Assessment | | |
Series 2 | | |
5.30%, due 5/1/43 | 2,340,000 | 2,365,018 |
Series 2 | | |
5.50%, due 5/1/54 | 3,000,000 | 3,021,526 |
Village Community Development District No. 15, Special Assessment (c) | | |
5.00%, due 5/1/43 | 1,000,000 | 1,016,986 |
| Principal Amount | Value |
|
Florida (continued) |
Village Community Development District No. 15, Special Assessment (c) (continued) | | |
5.25%, due 5/1/54 | $ 1,800,000 | $ 1,839,885 |
Windward at Lakewood Ranch Community Development District, Phase 2 Project, Special Assessment | | |
4.00%, due 5/1/42 | 1,765,000 | 1,499,115 |
4.25%, due 5/1/52 | 2,210,000 | 1,801,438 |
| | 271,125,865 |
Georgia 1.5% |
Atlanta Urban Redevelopment Agency, Atlanta BeltLine Special Service District, Revenue Bonds | | |
Insured: BAM | | |
3.625%, due 7/1/42 (c) | 5,355,000 | 4,776,318 |
Brookhaven Development Authority, Children's Healthcare of Atlanta, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/49 | 9,600,000 | 9,050,859 |
Columbia County Hospital Authority, WellStar Health System, Revenue Bonds | | |
Series A | | |
5.75%, due 4/1/53 | 10,500,000 | 11,632,759 |
DeKalb County Development Authority, GLOBE Academy, Inc. (The), Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/50 | 300,000 | 294,779 |
Series A | | |
5.00%, due 6/1/55 | 400,000 | 386,377 |
Series A | | |
5.00%, due 6/1/63 | 1,315,000 | 1,239,341 |
Development Authority of Cobb County (The), Kennesaw State University, Revenue Bonds, Junior Lien | | |
Series C | | |
5.00%, due 7/15/38 | 85,000 | 86,443 |
Series C | | |
5.00%, due 7/15/38 | 2,305,000 | 2,268,754 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Georgia (continued) |
Fulton County Residential Care Facilities for the Elderly Authority, Lenbrook Square Foundation, Inc., Revenue Bonds | | |
5.00%, due 7/1/36 | $ 3,500,000 | $ 3,500,472 |
Gainesville & Hall County Development Authority, Riverside Military Academy, Inc., Revenue Bonds | | |
5.125%, due 3/1/52 | 1,500,000 | 1,000,973 |
George L Smith II Congress Center Authority, Convention Centre Hotel, Revenue Bonds, First Tier | | |
Series A | | |
4.00%, due 1/1/54 | 4,750,000 | 4,063,393 |
George L Smith II Congress Center Authority, Convention Centre Hotel, Revenue Bonds, Second Tier | | |
Series B | | |
5.00%, due 1/1/54 (c) | 4,000,000 | 3,568,562 |
Main Street Natural Gas, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 5/15/39 | 6,550,000 | 6,027,387 |
Series A | | |
5.00%, due 5/15/38 | 3,500,000 | 3,616,498 |
Municipal Electric Authority of Georgia, Project One Subordinated Bonds, Revenue Bonds | | |
Series A, Insured: BAM | | |
4.00%, due 1/1/49 | 14,150,000 | 12,958,690 |
Municipal Electric Authority of Georgia, Plant Vogtle Units 3&4 Project, Revenue Bonds | | |
Series B | | |
4.00%, due 1/1/49 | 11,335,000 | 9,935,359 |
Series B, Insured: BAM | | |
4.00%, due 1/1/49 | 56,515,000 | 51,756,917 |
Municipal Electric Authority of Georgia, Revenue Bonds | | |
Series A | | |
4.00%, due 1/1/59 | 5,000,000 | 4,373,402 |
Series A, Insured: AGM | | |
5.00%, due 7/1/48 | 1,500,000 | 1,561,919 |
| | 132,099,202 |
| Principal Amount | Value |
|
Guam 0.4% |
Guam Department of Education, John F. Kennedy High School Refunding & Energy Efficiency Project, Certificate of Participation | | |
Series A | | |
4.25%, due 2/1/30 | $ 1,190,000 | $ 1,153,937 |
Series A | | |
5.00%, due 2/1/40 | 4,825,000 | 4,696,833 |
Guam Government Waterworks Authority, Water and Wastewater System, Revenue Bonds | | |
5.00%, due 7/1/40 | 230,000 | 236,145 |
Series A | | |
5.00%, due 1/1/50 | 7,370,000 | 7,513,780 |
Port Authority of Guam, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/48 | 4,850,000 | 4,869,472 |
Territory of Guam, Business Privilege Tax, Revenue Bonds | | |
Series F | | |
4.00%, due 1/1/36 | 5,820,000 | 5,721,332 |
Series D | | |
5.00%, due 11/15/32 | 2,000,000 | 2,026,645 |
Series D | | |
5.00%, due 11/15/34 | 4,580,000 | 4,631,878 |
Series D | | |
5.00%, due 11/15/35 | 5,600,000 | 5,658,155 |
| | 36,508,177 |
Hawaii 0.5% |
Kauai County Community Facilities District, Kukui'ula Development Project, Special Tax | | |
4.375%, due 5/15/42 | 2,300,000 | 2,026,853 |
5.00%, due 5/15/49 | 4,250,000 | 4,176,480 |
5.00%, due 5/15/51 | 5,585,000 | 5,452,731 |
State of Hawaii Department of Budget & Finance, Hawaiian Electric Co., Inc., Revenue Bonds (a) | | |
Insured: AGM-CR | | |
3.50%, due 10/1/49 | 25,800,000 | 20,165,773 |
Series B | | |
4.00%, due 3/1/37 | 5,000,000 | 3,338,535 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Hawaii (continued) |
State of Hawaii Department of Budget & Finance, Chaminade University of Honolulu, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/45 (c) | $ 1,500,000 | $ 1,290,200 |
State of Hawaii Department of Budget & Finance, Hawaii Pacific University, Revenue Bonds (c) | | |
Series A | | |
6.625%, due 7/1/33 | 2,085,000 | 2,087,176 |
Series A | | |
6.875%, due 7/1/43 | 4,240,000 | 4,242,351 |
| | 42,780,099 |
Idaho 0.1% |
Idaho Health Facilities Authority, St Luke's Health System Project, Revenue Bonds | | |
Series A | | |
3.00%, due 3/1/51 | 8,750,000 | 6,346,223 |
Idaho Health Facilities Authority, Madison Memorial Hospital, Revenue Bonds | | |
5.00%, due 9/1/37 | 2,100,000 | 2,080,682 |
Idaho Housing & Finance Association, Gem Prep: Meridian Project, Revenue Bonds | | |
Series A, Insured: School Bond Guaranty | | |
4.00%, due 5/1/57 | 4,315,000 | 3,535,856 |
| | 11,962,761 |
Illinois 9.8% |
Bridgeview Finance Corp., Sales Tax, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/42 | 7,150,000 | 6,832,483 |
Chicago Board of Education, Capital Appreciation, School Reform, Unlimited General Obligation | | |
Series A, Insured: NATL-RE | | |
(zero coupon), due 12/1/27 | 5,125,000 | 4,399,225 |
Series B-1, Insured: NATL-RE | | |
(zero coupon), due 12/1/30 | 12,900,000 | 9,695,812 |
Series A, Insured: NATL-RE | | |
(zero coupon), due 12/1/31 | 170,000 | 121,881 |
| Principal Amount | Value |
|
Illinois (continued) |
Chicago Board of Education, Capital Appreciation, School Reform, Unlimited General Obligation (continued) | | |
Series B-1, Insured: NATL-RE | | |
(zero coupon), due 12/1/31 | $ 1,095,000 | $ 785,060 |
Chicago Board of Education, Unlimited General Obligation | | |
Series B | | |
4.00%, due 12/1/38 | 3,750,000 | 3,516,920 |
Series A | | |
4.00%, due 12/1/42 | 2,965,000 | 2,685,564 |
Series A | | |
4.00%, due 12/1/43 | 4,000,000 | 3,573,782 |
Series A, Insured: BAM | | |
4.00%, due 12/1/47 | 43,945,000 | 39,138,252 |
Series A | | |
5.00%, due 12/1/30 | 3,500,000 | 3,635,413 |
Series B | | |
5.00%, due 12/1/31 | 4,650,000 | 4,874,042 |
Series A | | |
5.00%, due 12/1/37 | 13,405,000 | 13,780,123 |
Series A | | |
5.00%, due 12/1/38 | 5,150,000 | 5,267,697 |
Series G | | |
5.00%, due 12/1/44 | 2,785,000 | 2,758,256 |
Series D | | |
5.00%, due 12/1/46 | 11,100,000 | 10,907,859 |
Series A | | |
5.00%, due 12/1/47 | 30,695,000 | 30,425,771 |
Series C | | |
5.25%, due 12/1/39 | 1,405,000 | 1,401,974 |
Series A | | |
7.00%, due 12/1/44 | 10,975,000 | 11,361,395 |
Chicago Board of Education, Dedicated Capital Improvement, Unlimited General Obligation | | |
Series C | | |
5.00%, due 12/1/34 | 2,270,000 | 2,309,564 |
Series H | | |
5.00%, due 12/1/36 | 1,915,000 | 1,937,505 |
Series B | | |
7.00%, due 12/1/42 (c) | 9,600,000 | 10,401,554 |
Series A | | |
7.00%, due 12/1/46 (c) | 3,650,000 | 3,931,116 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
25
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Illinois (continued) |
Chicago Board of Education, Dedicated Capital Improvement, Revenue Bonds | | |
5.00%, due 4/1/35 | $ 1,615,000 | $ 1,675,321 |
5.00%, due 4/1/36 | 1,270,000 | 1,313,492 |
5.00%, due 4/1/46 | 4,650,000 | 4,689,646 |
5.75%, due 4/1/48 | 5,750,000 | 6,303,714 |
6.00%, due 4/1/46 | 41,400,000 | 43,076,211 |
Chicago Board of Education Dedicated Capital Improvement Tax, Dedicated Capital Improvement, Revenue Bonds | | |
Insured: BAM | | |
5.00%, due 4/1/42 | 3,500,000 | 3,579,427 |
Chicago O'Hare International Airport, TRIPS Obligated Group, Revenue Bonds | | |
5.00%, due 7/1/38 (a) | 1,500,000 | 1,518,802 |
Chicago O'Hare International Airport, General, Revenue Bonds, Senior Lien | | |
Series A, Insured: AGM | | |
5.50%, due 1/1/53 (a) | 4,690,000 | 4,964,769 |
City of Chicago, City Colleges Capital Improvement Project, Unlimited General Obligation | | |
Insured: NATL-RE | | |
(zero coupon), due 1/1/34 | 300,000 | 197,318 |
City of Chicago, Waterworks, Revenue Bonds, Second Lien | | |
4.00%, due 11/1/37 | 3,145,000 | 3,092,127 |
City of Chicago, Unlimited General Obligation | | |
Series A | | |
5.00%, due 1/1/39 | 5,650,000 | 5,835,323 |
Series A | | |
5.00%, due 1/1/40 | 3,900,000 | 4,013,738 |
Series A | | |
5.00%, due 1/1/44 | 11,150,000 | 11,369,969 |
Series A | | |
5.50%, due 1/1/49 | 17,950,000 | 18,522,133 |
Series A | | |
6.00%, due 1/1/38 | 38,545,000 | 40,165,208 |
City of Chicago, Taxable Project, Unlimited General Obligation | | |
Series B | | |
5.50%, due 1/1/31 | 2,360,000 | 2,379,024 |
| Principal Amount | Value |
|
Illinois (continued) |
City of Chicago, Taxable Project, Unlimited General Obligation (continued) | | |
Series D | | |
5.50%, due 1/1/37 | $ 3,500,000 | $ 3,519,384 |
Series A | | |
5.75%, due 1/1/34 | 3,550,000 | 3,696,333 |
City of Galesburg, Knox College Project, Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/46 | 6,700,000 | 5,551,314 |
Illinois Finance Authority, Midwestern University Foundation, Revenue Bonds | | |
Series A | | |
2.25%, due 7/1/33 (a) | 500,000 | 408,470 |
Illinois Finance Authority, University of Illinois Health Services, Revenue Bonds | | |
4.00%, due 10/1/50 | 13,850,000 | 11,632,049 |
4.00%, due 10/1/55 | 5,365,000 | 4,371,811 |
Illinois Finance Authority, Bradley University, Revenue Bonds | | |
Series A | | |
4.00%, due 8/1/51 | 3,225,000 | 2,712,902 |
Illinois Finance Authority, Learn Charter School Project, Revenue Bonds | | |
4.00%, due 11/1/51 | 1,600,000 | 1,290,311 |
4.00%, due 11/1/56 | 750,000 | 588,785 |
Illinois Finance Authority, Rosalind Franklin University of Medicine & Science, Revenue Bonds | | |
Series C | | |
4.25%, due 8/1/42 | 2,900,000 | 2,602,308 |
Illinois Finance Authority, Noble Network Charter Schools, Revenue Bonds | | |
5.00%, due 9/1/32 | 1,830,000 | 1,791,671 |
Illinois Finance Authority, Friendship Village Schaumburg, Revenue Bonds (d)(e)(f) | | |
5.00%, due 2/15/37 | 7,375,000 | 1,696,250 |
5.125%, due 2/15/45 | 5,715,000 | 1,314,450 |
Illinois Finance Authority, Columbia College Chicago, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/37 | 9,650,000 | 9,171,334 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
26 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Illinois (continued) |
Illinois Finance Authority, Christian Homes, Inc., Revenue Bonds | | |
5.00%, due 5/15/40 | $ 1,265,000 | $ 537,625 |
Illinois Finance Authority, Franciscan Communities, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 5/15/47 | 1,155,000 | 1,082,925 |
Illinois Finance Authority, Chicago International School Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/47 | 3,000,000 | 2,816,629 |
Illinois Finance Authority, Rosalind Franklin University of Medicine and Science, Revenue Bonds | | |
Series C | | |
5.00%, due 8/1/49 | 1,300,000 | 1,249,101 |
Illinois Finance Authority, Student Housing & Academic Facility, CHF-Chicago LLC, University of Illinois at Chicago Project, Revenue Bonds | | |
Series A | | |
5.00%, due 2/15/50 | 7,985,000 | 7,468,868 |
Illinois Finance Authority, Roosevelt University Project, Revenue Bonds | | |
5.50%, due 4/1/32 | 2,000,000 | 1,952,342 |
Illinois Finance Authority, Roosevelt University, Revenue Bonds (c) | | |
Series A | | |
6.00%, due 4/1/38 | 2,990,000 | 2,975,882 |
Series A | | |
6.125%, due 4/1/49 | 2,355,000 | 2,263,394 |
Macon County School District No. 61 Decatur, Unlimited General Obligation | | |
Series C, Insured: AGM | | |
4.00%, due 1/1/40 | 2,500,000 | 2,454,420 |
Series C, Insured: AGM | | |
4.00%, due 1/1/45 | 2,875,000 | 2,697,258 |
Metropolitan Pier & Exposition Authority, McCormick Place Expansion Project, Revenue Bonds | | |
Series A, Insured: AGM-CR | | |
(zero coupon), due 6/15/30 | 5,675,000 | 4,548,621 |
| Principal Amount | Value |
|
Illinois (continued) |
Metropolitan Pier & Exposition Authority, McCormick Place Expansion Project, Revenue Bonds (continued) | | |
Series A, Insured: NATL-RE | | |
(zero coupon), due 12/15/32 | $ 37,700,000 | $ 27,079,461 |
Series A, Insured: NATL-RE | | |
(zero coupon), due 6/15/33 | 1,165,000 | 818,406 |
Series A, Insured: NATL-RE | | |
(zero coupon), due 12/15/33 | 2,250,000 | 1,549,926 |
Series A, Insured: NATL-RE | | |
(zero coupon), due 6/15/34 | 45,315,000 | 30,508,972 |
Series A, Insured: NATL-RE | | |
(zero coupon), due 12/15/36 | 33,795,000 | 19,965,873 |
Series A, Insured: NATL-RE | | |
(zero coupon), due 6/15/37 | 6,000,000 | 3,441,713 |
Series A | | |
(zero coupon), due 6/15/37 | 3,000,000 | 1,688,031 |
Series A, Insured: NATL-RE | | |
(zero coupon), due 12/15/37 | 29,910,000 | 16,671,260 |
Series A, Insured: NATL-RE | | |
(zero coupon), due 6/15/38 | 14,365,000 | 7,748,195 |
Series A | | |
(zero coupon), due 12/15/39 | 3,500,000 | 1,702,301 |
Series A, Insured: AGM-CR NATL-RE | | |
(zero coupon), due 12/15/40 | 27,700,000 | 13,418,107 |
Series B-1, Insured: AGM | | |
(zero coupon), due 6/15/44 | 13,660,000 | 5,330,341 |
Series B-1, Insured: AGM | | |
(zero coupon), due 6/15/47 | 6,270,000 | 2,031,844 |
Series B | | |
(zero coupon), due 12/15/50 | 37,865,000 | 9,331,860 |
Series B | | |
(zero coupon), due 12/15/51 | 57,100,000 | 13,275,453 |
Series A, Insured: AGM | | |
(zero coupon), due 12/15/52 | 6,180,000 | 1,473,583 |
Series B, Insured: BAM | | |
(zero coupon), due 12/15/54 | 56,510,000 | 12,045,462 |
Series A, Insured: BAM | | |
(zero coupon), due 12/15/56 | 51,050,000 | 9,774,247 |
Series A, Insured: AGM-CR | | |
(zero coupon), due 12/15/56 | 22,250,000 | 4,260,078 |
Series B, Insured: AGM | | |
(zero coupon), due 12/15/56 | 10,000,000 | 1,914,642 |
Series A, Insured: BAM | | |
4.00%, due 12/15/42 | 2,500,000 | 2,356,848 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
27
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Illinois (continued) |
Metropolitan Pier & Exposition Authority, McCormick Place Expansion Project, Revenue Bonds (continued) | | |
Series A | | |
4.00%, due 6/15/50 | $ 23,900,000 | $ 21,228,088 |
Series A | | |
4.00%, due 6/15/52 | 27,500,000 | 24,151,911 |
Series B | | |
5.00%, due 6/15/42 | 1,430,000 | 1,491,089 |
Series A | | |
5.00%, due 6/15/50 | 1,000,000 | 1,020,484 |
Metropolitan Pier & Exposition Authority, Mccormick Place Expansion Project, Revenue Bonds | | |
Series A | | |
(zero coupon), due 12/15/38 | 3,750,000 | 1,926,227 |
Metropolitan Pier & Exposition Authority, McCormick Place Expansion Project, Capital Appreciation, Revenue Bonds | | |
Series B-1, Insured: AGM | | |
(zero coupon), due 6/15/43 | 32,130,000 | 13,386,801 |
Metropolitan Pier & Exposition Authority, Revenue Bonds | | |
Series B-1, Insured: AGM | | |
(zero coupon), due 6/15/45 | 3,150,000 | 1,155,039 |
Northern Illinois University, Revenue Bonds | | |
Insured: BAM | | |
4.00%, due 10/1/40 | 1,245,000 | 1,183,916 |
Insured: BAM | | |
4.00%, due 10/1/41 | 1,660,000 | 1,566,116 |
Sangamon County Water Reclamation District, Alternative Revenue Source, Unlimited General Obligation | | |
Series A, Insured: BAM | | |
4.00%, due 1/1/49 | 13,600,000 | 12,584,559 |
State of Illinois, Unlimited General Obligation | | |
Series A | | |
4.00%, due 3/1/40 | 1,360,000 | 1,297,852 |
Series C | | |
4.00%, due 10/1/40 | 1,500,000 | 1,419,861 |
| Principal Amount | Value |
|
Illinois (continued) |
State of Illinois, Unlimited General Obligation (continued) | | |
Insured: BAM | | |
4.00%, due 6/1/41 | $ 27,720,000 | $ 26,569,720 |
Series C | | |
4.00%, due 10/1/41 | 7,550,000 | 7,122,278 |
Series C | | |
4.00%, due 10/1/42 | 8,650,000 | 8,066,412 |
Series C | | |
4.25%, due 10/1/45 | 23,200,000 | 21,555,380 |
Series A | | |
4.50%, due 12/1/41 | 6,425,000 | 6,337,269 |
Series A | | |
5.00%, due 12/1/27 | 2,315,000 | 2,422,524 |
Series B | | |
5.00%, due 12/1/27 | 8,915,000 | 9,329,073 |
5.00%, due 2/1/28 | 2,700,000 | 2,792,062 |
Series C | | |
5.00%, due 11/1/29 | 14,135,000 | 14,758,958 |
Series A | | |
5.00%, due 12/1/31 | 1,485,000 | 1,551,065 |
Series A | | |
5.00%, due 12/1/39 | 2,400,000 | 2,461,400 |
Series A | | |
5.00%, due 5/1/40 | 2,000,000 | 2,050,317 |
5.75%, due 5/1/45 | 16,820,000 | 18,088,702 |
State of Illinois, Rebuild Illinois Program, Unlimited General Obligation | | |
Series C | | |
4.00%, due 11/1/41 | 19,300,000 | 18,078,250 |
Upper Illinois River Valley Development Authority, Morris Hospital Obligated Group, Revenue Bonds | | |
5.00%, due 12/1/43 | 1,600,000 | 1,597,547 |
5.00%, due 12/1/48 | 13,055,000 | 12,676,021 |
Village of Bridgeview, Unlimited General Obligation | | |
Series A | | |
5.125%, due 12/1/44 | 100,000 | 91,246 |
Series A | | |
5.50%, due 12/1/43 | 1,545,000 | 1,487,237 |
Series A | | |
5.50%, due 12/1/43 | 1,260,000 | 1,212,893 |
Series A | | |
5.625%, due 12/1/41 | 3,940,000 | 3,903,654 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
28 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Illinois (continued) |
Village of Bridgeview, Unlimited General Obligation (continued) | | |
Series A | | |
5.75%, due 12/1/35 | $ 2,705,000 | $ 2,727,697 |
Village of Oak Lawn, Corporate Purpose, Unlimited General Obligation | | |
Insured: NATL-RE | | |
4.40%, due 12/1/26 | 400,000 | 386,100 |
Insured: NATL-RE | | |
4.45%, due 12/1/28 | 430,000 | 409,629 |
Insured: NATL-RE | | |
4.50%, due 12/1/30 | 475,000 | 475,012 |
Insured: NATL-RE | | |
4.50%, due 12/1/32 | 520,000 | 486,770 |
Insured: NATL-RE | | |
4.50%, due 12/1/34 | 575,000 | 575,135 |
Village of Riverdale, Unlimited General Obligation | | |
8.00%, due 10/1/36 | 1,610,000 | 1,613,612 |
Village of Romeoville, Lewis University, Revenue Bonds | | |
Series B | | |
4.125%, due 10/1/46 | 3,600,000 | 2,868,766 |
Series B | | |
5.00%, due 10/1/36 | 1,000,000 | 981,384 |
Series B | | |
5.00%, due 10/1/39 | 1,275,000 | 1,226,126 |
| | 849,532,692 |
Indiana 0.7% |
City of Mount Vernon, Southern Indiana Gas & Electric Co., Revenue Bonds | | |
4.25%, due 9/1/55 (a)(b) | 7,750,000 | 7,747,809 |
City of Valparaiso, Pratt Paper LLC Project, Revenue Bonds | | |
7.00%, due 1/1/44 (a) | 5,200,000 | 5,202,571 |
County of Warrick, Southern Indiana Gas & Electric Co., Revenue Bonds | | |
4.25%, due 9/1/55 (a)(b) | 7,350,000 | 7,347,922 |
Indiana Finance Authority, Marian University, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 9/15/44 | 1,090,000 | 896,644 |
| Principal Amount | Value |
|
Indiana (continued) |
Indiana Finance Authority, University of Indianapolis Education Facilities Project, Revenue Bonds | | |
5.00%, due 10/1/43 | $ 2,000,000 | $ 1,984,686 |
Indiana Finance Authority, BHI Senior Living, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 11/15/48 | 4,650,000 | 4,636,866 |
Series A | | |
5.00%, due 11/15/53 | 4,100,000 | 3,976,838 |
Indiana Finance Authority, Margaret Mary Community Hospital Obligated Group, Revenue Bonds | | |
Series A | | |
5.75%, due 3/1/54 | 7,250,000 | 7,654,734 |
Indiana Finance Authority, United States Steel Corp., Revenue Bonds | | |
Series A | | |
6.75%, due 5/1/39 (a) | 1,250,000 | 1,388,357 |
Terre Haute Sanitary District, Revenue Bonds | | |
5.25%, due 9/28/28 | 20,250,000 | 20,253,625 |
Town of Upland, Taylor University Project, Revenue Bonds | | |
4.00%, due 9/1/46 | 3,000,000 | 2,647,709 |
| | 63,737,761 |
Iowa 1.0% |
City of Coralville, Annual Appropriation, Revenue Bonds | | |
Series B | | |
4.25%, due 5/1/37 | 890,000 | 794,719 |
City of Coralville, Annual Appropriation, Tax Allocation | | |
Series C | | |
4.50%, due 5/1/47 | 2,930,000 | 2,597,778 |
City of Coralville, Revenue Bonds | | |
Series C | | |
5.00%, due 5/1/42 | 6,900,000 | 6,485,005 |
Iowa Finance Authority, Iowa Fertilizer Co. Project, Revenue Bonds | | |
5.00%, due 12/1/50 | 15,235,000 | 15,870,824 |
Iowa Higher Education Loan Authority, Des Moines University Project, Revenue Bonds | | |
4.00%, due 10/1/45 | 13,850,000 | 12,178,820 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
29
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Iowa (continued) |
Iowa Tobacco Settlement Authority, Capital Appreciation, Revenue Bonds | | |
Series B-2, Class 2 | | |
(zero coupon), due 6/1/65 | $ 230,200,000 | $ 28,849,585 |
Iowa Tobacco Settlement Authority, Revenue Bonds | | |
Series A-2, Class 1 | | |
4.00%, due 6/1/49 | 9,905,000 | 8,837,238 |
Series B-1, Class 2 | | |
4.00%, due 6/1/49 | 3,820,000 | 3,764,434 |
State of Iowa Board of Regents, University of Iowa Hospitals & Clinics, Revenue Bonds | | |
Series B | | |
3.00%, due 9/1/61 | 8,700,000 | 5,832,985 |
| | 85,211,388 |
Kansas 0.3% |
City of Manhattan, Meadowlark Hills Retirement Community, Revenue Bonds | | |
Series A | | |
4.00%, due 6/1/46 | 1,000,000 | 790,063 |
Wyandotte County-Kansas City Unified Government, Vacation Village Project Area 4 - Major Multi-Sport Athletic Complex Project, Revenue Bonds | | |
(zero coupon), due 9/1/34 (c) | 49,555,000 | 20,463,985 |
Series A | | |
5.00%, due 9/1/27 | 4,505,000 | 4,392,180 |
| | 25,646,228 |
Kentucky 1.2% |
City of Campbellsville, Campbellsville University Project, Revenue Bonds | | |
5.00%, due 3/1/39 | 4,430,000 | 4,254,784 |
City of Columbia, Lindsey Wilson College Project, Revenue Bonds | | |
5.00%, due 12/1/33 | 3,555,000 | 3,538,212 |
City of Henderson, Pratt Paper LLC Project, Revenue Bonds (a)(c) | | |
Series A | | |
4.45%, due 1/1/42 | 7,950,000 | 7,806,413 |
Series B | | |
4.45%, due 1/1/42 | 8,950,000 | 8,788,351 |
| Principal Amount | Value |
|
Kentucky (continued) |
City of Henderson, Pratt Paper LLC Project, Revenue Bonds (a)(c) (continued) | | |
Series A | | |
4.70%, due 1/1/52 | $ 12,155,000 | $ 11,969,201 |
Series B | | |
4.70%, due 1/1/52 | 4,350,000 | 4,283,507 |
County of Knott, Revenue Bonds | | |
4.00%, due 3/28/44 (a)(b)(c) | 28,000,000 | 27,919,612 |
Kentucky Economic Development Finance Authority, Owensboro Health, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/45 | 13,500,000 | 13,504,271 |
Kentucky Municipal Power Agency, Prairie State Project, Revenue Bonds | | |
Series A | | |
4.00%, due 9/1/45 | 20,335,000 | 17,693,158 |
| | 99,757,509 |
Louisiana 0.1% |
Calcasieu Parish Memorial Hospital Service District, Lake Charles Memorial Hospital Project, Revenue Bonds | | |
5.00%, due 12/1/39 | 1,475,000 | 1,385,444 |
Louisiana Local Government Environmental Facilities & Community Development Authority, Peoples of Bastrop LLC Project, Revenue Bonds | | |
5.625%, due 6/15/51 (c) | 2,500,000 | 2,087,647 |
Louisiana Public Facilities Authority, Ochsner Clinic Foundation Obligated Group, Revenue Bonds | | |
5.00%, due 5/15/47 | 4,700,000 | 4,721,299 |
| | 8,194,390 |
Maine 0.0% ‡ |
City of Portland, General Airport, Green Bond, Revenue Bonds | | |
4.00%, due 1/1/40 | 1,150,000 | 1,113,567 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
30 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Maryland 1.1% |
County of Baltimore, Oak Crest Village, Inc. Facility, Revenue Bonds | | |
4.00%, due 1/1/45 | $ 4,000,000 | $ 3,527,056 |
County of Frederick, Oakdale Lake Linganore Project, Tax Allocation | | |
3.75%, due 7/1/39 | 1,410,000 | 1,220,238 |
County of Frederick, Technology Park Project TIF Development District, Tax Allocation | | |
Series B | | |
4.625%, due 7/1/43 (c) | 10,830,000 | 10,178,895 |
County of Frederick, Mount St Mary's University, Inc., Revenue Bonds (c) | | |
Series A | | |
5.00%, due 9/1/37 | 5,190,000 | 5,095,594 |
Series A | | |
5.00%, due 9/1/45 | 4,145,000 | 3,847,032 |
Maryland Economic Development Corp., Port Convington Project, Tax Allocation | | |
4.00%, due 9/1/50 | 6,750,000 | 5,351,055 |
Maryland Economic Development Corp., Purple Line Light Project, Green Bond, Revenue Bonds | | |
Series B | | |
5.25%, due 6/30/47 (a) | 34,650,000 | 35,704,878 |
Maryland Health & Higher Educational Facilities Authority, Stevenson University, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 6/1/46 | 750,000 | 649,660 |
Maryland Health & Higher Educational Facilities Authority, Adventist Healthcare, Revenue Bonds | | |
Series B | | |
4.00%, due 1/1/51 | 20,110,000 | 16,294,431 |
Maryland Health & Higher Educational Facilities Authority, Stevenson University, Inc. Project, Revenue Bonds | | |
Series A | | |
4.00%, due 6/1/55 | 900,000 | 755,963 |
| Principal Amount | Value |
|
Maryland (continued) |
Maryland Health & Higher Educational Facilities Authority, Broadmead Issue, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/38 | $ 1,000,000 | $ 1,028,674 |
Series A | | |
5.00%, due 7/1/48 | 3,000,000 | 3,017,709 |
Maryland Health & Higher Educational Facilities Authority, Meritus Medical Center Issue, Revenue Bonds | | |
5.00%, due 7/1/45 | 4,000,000 | 4,011,195 |
Maryland Health & Higher Educational Facilities Authority, Green Street Academy Inc., Revenue Bonds (c) | | |
Series A | | |
5.125%, due 7/1/37 | 1,260,000 | 1,247,432 |
Series A | | |
5.375%, due 7/1/52 | 1,530,000 | 1,464,682 |
Maryland Health & Higher Educational Facilities Authority, Edenwald Issue, Revenue Bonds | | |
5.25%, due 1/1/37 | 1,000,000 | 1,004,180 |
| | 94,398,674 |
Massachusetts 0.9% |
Massachusetts Development Finance Agency, Wellforce Obligated Group, Revenue Bonds | | |
Series C, Insured: AGM | | |
4.00%, due 10/1/45 | 2,150,000 | 2,044,518 |
Massachusetts Development Finance Agency, Equitable School Revolving Fund LLC, Revenue Bonds | | |
Series C | | |
4.00%, due 11/1/46 | 1,500,000 | 1,401,021 |
Series C | | |
4.00%, due 11/1/51 | 20,000 | 18,044 |
Massachusetts Development Finance Agency, Linden Ponds, Inc., Revenue Bonds (c) | | |
5.00%, due 11/15/33 | 3,000,000 | 3,116,716 |
5.125%, due 11/15/46 | 5,600,000 | 5,728,690 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
31
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Massachusetts (continued) |
Massachusetts Development Finance Agency, Milford Regional Medical Center, Revenue Bonds (c) | | |
Series G | | |
5.00%, due 7/15/35 | $ 270,000 | $ 271,529 |
Series G | | |
5.00%, due 7/15/36 | 235,000 | 235,041 |
Series G | | |
5.00%, due 7/15/46 | 1,100,000 | 1,023,494 |
Massachusetts Development Finance Agency, Provident Commonwealth Education Resources II, Inc., Revenue Bonds | | |
5.00%, due 10/1/38 | 1,215,000 | 1,212,475 |
Massachusetts Development Finance Agency, Dexter Southfield, Revenue Bonds | | |
5.00%, due 5/1/41 | 2,700,000 | 2,714,108 |
Massachusetts Development Finance Agency, Ascentria Care Alliance Project, Revenue Bonds | | |
5.00%, due 7/1/41 (c) | 3,875,000 | 3,387,652 |
Massachusetts Development Finance Agency, UMass Dartmouth Student Housing Project, Revenue Bonds | | |
5.00%, due 10/1/43 | 2,000,000 | 1,951,380 |
5.00%, due 10/1/48 | 7,650,000 | 7,367,784 |
5.00%, due 10/1/54 | 15,400,000 | 14,549,935 |
Massachusetts Development Finance Agency, UMass Memorial Health Care Obligated Group, Revenue Bonds | | |
Series L | | |
5.00%, due 7/1/44 | 8,105,000 | 8,122,660 |
Series I | | |
5.00%, due 7/1/46 | 2,000,000 | 2,005,635 |
Massachusetts Development Finance Agency, Western New England University, Revenue Bonds | | |
5.00%, due 9/1/45 | 1,175,000 | 1,154,155 |
| Principal Amount | Value |
|
Massachusetts (continued) |
Massachusetts Development Finance Agency, UMass Boston Student Housing Project, Revenue Bonds | | |
5.00%, due 10/1/48 | $ 10,040,000 | $ 9,983,511 |
Massachusetts Educational Financing Authority, Educational Loan, Revenue Bonds (a) | | |
Series B | | |
2.00%, due 7/1/37 | 3,140,000 | 2,684,954 |
Series C | | |
3.00%, due 7/1/51 | 7,305,000 | 4,773,376 |
Massachusetts Educational Financing Authority, Revenue Bonds, Senior Lien | | |
Series B | | |
3.00%, due 7/1/35 (a) | 490,000 | 484,514 |
Town of Stoneham, Limited General Obligation | | |
2.25%, due 1/15/40 | 4,030,000 | 2,986,884 |
| | 77,218,076 |
Michigan 2.6% |
Calhoun County Hospital Finance Authority, Oaklawn Hospital, Revenue Bonds | | |
5.00%, due 2/15/41 | 3,260,000 | 3,096,846 |
5.00%, due 2/15/47 | 3,000,000 | 2,725,221 |
Chandler Park Academy, Revenue Bonds | | |
5.125%, due 11/1/30 | 940,000 | 932,744 |
5.125%, due 11/1/35 | 605,000 | 600,124 |
City of Detroit, Unlimited General Obligation | | |
5.00%, due 4/1/27 | 850,000 | 871,531 |
5.00%, due 4/1/31 | 1,000,000 | 1,031,289 |
5.00%, due 4/1/33 | 1,200,000 | 1,236,960 |
5.00%, due 4/1/35 | 1,000,000 | 1,029,660 |
5.00%, due 4/1/37 | 1,100,000 | 1,123,622 |
5.00%, due 4/1/38 | 850,000 | 864,719 |
5.50%, due 4/1/45 | 1,100,000 | 1,145,084 |
5.50%, due 4/1/50 | 6,240,000 | 6,474,862 |
City of Detroit, Water Supply System, Revenue Bonds, Second Lien | | |
Series B, Insured: NATL-RE | | |
5.00%, due 7/1/34 | 10,000 | 10,010 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
32 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Michigan (continued) |
Detroit Service Learning Academy, Revenue Bonds | | |
4.00%, due 7/1/31 | $ 1,745,000 | $ 1,668,674 |
4.00%, due 7/1/41 | 3,600,000 | 3,001,327 |
Great Lakes Water Authority, Water Supply System, Revenue Bonds, Second Lien | | |
Series B | | |
5.00%, due 7/1/46 | 3,000,000 | 3,043,658 |
Kentwood Economic Development Corp., Holland Home Obligated Group, Revenue Bonds | | |
5.00%, due 11/15/41 | 2,085,000 | 1,941,961 |
Michigan Finance Authority, Tobacco Settlement Asset-Backed, Capital Appreciation, Revenue Bonds, Senior Lien | | |
Series B | | |
(zero coupon), due 6/1/45 | 48,300,000 | 11,580,901 |
Michigan Finance Authority, Tobacco Settlement Asset-Backed, Revenue Bonds, Senior Lien | | |
Series B-2, Class 2 | | |
(zero coupon), due 6/1/65 | 287,185,000 | 30,060,831 |
Michigan Finance Authority, Calvin University Obligated Group, Revenue Bonds | | |
4.00%, due 9/1/46 | 4,470,000 | 3,970,484 |
Michigan Finance Authority, Wayne County Criminal Justice Center Project, Revenue Bonds, Senior Lien | | |
4.00%, due 11/1/48 | 6,650,000 | 6,108,314 |
Michigan Finance Authority, Henry Ford Health System, Revenue Bonds | | |
Series A | | |
4.00%, due 11/15/50 | 4,945,000 | 4,380,026 |
Michigan Finance Authority, Great Lakes Water Authority Sewage Disposal System, Revenue Bonds | | |
Series C | | |
5.00%, due 7/1/34 | 1,000,000 | 1,010,148 |
Series C | | |
5.00%, due 7/1/35 | 2,000,000 | 2,020,296 |
| Principal Amount | Value |
|
Michigan (continued) |
Michigan Finance Authority, Local Government Loan Program, Revenue Bonds | | |
Series D-4 | | |
5.00%, due 7/1/34 | $ 1,000,000 | $ 1,001,360 |
Michigan Finance Authority, College for Creative Studies, Revenue Bonds | | |
5.00%, due 12/1/36 | 1,000,000 | 1,000,220 |
5.00%, due 12/1/40 | 1,700,000 | 1,679,330 |
5.00%, due 12/1/45 | 4,400,000 | 4,227,295 |
Michigan Finance Authority, Lawrence Technological University, Revenue Bonds | | |
5.00%, due 2/1/37 | 1,550,000 | 1,526,619 |
5.25%, due 2/1/32 | 3,350,000 | 3,377,907 |
Michigan Finance Authority, Local Government Loan Program, Public Lightning Local Project, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/44 | 4,000,000 | 4,001,885 |
Michigan Finance Authority, Landmark Academy, Revenue Bonds | | |
5.00%, due 6/1/45 | 2,920,000 | 2,621,404 |
Michigan Finance Authority, Presbyterian Villages of Michigan Obligated Group, Revenue Bonds | | |
5.50%, due 11/15/45 | 1,025,000 | 921,253 |
Michigan Finance Authority, Universal Learning Academy, Revenue Bonds | | |
5.75%, due 11/1/40 | 2,630,000 | 2,569,798 |
Michigan Finance Authority, Public School Academy-Voyageur, Revenue Bonds | | |
5.90%, due 7/15/46 (c) | 1,955,000 | 1,474,381 |
Michigan Municipal Bond Authority, Local Government Loan Program, Revenue Bonds | | |
Series A, Insured: AMBAC | | |
4.50%, due 5/1/31 | 305,000 | 296,439 |
Michigan Strategic Fund, Holland Home Obligated Group, Revenue Bonds | | |
5.00%, due 11/15/42 | 1,765,000 | 1,628,478 |
5.00%, due 11/15/43 | 2,220,000 | 2,030,919 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
33
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Michigan (continued) |
Michigan Strategic Fund, State of Michigan Department of Transportation, Revenue Bonds | | |
5.00%, due 6/30/48 (a) | $ 18,680,000 | $ 18,701,446 |
Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed, Capital Appreciation, Revenue Bonds | | |
Series B | | |
(zero coupon), due 6/1/46 | 281,605,000 | 36,361,232 |
Series B | | |
(zero coupon), due 6/1/52 | 23,170,000 | 2,876,004 |
Series C | | |
(zero coupon), due 6/1/58 | 407,380,000 | 13,957,776 |
Richfield Public School Academy, Revenue Bonds | | |
4.00%, due 9/1/30 | 750,000 | 700,878 |
State of Michigan, Trunk Line, Revenue Bonds | | |
5.50%, due 11/15/49 | 31,180,000 | 34,565,144 |
Summit Academy North, Michigan Public School Academy, Revenue Bonds | | |
4.00%, due 11/1/41 | 2,875,000 | 2,434,604 |
| | 227,883,664 |
Minnesota 0.9% |
City of Crookston, Riverview Healthcare Project, Revenue Bonds | | |
5.00%, due 5/1/51 | 4,000,000 | 2,759,478 |
City of Forest Lake, Lakes International Language Academy Project, Revenue Bonds | | |
Series A | | |
5.25%, due 8/1/43 | 300,000 | 297,821 |
Series A | | |
5.375%, due 8/1/50 | 1,250,000 | 1,221,527 |
City of Ham Lake, Parnassus Preparatory School Project, Revenue Bonds | | |
Series A | | |
5.00%, due 11/1/47 | 3,250,000 | 3,028,235 |
City of Independence, Global Academy Project, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/51 | 1,400,000 | 1,074,673 |
| Principal Amount | Value |
|
Minnesota (continued) |
City of Independence, Global Academy Project, Revenue Bonds (continued) | | |
Series A | | |
4.00%, due 7/1/56 | $ 1,080,000 | $ 806,846 |
City of Minneapolis, Twin Cities International School Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/47 (c) | 3,785,000 | 3,574,635 |
City of Rochester, Samaritan Bethany, Inc. Project, Revenue Bonds | | |
Series A | | |
5.00%, due 8/1/48 | 925,000 | 738,620 |
Duluth Economic Development Authority, Essentia Health Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 2/15/53 | 15,350,000 | 15,486,595 |
Series A | | |
5.25%, due 2/15/53 | 22,465,000 | 22,795,213 |
Series A | | |
5.25%, due 2/15/58 | 16,165,000 | 16,394,766 |
Duluth Economic Development Authority, St. Luke's Hospital of Duluth, Revenue Bonds | | |
Series B | | |
5.25%, due 6/15/42 | 4,000,000 | 4,168,262 |
Series B | | |
5.25%, due 6/15/47 | 3,000,000 | 3,088,949 |
Series B | | |
5.25%, due 6/15/52 | 4,750,000 | 4,862,388 |
| | 80,298,008 |
Mississippi 0.1% |
Mississippi Business Finance Corp., System Energy Resources, Inc. Project, Revenue Bonds | | |
2.375%, due 6/1/44 | 6,700,000 | 4,037,104 |
Missouri 0.6% |
Branson Industrial Development Authority, Tax Increment, Branson Landing-Retail Project, Tax Allocation | | |
5.50%, due 6/1/29 | 2,690,000 | 2,553,623 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
34 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Missouri (continued) |
Cape Girardeau County Industrial Development Authority, Southeast Health, Revenue Bonds | | |
4.00%, due 3/1/41 | $ 530,000 | $ 505,036 |
4.00%, due 3/1/46 | 1,695,000 | 1,568,674 |
City of Lees Summit, Department of Airports, Summit Fair Project, Tax Allocation | | |
4.875%, due 11/1/37 (c) | 3,045,000 | 2,757,561 |
Health & Educational Facilities Authority of the State of Missouri, Maryville University of St. Louis, Revenue Bonds | | |
Series A | | |
4.00%, due 6/15/41 | 3,300,000 | 2,966,047 |
Series A | | |
5.00%, due 6/15/45 | 3,270,000 | 3,274,181 |
Health & Educational Facilities Authority of the State of Missouri, Lutheran Senior Services Project, Revenue Bonds | | |
4.00%, due 2/1/42 | 3,750,000 | 3,267,864 |
Health & Educational Facilities Authority of the State of Missouri, AT Still University of Health Sciences, Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/43 | 1,125,000 | 1,078,122 |
Health & Educational Facilities Authority of the State of Missouri, Lake Regional Health System, Revenue Bonds | | |
4.00%, due 2/15/51 | 2,125,000 | 1,715,785 |
Health & Educational Facilities Authority of the State of Missouri, Mercy Health, Revenue Bonds | | |
4.00%, due 6/1/53 | 6,915,000 | 6,363,236 |
5.00%, due 12/1/52 | 4,400,000 | 4,609,960 |
Health & Educational Facilities Authority of the State of Missouri, Capital Region Medical Center, Revenue Bonds | | |
5.00%, due 11/1/40 | 1,850,000 | 2,023,875 |
Kansas City Industrial Development Authority, Airport, Revenue Bonds | | |
Series A, Insured: AGM | | |
4.00%, due 3/1/57 (a) | 2,400,000 | 2,145,071 |
| Principal Amount | Value |
|
Missouri (continued) |
Kansas City Land Clearance Redevelopment Authority, Convention Center Hotel Project, Tax Allocation | | |
Series B | | |
5.00%, due 2/1/40 (c) | $ 4,700,000 | $ 4,441,491 |
Lees Summit Industrial Development Authority, Fair Community Improvement District, Special Assessment | | |
5.00%, due 5/1/35 | 720,000 | 655,475 |
6.00%, due 5/1/42 | 2,800,000 | 2,520,674 |
Maryland Heights Industrial Development Authority, St. Louis Community Ice Center Project, Revenue Bonds | | |
Series A | | |
5.00%, due 3/15/49 | 7,500,000 | 5,936,334 |
Springfield School District No. R-12, Unlimited General Obligation | | |
2.25%, due 3/1/40 | 2,000,000 | 1,411,907 |
St. Louis County Industrial Development Authority, Nazareth Living Center Project, Revenue Bonds | | |
Series A | | |
5.125%, due 8/15/45 | 1,900,000 | 1,625,002 |
St. Louis Land Clearance for Redevelopment Authority, Scottrade Center Project, Revenue Bonds | | |
Series A | | |
5.00%, due 4/1/48 | 2,000,000 | 2,020,010 |
| | 53,439,928 |
Montana 0.2% |
City of Forsyth, NorthWestern Corp., Revenue Bonds | | |
3.875%, due 7/1/28 | 9,750,000 | 9,805,934 |
County of Gallatin, Bozeman Fiber Project, Revenue Bonds (c) | | |
Series A | | |
4.00%, due 10/15/41 | 500,000 | 396,483 |
Series A | | |
4.00%, due 10/15/46 | 2,500,000 | 1,850,749 |
Series A | | |
4.00%, due 10/15/51 | 3,750,000 | 2,644,392 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
35
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Montana (continued) |
Montana Facility Finance Authority, Kalispell Regional Medical Center, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/48 | $ 5,465,000 | $ 5,445,018 |
| | 20,142,576 |
Nebraska 0.0% ‡ |
County of Douglas, Creighton University, Revenue Bonds | | |
Series A | | |
3.00%, due 7/1/51 | 2,500,000 | 1,749,636 |
Nevada 0.3% |
City of Reno, Sales Tax, Transportation Rail Access Corridor Project, Revenue Bonds | | |
Series C | | |
(zero coupon), due 7/1/58 (c) | 14,000,000 | 1,780,008 |
City of Reno, Sales Tax, Transportation Rail Access Corridor Project, Revenue Bonds, First Lien | | |
Series A | | |
4.00%, due 6/1/43 | 2,500,000 | 2,343,000 |
City of Reno, Sales Tax, Revenue Bonds | | |
Series D | | |
(zero coupon), due 7/1/58 (c) | 9,000,000 | 938,798 |
Las Vegas Redevelopment Agency, Tax Allocation | | |
5.00%, due 6/15/45 | 2,750,000 | 2,762,058 |
State of Nevada Department of Business & Industry, Somerset Academy of Las Vegas, Revenue Bonds | | |
Series A | | |
5.00%, due 12/15/48 (c) | 4,215,000 | 3,905,509 |
Tahoe-Douglas Visitors Authority, Revenue Bonds | | |
5.00%, due 7/1/30 | 2,755,000 | 2,898,170 |
5.00%, due 7/1/34 | 2,000,000 | 2,093,829 |
5.00%, due 7/1/45 | 5,050,000 | 5,068,970 |
| | 21,790,342 |
| Principal Amount | Value |
|
New Hampshire 1.0% |
Manchester Housing and Redevelopment Authority, Inc., Revenue Bonds | | |
Series B, Insured: BAM | | |
(zero coupon), due 1/1/26 | $ 1,995,000 | $ 1,832,590 |
Series B, Insured: BAM | | |
(zero coupon), due 1/1/27 | 2,380,000 | 2,072,089 |
New Hampshire Business Finance Authority, Springpoint Senior Living Project, Revenue Bonds | | |
4.00%, due 1/1/51 | 7,850,000 | 5,849,377 |
New Hampshire Business Finance Authority, Ascentria Care Alliance Project, Revenue Bonds (c) | | |
5.00%, due 7/1/51 | 2,000,000 | 1,589,616 |
5.00%, due 7/1/56 | 910,000 | 706,745 |
New Hampshire Business Finance Authority, The Vista Project, Revenue Bonds | | |
Series A | | |
5.75%, due 7/1/54 (c) | 1,500,000 | 1,355,551 |
New Hampshire Business Finance Authority, Wheeling Power Co., Revenue Bonds | | |
Series A | | |
6.89%, due 4/1/34 (c) | 70,000,000 | 70,031,682 |
New Hampshire Health and Education Facilities Authority Act, Kendal at Hanover, Revenue Bonds | | |
5.00%, due 10/1/46 | 1,800,000 | 1,787,926 |
| | 85,225,576 |
New Jersey 3.4% |
Camden County Improvement Authority (The), Camden School Prep Project, Revenue Bonds | | |
5.00%, due 7/15/52 (c) | 2,000,000 | 1,886,722 |
Essex County Improvement Authority, North Star Academy Charter School of Newark, Inc., Revenue Bonds | | |
4.00%, due 7/15/50 (c) | 2,450,000 | 2,068,471 |
4.00%, due 6/15/51 | 1,100,000 | 925,733 |
4.00%, due 7/15/60 (c) | 8,155,000 | 6,608,321 |
Series A | | |
4.00%, due 8/1/60 (c) | 3,755,000 | 3,042,515 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
36 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New Jersey (continued) |
New Jersey Economic Development Authority, School Facilities Construction, Revenue Bonds | | |
Series LLL | | |
5.00%, due 6/15/36 | $ 5,200,000 | $ 5,600,899 |
Series LLL | | |
5.00%, due 6/15/44 | 1,000,000 | 1,038,555 |
Series LLL | | |
5.00%, due 6/15/49 | 6,790,000 | 6,985,117 |
New Jersey Economic Development Authority, New Jersey Transit Transportation Project, Revenue Bonds | | |
Series A | | |
5.00%, due 11/1/36 | 3,500,000 | 3,751,451 |
New Jersey Economic Development Authority, Provident Group-Kean Properties LLC, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/37 | 2,650,000 | 2,637,188 |
Series A | | |
5.00%, due 7/1/47 | 3,095,000 | 2,920,532 |
New Jersey Economic Development Authority, State Government Buildings Project, Revenue Bonds | | |
Series C | | |
5.00%, due 6/15/42 | 8,860,000 | 9,061,930 |
New Jersey Economic Development Authority, Port Newark Container Terminal LLC, Revenue Bonds | | |
5.00%, due 10/1/47 (a) | 15,905,000 | 16,003,355 |
New Jersey Economic Development Authority, Provident Group-Rowan Properties LLC, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/48 | 11,985,000 | 11,166,318 |
New Jersey Economic Development Authority, The Goethals Bridge Replacement Project, Revenue Bonds (a) | | |
5.125%, due 1/1/34 | 3,000,000 | 3,001,247 |
Insured: AGM | | |
5.125%, due 7/1/42 | 1,705,000 | 1,704,989 |
5.375%, due 1/1/43 | 12,105,000 | 12,109,236 |
| Principal Amount | Value |
|
New Jersey (continued) |
New Jersey Economic Development Authority, Continental Airlines, Inc. Project, Revenue Bonds | | |
Series B | | |
5.625%, due 11/15/30 (a) | $ 10,335,000 | $ 10,426,723 |
New Jersey Economic Development Authority, NYNJ Link Borrower LLC, Revenue Bonds | | |
5.625%, due 1/1/52 (a) | 16,695,000 | 16,705,496 |
New Jersey Economic Development Authority, Team Academy Charter School Project, Revenue Bonds | | |
6.00%, due 10/1/43 | 2,055,000 | 2,056,336 |
New Jersey Educational Facilities Authority, St Elizabeth University, Revenue Bonds | | |
Series D | | |
5.00%, due 7/1/46 | 1,750,000 | 1,564,432 |
New Jersey Transportation Trust Fund Authority, Transportation Program, Revenue Bonds | | |
Series AA | | |
4.00%, due 6/15/38 | 10,350,000 | 10,355,341 |
Series AA | | |
4.00%, due 6/15/40 | 11,250,000 | 11,092,779 |
Series A | | |
4.00%, due 6/15/41 | 3,000,000 | 2,934,698 |
Series BB | | |
4.00%, due 6/15/41 | 3,750,000 | 3,668,372 |
Series BB | | |
4.00%, due 6/15/44 | 14,890,000 | 14,212,371 |
Series AA | | |
4.00%, due 6/15/45 | 40,170,000 | 38,130,533 |
Series BB | | |
4.00%, due 6/15/46 | 6,140,000 | 5,797,380 |
Series AA | | |
4.00%, due 6/15/50 | 7,110,000 | 6,597,383 |
Series BB | | |
4.00%, due 6/15/50 | 20,805,000 | 19,305,001 |
Series AA | | |
4.25%, due 6/15/44 | 2,055,000 | 2,008,355 |
Series AA | | |
5.00%, due 6/15/50 | 6,910,000 | 7,081,557 |
South Jersey Port Corp., Marine Terminal, Revenue Bonds | | |
Series B | | |
5.00%, due 1/1/48 (a) | 24,010,000 | 24,317,710 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
37
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New Jersey (continued) |
South Jersey Transportation Authority, Revenue Bonds | | |
Series A, Insured: AGM-CR | | |
4.00%, due 11/1/50 | $ 10,900,000 | $ 10,252,123 |
Series A | | |
5.00%, due 11/1/39 | 500,000 | 500,804 |
Series A, Insured: BAM | | |
5.00%, due 11/1/45 | 10,150,000 | 10,614,986 |
Tobacco Settlement Financing Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/46 | 5,125,000 | 5,240,452 |
| | 293,375,411 |
New York 8.6% |
Brooklyn Arena Local Development Corp., Barclays Center Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
3.00%, due 7/15/43 | 2,135,000 | 1,608,972 |
Build NYC Resource Corp., Pratt Paper, Inc. Project, Revenue Bonds | | |
5.00%, due 1/1/35 (a)(c) | 1,500,000 | 1,506,908 |
Build NYC Resource Corp., Metropolitan Lighthouse Charter School Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/47 (c) | 1,225,000 | 1,182,171 |
Build NYC Resource Corp., Hellenic Classical Charter Schools, Revenue Bonds (c) | | |
Series A | | |
5.00%, due 12/1/51 | 1,000,000 | 864,719 |
Series A | | |
5.00%, due 12/1/55 | 1,080,000 | 918,373 |
Dutchess County Local Development Corp., Bard College Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/45 | 6,600,000 | 6,642,223 |
Erie Tobacco Asset Securitization Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds | | |
Series B | | |
(zero coupon), due 6/1/47 | 37,500,000 | 7,705,657 |
| Principal Amount | Value |
|
New York (continued) |
Genesee County Funding Corp. (The), Rochester Regional Health Obligated Group, Revenue Bonds | | |
Series A | | |
5.25%, due 12/1/52 | $ 6,750,000 | $ 6,888,700 |
Huntington Local Development Corp., Fountaingate Gardens Project, Revenue Bonds | | |
Series B | | |
4.00%, due 7/1/27 | 2,720,000 | 2,625,745 |
Jefferson County Civic Facility Development Corp., Samaritan Medical Center Project, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/42 | 2,425,000 | 1,829,041 |
Series A | | |
4.00%, due 11/1/47 | 1,530,000 | 1,071,897 |
Metropolitan Transportation Authority, Green Bond, Revenue Bonds | | |
Series A-1 | | |
4.00%, due 11/15/45 | 31,350,000 | 28,841,059 |
Series E | | |
4.00%, due 11/15/45 | 23,375,000 | 21,755,075 |
Series A-1 | | |
4.00%, due 11/15/46 | 21,195,000 | 19,317,261 |
Series A-1 | | |
4.00%, due 11/15/46 | 11,050,000 | 10,071,042 |
Series A-3, Insured: AGM | | |
4.00%, due 11/15/46 | 2,930,000 | 2,744,396 |
Series A-1 | | |
4.00%, due 11/15/48 | 6,440,000 | 5,799,084 |
Series A-1 | | |
4.00%, due 11/15/49 | 35,565,000 | 31,849,670 |
Series A-1, Insured: AGM | | |
4.00%, due 11/15/50 | 8,550,000 | 7,802,913 |
Series A-1 | | |
4.00%, due 11/15/50 | 800,000 | 723,055 |
Series D | | |
4.00%, due 11/15/50 | 7,730,000 | 6,986,515 |
Series A-1 | | |
4.00%, due 11/15/51 | 10,290,000 | 9,274,978 |
Series A-1 | | |
4.00%, due 11/15/52 | 3,340,000 | 3,003,922 |
Series A-2 | | |
5.00%, due 11/15/27 | 3,150,000 | 3,268,507 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
38 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New York (continued) |
Metropolitan Transportation Authority, Green Bond, Revenue Bonds (continued) | | |
Series B | | |
5.00%, due 11/15/28 | $ 1,190,000 | $ 1,281,033 |
Metropolitan Transportation Authority, Climate Certified Green Bond, Revenue Bonds | | |
Series C, Insured: AGM | | |
4.00%, due 11/15/47 | 2,000,000 | 1,850,422 |
Metropolitan Transportation Authority, Revenue Bonds | | |
Series D | | |
5.00%, due 11/15/27 | 2,055,000 | 2,132,312 |
Monroe County Industrial Development Corp., Rochester Regional Health Obligated Group, Revenue Bonds | | |
4.00%, due 12/1/41 | 2,955,000 | 2,709,827 |
Monroe County Industrial Development Corp., St. Ann's Community Project, Revenue Bonds | | |
5.00%, due 1/1/50 | 1,000,000 | 775,797 |
Nassau County Tobacco Settlement Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds | | |
Series A-3 | | |
5.00%, due 6/1/35 | 2,075,000 | 1,922,689 |
Series A-3 | | |
5.125%, due 6/1/46 | 12,605,000 | 11,505,879 |
New York City Industrial Development Agency, Queens Baseball Stadium Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
3.00%, due 1/1/46 | 12,365,000 | 9,527,157 |
New York City Industrial Development Agency, Yankee Stadium Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
3.00%, due 3/1/49 | 1,750,000 | 1,332,242 |
Series A, Insured: AGM-CR | | |
3.00%, due 3/1/49 | 17,600,000 | 13,398,551 |
| Principal Amount | Value |
|
New York (continued) |
New York City Transitional Finance Authority, Future Tax Secured, Revenue Bonds | | |
Series E-1 | | |
4.00%, due 2/1/49 | $ 49,060,000 | $ 46,870,771 |
New York Convention Center Development Corp., Hotel Unit Fee, Revenue Bonds, Senior Lien | | |
Series A | | |
(zero coupon), due 11/15/47 | 10,000,000 | 3,096,229 |
New York Counties Tobacco Trust V, Pass Through, Capital Appreciation, Revenue Bonds | | |
Series S-1 | | |
(zero coupon), due 6/1/38 | 2,500,000 | 1,071,274 |
New York Liberty Development Corp., 1 World Trade Center, Revenue Bonds | | |
Insured: BAM | | |
2.75%, due 2/15/44 | 14,600,000 | 10,724,586 |
New York Liberty Development Corp., Green Bond, Revenue Bonds | | |
Series A, Insured: BAM | | |
3.00%, due 11/15/51 | 3,750,000 | 2,764,118 |
New York Liberty Development Corp., 7 World Trade Center Project, Revenue Bonds | | |
Series A | | |
3.125%, due 9/15/50 | 21,530,000 | 16,227,531 |
New York Liberty Development Corp., 3 World Trade Center LLC, Revenue Bonds | | |
Class 1 | | |
5.00%, due 11/15/44 (c) | 72,180,000 | 71,538,334 |
New York State Dormitory Authority, Montefiore Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 8/1/37 | 3,250,000 | 3,090,309 |
Series A | | |
4.00%, due 8/1/38 | 1,750,000 | 1,641,028 |
Series A | | |
4.00%, due 9/1/50 | 6,700,000 | 5,723,509 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
39
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New York (continued) |
New York State Dormitory Authority, NYU Langone Hospitals Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/50 | $ 4,240,000 | $ 4,018,866 |
Series A | | |
4.00%, due 7/1/53 | 4,310,000 | 4,030,893 |
New York State Dormitory Authority, Orange Regional Medical Center Obligated Group, Revenue Bonds | | |
5.00%, due 12/1/30 (c) | 2,200,000 | 2,116,781 |
New York State Thruway Authority, State Personal Income Tax, Revenue Bonds | | |
Series A-1 | | |
3.00%, due 3/15/48 | 8,500,000 | 6,417,898 |
Series A-1 | | |
3.00%, due 3/15/51 | 33,195,000 | 24,291,789 |
Series A-1 | | |
4.00%, due 3/15/53 | 14,875,000 | 13,699,421 |
New York State Thruway Authority, General Revenue Junior Indebtedness Obligation, Revenue Bonds | | |
Series B | | |
4.00%, due 1/1/50 | 10,135,000 | 9,317,108 |
New York State Urban Development Corp., Sales Tax, Revenue Bonds | | |
Series A | | |
3.00%, due 3/15/50 | 9,700,000 | 7,112,386 |
New York State Urban Development Corp., Personal Income Tax, Revenue Bonds | | |
Series E | | |
4.00%, due 3/15/43 | 6,150,000 | 6,034,123 |
New York Transportation Development Corp., Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project, Revenue Bonds (a) | | |
4.00%, due 10/1/30 | 9,160,000 | 9,139,879 |
4.375%, due 10/1/45 | 75,465,000 | 72,965,260 |
5.00%, due 10/1/35 | 6,110,000 | 6,458,109 |
| Principal Amount | Value |
|
New York (continued) |
New York Transportation Development Corp., New York State Thruway Service Areas Project, Revenue Bonds | | |
4.00%, due 4/30/53 (a) | $ 4,870,000 | $ 3,929,939 |
New York Transportation Development Corp., Terminal 4 JFK International Airport Project, Revenue Bonds (a) | | |
5.00%, due 12/1/34 | 9,750,000 | 10,576,825 |
5.00%, due 12/1/36 | 5,000,000 | 5,353,020 |
5.00%, due 12/1/38 | 9,750,000 | 10,280,847 |
5.00%, due 12/1/39 | 13,805,000 | 14,523,916 |
5.00%, due 12/1/40 | 4,785,000 | 5,002,365 |
New York Transportation Development Corp., Terminal 4 John F. Kennedy International Airport Project, Revenue Bonds (a) | | |
Insured: AGM-CR | | |
5.00%, due 12/1/40 | 17,260,000 | 18,516,597 |
5.00%, due 12/1/42 | 3,375,000 | 3,500,728 |
5.375%, due 6/30/60 | 10,000,000 | 10,447,512 |
New York Transportation Development Corp., LaGuardia Airport Terminal B Redevelopment Project, Revenue Bonds (a) | | |
Series A | | |
5.00%, due 7/1/41 | 17,960,000 | 17,677,640 |
Series A | | |
5.00%, due 7/1/46 | 12,125,000 | 11,825,953 |
New York Transportation Development Corp., JFK NTO LLC, Revenue Bonds | | |
Insured: AGM | | |
5.125%, due 6/30/60 (a) | 12,000,000 | 12,407,707 |
New York Transportation Development Corp., American Airlines, Inc. John F. Kennedy International Airport Project, Revenue Bonds (a) | | |
5.25%, due 8/1/31 | 3,750,000 | 3,936,818 |
5.375%, due 8/1/36 | 3,445,000 | 3,627,188 |
Oneida County Local Development Corp., Mohawk Valley Health System Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
3.00%, due 12/1/40 | 3,755,000 | 2,973,643 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
40 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New York (continued) |
Oneida County Local Development Corp., Mohawk Valley Health System Project, Revenue Bonds (continued) | | |
Series A, Insured: AGM | | |
3.00%, due 12/1/44 | $ 6,450,000 | $ 4,788,270 |
Orange County Funding Corp., Mount St. Mary College, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/42 | 1,430,000 | 1,306,675 |
Port Authority of New York & New Jersey, Revenue Bonds (a) | | |
Series 223 | | |
4.00%, due 7/15/46 | 9,520,000 | 8,831,418 |
Series 236 | | |
5.00%, due 1/15/52 | 4,285,000 | 4,411,914 |
Port Authority of New York & New Jersey, Consolidated 218th, Revenue Bonds | | |
Series 218 | | |
4.00%, due 11/1/47 (a) | 2,455,000 | 2,263,781 |
Riverhead Industrial Development Agency, Riverhead Charter School, Revenue Bonds | | |
Series A | | |
7.00%, due 8/1/43 | 1,500,000 | 1,502,861 |
Rockland Tobacco Asset Securitization Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds | | |
Series B | | |
(zero coupon), due 8/15/50 (c) | 13,000,000 | 2,343,588 |
Southold Local Development Corp., Peconic Landing, Inc. Project, Revenue Bonds | | |
4.00%, due 12/1/45 | 815,000 | 677,875 |
Suffolk Tobacco Asset Securitization Corp., Tobacco Settlement, Asset Backed, Revenue Bonds | | |
Series B-2 | | |
(zero coupon), due 6/1/66 | 71,340,000 | 6,868,052 |
Tompkins County Development Corp., Kendal at Ithaca Project, Revenue Bonds | | |
Series 2014A | | |
5.00%, due 7/1/44 | 915,000 | 897,845 |
| Principal Amount | Value |
|
New York (continued) |
TSASC, Inc., Tobacco Settlement Bonds, Revenue Bonds | | |
Series B | | |
5.00%, due 6/1/48 | $ 19,500,000 | $ 17,349,468 |
Westchester County Local Development Corp., Pace University, Revenue Bonds | | |
Series A | | |
5.50%, due 5/1/42 | 5,205,000 | 5,205,103 |
| | 750,095,542 |
North Carolina 0.7% |
North Carolina Medical Care Commission, The Forest at Duke Project, Revenue Bonds | | |
4.00%, due 9/1/41 | 2,300,000 | 1,951,940 |
4.00%, due 9/1/51 | 1,200,000 | 937,044 |
North Carolina Medical Care Commission, Plantation Village, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 1/1/52 | 3,040,000 | 2,328,135 |
North Carolina Medical Care Commission, United Methodist Retirement Homes, Inc. Obligated Group (The), Revenue Bonds | | |
Series B-1 | | |
4.25%, due 10/1/28 | 275,000 | 275,703 |
Series A | | |
5.00%, due 10/1/39 | 500,000 | 524,914 |
Series A | | |
5.00%, due 10/1/44 | 505,000 | 520,427 |
Series A | | |
5.00%, due 10/1/49 | 515,000 | 523,912 |
Series A | | |
5.125%, due 10/1/54 | 1,250,000 | 1,272,697 |
North Carolina Medical Care Commission, Pines at Davidson Project (The), Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/49 | 3,350,000 | 3,349,772 |
North Carolina Turnpike Authority, Triangle Expressway System, Revenue Bonds, Senior Lien | | |
Insured: AGM | | |
3.00%, due 1/1/42 | 2,320,000 | 1,843,423 |
Insured: AGM | | |
5.00%, due 1/1/49 | 4,750,000 | 4,897,957 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
41
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
North Carolina (continued) |
North Carolina Turnpike Authority, Triangle Expressway System, Revenue Bonds, Senior Lien (continued) | | |
Insured: AGM-CR | | |
5.00%, due 1/1/49 | $ 23,700,000 | $ 24,438,229 |
North Carolina Turnpike Authority, Monroe Expressway Toll, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/51 | 2,745,000 | 2,756,959 |
Series A | | |
5.00%, due 7/1/54 | 6,755,000 | 6,776,171 |
North Carolina Turnpike Authority, Revenue Bonds, Senior Lien | | |
Series A, Insured: AGM | | |
5.00%, due 1/1/58 | 8,935,000 | 9,437,520 |
| | 61,834,803 |
North Dakota 0.5% |
City of Grand Forks, Altru Health System, Revenue Bonds | | |
Insured: AGM-CR | | |
4.00%, due 12/1/46 | 3,955,000 | 3,453,299 |
Series A, Insured: AGM | | |
5.00%, due 12/1/48 | 2,950,000 | 3,035,771 |
Series A, Insured: AGM | | |
5.00%, due 12/1/53 | 2,800,000 | 2,854,903 |
County of Cass, Essentia Health Obligated Group, Revenue Bonds | | |
Series B | | |
5.25%, due 2/15/53 | 9,100,000 | 9,233,761 |
County of Ward, Trinity Health, Revenue Bonds | | |
Series C | | |
5.00%, due 6/1/48 | 26,890,000 | 23,423,303 |
Series C | | |
5.00%, due 6/1/53 | 725,000 | 609,052 |
| | 42,610,089 |
Ohio 4.4% |
Akron Bath Copley Joint Township Hospital District, Summa Health System Obligated Group, Revenue Bonds | | |
5.25%, due 11/15/46 | 29,875,000 | 30,157,749 |
| Principal Amount | Value |
|
Ohio (continued) |
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Senior Lien | | |
Series A-2, Class 1 | | |
4.00%, due 6/1/48 | $ 5,185,000 | $ 4,623,653 |
Series B-2 | | |
5.00%, due 6/1/55 | 202,525,000 | 183,613,540 |
Cleveland-Cuyahoga County Port Authority, Euclid Avenue Development Corp. Project, Revenue Bonds | | |
4.00%, due 8/1/44 | 12,270,000 | 11,232,895 |
Series A | | |
5.50%, due 8/1/52 | 1,000,000 | 1,035,248 |
Cleveland-Cuyahoga County Port Authority, Centers for Dialysis Care Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/42 | 4,905,000 | 4,827,877 |
Series A | | |
5.00%, due 12/1/47 | 1,435,000 | 1,367,381 |
Cleveland-Cuyahoga County Port Authority, Starwood Wasserman University Heights Holding LLC, Revenue Bonds (d)(e)(g) | | |
Series A | | |
7.00%, due 12/1/18 | 710,000 | 184,600 |
Series A | | |
7.35%, due 12/1/31 | 6,000,000 | 1,560,000 |
County of Cuyahoga, MetroHealth System (The), Revenue Bonds | | |
4.75%, due 2/15/47 | 1,440,000 | 1,381,087 |
5.00%, due 2/15/37 | 5,050,000 | 5,111,336 |
5.00%, due 2/15/52 | 7,785,000 | 7,598,783 |
5.25%, due 2/15/47 | 3,715,000 | 3,723,859 |
5.50%, due 2/15/57 | 32,555,000 | 32,926,547 |
County of Cuyahoga, MetroHealth System, Revenue Bonds | | |
5.50%, due 2/15/52 | 4,660,000 | 4,718,004 |
County of Hamilton, Life Enriching Communities Project, Revenue Bonds | | |
5.00%, due 1/1/42 | 1,080,000 | 1,032,318 |
5.00%, due 1/1/46 | 2,090,000 | 1,950,978 |
County of Montgomery, Kettering Health Network Obligated Group, Revenue Bonds | | |
4.00%, due 8/1/51 | 3,265,000 | 2,866,674 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
42 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Ohio (continued) |
Franklin County Convention Facilities Authority, Greater Columbus Convention Center Hotel Expansion Project, Revenue Bonds | | |
5.00%, due 12/1/51 | $ 4,250,000 | $ 3,982,858 |
Ohio Air Quality Development Authority, Pratt Paper LLC Project, Revenue Bonds | | |
4.50%, due 1/15/48 (a)(c) | 2,450,000 | 2,363,277 |
Ohio Higher Educational Facility Commission, Tiffin University Project, Revenue Bonds | | |
4.00%, due 11/1/49 | 4,700,000 | 3,336,080 |
5.00%, due 11/1/44 | 750,000 | 662,815 |
Ohio Higher Educational Facility Commission, University of Findlay (The), Revenue Bonds | | |
5.00%, due 3/1/39 | 1,675,000 | 1,527,487 |
5.00%, due 3/1/44 | 9,260,000 | 8,094,199 |
Ohio Higher Educational Facility Commission, Cleveland Institute of Art (The), Revenue Bonds | | |
5.25%, due 12/1/48 | 1,000,000 | 906,556 |
5.50%, due 12/1/53 | 1,215,000 | 1,120,295 |
State of Ohio, University Hospitals Health System, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 1/15/46 | 8,000,000 | 7,484,689 |
Series A, Insured: BAM | | |
4.00%, due 1/15/50 | 33,060,000 | 30,972,621 |
Toledo-Lucas County Port Authority, University of Toledo Parking Project, Revenue Bonds | | |
4.00%, due 1/1/57 | 6,150,000 | 5,012,297 |
Toledo-Lucas County Port Authority, University of Toledo Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/34 | 1,400,000 | 1,346,041 |
Series A | | |
5.00%, due 7/1/39 | 2,000,000 | 1,876,689 |
Series A | | |
5.00%, due 7/1/46 | 9,440,000 | 8,516,920 |
| | 377,115,353 |
| Principal Amount | Value |
|
Oklahoma 0.1% |
Norman Regional Hospital Authority, Norman Regional Hospital Authority Obligated Group, Revenue Bonds | | |
4.00%, due 9/1/45 | $ 2,500,000 | $ 2,006,179 |
5.00%, due 9/1/37 | 3,500,000 | 3,434,626 |
Tulsa Authority for Economic Opportunity, Sante FE Square Project, Tax Allocation | | |
4.375%, due 12/1/41 (c) | 1,500,000 | 1,329,047 |
Tulsa County Industrial Authority, Montereau, Inc., Project, Revenue Bonds | | |
5.25%, due 11/15/45 | 1,250,000 | 1,226,270 |
| | 7,996,122 |
Oregon 0.1% |
Astoria Hospital Facilities Authority, Columbia Memorial Hospital Obligated Group, Revenue Bonds | | |
3.50%, due 8/1/42 | 845,000 | 699,143 |
County of Yamhill, George Fox University Project, Revenue Bonds | | |
4.00%, due 12/1/51 | 3,150,000 | 2,753,242 |
Oregon State Facilities Authority, Samaritan Health, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/46 | 2,280,000 | 2,256,257 |
Oregon State Facilities Authority, College Housing Northwest Project, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/48 (c) | 1,560,000 | 1,424,580 |
| | 7,133,222 |
Pennsylvania 3.8% |
Allegheny County Airport Authority, Revenue Bonds (a) | | |
Series A, Insured: AGM | | |
4.00%, due 1/1/46 | 7,970,000 | 7,593,705 |
Series A | | |
4.00%, due 1/1/56 | 7,500,000 | 6,613,978 |
Allegheny County Hospital Development Authority, Allegheny Health Network, Revenue Bonds | | |
Series A, Insured: AGM-CR | | |
4.00%, due 4/1/44 | 15,900,000 | 15,124,061 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
43
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Pennsylvania (continued) |
Allegheny County Industrial Development Authority, Urban Academy of Greater Pittsburgh Charter School, Revenue Bonds | | |
Series A | | |
4.00%, due 6/15/41 (c) | $ 1,895,000 | $ 1,556,518 |
Allegheny County Industrial Development Authority, Propel Charter School - Sunrise, Revenue Bonds | | |
6.00%, due 7/15/38 | 2,850,000 | 2,852,748 |
Allentown Neighborhood Improvement Zone Development Authority, City Center Project, Revenue Bonds (c) | | |
5.00%, due 5/1/42 | 4,000,000 | 3,970,882 |
5.00%, due 5/1/42 | 14,750,000 | 14,591,131 |
5.00%, due 5/1/42 | 6,465,000 | 6,380,378 |
5.125%, due 5/1/32 | 4,250,000 | 4,262,863 |
5.25%, due 5/1/42 | 1,110,000 | 1,077,055 |
5.375%, due 5/1/42 | 4,225,000 | 4,112,417 |
Allentown Neighborhood Improvement Zone Development Authority, Revenue Bonds | | |
5.00%, due 5/1/42 | 3,500,000 | 3,568,869 |
6.00%, due 5/1/42 (c) | 4,350,000 | 4,499,879 |
Bucks County Industrial Development Authority, Grand View Hospital Project, Revenue Bonds | | |
4.00%, due 7/1/46 | 2,910,000 | 2,207,908 |
4.00%, due 7/1/51 | 7,200,000 | 5,211,055 |
5.00%, due 7/1/40 | 655,000 | 549,490 |
5.00%, due 7/1/41 | 2,500,000 | 2,061,610 |
Cambria County General Financing Authority, St. Francis University, Revenue Bonds | | |
Series TT5 | | |
4.00%, due 4/1/46 | 2,035,000 | 1,584,201 |
Chambersburg Area Municipal Authority, Wilson College, Revenue Bonds | | |
5.50%, due 10/1/33 | 1,230,000 | 1,229,920 |
5.75%, due 10/1/38 | 3,200,000 | 3,172,007 |
5.75%, due 10/1/43 | 2,290,000 | 2,214,543 |
| Principal Amount | Value |
|
Pennsylvania (continued) |
Chester County Industrial Development Authority, Avon Grove Charter School, Revenue Bonds | | |
5.00%, due 3/1/27 | $ 2,375,000 | $ 2,398,641 |
Chester County Industrial Development Authority, Renaissance Academy Charter School, Revenue Bonds | | |
5.00%, due 10/1/39 | 1,575,000 | 1,461,569 |
Chester County Industrial Development Authority, Woodlands at Greystone Project, Special Assessment | | |
5.125%, due 3/1/48 (c) | 680,000 | 624,807 |
City of Erie Higher Education Building Authority, Mercyhurst University Project, Revenue Bonds (c) | | |
5.00%, due 9/15/27 | 705,000 | 699,745 |
5.00%, due 9/15/28 | 740,000 | 732,752 |
5.00%, due 9/15/29 | 150,000 | 147,980 |
5.00%, due 9/15/37 | 640,000 | 659,750 |
5.00%, due 9/15/37 | 2,755,000 | 2,590,813 |
Commonwealth Financing Authority, Tobacco Master Settlement Payment, Revenue Bonds | | |
Insured: AGM | | |
4.00%, due 6/1/39 | 150,000 | 148,183 |
County of Lehigh, Lehigh Valley Health Network, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/49 | 1,660,000 | 1,515,351 |
Cumberland County Municipal Authority, Diakon Lutheran Social Ministries, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/39 | 195,000 | 210,143 |
Series A | | |
5.00%, due 1/1/39 | 290,000 | 292,862 |
Dauphin County General Authority, Harrisburg University Science Technology Project (The), Revenue Bonds (c) | | |
5.00%, due 10/15/34 | 5,535,000 | 4,712,755 |
5.125%, due 10/15/41 | 4,650,000 | 3,577,187 |
5.875%, due 10/15/40 | 3,700,000 | 3,118,408 |
6.25%, due 10/15/53 | 9,150,000 | 7,363,832 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
44 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Pennsylvania (continued) |
Delaware County Authority, Cabrini University, Revenue Bonds | | |
5.00%, due 7/1/42 | $ 1,215,000 | $ 1,216,962 |
Franklin County Industrial Development Authority, Menno-Haven, Inc. Project, Revenue Bonds | | |
5.00%, due 12/1/39 | 375,000 | 332,836 |
5.00%, due 12/1/49 | 1,020,000 | 830,390 |
General Authority of Southcentral Pennsylvania, York Academy Regional Charter School Project, Revenue Bonds (c) | | |
Series A | | |
6.00%, due 7/15/38 | 2,795,000 | 2,861,254 |
Series A | | |
6.50%, due 7/15/48 | 4,150,000 | 4,256,521 |
Huntingdon County General Authority, AICUP Financing Program, Revenue Bonds | | |
Series OO2 | | |
5.00%, due 5/1/46 | 3,955,000 | 3,714,998 |
Jefferson County Hospital Authority (The), Punxsutawney Area Hospital, Inc., Revenue Bonds | | |
4.50%, due 1/15/27 (c) | 5,270,000 | 5,265,215 |
Lancaster Higher Education Authority, Elizabethtown College Project, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/51 | 3,000,000 | 2,748,173 |
Lancaster Industrial Development Authority, Willow Valley Communities Project, Revenue Bonds | | |
4.00%, due 12/1/49 | 3,450,000 | 2,829,000 |
5.00%, due 12/1/49 | 3,940,000 | 3,806,355 |
Lancaster Industrial Development Authority, Landis Homes Retirement Community, Revenue Bonds | | |
4.00%, due 7/1/51 | 2,750,000 | 2,064,793 |
Montgomery County Higher Education and Health Authority, Thomas Jefferson University Project, Revenue Bonds | | |
4.00%, due 9/1/44 | 3,000,000 | 2,794,750 |
| Principal Amount | Value |
|
Pennsylvania (continued) |
Montgomery County Higher Education and Health Authority, Thomas Jefferson University Project, Revenue Bonds (continued) | | |
4.00%, due 9/1/49 | $ 4,750,000 | $ 4,291,796 |
Insured: AGM-CR | | |
4.00%, due 9/1/49 | 15,610,000 | 14,725,466 |
Montgomery County Higher Education and Health Authority, Philadelphia Presbyterian Homes Project, Revenue Bonds | | |
4.00%, due 12/1/48 | 3,995,000 | 3,156,080 |
Montgomery County Industrial Development Authority, ACTS Retirement-Life Communities, Inc. Obligated Group, Revenue Bonds | | |
5.00%, due 11/15/36 | 4,530,000 | 4,645,847 |
New Wilmington Municipal Authority, Westminster College Project, Revenue Bonds | | |
Series PP-1 | | |
5.25%, due 5/1/46 | 85,000 | 81,596 |
Northeastern Pennsylvania Hospital and Education Authority, King's College Project, Revenue Bonds | | |
5.00%, due 5/1/44 | 1,000,000 | 922,431 |
5.00%, due 5/1/49 | 1,350,000 | 1,203,175 |
Pennsylvania Economic Development Financing Authority, Waste Management, Inc. Project, Revenue Bonds | | |
0.95%, due 12/1/33 (b) | 9,250,000 | 8,509,154 |
Pennsylvania Economic Development Financing Authority, Rapid Bridge Replacement Project, Revenue Bonds | | |
4.125%, due 12/31/38 | 4,000,000 | 3,712,852 |
Pennsylvania Economic Development Financing Authority, Penndot Major Bridges Project, Revenue Bonds (a) | | |
Insured: AGM | | |
5.00%, due 12/31/57 | 7,900,000 | 8,232,156 |
5.25%, due 6/30/53 | 8,395,000 | 8,717,237 |
5.75%, due 6/30/48 | 6,560,000 | 7,137,458 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
45
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Pennsylvania (continued) |
Pennsylvania Higher Education Assistance Agency, Revenue Bonds | | |
Series 1C | | |
5.00%, due 6/1/51 (a) | $ 4,950,000 | $ 4,722,286 |
Pennsylvania Turnpike Commission, Revenue Bonds | | |
Series B | | |
4.00%, due 12/1/46 | 6,770,000 | 6,408,028 |
Series A | | |
4.00%, due 12/1/50 | 7,650,000 | 7,114,980 |
Series A, Insured: BAM | | |
4.00%, due 12/1/50 | 46,265,000 | 43,770,835 |
Philadelphia Authority for Industrial Development, Mariana Bracetti Academy Charter School, Revenue Bonds | | |
Series B | | |
4.875%, due 12/15/35 (c) | 6,215,000 | 5,943,649 |
Philadelphia Authority for Industrial Development, Russell Byers Charter School, Revenue Bonds | | |
Series A | | |
5.00%, due 5/1/40 | 1,105,000 | 1,066,164 |
Series A | | |
5.00%, due 5/1/50 | 3,130,000 | 2,846,050 |
Philadelphia Authority for Industrial Development, MaST Charter School Project, Revenue Bonds | | |
Series A | | |
5.00%, due 8/1/40 | 600,000 | 578,656 |
Series A | | |
5.00%, due 8/1/50 | 1,050,000 | 958,252 |
Philadelphia Authority for Industrial Development, University of the Arts (The), Revenue Bonds (c) | | |
5.00%, due 3/15/45 | 300,000 | 320,521 |
5.00%, due 3/15/45 | 4,875,000 | 4,036,013 |
Philadelphia Authority for Industrial Development, Philadelphia Performing Arts Charter School, Revenue Bonds | | |
Series A | | |
5.00%, due 6/15/50 (c) | 1,700,000 | 1,609,830 |
| Principal Amount | Value |
|
Pennsylvania (continued) |
Philadelphia Authority for Industrial Development, International Education & Community Initiatives Project, Revenue Bonds (c) | | |
Series A | | |
5.125%, due 6/1/38 | $ 2,000,000 | $ 1,936,578 |
Series A | | |
5.25%, due 6/1/48 | 3,085,000 | 2,896,543 |
Philadelphia Authority for Industrial Development, Greater Philadelphia Health Action, Inc., Revenue Bonds | | |
Series A | | |
6.50%, due 6/1/45 | 2,200,000 | 2,199,722 |
Philadelphia Authority for Industrial Development, First Philadelphia Preparatory Charter School, Revenue Bonds | | |
Series A | | |
7.25%, due 6/15/43 | 4,150,000 | 4,164,522 |
Scranton Redevelopment Authority, Revenue Bonds | | |
Series A, Insured: MUN GOVT GTD | | |
5.00%, due 11/15/28 | 6,425,000 | 6,426,593 |
Scranton-Lackawanna Health and Welfare Authority, Marywood University Project, Revenue Bonds | | |
5.00%, due 6/1/36 | 1,000,000 | 950,316 |
5.00%, due 6/1/46 | 4,625,000 | 4,042,441 |
Wilkes-Barre Finance Authority, Wilkes University Project, Revenue Bonds | | |
4.00%, due 3/1/42 | 2,500,000 | 1,958,791 |
| | 326,697,261 |
Puerto Rico 10.5% |
Children's Trust Fund, Asset-Backed, Revenue Bonds | | |
Series A | | |
(zero coupon), due 5/15/50 | 43,900,000 | 8,091,156 |
Series B | | |
(zero coupon), due 5/15/57 | 97,900,000 | 5,996,306 |
5.50%, due 5/15/39 | 1,270,000 | 1,276,894 |
5.625%, due 5/15/43 | 36,560,000 | 37,011,216 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
46 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Puerto Rico (continued) |
Commonwealth of Puerto Rico, Unlimited General Obligation | | |
Series A-1 | | |
(zero coupon), due 7/1/33 | $ 26,422,270 | $ 17,336,743 |
Series A-1 | | |
4.00%, due 7/1/35 | 53,687,833 | 52,083,651 |
Series A-1 | | |
4.00%, due 7/1/37 | 33,727,084 | 32,323,083 |
Series A-1 | | |
4.00%, due 7/1/41 | 19,323,126 | 17,978,180 |
Series A-1 | | |
4.00%, due 7/1/46 | 12,500,000 | 11,270,605 |
Commonwealth of Puerto Rico | | |
(zero coupon), due 11/1/43 | 178,700,250 | 106,550,024 |
(zero coupon), due 11/1/51 | 33,854,991 | 20,355,314 |
(zero coupon), due 11/1/51 | 27,500,000 | 5,534,375 |
GDB Debt Recovery Authority of Puerto Rico, Revenue Bonds | | |
7.50%, due 8/20/40 | 80,134,892 | 77,330,171 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds, Senior Lien (c) | | |
Series C | | |
3.50%, due 7/1/26 | 14,625,000 | 13,886,761 |
Series A | | |
5.00%, due 7/1/27 | 345,000 | 356,487 |
Series 2020A | | |
5.00%, due 7/1/30 | 4,135,000 | 4,377,220 |
Series 2020A | | |
5.00%, due 7/1/35 | 15,960,000 | 16,774,830 |
Series A | | |
5.00%, due 7/1/37 | 5,750,000 | 6,040,665 |
Series A | | |
5.00%, due 7/1/47 | 127,655,000 | 129,334,187 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds (c) | | |
Series B | | |
5.00%, due 7/1/33 | 5,300,000 | 5,637,208 |
Series B | | |
5.00%, due 7/1/37 | 20,695,000 | 21,631,364 |
Puerto Rico Electric Power Authority, Revenue Bonds | | |
Series DDD | | |
3.30%, due 7/1/19 (d)(e)(g) | 1,015,000 | 266,437 |
Series ZZ | | |
4.25%, due 7/1/20 (d)(e)(g) | 1,355,000 | 355,687 |
| Principal Amount | Value |
|
Puerto Rico (continued) |
Puerto Rico Electric Power Authority, Revenue Bonds (continued) | | |
Series CCC | | |
4.25%, due 7/1/23 (d)(e) | $ 1,150,000 | $ 301,875 |
Series UU, Insured: AGM | | |
4.266%, due 7/1/29 | 4,640,000 | 4,421,393 |
Series CCC | | |
4.375%, due 7/1/22 (d)(e)(g) | 115,000 | 30,188 |
Series CCC | | |
4.60%, due 7/1/24 (d)(e) | 200,000 | 53,000 |
Series CCC | | |
4.625%, due 7/1/25 (d)(e) | 1,085,000 | 287,525 |
Series XX | | |
4.75%, due 7/1/26 (d)(e) | 320,000 | 84,800 |
Series ZZ | | |
4.75%, due 7/1/27 (d)(e) | 405,000 | 107,325 |
Series A | | |
4.80%, due 7/1/29 (d)(e) | 690,000 | 182,850 |
Series DDD | | |
5.00%, due 7/1/20 (d)(e)(g) | 3,250,000 | 853,125 |
Series TT | | |
5.00%, due 7/1/20 (d)(e)(g) | 2,195,000 | 576,187 |
Series CCC | | |
5.00%, due 7/1/21 (d)(e)(g) | 470,000 | 123,375 |
Series DDD | | |
5.00%, due 7/1/21 (d)(e)(g) | 275,000 | 72,187 |
Series TT | | |
5.00%, due 7/1/21 (d)(e)(g) | 1,215,000 | 318,937 |
Series TT | | |
5.00%, due 7/1/23 (d)(e) | 365,000 | 95,812 |
Series CCC | | |
5.00%, due 7/1/24 (d)(e) | 1,845,000 | 488,925 |
Series RR, Insured: NATL-RE | | |
5.00%, due 7/1/24 | 115,000 | 115,013 |
Series TT | | |
5.00%, due 7/1/24 (d)(e) | 450,000 | 119,250 |
Series CCC | | |
5.00%, due 7/1/25 (d)(e) | 575,000 | 152,375 |
Series SS, Insured: NATL-RE | | |
5.00%, due 7/1/25 | 770,000 | 770,257 |
Series TT | | |
5.00%, due 7/1/25 (d)(e) | 1,030,000 | 272,950 |
Series TT | | |
5.00%, due 7/1/26 (d)(e) | 1,050,000 | 278,250 |
Series TT, Insured: AGM-CR | | |
5.00%, due 7/1/27 | 150,000 | 149,816 |
Series TT | | |
5.00%, due 7/1/27 (d)(e) | 1,250,000 | 331,250 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
47
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Puerto Rico (continued) |
Puerto Rico Electric Power Authority, Revenue Bonds (continued) | | |
Series WW | | |
5.00%, due 7/1/28 (d)(e) | $ 380,000 | $ 100,700 |
Series TT | | |
5.00%, due 7/1/32 (d)(e) | 9,320,000 | 2,469,800 |
Series A | | |
5.00%, due 7/1/42 (d)(e) | 8,755,000 | 2,320,075 |
Series A | | |
5.05%, due 7/1/42 (d)(e) | 825,000 | 218,625 |
Series ZZ | | |
5.25%, due 7/1/20 (d)(e)(g) | 225,000 | 59,063 |
Series ZZ | | |
5.25%, due 7/1/23 (d)(e) | 620,000 | 162,750 |
Series AAA | | |
5.25%, due 7/1/24 (d)(e) | 3,000,000 | 795,000 |
Series WW | | |
5.25%, due 7/1/25 (d)(e) | 1,605,000 | 425,325 |
Series AAA | | |
5.25%, due 7/1/26 (d)(e) | 110,000 | 29,150 |
Series ZZ | | |
5.25%, due 7/1/26 (d)(e) | 3,520,000 | 932,800 |
Series VV, Insured: NATL-RE | | |
5.25%, due 7/1/29 | 630,000 | 620,733 |
Series AAA | | |
5.25%, due 7/1/30 (d)(e) | 985,000 | 261,025 |
Series VV, Insured: NATL-RE | | |
5.25%, due 7/1/30 | 3,850,000 | 3,786,157 |
Series VV, Insured: NATL-RE | | |
5.25%, due 7/1/32 | 345,000 | 341,290 |
Series WW | | |
5.25%, due 7/1/33 (d)(e) | 8,310,000 | 2,202,150 |
Series XX | | |
5.25%, due 7/1/35 (d)(e) | 2,265,000 | 600,225 |
Series XX | | |
5.25%, due 7/1/40 (d)(e) | 18,055,000 | 4,784,575 |
Series BBB | | |
5.40%, due 7/1/28 (d)(e) | 9,615,000 | 2,547,975 |
Series WW | | |
5.50%, due 7/1/38 (d)(e) | 11,595,000 | 3,072,675 |
Series XX | | |
5.75%, due 7/1/36 (d)(e) | 4,055,000 | 1,074,575 |
Series A | | |
6.75%, due 7/1/36 (d)(e) | 11,550,000 | 3,060,750 |
Series A | | |
7.00%, due 7/1/33 (d)(e) | 1,500,000 | 397,500 |
| Principal Amount | Value |
|
Puerto Rico (continued) |
Puerto Rico Electric Power Authority, Revenue Bonds (continued) | | |
Series A | | |
7.00%, due 7/1/43 (d)(e) | $ 4,750,000 | $ 1,258,750 |
Puerto Rico Electric Power Authority, Build America Bonds, Revenue Bonds (d)(e) | | |
Series EEE | | |
5.95%, due 7/1/30 | 25,585,000 | 6,780,025 |
Series EEE | | |
6.05%, due 7/1/32 | 12,265,000 | 3,250,225 |
Series YY | | |
6.125%, due 7/1/40 | 44,950,000 | 11,911,750 |
Series EEE | | |
6.25%, due 7/1/40 | 10,165,000 | 2,693,725 |
Puerto Rico Municipal Finance Agency, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 8/1/27 | 1,705,000 | 1,716,325 |
Puerto Rico Sales Tax Financing Corp., Revenue Bonds | | |
Series A-1 | | |
(zero coupon), due 7/1/31 | 1,842,000 | 1,390,203 |
Series A-1 | | |
(zero coupon), due 7/1/46 | 213,086,000 | 66,818,506 |
Series A-1 | | |
(zero coupon), due 7/1/51 | 40,384,000 | 9,259,805 |
(zero coupon), due 8/1/54 | 516,302 | 100,039 |
Series A-2 | | |
4.329%, due 7/1/40 | 20,500,000 | 20,076,288 |
Series A-1 | | |
4.50%, due 7/1/34 | 792,000 | 795,078 |
Series A-1 | | |
4.75%, due 7/1/53 | 12,968,000 | 12,688,617 |
Series A-2 | | |
4.784%, due 7/1/58 | 40,087,000 | 39,316,997 |
Series A-1 | | |
5.00%, due 7/1/58 | 98,991,000 | 99,002,671 |
| | 909,307,151 |
Rhode Island 0.2% |
Providence Redevelopment Agency, Port Providence Lease, Certificate of Participation | | |
Series A, Insured: AGC | | |
(zero coupon), due 9/1/24 | 1,735,000 | 1,708,698 |
Series A, Insured: AGC | | |
(zero coupon), due 9/1/26 | 685,000 | 621,372 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
48 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Rhode Island (continued) |
Providence Redevelopment Agency, Port Providence Lease, Certificate of Participation (continued) | | |
Series A, Insured: AGC | | |
(zero coupon), due 9/1/29 | $ 1,835,000 | $ 1,489,091 |
Series A, Insured: AGC | | |
(zero coupon), due 9/1/30 | 1,835,000 | 1,430,063 |
Series A, Insured: AGC | | |
(zero coupon), due 9/1/32 | 1,500,000 | 1,075,526 |
Series A, Insured: AGC | | |
(zero coupon), due 9/1/34 | 1,000,000 | 663,298 |
Series A, Insured: AGC | | |
(zero coupon), due 9/1/35 | 360,000 | 228,472 |
Series A, Insured: AGC | | |
(zero coupon), due 9/1/36 | 470,000 | 282,778 |
Tobacco Settlement Financing Corp., Revenue Bonds | | |
Series A | | |
(zero coupon), due 6/1/52 | 78,620,000 | 13,618,234 |
| | 21,117,532 |
South Carolina 0.7% |
South Carolina Jobs-Economic Development Authority, Bishop Gadsden Episcopal Retirement Community, Revenue Bonds | | |
Series A | | |
4.00%, due 4/1/54 | 1,160,000 | 859,791 |
Series A | | |
5.00%, due 4/1/54 | 3,000,000 | 2,744,072 |
South Carolina Jobs-Economic Development Authority, Green Charter School Project, Revenue Bonds | | |
Series A | | |
4.00%, due 6/1/56 (c) | 3,530,000 | 2,346,576 |
South Carolina Jobs-Economic Development Authority, Woodlands at Furman Project, Revenue Bonds | | |
Series A | | |
5.00%, due 11/15/54 | 1,000,000 | 875,817 |
5.25%, due 11/15/47 | 5,025,000 | 4,740,049 |
5.25%, due 11/15/52 | 1,625,000 | 1,494,659 |
| Principal Amount | Value |
|
South Carolina (continued) |
South Carolina Public Service Authority, Santee Cooper Project, Revenue Bonds | | |
Series B, Insured: BAM | | |
4.00%, due 12/1/46 | $ 5,710,000 | $ 5,328,946 |
Series B, Insured: BAM | | |
4.00%, due 12/1/48 | 20,839,000 | 19,124,921 |
Series B, Insured: BAM | | |
4.00%, due 12/1/50 | 4,805,000 | 4,350,676 |
Series B, Insured: BAM | | |
4.00%, due 12/1/54 | 4,932,000 | 4,376,548 |
Series B, Insured: BAM | | |
4.00%, due 12/1/55 | 14,546,000 | 12,890,814 |
| | 59,132,869 |
Tennessee 0.5% |
Chattanooga Health Educational & Housing Facility Board, CommonSpirit Health, Revenue Bonds | | |
Series A-2 | | |
5.00%, due 8/1/44 | 2,640,000 | 2,714,094 |
Chattanooga-Hamilton County Hospital Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/44 | 6,200,000 | 6,042,992 |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Belmont University, Revenue Bonds | | |
4.00%, due 5/1/46 | 2,500,000 | 2,422,328 |
4.00%, due 5/1/51 | 13,900,000 | 13,084,120 |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Trevecca Nazarene University Project, Revenue Bonds | | |
Series B | | |
4.00%, due 10/1/51 | 4,580,000 | 3,573,850 |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Revenue Bonds | | |
5.00%, due 10/1/48 | 2,800,000 | 2,648,765 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
49
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Tennessee (continued) |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Lipscomb University Project, Revenue Bonds | | |
Series A | | |
5.25%, due 10/1/58 | $ 8,650,000 | $ 8,713,378 |
Tennessee Energy Acquisition Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 5/1/52 (b) | 6,550,000 | 6,887,251 |
| | 46,086,778 |
Texas 4.6% |
Bastrop Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 2/15/53 | 4,750,000 | 5,030,655 |
Bexar County Health Facilities Development Corp., Army Retirement Residence Foundation Project, Revenue Bonds | | |
5.00%, due 7/15/41 | 3,300,000 | 2,948,632 |
Calhoun County Navigation Industrial Development Authority, Max Midstream Texas LLC Project, Revenue Bonds, Senior Lien (c) | | |
Series A | | |
3.625%, due 7/1/26 (a) | 14,805,000 | 13,889,676 |
Series B | | |
6.50%, due 7/1/26 | 13,700,000 | 12,958,398 |
Central Texas Regional Mobility Authority, Capital Appreciation, Revenue Bonds | | |
(zero coupon), due 1/1/33 | 315,000 | 225,676 |
(zero coupon), due 1/1/34 | 3,275,000 | 2,249,940 |
(zero coupon), due 1/1/35 | 3,700,000 | 2,432,261 |
(zero coupon), due 1/1/36 | 2,000,000 | 1,243,694 |
(zero coupon), due 1/1/39 | 3,500,000 | 1,794,408 |
Central Texas Regional Mobility Authority, Revenue Bonds | | |
4.00%, due 1/1/41 | 6,000,000 | 5,719,505 |
City of Arlington, Tax Increment Reinvestment Zone No. 5, Tax Allocation | | |
4.00%, due 8/15/50 | 2,355,000 | 1,914,253 |
| Principal Amount | Value |
|
Texas (continued) |
City of Houston, Airport System, United Airlines Inc. Project, Revenue Bonds (a) | | |
Series B-1 | | |
4.00%, due 7/15/41 | $ 4,100,000 | $ 3,851,409 |
Series B-1 | | |
5.00%, due 7/15/30 | 2,000,000 | 2,005,405 |
City of Houston, Airport System, Revenue Bonds, Sub. Lien (a) | | |
Series A | | |
4.00%, due 7/1/48 | 6,810,000 | 6,170,768 |
Series A, Insured: AGM | | |
5.25%, due 7/1/53 | 3,500,000 | 3,686,410 |
City of Lago Vista, Tessera on Lake Travis Public Improvement District Project, Special Assessment | | |
Series B | | |
4.875%, due 9/1/50 (c) | 1,250,000 | 1,087,446 |
Clifton Higher Education Finance Corp., IDEA Public Schools, Revenue Bonds | | |
Series A | | |
4.00%, due 8/15/47 | 4,030,000 | 3,522,298 |
6.00%, due 8/15/43 | 3,250,000 | 3,253,505 |
Danbury Higher Education Authority, Inc., Golden Rule School, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 8/15/49 | 1,725,000 | 1,330,795 |
Decatur Hospital Authority, Wise Regional Health System, Revenue Bonds | | |
Series A | | |
5.25%, due 9/1/44 | 3,250,000 | 3,261,195 |
Denton Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 8/15/48 | 13,565,000 | 14,585,454 |
Grand Parkway Transportation Corp., Revenue Bonds, First Tier | | |
Series C, Insured: AGM-CR | | |
4.00%, due 10/1/49 | 72,540,000 | 67,261,112 |
Harris County Cultural Education Facilities Finance Corp., YMCA Greater Houston Area, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/33 | 900,000 | 862,545 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
50 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Texas (continued) |
Harris County Cultural Education Facilities Finance Corp., YMCA Greater Houston Area, Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 6/1/38 | $ 1,960,000 | $ 1,756,408 |
Harris County-Houston Sports Authority, Revenue Bonds, Junior Lien | | |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/26 | 65,000 | 58,819 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/26 | 535,000 | 480,856 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/29 | 10,000 | 8,154 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/29 | 725,000 | 577,592 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/32 | 250,000 | 170,816 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/33 | 185,000 | 118,362 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/38 | 1,395,000 | 629,042 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/39 | 1,525,000 | 639,117 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/40 | 1,855,000 | 724,770 |
Series H, Insured: NATL-RE | | |
(zero coupon), due 11/15/41 | 700,000 | 255,900 |
Harris County-Houston Sports Authority, Revenue Bonds, Third Lien | | |
Series A-3, Insured: NATL-RE | | |
(zero coupon), due 11/15/32 | 1,670,000 | 1,021,712 |
Series A-3, Insured: NATL-RE | | |
(zero coupon), due 11/15/33 | 890,000 | 513,045 |
Series A-3, Insured: NATL-RE | | |
(zero coupon), due 11/15/34 | 220,000 | 119,714 |
Series A-3, Insured: NATL-RE | | |
(zero coupon), due 11/15/34 | 2,320,000 | 1,259,925 |
Harris County-Houston Sports Authority, Revenue Bonds, Senior Lien | | |
Series A, Insured: AGM NATL-RE | | |
(zero coupon), due 11/15/34 | 2,035,000 | 1,247,828 |
Series A, Insured: AGM NATL-RE | | |
(zero coupon), due 11/15/38 | 35,615,000 | 16,524,783 |
| Principal Amount | Value |
|
Texas (continued) |
Harris County-Houston Sports Authority, Revenue Bonds, Senior Lien (continued) | | |
Series A, Insured: AGM NATL-RE | | |
(zero coupon), due 11/15/40 | $ 1,310,000 | $ 528,613 |
Hemphill County Hospital District, Limited General Obligation | | |
4.625%, due 2/1/39 | 2,765,000 | 2,499,590 |
Lake Houston Redevelopment Authority, City of Houston Reinvestment Zone No. 10, Revenue Bonds | | |
3.00%, due 9/1/47 | 2,330,000 | 1,618,658 |
Montgomery County Toll Road Authority, Revenue Bonds, Senior Lien | | |
5.00%, due 9/15/48 | 2,500,000 | 2,511,327 |
New Hope Cultural Education Facilities Finance Corp., Jubilee Academic Center, Inc., Revenue Bonds (c) | | |
4.00%, due 8/15/36 | 1,000,000 | 906,392 |
4.00%, due 8/15/41 | 6,315,000 | 5,278,943 |
4.00%, due 8/15/46 | 880,000 | 697,191 |
4.00%, due 8/15/56 | 6,900,000 | 5,072,380 |
New Hope Cultural Education Facilities Finance Corp., CHF-Collegiate Housing Denton LLC, Revenue Bonds | | |
Series B-1, Insured: AGM | | |
4.00%, due 7/1/48 | 1,000,000 | 890,416 |
New Hope Cultural Education Facilities Finance Corp., Westminster Project, Revenue Bonds | | |
4.00%, due 11/1/49 | 1,600,000 | 1,374,968 |
New Hope Cultural Education Facilities Finance Corp., Quality Senior Housing Foundation of East Texas, Inc., Revenue Bonds | | |
Series A-1 | | |
4.00%, due 12/1/54 | 555,000 | 403,978 |
Series A-1 | | |
5.00%, due 12/1/54 | 3,770,000 | 3,296,684 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
51
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Texas (continued) |
New Hope Cultural Education Facilities Finance Corp., Cumberland Academy, Inc., Revenue Bonds (c) | | |
Series A | | |
5.00%, due 8/15/40 | $ 3,950,000 | $ 3,808,955 |
Series A | | |
5.00%, due 8/15/50 | 750,000 | 685,512 |
New Hope Cultural Education Facilities Finance Corp., Southwest Preparatory School, Revenue Bonds | | |
Series A | | |
5.00%, due 8/15/50 (c) | 3,880,000 | 3,319,657 |
New Hope Cultural Education Facilities Finance Corp., Wesleyan Homes, Inc., Project, Revenue Bonds | | |
5.00%, due 1/1/55 | 1,500,000 | 1,082,508 |
New Hope Cultural Education Facilities Finance Corp., Legacy at Midtown Park Project, Revenue Bonds | | |
Series A | | |
5.50%, due 7/1/54 | 2,500,000 | 1,796,098 |
North Texas Tollway Authority, Revenue Bonds, Second Tier | | |
Series B, Insured: BAM | | |
3.00%, due 1/1/46 | 17,800,000 | 13,856,070 |
5.00%, due 1/1/50 | 1,750,000 | 1,783,192 |
Port Freeport, Revenue Bonds, Senior Lien | | |
4.00%, due 6/1/51 (a) | 4,035,000 | 3,428,822 |
Port of Port Arthur Navigation District, Port Improvement, Unlimited General Obligation | | |
4.00%, due 3/1/47 (a) | 4,200,000 | 3,595,261 |
Reagan Hospital District of Reagan County, Limited General Obligation | | |
Series A | | |
5.125%, due 2/1/39 | 1,400,000 | 1,321,861 |
Red River Education Finance Corp., Houston Baptist University Project, Revenue Bonds | | |
5.50%, due 10/1/46 | 5,950,000 | 5,955,267 |
| Principal Amount | Value |
|
Texas (continued) |
San Antonio Education Facilities Corp., University of the Incarnate Word, Revenue Bonds | | |
Series A | | |
4.00%, due 4/1/51 | $ 4,000,000 | $ 3,142,238 |
Tarrant County Cultural Education Facilities Finance Corp., Barton Creek Senior Living Center Project, Revenue Bonds | | |
5.00%, due 11/15/40 | 1,350,000 | 1,260,596 |
Tarrant County Cultural Education Facilities Finance Corp., Buckner Retirement Services, Revenue Bonds | | |
Series B | | |
5.00%, due 11/15/40 | 1,250,000 | 1,225,289 |
Tarrant County Cultural Education Facilities Finance Corp., Buckner Retirement Services, Inc. Project, Revenue Bonds | | |
5.00%, due 11/15/46 | 3,025,000 | 2,857,751 |
Texas Municipal Gas Acquisition & Supply Corp. II, Revenue Bonds | | |
Series C | | |
4.38%, due 9/15/27 | 35,655,000 | 35,578,623 |
Texas Private Activity Bond Surface Transportation Corp., North Tarrant Express Managed Lanes Project, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 12/31/37 | 2,120,000 | 2,082,010 |
Series A | | |
4.00%, due 12/31/38 | 2,745,000 | 2,666,886 |
Series A | | |
4.00%, due 12/31/39 | 4,385,000 | 4,241,663 |
5.50%, due 12/31/58 (a) | 26,000,000 | 27,907,155 |
Texas Private Activity Bond Surface Transportation Corp., Blueridge Transportation Group LLC, Revenue Bonds, Senior Lien | | |
5.00%, due 12/31/55 (a) | 11,505,000 | 11,521,957 |
Texas Private Activity Bond Surface Transportation Corp., NTE Mobility Partners Segments 3 LLC, Revenue Bonds, Senior Lien | | |
5.00%, due 6/30/58 (a) | 30,855,000 | 31,090,090 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
52 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Texas (continued) |
Texas Transportation Commission, State Highway 249, Revenue Bonds, First Tier | | |
Series A | | |
(zero coupon), due 8/1/43 | $ 3,750,000 | $ 1,459,882 |
Series A | | |
(zero coupon), due 8/1/44 | 4,200,000 | 1,544,473 |
Texas Water Development Board, State Water Implementation Fund, Revenue Bonds | | |
Series A | | |
5.00%, due 10/15/58 | 11,000,000 | 11,643,144 |
Tomball Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 2/15/48 | 6,185,000 | 6,604,548 |
| | 397,930,931 |
U.S. Virgin Islands 2.5% |
Matching Fund Special Purpose Securitization Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/30 | 23,765,000 | 25,266,499 |
Series A | | |
5.00%, due 10/1/32 | 37,995,000 | 40,829,100 |
Series A | | |
5.00%, due 10/1/39 | 104,875,000 | 109,478,132 |
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue Bonds | | |
Series C | | |
5.00%, due 10/1/30 (c) | 16,670,000 | 16,280,909 |
Series A | | |
5.00%, due 10/1/32 | 14,100,000 | 13,381,959 |
Series A | | |
5.00%, due 10/1/34 (c) | 2,600,000 | 2,444,778 |
Series C | | |
5.00%, due 10/1/39 (c) | 9,310,000 | 8,664,958 |
| | 216,346,335 |
Utah 1.5% |
Black Desert Public Infrastructure District, Limited General Obligation (c) | | |
Series A | | |
3.75%, due 3/1/41 | 410,000 | 323,159 |
| Principal Amount | Value |
|
Utah (continued) |
Black Desert Public Infrastructure District, Limited General Obligation (c) (continued) | | |
Series A | | |
4.00%, due 3/1/51 | $ 2,725,000 | $ 1,988,327 |
City of Salt Lake City, Airport, Revenue Bonds (a) | | |
Series A | | |
5.00%, due 7/1/51 | 8,450,000 | 8,600,876 |
Series A | | |
5.25%, due 7/1/48 | 25,750,000 | 27,283,873 |
Series A | | |
5.25%, due 7/1/53 | 1,750,000 | 1,837,847 |
Series A | | |
5.50%, due 7/1/53 | 1,760,000 | 1,885,067 |
Mida Golf and Equestrian Center Public Infrastructure District, Limited General Obligation (c) | | |
4.50%, due 6/1/51 | 10,070,000 | 7,092,540 |
4.625%, due 6/1/57 | 2,000,000 | 1,392,453 |
Mida Mountain Village Public Infrastructure District, Assessment Area No. 2, Special Assessment | | |
4.00%, due 8/1/50 (c) | 2,000,000 | 1,638,762 |
Mida Mountain Village Public Infrastructure District, Special Assessment (c) | | |
Series A | | |
4.50%, due 8/1/40 | 1,500,000 | 1,403,943 |
Series A | | |
5.00%, due 8/1/50 | 5,000,000 | 4,723,738 |
Military Installation Development Authority, Revenue Bonds | | |
Series A-1 | | |
4.00%, due 6/1/36 | 4,000,000 | 3,450,214 |
Series A-1 | | |
4.00%, due 6/1/41 | 2,430,000 | 1,961,182 |
Series A-1 | | |
4.00%, due 6/1/52 | 14,425,000 | 10,340,623 |
UIPA Crossroads Public Infrastructure District, Tax Allocation | | |
4.375%, due 6/1/52 (c) | 7,500,000 | 6,305,359 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
53
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Utah (continued) |
Utah Charter School Finance Authority, Spectrum Academy Project, Revenue Bonds | | |
Insured: BAM UT CSCE | | |
4.00%, due 4/15/45 | $ 2,975,000 | $ 2,715,085 |
Insured: BAM UT CSCE | | |
4.00%, due 4/15/50 | 3,395,000 | 2,989,108 |
Utah Charter School Finance Authority, North Star Academy Project, Revenue Bonds | | |
Series A, Insured: UT CSCE | | |
4.00%, due 4/15/45 | 2,020,000 | 1,755,394 |
Utah Charter School Finance Authority, Vista School, Revenue Bonds | | |
Series 2020A, Insured: UT CSCE | | |
4.00%, due 10/15/45 | 1,870,000 | 1,666,963 |
Series 2020A, Insured: UT CSCE | | |
4.00%, due 10/15/54 | 4,700,000 | 3,947,913 |
Utah Charter School Finance Authority, Providence Hall Project, Revenue Bonds | | |
Series A, Insured: BAM UT CSCE | | |
4.00%, due 10/15/51 | 3,000,000 | 2,630,733 |
Utah Infrastructure Agency, Telecommunication, Revenue Bonds | | |
3.00%, due 10/15/45 | 4,425,000 | 2,982,897 |
4.00%, due 10/15/42 | 3,970,000 | 3,382,945 |
Series A | | |
5.00%, due 10/15/32 | 1,615,000 | 1,647,016 |
Series A | | |
5.00%, due 10/15/34 | 3,085,000 | 3,139,957 |
Series A | | |
5.00%, due 10/15/37 | 1,100,000 | 1,106,924 |
Series A | | |
5.00%, due 10/15/40 | 3,780,000 | 3,771,828 |
5.00%, due 10/15/46 | 3,400,000 | 3,259,163 |
Series A | | |
5.375%, due 10/15/40 | 5,910,000 | 5,988,808 |
5.625%, due 10/15/38 | 2,530,000 | 2,691,754 |
6.00%, due 10/15/47 | 6,350,000 | 6,796,936 |
| | 130,701,387 |
| Principal Amount | Value |
|
Vermont 0.1% |
Vermont Economic Development Authority, Wake Robin Corp. Project, Revenue Bonds | | |
Series A | | |
4.00%, due 5/1/45 | $ 2,350,000 | $ 1,932,051 |
Vermont Student Assistance Corp., Education Loan, Revenue Bonds | | |
Series B | | |
4.50%, due 6/15/45 (a) | 3,500,000 | 2,932,092 |
| | 4,864,143 |
Virginia 2.0% |
Chesapeake Bay Bridge & Tunnel District, Revenue Bonds, First Tier | | |
5.00%, due 7/1/46 | 5,840,000 | 5,867,166 |
5.00%, due 7/1/51 | 5,995,000 | 6,002,810 |
Farmville Industrial Development Authority, Longwood University Student Project, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/48 | 6,700,000 | 6,142,695 |
Series A | | |
5.00%, due 1/1/55 | 16,100,000 | 14,383,965 |
Farmville Industrial Development Authority, Longwood University Student Housing Project, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/59 | 7,255,000 | 6,399,021 |
Henrico County Economic Development Authority, LifeSpire of Virginia, Residential Care Facility, Revenue Bonds | | |
Series C | | |
5.00%, due 12/1/47 | 2,200,000 | 2,200,621 |
James City County Economic Development Authority, Williamsburg Landing, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 12/1/50 | 3,235,000 | 2,493,963 |
Lynchburg Economic Development Authority, Randolph College Project, Revenue Bonds | | |
5.00%, due 9/1/48 | 3,455,000 | 3,345,858 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
54 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Virginia (continued) |
Newport News Economic Development Authority, LifeSpire of Virginia Obligated Group, Revenue Bonds | | |
5.00%, due 12/1/38 | $ 7,720,000 | $ 7,775,626 |
Roanoke Economic Development Authority, Lynchburg College, Revenue Bonds | | |
Series A | | |
4.00%, due 9/1/48 | 4,590,000 | 3,693,068 |
Salem Economic Development Authority, Educational Facilities, Roanoke College, Revenue Bonds | | |
4.00%, due 4/1/45 | 840,000 | 712,629 |
5.00%, due 4/1/49 | 1,000,000 | 971,928 |
Tobacco Settlement Financing Corp., Tobacco Settlement Asset-Backed, Revenue Bonds | | |
Series 2007A-1 | | |
6.706%, due 6/1/46 | 30,880,000 | 26,179,388 |
Virginia College Building Authority, Regent University Project, Revenue Bonds | | |
3.00%, due 6/1/41 | 4,275,000 | 3,251,869 |
Virginia College Building Authority, Marymount University Project, Green Bond, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/45 (c) | 1,945,000 | 1,769,775 |
Virginia Small Business Financing Authority, Elizabeth River Crossings OpCo LLC, Revenue Bonds, Senior Lien | | |
3.00%, due 1/1/41 (a) | 4,000,000 | 3,208,813 |
Virginia Small Business Financing Authority, 95 Express Lanes LLC, Revenue Bonds, Senior Lien (a) | | |
4.00%, due 7/1/39 | 1,380,000 | 1,291,927 |
4.00%, due 1/1/48 | 20,170,000 | 17,796,025 |
5.00%, due 1/1/36 | 1,345,000 | 1,427,057 |
5.00%, due 1/1/38 | 3,000,000 | 3,131,134 |
Virginia Small Business Financing Authority, National Senior Campuses, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 1/1/45 | 2,510,000 | 2,264,605 |
| Principal Amount | Value |
|
Virginia (continued) |
Virginia Small Business Financing Authority, National Senior Campuses Inc. Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 1/1/51 | $ 11,840,000 | $ 10,258,916 |
Virginia Small Business Financing Authority, Capital Beltway Express LLC, Revenue Bonds, Senior Lien | | |
5.00%, due 12/31/47 (a) | 3,000,000 | 3,041,112 |
Virginia Small Business Financing Authority, Transform 66 P3 Project, Revenue Bonds, Senior Lien (a) | | |
5.00%, due 12/31/52 | 9,750,000 | 9,780,419 |
5.00%, due 12/31/56 | 18,375,000 | 18,411,004 |
Virginia Small Business Financing Authority, I-495 Hot Lanes Project, Revenue Bonds, Senior Lien | | |
5.00%, due 12/31/52 (a) | 15,415,000 | 15,475,804 |
| | 177,277,198 |
Washington 1.4% |
Grant County Public Hospital District No. 1, Unlimited General Obligation | | |
5.125%, due 12/1/48 | 3,945,000 | 3,952,090 |
5.125%, due 12/1/52 | 2,550,000 | 2,520,647 |
Pend Oreille County Public Utility District No. 1 Box Canyon, Revenue Bonds | | |
4.00%, due 1/1/41 | 3,000,000 | 2,723,994 |
Pend Oreille County Public Utility District No. 1 Box Canyon, Green Bond, Revenue Bonds | | |
5.00%, due 1/1/48 | 5,130,000 | 5,150,005 |
Port of Seattle, Revenue Bonds | | |
Series B | | |
5.00%, due 8/1/47 (a) | 5,800,000 | 5,983,197 |
Port of Seattle Industrial Development Corp., Delta Air Lines, Inc., Revenue Bonds | | |
5.00%, due 4/1/30 (a) | 1,825,000 | 1,825,226 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
55
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Washington (continued) |
Washington Economic Development Finance Authority, North Pacific Paper Co. Recycling Project, Green Bond, Revenue Bonds | | |
Series A | | |
5.625%, due 12/1/40 (a)(c) | $ 4,000,000 | $ 3,951,002 |
Washington Health Care Facilities Authority, CommonSpirit Health, Revenue Bonds | | |
Series A-2 | | |
5.00%, due 8/1/44 | 8,685,000 | 8,928,754 |
Washington Higher Education Facilities Authority, Whitworth University Project, Revenue Bonds | | |
4.00%, due 10/1/38 | 1,665,000 | 1,545,050 |
Series A | | |
5.00%, due 10/1/40 | 3,000,000 | 3,014,807 |
Washington Higher Education Facilities Authority, Seattle Pacific University Project, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/45 | 3,130,000 | 2,797,768 |
Washington State Convention Center Public Facilities District, Lodging Tax, Revenue Bonds | | |
Series B | | |
3.00%, due 7/1/43 | 5,565,000 | 4,401,137 |
Series B | | |
3.00%, due 7/1/48 | 2,465,000 | 1,837,093 |
Series B | | |
3.00%, due 7/1/58 | 8,875,000 | 5,871,676 |
Series B, Insured: BAM | | |
3.00%, due 7/1/58 | 13,510,000 | 9,337,228 |
Series B, Insured: AGM-CR | | |
3.00%, due 7/1/58 | 4,000,000 | 2,764,538 |
Insured: AGM-CR | | |
4.00%, due 7/1/58 | 8,810,000 | 7,735,359 |
Series B, Insured: AGM-CR | | |
4.00%, due 7/1/58 | 1,750,000 | 1,569,241 |
5.00%, due 7/1/58 | 9,750,000 | 9,887,376 |
Series A | | |
5.00%, due 7/1/58 | 5,615,000 | 5,742,689 |
Washington State Housing Finance Commission, Eliseo Project, Revenue Bonds (c) | | |
Series A | | |
4.00%, due 1/1/41 | 3,820,000 | 3,021,869 |
| Principal Amount | Value |
|
Washington (continued) |
Washington State Housing Finance Commission, Eliseo Project, Revenue Bonds (c) (continued) | | |
Series A | | |
4.00%, due 1/1/51 | $ 1,700,000 | $ 1,201,369 |
Series A | | |
4.00%, due 1/1/57 | 7,785,000 | 5,277,306 |
Washington State Housing Finance Commission, Riverview Retirement Community, Revenue Bonds | | |
5.00%, due 1/1/48 | 3,000,000 | 2,633,478 |
Washington State Housing Finance Commission, Provident Group-SH I Properties LLC, Revenue Bonds | | |
5.50%, due 7/1/59 | 6,000,000 | 6,259,456 |
Whidbey Island Public Hospital District, Whidbey General Hospital, Limited General Obligation | | |
3.75%, due 12/1/32 | 100,000 | 80,711 |
4.00%, due 12/1/37 | 290,000 | 219,183 |
Whidbey Island Public Hospital District, Unlimited General Obligation | | |
5.375%, due 12/1/39 | 9,520,000 | 8,411,843 |
5.50%, due 12/1/33 | 2,070,000 | 1,969,245 |
| | 120,613,337 |
West Virginia 0.4% |
County of Monongalia, Development District No. 4 University Town Center, Tax Allocation | | |
Series A | | |
6.00%, due 6/1/53 (c) | 4,750,000 | 4,985,511 |
County of Ohio, Special District Excise Tax, The Highlands Project, Revenue Bonds | | |
Series B | | |
4.25%, due 3/1/35 | 4,000,000 | 3,875,604 |
Glenville State College, Board of Governors, Revenue Bonds | | |
5.25%, due 6/1/47 | 3,750,000 | 3,328,176 |
Monongalia County Commission Excise Tax District, University Town Centre, Revenue Bonds | | |
Series A | | |
4.125%, due 6/1/43 (c) | 950,000 | 817,350 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
56 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
West Virginia (continued) |
Monongalia County Commission Excise Tax District, University Town Center, Revenue Bonds | | |
Series A | | |
5.50%, due 6/1/37 (c) | $ 4,000,000 | $ 4,070,225 |
West Virginia Hospital Finance Authority, Cabell Huntington Hospital Obligated Group, Revenue Bonds | | |
Series A, Insured: AGM-CR | | |
4.00%, due 1/1/37 | 4,825,000 | 4,553,504 |
Series A, Insured: AGM-CR | | |
4.00%, due 1/1/38 | 2,500,000 | 2,300,432 |
Series A, Insured: AGM-CR | | |
4.125%, due 1/1/47 | 13,200,000 | 11,224,395 |
| | 35,155,197 |
Wisconsin 2.2% |
Public Finance Authority, Wonderful Foundations Charter School, Revenue Bonds (c) | | |
Series B | | |
(zero coupon), due 1/1/60 | 70,900,000 | 5,078,929 |
Series A-1 | | |
5.00%, due 1/1/55 | 18,765,000 | 15,512,992 |
Public Finance Authority, Methodist University, Inc. (The), Revenue Bonds (c) | | |
4.00%, due 3/1/26 | 755,000 | 734,210 |
4.00%, due 3/1/30 | 950,000 | 876,549 |
Public Finance Authority, North Carolina Leadership Charter Academy, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 6/15/29 (c) | 235,000 | 227,374 |
Public Finance Authority, National Gypsum Co., Revenue Bonds | | |
4.00%, due 8/1/35 (a) | 4,000,000 | 3,569,646 |
Public Finance Authority, Roseman University of Health Sciences, Revenue Bonds | | |
4.00%, due 4/1/42 (c) | 900,000 | 801,147 |
4.00%, due 4/1/42 (c) | 100,000 | 107,142 |
4.00%, due 4/1/52 (c) | 3,000,000 | 2,495,891 |
5.00%, due 4/1/30 (c) | 100,000 | 106,435 |
5.00%, due 4/1/30 (c) | 600,000 | 620,681 |
5.00%, due 4/1/40 (c) | 300,000 | 304,433 |
| Principal Amount | Value |
|
Wisconsin (continued) |
Public Finance Authority, Roseman University of Health Sciences, Revenue Bonds (continued) | | |
5.00%, due 4/1/50 (c) | $ 100,000 | $ 110,293 |
5.00%, due 4/1/50 (c) | 1,400,000 | 1,379,930 |
5.875%, due 4/1/45 | 6,250,000 | 6,308,514 |
Public Finance Authority, Fellowship Senior Living Project, Revenue Bonds | | |
Series A | | |
4.00%, due 1/1/46 | 11,260,000 | 8,954,464 |
Series A | | |
4.00%, due 1/1/52 | 3,130,000 | 2,386,361 |
Public Finance Authority, Appalachian State University Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
4.00%, due 7/1/50 | 1,000,000 | 882,836 |
Series A, Insured: AGM | | |
4.00%, due 7/1/55 | 1,250,000 | 1,082,446 |
Series A, Insured: AGM | | |
4.00%, due 7/1/59 | 775,000 | 663,674 |
Public Finance Authority, UNC Health Southeastern, Revenue Bonds | | |
Series A | | |
4.00%, due 2/1/51 | 3,970,000 | 2,756,059 |
Public Finance Authority, Fargo-Moorhead Metropolitan Area Flood Risk Management Project, Revenue Bonds (a) | | |
4.00%, due 9/30/51 | 13,995,000 | 11,533,485 |
4.00%, due 3/31/56 | 8,965,000 | 7,223,845 |
Public Finance Authority, College Achieve Paterson Charter School Project, Revenue Bonds | | |
Series A | | |
4.00%, due 6/15/52 (c) | 1,565,000 | 1,190,689 |
Public Finance Authority, Appalachian Regional Healthcare System Obligated Group, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/56 | 2,250,000 | 1,611,261 |
Public Finance Authority, Givens Estates, Revenue Bonds | | |
4.00%, due 12/1/56 | 4,500,000 | 3,480,712 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
57
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Wisconsin (continued) |
Public Finance Authority, Ultimate Medical Academy Project, Revenue Bonds (c) | | |
Series A | | |
5.00%, due 10/1/24 | $ 2,200,000 | $ 2,199,450 |
Series A | | |
5.00%, due 10/1/28 | 1,000,000 | 1,023,392 |
Series A | | |
5.00%, due 10/1/29 | 2,000,000 | 2,059,117 |
Series A | | |
5.00%, due 10/1/34 | 1,090,000 | 1,116,413 |
Series A | | |
5.00%, due 10/1/39 | 16,300,000 | 16,383,687 |
Public Finance Authority, Bancroft NeuroHealth Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/36 (c) | 750,000 | 719,740 |
Public Finance Authority, Carmelite System, Inc. Obligated Group (The), Revenue Bonds | | |
5.00%, due 1/1/40 | 6,535,000 | 6,534,555 |
5.00%, due 1/1/45 | 560,000 | 542,432 |
Public Finance Authority, NC A&T Real Estate Foundation LLC Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/44 | 1,350,000 | 1,301,471 |
Series A | | |
5.00%, due 6/1/49 | 6,775,000 | 6,323,720 |
Series B | | |
5.00%, due 6/1/49 | 2,720,000 | 2,538,822 |
Public Finance Authority, Guilford College, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/48 | 1,950,000 | 1,702,742 |
5.50%, due 1/1/47 | 5,860,000 | 5,448,490 |
Public Finance Authority, Coral Academy of Science Las Vegas, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/48 | 2,000,000 | 1,851,826 |
Public Finance Authority, Wilson Preparatory Academy, Revenue Bonds | | |
Series A | | |
5.00%, due 6/15/49 (c) | 1,100,000 | 1,011,507 |
| Principal Amount | Value |
|
Wisconsin (continued) |
Public Finance Authority, College Achieve Central Charter School, Revenue Bonds | | |
Series A | | |
5.00%, due 6/15/51 (c) | $ 2,145,000 | $ 1,925,217 |
Public Finance Authority, Grand Hyatt San Antonio Hotel Acquisition Project, Revenue Bonds, Senior Lien | | |
Series A | | |
5.00%, due 2/1/52 | 4,000,000 | 3,921,720 |
Public Finance Authority, The Franklin School Of Innovation, Inc., Revenue Bonds | | |
5.00%, due 1/1/57 (c) | 3,200,000 | 2,598,655 |
Public Finance Authority, Nevada State College, Revenue Bonds (c) | | |
Series A | | |
5.00%, due 5/1/60 | 6,500,000 | 4,845,584 |
Series B | | |
9.00%, due 5/1/71 | 2,985,000 | 2,629,382 |
Public Finance Authority, CHF-Cullowhee, LLC - Western Carolina University Project, Revenue Bonds | | |
Series A | | |
5.25%, due 7/1/47 | 2,000,000 | 1,864,514 |
Public Finance Authority, CHF - Manoa LLC, Revenue Bonds, Senior Lien (c) | | |
Series A | | |
5.75%, due 7/1/53 | 3,950,000 | 4,158,704 |
Series A | | |
5.75%, due 7/1/63 | 20,150,000 | 21,064,044 |
Public Finance Authority, Lake Erie College Project, Revenue Bonds | | |
Series A | | |
5.875%, due 10/1/54 (c) | 2,000,000 | 1,331,071 |
Public Finance Authority, Irving Convention Center Hotel Project, Revenue Bonds | | |
Series A-2 | | |
7.00%, due 1/1/50 (c) | 12,440,000 | 13,177,229 |
Wisconsin Health & Educational Facilities Authority, HOPE Christian Schools, Revenue Bonds | | |
3.00%, due 12/1/31 | 505,000 | 430,970 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
58 | MainStay MacKay High Yield Municipal Bond Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Wisconsin (continued) |
Wisconsin Health & Educational Facilities Authority, Children's Hospital of Wisconsin Obligated Group, Revenue Bonds | | |
3.00%, due 8/15/52 | $ 2,000,000 | $ 1,421,996 |
Wisconsin Health & Educational Facilities Authority, Sauk-Prairie Memorial Hospital Inc. Obligated Group, Revenue Bonds | | |
Series A | | |
5.375%, due 2/1/48 | 3,200,000 | 2,916,313 |
| | 193,042,761 |
Wyoming 0.1% |
Sublette County Hospital District, Hospital Construction Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/15/26 | 11,933,000 | 11,844,335 |
Total Long-Term Municipal Bonds (Cost $8,263,298,926) | | 7,986,400,050 |
Short-Term Municipal Notes 5.0% |
California 2.2% |
California Health Facilities Financing Authority, Adventist Health System, Revenue Bonds | | |
Series B | | |
3.80%, due 3/1/41 (h) | 51,455,000 | 51,455,000 |
Los Angeles Department of Water & Power, Power System, Revenue Bonds | | |
Series C-1 | | |
3.85%, due 7/1/57 (h) | 44,900,000 | 44,900,000 |
Nuveen California AMT-Free Quality Municipal Income Fund | | |
Series A | | |
4.22%, due 10/1/47 (c)(h) | 43,000,000 | 43,000,000 |
Tender Option Bond Trust Receipts, Revenue Bonds (c)(h) | | |
4.05%, due 4/1/43 | 5,540,000 | 5,540,000 |
4.05%, due 4/1/43 | 4,777,000 | 4,777,000 |
4.05%, due 4/1/43 | 3,700,000 | 3,700,000 |
| Principal Amount | Value |
|
California (continued) |
University of California, Revenue Bonds | | |
Series BP-2 | | |
3.70%, due 5/15/48 (h) | $ 35,000,000 | $ 35,000,000 |
| | 188,372,000 |
Connecticut 0.3% |
Connecticut State Health & Educational Facilities Authority, Yale University, Revenue Bonds | | |
Series A-1 | | |
3.70%, due 7/1/42 (h) | 30,420,000 | 30,420,000 |
Florida 0.1% |
Rib Floater Trust Various States, Revenue Bonds | | |
Series 26 | | |
4.04%, due 10/1/44 (c)(h) | 5,390,000 | 5,390,000 |
Georgia 0.5% |
Bartow County Development Authority, Georgia Power Company Plant Bowen Project, Revenue Bonds | | |
Series 1 | | |
4.15%, due 11/1/62 (a)(h) | 23,640,000 | 23,640,000 |
Development Authority of Appling County, Georgia Power Co., Revenue Bonds | | |
4.15%, due 9/1/29 (h) | 6,400,000 | 6,400,000 |
Development Authority of Burke County (The), Georgia Power Co. Vogtle Project, Revenue Bonds, First Series | | |
Series 1 | | |
4.10%, due 7/1/49 (h) | 5,450,000 | 5,450,000 |
Development Authority of Floyd County, Georgia Power Co., Revenue Bonds | | |
4.15%, due 9/1/26 (h) | 4,680,000 | 4,680,000 |
| | 40,170,000 |
Illinois 0.5% |
Illinois Finance Authority, Northwestern Memorial Healthcare, Revenue Bonds | | |
Series C | | |
3.85%, due 7/15/55 (h) | 46,785,000 | 46,785,000 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
59
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Short-Term Municipal Notes (continued) |
Maryland 0.1% |
Rib Floater Trust Various States, Revenue Bonds | | |
Series 29 | | |
4.03%, due 1/1/45 (c)(h) | $ 5,150,000 | $ 5,150,000 |
Michigan 0.5% |
Michigan State Building Authority, Revenue Bonds | | |
Series I | | |
3.87%, due 4/15/58 (h) | 40,000,000 | 40,000,000 |
New York 0.0% ‡ |
Nuveen New York AMT-Free Quality Municipal Income Fund | | |
4.22%, due 5/1/47 (c)(h) | 5,000,000 | 5,000,000 |
South Carolina 0.1% |
Rib Floater Trust Various States, Revenue Bonds | | |
Series 19 | | |
3.96%, due 7/1/47 (c)(h) | 6,840,000 | 6,840,000 |
Texas 0.2% |
Harris County Cultural Education Facilities Finance Corp., Methodist Hospital, Revenue Bonds | | |
Series B | | |
3.75%, due 12/1/59 (h) | 17,040,000 | 17,040,000 |
Wisconsin 0.5% |
Appleton Redevelopment Authority, Fox Cities Performing Arts Center, Inc., Revenue Bonds | | |
Series B | | |
3.95%, due 6/1/36 (h) | 4,600,000 | 4,600,000 |
Nuveen AMT-Free Municipal Credit Income Fund | | |
Series B | | |
4.22%, due 3/1/29 (h) | 31,355,000 | 31,355,000 |
| Principal Amount | Value |
|
Wisconsin (continued) |
Nuveen AMT-Free Quality Municipal Income Fund | | |
Series D | | |
4.22%, due 3/1/29 (h) | $ 7,550,000 | $ 7,550,000 |
| | 43,505,000 |
Total Short-Term Municipal Notes (Cost $428,672,000) | | 428,672,000 |
Total Municipal Bonds (Cost $8,691,970,926) | | 8,415,072,050 |
|
Long-Term Bonds 0.2% |
Corporate Bonds 0.2% |
Commercial Services 0.1% |
Howard University | | |
Series 21A | | |
4.756%, due 10/1/51 | 5,200,000 | 3,952,462 |
Wildflower Improvement Association | | |
6.625%, due 3/1/31 (c) | 1,986,817 | 1,874,346 |
| | 5,826,808 |
Diversified Financial Services 0.0% ‡ |
Toll Road Investors Partnership II LP | | |
Series A | | |
(zero coupon), due 2/15/41 (c) | 20,000,000 | 5,161,342 |
Healthcare-Services 0.1% |
Toledo Hospital (The) | | |
6.015%, due 11/15/48 | 9,350,000 | 7,496,923 |
Total Corporate Bonds (Cost $19,176,026) | | 18,485,073 |
Total Long-Term Bonds (Cost $19,176,026) | | 18,485,073 |
|
| Shares | Value |
Closed-End Funds 0.7% |
California 0.0% ‡ |
BlackRock MuniHoldings California Quality Fund, Inc. | 73,110 | 778,622 |
Delaware 0.0% ‡ |
BlackRock MuniYield Fund, Inc. | 200,504 | 2,105,292 |
Illinois 0.0% ‡ |
BlackRock Municipal Income Trust II | 74,692 | 776,050 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
60 | MainStay MacKay High Yield Municipal Bond Fund |
| Shares | Value |
Closed-End Funds (continued) |
Illinois (continued) ‡ |
Nuveen Municipal Credit Income Fund | 295,291 | $ 3,451,952 |
| | 4,228,002 |
Massachusetts 0.1% |
BlackRock Municipal Income Fund, Inc. | 165,732 | 1,905,918 |
DWS Municipal Income Trust | 131,002 | 1,219,629 |
Eaton Vance Municipal Bond Fund | 63,400 | 630,196 |
Pioneer Municipal High Income Advantage Fund, Inc. | 200,399 | 1,565,116 |
Pioneer Municipal High Income Fund Trust | 200,954 | 1,706,099 |
| | 7,026,958 |
Michigan 0.0% ‡ |
BlackRock MuniYield Michigan Quality Fund, Inc. | 245,271 | 2,707,792 |
Multi-State 0.3% |
BlackRock Municipal 2030 Target Term Trust | 427,334 | 8,751,800 |
BlackRock Municipal Income Quality Trust | 18,136 | 197,682 |
BlackRock MuniHoldings Fund, Inc. | 324,601 | 3,716,682 |
BlackRock MuniYield Quality Fund II, Inc. | 588,091 | 5,769,173 |
BlackRock MuniYield Quality Fund, Inc. | 287,227 | 3,374,917 |
| | 21,810,254 |
New Jersey 0.1% |
BlackRock MuniHoldings New Jersey Quality Fund, Inc. | 384,935 | 4,272,778 |
New York 0.2% |
BlackRock Municipal Income Trust | 99,369 | 985,740 |
BlackRock MuniHoldings New York Quality Fund, Inc. | 525,108 | 5,382,357 |
BlackRock MuniVest Fund, Inc. | 192,425 | 1,312,339 |
BlackRock MuniYield New York Quality Fund, Inc. | 543,595 | 5,457,694 |
BlackRock New York Municipal Income Trust | 26,795 | 276,792 |
Nuveen AMT-Free Municipal Credit Income Fund | 206,260 | 2,382,303 |
| | 15,797,225 |
| Shares | | Value |
|
Pennsylvania 0.0% ‡ |
Invesco Pennsylvania Value Municipal Income Trust | 18,699 | | $ 185,307 |
Total Closed-End Funds (Cost $71,390,008) | | | 58,912,230 |
Short-Term Investment 1.0% |
Unaffiliated Investment Company 1.0% |
BlackRock Liquidity Funds MuniCash, 3.427% (i) | 88,100,105 | | 88,108,553 |
Total Short-Term Investment (Cost $88,108,553) | | | 88,108,553 |
Total Investments (Cost $8,870,645,513) | 98.9% | | 8,580,577,906 |
Other Assets, Less Liabilities | 1.1 | | 97,501,889 |
Net Assets | 100.0% | | $ 8,678,079,795 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
‡ | Less than one-tenth of a percent. |
(a) | Interest on these securities was subject to alternative minimum tax . |
(b) | Coupon rate may change based on changes of the underlying collateral or prepayments of principal. Rate shown was the rate in effect as of April 30, 2024. |
(c) | May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
(d) | Issue in default. |
(e) | Issue in non-accrual status. |
(f) | Step coupon—Rate shown was the rate in effect as of April 30, 2024. |
(g) | Illiquid security—As of April 30, 2024, the total market value deemed illiquid under procedures approved by the Board of Trustees was $54,245,673, which represented 0.6% of the Fund’s net assets. |
(h) | Variable-rate demand notes (VRDNs)—Provide the right to sell the security at face value on either that day or within the rate-reset period. VRDNs will normally trade as if the maturity is the earlier put date, even though stated maturity is longer. The interest rate is reset on the put date at a stipulated daily, weekly, monthly, quarterly, or other specified time interval to reflect current market conditions. These securities do not indicate a reference rate and spread in their description. The maturity date shown is the final maturity. |
(i) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
61
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Futures Contracts
As of April 30, 2024, the Fund held the following futures contracts1:
Type | Number of Contracts | Expiration Date | Value at Trade Date | Current Notional Amount | Unrealized Appreciation (Depreciation)2 |
Short Contracts | | | | | |
U.S. Treasury 10 Year Notes | (5,000) | June 2024 | $ (551,238,395) | $ (537,187,500) | $ 14,050,895 |
U.S. Treasury Long Bonds | (1,510) | June 2024 | (179,249,358) | (171,856,875) | 7,392,483 |
Net Unrealized Appreciation | | | | | $ 21,443,378 |
1. | As of April 30, 2024, cash in the amount of $16,514,000 was on deposit with a broker or futures commission merchant for futures transactions. |
2. | Represents the difference between the value of the contracts at the time they were opened and the value as of April 30, 2024. |
Abbreviation(s): |
AGC—Assured Guaranty Corp. |
AGM—Assured Guaranty Municipal Corp. |
AMBAC—Ambac Assurance Corp. |
BAM—Build America Mutual Assurance Co. |
CHF—Collegiate Housing Foundation |
CR—Custodial Receipts |
MUN GOVT GTD—Municipal Government Guaranteed |
NATL-RE—National Public Finance Guarantee Corp. |
PSF-GTD—Permanent School Fund Guaranteed |
SD CRED PROG—School District Credit Enhancement Program |
UT CSCE—Utah Charter School Credit Enhancement Program |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
62 | MainStay MacKay High Yield Municipal Bond Fund |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Municipal Bonds | | | | | | | |
Long-Term Municipal Bonds | $ — | | $ 7,986,400,050 | | $ — | | $ 7,986,400,050 |
Short-Term Municipal Notes | — | | 428,672,000 | | — | | 428,672,000 |
Total Municipal Bonds | — | | 8,415,072,050 | | — | | 8,415,072,050 |
Long-Term Bonds | | | | | | | |
Corporate Bonds | — | | 18,485,073 | | — | | 18,485,073 |
Total Corporate Bonds | — | | 18,485,073 | | — | | 18,485,073 |
Closed-End Funds | 58,912,230 | | — | | — | | 58,912,230 |
Short-Term Investment | | | | | | | |
Unaffiliated Investment Company | 88,108,553 | | — | | — | | 88,108,553 |
Total Investments in Securities | 147,020,783 | | 8,433,557,123 | | — | | 8,580,577,906 |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | 21,443,378 | | — | | — | | 21,443,378 |
Total Investments in Securities and Other Financial Instruments | $ 168,464,161 | | $ 8,433,557,123 | | $ — | | $ 8,602,021,284 |
(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 (depreciation) as shown on the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
63
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $8,870,645,513) | $ 8,580,577,906 |
Cash | 7,121 |
Cash collateral on deposit at broker for futures contracts | 16,514,000 |
Receivables: | |
Dividends and interest | 106,454,873 |
Fund shares sold | 22,781,419 |
Variation margin on futures contracts | 3,757,785 |
Investment securities sold | 1,890,506 |
Other assets | 334,894 |
Total assets | 8,732,318,504 |
Liabilities |
Payables: | |
Investment securities purchased | 25,007,037 |
Fund shares redeemed | 14,634,618 |
Manager (See Note 3) | 3,750,733 |
Transfer agent (See Note 3) | 776,861 |
NYLIFE Distributors (See Note 3) | 456,094 |
Professional fees | 168,082 |
Custodian | 118,088 |
Accrued expenses | 20,613 |
Distributions payable | 9,306,583 |
Total liabilities | 54,238,709 |
Net assets | $ 8,678,079,795 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 743,984 |
Additional paid-in-capital | 9,684,385,220 |
| 9,685,129,204 |
Total distributable earnings (loss) | (1,007,049,409) |
Net assets | $ 8,678,079,795 |
Class A | |
Net assets applicable to outstanding shares | $1,609,348,844 |
Shares of beneficial interest outstanding | 137,984,972 |
Net asset value per share outstanding | $ 11.66 |
Maximum sales charge (3.00% of offering price) | 0.36 |
Maximum offering price per share outstanding | $ 12.02 |
Investor Class | |
Net assets applicable to outstanding shares | $ 3,589,770 |
Shares of beneficial interest outstanding | 308,162 |
Net asset value per share outstanding | $ 11.65 |
Maximum sales charge (2.50% of offering price) | 0.30 |
Maximum offering price per share outstanding | $ 11.95 |
Class C | |
Net assets applicable to outstanding shares | $ 148,621,582 |
Shares of beneficial interest outstanding | 12,774,222 |
Net asset value and offering price per share outstanding | $ 11.63 |
Class I | |
Net assets applicable to outstanding shares | $5,679,191,259 |
Shares of beneficial interest outstanding | 486,817,523 |
Net asset value and offering price per share outstanding | $ 11.67 |
Class R6 | |
Net assets applicable to outstanding shares | $1,237,328,340 |
Shares of beneficial interest outstanding | 106,099,382 |
Net asset value and offering price per share outstanding | $ 11.66 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
64 | MainStay MacKay High Yield Municipal Bond Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $196,681,575 |
Dividends | 1,246,249 |
Total income | 197,927,824 |
Expenses | |
Manager (See Note 3) | 21,643,990 |
Distribution/Service—Class A (See Note 3) | 1,988,835 |
Distribution/Service—Investor Class (See Note 3) | 4,626 |
Distribution/Service—Class C (See Note 3) | 781,790 |
Transfer agent (See Note 3) | 2,290,284 |
Professional fees | 269,236 |
Registration | 127,469 |
Custodian | 116,729 |
Trustees | 96,287 |
Shareholder communication | 88,883 |
Miscellaneous | 149,464 |
Total expenses | 27,557,593 |
Net investment income (loss) | 170,370,231 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | (44,232,615) |
Futures transactions | 2,318,975 |
Net realized gain (loss) | (41,913,640) |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 763,007,349 |
Futures contracts | (10,957,375) |
Net change in unrealized appreciation (depreciation) | 752,049,974 |
Net realized and unrealized gain (loss) | 710,136,334 |
Net increase (decrease) in net assets resulting from operations | $880,506,565 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
65
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 170,370,231 | $ 319,656,054 |
Net realized gain (loss) | (41,913,640) | (271,722,197) |
Net change in unrealized appreciation (depreciation) | 752,049,974 | 269,451,421 |
Net increase (decrease) in net assets resulting from operations | 880,506,565 | 317,385,278 |
Distributions to shareholders: | | |
Class A | (32,153,514) | (71,226,979) |
Investor Class | (74,590) | (166,636) |
Class C | (2,568,149) | (6,208,135) |
Class I | (113,257,808) | (214,754,997) |
Class R6 | (24,559,115) | (40,495,808) |
Total distributions to shareholders | (172,613,176) | (332,852,555) |
Capital share transactions: | | |
Net proceeds from sales of shares | 2,258,663,569 | 4,134,959,360 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 120,965,358 | 233,389,061 |
Cost of shares redeemed | (1,603,410,857) | (4,856,892,832) |
Redemptions in-kind | — | (89,218,096) |
Increase (decrease) in net assets derived from capital share transactions | 776,218,070 | (577,762,507) |
Net increase (decrease) in net assets | 1,484,111,459 | (593,229,784) |
Net Assets |
Beginning of period | 7,193,968,336 | 7,787,198,120 |
End of period | $ 8,678,079,795 | $ 7,193,968,336 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
66 | MainStay MacKay High Yield Municipal Bond Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.60 | | $ 10.64 | | $ 13.49 | | $ 12.75 | | $ 12.98 | | $ 12.33 |
Net investment income (loss) | 0.23 | | 0.45(a) | | 0.36(a) | | 0.36(a) | | 0.40 | | 0.47 |
Net realized and unrealized gain (loss) | 1.06 | | (0.02) | | (2.81) | | 0.77 | | (0.20) | | 0.66 |
Total from investment operations | 1.29 | | 0.43 | | (2.45) | | 1.13 | | 0.20 | | 1.13 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.23) | | (0.47) | | (0.40) | | (0.39) | | (0.43) | | (0.47) |
From net realized gain on investments | — | | — | | — | | — | | (0.00)‡ | | (0.01) |
Total distributions | (0.23) | | (0.47) | | (0.40) | | (0.39) | | (0.43) | | (0.48) |
Net asset value at end of period | $ 11.66 | | $ 10.60 | | $ 10.64 | | $ 13.49 | | $ 12.75 | | $ 12.98 |
Total investment return (b) | 12.21% | | 3.81% | | (18.48)% | | 8.93% | | 1.60% | | 9.28% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.99%†† | | 3.92% | | 2.86% | | 2.66% | | 3.15% | | 3.69% |
Net expenses (c) | 0.87%†† | | 0.87% | | 0.86% | | 0.84% | | 0.86% | | 0.87% |
Portfolio turnover rate (d) | 9% | | 38%(e) | | 56%(e) | | 14% | | 37% | | 27% |
Net assets at end of period (in 000’s) | $ 1,609,349 | | $ 1,454,442 | | $ 1,751,791 | | $ 2,696,103 | | $ 2,073,226 | | $ 2,210,862 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
(e) | The portfolio turnover rate excludes in-kind transactions. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
67
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.59 | | $ 10.63 | | $ 13.47 | | $ 12.73 | | $ 12.96 | | $ 12.32 |
Net investment income (loss) | 0.23 | | 0.45(a) | | 0.36(a) | | 0.36(a) | | 0.40 | | 0.47 |
Net realized and unrealized gain (loss) | 1.06 | | (0.02) | | (2.80) | | 0.77 | | (0.20) | | 0.65 |
Total from investment operations | 1.29 | | 0.43 | | (2.44) | | 1.13 | | 0.20 | | 1.12 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.23) | | (0.47) | | (0.40) | | (0.39) | | (0.43) | | (0.47) |
From net realized gain on investments | — | | — | | — | | — | | (0.00)‡ | | (0.01) |
Total distributions | (0.23) | | (0.47) | | (0.40) | | (0.39) | | (0.43) | | (0.48) |
Net asset value at end of period | $ 11.65 | | $ 10.59 | | $ 10.63 | | $ 13.47 | | $ 12.73 | | $ 12.96 |
Total investment return (b) | 12.21% | | 3.89% | | (18.52)% | | 8.92% | | 1.59% | | 9.19% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.98%†† | | 3.91% | | 2.88% | | 2.69% | | 3.15% | | 3.69% |
Net expenses (c) | 0.89%†† | | 0.89% | | 0.87% | | 0.86% | | 0.87% | | 0.88% |
Portfolio turnover rate (d) | 9% | | 38%(e) | | 56%(e) | | 14% | | 37% | | 27% |
Net assets at end of period (in 000's) | $ 3,590 | | $ 3,560 | | $ 3,749 | | $ 5,107 | | $ 5,211 | | $ 5,449 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
(e) | The portfolio turnover rate excludes in-kind transactions. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
68 | MainStay MacKay High Yield Municipal Bond Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.58 | | $ 10.61 | | $ 13.46 | | $ 12.71 | | $ 12.95 | | $ 12.30 |
Net investment income (loss) | 0.19 | | 0.36(a) | | 0.26(a) | | 0.26(a) | | 0.29 | | 0.37 |
Net realized and unrealized gain (loss) | 1.05 | | (0.01) | | (2.80) | | 0.78 | | (0.20) | | 0.66 |
Total from investment operations | 1.24 | | 0.35 | | (2.54) | | 1.04 | | 0.09 | | 1.03 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.19) | | (0.38) | | (0.31) | | (0.29) | | (0.33) | | (0.37) |
From net realized gain on investments | — | | — | | — | | — | | (0.00)‡ | | (0.01) |
Total distributions | (0.19) | | (0.38) | | (0.31) | | (0.29) | | (0.33) | | (0.38) |
Net asset value at end of period | $ 11.63 | | $ 10.58 | | $ 10.61 | | $ 13.46 | | $ 12.71 | | $ 12.95 |
Total investment return (b) | 11.72% | | 3.12% | | (19.15)% | | 8.20% | | 0.75% | | 8.47% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.23%†† | | 3.17% | | 2.11% | | 1.95% | | 2.41% | | 2.94% |
Net expenses (c) | 1.64%†† | | 1.64% | | 1.62% | | 1.61% | | 1.62% | | 1.63% |
Portfolio turnover rate (d) | 9% | | 38%(e) | | 56%(e) | | 14% | | 37% | | 27% |
Net assets at end of period (in 000’s) | $ 148,622 | | $ 151,803 | | $ 202,196 | | $ 340,700 | | $ 355,498 | | $ 433,318 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
(e) | The portfolio turnover rate excludes in-kind transactions. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
69
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 10.60 | | $ 10.64 | | $ 13.49 | | $ 12.75 | | $ 12.98 | | $ 12.34 |
Net investment income (loss) | 0.25 | | 0.48(a) | | 0.39(a) | | 0.39(a) | | 0.45 | | 0.50 |
Net realized and unrealized gain (loss) | 1.07 | | (0.02) | | (2.81) | | 0.77 | | (0.22) | | 0.65 |
Total from investment operations | 1.32 | | 0.46 | | (2.42) | | 1.16 | | 0.23 | | 1.15 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.25) | | (0.50) | | (0.43) | | (0.42) | | (0.46) | | (0.50) |
From net realized gain on investments | — | | — | | — | | — | | (0.00)‡ | | (0.01) |
Total distributions | (0.25) | | (0.50) | | (0.43) | | (0.42) | | (0.46) | | (0.51) |
Net asset value at end of period | $ 11.67 | | $ 10.60 | | $ 10.64 | | $ 13.49 | | $ 12.75 | | $ 12.98 |
Total investment return (b) | 12.34% | | 4.16% | | (18.28)% | | 9.20% | | 1.86% | | 9.46% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 4.23%†† | | 4.17% | | 3.10% | | 2.90% | | 3.38% | | 3.93% |
Net expenses (c) | 0.61%†† | | 0.62% | | 0.60% | | 0.59% | | 0.61% | | 0.62% |
Portfolio turnover rate (d) | 9% | | 38%(e) | | 56%(e) | | 14% | | 37% | | 27% |
Net assets at end of period (in 000’s) | $ 5,679,191 | | $ 4,660,777 | | $ 4,904,132 | | $ 7,894,324 | | $ 6,063,243 | | $ 4,415,639 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
(e) | The portfolio turnover rate excludes in-kind transactions. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
70 | MainStay MacKay High Yield Municipal Bond Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | November 1, 2019^ through October 31, |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 10.60 | | $ 10.64 | | $ 13.49 | | $ 12.74 | | $ 12.98 |
Net investment income (loss) (a) | 0.25 | | 0.48 | | 0.40 | | 0.39 | | 0.43 |
Net realized and unrealized gain (loss) | 1.06 | | (0.02) | | (2.81) | | 0.79 | | (0.21) |
Total from investment operations | 1.31 | | 0.46 | | (2.41) | | 1.18 | | 0.22 |
Less distributions: | | | | | | | | | |
From net investment income | (0.25) | | (0.50) | | (0.44) | | (0.43) | | (0.46) |
From net realized gain on investments | — | | — | | — | | — | | (0.00)‡ |
Total distributions | (0.25) | | (0.50) | | (0.44) | | (0.43) | | (0.46) |
Net asset value at end of period | $ 11.66 | | $ 10.60 | | $ 10.64 | | $ 13.49 | | $ 12.74 |
Total investment return (b) | 12.38% | | 4.13% | | (18.23)% | | 9.34% | | 1.80% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 4.28%†† | | 4.23% | | 3.22% | | 2.91% | | 3.40% |
Net expenses (c) | 0.55%†† | | 0.56% | | 0.55% | | 0.54% | | 0.56% |
Portfolio turnover rate (d) | 9% | | 38%(e) | | 56%(e) | | 14% | | 37% |
Net assets at end of period (in 000’s) | $ 1,237,328 | | $ 923,386 | | $ 925,330 | | $ 1,240,412 | | $ 6,535 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
(e) | The portfolio turnover rate excludes in-kind transactions. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
71
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MacKay High Yield Municipal Bond Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | March 31, 2010 |
Investor Class | March 31, 2010 |
Class C | March 31, 2010 |
Class I | March 31, 2010 |
Class R6 | November 1, 2019 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. Class I and Class R6 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. The Fund’s secondary investment objective is total return.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that
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quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value.
Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. These securities are generally categorized as Level 1 in the hierarchy.
Municipal debt securities are valued at the evaluated mean prices supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent's good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants' assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar
Notes to Financial Statements (Unaudited) (continued)
assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Municipal debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Municipal debt securities are generally categorized as Level 2 in the hierarchy.
In calculating NAV, each closed-end fund is valued at market value, which will generally be determined using the last reported official closing or last trading price on the exchange or market on which the security is primarily traded at the time of valuation. Price information on closed-end funds is taken from the exchange where the security is primarily traded. In addition, because closed-end funds and exchange-traded funds trade on a secondary market, their shares may trade at a premium or discount to the actual net asset value of their portfolio securities and their shares may have greater volatility because of the potential lack of liquidity. These closed-end funds are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
A portfolio investment may be classified as an illiquid investment under the Trust's written liquidity risk management program and related procedures (“Liquidity Program”). Illiquidity of an investment might prevent the sale of such investment at a time when the Manager or the Subadvisor might wish to sell, and these investments could have the effect of decreasing the overall level of the Fund's liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid investments, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary materially from the amount that the Fund could realize upon disposition.
Difficulty in selling illiquid investments may result in a loss or may be costly to the Fund. An illiquid investment is any investment that the Manager or Subadvisor reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The liquidity classification of each investment will be made using information obtained after reasonable inquiry and taking into account, among other things, relevant market, trading and investment-specific considerations in accordance with the Liquidity Program. Illiquid investments are often fair valued in accordance with the Fund's procedures described above. The liquidity of the Fund's investments was determined as of April 30, 2024, and can change at any time.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 dividends from net investment income, if any, daily and intends to pay them at least monthly and declares and pays distributions from net realized capital gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Discounts and premiums on securities purchased, other than temporary cash investments that mature in 60 days or less at the time of purchase, for the Fund are accreted and amortized, respectively, on the effective interest rate method.
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Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 risks such as market price risk, leverage risk, liquidity risk, counterparty risk, operational risk, legal risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation 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 or futures commission merchant 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. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. 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 the entire margin owed to the Fund, potentially resulting in a loss. The Fund may invest in futures contracts to seek enhanced returns or to reduce the risk of loss by hedging certain of its holdings. The Fund's investment in futures contracts and other derivatives may increase the volatility of the Fund's NAVs and may result in a loss to the Fund.
(H) Municipal Bond Risk. The Fund may invest more heavily in municipal bonds from certain cities, states, territories or regions than others, which may increase the Fund’s exposure to losses resulting from economic, political, regulatory occurrences, or declines in tax revenue impacting these particular cities, states, territories or regions. In addition, many state and municipal governments that issue securities are under significant economic and financial stress and may not be able to satisfy their obligations, and these events may be made worse due to current economic challenges. The Fund may invest a substantial amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects, such as tobacco settlement bonds. If the Fund concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and this may have a significant impact on the Fund’s investment performance.
Certain of the issuers in which the Fund may invest have recently experienced, or may experience, significant financial difficulties and repeated credit rating downgrades. On May 3, 2017, the Commonwealth of Puerto Rico (the "Commonwealth") began proceedings pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) to seek bankruptcy-type protections from approximately $74 billion in debt and approximately $48 billion in unfunded pension obligations. In addition, the current economic environment and the resulting pressure on Puerto Rico’s budget have further contributed to its
Notes to Financial Statements (Unaudited) (continued)
financial challenges. Following the outbreak of COVID-19, the federal government passed certain relief packages, including the Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan, which included an aggregate of more than $7 billion in disaster relief funds for the U.S. territories, including Puerto Rico. However, there can be no assurances that the federal funds allocated to the Commonwealth will be sufficient to address the long-term economic challenges that arose from COVID-19.
As of October 31, 2023, Puerto Rico Electric Power Authority ("PREPA") has remained in Title III Bankruptcy for over 6 years. A significant number of net revenue bond creditors, the Oversight Board, and the Commonwealth have been unable to reach a consensual resolution on PREPA’s debt restructuring following the termination of the previous 2019 PREPA Restructuring Support Agreement by the Commonwealth of Puerto Rico in March of 2022. On December 16, 2022, the Oversight Board filed a proposed plan of adjustment to restructure more than $10 billion of debt and other claims against PREPA. The plan of adjustment, amended in March, proposed to cut PREPA’s unsustainable debt to approximately $5.68 billion.
Bankruptcy litigation has ensued between the Oversight Board and a group of net revenue bond creditors over the security provisions of PREPA’s $8.3 billion of net revenue bonds resulting in a ruling in March that PREPA’s net revenue bonds are unsecured.
In June of 2023, a claims estimation hearing resulted in a ruling that PREPA’s now asserted unsecured net revenue bond claim was valued at approximately 2.383 billion, which is only 28.3% of the full prepetition claim asserted by net revenue bond holders. Due to the lower claims estimation ruling, at the end of August 2023 the Oversight Board filed a new proposed plan of adjustment to reflect the March lien ruling and June estimation hearing with lower recovery amounts afforded to net revenue bond holders. In conjunction with the new proposed plan of adjustment, a subset of the original litigating PREPA creditors entered into Planned Support Agreements (”PSAs”) supporting the new proposed plan of adjustment.
However, following the new proposed plan of adjustment, a significant amount of creditors not previously involved in the PREPA bankruptcy have objected to the revised plan of adjustment, including the MainStay MacKay Municipal Bond Funds.
Objecting creditors are appealing several rulings, including the March net revenue bond lien ruling, the June net revenue bond claims estimation ruling, and the November disclosure statement approval ruling that provides for a plan with disparate recoveries for the same creditors. Objecting creditors believe the PREPA bankruptcy plan of adjustment is unconfirmable and these rulings will be overturned on appeal, but there is no certainty that objecting creditors will be successful in appealing these rulings, or if overturned, these creditors will receive the relief sought. The proposed PREPA August plan of adjustment provides 3.5% of cash recovery for objecting creditors to the plan as opposed to 12.5% of cash recovery for consenting creditors who have not previously settled.
Bankruptcy plan confirmation hearings were held in March of 2024 though at the end of May 2024 Judge Swain has not yet ruled on the confirmability of the plan. Furthermore, as of the end of May 2024, the First Circuit has yet to rule on the appeal of the lien and recourse challenges brought by objecting creditors. It is unclear what impact if any the 1st Circuit rulings will have on plan confirmation and/or whether any appellate rulings will occur prior to the approval of any plan confirmation by Judge Swain.
The Fund’s vulnerability to potential losses associated with such developments may be reduced through investing in municipal securities that feature credit enhancements (such as bond insurance). The bond insurance provider pays both principal and interest when due to the bond holder. The magnitude of Puerto Rico’s debt restructuring or other adverse economic developments could pose significant strains on the ability of municipal securities insurers to meet all future claims. As of April 30, 2024, the Fund's total Puerto Rico investments is 6.4% of total investments, with 9.6% of that amount insured.
(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 that may 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. The Manager believes 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.
(J) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures related to 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.
The Fund entered into futures contracts to help manage the duration and yield curve positioning of the portfolio. These derivatives are not accounted for as hedging instruments.
Fair value of derivative instruments as of April 30, 2024:
Asset Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized appreciation on futures contracts (a) | $21,443,378 | $21,443,378 |
Total Fair Value | $21,443,378 | $21,443,378 |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
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The effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2024:
Net Realized Gain (Loss) from: | Interest Rate Contracts Risk | Total |
Futures Transactions | $2,318,975 | $2,318,975 |
Total Net Realized Gain (Loss) | $2,318,975 | $2,318,975 |
Net Change in Unrealized Appreciation (Depreciation) | Interest Rate Contracts Risk | Total |
Futures Contracts | $(10,957,375) | $(10,957,375) |
Total Net Change in Unrealized Appreciation (Depreciation) | $(10,957,375) | $(10,957,375) |
Average Notional Amount | Total |
Futures Contracts Short | $(733,572,969) |
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 Fund's Manager, pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC ("MacKay Shields" or the "Subadvisor"), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund's average daily net assets as follows: 0.55% up to $1 billion; 0.54% from $1 billion to $3 billion; 0.53% from $3 billion to $5 billion; 0.52% from $5 billion to $7 billion; 0.51% from $7 billion to $9 billion; 0.50% from $9 billion to $11 billion; 0.49% from $11 billion to $13 billion and 0.48% in excess of $13 billion. During the six-month period ended April 30, 2024, the effective management fee rate was
0.53% of the Fund's average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) of Class A shares do not exceed 0.875% 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 Investor Class, Class C and Class I shares. New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) of Class R6 do not exceed those of Class I. These agreements will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $21,643,990 and paid the Subadvisor fees in the amount of $10,821,964.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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
Notes to Financial Statements (Unaudited) (continued)
an annual rate of 0.25% of the average daily net assets of the Class C shares, for a total 12b-1 fee of 1.00%. Class I and Class R6 shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $20,899 and $142, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $60,522 and $3,085, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 508,745 | $— |
Investor Class | 1,558 | — |
Class C | 65,793 | — |
Class I | 1,691,531 | — |
Class R6 | 22,657 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations.
This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
‡ | Less than one-tenth of a percent. |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $8,924,907,431 | $162,938,519 | $(507,268,044) | $(344,329,525) |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $647,816,076, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $261,454 | $386,362 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $ 25,235,436 |
Exempt Interest Dividends | 307,617,119 |
Total | $332,852,555 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
78 | MainStay MacKay High Yield Municipal Bond Fund |
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $1,363,435 and $694,301, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 17,549,072 | $ 204,182,664 |
Shares issued to shareholders in reinvestment of distributions | 2,319,944 | 27,287,802 |
Shares redeemed | (19,057,141) | (221,858,452) |
Net increase (decrease) in shares outstanding before conversion | 811,875 | 9,612,014 |
Shares converted into Class A (See Note 1) | 171,806 | 2,011,920 |
Shares converted from Class A (See Note 1) | (177,068) | (2,072,142) |
Net increase (decrease) | 806,613 | $ 9,551,792 |
Year ended October 31, 2023: | | |
Shares sold | 44,419,061 | $ 500,172,378 |
Shares issued to shareholders in reinvestment of distributions | 5,332,267 | 60,512,994 |
Shares redeemed | (70,976,284) | (796,386,385) |
Shares redeemed in connection with in-kind transactions | (8,037,956) | (89,218,096) |
Net increase (decrease) in shares outstanding before conversion | (29,262,912) | (324,919,109) |
Shares converted into Class A (See Note 1) | 2,430,861 | 27,933,257 |
Shares converted from Class A (See Note 1) | (664,723) | (7,558,233) |
Net increase (decrease) | (27,496,774) | $ (304,544,085) |
|
Notes to Financial Statements (Unaudited) (continued)
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 14,004 | $ 163,655 |
Shares issued to shareholders in reinvestment of distributions | 6,222 | 73,072 |
Shares redeemed | (36,627) | (426,375) |
Net increase (decrease) in shares outstanding before conversion | (16,401) | (189,648) |
Shares converted into Investor Class (See Note 1) | 11,086 | 129,806 |
Shares converted from Investor Class (See Note 1) | (22,708) | (267,399) |
Net increase (decrease) | (28,023) | $ (327,241) |
Year ended October 31, 2023: | | |
Shares sold | 101,216 | $ 1,155,142 |
Shares issued to shareholders in reinvestment of distributions | 14,253 | 161,537 |
Shares redeemed | (65,132) | (738,349) |
Net increase (decrease) in shares outstanding before conversion | 50,337 | 578,330 |
Shares converted into Investor Class (See Note 1) | 21,529 | 245,660 |
Shares converted from Investor Class (See Note 1) | (88,480) | (1,018,535) |
Net increase (decrease) | (16,614) | $ (194,545) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,111,698 | $ 12,947,108 |
Shares issued to shareholders in reinvestment of distributions | 193,511 | 2,270,089 |
Shares redeemed | (2,786,936) | (32,418,393) |
Net increase (decrease) in shares outstanding before conversion | (1,481,727) | (17,201,196) |
Shares converted from Class C (See Note 1) | (96,902) | (1,132,994) |
Net increase (decrease) | (1,578,629) | $ (18,334,190) |
Year ended October 31, 2023: | | |
Shares sold | 2,115,239 | $ 24,106,172 |
Shares issued to shareholders in reinvestment of distributions | 474,069 | 5,367,827 |
Shares redeemed | (7,121,896) | (80,657,074) |
Net increase (decrease) in shares outstanding before conversion | (4,532,588) | (51,183,075) |
Shares converted from Class C (See Note 1) | (168,556) | (1,929,338) |
Net increase (decrease) | (4,701,144) | $ (53,112,413) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 140,393,181 | $ 1,633,584,861 |
Shares issued to shareholders in reinvestment of distributions | 7,575,337 | 89,137,563 |
Shares redeemed | (99,171,810) | (1,143,291,202) |
Net increase (decrease) in shares outstanding before conversion | 48,796,708 | 579,431,222 |
Shares converted into Class I (See Note 1) | 394,487 | 4,623,406 |
Shares converted from Class I (See Note 1) | (1,862,812) | (21,508,365) |
Net increase (decrease) | 47,328,383 | $ 562,546,263 |
Year ended October 31, 2023: | | |
Shares sold | 258,846,677 | $ 2,948,360,609 |
Shares issued to shareholders in reinvestment of distributions | 14,527,416 | 164,719,241 |
Shares redeemed | (295,278,805) | (3,341,003,833) |
Net increase (decrease) in shares outstanding before conversion | (21,904,712) | (227,923,983) |
Shares converted into Class I (See Note 1) | 654,893 | 7,441,967 |
Shares converted from Class I (See Note 1) | (162,850) | (1,844,711) |
Net increase (decrease) | (21,412,669) | $ (222,326,727) |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 35,047,391 | $ 407,785,281 |
Shares issued to shareholders in reinvestment of distributions | 186,683 | 2,196,832 |
Shares redeemed | (17,815,016) | (205,416,435) |
Net increase (decrease) in shares outstanding before conversion | 17,419,058 | 204,565,678 |
Shares converted into Class R6 (See Note 1) | 1,784,041 | 20,587,839 |
Shares converted from Class R6 (See Note 1) | (202,223) | (2,372,071) |
Net increase (decrease) | 19,000,876 | $ 222,781,446 |
Year ended October 31, 2023: | | |
Shares sold | 58,388,901 | $ 661,165,059 |
Shares issued to shareholders in reinvestment of distributions | 232,472 | 2,627,462 |
Shares redeemed | (56,487,831) | (638,107,191) |
Net increase (decrease) in shares outstanding before conversion | 2,133,542 | 25,685,330 |
Shares converted into Class R6 (See Note 1) | 124,218 | 1,435,145 |
Shares converted from Class R6 (See Note 1) | (2,147,545) | (24,705,212) |
Net increase (decrease) | 110,215 | $ 2,415,263 |
80 | MainStay MacKay High Yield Municipal Bond Fund |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay MacKay 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and MacKay in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and MacKay in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or MacKay that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, MacKay personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and MacKay; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and MacKay; (iii) the costs of the services provided, and profits realized, by New York Life Investments and MacKay with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
82 | MainStay MacKay High Yield Municipal Bond Fund |
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and MacKay. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and MacKay resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and MacKay
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by MacKay, evaluating the performance of MacKay, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of MacKay and ongoing analysis of, and interactions with, MacKay with respect to, among other things, the Fund’s investment performance and risks as well as MacKay’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that MacKay provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated MacKay’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and MacKay’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at MacKay. The Board considered New York Life Investments’ and MacKay’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and MacKay and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered MacKay’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and MacKay regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of MacKay and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and MacKay
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because MacKay is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and MacKay in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and MacKay, and profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including MacKay’s, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and MacKay and acknowledged that New York Life Investments and MacKay must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial
position for New York Life Investments and MacKay to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to MacKay from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to MacKay in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
84 | MainStay MacKay High Yield Municipal Bond Fund |
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including MacKay, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to MacKay is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and MacKay on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds. The Board considered its discussions with representatives from New York Life Investments regarding the management fee paid by the Fund.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account
information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
86 | MainStay MacKay High Yield Municipal Bond Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
88 | MainStay MacKay High Yield Municipal Bond Fund |
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022164 MS081-24 | MSMHY10-06/24 |
(NYLIM) NL243
MainStay MacKay New York Tax Free Opportunities Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 3.00% Initial Sales Charge | With sales charges | 5/14/2012 | 6.59% | 0.39% | 0.20% | 2.38% | 0.76% |
| | Excluding sales charges | | 9.89 | 3.50 | 1.13 | 2.86 | 0.76 |
Investor Class Shares4, 5 | Maximum 2.50% Initial Sales Charge | With sales charges | 5/14/2012 | 7.13 | 0.89 | 0.17 | 2.35 | 0.78 |
| | Excluding sales charges | | 9.87 | 3.47 | 1.10 | 2.82 | 0.78 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 5/14/2012 | 8.74 | 2.22 | 0.86 | 2.56 | 1.03 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 9.74 | 3.21 | 0.86 | 2.56 | 1.03 |
Class C2 Shares | Maximum 1.00% CDSC | With sales charges | 8/31/2020 | 8.54 | 1.96 | N/A | -0.60 | 1.18 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 9.54 | 2.95 | N/A | -0.60 | 1.18 |
Class I Shares | No Sales Charge | | 5/14/2012 | 10.02 | 3.65 | 1.36 | 3.10 | 0.51 |
Class R6 Shares | No Sales Charge | | 11/1/2019 | 9.92 | 3.67 | N/A | 0.73 | 0.48 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to August 10, 2022, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
5. | Prior to August 10, 2022, the maximum initial sales charge was 4.00%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg Municipal Bond Index2 | 7.06% | 2.08% | 1.26% | 2.41% |
Bloomberg New York Municipal Bond Index3 | 7.45 | 2.12 | 1.16 | 2.32 |
Morningstar Muni New York Long Category Average4 | 9.56 | 2.82 | 0.91 | 2.28 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg Municipal Bond Index, which represents a broad measure of market performance, as a replacement for the Bloomberg New York Municipal Bond Index. The Bloomberg Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year. Bonds subject to the alternative minimum tax or with floating or zero coupons are excluded. |
3. | The Bloomberg New York Municipal Bond Index, which is generally representative of the market sectors or types of investments in which the Fund invests, is a market value-weighted index of New York investment grade tax exempt fixed-rate municipal bonds with maturities of one year or more. |
4. | The Morningstar Muni New York Long Category Average is representative of funds that invest at least 80% of assets in New York municipal debt. These funds have durations of more than 7.0 years. Results are based on average total returns of similar funds with all dividends 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 MacKay New York Tax Free Opportunities Fund |
Cost in Dollars of a $1,000 Investment in MainStay MacKay New York Tax Free Opportunities Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,098.90 | $3.91 | $1,021.13 | $3.77 | 0.75% |
Investor Class Shares | $1,000.00 | $1,098.70 | $4.07 | $1,020.98 | $3.92 | 0.78% |
Class C Shares | $1,000.00 | $1,097.40 | $5.37 | $1,019.74 | $5.17 | 1.03% |
Class C2 Shares | $1,000.00 | $1,095.40 | $6.15 | $1,019.00 | $5.92 | 1.18% |
Class I Shares | $1,000.00 | $1,100.20 | $2.61 | $1,022.38 | $2.51 | 0.50% |
Class R6 Shares | $1,000.00 | $1,099.20 | $2.51 | $1,022.48 | $2.41 | 0.48% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
Other Revenue | 39.4% |
Education | 15.3 |
Transportation | 13.0 |
General Obligation | 9.8 |
Water & Sewer | 8.9 |
Hospital | 5.8 |
Utilities | 3.1 |
General | 1.3 |
Housing | 0.8% |
Certificate of Participation/Lease | 0.1 |
Closed–End Funds | 0.1 |
Short–Term Investment | 1.2 |
Other Assets, Less Liabilities | 1.2 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | New York State Dormitory Authority, 3.00%-5.50%, due 10/1/30–7/1/54 |
2. | Triborough Bridge & Tunnel Authority, 2.00%-5.50%, due 11/15/35–5/15/63 |
3. | New York City Transitional Finance Authority, 1.58%-5.50%, due 5/1/24–5/1/47 |
4. | New York City Municipal Water Finance Authority, 3.90%-5.25%, due 6/15/33–6/15/52 |
5. | New York Transportation Development Corp., 4.00%-6.00%, due 12/1/29–6/30/60 |
6. | Build NYC Resource Corp., 4.00%-5.50%, due 7/1/30–6/15/63 |
7. | City of New York, 4.00%-5.25%, due 12/1/33–4/1/47 |
8. | Battery Park City Authority, 4.00%-5.00%, due 11/1/44–11/1/53 |
9. | Metropolitan Transportation Authority, (zero coupon)-5.00%, due 11/15/29–11/15/52 |
10. | New York City Industrial Development Agency, (zero coupon)-5.00%, due 7/1/28–3/1/49 |
8 | MainStay MacKay New York Tax Free Opportunities Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Municipal Bonds 97.5% |
Long-Term Municipal Bonds 95.2% |
Certificate of Participation/Lease 0.1% |
Rensselaer City School District, Certificate of Participation | | |
Insured: AGM State Aid Withholding | | |
4.00%, due 6/1/34 | $ 650,000 | $ 648,993 |
Insured: AGM State Aid Withholding | | |
4.00%, due 6/1/35 | 850,000 | 850,788 |
| | 1,499,781 |
Education 15.3% |
Albany Capital Resource Corp., Albany College of Pharmacy and Health Sciences, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/33 | 150,000 | 150,537 |
Albany Capital Resource Corp., Albany Leadership Charter High School For Girls Project, Revenue Bonds | | |
5.00%, due 6/1/49 | 2,380,000 | 1,976,793 |
Albany Capital Resource Corp., Brighter Choice Elementary Charter Schools, Revenue Bonds | | |
Series A | | |
4.00%, due 4/1/37 | 2,065,000 | 1,816,171 |
Albany Capital Resource Corp., Equitable School Revolving Fund LLC, Revenue Bonds | | |
Series D | | |
4.00%, due 11/1/46 | 3,000,000 | 2,802,042 |
Amherst Development Corp., Daemen College Project, Revenue Bonds | | |
4.00%, due 10/1/37 | 1,000,000 | 880,270 |
5.00%, due 10/1/43 | 2,000,000 | 1,878,763 |
5.00%, due 10/1/48 | 2,000,000 | 1,823,807 |
Buffalo & Erie County Industrial Land Development Corp., D'Youville College Project, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/40 | 1,785,000 | 1,523,229 |
Series A | | |
4.00%, due 11/1/45 | 6,300,000 | 5,071,141 |
Series A | | |
4.00%, due 11/1/50 | 1,000,000 | 774,530 |
| Principal Amount | Value |
|
Education (continued) |
Buffalo & Erie County Industrial Land Development Corp., Tapestry Charter School Project, Revenue Bonds | | |
Series A | | |
5.00%, due 8/1/47 | $ 1,500,000 | $ 1,405,762 |
Series A | | |
5.00%, due 8/1/52 | 3,995,000 | 3,693,787 |
Build NYC Resource Corp., Brilla College Preparatory Charter Schools, Revenue Bonds (a) | | |
Series A | | |
4.00%, due 11/1/41 | 1,000,000 | 840,696 |
Series A | | |
4.00%, due 11/1/51 | 1,000,000 | 771,081 |
Build NYC Resource Corp., Children's Aid Society Project, Revenue Bonds | | |
5.00%, due 7/1/45 | 1,120,000 | 1,123,386 |
Build NYC Resource Corp., Grand Concourse Academy Charter School Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/42 | 600,000 | 601,792 |
Series A | | |
5.00%, due 7/1/56 | 550,000 | 522,791 |
Build NYC Resource Corp., Inwood Academy Leadership Charter School Project, Revenue Bonds (a) | | |
Series A | | |
5.125%, due 5/1/38 | 1,150,000 | 1,141,497 |
Series A | | |
5.50%, due 5/1/48 | 1,500,000 | 1,502,658 |
Build NYC Resource Corp., Kipp NYC Public Charter Schools, Revenue Bonds | | |
5.00%, due 7/1/42 | 1,000,000 | 1,025,406 |
5.25%, due 7/1/52 | 10,000,000 | 10,203,809 |
Build NYC Resource Corp., Manhattan College Project, Revenue Bonds | | |
4.00%, due 8/1/42 | 1,500,000 | 1,326,360 |
Build NYC Resource Corp., Metropolitan College of New York, Revenue Bonds | | |
5.50%, due 11/1/44 | 2,500,000 | 1,500,000 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Education (continued) |
Build NYC Resource Corp., Metropolitan Lighthouse Charter School Project, Revenue Bonds (a) | | |
Series A | | |
5.00%, due 6/1/32 | $ 1,000,000 | $ 1,013,572 |
Series A | | |
5.00%, due 6/1/37 | 1,500,000 | 1,508,463 |
Series A | | |
5.00%, due 6/1/47 | 3,100,000 | 2,991,616 |
Build NYC Resource Corp., New World Preparatory Charter School Project, Revenue Bonds (a) | | |
Series A | | |
4.00%, due 6/15/51 | 1,200,000 | 922,721 |
Series A | | |
4.00%, due 6/15/56 | 1,640,000 | 1,223,508 |
Build NYC Resource Corp., New York Law School Project, Revenue Bonds | | |
5.00%, due 7/1/30 | 3,865,000 | 3,891,211 |
5.00%, due 7/1/33 | 1,520,000 | 1,528,326 |
Build NYC Resource Corp., Shefa School Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/15/51 (a) | 2,500,000 | 2,288,634 |
Build NYC Resource Corp., Unity Preparatory Charter School of Brooklyn, Revenue Bonds | | |
Series A | | |
5.50%, due 6/15/63 (a) | 1,375,000 | 1,340,414 |
City of New Rochelle, IONA College Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/45 | 3,810,000 | 3,766,927 |
County of Cattaraugus, St. Bonaventure University Project, Revenue Bonds | | |
Series A | | |
5.00%, due 5/1/44 | 1,200,000 | 1,200,565 |
Dutchess County Local Development Corp., Bard College Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/40 | 1,100,000 | 1,122,177 |
Series A | | |
5.00%, due 7/1/45 | 3,500,000 | 3,522,391 |
| Principal Amount | Value |
|
Education (continued) |
Dutchess County Local Development Corp., Culinary Institute of America Project (The), Revenue Bonds | | |
Series A-1 | | |
5.00%, due 7/1/31 | $ 375,000 | $ 383,103 |
Series A-1 | | |
5.00%, due 7/1/33 | 700,000 | 712,588 |
Dutchess County Local Development Corp., Marist College, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/40 | 4,500,000 | 4,537,202 |
Dutchess County Local Development Corp., Marist College Project, Revenue Bonds | | |
5.00%, due 7/1/48 | 6,000,000 | 6,159,182 |
Dutchess County Local Development Corp., Vassar College Project, Revenue Bonds | | |
5.00%, due 7/1/45 | 1,200,000 | 1,252,525 |
Hempstead Town Local Development Corp., Academy Charter School, Revenue Bonds | | |
Series A | | |
5.53%, due 2/1/40 | 1,100,000 | 1,033,833 |
Hempstead Town Local Development Corp., Evergreen Charter School, Inc., Revenue Bonds | | |
Series A | | |
5.25%, due 6/15/52 | 5,000,000 | 4,913,130 |
Hempstead Town Local Development Corp., Molloy College Project, Revenue Bonds | | |
5.00%, due 7/1/38 | 870,000 | 878,283 |
5.00%, due 7/1/43 | 1,020,000 | 1,020,612 |
5.00%, due 7/1/48 | 1,100,000 | 1,072,737 |
Monroe County Industrial Development Corp., Nazareth College of Rochester, Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/47 | 1,695,000 | 1,426,671 |
Monroe County Industrial Development Corp., St. John Fisher College, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/24 | 330,000 | 330,159 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay MacKay New York Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Education (continued) |
Monroe County Industrial Development Corp., University of Rochester Project, Revenue Bonds | | |
Series C | | |
4.00%, due 7/1/43 | $ 3,000,000 | $ 2,941,213 |
Nassau County Local Economic Assistance Corp., Roosevelt Children's Academy Charter School, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/55 | 2,750,000 | 2,587,782 |
New York State Dormitory Authority, Revenue Bonds | | |
Series A, Insured: State Aid Withholding | | |
5.00%, due 10/1/30 | 3,075,000 | 3,235,564 |
New York State Dormitory Authority, Brooklyn Law School, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/33 | 1,650,000 | 1,734,057 |
New York State Dormitory Authority, Cornell University, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/50 | 3,245,000 | 3,414,866 |
Series A | | |
5.50%, due 7/1/54 | 21,000,000 | 23,603,809 |
New York State Dormitory Authority, Fordham University, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/41 | 1,075,000 | 1,098,640 |
New York State Dormitory Authority, Friends of The Bay Shore-Brightwaters Public Library, Inc., Revenue Bonds | | |
Insured: AMBAC | | |
4.625%, due 7/1/36 | 200,000 | 200,031 |
New York State Dormitory Authority, Iona College, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/51 | 1,850,000 | 1,772,370 |
New York State Dormitory Authority, New School (The), Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/35 | 15,000 | 15,248 |
| Principal Amount | Value |
|
Education (continued) |
New York State Dormitory Authority, New School (The), Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 7/1/35 | $ 195,000 | $ 196,829 |
New York State Dormitory Authority, New York University, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/46 | 4,370,000 | 4,284,245 |
Series A | | |
5.00%, due 7/1/38 | 4,580,000 | 4,850,460 |
New York State Dormitory Authority, Pace University, Revenue Bonds | | |
Series A | | |
4.00%, due 5/1/33 | 400,000 | 377,422 |
Series A | | |
4.25%, due 5/1/42 | 450,000 | 388,473 |
New York State Dormitory Authority, Rockefeller University, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/50 | 4,000,000 | 4,156,100 |
New York State Dormitory Authority, School Districts Financing Program, Revenue Bonds | | |
Series A, Insured: AGM State Aid Withholding | | |
5.00%, due 10/1/43 | 500,000 | 537,659 |
Series A, Insured: AGM State Aid Withholding | | |
5.25%, due 10/1/50 | 5,000,000 | 5,374,079 |
New York State Dormitory Authority, St. John's University, Revenue Bonds | | |
5.00%, due 7/1/38 | 5,740,000 | 6,392,938 |
New York State Dormitory Authority, St. Joseph's College, Revenue Bonds | | |
4.00%, due 7/1/40 | 200,000 | 168,721 |
Oneida County Local Development Corp., Utica College Project, Revenue Bonds | | |
5.00%, due 7/1/49 | 3,250,000 | 3,071,157 |
Onondaga County Trust for Cultural Resources, Syracuse University Project, Revenue Bonds | | |
4.00%, due 12/1/49 | 3,080,000 | 2,942,370 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Education (continued) |
Orange County Funding Corp., Mount St. Mary College, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/42 | $ 1,010,000 | $ 922,896 |
Riverhead Industrial Development Agency, Riverhead Charter School, Revenue Bonds | | |
Series A | | |
7.00%, due 8/1/43 | 925,000 | 926,764 |
Series 2013A | | |
7.00%, due 8/1/48 | 730,000 | 731,321 |
Saratoga County Capital Resource Corp., Skidmore College, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/45 | 1,220,000 | 1,286,394 |
Schenectady County Capital Resource Corp., Union College Project, Revenue Bonds | | |
5.25%, due 7/1/52 | 1,000,000 | 1,076,469 |
St. Lawrence County Industrial Development Agency, Clarkson University Project, Revenue Bonds | | |
5.00%, due 9/1/47 | 2,975,000 | 2,897,325 |
Syracuse Industrial Development Agency, Syracuse City School District Project, Revenue Bonds | | |
Series A, Insured: State Aid Withholding | | |
3.25%, due 5/1/34 | 1,000,000 | 927,007 |
Troy Capital Resource Corp., Rensselaer Polytechnic Institute, Revenue Bonds | | |
5.00%, due 8/1/32 | 1,000,000 | 1,019,700 |
Series A | | |
5.00%, due 9/1/39 | 2,000,000 | 2,115,487 |
Yonkers Economic Development Corp., Charter School of Educational Excellence Project, Revenue Bonds | | |
Series A | | |
4.00%, due 10/15/29 | 200,000 | 196,821 |
Series A | | |
5.00%, due 10/15/39 | 1,490,000 | 1,499,850 |
Series A | | |
5.00%, due 10/15/49 | 2,275,000 | 2,202,241 |
| Principal Amount | Value |
|
Education (continued) |
Yonkers Economic Development Corp., Charter School of Educational Excellence Project, Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 10/15/50 | $ 2,650,000 | $ 2,552,109 |
Yonkers Industrial Development Agency, New Community School Project, Revenue Bonds | | |
Insured: State Aid Withholding | | |
4.00%, due 5/1/51 | 3,500,000 | 3,205,982 |
| | 189,301,257 |
General 0.1% |
Commonwealth of Puerto Rico | | |
(zero coupon), due 11/1/51 | 2,075,991 | 1,248,190 |
General Obligation 9.8% |
City of Glens Falls, Public Improvement, Limited General Obligation | | |
Insured: AGM | | |
4.00%, due 1/15/31 | 500,000 | 504,454 |
Insured: AGM | | |
4.00%, due 1/15/32 | 315,000 | 317,583 |
Insured: AGM | | |
4.00%, due 1/15/33 | 250,000 | 251,858 |
City of Middletown, Limited General Obligation | | |
4.50%, due 8/23/24 | 5,000,000 | 5,007,958 |
City of New York, Unlimited General Obligation | | |
Series E-1 | | |
4.00%, due 4/1/45 | 5,000,000 | 4,843,079 |
Series F-1 | | |
5.00%, due 4/1/39 | 5,000,000 | 5,251,723 |
Series B-1 | | |
5.25%, due 10/1/41 | 2,500,000 | 2,780,127 |
Series D-1 | | |
5.25%, due 5/1/42 | 9,000,000 | 9,924,088 |
Series B-1 | | |
5.25%, due 10/1/43 | 3,000,000 | 3,305,653 |
Series E-1 | | |
5.25%, due 4/1/47 | 4,750,000 | 5,178,764 |
City of Newburgh, Limited General Obligation | | |
Series A, Insured: AGM | | |
3.50%, due 7/15/36 | 725,000 | 680,936 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay MacKay New York Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
General Obligation (continued) |
City of Ogdensburg, Public Improvement, Limited General Obligation | | |
5.50%, due 4/15/26 | $ 50,000 | $ 49,167 |
5.50%, due 4/15/28 | 55,000 | 53,258 |
City of Poughkeepsie, Public Improvement, Limited General Obligation | | |
5.00%, due 6/1/31 | 1,200,000 | 1,214,950 |
City of Yonkers, Limited General Obligation | | |
Series A, Insured: BAM | | |
4.00%, due 9/1/31 | 1,500,000 | 1,525,532 |
Series A, Insured: BAM | | |
4.00%, due 5/1/35 | 1,550,000 | 1,586,709 |
Series A, Insured: BAM | | |
4.00%, due 5/1/37 | 2,000,000 | 2,023,889 |
Commonwealth of Puerto Rico | | |
(zero coupon), due 11/1/43 | 5,297,136 | 3,158,418 |
Commonwealth of Puerto Rico, Unlimited General Obligation | | |
Series A-1 | | |
(zero coupon), due 7/1/33 | 1,351,801 | 886,972 |
Series A-1 | | |
4.00%, due 7/1/33 | 2,000,000 | 1,971,237 |
Series A-1 | | |
4.00%, due 7/1/35 | 5,029,180 | 4,878,909 |
Series A-1 | | |
5.625%, due 7/1/27 | 1,170,000 | 1,217,083 |
County of Clinton, Limited General Obligation | | |
Insured: AGM | | |
4.00%, due 6/1/38 (b) | 1,500,000 | 1,451,696 |
County of Nassau, Limited General Obligation | | |
Series B, Insured: AGM | | |
5.00%, due 4/1/44 | 4,870,000 | 5,168,170 |
County of Onondaga, Limited General Obligation | | |
3.00%, due 6/1/39 | 2,150,000 | 1,793,710 |
3.25%, due 4/15/34 | 1,250,000 | 1,211,387 |
County of Rockland, Various Purpose, Limited General Obligation | | |
Insured: AGM | | |
4.00%, due 5/1/44 | 915,000 | 894,939 |
| Principal Amount | Value |
|
General Obligation (continued) |
County of Suffolk, Public Improvement, Limited General Obligation | | |
Series B, Insured: AGM | | |
3.00%, due 10/15/32 | $ 5,480,000 | $ 5,201,673 |
Series A, Insured: AGM | | |
3.25%, due 6/1/36 | 715,000 | 661,647 |
Series A, Insured: AGM | | |
3.25%, due 6/1/37 | 725,000 | 653,636 |
Series A, Insured: BAM | | |
4.00%, due 4/1/33 | 2,190,000 | 2,217,794 |
Harrison Central School District, Unlimited General Obligation | | |
Insured: State Aid Withholding | | |
3.50%, due 3/15/44 | 1,015,000 | 900,793 |
Insured: State Aid Withholding | | |
3.50%, due 3/15/45 | 1,055,000 | 926,904 |
Insured: State Aid Withholding | | |
3.55%, due 3/15/47 | 1,130,000 | 974,637 |
Lackawanna City School District, Unlimited General Obligation | | |
Insured: BAM State Aid Withholding | | |
4.00%, due 6/15/32 | 745,000 | 749,090 |
Oswego City School District, Unlimited General Obligation | | |
Insured: State Aid Withholding | | |
4.75%, due 7/19/24 | 12,500,000 | 12,510,784 |
Poughkeepsie School District, New York School District Refunding, Unlimited General Obligation | | |
Insured: AGM State Aid Withholding | | |
3.00%, due 5/1/33 | 400,000 | 380,028 |
Three Village Central School District, Brookhaven & Smithtown, Limited General Obligation | | |
Insured: State Aid Withholding | | |
4.50%, due 6/24/24 | 3,005,000 | 3,005,548 |
Town of Hempstead, Limited General Obligation | | |
2.125%, due 6/15/39 | 3,715,000 | 2,636,642 |
Town of Wallkill, Limited General Obligation | | |
5.00%, due 7/25/24 | 10,000,000 | 10,021,221 |
Uniondale Union Free School District, Unlimited General Obligation | | |
Insured: State Aid Withholding | | |
2.00%, due 5/1/38 | 3,115,000 | 2,197,885 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
General Obligation (continued) |
Uniondale Union Free School District, Unlimited General Obligation (continued) | | |
Insured: State Aid Withholding | | |
2.00%, due 5/1/39 | $ 3,195,000 | $ 2,174,015 |
Insured: State Aid Withholding | | |
2.00%, due 5/1/40 | 3,500,000 | 2,309,662 |
Insured: State Aid Withholding | | |
2.00%, due 5/1/41 | 3,500,000 | 2,252,352 |
Village of Valley Stream, Various Purpose, Limited General Obligation | | |
Insured: BAM | | |
4.00%, due 4/1/33 | 490,000 | 493,422 |
Insured: BAM | | |
4.00%, due 4/1/34 | 510,000 | 513,893 |
Insured: BAM | | |
4.00%, due 4/1/35 | 530,000 | 533,306 |
Insured: BAM | | |
4.00%, due 4/1/36 | 550,000 | 552,437 |
Insured: BAM | | |
4.00%, due 4/1/37 | 570,000 | 570,245 |
Waverly Central School District, Unlimited General Obligation | | |
Series B, Insured: State Aid Withholding | | |
4.75%, due 7/26/24 | 2,060,000 | 2,061,453 |
| | 121,631,316 |
Hospital 5.8% |
Brookhaven Local Development Corp., Long Island Community Hospital Health Care Services Foundation, Revenue Bonds | | |
Series A, Insured: AGM-CR | | |
3.375%, due 10/1/40 | 7,990,000 | 7,153,712 |
Brookhaven Local Development Corp., Long Island Community Hospital Project, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/35 | 1,000,000 | 1,077,409 |
Series A | | |
5.00%, due 10/1/50 | 6,250,000 | 6,443,182 |
| Principal Amount | Value |
|
Hospital (continued) |
Broome County Local Development Corp., United Health Services Hospitals Obligated Group, Revenue Bonds | | |
Insured: AGM | | |
3.00%, due 4/1/50 | $ 6,835,000 | $ 4,815,177 |
Build NYC Resource Corp., Children's Aid Society Project (The), Revenue Bonds | | |
4.00%, due 7/1/49 | 1,300,000 | 1,182,537 |
Genesee County Funding Corp. (The), Rochester Regional Health Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/24 | 200,000 | 200,464 |
Series A | | |
5.00%, due 12/1/25 | 215,000 | 217,130 |
Series A | | |
5.00%, due 12/1/26 | 340,000 | 346,953 |
Series A | | |
5.00%, due 12/1/27 | 400,000 | 409,712 |
Series A | | |
5.00%, due 12/1/28 | 600,000 | 620,570 |
Jefferson County Civic Facility Development Corp., Samaritan Medical Center Project, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/31 | 2,705,000 | 2,523,515 |
Monroe County Industrial Development Corp., Highland Hospital, Revenue Bonds | | |
4.00%, due 7/1/40 | 2,500,000 | 2,429,447 |
Monroe County Industrial Development Corp., Rochester General Hospital (The), Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/32 | 540,000 | 540,812 |
Series A | | |
5.00%, due 12/1/42 | 1,000,000 | 999,939 |
Nassau County Local Economic Assistance Corp., Catholic Health Services of Long Island Obligated Group, Revenue Bonds | | |
5.00%, due 7/1/34 | 250,000 | 250,219 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay MacKay New York Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Hospital (continued) |
New York State Dormitory Authority, Garnet Health Medical Center Obligated Group, Revenue Bonds (a) | | |
5.00%, due 12/1/31 | $ 1,000,000 | $ 954,505 |
5.00%, due 12/1/32 | 3,000,000 | 2,840,278 |
New York State Dormitory Authority, Memorial Sloan-Kettering Cancer Center, Revenue Bonds | | |
Series 1 | | |
4.00%, due 7/1/37 | 470,000 | 477,889 |
New York State Dormitory Authority, NYU Langone Hospitals Obligated Group, Revenue Bonds | | |
Series A | | |
3.00%, due 7/1/48 | 2,375,000 | 1,788,136 |
Series A | | |
4.00%, due 7/1/40 | 1,000,000 | 1,000,589 |
Series A | | |
4.00%, due 7/1/50 | 3,005,000 | 2,848,276 |
Series A | | |
4.00%, due 7/1/53 | 8,450,000 | 7,902,794 |
New York State Dormitory Authority, Orange Regional Medical Center Obligated Group, Revenue Bonds | | |
5.00%, due 12/1/35 (a) | 100,000 | 98,469 |
Oneida County Local Development Corp., Mohawk Valley Health System Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
3.00%, due 12/1/44 | 11,560,000 | 8,581,768 |
Series A, Insured: AGM | | |
4.00%, due 12/1/34 | 1,585,000 | 1,576,763 |
Series A, Insured: AGM | | |
4.00%, due 12/1/49 | 7,940,000 | 6,986,293 |
Suffolk County Economic Development Corp., Catholic Health Services of Long Island Obligated Group, Revenue Bonds | | |
Series C | | |
5.00%, due 7/1/33 | 250,000 | 250,243 |
Westchester County Local Development Corp., Westchester Medical Centre, Revenue Bonds | | |
Insured: AGM | | |
5.75%, due 11/1/48 | 6,200,000 | 7,003,027 |
| | 71,519,808 |
| Principal Amount | Value |
|
Housing 0.8% |
Albany Capital Resource Corp., Empire Commons Student Housing, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 5/1/29 | $ 600,000 | $ 610,699 |
Series A | | |
5.00%, due 5/1/30 | 350,000 | 356,392 |
Amherst Development Corp., UBF Faculty-Student Housing Corp., Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 10/1/45 | 2,000,000 | 2,064,625 |
New York City Housing Development Corp., College of Staten Island Residences, Revenue Bonds | | |
Series A, Insured: AGM | | |
3.25%, due 7/1/27 | 2,115,000 | 2,115,023 |
New York State Dormitory Authority, University Facilities, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/43 | 1,500,000 | 1,553,501 |
Onondaga Civic Development Corp., Onondaga Community College Housing Development Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/24 | 400,000 | 398,407 |
Series A | | |
5.00%, due 10/1/25 | 250,000 | 247,044 |
Westchester County Local Development Corp., Purchase Housing Corp. II Project, Revenue Bonds | | |
5.00%, due 6/1/29 | 185,000 | 187,691 |
5.00%, due 6/1/30 | 330,000 | 335,078 |
5.00%, due 6/1/31 | 320,000 | 324,955 |
5.00%, due 6/1/37 | 1,000,000 | 1,001,743 |
5.00%, due 6/1/42 | 1,000,000 | 973,051 |
| | 10,168,209 |
Other Revenue 39.4% |
Battery Park City Authority, Revenue Bonds, Senior Lien | | |
Series A | | |
4.00%, due 11/1/44 | 10,635,000 | 10,510,273 |
Series A | | |
5.00%, due 11/1/44 | 9,630,000 | 10,655,355 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
Battery Park City Authority, Revenue Bonds, Senior Lien (continued) | | |
Series A | | |
5.00%, due 11/1/53 | $ 12,500,000 | $ 13,456,682 |
Brookhaven Local Development Corp., Jefferson's Ferry Project, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/55 | 3,565,000 | 2,877,449 |
5.25%, due 11/1/36 | 1,130,000 | 1,152,748 |
Broome County Local Development Corp., Good Shepherd Village at Endwell, Revenue Bonds | | |
4.00%, due 7/1/31 | 1,565,000 | 1,428,315 |
4.00%, due 7/1/36 | 2,100,000 | 1,781,452 |
4.00%, due 7/1/47 | 1,320,000 | 957,651 |
Build NYC Resource Corp., Pratt Paper, Inc. Project, Revenue Bonds | | |
5.00%, due 1/1/35 (a)(b) | 4,305,000 | 4,324,826 |
Build NYC Resource Corp., Royal Charter Properties, Inc., Revenue Bonds | | |
Insured: AGM | | |
4.75%, due 12/15/32 | 2,000,000 | 2,000,215 |
Chautauqua Tobacco Asset Securitization Corp., Revenue Bonds | | |
5.00%, due 6/1/34 | 950,000 | 950,617 |
Children's Trust Fund, Asset-Backed, Revenue Bonds | | |
Series A | | |
(zero coupon), due 5/15/50 | 2,500,000 | 460,772 |
5.625%, due 5/15/43 | 2,300,000 | 2,328,386 |
City of New York, Lincoln Center for the Performing Arts, Inc., Revenue Bonds | | |
Series A | | |
4.00%, due 12/1/33 | 5,350,000 | 5,587,276 |
Development Authority of the North Country, Solid Waste Management System, Revenue Bonds | | |
Insured: AGM | | |
3.25%, due 9/1/39 | 550,000 | 475,847 |
Insured: AGM | | |
3.25%, due 9/1/40 | 570,000 | 484,151 |
| Principal Amount | Value |
|
Other Revenue (continued) |
Dutchess County Local Development Corp., Health Quest Systems, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/34 | $ 500,000 | $ 500,697 |
Dutchess County Resource Recovery Agency, Solid Waste System, Revenue Bonds (b) | | |
5.00%, due 1/1/25 | 1,000,000 | 1,002,870 |
5.00%, due 1/1/26 | 1,000,000 | 1,010,161 |
Erie Tobacco Asset Securitization Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds | | |
Series B | | |
(zero coupon), due 6/1/47 | 18,000,000 | 3,698,716 |
Hudson Yards Infrastructure Corp., Second Indenture, Revenue Bonds | | |
Series A | | |
4.00%, due 2/15/40 | 3,250,000 | 3,294,055 |
Series A | | |
5.00%, due 2/15/30 | 1,600,000 | 1,673,171 |
Series A | | |
5.00%, due 2/15/33 | 1,500,000 | 1,568,601 |
Series A | | |
5.00%, due 2/15/35 | 3,470,000 | 3,624,079 |
Series A | | |
5.00%, due 2/15/36 | 5,165,000 | 5,383,135 |
Series A | | |
5.00%, due 2/15/42 | 4,000,000 | 4,114,663 |
Series A, Insured: BAM | | |
5.00%, due 2/15/42 | 7,500,000 | 7,724,987 |
Huntington Local Development Corp., Fountaingate Gardens Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/36 | 900,000 | 801,540 |
Series A | | |
5.25%, due 7/1/56 | 1,745,000 | 1,383,947 |
Long Island Power Authority, Electric System, Revenue Bonds | | |
Series C | | |
4.22%, due 9/1/38 | 1,000,000 | 995,171 |
Series B | | |
5.00%, due 9/1/33 | 4,440,000 | 4,594,931 |
Series B | | |
5.00%, due 9/1/35 | 2,500,000 | 2,585,533 |
5.00%, due 9/1/37 | 2,000,000 | 2,132,581 |
5.00%, due 9/1/38 | 2,500,000 | 2,653,493 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay MacKay New York Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
Long Island Power Authority, Electric System, Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 9/1/44 | $ 6,025,000 | $ 6,032,842 |
Series B | | |
5.00%, due 9/1/45 | 2,000,000 | 2,010,716 |
Matching Fund Special Purpose Securitization Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/26 | 340,000 | 349,573 |
Series A | | |
5.00%, due 10/1/30 | 3,140,000 | 3,338,389 |
Series A | | |
5.00%, due 10/1/32 | 3,140,000 | 3,374,217 |
Series A | | |
5.00%, due 10/1/39 | 11,915,000 | 12,437,968 |
Metropolitan Transportation Authority, Dedicated Tax Fund, Revenue Bonds | | |
Series B-2 | | |
4.00%, due 11/15/34 | 4,000,000 | 4,055,053 |
Series B-1 | | |
5.00%, due 11/15/36 | 3,355,000 | 3,461,413 |
Monroe County Industrial Development Corp., St. Ann's Community Project, Revenue Bonds | | |
5.00%, due 1/1/50 | 1,630,000 | 1,264,548 |
Nassau County Tobacco Settlement Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds | | |
Series A-3 | | |
5.00%, due 6/1/35 | 750,000 | 694,948 |
New York City Housing Development Corp., Multi-Family Housing, Sustainable Neighborhood, Revenue Bonds | | |
Series F-2A, Insured: FHA 542(C) | | |
3.40%, due 11/1/62 (c) | 4,500,000 | 4,438,102 |
Series G | | |
3.85%, due 11/1/45 | 595,000 | 530,168 |
Series I-1-A | | |
4.05%, due 11/1/41 | 1,000,000 | 988,226 |
Series F-1, Insured: FHA 542(C) | | |
4.30%, due 11/1/37 | 1,500,000 | 1,516,177 |
| Principal Amount | Value |
|
Other Revenue (continued) |
New York City Housing Development Corp., Multi-Family Housing, Sustainable Neighborhood, Green Bond, Revenue Bonds | | |
Series G-1 | | |
3.70%, due 11/1/47 | $ 1,000,000 | $ 857,264 |
New York City Industrial Development Agency, Queens Baseball Stadium Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
3.00%, due 1/1/39 | 6,955,000 | 5,954,726 |
Series A, Insured: AGM | | |
3.00%, due 1/1/40 | 8,315,000 | 6,968,966 |
Series A, Insured: AGM | | |
3.00%, due 1/1/46 | 10,000,000 | 7,704,939 |
New York City Industrial Development Agency, TrIPs Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/28 | 1,295,000 | 1,294,570 |
New York City Industrial Development Agency, Yankee Stadium Project, Revenue Bonds | | |
Series A, Insured: AGC | | |
(zero coupon), due 3/1/40 | 380,000 | 182,720 |
Series A, Insured: AGC | | |
(zero coupon), due 3/1/44 | 1,065,000 | 408,382 |
Series A, Insured: AGC | | |
(zero coupon), due 3/1/45 | 200,000 | 72,409 |
Series A, Insured: AGC | | |
(zero coupon), due 3/1/46 | 4,080,000 | 1,394,693 |
Series A, Insured: AGC | | |
(zero coupon), due 3/1/47 | 1,115,000 | 359,175 |
Series A, Insured: AGM-CR | | |
3.00%, due 3/1/49 | 10,980,000 | 8,358,869 |
New York City Transitional Finance Authority, Building Aid, Revenue Bonds | | |
Series S-1B, Insured: State Aid Withholding | | |
4.00%, due 7/15/40 | 6,000,000 | 6,004,851 |
Series S-3, Insured: State Aid Withholding | | |
5.00%, due 7/15/43 | 2,500,000 | 2,608,415 |
Series S-3, Insured: State Aid Withholding | | |
5.25%, due 7/15/45 | 5,000,000 | 5,261,419 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
New York City Transitional Finance Authority, Future Tax Secured, Revenue Bonds | | |
Series C-2 | | |
1.58%, due 5/1/24 | $ 345,000 | $ 345,000 |
Series C-1 | | |
4.00%, due 5/1/44 | 4,000,000 | 3,896,376 |
Series E-1 | | |
4.00%, due 2/1/46 | 5,440,000 | 5,256,977 |
Series B-1 | | |
5.00%, due 11/1/36 | 19,585,000 | 21,259,958 |
Series F-1 | | |
5.00%, due 2/1/47 | 5,000,000 | 5,311,995 |
Series D-1 | | |
5.50%, due 11/1/45 | 2,500,000 | 2,793,216 |
Series B | | |
5.50%, due 5/1/47 | 2,830,000 | 3,164,154 |
New York Convention Center Development Corp., Hotel Unit Fee, Revenue Bonds | | |
5.00%, due 11/15/26 | 6,000,000 | 6,104,737 |
5.00%, due 11/15/40 | 1,620,000 | 1,638,784 |
New York Convention Center Development Corp., Hotel Unit Fee, Revenue Bonds, Senior Lien | | |
Series A | | |
(zero coupon), due 11/15/47 | 6,500,000 | 2,012,549 |
New York Convention Center Development Corp., Hotel Unit Fee, Revenue Bonds, Sub. Lien | | |
Series B, Insured: BAM | | |
(zero coupon), due 11/15/41 | 2,320,000 | 1,017,056 |
Series B, Insured: BAM | | |
(zero coupon), due 11/15/43 | 4,800,000 | 1,874,265 |
New York Counties Tobacco Trust, Revenue Bonds | | |
Series A-2B | | |
5.00%, due 6/1/45 | 3,885,000 | 3,625,805 |
New York Counties Tobacco Trust IV, Settlement Pass Through, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/42 | 1,000,000 | 930,609 |
Series A | | |
5.00%, due 6/1/45 | 245,000 | 221,872 |
Series A | | |
6.25%, due 6/1/41 (a) | 4,700,000 | 4,700,118 |
| Principal Amount | Value |
|
Other Revenue (continued) |
New York Counties Tobacco Trust V, Pass Through, Capital Appreciation, Revenue Bonds | | |
Series S-1 | | |
(zero coupon), due 6/1/38 | $ 1,600,000 | $ 685,615 |
New York Counties Tobacco Trust VI, Tobacco Settlement Pass Through, Revenue Bonds | | |
Series B | | |
5.00%, due 6/1/30 | 135,000 | 138,625 |
New York Liberty Development Corp., 1 World Trade Center, Revenue Bonds | | |
Insured: BAM | | |
2.75%, due 2/15/44 | 8,000,000 | 5,876,486 |
Insured: AGM-CR | | |
4.00%, due 2/15/43 | 6,665,000 | 6,578,064 |
New York Liberty Development Corp., 3 World Trade Center LLC, Revenue Bonds | | |
Class 1 | | |
5.00%, due 11/15/44 (a) | 5,660,000 | 5,609,684 |
New York Liberty Development Corp., 4 World Trade Center LLC, Revenue Bonds | | |
Series A | | |
2.75%, due 11/15/41 | 3,515,000 | 2,683,159 |
New York Liberty Development Corp., 7 World Trade Center Project, Revenue Bonds | | |
Series A | | |
3.00%, due 9/15/43 | 1,250,000 | 998,136 |
Series A | | |
3.125%, due 9/15/50 | 700,000 | 527,602 |
New York Liberty Development Corp., Goldman Sachs Headquarters LLC, Revenue Bonds | | |
5.50%, due 10/1/37 | 700,000 | 815,726 |
New York State Dormitory Authority, Personal Income Tax, Revenue Bonds | | |
Series E | | |
5.00%, due 3/15/36 | 9,200,000 | 9,322,704 |
Series A | | |
5.00%, due 2/15/41 | 2,050,000 | 2,080,205 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay MacKay New York Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
New York State Dormitory Authority, Sales Tax, Revenue Bonds | | |
Series A | | |
5.00%, due 3/15/35 | $ 3,000,000 | $ 3,003,399 |
New York State Dormitory Authority, State Personal Income Tax, Revenue Bonds | | |
Series A | | |
4.00%, due 3/15/39 | 8,000,000 | 8,060,253 |
Series E | | |
4.00%, due 3/15/45 | 2,000,000 | 1,941,494 |
New York State Energy Research & Development Authority, New York State Electric & Gas Corp., Revenue Bonds | | |
Series D | | |
3.50%, due 10/1/29 | 2,500,000 | 2,439,201 |
Series C | | |
4.00%, due 4/1/34 | 3,000,000 | 3,008,104 |
New York State Energy Research & Development Authority, Revolving Loan Fund, Revenue Bonds | | |
Series A | | |
6.096%, due 4/1/27 | 1,755,000 | 1,748,241 |
Series A | | |
6.146%, due 4/1/28 | 1,350,000 | 1,345,035 |
Series A | | |
6.205%, due 4/1/29 | 1,105,000 | 1,102,042 |
Series A | | |
6.255%, due 4/1/30 | 1,050,000 | 1,047,258 |
Series A | | |
6.308%, due 4/1/31 | 1,000,000 | 997,756 |
New York State Housing Finance Agency, Revenue Bonds | | |
Series J-1, Insured: SONYMA HUD Sector 8 | | |
2.65%, due 11/1/46 | 3,935,000 | 2,737,515 |
Series G-2, Insured: SONYMA HUD Sector 8 | | |
3.45%, due 5/1/62 (c) | 5,750,000 | 5,687,838 |
Series C, Insured: FHA 542(C) | | |
4.15%, due 5/1/47 | 10,000,000 | 9,523,854 |
Series B-1 | | |
4.60%, due 11/1/54 | 2,500,000 | 2,396,236 |
Series E-1, Insured: SONYMA HUD Sector 8 | | |
4.95%, due 11/1/58 | 1,410,000 | 1,428,351 |
| Principal Amount | Value |
|
Other Revenue (continued) |
New York State Urban Development Corp., Personal Income Tax, Revenue Bonds | | |
Series E | | |
4.00%, due 3/15/43 | $ 2,885,000 | $ 2,830,641 |
New York State Urban Development Corp., Sales Tax, Revenue Bonds | | |
Series A | | |
4.00%, due 3/15/37 | 4,000,000 | 4,137,113 |
New York Transportation Development Corp., American Airlines, Inc. John F. Kennedy International Airport Project, Revenue Bonds | | |
5.25%, due 8/1/31 (b) | 1,290,000 | 1,354,265 |
New York Transportation Development Corp., Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project, Revenue Bonds (b) | | |
4.00%, due 10/1/30 | 2,000,000 | 1,995,607 |
4.00%, due 1/1/36 | 2,000,000 | 1,983,346 |
4.375%, due 10/1/45 | 10,000,000 | 9,668,755 |
5.00%, due 10/1/35 | 3,000,000 | 3,170,921 |
New York Transportation Development Corp., New York State Thruway Service Areas Project, Revenue Bonds (b) | | |
4.00%, due 10/31/46 | 2,595,000 | 2,188,493 |
4.00%, due 4/30/53 | 2,505,000 | 2,021,457 |
Niagara Tobacco Asset Securitization Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds | | |
5.25%, due 5/15/40 | 500,000 | 500,036 |
Puerto Rico Sales Tax Financing Corp., Revenue Bonds | | |
Series A-1 | | |
(zero coupon), due 7/1/46 | 15,766,000 | 4,943,828 |
Series A-1 | | |
4.75%, due 7/1/53 | 1,000,000 | 978,456 |
Series A-2 | | |
4.784%, due 7/1/58 | 18,807,000 | 18,445,749 |
Series A-1 | | |
5.00%, due 7/1/58 | 1,189,000 | 1,189,140 |
Rockland Tobacco Asset Securitization Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds | | |
Series B | | |
(zero coupon), due 8/15/50 (a) | 13,000,000 | 2,343,588 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
Southold Local Development Corp., Peconic Landing, Inc. Project, Revenue Bonds | | |
5.00%, due 12/1/45 | $ 1,625,000 | $ 1,568,769 |
State of New York, Mortgage Agency, Revenue Bonds | | |
Series 223 | | |
2.00%, due 10/1/27 | 775,000 | 715,720 |
Series 221 | | |
3.50%, due 10/1/32 (b) | 3,790,000 | 3,678,901 |
Series 213 | | |
4.25%, due 10/1/47 | 385,000 | 382,546 |
Suffolk County Economic Development Corp., Peconic Landing at Southold, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/29 | 150,000 | 153,585 |
Series A | | |
5.00%, due 12/1/34 | 165,000 | 168,944 |
Series A | | |
5.00%, due 12/1/40 | 175,000 | 173,824 |
Suffolk Tobacco Asset Securitization Corp., Tobacco Settlement, Asset Backed, Revenue Bonds | | |
Series B-2 | | |
(zero coupon), due 6/1/66 | 10,000,000 | 962,721 |
Series A-1 | | |
1.015%, due 6/1/24 | 1,000,000 | 996,428 |
Territory of Guam, Business Privilege Tax, Revenue Bonds | | |
Series F | | |
4.00%, due 1/1/36 | 2,000,000 | 1,966,094 |
Series D | | |
4.00%, due 11/15/39 | 1,005,000 | 930,307 |
Series D | | |
5.00%, due 11/15/27 | 2,825,000 | 2,863,029 |
Territory of Guam, Section 30, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/36 | 1,020,000 | 1,032,045 |
Tompkins County Development Corp., Kendal at Ithaca Project, Revenue Bonds | | |
Series 2014A | | |
5.00%, due 7/1/44 | 690,000 | 677,063 |
| Principal Amount | Value |
|
Other Revenue (continued) |
Triborough Bridge & Tunnel Authority, MTA Bridges & Tunnels, Revenue Bonds | | |
Series A | | |
5.00%, due 5/15/48 | $ 5,000,000 | $ 5,348,382 |
Series A | | |
5.50%, due 5/15/63 | 10,450,000 | 11,444,104 |
Triborough Bridge & Tunnel Authority, MTA Bridges & Tunnels, Revenue Bonds, Senior Lien | | |
Series A-2 | | |
2.00%, due 5/15/45 (c) | 5,000,000 | 4,996,327 |
Series C | | |
5.25%, due 11/15/40 | 9,500,000 | 10,789,103 |
Series C | | |
5.25%, due 11/15/42 | 4,000,000 | 4,490,247 |
Series C | | |
5.25%, due 5/15/52 | 4,885,000 | 5,244,614 |
Series D-2 | | |
5.50%, due 5/15/52 | 5,000,000 | 5,491,305 |
TSASC, Inc., Tobacco Settlement Bonds, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/41 | 2,000,000 | 2,033,571 |
Series B | | |
5.00%, due 6/1/48 | 11,140,000 | 9,911,440 |
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/29 (a) | 1,000,000 | 968,960 |
Series A | | |
5.00%, due 10/1/32 | 1,000,000 | 949,075 |
Series A, Insured: AGM-CR | | |
5.00%, due 10/1/32 | 1,265,000 | 1,277,507 |
Westchester County Local Development Corp., Kendal on Hudson Project, Revenue Bonds | | |
Series B | | |
5.00%, due 1/1/51 | 2,500,000 | 2,467,195 |
Westchester County Local Development Corp., Miriam Osborn Memorial Home Association Project, Revenue Bonds | | |
5.00%, due 7/1/27 | 270,000 | 275,896 |
5.00%, due 7/1/28 | 270,000 | 278,917 |
5.00%, due 7/1/29 | 100,000 | 103,585 |
5.00%, due 7/1/34 | 200,000 | 207,520 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay MacKay New York Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Other Revenue (continued) |
Westchester Tobacco Asset Securitization Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds, Senior Lien | | |
Series B | | |
5.00%, due 6/1/41 | $ 250,000 | $ 254,679 |
Yonkers Industrial Development Agency, New Community School Project, Revenue Bonds | | |
Insured: State Aid Withholding | | |
5.25%, due 5/1/51 | 1,280,000 | 1,361,334 |
| | 487,949,270 |
Transportation 13.0% |
Albany County Airport Authority, Revenue Bonds | | |
4.00%, due 12/15/44 | 835,000 | 800,669 |
Series A | | |
5.00%, due 12/15/43 | 1,750,000 | 1,810,970 |
Series A | | |
5.00%, due 12/15/48 | 2,585,000 | 2,652,282 |
Buffalo & Fort Erie Public Bridge Authority, Revenue Bonds | | |
5.00%, due 1/1/47 | 3,635,000 | 3,693,264 |
Metropolitan Transportation Authority, Revenue Bonds | | |
Series D | | |
5.00%, due 11/15/29 | 550,000 | 582,628 |
Series A-2, Insured: AGM | | |
5.00%, due 11/15/44 | 9,000,000 | 9,328,982 |
Series B, Insured: BAM | | |
5.00%, due 11/15/52 | 8,425,000 | 8,636,487 |
Metropolitan Transportation Authority, Green Bond, Revenue Bonds | | |
Series C-2, Insured: BAM | | |
(zero coupon), due 11/15/40 | 9,325,000 | 4,533,553 |
Series A-1, Insured: AGM | | |
4.00%, due 11/15/42 | 2,180,000 | 2,107,056 |
Series C, Insured: AGM | | |
4.00%, due 11/15/46 | 1,600,000 | 1,492,019 |
Series D | | |
4.00%, due 11/15/48 | 300,000 | 273,565 |
New York State Thruway Authority, Revenue Bonds | | |
Series L | | |
4.00%, due 1/1/36 | 2,500,000 | 2,558,844 |
| Principal Amount | Value |
|
Transportation (continued) |
New York State Thruway Authority, Revenue Bonds (continued) | | |
Series O | | |
4.00%, due 1/1/39 | $ 6,000,000 | $ 6,070,919 |
Series B, Insured: AGM | | |
4.00%, due 1/1/45 | 4,450,000 | 4,326,166 |
Series P | | |
5.00%, due 1/1/49 | 4,500,000 | 4,827,078 |
Series P | | |
5.25%, due 1/1/54 | 5,000,000 | 5,423,202 |
New York State Thruway Authority, General Revenue Junior Indebtedness Obligation, Revenue Bonds, Junior Lien | | |
Series B, Insured: BAM | | |
4.00%, due 1/1/45 | 9,050,000 | 8,798,157 |
New York Transportation Development Corp., LaGuardia Airport Terminal B Redevelopment Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/41 (b) | 3,000,000 | 2,952,835 |
New York Transportation Development Corp., Terminal 4 John F. Kennedy International Airport Project, Revenue Bonds (b) | | |
Series A | | |
4.00%, due 12/1/41 | 1,300,000 | 1,233,963 |
Series A | | |
5.00%, due 12/1/29 | 1,250,000 | 1,328,208 |
Series A | | |
5.00%, due 12/1/36 | 1,600,000 | 1,689,961 |
5.00%, due 12/1/37 | 4,000,000 | 4,245,139 |
5.375%, due 6/30/60 | 3,955,000 | 4,131,991 |
6.00%, due 6/30/54 | 8,500,000 | 9,320,270 |
Niagara Frontier Transportation Authority, Buffalo Niagara International Airport, Revenue Bonds (b) | | |
Series A | | |
5.00%, due 4/1/27 | 610,000 | 609,960 |
Series A | | |
5.00%, due 4/1/29 | 325,000 | 325,032 |
Series A | | |
5.00%, due 4/1/29 | 600,000 | 627,409 |
Series A | | |
5.00%, due 4/1/30 | 375,000 | 391,017 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Transportation (continued) |
Niagara Frontier Transportation Authority, Buffalo Niagara International Airport, Revenue Bonds (b) (continued) | | |
Series A | | |
5.00%, due 4/1/31 | $ 1,350,000 | $ 1,408,104 |
Series A | | |
5.00%, due 4/1/32 | 400,000 | 417,129 |
Series A | | |
5.00%, due 4/1/34 | 450,000 | 468,983 |
Series A | | |
5.00%, due 4/1/35 | 400,000 | 415,504 |
Series A | | |
5.00%, due 4/1/36 | 600,000 | 616,048 |
Series A | | |
5.00%, due 4/1/38 | 375,000 | 383,314 |
Ogdensburg Bridge and Port Authority, Revenue Bonds | | |
5.75%, due 7/1/47 (a)(b) | 1,985,000 | 1,742,604 |
Port Authority of Guam, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/36 (b) | 625,000 | 646,549 |
Series B | | |
5.00%, due 7/1/37 (b) | 200,000 | 205,763 |
Series A | | |
5.00%, due 7/1/48 | 1,235,000 | 1,239,958 |
Port Authority of New York & New Jersey, Revenue Bonds (b) | | |
Series 221 | | |
4.00%, due 7/15/37 | 1,900,000 | 1,901,456 |
Series 214 | | |
4.00%, due 9/1/43 | 3,000,000 | 2,818,983 |
Series 223 | | |
4.00%, due 7/15/46 | 3,000,000 | 2,783,010 |
Series 186 | | |
5.00%, due 10/15/30 | 9,745,000 | 9,789,602 |
Series 231 | | |
5.50%, due 8/1/42 | 3,770,000 | 4,129,869 |
Port Authority of New York & New Jersey, Revenue Bonds, Third Series | | |
Series 193 | | |
5.00%, due 10/15/34 (b) | 5,775,000 | 5,813,913 |
Syracuse Regional Airport Authority, Revenue Bonds (b) | | |
5.00%, due 7/1/26 | 1,000,000 | 1,013,940 |
| Principal Amount | Value |
|
Transportation (continued) |
Syracuse Regional Airport Authority, Revenue Bonds (b) (continued) | | |
5.00%, due 7/1/27 | $ 635,000 | $ 649,811 |
5.00%, due 7/1/28 | 875,000 | 904,914 |
5.00%, due 7/1/31 | 1,000,000 | 1,058,783 |
5.00%, due 7/1/34 | 775,000 | 813,995 |
Triborough Bridge & Tunnel Authority, MTA Bridges & Tunnels, Revenue Bonds | | |
Series A | | |
4.00%, due 11/15/54 | 5,000,000 | 4,719,900 |
Series B | | |
5.00%, due 11/15/35 | 9,740,000 | 10,196,429 |
Series B | | |
5.00%, due 11/15/37 | 1,500,000 | 1,565,187 |
Series A | | |
5.50%, due 11/15/57 | 10,000,000 | 10,922,488 |
| | 161,397,862 |
Utilities 3.1% |
Guam Power Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/33 | 1,155,000 | 1,191,425 |
Series A | | |
5.00%, due 10/1/40 | 3,600,000 | 3,642,693 |
New York Power Authority, Revenue Bonds | | |
Series A | | |
4.00%, due 11/15/50 | 3,500,000 | 3,338,537 |
New York Power Authority, Green Transmission Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
4.00%, due 11/15/47 | 2,620,000 | 2,533,054 |
Series A, Insured: AGM | | |
4.00%, due 11/15/52 | 8,175,000 | 7,808,413 |
Puerto Rico Electric Power Authority, Revenue Bonds | | |
Series UU, Insured: AGM | | |
4.266%, due 7/1/29 | 5,000,000 | 4,764,432 |
Series TT, Insured: NATL-RE | | |
5.00%, due 7/1/26 | 215,000 | 215,118 |
Series XX | | |
5.25%, due 7/1/40 (d)(e) | 5,630,000 | 1,491,950 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay MacKay New York Tax Free Opportunities Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Utilities (continued) |
Utility Debt Securitization Authority, Revenue Bonds | | |
5.00%, due 12/15/38 | $ 10,210,000 | $ 10,754,715 |
5.00%, due 12/15/39 | 2,250,000 | 2,363,067 |
| | 38,103,404 |
Water & Sewer 7.8% |
Albany Municipal Water Finance Authority, Revenue Bonds | | |
Series A | | |
4.00%, due 12/1/50 | 5,670,000 | 5,398,708 |
Buffalo Municipal Water Finance Authority, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 7/1/44 | 1,500,000 | 1,622,792 |
Guam Government Waterworks Authority, Water and Wastewater System, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/35 | 4,000,000 | 4,005,839 |
5.00%, due 1/1/46 | 4,055,000 | 4,108,802 |
Series A | | |
5.00%, due 1/1/50 | 9,975,000 | 10,169,600 |
Monroe County Water Authority, Water System, Revenue Bonds | | |
3.50%, due 3/1/45 | 2,000,000 | 1,741,451 |
5.00%, due 8/1/37 | 750,000 | 750,726 |
New York City Municipal Water Finance Authority, Water & Sewer System Second General Resolution, Revenue Bonds | | |
Series EE | | |
4.00%, due 6/15/45 | 2,000,000 | 1,951,803 |
Series AA | | |
5.00%, due 6/15/38 | 3,500,000 | 3,642,137 |
Series HH | | |
5.00%, due 6/15/39 | 3,500,000 | 3,538,829 |
Series AA | | |
5.00%, due 6/15/40 | 2,200,000 | 2,349,666 |
Series DD-2 | | |
5.25%, due 6/15/47 | 6,435,000 | 7,068,119 |
Series AA-1 | | |
5.25%, due 6/15/52 | 18,280,000 | 19,830,614 |
| Principal Amount | Value |
|
Water & Sewer (continued) |
New York State Environmental Facilities Corp., State Revolving Fund, Revenue Bonds | | |
Series B | | |
5.00%, due 9/15/47 | $ 7,650,000 | $ 8,243,469 |
Series A | | |
5.00%, due 2/15/49 | 6,500,000 | 6,790,184 |
Series B | | |
5.25%, due 9/15/52 | 4,850,000 | 5,262,099 |
Niagara Falls Public Water Authority, Water & Sewer System, Revenue Bonds | | |
Series A | | |
5.00%, due 7/15/34 | 770,000 | 794,326 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/37 (a) | 545,000 | 569,659 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds, Senior Lien (a) | | |
Series 2020A | | |
5.00%, due 7/1/35 | 5,455,000 | 5,733,502 |
Series A | | |
5.00%, due 7/1/47 | 2,500,000 | 2,532,885 |
| | 96,105,210 |
Total Long-Term Municipal Bonds (Cost $1,188,517,286) | | 1,178,924,307 |
Short-Term Municipal Notes 2.3% |
General 1.2% |
Nuveen New York AMT-Free Quality Municipal Income Fund | | |
4.22%, due 5/1/47 (a)(f) | 15,000,000 | 15,000,000 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | | Value |
Short-Term Municipal Notes (continued) |
Water & Sewer 1.1% |
New York City Municipal Water Finance Authority, Water & Sewer System Second General Resolution, Revenue Bonds | | | |
Series DD | | | |
3.90%, due 6/15/33 (f) | $ 13,250,000 | | $ 13,250,000 |
Total Short-Term Municipal Notes (Cost $28,250,000) | | | 28,250,000 |
Total Municipal Bonds (Cost $1,216,767,286) | | | 1,207,174,307 |
|
| Shares | | |
Closed-End Funds 0.1% |
New York 0.1% |
BlackRock New York Municipal Income Trust | 12,602 | | 130,179 |
Eaton Vance New York Municipal Bond Fund | 12,636 | | 119,410 |
Nuveen New York AMT-Free Quality Municipal Income Fund | 171,267 | | 1,822,281 |
Total Closed-End Funds (Cost $2,679,437) | | | 2,071,870 |
Short-Term Investment 1.2% |
Unaffiliated Investment Company 1.2% |
BlackRock Liquidity Funds MuniCash, 3.427% (g) | 14,491,674 | | 14,492,816 |
Total Short-Term Investment (Cost $14,492,816) | | | 14,492,816 |
Total Investments (Cost $1,233,939,539) | 98.8% | | 1,223,738,993 |
Other Assets, Less Liabilities | 1.2 | | 14,659,212 |
Net Assets | 100.0% | | $ 1,238,398,205 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
(b) | Interest on these securities was subject to alternative minimum tax . |
(c) | Coupon rate may change based on changes of the underlying collateral or prepayments of principal. Rate shown was the rate in effect as of April 30, 2024. |
(d) | Issue in default. |
(e) | Issue in non-accrual status. |
(f) | Variable-rate demand notes (VRDNs)—Provide the right to sell the security at face value on either that day or within the rate-reset period. VRDNs will normally trade as if the maturity is the earlier put date, even though stated maturity is longer. The interest rate is reset on the put date at a stipulated daily, weekly, monthly, quarterly, or other specified time interval to reflect current market conditions. These securities do not indicate a reference rate and spread in their description. The maturity date shown is the final maturity. |
(g) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 | MainStay MacKay New York Tax Free Opportunities Fund |
Futures Contracts
As of April 30, 2024, the Fund held the following futures contracts1:
Type | Number of Contracts | Expiration Date | Value at Trade Date | Current Notional Amount | Unrealized Appreciation (Depreciation)2 |
Short Contracts | | | | | |
U.S. Treasury Long Bonds | (300) | June 2024 | $ (35,612,455) | $ (34,143,750) | $ 1,468,705 |
1. | As of April 30, 2024, cash in the amount of $1,170,000 was on deposit with a broker or futures commission merchant for futures transactions. |
2. | Represents the difference between the value of the contracts at the time they were opened and the value as of April 30, 2024. |
Abbreviation(s): |
AGC—Assured Guaranty Corp. |
AGM—Assured Guaranty Municipal Corp. |
AMBAC—Ambac Assurance Corp. |
BAM—Build America Mutual Assurance Co. |
CR—Custodial Receipts |
FHA—Federal Housing Administration |
HUD—Housing and Urban Development |
MTA—Metropolitan Transportation Authority |
NATL-RE—National Public Finance Guarantee Corp. |
SONYMA—State of New York Mortgage Agency |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Municipal Bonds | | | | | | | |
Long-Term Municipal Bonds | $ — | | $ 1,178,924,307 | | $ — | | $ 1,178,924,307 |
Short-Term Municipal Notes | — | | 28,250,000 | | — | | 28,250,000 |
Total Municipal Bonds | — | | 1,207,174,307 | | — | | 1,207,174,307 |
Closed-End Funds | 2,071,870 | | — | | — | | 2,071,870 |
Short-Term Investment | | | | | | | |
Unaffiliated Investment Company | 14,492,816 | | — | | — | | 14,492,816 |
Total Investments in Securities | 16,564,686 | | 1,207,174,307 | | — | | 1,223,738,993 |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | 1,468,705 | | — | | — | | 1,468,705 |
Total Investments in Securities and Other Financial Instruments | $ 18,033,391 | | $ 1,207,174,307 | | $ — | | $ 1,225,207,698 |
(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 (depreciation) as shown on the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
25
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $1,233,939,539) | $1,223,738,993 |
Cash collateral on deposit at broker for futures contracts | 1,170,000 |
Receivables: | |
Dividends and interest | 17,710,063 |
Fund shares sold | 2,779,545 |
Variation margin on futures contracts | 234,375 |
Other assets | 30,291 |
Total assets | 1,245,663,267 |
Liabilities |
Payables: | |
Investment securities purchased | 3,537,333 |
Fund shares redeemed | 2,341,484 |
Manager (See Note 3) | 447,657 |
NYLIFE Distributors (See Note 3) | 180,661 |
Transfer agent (See Note 3) | 60,513 |
Professional fees | 44,635 |
Custodian | 38,208 |
Accrued expenses | 1,689 |
Distributions payable | 612,882 |
Total liabilities | 7,265,062 |
Net assets | $1,238,398,205 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 129,729 |
Additional paid-in-capital | 1,384,979,561 |
| 1,385,109,290 |
Total distributable earnings (loss) | (146,711,085) |
Net assets | $1,238,398,205 |
Class A | |
Net assets applicable to outstanding shares | $749,053,142 |
Shares of beneficial interest outstanding | 78,474,890 |
Net asset value per share outstanding | $ 9.55 |
Maximum sales charge (3.00% of offering price) | 0.30 |
Maximum offering price per share outstanding | $ 9.85 |
Investor Class | |
Net assets applicable to outstanding shares | $ 352,404 |
Shares of beneficial interest outstanding | 36,908 |
Net asset value per share outstanding | $ 9.55 |
Maximum sales charge (2.50% of offering price) | 0.24 |
Maximum offering price per share outstanding | $ 9.79 |
Class C | |
Net assets applicable to outstanding shares | $ 63,281,530 |
Shares of beneficial interest outstanding | 6,629,042 |
Net asset value and offering price per share outstanding | $ 9.55 |
Class C2 | |
Net assets applicable to outstanding shares | $ 1,638,913 |
Shares of beneficial interest outstanding | 171,776 |
Net asset value and offering price per share outstanding | $ 9.54 |
Class I | |
Net assets applicable to outstanding shares | $417,083,022 |
Shares of beneficial interest outstanding | 43,683,724 |
Net asset value and offering price per share outstanding | $ 9.55 |
Class R6 | |
Net assets applicable to outstanding shares | $ 6,989,194 |
Shares of beneficial interest outstanding | 732,248 |
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.
26 | MainStay MacKay New York Tax Free Opportunities Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $ 23,991,396 |
Dividends | 49,853 |
Total income | 24,041,249 |
Expenses | |
Manager (See Note 3) | 2,595,978 |
Distribution/Service—Class A (See Note 3) | 882,043 |
Distribution/Service—Investor Class (See Note 3) | 443 |
Distribution/Service—Class C (See Note 3) | 159,831 |
Distribution/Service—Class C2 (See Note 3) | 5,239 |
Transfer agent (See Note 3) | 179,283 |
Professional fees | 67,472 |
Custodian | 37,679 |
Trustees | 14,107 |
Shareholder communication | 12,593 |
Registration | 11,205 |
Miscellaneous | 27,444 |
Total expenses before waiver/reimbursement | 3,993,317 |
Expense waiver/reimbursement from Manager (See Note 3) | (34,814) |
Net expenses | 3,958,503 |
Net investment income (loss) | 20,082,746 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | (1,404,995) |
Futures transactions | 1,590,163 |
Net realized gain (loss) | 185,168 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 79,375,871 |
Futures contracts | 1,468,705 |
Net change in unrealized appreciation (depreciation) | 80,844,576 |
Net realized and unrealized gain (loss) | 81,029,744 |
Net increase (decrease) in net assets resulting from operations | $101,112,490 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
27
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 20,082,746 | $ 37,062,325 |
Net realized gain (loss) | 185,168 | (59,991,625) |
Net change in unrealized appreciation (depreciation) | 80,844,576 | 52,861,584 |
Net increase (decrease) in net assets resulting from operations | 101,112,490 | 29,932,284 |
Distributions to shareholders: | | |
Class A | (12,960,765) | (25,441,676) |
Investor Class | (6,472) | (12,102) |
Class C | (1,087,888) | (2,343,374) |
Class C2 | (26,227) | (52,746) |
Class I | (7,551,216) | (13,154,264) |
Class R6 | (80,867) | (66,162) |
Total distributions to shareholders | (21,713,435) | (41,070,324) |
Capital share transactions: | | |
Net proceeds from sales of shares | 278,366,891 | 454,803,941 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 18,133,286 | 34,469,812 |
Cost of shares redeemed | (167,616,287) | (508,992,997) |
Increase (decrease) in net assets derived from capital share transactions | 128,883,890 | (19,719,244) |
Net increase (decrease) in net assets | 208,282,945 | (30,857,284) |
Net Assets |
Beginning of period | 1,030,115,260 | 1,060,972,544 |
End of period | $1,238,398,205 | $1,030,115,260 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
28 | MainStay MacKay New York Tax Free Opportunities Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.68 | | $ 10.12 |
Net investment income (loss) | 0.16(a) | | 0.30(a) | | 0.24(a) | | 0.22(a) | | 0.29 | | 0.32 |
Net realized and unrealized gain (loss) | 0.72 | | 0.00‡ | | (2.00) | | 0.34 | | (0.04) | | 0.56 |
Total from investment operations | 0.88 | | 0.30 | | (1.76) | | 0.56 | | 0.25 | | 0.88 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.18) | | (0.34) | | (0.29) | | (0.25) | | (0.30) | | (0.32) |
Net asset value at end of period | $ 9.55 | | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.68 |
Total investment return (b) | 9.89% | | 3.18% | | (16.36)% | | 5.32% | | 2.35% | | 8.84% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.39%†† | | 3.22% | | 2.37% | | 2.02% | | 2.38% | | 3.00% |
Net expenses (c) | 0.75%†† | | 0.75% | | 0.75% | | 0.75% | | 0.75% | | 0.75% |
Expenses (before waiver/reimbursement) (c) | 0.76%†† | | 0.76% | | 0.76% | | 0.76% | | 0.80% | | 0.82% |
Portfolio turnover rate | 8%(d) | | 69% | | 53%(d) | | 10%(d) | | 29%(d) | | 28%(d) |
Net assets at end of period (in 000’s) | $ 749,053 | | $ 629,501 | | $ 690,832 | | $ 907,662 | | $ 688,870 | | $ 462,499 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.68 | | $ 10.13 |
Net investment income (loss) | 0.16(a) | | 0.30(a) | | 0.24(a) | | 0.22(a) | | 0.25 | | 0.32 |
Net realized and unrealized gain (loss) | 0.71 | | 0.00‡ | | (2.00) | | 0.34 | | 0.00‡ | | 0.55 |
Total from investment operations | 0.87 | | 0.30 | | (1.76) | | 0.56 | | 0.25 | | 0.87 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.17) | | (0.34) | | (0.29) | | (0.25) | | (0.30) | | (0.32) |
Net asset value at end of period | $ 9.55 | | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.68 |
Total investment return (b) | 9.87% | | 3.15% | | (16.37)% | | 5.32% | | 2.33% | | 8.72% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.37%†† | | 3.19% | | 2.37% | | 2.03% | | 2.39% | | 3.06% |
Net expenses (c) | 0.78%††(d) | | 0.77% | | 0.76% | | 0.76% | | 0.77% | | 0.77% |
Expenses (before waiver/reimbursement) (c) | 0.79%†† | | 0.78% | | 0.77% | | 0.77% | | 0.82% | | 0.84% |
Portfolio turnover rate | 8%(e) | | 69% | | 53%(e) | | 10%(e) | | 29%(e) | | 28%(e) |
Net assets at end of period (in 000's) | $ 352 | | $ 329 | | $ 301 | | $ 375 | | $ 414 | | $ 463 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Expense waiver/reimbursement less than 0.01%. |
(e) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
29
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.68 | | $ 10.12 |
Net investment income (loss) | 0.15(a) | | 0.28(a) | | 0.21(a) | | 0.19(a) | | 0.24 | | 0.30 |
Net realized and unrealized gain (loss) | 0.71 | | (0.01) | | (2.00) | | 0.35 | | (0.02) | | 0.56 |
Total from investment operations | 0.86 | | 0.27 | | (1.79) | | 0.54 | | 0.22 | | 0.86 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.16) | | (0.31) | | (0.26) | | (0.23) | | (0.27) | | (0.30) |
Net asset value at end of period | $ 9.55 | | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.68 |
Total investment return (b) | 9.74% | | 2.89% | | (16.58)% | | 5.05% | | 2.08% | | 8.55% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.12%†† | | 2.94% | | 2.11% | | 1.77% | | 2.13% | | 2.77% |
Net expenses (c) | 1.03%††(d) | | 1.02% | | 1.01% | | 1.01% | | 1.02% | | 1.02% |
Expenses (before waiver/reimbursement) (c) | 1.04%†† | | 1.03% | | 1.02% | | 1.02% | | 1.07% | | 1.09% |
Portfolio turnover rate | 8%(e) | | 69% | | 53%(e) | | 10%(e) | | 29%(e) | | 28%(e) |
Net assets at end of period (in 000’s) | $ 63,282 | | $ 61,438 | | $ 73,022 | | $ 111,681 | | $ 107,117 | | $ 90,553 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Expense waiver/reimbursement less than 0.01%. |
(e) | The portfolio turnover rate includes variable rate demand notes. |
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
Class C2 | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 8.85 | | $ 8.88 | | $ 10.94 | | $ 10.63 | | $ 10.72 |
Net investment income (loss) | 0.14(a) | | 0.26(a) | | 0.20(a) | | 0.17(a) | | 0.04 |
Net realized and unrealized gain (loss) | 0.71 | | 0.01 | | (2.02) | | 0.35 | | (0.09) |
Total from investment operations | 0.85 | | 0.27 | | (1.82) | | 0.52 | | (0.05) |
Less distributions: | | | | | | | | | |
From net investment income | (0.16) | | (0.30) | | (0.24) | | (0.21) | | (0.04) |
Net asset value at end of period | $ 9.54 | | $ 8.85 | | $ 8.88 | | $ 10.94 | | $ 10.63 |
Total investment return (b) | 9.54% | | 2.86% | | (16.80)% | | 4.89% | | (0.50)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 2.97%†† | | 2.79% | | 1.96% | | 1.55% | | 1.32%†† |
Net expenses (c) | 1.18%††(d) | | 1.17% | | 1.16% | | 1.15% | | 1.17%†† |
Expenses (before waiver/reimbursement) (c) | 1.19%†† | | 1.18% | | 1.17% | | 1.16% | | 1.22%†† |
Portfolio turnover rate | 8%(e) | | 69% | | 53%(e) | | 10%(e) | | 29%(e) |
Net assets at end of period (in 000’s) | $ 1,639 | | $ 1,476 | | $ 1,638 | | $ 1,861 | | $ 315 |
* | Unaudited. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Expense waiver/reimbursement less than 0.01%. |
(e) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
30 | MainStay MacKay New York Tax Free Opportunities Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.68 | | $ 10.13 |
Net investment income (loss) | 0.17(a) | | 0.33(a) | | 0.26(a) | | 0.25(a) | | 0.32 | | 0.35 |
Net realized and unrealized gain (loss) | 0.72 | | (0.01) | | (2.00) | | 0.34 | | (0.05) | | 0.55 |
Total from investment operations | 0.89 | | 0.32 | | (1.74) | | 0.59 | | 0.27 | | 0.90 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.19) | | (0.36) | | (0.31) | | (0.28) | | (0.32) | | (0.35) |
Net asset value at end of period | $ 9.55 | | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.68 |
Total investment return (b) | 10.02% | | 3.43% | | (16.15)% | | 5.59% | | 2.61% | | 9.01% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.64%†† | | 3.46% | | 2.63% | | 2.27% | | 2.64% | | 3.37% |
Net expenses (c) | 0.50%†† | | 0.50% | | 0.50% | | 0.50% | | 0.50% | | 0.50% |
Expenses (before waiver/reimbursement) (c) | 0.51%†† | | 0.51% | | 0.51% | | 0.51% | | 0.55% | | 0.57% |
Portfolio turnover rate | 8%(d) | | 69% | | 53%(d) | | 10%(d) | | 29%(d) | | 28%(d) |
Net assets at end of period (in 000’s) | $ 417,083 | | $ 334,748 | | $ 294,456 | | $ 353,955 | | $ 261,819 | | $ 161,203 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
| Six months ended April 30, 2024* | | Year Ended October 31, | | November 1, 2019^ through October 31, |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 | | $ 10.69 |
Net investment income (loss) | 0.17(a) | | 0.33(a) | | 0.27(a) | | 0.26(a) | | 0.29 |
Net realized and unrealized gain (loss) | 0.71 | | (0.01) | | (2.01) | | 0.33 | | (0.03) |
Total from investment operations | 0.88 | | 0.32 | | (1.74) | | 0.59 | | 0.26 |
Less distributions: | | | | | | | | | |
From net investment income | (0.19) | | (0.36) | | (0.31) | | (0.28) | | (0.32) |
Net asset value at end of period | $ 9.54 | | $ 8.85 | | $ 8.89 | | $ 10.94 | | $ 10.63 |
Total investment return (b) | 9.92% | | 3.45% | | (16.14)% | | 5.61% | | 2.60% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 3.64%†† | | 3.51% | | 2.67% | | 2.34% | | 2.39% |
Net expenses (c) | 0.48%†† | | 0.48% | | 0.48% | | 0.47% | | 0.48% |
Expenses (before waiver/reimbursement) (c) | 0.48%†† | | 0.48% | | 0.48% | | 0.49% | | 0.54% |
Portfolio turnover rate | 8%(d) | | 69% | | 53%(d) | | 10%(d) | | 29%(d) |
Net assets at end of period (in 000’s) | $ 6,989 | | $ 2,624 | | $ 724 | | $ 806 | | $ 1,404 |
* | Unaudited. |
^ | Inception date. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
31
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MacKay New York Tax Free Opportunities Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | May 14, 2012 |
Investor Class | May 14, 2012 |
Class C | May 14, 2012 |
Class C2 | August 31, 2020 |
Class I | May 14, 2012 |
Class R6 | November 1, 2019 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C and Class C2 shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C and Class C2 shares. Class I and Class R6 shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C and Class C2 shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares based on a shareholder’s account balance as described in the Fund’s prospectus. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C and Class C2 shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek current income exempt from federal and New York state and, in some cases, New York local income taxes.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that
32 | MainStay MacKay New York Tax Free Opportunities Fund |
quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value.
Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. These securities are generally categorized as Level 1 in the hierarchy.
Municipal debt securities are valued at the evaluated mean prices supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent's good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants' assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar
Notes to Financial Statements (Unaudited) (continued)
assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Municipal debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Municipal debt securities are generally categorized as Level 2 in the hierarchy.
In calculating NAV, each closed-end fund is valued at market value, which will generally be determined using the last reported official closing or last trading price on the exchange or market on which the security is primarily traded at the time of valuation. Price information on closed-end funds is taken from the exchange where the security is primarily traded. In addition, because closed-end funds and exchange-traded funds trade on a secondary market, their shares may trade at a premium or discount to the actual net asset value of their portfolio securities and their shares may have greater volatility because of the potential lack of liquidity. These closed-end funds are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 dividends from net investment income, if any, daily and intends to pay them at least monthly and declares and pays distributions from net realized capital gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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 for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying
34 | MainStay MacKay New York Tax Free Opportunities Fund |
securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 risks such as market price risk, leverage risk, liquidity risk, counterparty risk, operational risk, legal risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation 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 or futures commission merchant 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. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. 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 the entire margin owed to the Fund, potentially resulting in a loss. The Fund may invest in futures contracts to seek enhanced returns or to reduce the risk of loss by hedging certain of its
holdings. The Fund's investment in futures contracts and other derivatives may increase the volatility of the Fund's NAVs and may result in a loss to the Fund.
(H) Municipal Bond Risk. The Fund may invest more heavily in municipal bonds from certain cities, states, territories or regions than others, which may increase the Fund’s exposure to losses resulting from economic, political, regulatory occurrences, or declines in tax revenue impacting these particular cities, states, territories or regions. In addition, many state and municipal governments that issue securities are under significant economic and financial stress and may not be able to satisfy their obligations, and these events may be made worse due to current economic challenges. The Fund may invest a substantial amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects, such as tobacco settlement bonds. If the Fund concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and this may have a significant impact on the Fund’s investment performance.
Certain of the issuers in which the Fund may invest have recently experienced, or may experience, significant financial difficulties and repeated credit rating downgrades. On May 3, 2017, the Commonwealth of Puerto Rico (the "Commonwealth") began proceedings pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) to seek bankruptcy-type protections from approximately $74 billion in debt and approximately $48 billion in unfunded pension obligations. In addition, the current economic environment and the resulting pressure on Puerto Rico’s budget have further contributed to its financial challenges. Following the outbreak of COVID-19, the federal government passed certain relief packages, including the Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan, which included an aggregate of more than $7 billion in disaster relief funds for the U.S. territories, including Puerto Rico. However, there can be no assurances that the federal funds allocated to the Commonwealth will be sufficient to address the long-term economic challenges that arose from COVID-19.
As of October 31, 2023, Puerto Rico Electric Power Authority ("PREPA") has remained in Title III Bankruptcy for over 6 years. A significant number of net revenue bond creditors, the Oversight Board, and the Commonwealth have been unable to reach a consensual resolution on PREPA’s debt restructuring following the termination of the previous 2019 PREPA Restructuring Support Agreement by the Commonwealth of Puerto Rico in March of 2022. On December 16, 2022, the Oversight Board filed a proposed plan of adjustment to restructure more than $10 billion of debt and other claims against PREPA. The plan of adjustment, amended in March, proposed to cut PREPA’s unsustainable debt to approximately $5.68 billion.
Bankruptcy litigation has ensued between the Oversight Board and a group of net revenue bond creditors over the security provisions of PREPA’s $8.3 billion of net revenue bonds resulting in a ruling in March that PREPA’s net revenue bonds are unsecured.
Notes to Financial Statements (Unaudited) (continued)
In June of 2023, a claims estimation hearing resulted in a ruling that PREPA’s now asserted unsecured net revenue bond claim was valued at approximately 2.383 billion, which is only 28.3% of the full prepetition claim asserted by net revenue bond holders. Due to the lower claims estimation ruling, at the end of August 2023 the Oversight Board filed a new proposed plan of adjustment to reflect the March lien ruling and June estimation hearing with lower recovery amounts afforded to net revenue bond holders. In conjunction with the new proposed plan of adjustment, a subset of the original litigating PREPA creditors entered into Planned Support Agreements (”PSAs”) supporting the new proposed plan of adjustment.
However, following the new proposed plan of adjustment, a significant amount of creditors not previously involved in the PREPA bankruptcy have objected to the revised plan of adjustment, including the MainStay MacKay Municipal Bond Funds.
Objecting creditors are appealing several rulings, including the March net revenue bond lien ruling, the June net revenue bond claims estimation ruling, and the November disclosure statement approval ruling that provides for a plan with disparate recoveries for the same creditors. Objecting creditors believe the PREPA bankruptcy plan of adjustment is unconfirmable and these rulings will be overturned on appeal, but there is no certainty that objecting creditors will be successful in appealing these rulings, or if overturned, these creditors will receive the relief sought. The proposed PREPA August plan of adjustment provides 3.5% of cash recovery for objecting creditors to the plan as opposed to 12.5% of cash recovery for consenting creditors who have not previously settled.
Bankruptcy plan confirmation hearings were held in March of 2024 though at the end of May 2024 Judge Swain has not yet ruled on the confirmability of the plan. Furthermore, as of the end of May 2024, the First Circuit has yet to rule on the appeal of the lien and recourse challenges brought by objecting creditors. It is unclear what impact if any the 1st Circuit rulings will have on plan confirmation and/or whether any appellate rulings will occur prior to the approval of any plan confirmation by Judge Swain.
The Fund’s vulnerability to potential losses associated with such developments may be reduced through investing in municipal securities that feature credit enhancements (such as bond insurance). The bond insurance provider pays both principal and interest when due to the bond holder. The magnitude of Puerto Rico’s debt restructuring or other adverse economic developments could pose significant strains on the ability of municipal securities insurers to meet all future claims. As of April 30, 2024, the Fund's total Puerto Rico investments is 4.3% of total investments, with 11.1% of that amount insured.
(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 that may 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. The Manager believes 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.
(J) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures related to 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.
The Fund entered into futures contracts to help manage the duration and yield curve positioning of the portfolio. These derivatives are not accounted for as hedging instruments.
Fair value of derivative instruments as of April 30, 2024:
Asset Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized appreciation on futures contracts (a) | $1,468,705 | $1,468,705 |
Total Fair Value | $1,468,705 | $1,468,705 |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is 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, 2024:
Net Realized Gain (Loss) from: | Interest Rate Contracts Risk | Total |
Futures Transactions | $1,590,163 | $1,590,163 |
Total Net Realized Gain (Loss) | $1,590,163 | $1,590,163 |
Net Change in Unrealized Appreciation (Depreciation) | Interest Rate Contracts Risk | Total |
Futures Contracts | $1,468,705 | $1,468,705 |
Total Net Change in Unrealized Appreciation (Depreciation) | $1,468,705 | $1,468,705 |
Average Notional Amount | Total |
Futures Contracts Short (a) | $(36,046,875) |
(a) | Positions were open five months during the reporting period. |
36 | MainStay MacKay New York Tax Free Opportunities Fund |
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 Fund's Manager, pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC ("MacKay Shields" or the "Subadvisor"), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.45% on assets up to $1 billion; 0.43% on assets from $1 billion to $3 billion; and 0.42% on assets over $3 billion. During the year ended April 30, 2024, the effective management fee rate was 0.45% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) of Class A shares do not exceed 0.75% 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 Investor Class, Class C, Class C2 and Class I shares. New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) of Class R6 do not exceed those of Class I. These agreements will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $2,595,978 and waived fees and/or reimbursed expenses in the amount of $34,814 and paid the Subadvisor fees in the amount of $1,280,582.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% 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, for a total 12b-1 fee of 0.50%. Pursuant to the Class C2 Plan, Class C2 shares pay the Distributor a monthly distribution fee at an annual rate of 0.40% of the average daily net assets of the Class C2 shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares, for a total 12b-1 fee of 0.65%. Class I and Class R6 shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $4,789 and $1, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $51,606 and $2,106, respectively.
(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
Notes to Financial Statements (Unaudited) (continued)
Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $104,095 | $— |
Investor Class | 98 | — |
Class C | 17,639 | — |
Class C2 | 445 | — |
Class I | 56,924 | — |
Class R6 | 82 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class C2 | $24,392 | 1.5% |
Class R6 | 25,727 | 0.4 |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $1,243,350,099 | $12,876,761 | $(32,487,867) | $(19,611,106) |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $127,106,444, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $43,749 | $83,357 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $ 1,334,393 |
Exempt Interest Dividends | 39,735,931 |
Total | $41,070,324 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based
38 | MainStay MacKay New York Tax Free Opportunities Fund |
upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $225,035 and $85,122, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 16,120,357 | $ 155,020,813 |
Shares issued to shareholders in reinvestment of distributions | 1,182,453 | 11,401,699 |
Shares redeemed | (9,982,321) | (95,590,891) |
Net increase (decrease) in shares outstanding before conversion | 7,320,489 | 70,831,621 |
Shares converted into Class A (See Note 1) | 28,039 | 271,696 |
Shares converted from Class A (See Note 1) | (3,347) | (32,528) |
Net increase (decrease) | 7,345,181 | $ 71,070,789 |
Year ended October 31, 2023: | | |
Shares sold | 24,594,452 | $ 231,708,083 |
Shares issued to shareholders in reinvestment of distributions | 2,381,105 | 22,420,239 |
Shares redeemed | (33,582,116) | (310,328,269) |
Net increase (decrease) in shares outstanding before conversion | (6,606,559) | (56,199,947) |
Shares converted into Class A (See Note 1) | 35,928 | 340,496 |
Shares converted from Class A (See Note 1) | (24,595) | (233,252) |
Net increase (decrease) | (6,595,226) | $ (56,092,703) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 16,822 | $ 163,014 |
Shares issued to shareholders in reinvestment of distributions | 645 | 6,221 |
Shares redeemed | (2,673) | (25,616) |
Net increase (decrease) in shares outstanding before conversion | 14,794 | 143,619 |
Shares converted into Investor Class (See Note 1) | 429 | 4,161 |
Shares converted from Investor Class (See Note 1) | (15,480) | (150,000) |
Net increase (decrease) | (257) | $ (2,220) |
Year ended October 31, 2023: | | |
Shares sold | 18,441 | $ 174,014 |
Shares issued to shareholders in reinvestment of distributions | 1,216 | 11,455 |
Shares redeemed | (4,985) | (46,776) |
Net increase (decrease) in shares outstanding before conversion | 14,672 | 138,693 |
Shares converted from Investor Class (See Note 1) | (11,369) | (107,785) |
Net increase (decrease) | 3,303 | $ 30,908 |
|
Notes to Financial Statements (Unaudited) (continued)
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 691,122 | $ 6,658,947 |
Shares issued to shareholders in reinvestment of distributions | 92,678 | 893,594 |
Shares redeemed | (1,083,068) | (10,398,183) |
Net increase (decrease) in shares outstanding before conversion | (299,268) | (2,845,642) |
Shares converted from Class C (See Note 1) | (12,988) | (125,857) |
Net increase (decrease) | (312,256) | $ (2,971,499) |
Year ended October 31, 2023: | | |
Shares sold | 1,088,019 | $ 10,336,076 |
Shares issued to shareholders in reinvestment of distributions | 196,926 | 1,855,696 |
Shares redeemed | (2,533,719) | (23,858,269) |
Net increase (decrease) in shares outstanding before conversion | (1,248,774) | (11,666,497) |
Shares converted from Class C (See Note 1) | (24,559) | (232,711) |
Net increase (decrease) | (1,273,333) | $ (11,899,208) |
|
Class C2 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 16,013 | $ 152,457 |
Shares issued to shareholders in reinvestment of distributions | 2,722 | 26,227 |
Shares redeemed | (13,839) | (134,078) |
Net increase (decrease) | 4,896 | $ 44,606 |
Year ended October 31, 2023: | | |
Shares sold | 57,349 | $ 540,085 |
Shares issued to shareholders in reinvestment of distributions | 5,598 | 52,746 |
Shares redeemed | (80,372) | (760,924) |
Net increase (decrease) | (17,425) | $ (168,093) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 11,690,042 | $ 112,011,822 |
Shares issued to shareholders in reinvestment of distributions | 593,560 | 5,724,678 |
Shares redeemed | (6,416,849) | (61,223,408) |
Net increase (decrease) in shares outstanding before conversion | 5,866,753 | 56,513,092 |
Shares converted into Class I (See Note 1) | 3,347 | 32,528 |
Net increase (decrease) | 5,870,100 | $ 56,545,620 |
Year ended October 31, 2023: | | |
Shares sold | 22,253,554 | $ 209,879,388 |
Shares issued to shareholders in reinvestment of distributions | 1,068,947 | 10,063,514 |
Shares redeemed | (18,653,532) | (173,775,037) |
Net increase (decrease) in shares outstanding before conversion | 4,668,969 | 46,167,865 |
Shares converted into Class I (See Note 1) | 24,580 | 233,252 |
Net increase (decrease) | 4,693,549 | $ 46,401,117 |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 452,632 | $ 4,359,838 |
Shares issued to shareholders in reinvestment of distributions | 8,389 | 80,867 |
Shares redeemed | (25,229) | (244,111) |
Net increase (decrease) | 435,792 | $ 4,196,594 |
Year ended October 31, 2023: | | |
Shares sold | 231,497 | $ 2,166,295 |
Shares issued to shareholders in reinvestment of distributions | 7,053 | 66,162 |
Shares redeemed | (23,520) | (223,722) |
Net increase (decrease) | 215,030 | $ 2,008,735 |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for
40 | MainStay MacKay New York Tax Free Opportunities Fund |
possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay MacKay New York Tax Free Opportunities 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and MacKay in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and MacKay in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or MacKay that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, MacKay personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and MacKay; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and MacKay; (iii) the costs of the services provided, and profits realized, by New York Life Investments and MacKay with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
42 | MainStay MacKay New York Tax Free Opportunities Fund |
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and MacKay. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and MacKay resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and MacKay
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by MacKay, evaluating the performance of MacKay, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of MacKay and ongoing analysis of, and interactions with, MacKay with respect to, among other things, the Fund’s investment performance and risks as well as MacKay’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that MacKay provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated MacKay’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and MacKay’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at MacKay. The Board considered New York Life Investments’ and MacKay’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and MacKay and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered MacKay’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and MacKay regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of MacKay and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and MacKay
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because MacKay is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and MacKay in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and MacKay, and profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including MacKay’s, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and MacKay and acknowledged that New York Life Investments and MacKay must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial
position for New York Life Investments and MacKay to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to MacKay from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to MacKay in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
44 | MainStay MacKay New York Tax Free Opportunities Fund |
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including MacKay, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to MacKay is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and MacKay on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
46 | MainStay MacKay New York Tax Free Opportunities Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022136 MS081-24 | MSNTF10-06/24 |
(NYLIM) NL222
MainStay S&P 500 Index Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 1.50% Initial Sales Charge | With sales charges | 1/2/2004 | 18.83% | 20.20% | 11.94% | 11.48% | 0.52% |
| | Excluding sales charges | | 20.64 | 22.03 | 12.62 | 11.82 | 0.52 |
Investor Class Shares3, 4 | Maximum 1.00% Initial Sales Charge | With sales charges | 2/28/2008 | 19.34 | 20.59 | 11.74 | 11.31 | 0.84 |
| | Excluding sales charges | | 20.55 | 21.81 | 12.42 | 11.65 | 0.84 |
Class I Shares | No Sales Charge | | 1/2/1991 | 20.82 | 22.35 | 12.91 | 12.10 | 0.27 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 20.51 | 21.75 | N/A | 11.16 | 0.82 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to March 19, 2020, the maximum initial sales charge for Class A Shares and Investor Class Shares was 3.00%, which is reflected in the applicable average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 1.50%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
S&P 500® Index2 | 20.98% | 22.66% | 13.19% | 12.41% |
Morningstar Large Blend Category Average3 | 19.86 | 20.31 | 11.78 | 10.96 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | The Fund has selected the S&P 500® Index, which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The foregoing trademarks have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by New York Life Investment Management LLC. The S&P 500® Index is a product of S&P Dow Jones Indices LLC and has been licensed for use by New York Life Investment Management LLC. MainStay S&P 500 Index Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S& P nor their respective affiliates make any representation regarding the advisability of investing in such product(s). |
3. | The Morningstar Large Blend Category Average is representative of funds that represent the overall U.S. stock market in size, growth rates and price. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap. The blend style is assigned to funds where neither growth nor value characteristics predominate. These funds tend to invest across the spectrum of U.S. industries, and owing to their broad exposure, the funds' returns are often similar to those of the S&P 500® Index. Results are based on average total returns of similar funds with all dividends 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,206.40 | $2.80 | $1,022.33 | $2.56 | 0.51% |
Investor Class Shares | $1,000.00 | $1,205.50 | $3.84 | $1,021.38 | $3.52 | 0.70% |
Class I Shares | $1,000.00 | $1,208.20 | $1.43 | $1,023.57 | $1.31 | 0.26% |
SIMPLE Class Shares | $1,000.00 | $1,205.10 | $4.11 | $1,021.13 | $3.77 | 0.75% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
Software | 10.2% |
Semiconductors & Semiconductor Equipment | 10.1 |
Interactive Media & Services | 6.4 |
Technology Hardware, Storage & Peripherals | 6.1 |
Financial Services | 4.2 |
Broadline Retail | 3.8 |
Pharmaceuticals | 3.8 |
Oil, Gas & Consumable Fuels | 3.7 |
Banks | 3.4 |
Capital Markets | 2.8 |
Health Care Providers & Services | 2.6 |
Health Care Equipment & Supplies | 2.5 |
Insurance | 2.1 |
Hotels, Restaurants & Leisure | 2.1 |
Aerospace & Defense | 1.9 |
Specialty Retail | 1.9 |
Consumer Staples Distribution & Retail | 1.9 |
Biotechnology | 1.8 |
Machinery | 1.8 |
Electric Utilities | 1.6 |
Chemicals | 1.5 |
Beverages | 1.4 |
Automobiles | 1.4 |
Life Sciences Tools & Services | 1.4 |
Household Products | 1.3 |
Entertainment | 1.2 |
IT Services | 1.1 |
Ground Transportation | 1.0 |
Specialized REITs | 0.9 |
Food Products | 0.8 |
Communications Equipment | 0.8 |
Electrical Equipment | 0.8 |
Diversified Telecommunication Services | 0.7 |
Professional Services | 0.7 |
Multi–Utilities | 0.6 |
Electronic Equipment, Instruments & Components | 0.6 |
Commercial Services & Supplies | 0.6% |
Consumer Finance | 0.6 |
Media | 0.6 |
Building Products | 0.5 |
Tobacco | 0.5 |
Air Freight & Logistics | 0.5 |
Textiles, Apparel & Luxury Goods | 0.4 |
Industrial Conglomerates | 0.4 |
Metals & Mining | 0.4 |
Household Durables | 0.4 |
Energy Equipment & Services | 0.3 |
Trading Companies & Distributors | 0.3 |
Residential REITs | 0.3 |
Retail REITs | 0.3 |
Industrial REITs | 0.2 |
Containers & Packaging | 0.2 |
Wireless Telecommunication Services | 0.2 |
Health Care REITs | 0.2 |
Passenger Airlines | 0.2 |
Construction Materials | 0.2 |
Personal Care Products | 0.2 |
Real Estate Management & Development | 0.1 |
Distributors | 0.1 |
Construction & Engineering | 0.1 |
Automobile Components | 0.1 |
Office REITs | 0.1 |
Water Utilities | 0.1 |
Gas Utilities | 0.0‡ |
Hotel & Resort REITs | 0.0‡ |
Independent Power and Renewable Electricity Producers | 0.0‡ |
Leisure Products | 0.0‡ |
Short–Term Investments | 1.5 |
Other Assets, Less Liabilities | –0.5 |
| 100.0% |
‡ | Less than one–tenth of a percent. |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Microsoft Corp. |
2. | Apple, Inc. |
3. | NVIDIA Corp. |
4. | Alphabet, Inc. |
5. | Amazon.com, Inc. |
6. | Meta Platforms, Inc., Class A |
7. | Berkshire Hathaway, Inc., Class B |
8. | Eli Lilly & Co. |
9. | Broadcom, Inc. |
10. | JPMorgan Chase & Co. |
8 | MainStay S&P 500 Index Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 99.0% |
Aerospace & Defense 1.9% |
Axon Enterprise, Inc. (a) | 2,153 | $ 675,310 |
Boeing Co. (The) (a) | 17,534 | 2,942,906 |
General Dynamics Corp. | 6,941 | 1,992,692 |
General Electric Co. | 33,273 | 5,384,237 |
Howmet Aerospace, Inc. | 11,954 | 797,929 |
Huntington Ingalls Industries, Inc. | 1,210 | 335,085 |
L3Harris Technologies, Inc. | 5,793 | 1,239,992 |
Lockheed Martin Corp. | 6,575 | 3,056,915 |
Northrop Grumman Corp. | 4,312 | 2,091,449 |
RTX Corp. | 40,565 | 4,118,159 |
Textron, Inc. | 5,991 | 506,779 |
TransDigm Group, Inc. | 1,700 | 2,121,651 |
| | 25,263,104 |
Air Freight & Logistics 0.5% |
CH Robinson Worldwide, Inc. | 3,565 | 253,115 |
Expeditors International of Washington, Inc. | 4,444 | 494,662 |
FedEx Corp. | 7,029 | 1,840,051 |
United Parcel Service, Inc., Class B | 22,112 | 3,261,078 |
| | 5,848,906 |
Automobile Components 0.1% |
Aptiv plc (a) | 8,531 | 605,701 |
BorgWarner, Inc. | 7,025 | 230,209 |
| | 835,910 |
Automobiles 1.4% |
Ford Motor Co. | 119,318 | 1,449,713 |
General Motors Co. | 35,294 | 1,571,642 |
Tesla, Inc. (a) | 84,710 | 15,525,649 |
| | 18,547,004 |
Banks 3.4% |
Bank of America Corp. | 210,491 | 7,790,272 |
Citigroup, Inc. | 58,183 | 3,568,364 |
Citizens Financial Group, Inc. | 14,248 | 485,999 |
Comerica, Inc. | 4,031 | 202,235 |
Fifth Third Bancorp | 20,813 | 758,842 |
Huntington Bancshares, Inc. | 44,254 | 596,101 |
JPMorgan Chase & Co. | 88,386 | 16,947,132 |
KeyCorp | 28,613 | 414,602 |
M&T Bank Corp. | 5,080 | 733,501 |
PNC Financial Services Group, Inc. (The) | 12,169 | 1,865,021 |
Regions Financial Corp. | 28,249 | 544,358 |
Truist Financial Corp. | 40,776 | 1,531,139 |
U.S. Bancorp | 47,602 | 1,934,069 |
| Shares | Value |
|
Banks (continued) |
Wells Fargo & Co. | 110,027 | $ 6,526,802 |
| | 43,898,437 |
Beverages 1.4% |
Brown-Forman Corp., Class B | 5,528 | 264,515 |
Coca-Cola Co. (The) | 118,960 | 7,348,159 |
Constellation Brands, Inc., Class A | 4,918 | 1,246,516 |
Keurig Dr Pepper, Inc. | 31,841 | 1,073,042 |
Molson Coors Beverage Co., Class B | 5,659 | 324,034 |
Monster Beverage Corp. (a) | 22,584 | 1,207,115 |
PepsiCo, Inc. | 42,020 | 7,391,738 |
| | 18,855,119 |
Biotechnology 1.8% |
AbbVie, Inc. | 53,977 | 8,778,819 |
Amgen, Inc. | 16,355 | 4,480,289 |
Biogen, Inc. (a) | 4,429 | 951,438 |
Gilead Sciences, Inc. | 38,093 | 2,483,663 |
Incyte Corp. (a) | 5,684 | 295,852 |
Moderna, Inc. (a) | 10,138 | 1,118,323 |
Regeneron Pharmaceuticals, Inc. (a) | 3,230 | 2,876,832 |
Vertex Pharmaceuticals, Inc. (a) | 7,879 | 3,094,950 |
| | 24,080,166 |
Broadline Retail 3.8% |
Amazon.com, Inc. (a) | 279,461 | 48,905,675 |
eBay, Inc. | 15,862 | 817,527 |
Etsy, Inc. (a) | 3,659 | 251,264 |
| | 49,974,466 |
Building Products 0.5% |
A O Smith Corp. | 3,754 | 310,981 |
Allegion plc | 2,683 | 326,146 |
Builders FirstSource, Inc. (a) | 3,771 | 689,414 |
Carrier Global Corp. | 25,543 | 1,570,639 |
Johnson Controls International plc | 20,835 | 1,355,734 |
Masco Corp. | 6,719 | 459,916 |
Trane Technologies plc | 6,957 | 2,207,734 |
| | 6,920,564 |
Capital Markets 2.8% |
Ameriprise Financial, Inc. | 3,063 | 1,261,313 |
Bank of New York Mellon Corp. (The) | 23,215 | 1,311,415 |
BlackRock, Inc. | 4,275 | 3,226,086 |
Blackstone, Inc. | 21,993 | 2,564,604 |
Cboe Global Markets, Inc. | 3,225 | 584,209 |
Charles Schwab Corp. (The) | 45,499 | 3,364,651 |
CME Group, Inc. | 11,006 | 2,307,298 |
FactSet Research Systems, Inc. | 1,164 | 485,260 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Capital Markets (continued) |
Franklin Resources, Inc. | 9,176 | $ 209,580 |
Goldman Sachs Group, Inc. (The) | 9,970 | 4,254,299 |
Intercontinental Exchange, Inc. | 17,506 | 2,254,072 |
Invesco Ltd. | 13,739 | 194,682 |
MarketAxess Holdings, Inc. | 1,159 | 231,904 |
Moody's Corp. | 4,812 | 1,782,028 |
Morgan Stanley | 38,301 | 3,479,263 |
MSCI, Inc. | 2,418 | 1,126,280 |
Nasdaq, Inc. | 11,616 | 695,217 |
Northern Trust Corp. | 6,271 | 516,668 |
Raymond James Financial, Inc. | 5,751 | 701,622 |
S&P Global, Inc. | 9,823 | 4,084,698 |
State Street Corp. | 9,231 | 669,155 |
T. Rowe Price Group, Inc. | 6,845 | 750,007 |
| | 36,054,311 |
Chemicals 1.5% |
Air Products and Chemicals, Inc. | 6,796 | 1,606,167 |
Albemarle Corp. | 3,586 | 431,432 |
Celanese Corp. | 3,060 | 470,046 |
CF Industries Holdings, Inc. | 5,838 | 461,027 |
Corteva, Inc. | 21,455 | 1,161,359 |
Dow, Inc. | 21,471 | 1,221,700 |
DuPont de Nemours, Inc. | 13,150 | 953,375 |
Eastman Chemical Co. | 3,586 | 338,662 |
Ecolab, Inc. | 7,759 | 1,754,698 |
FMC Corp. | 3,813 | 225,005 |
International Flavors & Fragrances, Inc. | 7,801 | 660,355 |
Linde plc | 14,824 | 6,536,791 |
LyondellBasell Industries NV, Class A | 7,825 | 782,265 |
Mosaic Co. (The) | 9,989 | 313,555 |
PPG Industries, Inc. | 7,207 | 929,703 |
Sherwin-Williams Co. (The) | 7,199 | 2,156,892 |
| | 20,003,032 |
Commercial Services & Supplies 0.6% |
Cintas Corp. | 2,634 | 1,734,067 |
Copart, Inc. (a) | 26,715 | 1,450,892 |
Republic Services, Inc. | 6,253 | 1,198,700 |
Rollins, Inc. | 8,580 | 382,325 |
Veralto Corp. | 6,700 | 627,656 |
Waste Management, Inc. | 11,206 | 2,331,072 |
| | 7,724,712 |
Communications Equipment 0.8% |
Arista Networks, Inc. (a) | 7,704 | 1,976,538 |
Cisco Systems, Inc. | 124,231 | 5,836,373 |
F5, Inc. (a) | 1,798 | 297,227 |
| Shares | Value |
|
Communications Equipment (continued) |
Juniper Networks, Inc. | 9,842 | $ 342,699 |
Motorola Solutions, Inc. | 5,074 | 1,720,847 |
| | 10,173,684 |
Construction & Engineering 0.1% |
Quanta Services, Inc. | 4,442 | 1,148,524 |
Construction Materials 0.2% |
Martin Marietta Materials, Inc. | 1,889 | 1,108,975 |
Vulcan Materials Co. | 4,061 | 1,046,236 |
| | 2,155,211 |
Consumer Finance 0.6% |
American Express Co. | 17,483 | 4,091,546 |
Capital One Financial Corp. | 11,630 | 1,668,091 |
Discover Financial Services | 7,642 | 968,471 |
Synchrony Financial | 12,438 | 547,023 |
| | 7,275,131 |
Consumer Staples Distribution & Retail 1.9% |
Costco Wholesale Corp. | 13,566 | 9,806,861 |
Dollar General Corp. | 6,708 | 933,687 |
Dollar Tree, Inc. (a) | 6,328 | 748,286 |
Kroger Co. (The) | 20,235 | 1,120,614 |
Sysco Corp. | 15,220 | 1,131,150 |
Target Corp. | 14,114 | 2,272,072 |
Walgreens Boots Alliance, Inc. | 21,883 | 387,986 |
Walmart, Inc. | 130,871 | 7,767,194 |
| | 24,167,850 |
Containers & Packaging 0.2% |
Amcor plc | 44,171 | 394,889 |
Avery Dennison Corp. | 2,461 | 534,726 |
Ball Corp. | 9,636 | 670,376 |
International Paper Co. | 10,574 | 369,455 |
Packaging Corp. of America | 2,720 | 470,506 |
Westrock Co. | 7,856 | 376,774 |
| | 2,816,726 |
Distributors 0.1% |
Genuine Parts Co. | 4,284 | 673,488 |
LKQ Corp. | 8,178 | 352,717 |
Pool Corp. | 1,183 | 428,873 |
| | 1,455,078 |
Diversified Telecommunication Services 0.7% |
AT&T, Inc. | 218,594 | 3,692,053 |
Verizon Communications, Inc. | 128,535 | 5,075,847 |
| | 8,767,900 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay S&P 500 Index Fund |
| Shares | Value |
Common Stocks (continued) |
Electric Utilities 1.6% |
Alliant Energy Corp. | 7,798 | $ 388,340 |
American Electric Power Co., Inc. | 16,077 | 1,383,104 |
Constellation Energy Corp. | 9,764 | 1,815,518 |
Duke Energy Corp. | 23,571 | 2,316,087 |
Edison International | 11,727 | 833,321 |
Entergy Corp. | 6,463 | 689,408 |
Evergy, Inc. | 7,021 | 368,252 |
Eversource Energy | 10,676 | 647,179 |
Exelon Corp. | 30,433 | 1,143,672 |
FirstEnergy Corp. | 15,783 | 605,120 |
NextEra Energy, Inc. | 62,726 | 4,200,760 |
NRG Energy, Inc. | 6,899 | 501,350 |
PG&E Corp. | 65,203 | 1,115,623 |
Pinnacle West Capital Corp. | 3,466 | 255,271 |
PPL Corp. | 22,527 | 618,592 |
Southern Co. (The) | 33,343 | 2,450,711 |
Xcel Energy, Inc. | 16,864 | 906,103 |
| | 20,238,411 |
Electrical Equipment 0.8% |
AMETEK, Inc. | 7,054 | 1,232,051 |
Eaton Corp. plc | 12,208 | 3,885,318 |
Emerson Electric Co. | 17,478 | 1,883,779 |
GE Vernova, Inc. (a) | 8,318 | 1,278,560 |
Generac Holdings, Inc. (a) | 1,877 | 255,197 |
Hubbell, Inc. | 1,639 | 607,282 |
Rockwell Automation, Inc. | 3,504 | 949,444 |
| | 10,091,631 |
Electronic Equipment, Instruments & Components 0.6% |
Amphenol Corp., Class A | 18,339 | 2,214,801 |
CDW Corp. | 4,094 | 990,175 |
Corning, Inc. | 23,466 | 783,295 |
Jabil, Inc. | 3,899 | 457,587 |
Keysight Technologies, Inc. (a) | 5,340 | 789,999 |
TE Connectivity Ltd. | 9,441 | 1,335,713 |
Teledyne Technologies, Inc. (a) | 1,442 | 550,094 |
Trimble, Inc. (a) | 7,603 | 456,712 |
Zebra Technologies Corp., Class A (a) | 1,570 | 493,859 |
| | 8,072,235 |
Energy Equipment & Services 0.3% |
Baker Hughes Co. | 30,600 | 998,172 |
Halliburton Co. | 27,213 | 1,019,671 |
Schlumberger NV | 43,639 | 2,071,980 |
| | 4,089,823 |
| Shares | Value |
|
Entertainment 1.2% |
Electronic Arts, Inc. | 7,438 | $ 943,287 |
Live Nation Entertainment, Inc. (a) | 4,336 | 385,514 |
Netflix, Inc. (a) | 13,231 | 7,285,518 |
Take-Two Interactive Software, Inc. (a) | 4,848 | 692,343 |
Walt Disney Co. (The) | 56,079 | 6,230,377 |
Warner Bros Discovery, Inc. (a) | 67,818 | 499,140 |
| | 16,036,179 |
Financial Services 4.2% |
Berkshire Hathaway, Inc., Class B (a) | 55,625 | 22,068,106 |
Corpay, Inc. (a) | 2,207 | 666,823 |
Fidelity National Information Services, Inc. | 18,114 | 1,230,303 |
Fiserv, Inc. (a) | 18,349 | 2,801,342 |
Global Payments, Inc. | 7,961 | 977,372 |
Jack Henry & Associates, Inc. | 2,226 | 362,148 |
Mastercard, Inc., Class A | 25,223 | 11,380,617 |
PayPal Holdings, Inc. (a) | 32,766 | 2,225,467 |
Visa, Inc., Class A | 48,353 | 12,988,099 |
| | 54,700,277 |
Food Products 0.8% |
Archer-Daniels-Midland Co. | 16,301 | 956,217 |
Bunge Global SA | 4,441 | 451,916 |
Campbell Soup Co. | 6,015 | 274,946 |
Conagra Brands, Inc. | 14,607 | 449,603 |
General Mills, Inc. | 17,362 | 1,223,326 |
Hershey Co. (The) | 4,581 | 888,347 |
Hormel Foods Corp. | 8,851 | 314,742 |
J M Smucker Co. (The) | 3,243 | 372,459 |
Kellanova | 8,060 | 466,352 |
Kraft Heinz Co. (The) | 24,365 | 940,733 |
Lamb Weston Holdings, Inc. | 4,414 | 367,863 |
McCormick & Co., Inc. (Non-Voting) | 7,687 | 584,673 |
Mondelez International, Inc., Class A | 41,165 | 2,961,410 |
Tyson Foods, Inc., Class A | 8,754 | 530,930 |
| | 10,783,517 |
Gas Utilities 0.0% ‡ |
Atmos Energy Corp. | 4,612 | 543,755 |
Ground Transportation 1.0% |
CSX Corp. | 60,415 | 2,006,986 |
JB Hunt Transport Services, Inc. | 2,493 | 405,287 |
Norfolk Southern Corp. | 6,906 | 1,590,590 |
Old Dominion Freight Line, Inc. | 5,470 | 993,953 |
Uber Technologies, Inc. (a) | 62,914 | 4,169,311 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Ground Transportation (continued) |
Union Pacific Corp. | 18,642 | $ 4,421,137 |
| | 13,587,264 |
Health Care Equipment & Supplies 2.5% |
Abbott Laboratories | 53,076 | 5,624,464 |
Align Technology, Inc. (a) | 2,178 | 615,024 |
Baxter International, Inc. | 15,526 | 626,785 |
Becton Dickinson & Co. | 8,832 | 2,071,987 |
Boston Scientific Corp. (a) | 44,788 | 3,218,913 |
Cooper Cos., Inc. (The) | 6,076 | 541,129 |
DexCom, Inc. (a) | 11,786 | 1,501,418 |
Edwards Lifesciences Corp. (a) | 18,542 | 1,569,951 |
GE HealthCare Technologies, Inc. | 12,946 | 987,003 |
Hologic, Inc. (a) | 7,176 | 543,725 |
IDEXX Laboratories, Inc. (a) | 2,539 | 1,251,118 |
Insulet Corp. (a) | 2,134 | 366,920 |
Intuitive Surgical, Inc. (a) | 10,772 | 3,992,319 |
Medtronic plc | 40,651 | 3,261,836 |
ResMed, Inc. | 4,495 | 961,885 |
Solventum Corp. (a) | 4,224 | 274,602 |
STERIS plc | 3,021 | 617,976 |
Stryker Corp. | 10,338 | 3,478,737 |
Teleflex, Inc. | 1,436 | 299,765 |
Zimmer Biomet Holdings, Inc. | 6,387 | 768,228 |
| | 32,573,785 |
Health Care Providers & Services 2.6% |
Cardinal Health, Inc. | 7,436 | 766,205 |
Cencora, Inc. | 5,062 | 1,210,071 |
Centene Corp. (a) | 16,341 | 1,193,874 |
Cigna Group (The) | 8,942 | 3,192,652 |
CVS Health Corp. | 38,474 | 2,605,075 |
DaVita, Inc. (a) | 1,646 | 228,810 |
Elevance Health, Inc. | 7,183 | 3,796,790 |
HCA Healthcare, Inc. | 6,055 | 1,875,960 |
Henry Schein, Inc. (a) | 3,973 | 275,249 |
Humana, Inc. | 3,737 | 1,128,910 |
Laboratory Corp. of America Holdings | 2,594 | 522,354 |
McKesson Corp. | 4,017 | 2,157,973 |
Molina Healthcare, Inc. (a) | 1,773 | 606,543 |
Quest Diagnostics, Inc. | 3,394 | 468,983 |
UnitedHealth Group, Inc. | 28,277 | 13,677,585 |
Universal Health Services, Inc., Class B | 1,864 | 317,682 |
| | 34,024,716 |
Health Care REITs 0.2% |
Healthpeak Properties, Inc. | 21,643 | 402,776 |
Ventas, Inc. | 12,297 | 544,511 |
| Shares | Value |
|
Health Care REITs (continued) |
Welltower, Inc. | 16,921 | $ 1,612,233 |
| | 2,559,520 |
Hotel & Resort REITs 0.0% ‡ |
Host Hotels & Resorts, Inc. | 21,559 | 406,818 |
Hotels, Restaurants & Leisure 2.1% |
Airbnb, Inc., Class A (a) | 13,316 | 2,111,518 |
Booking Holdings, Inc. | 1,067 | 3,683,316 |
Caesars Entertainment, Inc. (a) | 6,592 | 236,125 |
Carnival Corp. (a) | 30,790 | 456,308 |
Chipotle Mexican Grill, Inc. (a) | 838 | 2,647,745 |
Darden Restaurants, Inc. | 3,651 | 560,100 |
Domino's Pizza, Inc. | 1,066 | 564,202 |
Expedia Group, Inc. (a) | 3,998 | 538,251 |
Hilton Worldwide Holdings, Inc. | 7,709 | 1,520,831 |
Las Vegas Sands Corp. | 11,290 | 500,824 |
Marriott International, Inc., Class A | 7,542 | 1,780,892 |
McDonald's Corp. | 22,176 | 6,054,935 |
MGM Resorts International (a) | 8,352 | 329,403 |
Norwegian Cruise Line Holdings Ltd. (a) | 13,002 | 245,998 |
Royal Caribbean Cruises Ltd. (a) | 7,212 | 1,007,012 |
Starbucks Corp. | 34,614 | 3,062,993 |
Wynn Resorts Ltd. | 2,913 | 266,976 |
Yum! Brands, Inc. | 8,591 | 1,213,479 |
| | 26,780,908 |
Household Durables 0.4% |
DR Horton, Inc. | 9,130 | 1,300,934 |
Garmin Ltd. | 4,678 | 675,830 |
Lennar Corp., Class A | 7,556 | 1,145,641 |
Mohawk Industries, Inc. (a) | 1,615 | 186,242 |
NVR, Inc. (a) | 98 | 729,007 |
PulteGroup, Inc. | 6,485 | 722,559 |
| | 4,760,213 |
Household Products 1.3% |
Church & Dwight Co., Inc. | 7,530 | 812,412 |
Clorox Co. (The) | 3,794 | 561,019 |
Colgate-Palmolive Co. | 25,173 | 2,313,902 |
Kimberly-Clark Corp. | 10,299 | 1,406,122 |
Procter & Gamble Co. (The) | 71,938 | 11,740,282 |
| | 16,833,737 |
Independent Power and Renewable Electricity Producers 0.0% ‡ |
AES Corp. (The) | 20,464 | 366,306 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay S&P 500 Index Fund |
| Shares | Value |
Common Stocks (continued) |
Industrial Conglomerates 0.4% |
3M Co. | 16,897 | $ 1,630,730 |
Honeywell International, Inc. | 20,155 | 3,884,473 |
| | 5,515,203 |
Industrial REITs 0.2% |
Prologis, Inc. | 28,248 | 2,882,708 |
Insurance 2.1% |
Aflac, Inc. | 16,094 | 1,346,263 |
Allstate Corp. (The) | 8,025 | 1,364,732 |
American International Group, Inc. | 21,463 | 1,616,379 |
Aon plc, Class A | 6,121 | 1,726,183 |
Arch Capital Group Ltd. (a) | 11,343 | 1,061,024 |
Arthur J. Gallagher & Co. | 6,628 | 1,555,525 |
Assurant, Inc. | 1,588 | 276,947 |
Brown & Brown, Inc. | 7,219 | 588,637 |
Chubb Ltd. | 12,390 | 3,080,650 |
Cincinnati Financial Corp. | 4,800 | 555,312 |
Everest Group Ltd. | 1,327 | 486,226 |
Globe Life, Inc. | 2,618 | 199,413 |
Hartford Financial Services Group, Inc. (The) | 9,126 | 884,218 |
Loews Corp. | 5,570 | 418,586 |
Marsh & McLennan Cos., Inc. | 15,042 | 2,999,826 |
MetLife, Inc. | 18,768 | 1,334,029 |
Principal Financial Group, Inc. | 6,703 | 530,475 |
Progressive Corp. (The) | 17,894 | 3,726,426 |
Prudential Financial, Inc. | 11,037 | 1,219,368 |
Travelers Cos., Inc. (The) | 6,977 | 1,480,240 |
W R Berkley Corp. | 6,196 | 476,906 |
Willis Towers Watson plc | 3,135 | 787,324 |
| | 27,714,689 |
Interactive Media & Services 6.4% |
Alphabet, Inc. (a) | | |
Class A | 180,164 | 29,327,096 |
Class C | 150,838 | 24,833,968 |
|
Match Group, Inc. (a) | 8,307 | 256,022 |
Meta Platforms, Inc., Class A | 67,261 | 28,933,664 |
| | 83,350,750 |
IT Services 1.1% |
Accenture plc, Class A | 19,169 | 5,768,144 |
Akamai Technologies, Inc. (a) | 4,609 | 465,186 |
Cognizant Technology Solutions Corp., Class A | 15,225 | 999,978 |
EPAM Systems, Inc. (a) | 1,763 | 414,763 |
| Shares | Value |
|
IT Services (continued) |
Gartner, Inc. (a) | 2,383 | $ 983,202 |
International Business Machines Corp. | 27,974 | 4,649,279 |
VeriSign, Inc. (a) | 2,694 | 456,579 |
| | 13,737,131 |
Leisure Products 0.0% ‡ |
Hasbro, Inc. | 3,986 | 244,342 |
Life Sciences Tools & Services 1.4% |
Agilent Technologies, Inc. | 8,959 | 1,227,741 |
Bio-Rad Laboratories, Inc., Class A (a) | 640 | 172,640 |
Bio-Techne Corp. | 4,806 | 303,787 |
Charles River Laboratories International, Inc. (a) | 1,568 | 359,072 |
Danaher Corp. | 20,106 | 4,958,542 |
Illumina, Inc. (a) | 4,853 | 597,162 |
IQVIA Holdings, Inc. (a) | 5,579 | 1,293,045 |
Mettler-Toledo International, Inc. (a) | 657 | 807,913 |
Revvity, Inc. | 3,772 | 386,517 |
Thermo Fisher Scientific, Inc. | 11,812 | 6,717,720 |
Waters Corp. (a) | 1,807 | 558,435 |
West Pharmaceutical Services, Inc. | 2,262 | 808,620 |
| | 18,191,194 |
Machinery 1.8% |
Caterpillar, Inc. | 15,564 | 5,207,248 |
Cummins, Inc. | 4,166 | 1,176,853 |
Deere & Co. | 7,961 | 3,116,015 |
Dover Corp. | 4,276 | 766,687 |
Fortive Corp. | 10,722 | 807,045 |
IDEX Corp. | 2,312 | 509,704 |
Illinois Tool Works, Inc. | 8,313 | 2,029,286 |
Ingersoll Rand, Inc. | 12,376 | 1,154,928 |
Nordson Corp. | 1,659 | 428,337 |
Otis Worldwide Corp. | 12,396 | 1,130,515 |
PACCAR, Inc. | 15,992 | 1,696,911 |
Parker-Hannifin Corp. | 3,926 | 2,139,317 |
Pentair plc | 5,052 | 399,563 |
Snap-on, Inc. | 1,613 | 432,219 |
Stanley Black & Decker, Inc. | 4,686 | 428,300 |
Westinghouse Air Brake Technologies Corp. | 5,475 | 881,913 |
Xylem, Inc. | 7,368 | 962,998 |
| | 23,267,839 |
Media 0.6% |
Charter Communications, Inc., Class A (a) | 3,019 | 772,683 |
Comcast Corp., Class A | 121,141 | 4,616,683 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Media (continued) |
Fox Corp. | | |
Class A | 7,316 | $ 226,869 |
Class B | 4,032 | 115,638 |
|
Interpublic Group of Cos., Inc. (The) | 11,704 | 356,270 |
News Corp. | | |
Class A | 11,630 | 276,794 |
Class B | 3,509 | 86,111 |
|
Omnicom Group, Inc. | 6,049 | 561,589 |
Paramount Global, Class B | 14,744 | 167,934 |
| | 7,180,571 |
Metals & Mining 0.4% |
Freeport-McMoRan, Inc. | 43,840 | 2,189,370 |
Newmont Corp. | 35,235 | 1,431,950 |
Nucor Corp. | 7,516 | 1,266,671 |
Steel Dynamics, Inc. | 4,649 | 604,928 |
| | 5,492,919 |
Multi-Utilities 0.6% |
Ameren Corp. | 8,035 | 593,546 |
CenterPoint Energy, Inc. | 19,290 | 562,111 |
CMS Energy Corp. | 9,002 | 545,611 |
Consolidated Edison, Inc. | 10,551 | 996,014 |
Dominion Energy, Inc. | 25,583 | 1,304,221 |
DTE Energy Co. | 6,312 | 696,340 |
NiSource, Inc. | 12,629 | 351,844 |
Public Service Enterprise Group, Inc. | 15,229 | 1,052,019 |
Sempra | 19,240 | 1,378,161 |
WEC Energy Group, Inc. | 9,640 | 796,650 |
| | 8,276,517 |
Office REITs 0.1% |
Alexandria Real Estate Equities, Inc. | 4,814 | 557,798 |
Boston Properties, Inc. | 4,413 | 273,121 |
| | 830,919 |
Oil, Gas & Consumable Fuels 3.7% |
APA Corp. | 11,042 | 347,161 |
Chevron Corp. | 53,027 | 8,551,664 |
ConocoPhillips | 36,018 | 4,524,581 |
Coterra Energy, Inc. | 22,988 | 628,952 |
Devon Energy Corp. | 19,581 | 1,002,156 |
Diamondback Energy, Inc. | 5,470 | 1,100,181 |
EOG Resources, Inc. | 17,828 | 2,355,614 |
EQT Corp. | 12,571 | 503,971 |
Exxon Mobil Corp. | 121,404 | 14,358,451 |
Hess Corp. | 8,415 | 1,325,278 |
Kinder Morgan, Inc. | 59,122 | 1,080,750 |
| Shares | Value |
|
Oil, Gas & Consumable Fuels (continued) |
Marathon Oil Corp. | 17,886 | $ 480,239 |
Marathon Petroleum Corp. | 11,251 | 2,044,532 |
Occidental Petroleum Corp. | 20,122 | 1,330,869 |
ONEOK, Inc. | 17,810 | 1,409,127 |
Phillips 66 | 13,146 | 1,882,639 |
Pioneer Natural Resources Co. | 7,142 | 1,923,483 |
Targa Resources Corp. | 6,814 | 777,205 |
Valero Energy Corp. | 10,409 | 1,664,087 |
Williams Cos., Inc. (The) | 37,192 | 1,426,685 |
| | 48,717,625 |
Passenger Airlines 0.2% |
American Airlines Group, Inc. (a) | 20,003 | 270,241 |
Delta Air Lines, Inc. | 19,577 | 980,220 |
Southwest Airlines Co. | 18,242 | 473,197 |
United Airlines Holdings, Inc. (a) | 10,023 | 515,784 |
| | 2,239,442 |
Personal Care Products 0.2% |
Estee Lauder Cos., Inc. (The), Class A | 7,121 | 1,044,722 |
Kenvue, Inc. | 52,672 | 991,287 |
| | 2,036,009 |
Pharmaceuticals 3.8% |
Bristol-Myers Squibb Co. | 62,208 | 2,733,420 |
Catalent, Inc. (a) | 5,526 | 308,627 |
Eli Lilly & Co. | 24,379 | 19,042,437 |
Johnson & Johnson | 73,597 | 10,641,390 |
Merck & Co., Inc. | 77,472 | 10,010,932 |
Pfizer, Inc. | 172,625 | 4,422,652 |
Viatris, Inc. | 36,663 | 424,191 |
Zoetis, Inc. | 14,036 | 2,235,093 |
| | 49,818,742 |
Professional Services 0.7% |
Automatic Data Processing, Inc. | 12,559 | 3,037,896 |
Broadridge Financial Solutions, Inc. | 3,601 | 696,469 |
Dayforce, Inc. (a) | 4,773 | 292,919 |
Equifax, Inc. | 3,770 | 830,116 |
Jacobs Solutions, Inc. | 3,841 | 551,299 |
Leidos Holdings, Inc. | 4,202 | 589,204 |
Paychex, Inc. | 9,791 | 1,163,269 |
Paycom Software, Inc. | 1,469 | 276,143 |
Robert Half, Inc. | 3,184 | 220,142 |
Verisk Analytics, Inc. | 4,433 | 966,217 |
| | 8,623,674 |
Real Estate Management & Development 0.1% |
CBRE Group, Inc., Class A (a) | 9,092 | 790,004 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay S&P 500 Index Fund |
| Shares | Value |
Common Stocks (continued) |
Real Estate Management & Development (continued) |
CoStar Group, Inc. (a) | 12,485 | $ 1,142,752 |
| | 1,932,756 |
Residential REITs 0.3% |
AvalonBay Communities, Inc. | 4,337 | 822,165 |
Camden Property Trust | 3,263 | 325,256 |
Equity Residential | 10,552 | 679,549 |
Essex Property Trust, Inc. | 1,962 | 483,142 |
Invitation Homes, Inc. | 17,579 | 601,202 |
Mid-America Apartment Communities, Inc. | 3,566 | 463,580 |
UDR, Inc. | 9,249 | 352,202 |
| | 3,727,096 |
Retail REITs 0.3% |
Federal Realty Investment Trust | 2,245 | 233,862 |
Kimco Realty Corp. | 20,366 | 379,419 |
Realty Income Corp. | 25,426 | 1,361,308 |
Regency Centers Corp. | 5,020 | 297,284 |
Simon Property Group, Inc. | 9,964 | 1,400,241 |
| | 3,672,114 |
Semiconductors & Semiconductor Equipment 10.1% |
Advanced Micro Devices, Inc. (a) | 49,399 | 7,823,814 |
Analog Devices, Inc. | 15,159 | 3,041,047 |
Applied Materials, Inc. | 25,438 | 5,053,259 |
Broadcom, Inc. | 13,454 | 17,493,833 |
Enphase Energy, Inc. (a) | 4,151 | 451,463 |
First Solar, Inc. (a) | 3,265 | 575,619 |
Intel Corp. | 129,261 | 3,938,583 |
KLA Corp. | 4,134 | 2,849,525 |
Lam Research Corp. | 4,008 | 3,584,795 |
Microchip Technology, Inc. | 16,521 | 1,519,602 |
Micron Technology, Inc. | 33,749 | 3,812,287 |
Monolithic Power Systems, Inc. | 1,468 | 982,576 |
NVIDIA Corp. | 75,514 | 65,245,606 |
NXP Semiconductors NV | 7,880 | 2,018,777 |
ON Semiconductor Corp. (a) | 13,065 | 916,640 |
Qorvo, Inc. (a) | 2,952 | 344,912 |
QUALCOMM, Inc. | 34,119 | 5,658,636 |
Skyworks Solutions, Inc. | 4,899 | 522,184 |
Teradyne, Inc. | 4,672 | 543,447 |
Texas Instruments, Inc. | 27,799 | 4,904,300 |
| | 131,280,905 |
Software 10.2% |
Adobe, Inc. (a) | 13,819 | 6,395,848 |
ANSYS, Inc. (a) | 2,657 | 863,206 |
| Shares | Value |
|
Software (continued) |
Autodesk, Inc. (a) | 6,540 | $ 1,392,039 |
Cadence Design Systems, Inc. (a) | 8,318 | 2,292,690 |
Fair Isaac Corp. (a) | 760 | 861,331 |
Fortinet, Inc. (a) | 19,486 | 1,231,126 |
Gen Digital, Inc. | 17,135 | 345,099 |
Intuit, Inc. | 8,558 | 5,354,056 |
Microsoft Corp. | 227,168 | 88,443,318 |
Oracle Corp. | 48,744 | 5,544,630 |
Palo Alto Networks, Inc. (a) | 9,640 | 2,804,180 |
PTC, Inc. (a) | 3,655 | 648,543 |
Roper Technologies, Inc. | 3,266 | 1,670,428 |
Salesforce, Inc. | 29,594 | 7,959,010 |
ServiceNow, Inc. (a) | 6,267 | 4,345,099 |
Synopsys, Inc. (a) | 4,663 | 2,474,141 |
Tyler Technologies, Inc. (a) | 1,288 | 594,476 |
| | 133,219,220 |
Specialized REITs 0.9% |
American Tower Corp. | 14,252 | 2,445,073 |
Crown Castle, Inc. | 13,259 | 1,243,429 |
Digital Realty Trust, Inc. | 9,259 | 1,284,964 |
Equinix, Inc. | 2,870 | 2,040,886 |
Extra Space Storage, Inc. | 6,457 | 867,046 |
Iron Mountain, Inc. | 8,924 | 691,788 |
Public Storage | 4,837 | 1,254,960 |
SBA Communications Corp. | 3,298 | 613,824 |
VICI Properties, Inc. | 31,616 | 902,637 |
Weyerhaeuser Co. | 22,309 | 673,062 |
| | 12,017,669 |
Specialty Retail 1.9% |
AutoZone, Inc. (a) | 529 | 1,563,936 |
Bath & Body Works, Inc. | 6,908 | 313,761 |
Best Buy Co., Inc. | 5,861 | 431,604 |
CarMax, Inc. (a) | 4,828 | 328,159 |
Home Depot, Inc. (The) | 30,428 | 10,169,646 |
Lowe's Cos., Inc. | 17,583 | 4,008,748 |
O'Reilly Automotive, Inc. (a) | 1,806 | 1,829,948 |
Ross Stores, Inc. | 10,293 | 1,333,458 |
TJX Cos., Inc. (The) | 34,843 | 3,278,378 |
Tractor Supply Co. | 3,304 | 902,256 |
Ulta Beauty, Inc. (a) | 1,485 | 601,188 |
| | 24,761,082 |
Technology Hardware, Storage & Peripherals 6.1% |
Apple, Inc. (b) | 443,772 | 75,587,685 |
Hewlett Packard Enterprise Co. | 39,744 | 675,648 |
HP, Inc. | 26,659 | 748,851 |
NetApp, Inc. | 6,299 | 643,821 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Technology Hardware, Storage & Peripherals (continued) |
Seagate Technology Holdings plc | 5,957 | $ 511,765 |
Super Micro Computer, Inc. (a) | 1,539 | 1,321,693 |
Western Digital Corp. (a) | 9,910 | 701,925 |
| | 80,191,388 |
Textiles, Apparel & Luxury Goods 0.4% |
Deckers Outdoor Corp. (a) | 785 | 642,499 |
Lululemon Athletica, Inc. (a) | 3,511 | 1,266,066 |
NIKE, Inc., Class B | 37,214 | 3,433,364 |
Ralph Lauren Corp. | 1,194 | 195,386 |
Tapestry, Inc. | 7,004 | 279,600 |
| | 5,816,915 |
Tobacco 0.5% |
Altria Group, Inc. | 53,914 | 2,361,973 |
Philip Morris International, Inc. | 47,463 | 4,506,137 |
| | 6,868,110 |
Trading Companies & Distributors 0.3% |
Fastenal Co. | 17,495 | 1,188,610 |
United Rentals, Inc. | 2,054 | 1,372,052 |
WW Grainger, Inc. | 1,351 | 1,244,744 |
| | 3,805,406 |
Water Utilities 0.1% |
American Water Works Co., Inc. | 5,950 | 727,804 |
Wireless Telecommunication Services 0.2% |
T-Mobile US, Inc. | 15,966 | 2,621,138 |
Total Common Stocks (c) (Cost $241,583,024) | | 1,291,176,807 |
|
| Number of Rights | |
|
Rights 0.0% ‡ |
Health Care Equipment & Supplies 0.0% ‡ |
ABIOMED, Inc., CVR (a)(d)(e) | 1,477 | 1,507 |
Total Rights (Cost $1,507) | | 1,507 |
|
| Shares | | Value |
|
Short-Term Investments 1.5% |
Affiliated Investment Company 0.0% ‡ |
MainStay U.S. Government Liquidity Fund, 5.242% (f) | 98,303 | | $ 98,303 |
|
| Principal Amount | | |
|
U.S. Treasury Debt 1.5% |
U.S. Treasury Bills | | | |
5.282%, due 6/25/24 (b)(g) | $ 19,800,000 | | 19,640,356 |
Total Short-Term Investments (Cost $19,740,865) | | | 19,738,659 |
Total Investments (Cost $261,325,396) | 100.5% | | 1,310,916,973 |
Other Assets, Less Liabilities | (0.5) | | (6,522,779) |
Net Assets | 100.0% | | $ 1,304,394,194 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
‡ | Less than one-tenth of a percent. |
(a) | Non-income producing security. |
(b) | Represents a security, or portion thereof, which was maintained at the broker as collateral for futures contracts. |
(c) | The combined market value of common stocks and notional value of Standard & Poor’s 500 Index futures contracts represents 99.9% of the Fund’s net assets. |
(d) | Illiquid security—As of April 30, 2024, the total market value deemed illiquid under procedures approved by the Board of Trustees was $1,507, which represented less than one-tenth of a percent of the Fund’s net assets. |
(e) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(f) | Current yield as of April 30, 2024. |
(g) | Interest rate shown represents yield to maturity. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay S&P 500 Index Fund |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 43 | $ 3,474 | $ (3,419) | $ — | $ — | $ 98 | $ 1 | $ — | 98 |
Futures Contracts
As of April 30, 2024, the Fund held the following futures contracts:
Type | Number of Contracts | Expiration Date | Value at Trade Date | Current Notional Amount | Unrealized Appreciation (Depreciation)1 |
Long Contracts | | | | | |
S&P 500 E-Mini Index | 47 | June 2024 | $ 12,263,163 | $ 11,907,450 | $ (355,713) |
1. | Represents the difference between the value of the contracts at the time they were opened and the value as of April 30, 2024. |
Abbreviation(s): |
REIT—Real Estate Investment Trust |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets and liabilities:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | $ 1,291,176,807 | | $ — | | $ — | | $ 1,291,176,807 |
Rights | — | | — | | 1,507 | | 1,507 |
Short-Term Investments | | | | | | | |
Affiliated Investment Company | 98,303 | | — | | — | | 98,303 |
U.S. Treasury Debt | — | | 19,640,356 | | — | | 19,640,356 |
Total Short-Term Investments | 98,303 | | 19,640,356 | | — | | 19,738,659 |
Total Investments in Securities | $ 1,291,275,110 | | $ 19,640,356 | | $ 1,507 | | $ 1,310,916,973 |
Liability Valuation Inputs | | | | | | | |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | $ (355,713) | | $ — | | $ — | | $ (355,713) |
(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 (depreciation) as shown on the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $261,227,093) | $1,310,818,670 |
Investment in affiliated investment companies, at value (identified cost $98,303) | 98,303 |
Cash | 975 |
Receivables: | |
Fund shares sold | 1,148,505 |
Dividends | 779,820 |
Other assets | 63,771 |
Total assets | 1,312,910,044 |
Liabilities |
Payables: | |
Fund shares redeemed | 7,577,053 |
Variation margin on futures contracts | 306,945 |
NYLIFE Distributors (See Note 3) | 216,552 |
Manager (See Note 3) | 171,062 |
Transfer agent (See Note 3) | 162,420 |
Professional fees | 41,567 |
Custodian | 13,179 |
Securities lending | 339 |
Accrued expenses | 26,733 |
Total liabilities | 8,515,850 |
Net assets | $1,304,394,194 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 23,217 |
Additional paid-in-capital | 201,882,340 |
| 201,905,557 |
Total distributable earnings (loss) | 1,102,488,637 |
Net assets | $1,304,394,194 |
Class A | |
Net assets applicable to outstanding shares | $996,336,859 |
Shares of beneficial interest outstanding | 17,814,263 |
Net asset value per share outstanding | $ 55.93 |
Maximum sales charge (1.50% of offering price) | 0.85 |
Maximum offering price per share outstanding | $ 56.78 |
Investor Class | |
Net assets applicable to outstanding shares | $ 42,414,072 |
Shares of beneficial interest outstanding | 759,948 |
Net asset value per share outstanding | $ 55.81 |
Maximum sales charge (1.00% of offering price) | 0.56 |
Maximum offering price per share outstanding | $ 56.37 |
Class I | |
Net assets applicable to outstanding shares | $264,276,119 |
Shares of beneficial interest outstanding | 4,618,080 |
Net asset value and offering price per share outstanding | $ 57.23 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 1,367,144 |
Shares of beneficial interest outstanding | 24,515 |
Net asset value and offering price per share outstanding | $ 55.77 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay S&P 500 Index Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $2,437) | $ 9,772,273 |
Interest | 425,943 |
Securities lending, net | 7,947 |
Dividends-affiliated | 1,438 |
Total income | 10,207,601 |
Expenses | |
Manager (See Note 3) | 1,022,030 |
Distribution/Service—Class A (See Note 3) | 1,183,808 |
Distribution/Service—Investor Class (See Note 3) | 56,701 |
Distribution/Service—SIMPLE Class (See Note 3) | 2,105 |
Transfer agent (See Note 3) | 488,395 |
Professional fees | 66,882 |
Registration | 35,932 |
Shareholder communication | 17,496 |
Trustees | 15,196 |
Custodian | 14,239 |
Miscellaneous | 74,603 |
Total expenses before waiver/reimbursement | 2,977,387 |
Expense waiver/reimbursement from Manager (See Note 3) | (22,054) |
Net expenses | 2,955,333 |
Net investment income (loss) | 7,252,268 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | 48,471,848 |
Futures transactions | 2,087,984 |
Net realized gain (loss) | 50,559,832 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 173,576,819 |
Futures contracts | (240,110) |
Net change in unrealized appreciation (depreciation) | 173,336,709 |
Net realized and unrealized gain (loss) | 223,896,541 |
Net increase (decrease) in net assets resulting from operations | $231,148,809 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 7,252,268 | $ 13,979,588 |
Net realized gain (loss) | 50,559,832 | 36,324,383 |
Net change in unrealized appreciation (depreciation) | 173,336,709 | 53,207,255 |
Net increase (decrease) in net assets resulting from operations | 231,148,809 | 103,511,226 |
Distributions to shareholders: | | |
Class A | (36,105,584) | (70,919,309) |
Investor Class | (1,832,133) | (3,958,067) |
Class I | (12,194,148) | (25,518,452) |
SIMPLE Class | (18,981) | (17,326) |
Total distributions to shareholders | (50,150,846) | (100,413,154) |
Capital share transactions: | | |
Net proceeds from sales of shares | 86,578,186 | 116,334,052 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 49,375,768 | 98,862,685 |
Cost of shares redeemed | (141,137,909) | (172,019,334) |
Increase (decrease) in net assets derived from capital share transactions | (5,183,955) | 43,177,403 |
Net increase (decrease) in net assets | 175,814,008 | 46,275,475 |
Net Assets |
Beginning of period | 1,128,580,186 | 1,082,304,711 |
End of period | $1,304,394,194 | $1,128,580,186 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay S&P 500 Index Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 48.33 | | $ 48.54 | | $ 59.77 | | $ 45.82 | | $ 49.60 | | $ 49.27 |
Net investment income (loss) (a) | 0.29 | | 0.56 | | 0.52 | | 0.49 | | 0.58 | | 0.67 |
Net realized and unrealized gain (loss) | 9.45 | | 3.75 | | (9.12) | | 17.71 | | 3.44 | | 5.52 |
Total from investment operations | 9.74 | | 4.31 | | (8.60) | | 18.20 | | 4.02 | | 6.19 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.58) | | (0.57) | | (0.53) | | (0.55) | | (0.91) | | (0.77) |
From net realized gain on investments | (1.56) | | (3.95) | | (2.10) | | (3.70) | | (6.89) | | (5.09) |
Total distributions | (2.14) | | (4.52) | | (2.63) | | (4.25) | | (7.80) | | (5.86) |
Net asset value at end of period | $ 55.93 | | $ 48.33 | | $ 48.54 | | $ 59.77 | | $ 45.82 | | $ 49.60 |
Total investment return (b) | 20.64% | | 9.58% | | (15.03)% | | 42.19% | | 9.21% | | 13.80% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.08%†† | | 1.16% | | 0.99% | | 0.92% | | 1.32% | | 1.44% |
Net expenses (c) | 0.51%†† | | 0.52% | | 0.52% | | 0.50% | | 0.54% | | 0.54% |
Portfolio turnover rate | 1% | | 2% | | 2% | | 5% | | 15% | | 3% |
Net assets at end of period (in 000’s) | $ 996,337 | | $ 819,687 | | $ 763,996 | | $ 894,565 | | $ 602,036 | | $ 559,780 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 48.18 | | $ 48.39 | | $ 59.55 | | $ 45.68 | | $ 49.50 | | $ 49.18 |
Net investment income (loss) (a) | 0.25 | | 0.47 | | 0.43 | | 0.40 | | 0.51 | | 0.59 |
Net realized and unrealized gain (loss) | 9.43 | | 3.74 | | (9.10) | | 17.63 | | 3.43 | | 5.52 |
Total from investment operations | 9.68 | | 4.21 | | (8.67) | | 18.03 | | 3.94 | | 6.11 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.49) | | (0.47) | | (0.39) | | (0.46) | | (0.87) | | (0.70) |
From net realized gain on investments | (1.56) | | (3.95) | | (2.10) | | (3.70) | | (6.89) | | (5.09) |
Total distributions | (2.05) | | (4.42) | | (2.49) | | (4.16) | | (7.76) | | (5.79) |
Net asset value at end of period | $ 55.81 | | $ 48.18 | | $ 48.39 | | $ 59.55 | | $ 45.68 | | $ 49.50 |
Total investment return (b) | 20.55% | | 9.37% | | (15.18)% | | 41.89% | | 9.03% | | 13.62% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.92%†† | | 0.99% | | 0.80% | | 0.75% | | 1.16% | | 1.26% |
Net expenses (c) | 0.70%†† | | 0.70% | | 0.70% | | 0.70% | | 0.70% | | 0.70% |
Expenses (before waiver/reimbursement) (c) | 0.80%†† | | 0.84% | | 0.79% | | 0.82% | | 0.88% | | 0.89% |
Portfolio turnover rate | 1% | | 2% | | 2% | | 5% | | 15% | | 3% |
Net assets at end of period (in 000's) | $ 42,414 | | $ 43,009 | | $ 45,102 | | $ 58,363 | | $ 55,546 | | $ 54,505 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
21
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 49.45 | | $ 49.58 | | $ 60.97 | | $ 46.66 | | $ 50.38 | | $ 49.97 |
Net investment income (loss) (a) | 0.37 | | 0.70 | | 0.67 | | 0.64 | | 0.70 | | 0.81 |
Net realized and unrealized gain (loss) | 9.67 | | 3.82 | | (9.30) | | 18.03 | | 3.50 | | 5.59 |
Total from investment operations | 10.04 | | 4.52 | | (8.63) | | 18.67 | | 4.20 | | 6.40 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.70) | | (0.70) | | (0.66) | | (0.66) | | (1.03) | | (0.90) |
From net realized gain on investments | (1.56) | | (3.95) | | (2.10) | | (3.70) | | (6.89) | | (5.09) |
Total distributions | (2.26) | | (4.65) | | (2.76) | | (4.36) | | (7.92) | | (5.99) |
Net asset value at end of period | $ 57.23 | | $ 49.45 | | $ 49.58 | | $ 60.97 | | $ 46.66 | | $ 50.38 |
Total investment return (b) | 20.82% | | 9.84% | | (14.82)% | | 42.56% | | 9.47% | | 14.08% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.35%†† | | 1.41% | | 1.23% | | 1.19% | | 1.56% | | 1.74% |
Net expenses (c) | 0.26%†† | | 0.27% | | 0.26% | | 0.25% | | 0.29% | | 0.29% |
Portfolio turnover rate | 1% | | 2% | | 2% | | 5% | | 15% | | 3% |
Net assets at end of period (in 000’s) | $ 264,276 | | $ 265,489 | | $ 273,022 | | $ 483,174 | | $ 436,446 | | $ 399,842 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 48.19 | | $ 48.43 | | $ 59.73 | | $ 45.65 | | $ 48.83** |
Net investment income (loss) (a) | 0.22 | | 0.40 | | 0.29 | | 0.21 | | 0.02 |
Net realized and unrealized gain (loss) | 9.44 | | 3.75 | | (9.11) | | 17.74 | | (3.20) |
Total from investment operations | 9.66 | | 4.15 | | (8.82) | | 17.95 | | (3.18) |
Less distributions: | | | | | | | | | |
From net investment income | (0.52) | | (0.44) | | (0.38) | | (0.17) | | — |
From net realized gain on investments | (1.56) | | (3.95) | | (2.10) | | (3.70) | | — |
Total distributions | (2.08) | | (4.39) | | (2.48) | | (3.87) | | — |
Net asset value at end of period | $ 55.77 | | $ 48.19 | | $ 48.43 | | $ 59.73 | | $ 45.65 |
Total investment return (b) | 20.51% | | 9.24% | | (15.39)% | | 41.54% | | (6.51)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 0.79%†† | | 0.82% | | 0.56% | | 0.39% | | 0.30%†† |
Net expenses (c) | 0.75%†† | | 0.82%(d) | | 0.95% | | 0.95% | | 0.95%†† |
Expenses (before waiver/reimbursement) (c) | 0.75%†† | | 0.82% | | 1.04% | | 1.06% | | 1.15%†† |
Portfolio turnover rate | 1% | | 2% | | 2% | | 5% | | 15% |
Net assets at end of period (in 000’s) | $ 1,367 | | $ 395 | | $ 185 | | $ 68 | | $ 23 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | Expense waiver/reimbursement less than 0.01%. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay S&P 500 Index Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay S&P 500 Index Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | January 2, 2004 |
Investor Class | February 28, 2008 |
Class I | January 2, 1991 |
SIMPLE Class | August 31, 2020 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class I and SIMPLE Class shares are offered at NAV without a sales charge. Investor Class shares may convert automatically to Class A shares. SIMPLE Class shares convert to Class A shares, or Investor Class shares if you are not eligible to hold Class A shares, at the end of the calendar quarter, ten years after the date they were purchased. Share class conversions are based on the relevant NAVs of the two classes at the time of the conversion, and no sales load or other charge is imposed. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class A, Investor Class and SIMPLE Class 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 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 is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent
Notes to Financial Statements (Unaudited) (continued)
buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any
restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter
24 | MainStay S&P 500 Index Fund |
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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
A portfolio investment may be classified as an illiquid investment under the Trust's written liquidity risk management program and related procedures (“Liquidity Program”). Illiquidity of an investment might prevent the sale of such investment at a time when the Manager or the Subadvisor might wish to sell, and these investments could have the effect of decreasing the overall level of the Fund's liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid investments, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary materially from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid investments may result in a loss or may be costly to the Fund. An illiquid investment is any investment that the Manager or Subadvisor reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The liquidity classification of each investment will be made using information obtained after reasonable inquiry and taking into account, among other things, relevant market, trading and investment-specific considerations in accordance with the Liquidity Program. Illiquid investments are often fair valued in accordance with the Fund's procedures described above. The liquidity of the Fund's investments was determined as of April 30, 2024, and can change at any time.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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
Notes to Financial Statements (Unaudited) (continued)
based on the value of a financial instrument (e.g., foreign currency, interest rate, security or securities index). The Fund is subject to risks such as market price risk, leverage risk, liquidity risk, counterparty risk, operational risk, legal risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation 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 or futures commission merchant 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. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. 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 the entire margin owed to the Fund, potentially resulting in a loss. The Fund may invest in futures contracts to seek enhanced returns or to reduce the risk of loss by hedging certain of its holdings. The Fund's investment in futures contracts and other derivatives may increase the volatility of the Fund's NAVs and may result in a 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement
between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(I) Rights and Warrants. Rights are certificates that permit the holder to purchase a certain number of shares, or a fractional share, of a new stock from the issuer at a specific price. Warrants are instruments that entitle the holder to buy an equity security at a specific price for a specific period of time. 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.
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 its investment in warrants if such warrants are not exercised by the date of its expiration. The Fund is exposed to risk until the sale or exercise of each right or warrant is completed.
(J) Securities Risk. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by, among other things, economic or political developments in a specific country, industry or region. Debt securities are also subject to the risks associated with changes in interest rates.
(K) 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 the 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.
(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
26 | MainStay S&P 500 Index Fund |
normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that may 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. The Manager believes 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.
(M) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures related to 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.
The Fund entered into futures contracts to provide an efficient means of maintaining liquidity while remaining fully invested in the market. These derivatives are not accounted for as hedging instruments.
Fair value of derivative instruments as of April 30, 2024:
Liability Derivatives | Equity Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized depreciation on futures contracts (a) | $(355,713) | $(355,713) |
Total Fair Value | $(355,713) | $(355,713) |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is 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, 2024:
Net Realized Gain (Loss) from: | Equity Contracts Risk | Total |
Futures Transactions | $2,087,984 | $2,087,984 |
Total Net Realized Gain (Loss) | $2,087,984 | $2,087,984 |
Net Change in Unrealized Appreciation (Depreciation) | Equity Contracts Risk | Total |
Futures Contracts | $(240,110) | $(240,110) |
Total Net Change in Unrealized Appreciation (Depreciation) | $(240,110) | $(240,110) |
Average Notional Amount | Total |
Futures Contracts Long | $16,046,854 |
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 Fund's Manager, pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. IndexIQ Advisors LLC (“IndexIQ” or the “Subadvisor”), a registered investment adviser and an affiliate of New York Life Investments, is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and IndexIQ, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.16% up to $2.5 billion and 0.15% in excess of $2.5 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.16% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) for Class A shares do not exceed 0.60% of the Fund’s 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 will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
Additionally, New York Life Investments has agreed to further voluntarily waive fees and/or reimburse expenses of the appropriate class of the Fund so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase and sale of portfolio investments, and acquired (underlying) fund fees and expenses) for Investor Class and SIMPLE Class shares of the Fund do not exceed 0.70% and 0.95%, respectively, of the Fund’s average daily net assets. These voluntary waivers or reimbursements may be discontinued at any time without notice.
Notes to Financial Statements (Unaudited) (continued)
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $1,022,030 and waived fees and/or reimbursed expenses in the amount of $22,054 and paid the Subadvisor fees in the amount of $499,988.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the SIMPLE Class Plan, SIMPLE Class shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the SIMPLE Class shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the SIMPLE Class shares, for a total 12b-1 fee of 0.50%. Class I shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $98,730 and $3,418, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A shares during the six-month period ended April 30, 2024, of $11,066.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $314,194 | $— |
Investor Class | 79,845 | — |
Class I | 94,119 | — |
SIMPLE Class | 237 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class I | $7,275,246 | 2.8% |
SIMPLE Class | 36,846 | 2.7 |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $263,193,669 | $1,060,892,995 | $(13,169,691) | $1,047,723,304 |
28 | MainStay S&P 500 Index Fund |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $ 13,195,334 |
Long-Term Capital Gains | 87,217,820 |
Total | $100,413,154 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month
period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $11,351 and $67,593, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,223,745 | $ 67,008,680 |
Shares issued to shareholders in reinvestment of distributions | 703,053 | 35,412,768 |
Shares redeemed | (1,232,521) | (66,702,405) |
Net increase (decrease) in shares outstanding before conversion | 694,277 | 35,719,043 |
Shares converted into Class A (See Note 1) | 172,712 | 9,512,607 |
Shares converted from Class A (See Note 1) | (14,055) | (754,697) |
Net increase (decrease) | 852,934 | $ 44,476,953 |
Year ended October 31, 2023: | | |
Shares sold | 1,750,215 | $ 84,806,867 |
Shares issued to shareholders in reinvestment of distributions | 1,548,312 | 69,503,695 |
Shares redeemed | (2,189,982) | (104,877,067) |
Net increase (decrease) in shares outstanding before conversion | 1,108,545 | 49,433,495 |
Shares converted into Class A (See Note 1) | 117,163 | 5,675,110 |
Shares converted from Class A (See Note 1) | (4,022) | (198,601) |
Net increase (decrease) | 1,221,686 | $ 54,910,004 |
|
Notes to Financial Statements (Unaudited) (continued)
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 51,347 | $ 2,777,582 |
Shares issued to shareholders in reinvestment of distributions | 36,372 | 1,829,507 |
Shares redeemed | (47,501) | (2,560,008) |
Net increase (decrease) in shares outstanding before conversion | 40,218 | 2,047,081 |
Shares converted into Investor Class (See Note 1) | 135 | 7,633 |
Shares converted from Investor Class (See Note 1) | (172,999) | (9,512,608) |
Net increase (decrease) | (132,646) | $ (7,457,894) |
Year ended October 31, 2023: | | |
Shares sold | 125,647 | $ 6,021,419 |
Shares issued to shareholders in reinvestment of distributions | 88,226 | 3,955,175 |
Shares redeemed | (135,951) | (6,582,846) |
Net increase (decrease) in shares outstanding before conversion | 77,922 | 3,393,748 |
Shares converted into Investor Class (See Note 1) | 36 | 1,680 |
Shares converted from Investor Class (See Note 1) | (117,425) | (5,675,110) |
Net increase (decrease) | (39,467) | $ (2,279,682) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 288,914 | $ 15,892,303 |
Shares issued to shareholders in reinvestment of distributions | 235,325 | 12,114,512 |
Shares redeemed | (1,288,371) | (71,854,651) |
Net increase (decrease) in shares outstanding before conversion | (764,132) | (43,847,836) |
Shares converted into Class I (See Note 1) | 13,615 | 747,065 |
Net increase (decrease) | (750,517) | $ (43,100,771) |
Year ended October 31, 2023: | | |
Shares sold | 518,286 | $ 25,310,822 |
Shares issued to shareholders in reinvestment of distributions | 553,927 | 25,386,489 |
Shares redeemed | (1,214,488) | (60,554,095) |
Net increase (decrease) in shares outstanding before conversion | (142,275) | (9,856,784) |
Shares converted into Class I (See Note 1) | 3,900 | 196,921 |
Net increase (decrease) | (138,375) | $ (9,659,863) |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 16,316 | $ 899,621 |
Shares issued to shareholders in reinvestment of distributions | 377 | 18,981 |
Shares redeemed | (377) | (20,845) |
Net increase (decrease) | 16,316 | $ 897,757 |
Year ended October 31, 2023: | | |
Shares sold | 4,100 | $ 194,944 |
Shares issued to shareholders in reinvestment of distributions | 386 | 17,326 |
Shares redeemed | (113) | (5,326) |
Net increase (decrease) | 4,373 | $ 206,944 |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
30 | MainStay S&P 500 Index Fund |
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to 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 IndexIQ Advisors LLC (“IndexIQ”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and IndexIQ in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and IndexIQ in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or IndexIQ that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, IndexIQ personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and IndexIQ; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and IndexIQ; (iii) the costs of the services provided, and profits realized, by New York Life Investments and IndexIQ with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and IndexIQ. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and IndexIQ resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and IndexIQ
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by IndexIQ, evaluating the performance of IndexIQ, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of IndexIQ and ongoing analysis of, and interactions with, IndexIQ with respect to, among other things, the Fund’s investment performance and risks as well as IndexIQ’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that IndexIQ provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated IndexIQ’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and IndexIQ’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at IndexIQ. The Board considered New York Life Investments’ and IndexIQ’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and IndexIQ and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered IndexIQ’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and IndexIQ regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
32 | MainStay S&P 500 Index Fund |
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of IndexIQ and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and IndexIQ
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including IndexIQ, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because IndexIQ is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and IndexIQ in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and IndexIQ, and profitability of New York Life Investments and its affiliates, including IndexIQ, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including IndexIQ’s, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and IndexIQ and acknowledged that New York Life Investments and IndexIQ must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial
position for New York Life Investments and IndexIQ to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including IndexIQ, due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to IndexIQ from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to IndexIQ in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including IndexIQ, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including IndexIQ, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to IndexIQ is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and IndexIQ on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
34 | MainStay S&P 500 Index Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
36 | MainStay S&P 500 Index Fund |
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022241 MS081-24 | MSSP10-06/24 |
(NYLIM) NL226
MainStay MacKay Short Duration High Income Fund
(formerly known as MainStay MacKay Short Duration High Yield Fund)
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares | Maximum 3.00% Initial Sales Charge | With sales charges | 12/17/2012 | 2.88% | 4.54% | 3.28% | 3.67% | 1.06% |
| | Excluding sales charges | | 6.07 | 7.78 | 3.92 | 3.99 | 1.06 |
Investor Class Shares3 | Maximum 2.50% Initial Sales Charge | With sales charges | 12/17/2012 | 3.38 | 5.00 | 3.19 | 3.58 | 1.11 |
| | Excluding sales charges | | 6.03 | 7.69 | 3.82 | 3.90 | 1.11 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 12/17/2012 | 4.54 | 5.79 | 3.05 | 3.11 | 1.86 |
| if Redeemed Within 18 months of Purchase | Excluding sales charges | | 5.54 | 6.79 | 3.05 | 3.11 | 1.86 |
Class I Shares | No Sales Charge | | 12/17/2012 | 6.19 | 8.03 | 4.17 | 4.24 | 0.81 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge was 3.00%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg U.S. Aggregate Bond Index2 | 4.97% | -1.47% | -0.16% | 1.20% |
ICE BofA 1-5 Year BB-B U.S. High Yield Corporate Cash Pay Index3 | 7.25 | 8.33 | 3.85 | 3.99 |
Morningstar High Yield Bond Category Average4 | 8.40 | 8.58 | 3.33 | 3.48 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg U.S. Aggregate Bond Index, which represents a broad measure of market performance, as a replacement for the ICE BofA 1-5 Year BB-B U.S. High Yield Corporate Cash Pay Index. The Bloomberg U.S. Aggregate Bond Index measures performance of 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. |
3. | The ICE BofA 1-5 Year BB-B U.S. High Yield Corporate Cash Pay Index, which is generally representative of the market sectors or types of investments in which the Fund invests, generally tracks the performance of BB-B rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market with maturities of 1 to 5 years. |
4. | The Morningstar High Yield Bond Category Average is representative of funds that concentrate on lower-quality bonds, which are riskier than those of higher-quality companies. These funds primarily invest in U.S. high-income debt securities where at least 65% or more of bond assets are not rated or are rated by a major agency such as Standard & Poor’s or Moody’s at the level of BB and below. Results are based on average total returns of similar funds with all dividends 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 MacKay Short Duration High Income Fund |
Cost in Dollars of a $1,000 Investment in MainStay MacKay Short Duration High Income Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,060.70 | $5.23 | $1,019.79 | $5.12 | 1.02% |
Investor Class Shares | $1,000.00 | $1,060.30 | $5.53 | $1,019.49 | $5.42 | 1.08% |
Class C Shares | $1,000.00 | $1,055.40 | $9.35 | $1,015.76 | $9.17 | 1.83% |
Class I Shares | $1,000.00 | $1,061.90 | $4.00 | $1,020.98 | $3.92 | 0.78% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Portfolio Composition as of April 30, 2024 (Unaudited)
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | TransDigm, Inc., 4.625%-6.75%, due 11/15/27–3/1/29 |
2. | CCO Holdings LLC, 5.00%-5.50%, due 5/1/26–2/1/28 |
3. | Great Outdoors Group LLC, 9.18%, due 3/6/28 |
4. | T-Mobile USA, Inc., 2.25%-5.375%, due 2/15/26–2/1/28 |
5. | IHO Verwaltungs GmbH, 4.75%-6.00%, due 9/15/26–5/15/27 |
6. | Churchill Downs, Inc., 4.75%-5.50%, due 4/1/27–1/15/28 |
7. | Carnival Corp., 4.00%-7.625%, due 3/1/26–8/1/28 |
8. | Ford Motor Credit Co. LLC, 2.30%-7.35%, due 9/8/24–5/12/28 |
9. | NMG Holding Co., Inc., 7.125%, due 4/1/26 |
10. | Mercer International, Inc., 5.50%-12.875%, due 1/15/26–10/1/28 |
8 | MainStay MacKay Short Duration High Income Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Long-Term Bonds 93.7% |
Convertible Bonds 0.8% |
Energy-Alternate Sources 0.3% |
NextEra Energy Partners LP (a) | | |
(zero coupon), due 6/15/24 | $ 1,700,000 | $ 1,688,100 |
(zero coupon), due 11/15/25 | 1,000,000 | 896,750 |
2.50%, due 6/15/26 | 5,000,000 | 4,511,075 |
| | 7,095,925 |
Media 0.4% |
Cable One, Inc. | | |
(zero coupon), due 3/15/26 | 6,250,000 | 5,421,875 |
1.125%, due 3/15/28 | 4,325,000 | 3,207,420 |
| | 8,629,295 |
Oil & Gas 0.1% |
Gulfport Energy Operating Corp. | | |
10.00% (10.00% Cash or 15.00% PIK), due 12/29/49 (b)(c) | 269,000 | 3,049,501 |
Total Convertible Bonds (Cost $16,121,829) | | 18,774,721 |
Corporate Bonds 75.8% |
Advertising 0.5% |
Lamar Media Corp. | | |
3.75%, due 2/15/28 | 5,500,000 | 5,076,310 |
4.875%, due 1/15/29 | 6,500,000 | 6,146,465 |
| | 11,222,775 |
Aerospace & Defense 2.8% |
AAR Escrow Issuer LLC | | |
6.75%, due 3/15/29 (a) | 1,700,000 | 1,709,180 |
F-Brasile SpA | | |
Series XR | | |
7.375%, due 8/15/26 (a) | 3,400,000 | 3,383,000 |
TransDigm, Inc. | | |
4.625%, due 1/15/29 | 4,000,000 | 3,663,960 |
5.50%, due 11/15/27 | 11,000,000 | 10,689,961 |
6.375%, due 3/1/29 (a) | 23,500,000 | 23,320,539 |
6.75%, due 8/15/28 (a) | 20,485,000 | 20,572,042 |
| | 63,338,682 |
Airlines 0.5% |
American Airlines, Inc. | | |
5.50%, due 4/20/26 (a) | 1,000,000 | 988,399 |
Delta Air Lines, Inc. | | |
4.50%, due 10/20/25 (a) | 1,000,500 | 986,718 |
7.00%, due 5/1/25 (a) | 4,375,000 | 4,407,575 |
7.375%, due 1/15/26 | 1,500,000 | 1,534,211 |
| Principal Amount | Value |
|
Airlines (continued) |
Mileage Plus Holdings LLC | | |
6.50%, due 6/20/27 (a) | $ 2,242,500 | $ 2,246,287 |
| | 10,163,190 |
Auto Manufacturers 1.1% |
Ford Motor Credit Co. LLC | | |
2.30%, due 2/10/25 | 5,000,000 | 4,858,865 |
3.375%, due 11/13/25 | 1,000,000 | 960,014 |
3.664%, due 9/8/24 | 1,150,000 | 1,140,393 |
4.389%, due 1/8/26 | 3,000,000 | 2,914,943 |
5.125%, due 6/16/25 | 2,000,000 | 1,978,871 |
6.80%, due 5/12/28 | 2,010,000 | 2,051,106 |
6.95%, due 3/6/26 | 5,000,000 | 5,067,655 |
6.95%, due 6/10/26 | 1,500,000 | 1,522,790 |
7.35%, due 11/4/27 | 2,000,000 | 2,068,705 |
PM General Purchaser LLC | | |
9.50%, due 10/1/28 (a) | 1,930,000 | 1,955,153 |
| | 24,518,495 |
Auto Parts & Equipment 2.4% |
Adient Global Holdings Ltd. (a) | | |
4.875%, due 8/15/26 | 4,000,000 | 3,846,315 |
7.00%, due 4/15/28 | 650,000 | 656,663 |
IHO Verwaltungs GmbH (a)(c) | | |
4.75% (4.75% Cash or 5.50% PIK), due 9/15/26 | 10,660,000 | 10,265,311 |
6.00% (6.00% Cash or 6.75% PIK), due 5/15/27 | 20,330,000 | 19,975,283 |
Phinia, Inc. | | |
6.75%, due 4/15/29 (a) | 4,500,000 | 4,516,027 |
Tenneco, Inc. | | |
8.00%, due 11/17/28 (a) | 6,000,000 | 5,606,182 |
ZF North America Capital, Inc. | | |
6.875%, due 4/14/28 (a) | 8,350,000 | 8,405,839 |
| | 53,271,620 |
Building Materials 0.8% |
James Hardie International Finance DAC | | |
5.00%, due 1/15/28 (a) | 8,987,000 | 8,639,204 |
Summit Materials LLC (a) | | |
5.25%, due 1/15/29 | 5,045,000 | 4,847,707 |
6.50%, due 3/15/27 | 5,705,000 | 5,690,238 |
| | 19,177,149 |
Chemicals 2.3% |
ASP Unifrax Holdings, Inc. | | |
5.25%, due 9/30/28 (a) | 2,400,000 | 1,445,916 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Chemicals (continued) |
Avient Corp. | | |
5.75%, due 5/15/25 (a) | $ 9,500,000 | $ 9,452,129 |
GPD Cos., Inc. | | |
10.125%, due 4/1/26 (a) | 8,900,000 | 8,357,383 |
NOVA Chemicals Corp. (a) | | |
5.25%, due 6/1/27 | 6,125,000 | 5,761,820 |
8.50%, due 11/15/28 | 4,935,000 | 5,187,075 |
9.00%, due 2/15/30 | 3,435,000 | 3,539,417 |
Olympus Water US Holding Corp. (a) | | |
7.125%, due 10/1/27 | 2,356,000 | 2,385,849 |
9.75%, due 11/15/28 | 6,800,000 | 7,215,607 |
SCIH Salt Holdings, Inc. | | |
4.875%, due 5/1/28 (a) | 2,000,000 | 1,859,577 |
SCIL IV LLC | | |
5.375%, due 11/1/26 (a) | 6,500,000 | 6,238,522 |
| | 51,443,295 |
Coal 0.3% |
Coronado Finance Pty. Ltd. | | |
10.75%, due 5/15/26 (a) | 5,666,000 | 5,859,169 |
Commercial Services 2.6% |
Alta Equipment Group, Inc. | | |
5.625%, due 4/15/26 (a) | 5,000,000 | 4,812,358 |
AMN Healthcare, Inc. | | |
4.625%, due 10/1/27 (a) | 2,500,000 | 2,348,330 |
Gartner, Inc. | | |
4.50%, due 7/1/28 (a) | 5,500,000 | 5,172,187 |
GEO Group, Inc. (The) | | |
8.625%, due 4/15/29 (a) | 1,360,000 | 1,376,809 |
Graham Holdings Co. | | |
5.75%, due 6/1/26 (a) | 12,522,000 | 12,359,448 |
Herc Holdings, Inc. | | |
5.50%, due 7/15/27 (a) | 2,000,000 | 1,942,506 |
Korn Ferry | | |
4.625%, due 12/15/27 (a) | 4,740,000 | 4,494,792 |
NESCO Holdings II, Inc. | | |
5.50%, due 4/15/29 (a) | 2,000,000 | 1,861,587 |
Service Corp. International | | |
7.50%, due 4/1/27 | 3,150,000 | 3,240,380 |
TriNet Group, Inc. | | |
3.50%, due 3/1/29 (a) | 500,000 | 437,787 |
United Rentals North America, Inc. | | |
3.875%, due 11/15/27 | 875,000 | 816,911 |
4.875%, due 1/15/28 | 3,450,000 | 3,306,925 |
| Principal Amount | Value |
|
Commercial Services (continued) |
Williams Scotsman, Inc. (a) | | |
4.625%, due 8/15/28 | $ 8,250,000 | $ 7,614,579 |
6.125%, due 6/15/25 | 8,219,000 | 8,188,179 |
| | 57,972,778 |
Cosmetics & Personal Care 0.5% |
Edgewell Personal Care Co. | | |
5.50%, due 6/1/28 (a) | 12,700,000 | 12,254,997 |
Distribution & Wholesale 0.5% |
G-III Apparel Group Ltd. | | |
7.875%, due 8/15/25 (a) | 4,765,000 | 4,788,244 |
H&E Equipment Services, Inc. | | |
3.875%, due 12/15/28 (a) | 4,700,000 | 4,158,972 |
Ritchie Bros Holdings, Inc. | | |
6.75%, due 3/15/28 (a) | 2,500,000 | 2,523,632 |
| | 11,470,848 |
Diversified Financial Services 1.5% |
AG TTMT Escrow Issuer LLC | | |
8.625%, due 9/30/27 (a) | 9,500,000 | 9,785,475 |
Cantor Fitzgerald LP | | |
7.20%, due 12/12/28 (a) | 2,000,000 | 2,029,520 |
Enact Holdings, Inc. | | |
6.50%, due 8/15/25 (a) | 12,110,000 | 12,099,101 |
Jefferies Finance LLC | | |
5.00%, due 8/15/28 (a) | 3,690,000 | 3,319,933 |
LPL Holdings, Inc. | | |
4.625%, due 11/15/27 (a) | 1,350,000 | 1,286,411 |
Radian Group, Inc. | | |
4.875%, due 3/15/27 | 1,000,000 | 962,609 |
StoneX Group, Inc. | | |
8.625%, due 6/15/25 (a) | 3,500,000 | 3,508,078 |
| | 32,991,127 |
Electric 1.6% |
Clearway Energy Operating LLC | | |
4.75%, due 3/15/28 (a) | 6,000,000 | 5,654,098 |
DPL, Inc. | | |
4.125%, due 7/1/25 | 3,650,000 | 3,545,452 |
NextEra Energy Operating Partners LP (a) | | |
3.875%, due 10/15/26 | 3,500,000 | 3,274,269 |
4.25%, due 7/15/24 | 4,030,000 | 4,012,912 |
4.50%, due 9/15/27 | 4,200,000 | 3,913,415 |
NRG Energy, Inc. | | |
6.625%, due 1/15/27 | 2,500,000 | 2,494,829 |
PG&E Corp. | | |
5.00%, due 7/1/28 | 3,850,000 | 3,668,387 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay MacKay Short Duration High Income Fund |
| Principal Amount | Value |
Corporate Bonds (continued) |
Electric (continued) |
TransAlta Corp. | | |
7.75%, due 11/15/29 | $ 1,000,000 | $ 1,023,492 |
Vistra Corp. | | |
8.00% (5 Year Treasury Constant Maturity Rate + 6.93%), due 10/15/26 (a)(d)(e) | 4,500,000 | 4,546,589 |
Vistra Operations Co. LLC | | |
5.625%, due 2/15/27 (a) | 5,000,000 | 4,864,747 |
| | 36,998,190 |
Electrical Components & Equipment 0.8% |
EnerSys | | |
4.375%, due 12/15/27 (a) | 4,385,000 | 4,101,020 |
WESCO Distribution, Inc. (a) | | |
6.375%, due 3/15/29 | 4,200,000 | 4,172,277 |
7.125%, due 6/15/25 | 7,650,000 | 7,655,041 |
7.25%, due 6/15/28 | 2,125,000 | 2,158,615 |
| | 18,086,953 |
Engineering & Construction 0.1% |
Weekley Homes LLC | | |
4.875%, due 9/15/28 (a) | 1,550,000 | 1,417,589 |
Entertainment 4.0% |
Affinity Interactive | | |
6.875%, due 12/15/27 (a) | 1,350,000 | 1,208,324 |
Boyne USA, Inc. | | |
4.75%, due 5/15/29 (a) | 2,500,000 | 2,274,850 |
Churchill Downs, Inc. (a) | | |
4.75%, due 1/15/28 | 8,995,000 | 8,498,599 |
5.50%, due 4/1/27 | 22,210,000 | 21,626,163 |
International Game Technology plc (a) | | |
4.125%, due 4/15/26 | 9,950,000 | 9,581,745 |
6.25%, due 1/15/27 | 1,630,000 | 1,627,623 |
6.50%, due 2/15/25 | 963,000 | 963,071 |
Jacobs Entertainment, Inc. (a) | | |
6.75%, due 2/15/29 | 500,000 | 474,304 |
6.75%, due 2/15/29 | 1,485,000 | 1,406,263 |
Light & Wonder International, Inc. | | |
7.00%, due 5/15/28 (a) | 6,500,000 | 6,522,568 |
Live Nation Entertainment, Inc. (a) | | |
4.75%, due 10/15/27 | 4,150,000 | 3,911,262 |
6.50%, due 5/15/27 | 15,150,000 | 15,179,774 |
Merlin Entertainments Ltd. | | |
5.75%, due 6/15/26 (a) | 1,500,000 | 1,482,208 |
| Principal Amount | Value |
|
Entertainment (continued) |
Vail Resorts, Inc. | | |
6.25%, due 5/15/25 (a) | $ 15,582,000 | $ 15,590,509 |
| | 90,347,263 |
Food 1.0% |
B&G Foods, Inc. | | |
5.25%, due 4/1/25 | 1,754,000 | 1,733,492 |
8.00%, due 9/15/28 (a) | 2,325,000 | 2,409,288 |
Chobani LLC (a) | | |
4.625%, due 11/15/28 | 1,500,000 | 1,388,338 |
7.625%, due 7/1/29 | 1,000,000 | 1,010,576 |
Land O'Lakes Capital Trust I | | |
7.45%, due 3/15/28 (a) | 2,605,000 | 2,550,634 |
Simmons Foods, Inc. | | |
4.625%, due 3/1/29 (a) | 11,825,000 | 10,202,689 |
United Natural Foods, Inc. | | |
6.75%, due 10/15/28 (a) | 5,000,000 | 3,837,175 |
| | 23,132,192 |
Food Service 0.1% |
Aramark Services, Inc. | | |
5.00%, due 2/1/28 (a) | 3,500,000 | 3,323,192 |
Forest Products & Paper 1.0% |
Mercer International, Inc. | | |
5.50%, due 1/15/26 | 15,475,000 | 15,008,277 |
12.875%, due 10/1/28 (a) | 6,725,000 | 7,332,026 |
Smurfit Kappa Treasury Funding DAC | | |
7.50%, due 11/20/25 | 1,000,000 | 1,018,072 |
| | 23,358,375 |
Hand & Machine Tools 0.4% |
Regal Rexnord Corp. (a) | | |
6.05%, due 2/15/26 | 2,875,000 | 2,875,408 |
6.05%, due 4/15/28 | 3,720,000 | 3,712,811 |
Werner FinCo. LP | | |
11.50%, due 6/15/28 (a) | 3,000,000 | 3,272,016 |
| | 9,860,235 |
Healthcare-Products 1.2% |
Bausch + Lomb Corp. | | |
8.375%, due 10/1/28 (a) | 6,720,000 | 6,940,080 |
Hologic, Inc. | | |
4.625%, due 2/1/28 (a) | 5,800,000 | 5,516,224 |
Teleflex, Inc. | | |
4.25%, due 6/1/28 (a) | 4,500,000 | 4,158,324 |
4.625%, due 11/15/27 | 2,000,000 | 1,904,351 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Healthcare-Products (continued) |
Varex Imaging Corp. | | |
7.875%, due 10/15/27 (a) | $ 7,500,000 | $ 7,644,454 |
| | 26,163,433 |
Healthcare-Services 2.5% |
Acadia Healthcare Co., Inc. | | |
5.50%, due 7/1/28 (a) | 7,000,000 | 6,736,877 |
Catalent Pharma Solutions, Inc. | | |
5.00%, due 7/15/27 (a) | 5,216,000 | 5,114,986 |
Encompass Health Corp. | | |
4.50%, due 2/1/28 | 7,000,000 | 6,570,586 |
5.75%, due 9/15/25 | 4,335,000 | 4,301,325 |
HCA, Inc. | | |
5.375%, due 2/1/25 | 13,100,000 | 13,041,268 |
5.875%, due 2/15/26 | 2,000,000 | 2,000,931 |
7.58%, due 9/15/25 | 5,623,000 | 5,752,833 |
IQVIA, Inc. | | |
5.00%, due 10/15/26 (a) | 5,515,000 | 5,393,897 |
5.70%, due 5/15/28 | 3,000,000 | 2,999,400 |
ModivCare, Inc. | | |
5.875%, due 11/15/25 (a) | 4,000,000 | 3,901,226 |
| | 55,813,329 |
Holding Companies-Diversified 0.5% |
Benteler International AG | | |
10.50%, due 5/15/28 (a) | 11,500,000 | 12,242,790 |
Home Builders 1.2% |
Adams Homes, Inc. | | |
7.50%, due 2/15/25 (a) | 2,234,000 | 2,230,161 |
Century Communities, Inc. | | |
6.75%, due 6/1/27 | 5,000,000 | 5,009,795 |
Installed Building Products, Inc. | | |
5.75%, due 2/1/28 (a) | 6,000,000 | 5,821,606 |
Meritage Homes Corp. | | |
5.125%, due 6/6/27 | 1,500,000 | 1,459,769 |
6.00%, due 6/1/25 | 624,000 | 623,426 |
Shea Homes LP | | |
4.75%, due 2/15/28 | 2,310,000 | 2,168,816 |
STL Holding Co. LLC | | |
8.75%, due 2/15/29 (a) | 4,085,000 | 4,197,594 |
Winnebago Industries, Inc. | | |
6.25%, due 7/15/28 (a) | 6,865,000 | 6,718,939 |
| | 28,230,106 |
| Principal Amount | Value |
|
Household Products & Wares 0.3% |
Central Garden & Pet Co. | | |
5.125%, due 2/1/28 | $ 6,500,000 | $ 6,223,451 |
Housewares 0.1% |
Newell Brands, Inc. | | |
4.875%, due 6/1/25 | 1,750,000 | 1,721,840 |
Scotts Miracle-Gro Co. (The) | | |
5.25%, due 12/15/26 | 1,650,000 | 1,606,302 |
| | 3,328,142 |
Insurance 0.6% |
MGIC Investment Corp. | | |
5.25%, due 8/15/28 | 2,516,000 | 2,415,045 |
NMI Holdings, Inc. | | |
7.375%, due 6/1/25 (a) | 11,245,000 | 11,328,293 |
| | 13,743,338 |
Internet 1.3% |
Cars.com, Inc. | | |
6.375%, due 11/1/28 (a) | 6,500,000 | 6,212,574 |
Gen Digital, Inc. (a) | | |
5.00%, due 4/15/25 | 7,175,000 | 7,088,067 |
6.75%, due 9/30/27 | 2,500,000 | 2,509,304 |
Go Daddy Operating Co. LLC | | |
5.25%, due 12/1/27 (a) | 6,150,000 | 5,937,542 |
Match Group Holdings II LLC | | |
5.00%, due 12/15/27 (a) | 1,500,000 | 1,420,259 |
Netflix, Inc. | | |
5.875%, due 2/15/25 | 665,000 | 667,325 |
Uber Technologies, Inc. (a) | | |
6.25%, due 1/15/28 | 1,800,000 | 1,798,979 |
7.50%, due 9/15/27 | 4,500,000 | 4,581,554 |
| | 30,215,604 |
Investment Companies 0.6% |
Icahn Enterprises LP | | |
4.75%, due 9/15/24 | 12,500,000 | 12,426,124 |
Iron & Steel 1.8% |
Allegheny Ludlum LLC | | |
6.95%, due 12/15/25 | 2,430,000 | 2,462,523 |
Big River Steel LLC | | |
6.625%, due 1/31/29 (a) | 16,450,000 | 16,388,799 |
Mineral Resources Ltd. (a) | | |
8.00%, due 11/1/27 | 3,010,000 | 3,044,253 |
8.125%, due 5/1/27 | 11,400,000 | 11,506,999 |
9.25%, due 10/1/28 | 6,990,000 | 7,327,869 |
| | 40,730,443 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay MacKay Short Duration High Income Fund |
| Principal Amount | Value |
Corporate Bonds (continued) |
Leisure Time 2.3% |
Acushnet Co. | | |
7.375%, due 10/15/28 (a) | $ 1,500,000 | $ 1,539,900 |
Carnival Corp. (a) | | |
4.00%, due 8/1/28 | 6,000,000 | 5,485,833 |
5.75%, due 3/1/27 | 10,560,000 | 10,306,152 |
7.625%, due 3/1/26 | 9,660,000 | 9,719,918 |
Carnival Holdings Bermuda Ltd. | | |
10.375%, due 5/1/28 (a) | 15,785,000 | 17,115,155 |
Royal Caribbean Cruises Ltd. | | |
9.25%, due 1/15/29 (a) | 6,525,000 | 6,968,426 |
| | 51,135,384 |
Lodging 1.9% |
Boyd Gaming Corp. | | |
4.75%, due 12/1/27 | 18,270,000 | 17,308,859 |
Genting New York LLC | | |
3.30%, due 2/15/26 (a) | 1,000,000 | 956,195 |
Hilton Domestic Operating Co., Inc. (a) | | |
5.375%, due 5/1/25 | 5,590,000 | 5,543,758 |
5.75%, due 5/1/28 | 2,000,000 | 1,976,924 |
5.875%, due 4/1/29 | 9,000,000 | 8,880,799 |
Hilton Worldwide Finance LLC | | |
4.875%, due 4/1/27 | 3,035,000 | 2,951,495 |
Marriott International, Inc. | | |
Series EE | | |
5.75%, due 5/1/25 | 932,000 | 932,265 |
Station Casinos LLC | | |
4.50%, due 2/15/28 (a) | 5,000,000 | 4,637,597 |
| | 43,187,892 |
Machinery—Construction & Mining 0.5% |
Terex Corp. | | |
5.00%, due 5/15/29 (a) | 1,500,000 | 1,403,322 |
Vertiv Group Corp. | | |
4.125%, due 11/15/28 (a) | 11,000,000 | 10,187,186 |
| | 11,590,508 |
Machinery-Diversified 0.7% |
Briggs & Stratton Corp. Escrow Claim Shares | | |
6.875%, due 12/15/20 (f)(g)(h) | 3,425,000 | — |
Maxim Crane Works Holdings Capital LLC | | |
11.50%, due 9/1/28 (a) | 2,000,000 | 2,118,192 |
TK Elevator U.S. Newco, Inc. | | |
5.25%, due 7/15/27 (a) | 15,413,000 | 14,743,588 |
| | 16,861,780 |
| Principal Amount | Value |
|
Media 3.9% |
Block Communications, Inc. | | |
4.875%, due 3/1/28 (a) | $ 1,500,000 | $ 1,296,956 |
CCO Holdings LLC (a) | | |
5.00%, due 2/1/28 | 19,795,000 | 18,026,909 |
5.125%, due 5/1/27 | 1,500,000 | 1,405,759 |
5.50%, due 5/1/26 | 13,485,000 | 13,211,701 |
CSC Holdings LLC (a) | | |
6.50%, due 2/1/29 | 2,500,000 | 1,864,549 |
11.25%, due 5/15/28 | 4,020,000 | 3,555,826 |
11.75%, due 1/31/29 | 3,095,000 | 2,749,675 |
Directv Financing LLC | | |
5.875%, due 8/15/27 (a) | 19,000,000 | 17,709,460 |
LCPR Senior Secured Financing DAC | | |
6.75%, due 10/15/27 (a) | 16,500,000 | 15,292,618 |
Scripps Escrow II, Inc. | | |
3.875%, due 1/15/29 (a) | 3,300,000 | 2,437,697 |
Sirius XM Radio, Inc. (a) | | |
4.00%, due 7/15/28 | 2,000,000 | 1,782,842 |
5.00%, due 8/1/27 | 1,500,000 | 1,416,585 |
Sterling Entertainment Enterprises LLC | | |
10.25%, due 1/15/25 (b)(f)(h) | 3,000,000 | 2,787,900 |
Videotron Ltd. | | |
5.125%, due 4/15/27 (a) | 3,500,000 | 3,381,755 |
Virgin Media Secured Finance plc | | |
5.50%, due 5/15/29 (a) | 1,000,000 | 908,940 |
Virgin Media Vendor Financing Notes IV DAC | | |
5.00%, due 7/15/28 (a) | 1,800,000 | 1,602,399 |
| | 89,431,571 |
Metal Fabricate & Hardware 0.1% |
Advanced Drainage Systems, Inc. | | |
5.00%, due 9/30/27 (a) | 2,500,000 | 2,420,856 |
Mining 1.4% |
Alcoa Nederland Holding BV (a) | | |
5.50%, due 12/15/27 | 2,000,000 | 1,965,507 |
6.125%, due 5/15/28 | 3,950,000 | 3,922,468 |
Century Aluminum Co. | | |
7.50%, due 4/1/28 (a) | 8,615,000 | 8,540,205 |
Compass Minerals International, Inc. | | |
6.75%, due 12/1/27 (a) | 2,000,000 | 1,875,597 |
First Quantum Minerals Ltd. (a) | | |
6.875%, due 10/15/27 | 4,500,000 | 4,328,462 |
9.375%, due 3/1/29 | 5,500,000 | 5,682,463 |
IAMGOLD Corp. | | |
5.75%, due 10/15/28 (a) | 5,816,000 | 5,376,611 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Mining (continued) |
Novelis Corp. | | |
3.25%, due 11/15/26 (a) | $ 1,000,000 | $ 934,963 |
| | 32,626,276 |
Miscellaneous—Manufacturing 2.4% |
Amsted Industries, Inc. | | |
5.625%, due 7/1/27 (a) | 10,145,000 | 9,862,774 |
Calderys Financing LLC | | |
11.25%, due 6/1/28 (a) | 2,985,000 | 3,169,407 |
EnPro, Inc. | | |
5.75%, due 10/15/26 | 9,334,000 | 9,206,521 |
Gates Global LLC | | |
6.25%, due 1/15/26 (a) | 11,010,000 | 11,012,358 |
Hillenbrand, Inc. | | |
5.00%, due 9/15/26 (i) | 6,080,000 | 5,938,032 |
5.75%, due 6/15/25 | 3,515,000 | 3,495,731 |
6.25%, due 2/15/29 | 2,885,000 | 2,862,378 |
LSB Industries, Inc. | | |
6.25%, due 10/15/28 (a) | 4,500,000 | 4,265,834 |
Trinity Industries, Inc. | | |
7.75%, due 7/15/28 (a) | 3,500,000 | 3,577,063 |
| | 53,390,098 |
Oil & Gas 6.5% |
Ascent Resources Utica Holdings LLC (a) | | |
7.00%, due 11/1/26 | 3,900,000 | 3,894,175 |
9.00%, due 11/1/27 | 1,556,000 | 1,942,229 |
California Resources Corp. | | |
7.125%, due 2/1/26 (a) | 4,520,000 | 4,545,018 |
Chevron USA, Inc. | | |
3.90%, due 11/15/24 | 4,550,000 | 4,513,256 |
Chord Energy Corp. | | |
6.375%, due 6/1/26 (a) | 3,280,000 | 3,278,669 |
Civitas Resources, Inc. | | |
5.00%, due 10/15/26 (a) | 1,900,000 | 1,837,801 |
Comstock Resources, Inc. (a) | | |
6.75%, due 3/1/29 | 2,000,000 | 1,904,223 |
6.75%, due 3/1/29 | 3,500,000 | 3,293,174 |
Encino Acquisition Partners Holdings LLC | | |
8.50%, due 5/1/28 (a) | 8,800,000 | 8,908,161 |
Gulfport Energy Corp. | | |
8.00%, due 5/17/26 | 94,221 | 95,435 |
8.00%, due 5/17/26 (a) | 4,510,560 | 4,568,670 |
Hess Corp. | | |
3.50%, due 7/15/24 | 910,000 | 905,276 |
| Principal Amount | Value |
|
Oil & Gas (continued) |
HF Sinclair Corp. | | |
6.375%, due 4/15/27 (a) | $ 3,538,000 | $ 3,538,406 |
Matador Resources Co. | | |
5.875%, due 9/15/26 | 13,500,000 | 13,480,572 |
Moss Creek Resources Holdings, Inc. | | |
7.50%, due 1/15/26 (a) | 5,711,000 | 5,694,981 |
Murphy Oil Corp. | | |
5.875%, due 12/1/27 | 3,500,000 | 3,464,512 |
Occidental Petroleum Corp. | | |
5.50%, due 12/1/25 | 2,000,000 | 1,989,820 |
5.55%, due 3/15/26 | 1,000,000 | 995,198 |
5.875%, due 9/1/25 | 3,160,000 | 3,160,087 |
Parkland Corp. | | |
5.875%, due 7/15/27 (a) | 13,940,000 | 13,591,196 |
PDC Energy, Inc. | | |
5.75%, due 5/15/26 | 2,775,000 | 2,773,415 |
Permian Resources Operating LLC (a) | | |
5.375%, due 1/15/26 | 6,100,000 | 6,027,893 |
7.75%, due 2/15/26 | 3,000,000 | 3,026,787 |
Range Resources Corp. | | |
4.875%, due 5/15/25 | 3,900,000 | 3,866,949 |
SM Energy Co. | | |
6.75%, due 9/15/26 | 6,670,000 | 6,668,223 |
Southwestern Energy Co. | | |
5.70%, due 1/23/25 (i) | 2,199,000 | 2,189,008 |
Sunoco LP | | |
6.00%, due 4/15/27 | 1,500,000 | 1,481,860 |
Talos Production, Inc. | | |
9.00%, due 2/1/29 (a) | 9,750,000 | 10,286,835 |
Transocean Aquila Ltd. | | |
8.00%, due 9/30/28 (a) | 6,100,000 | 6,204,279 |
Transocean Poseidon Ltd. | | |
6.875%, due 2/1/27 (a) | 8,602,875 | 8,574,516 |
Transocean Titan Financing Ltd. | | |
8.375%, due 2/1/28 (a) | 7,445,000 | 7,642,687 |
Viper Energy, Inc. | | |
5.375%, due 11/1/27 (a) | 2,750,000 | 2,682,993 |
| | 147,026,304 |
Oil & Gas Services 0.8% |
Bristow Group, Inc. | | |
6.875%, due 3/1/28 (a) | 10,500,000 | 10,183,399 |
Nine Energy Service, Inc. | | |
13.00%, due 2/1/28 | 4,500,000 | 3,566,784 |
Oceaneering International, Inc. | | |
6.00%, due 2/1/28 | 3,000,000 | 2,950,726 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay MacKay Short Duration High Income Fund |
| Principal Amount | Value |
Corporate Bonds (continued) |
Oil & Gas Services (continued) |
Weatherford International Ltd. | | |
6.50%, due 9/15/28 (a) | $ 877,000 | $ 905,663 |
| | 17,606,572 |
Packaging & Containers 0.3% |
Cascades USA, Inc. | | |
5.125%, due 1/15/26 (a) | 4,831,000 | 4,678,013 |
Owens-Brockway Glass Container, Inc. | | |
6.625%, due 5/13/27 (a) | 1,000,000 | 999,174 |
Sealed Air Corp. | | |
6.125%, due 2/1/28 (a) | 935,000 | 923,608 |
| | 6,600,795 |
Pharmaceuticals 1.6% |
1375209 BC Ltd. | | |
9.00%, due 1/30/28 (a) | 3,400,000 | 3,337,852 |
Bausch Health Cos., Inc. | | |
11.00%, due 9/30/28 (a) | 7,500,000 | 5,853,675 |
Endo DAC Escrow Claim Shares | | |
(zero coupon), due 10/15/24 (f)(g) | 13,150,000 | — |
Jazz Securities DAC | | |
4.375%, due 1/15/29 (a) | 600,000 | 545,897 |
Organon & Co. | | |
4.125%, due 4/30/28 (a) | 15,250,000 | 13,889,041 |
Par Pharmaceutical, Inc. Escrow Claim Shares | | |
(zero coupon), due 4/1/27 (f)(g) | 1,990,000 | — |
Prestige Brands, Inc. | | |
5.125%, due 1/15/28 (a) | 13,500,000 | 12,960,790 |
| | 36,587,255 |
Pipelines 5.9% |
Antero Midstream Partners LP (a) | | |
5.75%, due 3/1/27 | 9,670,000 | 9,494,081 |
5.75%, due 1/15/28 | 1,000,000 | 978,708 |
EnLink Midstream LLC | | |
5.625%, due 1/15/28 (a) | 3,700,000 | 3,635,418 |
EQM Midstream Partners LP | | |
4.125%, due 12/1/26 | 1,000,000 | 956,791 |
6.00%, due 7/1/25 (a) | 2,195,000 | 2,191,334 |
FTAI Infra Escrow Holdings LLC | | |
10.50%, due 6/1/27 (a) | 8,110,000 | 8,498,201 |
Genesis Energy LP | | |
6.25%, due 5/15/26 | 7,000,000 | 6,940,354 |
8.00%, due 1/15/27 | 10,000,000 | 10,112,843 |
8.25%, due 1/15/29 | 1,950,000 | 1,977,501 |
| Principal Amount | Value |
|
Pipelines (continued) |
Harvest Midstream I LP | | |
7.50%, due 9/1/28 (a) | $ 1,750,000 | $ 1,754,795 |
Hess Midstream Operations LP | | |
5.625%, due 2/15/26 (a) | 8,434,000 | 8,339,244 |
ITT Holdings LLC | | |
6.50%, due 8/1/29 (a) | 1,000,000 | 903,218 |
New Fortress Energy, Inc. (a) | | |
6.50%, due 9/30/26 | 4,750,000 | 4,542,254 |
6.75%, due 9/15/25 | 649,000 | 641,026 |
8.75%, due 3/15/29 | 2,000,000 | 1,950,499 |
NuStar Logistics LP | | |
5.75%, due 10/1/25 | 1,500,000 | 1,491,537 |
6.00%, due 6/1/26 | 2,200,000 | 2,183,067 |
Plains All American Pipeline LP | | |
Series B | | |
9.679% (3 Month SOFR + 4.372%), due 5/30/24 (d)(e) | 18,663,000 | 18,452,058 |
Rockies Express Pipeline LLC | | |
3.60%, due 5/15/25 (a) | 3,805,000 | 3,686,936 |
Summit Midstream Holdings LLC | | |
9.50%, due 10/15/26 (a)(i) | 5,165,000 | 5,273,346 |
Tallgrass Energy Partners LP (a) | | |
5.50%, due 1/15/28 | 4,000,000 | 3,797,686 |
6.00%, due 3/1/27 | 6,000,000 | 5,844,425 |
7.375%, due 2/15/29 | 8,230,000 | 8,239,028 |
TransMontaigne Partners LP | | |
6.125%, due 2/15/26 | 4,600,000 | 4,381,500 |
Venture Global LNG, Inc. (a) | | |
8.125%, due 6/1/28 | 9,580,000 | 9,795,243 |
9.50%, due 2/1/29 | 3,000,000 | 3,224,586 |
Western Midstream Operating LP | | |
4.65%, due 7/1/26 | 4,315,000 | 4,214,751 |
| | 133,500,430 |
Real Estate Investment Trusts 2.7% |
GLP Capital LP | | |
5.25%, due 6/1/25 | 2,500,000 | 2,476,796 |
5.375%, due 4/15/26 | 700,000 | 691,066 |
Iron Mountain, Inc. | | |
4.875%, due 9/15/27 (a) | 5,000,000 | 4,771,622 |
MPT Operating Partnership LP | | |
5.00%, due 10/15/27 | 11,000,000 | 8,997,560 |
5.25%, due 8/1/26 | 9,155,000 | 8,338,572 |
RHP Hotel Properties LP | | |
4.50%, due 2/15/29 (a) | 1,500,000 | 1,379,739 |
4.75%, due 10/15/27 | 16,300,000 | 15,490,489 |
7.25%, due 7/15/28 (a) | 2,220,000 | 2,254,417 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Real Estate Investment Trusts (continued) |
SBA Communications Corp. | | |
3.875%, due 2/15/27 | $ 2,000,000 | $ 1,879,594 |
VICI Properties LP (a) | | |
3.50%, due 2/15/25 | 9,615,000 | 9,422,770 |
4.625%, due 6/15/25 | 2,985,000 | 2,936,807 |
Vornado Realty LP | | |
3.50%, due 1/15/25 | 2,500,000 | 2,447,878 |
| | 61,087,310 |
Retail 3.9% |
1011778 B.C. Unlimited Liability Co. | | |
3.875%, due 1/15/28 (a) | 12,300,000 | 11,346,913 |
Asbury Automotive Group, Inc. | | |
4.50%, due 3/1/28 | 13,905,000 | 13,043,779 |
CEC Entertainment LLC | | |
6.75%, due 5/1/26 (a) | 3,830,000 | 3,775,876 |
Dave & Buster's, Inc. | | |
7.625%, due 11/1/25 (a) | 2,160,000 | 2,173,995 |
Group 1 Automotive, Inc. | | |
4.00%, due 8/15/28 (a) | 2,000,000 | 1,818,892 |
Ken Garff Automotive LLC | | |
4.875%, due 9/15/28 (a) | 7,500,000 | 6,928,914 |
KFC Holding Co. | | |
4.75%, due 6/1/27 (a) | 9,157,000 | 8,838,008 |
Murphy Oil USA, Inc. | | |
5.625%, due 5/1/27 | 5,670,000 | 5,594,485 |
NMG Holding Co., Inc. | | |
7.125%, due 4/1/26 (a) | 22,478,000 | 22,373,737 |
Patrick Industries, Inc. | | |
7.50%, due 10/15/27 (a) | 3,547,000 | 3,589,053 |
PetSmart, Inc. (a) | | |
4.75%, due 2/15/28 | 6,445,000 | 5,947,759 |
7.75%, due 2/15/29 | 2,500,000 | 2,376,210 |
| | 87,807,621 |
Software 2.9% |
ACI Worldwide, Inc. | | |
5.75%, due 8/15/26 (a) | 3,500,000 | 3,482,441 |
Camelot Finance SA | | |
4.50%, due 11/1/26 (a) | 17,420,000 | 16,590,122 |
Central Parent LLC | | |
8.00%, due 6/15/29 (a) | 3,500,000 | 3,600,821 |
Clarivate Science Holdings Corp. | | |
3.875%, due 7/1/28 (a) | 4,000,000 | 3,642,418 |
Open Text Corp. (a) | | |
3.875%, due 2/15/28 | 5,725,000 | 5,225,811 |
6.90%, due 12/1/27 | 2,850,000 | 2,910,067 |
| Principal Amount | Value |
|
Software (continued) |
PTC, Inc. (a) | | |
3.625%, due 2/15/25 | $ 10,320,000 | $ 10,107,735 |
4.00%, due 2/15/28 | 4,600,000 | 4,261,523 |
SS&C Technologies, Inc. | | |
5.50%, due 9/30/27 (a) | 11,500,000 | 11,178,208 |
Veritas US, Inc. | | |
7.50%, due 9/1/25 (a) | 6,000,000 | 5,458,611 |
| | 66,457,757 |
Telecommunications 2.2% |
Connect Finco SARL | | |
6.75%, due 10/1/26 (a) | 7,170,000 | 6,944,057 |
Frontier Communications Holdings LLC (a) | | |
5.00%, due 5/1/28 | 4,250,000 | 3,909,950 |
5.875%, due 10/15/27 | 6,750,000 | 6,474,320 |
Sprint LLC | | |
7.625%, due 2/15/25 | 1,400,000 | 1,410,422 |
T-Mobile USA, Inc. | | |
2.25%, due 2/15/26 | 24,000,000 | 22,626,866 |
4.75%, due 2/1/28 | 7,555,000 | 7,354,130 |
5.375%, due 4/15/27 | 570,000 | 571,123 |
Viasat, Inc. | | |
5.625%, due 9/15/25 (a) | 1,525,000 | 1,465,153 |
| | 50,756,021 |
Toys, Games & Hobbies 0.4% |
Mattel, Inc. (a) | | |
3.375%, due 4/1/26 | 5,469,000 | 5,207,399 |
5.875%, due 12/15/27 | 4,265,000 | 4,241,183 |
| | 9,448,582 |
Transportation 0.5% |
RXO, Inc. | | |
7.50%, due 11/15/27 (a) | 1,500,000 | 1,519,635 |
Watco Cos. LLC | | |
6.50%, due 6/15/27 (a) | 11,055,000 | 10,898,992 |
| | 12,418,627 |
Total Corporate Bonds (Cost $1,726,575,633) | | 1,719,266,513 |
Loan Assignments 17.1% |
Aerospace & Defense 0.9% |
Chromalloy Corp. | |
Term Loan | |
9.058% (3 Month SOFR + 3.75%), due 3/27/31 (d) | 13,300,000 | 13,360,954 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay MacKay Short Duration High Income Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Aerospace & Defense (continued) |
SkyMiles IP Ltd. | |
Initial Term Loan | |
9.075% (3 Month SOFR + 3.75%), due 10/20/27 (d) | $ 1,931,739 | $ 1,990,094 |
TransDigm, Inc. | |
Tranche Term Loan J | |
8.559% (3 Month SOFR + 3.25%), due 2/28/31 (d) | 4,488,750 | 4,513,137 |
| | 19,864,185 |
Automobile 0.3% |
Dealer Tire Financial LLC | |
Term Loan B3 | |
9.066% (1 Month SOFR + 3.75%), due 12/14/27 (d) | 3,456,337 | 3,473,619 |
Tenneco, Inc. | |
First Lien Term Loan B 10.169% - 10.402% | |
(3 Month SOFR + 5.00%), due 11/17/28 (d) | 3,850,000 | 3,764,819 |
| | 7,238,438 |
Banking 0.3% |
Jane Street Group LLC | |
2024 Repricing Term Loan | |
7.93% (1 Month SOFR + 2.50%), due 1/26/28 (d) | 6,526,461 | 6,527,818 |
Beverage, Food & Tobacco 0.4% |
B&G Foods, Inc. | |
Tranche Term Loan B4 | |
7.818% (1 Month SOFR + 2.50%), due 10/10/26 (d) | 2,495,163 | 2,490,909 |
United Natural Foods, Inc. | |
Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 10/22/25 (d) | 3,530,054 | 3,490,341 |
Term Loan | |
10.079%, due 4/25/31 | 4,000,000 | 3,950,000 |
| | 9,931,250 |
Buildings & Real Estate 0.2% |
GEO Group, Inc. (The) | |
Term Loan | |
10.569% (1 Month SOFR + 5.25%), due 4/4/29 (d) | 4,400,000 | 4,451,335 |
| Principal Amount | Value |
|
Capital Equipment 0.3% |
DexKo Global, Inc. | |
First Lien 2023 Incremental Term Loan | |
9.559% (3 Month SOFR + 4.25%), due 10/4/28 (d) | $ 2,493,750 | $ 2,488,294 |
TK Elevator Midco GmbH | |
USD Facility Term Loan B2 | |
8.791% (6 Month SOFR + 3.50%), due 4/30/30 (d) | 4,987,500 | 5,002,876 |
| | 7,491,170 |
Cargo Transport 0.4% |
Genesse & Wyoming, Inc. | |
Initial Term Loan | |
7.301% (3 Month SOFR + 2.00%), due 4/10/31 (d) | 3,000,000 | 2,999,064 |
GN Loanco LLC | |
Term Loan B | |
9.816% (1 Month SOFR + 4.50%), due 12/19/30 (d) | 5,201,778 | 5,083,115 |
| | 8,082,179 |
Chemicals, Plastics & Rubber 1.4% |
Innophos Holdings, Inc. | |
Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 2/5/27 (d) | 8,081,674 | 8,069,051 |
Jazz Pharmaceuticals plc | |
Additional Dollar Tranche Term Loan B1 | |
8.43% (1 Month SOFR + 3.00%), due 5/5/28 (d) | 16,332,200 | 16,422,942 |
SCIH Salt Holdings, Inc. | |
First Lien Incremental Term Loan B1 | |
9.442% (1 Month SOFR + 4.00%), due 3/16/27 (d) | 7,409,411 | 7,414,701 |
| | 31,906,694 |
Electronics 1.0% |
Camelot U.S. Acquisition LLC | |
Amendment No. 6 Refinancing Term Loan | |
8.066% (1 Month SOFR + 2.75%), due 1/31/31 (d) | 11,223,659 | 11,234,882 |
Proofpoint, Inc. | |
First Lien Initial Term Loan | |
8.68% (1 Month SOFR + 3.25%), due 8/31/28 (d) | 2,244,260 | 2,251,554 |
Vertiv Group Corp. | |
Term Loan B1 | |
7.943% (1 Month SOFR + 2.50%), due 3/2/27 (d) | 2,487,500 | 2,494,652 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Electronics (continued) |
VS Buyer LLC | |
2024 Refinancing Initial Term Loan | |
8.569% (1 Month SOFR + 3.25%), due 4/12/31 (d) | $ 2,000,000 | $ 2,005,000 |
WEX, Inc. | |
Term Loan B1 | |
7.316% (1 Month SOFR + 2.00%), due 3/31/28 (d) | 4,932,303 | 4,940,782 |
| | 22,926,870 |
Energy (Electricity) 0.6% |
Talen Energy Supply LLC (d) | |
Initial Term Loan B | |
9.826% (3 Month SOFR + 4.50%), due 5/17/30 | 7,774,521 | 7,784,239 |
Initial Term Loan C | |
9.826% (3 Month SOFR + 4.50%), due 5/17/30 | 4,820,856 | 4,826,882 |
| | 12,611,121 |
Entertainment 0.2% |
ECL Entertainment LLC | |
Term Loan B | |
10.066% (1 Month SOFR + 4.75%), due 9/3/30 (d) | 2,487,500 | 2,491,386 |
NAI Entertainment Holdings LLC | |
Tranche Term Loan B | |
10.945% (1 Month SOFR + 3.00%), due 5/8/25 (d) | 2,486,624 | 2,472,326 |
| | 4,963,712 |
Finance 1.1% |
Aretec Group, Inc. | |
Term Loan B1 | |
9.916% (1 Month SOFR + 4.50%), due 8/9/30 (d) | 1,989,975 | 1,998,930 |
First Eagle Holdings, Inc. | |
2020 Refinancing Term Loan | |
7.802% (3 Month SOFR + 2.50%), due 2/1/27 (d) | 1,189,639 | 1,187,302 |
Mativ Holdings, Inc. | |
Term Loan B | |
9.18% (1 Month SOFR + 3.75%), due 4/20/28 (d) | 1,448,926 | 1,445,303 |
Mileage Plus Holdings LLC | |
Initial Term Loan | |
10.733% (3 Month SOFR + 5.25%), due 6/21/27 (d) | 1,625,000 | 1,666,077 |
| Principal Amount | Value |
|
Finance (continued) |
Osaic Holdings, Inc. | |
Term Loan | |
9.323% (1 Month LIBOR + 4.00%), due 8/17/28 | 2,050,000 | $ 2,058,786 |
Term Loan B2 | |
9.816% (1 Month SOFR + 4.50%), due 8/17/28 (d) | $ 2,394,000 | 2,404,972 |
RealTruck Group, Inc. (d) | |
Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 1/31/28 | 8,679,510 | 8,598,912 |
Second Amendment Incremental Term Loan | |
10.43% (1 Month SOFR + 5.00%), due 1/31/28 | 5,000,000 | 4,966,665 |
| | 24,326,947 |
Healthcare & Pharmaceuticals 0.3% |
Bausch & Lomb Corp. | |
First Incremental Term Loan | |
9.316% (1 Month SOFR + 4.00%), due 9/29/28 (d) | 2,686,500 | 2,691,537 |
Owens & Minor, Inc. | |
Term Loan B1 | |
9.166% (1 Month SOFR + 3.75%), due 3/29/29 (d) | 3,178,917 | 3,195,803 |
| | 5,887,340 |
Healthcare, Education & Childcare 1.6% |
Endo Luxembourg Finance Co. SARL | |
Term Loan B | |
9.826%, due 4/9/31 | 13,650,000 | 13,603,071 |
LifePoint Health, Inc. | |
First Lien 2024 Refinancing Term Loan | |
10.056% (3 Month SOFR + 4.75%), due 11/16/28 (d) | 15,960,000 | 16,013,195 |
Organon & Co. | |
Dollar Term Loan | |
8.433% (1 Month SOFR + 3.00%), due 6/2/28 (d) | 7,627,500 | 7,656,103 |
| | 37,272,369 |
High Tech Industries 0.5% |
Central Parent LLC | |
First Lien 2023 Refinancing Term Loan | |
9.309% (3 Month SOFR + 4.00%), due 7/6/29 (d) | 1,989,975 | 1,996,864 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay MacKay Short Duration High Income Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
High Tech Industries (continued) |
Open Text Corp. | |
2023 Replacement Term Loan | |
8.166% (1 Month SOFR + 2.75%), due 1/31/30 (d) | $ 9,315,315 | $ 9,340,056 |
| | 11,336,920 |
Hotel, Gaming & Leisure 0.1% |
Motion Acquisition Ltd. | |
USD Facility Term Loan B | |
9.071% (3 Month SOFR + 3.50%), due 11/12/29 (d) | 2,900,000 | 2,894,925 |
Hotels, Motels, Inns & Gaming 0.5% |
Caesars Entertainment, Inc. | |
Incremental Term Loan B1 | |
8.066% (1 Month SOFR + 2.75%), due 2/6/31 (d) | 6,200,000 | 6,201,289 |
Four Seasons Holdings, Inc. | |
First Lien 2024 Repricing Term Loan | |
7.316% (1 Month SOFR + 2.00%), due 11/30/29 (d) | 5,262,213 | 5,259,582 |
| | 11,460,871 |
Insurance 0.2% |
USI, Inc. | |
2023 Term Loan B | |
8.302% (3 Month SOFR + 3.00%), due 11/22/29 (d) | 4,617,706 | 4,626,364 |
Leisure, Amusement, Motion Pictures & Entertainment 0.2% |
Carnival Corp. | |
2024 Repricing Advance Term Loan | |
8.067% (1 Month LIBOR + 2.75%), due 8/8/27 | 4,405,123 | 4,427,148 |
NASCAR Holdings LLC | |
Initial Term Loan | |
7.93% (1 Month SOFR + 2.50%), due 10/19/26 (d) | $ 898,957 | 903,452 |
| | 5,330,600 |
Manufacturing 0.7% |
Adient U.S. LLC | |
Term Loan B2 | |
8.066% (1 Month SOFR + 2.75%), due 1/31/31 (d) | 6,032,500 | 6,052,293 |
| Principal Amount | Value |
|
Manufacturing (continued) |
Chart Industries, Inc. | |
Amendment No. 5 Term Loan | |
8.673% (1 Month SOFR + 3.25%), due 3/15/30 (d) | $ 5,467,197 | $ 5,480,865 |
Summit Materials LLC | |
Term Loan B2 | |
7.799% (3 Month SOFR + 2.50%), due 1/12/29 (d) | 4,250,000 | 4,276,562 |
| | 15,809,720 |
Media 1.3% |
Block Communications, Inc. | |
Term Loan | |
7.814% (3 Month SOFR + 2.25%), due 2/25/27 (d) | 11,280,000 | 10,904,004 |
DIRECTV Financing LLC | |
2024 Refinancing Term Loan B | |
10.68% (1 Month SOFR + 5.25%), due 8/2/29 (d) | 12,643,769 | 12,643,769 |
Lamar Media Corp. | |
Term Loan B | |
6.916% (1 Month SOFR + 1.50%), due 2/5/27 (d) | 5,000,000 | 4,985,715 |
| | 28,533,488 |
Mining, Steel, Iron & Non-Precious Metals 0.3% |
American Rock Salt Co. LLC | |
First Lien Initial Term Loan | |
9.43% (1 Month SOFR + 4.00%), due 6/9/28 (d) | 4,297,903 | 3,807,224 |
Gates Global LLC | |
Initial Dollar Term Loan B3 | |
7.916% (1 Month SOFR + 2.50%), due 3/31/27 (d) | 2,732,518 | 2,738,443 |
| | 6,545,667 |
Oil & Gas 1.1% |
GIP III Stetson I LP | |
2023 Initial Term Loan | |
9.666% (1 Month SOFR + 4.25%), due 10/31/28 (d) | 4,193,059 | 4,203,542 |
GIP Pilot Acquisition Partners LP | |
Initial Term Loan | |
8.308% (3 Month SOFR + 3.00%), due 10/4/30 (d) | 5,137,125 | 5,154,786 |
New Fortress Energy, Inc. | |
Initial Term Loan | |
10.33% (3 Month SOFR + 5.00%), due 10/30/28 (d) | 4,688,250 | 4,706,670 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Loan Assignments (continued) |
Oil & Gas (continued) |
NGL Energy Operating LLC | |
Initial Term Loan | |
9.816% (1 Month SOFR + 4.50%), due 2/3/31 (d) | $ 2,850,000 | $ 2,859,975 |
PetroQuest Energy LLC (b)(f) | |
Term Loan | |
15.00% (15.00% PIK), due 11/8/25 (c) | 4,497,757 | 2,158,923 |
2020 Term Loan | |
15.00% (15.00% PIK) (3 Month LIBOR + 6.50%), due 9/19/26 (c)(d) | 292,416 | 292,416 |
Term Loan | |
15.00% (3 Month LIBOR + 6.50%), due 1/1/28 (d) | 381,165 | 381,165 |
Prairie Acquiror LP | |
Initial Term Loan B2 | |
10.066% (1 Month SOFR + 4.75%), due 8/1/29 (d) | 3,000,000 | 3,001,875 |
TransMontaigne Operating Co. LP | |
Tranche Term Loan B | |
8.93% (1 Month SOFR + 3.50%), due 11/17/28 (d) | 2,932,500 | 2,933,723 |
| | 25,693,075 |
Personal, Food & Miscellaneous Services 0.4% |
1011778 B.C. Unlimited Liability Co. | |
Term Loan B5 | |
7.566% (1 Month SOFR + 2.25%), due 9/20/30 (d) | 3,491,250 | 3,491,250 |
KFC Holding Co. | |
2021 Term Loan B | |
7.183% (1 Month SOFR + 1.75%), due 3/15/28 (d) | 2,559,045 | 2,555,447 |
WW International, Inc. | |
Initial Term Loan | |
8.93% (1 Month SOFR + 3.50%), due 4/13/28 (d) | 5,043,625 | 2,272,784 |
| | 8,319,481 |
Retail 1.4% |
Great Outdoors Group LLC | |
Term Loan B2 | |
9.18% (1 Month SOFR + 3.75%), due 3/6/28 (d) | 31,935,840 | 31,903,904 |
| Principal Amount | Value |
|
Services: Business 0.4% |
Brown Group Holdings LLC | |
Facility Incremental Term Loan B2 8.316% - 8.343% | |
(1 Month SOFR + 3.00%, 3 Month SOFR + 3.00%), due 7/2/29 (d) | $ 2,000,000 | $ 2,001,250 |
Dun & Bradstreet Corp. | |
2024 Incremental Term Loan B2 | |
8.068% (1 Month SOFR + 2.75%), due 1/18/29 (d) | 2,785,237 | 2,790,025 |
GIP II Blue Holding LP | |
Initial Term Loan | |
9.066% (1 Month SOFR + 3.75%), due 9/29/28 (d) | 5,489,960 | 5,516,427 |
| | 10,307,702 |
Software 0.5% |
Cloud Software Group, Inc. | |
First Lien Dollar Term Loan B | |
9.909% (3 Month SOFR + 4.50%), due 3/30/29 (d) | 7,863,597 | 7,856,221 |
UKG, Inc. | |
First Lien 2024 Refinancing Term Loan | |
8.814% (3 Month SOFR + 3.50%), due 2/10/31 (d) | 2,500,000 | 2,510,698 |
| | 10,366,919 |
Telecommunications 0.2% |
Connect Finco Sarl | |
Amendment No. 4 Term Loan | |
9.816% (1 Month SOFR + 4.50%), due 9/27/29 (d) | 2,523,518 | 2,449,915 |
CSC Holdings LLC | |
2022 Refinancing Term Loan | |
9.821% (1 Month SOFR + 4.50%), due 1/18/28 (d) | 2,000,000 | 1,927,084 |
| | 4,376,999 |
Utilities 0.3% |
Constellation Renewables LLC | |
Term Loan | |
8.105% (3 Month SOFR + 2.50%), due 12/15/27 (d) | 2,609,840 | 2,607,392 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay MacKay Short Duration High Income Fund |
| Principal Amount | Value |
Loan Assignments (continued) |
Utilities (continued) |
PG&E Corp. | |
Term Loan | |
7.816% (1 Month SOFR + 2.50%), due 6/23/27 (d) | $ 3,250,000 | $ 3,253,048 |
| | 5,860,440 |
Total Loan Assignments (Cost $386,882,650) | | 386,848,503 |
Total Long-Term Bonds (Cost $2,129,580,112) | | 2,124,889,737 |
|
| Shares | |
|
Common Stocks 0.7% |
Capital Markets 0.1% |
Ares Capital Corp. | 73,313 | 1,510,981 |
Electrical Equipment 0.0% ‡ |
Energy Technologies, Inc. (b)(f)(j) | 2,021 | 656,825 |
Energy Equipment & Services 0.0% ‡ |
Nine Energy Service, Inc. (j) | 18,072 | 39,036 |
Independent Power and Renewable Electricity Producers 0.0% ‡ |
GenOn Energy, Inc. (h) | 20,915 | 449,672 |
Oil, Gas & Consumable Fuels 0.3% |
Gulfport Energy Corp. (j) | 37,023 | 5,875,920 |
PetroQuest Energy, Inc. (b)(f)(j) | 11,867 | — |
Talos Energy, Inc. (j) | 71,517 | 942,594 |
| | 6,818,514 |
Pharmaceuticals 0.2% |
Endo Finance Holdings, Inc. (j) | 2,078 | 58,575 |
Endo, Inc. (j) | 182,691 | 5,149,694 |
| | 5,208,269 |
Wireless Telecommunication Services 0.1% |
Vodafone Group plc, Sponsored ADR | 94,870 | 797,857 |
Total Common Stocks (Cost $14,615,727) | | 15,481,154 |
| Shares | | Value |
Preferred Stock 0.2% |
Electrical Equipment 0.2% |
Energy Technologies Ltd. (b)(f)(j)
| 4,501 | | $ 4,050,900 |
Total Preferred Stock (Cost $4,295,472) | | | 4,050,900 |
Total Investments (Cost $2,148,491,311) | 94.6% | | 2,144,421,791 |
Other Assets, Less Liabilities | 5.4 | | 122,949,578 |
Net Assets | 100.0% | | $ 2,267,371,369 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
‡ | 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(a)(2) of the Securities Act of 1933, as amended. |
(b) | Illiquid security—As of April 30, 2024, the total market value deemed illiquid under procedures approved by the Board of Trustees was $13,377,630, which represented 0.6% of the Fund’s net assets. |
(c) | PIK ("Payment-in-Kind")—issuer may pay interest or dividends with additional securities and/or in cash. |
(d) | Floating rate—Rate shown was the rate in effect as of April 30, 2024. |
(e) | Security is perpetual and, thus, does not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. |
(f) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(g) | Issue in non-accrual status. |
(h) | Restricted security. (See Note 5) |
(i) | Step coupon—Rate shown was the rate in effect as of April 30, 2024. |
(j) | Non-income producing security. |
Abbreviation(s): |
ADR—American Depositary Receipt |
LIBOR—London Interbank Offered Rate |
SOFR—Secured Overnight Financing Rate |
USD—United States Dollar |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Long-Term Bonds | | | | | | | |
Convertible Bonds | $ — | | $ 18,774,721 | | $ — | | $ 18,774,721 |
Corporate Bonds | — | | 1,716,478,613 | | 2,787,900 | | 1,719,266,513 |
Loan Assignments | — | | 384,015,999 | | 2,832,504 | | 386,848,503 |
Total Long-Term Bonds | — | | 2,119,269,333 | | 5,620,404 | | 2,124,889,737 |
Common Stocks | 14,374,657 | | 449,672 | | 656,825 | | 15,481,154 |
Preferred Stock | — | | — | | 4,050,900 | | 4,050,900 |
Total Investments in Securities | $ 14,374,657 | | $ 2,119,719,005 | | $ 10,328,129 | | $ 2,144,421,791 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay MacKay Short Duration High Income Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $2,148,491,311) | $2,144,421,791 |
Cash | 138,118,047 |
Due from custodian | 708,858 |
Receivables: | |
Interest | 29,143,095 |
Fund shares sold | 15,594,670 |
Other assets | 637,365 |
Total assets | 2,328,623,826 |
Liabilities |
Payables: | |
Investment securities purchased | 51,539,290 |
Fund shares redeemed | 6,583,117 |
Manager (See Note 3) | 1,163,395 |
Transfer agent (See Note 3) | 443,927 |
NYLIFE Distributors (See Note 3) | 111,766 |
Professional fees | 49,502 |
Custodian | 21,714 |
Accrued expenses | 1,518 |
Distributions payable | 1,338,228 |
Total liabilities | 61,252,457 |
Net assets | $2,267,371,369 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 240,259 |
Additional paid-in-capital | 2,349,804,737 |
| 2,350,044,996 |
Total distributable earnings (loss) | (82,673,627) |
Net assets | $2,267,371,369 |
Class A | |
Net assets applicable to outstanding shares | $ 383,579,784 |
Shares of beneficial interest outstanding | 40,650,730 |
Net asset value per share outstanding | $ 9.44 |
Maximum sales charge (3.00% of offering price) | 0.29 |
Maximum offering price per share outstanding | $ 9.73 |
Investor Class | |
Net assets applicable to outstanding shares | $ 5,225,043 |
Shares of beneficial interest outstanding | 553,651 |
Net asset value per share outstanding | $ 9.44 |
Maximum sales charge (2.50% of offering price) | 0.24 |
Maximum offering price per share outstanding | $ 9.68 |
Class C | |
Net assets applicable to outstanding shares | $ 39,990,523 |
Shares of beneficial interest outstanding | 4,239,769 |
Net asset value and offering price per share outstanding | $ 9.43 |
Class I | |
Net assets applicable to outstanding shares | $1,838,576,019 |
Shares of beneficial interest outstanding | 194,815,101 |
Net asset value and offering price per share outstanding | $ 9.44 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $ 72,073,723 |
Dividends | 1,597,452 |
Total income | 73,671,175 |
Expenses | |
Manager (See Note 3) | 6,660,536 |
Transfer agent (See Note 3) | 1,315,643 |
Distribution/Service—Class A (See Note 3) | 445,870 |
Distribution/Service—Investor Class (See Note 3) | 6,495 |
Distribution/Service—Class C (See Note 3) | 176,425 |
Distribution/Service—Class R2 (See Note 3)(a) | 602 |
Distribution/Service—Class R3 (See Note 3)(a) | 334 |
Professional fees | 92,252 |
Registration | 86,708 |
Shareholder communication | 45,594 |
Trustees | 24,396 |
Custodian | 22,546 |
Shareholder service (See Note 3) | 308 |
Miscellaneous | 40,262 |
Total expenses before waiver/reimbursement | 8,917,971 |
Expense waiver/reimbursement from Manager (See Note 3) | (302,921) |
Net expenses | 8,615,050 |
Net investment income (loss) | 65,056,125 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on investments | 236,859 |
Net change in unrealized appreciation (depreciation) on investments | 52,468,460 |
Net realized and unrealized gain (loss) | 52,705,319 |
Net increase (decrease) in net assets resulting from operations | $117,761,444 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 | MainStay MacKay Short Duration High Income Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 65,056,125 | $ 95,813,155 |
Net realized gain (loss) | 236,859 | (17,516,270) |
Net change in unrealized appreciation (depreciation) | 52,468,460 | 27,342,387 |
Net increase (decrease) in net assets resulting from operations | 117,761,444 | 105,639,272 |
Distributions to shareholders: | | |
Class A | (11,236,231) | (17,419,336) |
Investor Class | (159,448) | (294,090) |
Class C | (975,906) | (1,298,778) |
Class I | (54,275,253) | (77,891,562) |
Class R2(a) | (11,971) | (32,277) |
Class R3(a) | (3,177) | (10,945) |
Total distributions to shareholders | (66,661,986) | (96,946,988) |
Capital share transactions: | | |
Net proceeds from sales of shares | 717,767,677 | 1,113,612,550 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 58,970,099 | 86,836,188 |
Cost of shares redeemed | (407,831,315) | (729,398,889) |
Increase (decrease) in net assets derived from capital share transactions | 368,906,461 | 471,049,849 |
Net increase (decrease) in net assets | 420,005,919 | 479,742,133 |
Net Assets |
Beginning of period | 1,847,365,450 | 1,367,623,317 |
End of period | $2,267,371,369 | $1,847,365,450 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
25
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.18 | | $ 9.09 | | $ 9.83 | | $ 9.45 | | $ 9.84 | | $ 9.76 |
Net investment income (loss) | 0.29(a) | | 0.51(a) | | 0.37(a) | | 0.37(a) | | 0.42 | | 0.44 |
Net realized and unrealized gain (loss) | 0.26 | | 0.09 | | (0.73) | | 0.42 | | (0.37) | | 0.08 |
Total from investment operations | 0.55 | | 0.60 | | (0.36) | | 0.79 | | 0.05 | | 0.52 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.29) | | (0.51) | | (0.38) | | (0.41) | | (0.44) | | (0.44) |
Return of capital | — | | — | | — | | (0.00)‡ | | — | | — |
Total distributions | (0.29) | | (0.51) | | (0.38) | | (0.41) | | (0.44) | | (0.44) |
Net asset value at end of period | $ 9.44 | | $ 9.18 | | $ 9.09 | | $ 9.83 | | $ 9.45 | | $ 9.84 |
Total investment return (b) | 6.07% | | 6.72% | | (3.66)% | | 8.40% | | 0.65% | | 5.40% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 6.17%†† | | 5.52% | | 3.92% | | 3.78% | | 4.46% | | 4.48% |
Net expenses (c) | 1.02%†† | | 1.02% | | 1.02% | | 1.01% | | 1.02% | | 1.04% |
Expenses (before waiver/reimbursement) (c) | 1.06%†† | | 1.06% | | 1.02% | | 1.01% | | 1.02% | | 1.04% |
Portfolio turnover rate | 13% | | 22% | | 30% | | 47% | | 64% | | 32% |
Net assets at end of period (in 000’s) | $ 383,580 | | $ 327,716 | | $ 300,909 | | $ 303,646 | | $ 252,753 | | $ 237,475 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.18 | | $ 9.09 | | $ 9.83 | | $ 9.46 | | $ 9.84 | | $ 9.76 |
Net investment income (loss) | 0.29(a) | | 0.50(a) | | 0.36(a) | | 0.37(a) | | 0.42 | | 0.43 |
Net realized and unrealized gain (loss) | 0.26 | | 0.09 | | (0.72) | | 0.40 | | (0.36) | | 0.08 |
Total from investment operations | 0.55 | | 0.59 | | (0.36) | | 0.77 | | 0.06 | | 0.51 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.29) | | (0.50) | | (0.38) | | (0.40) | | (0.44) | | (0.43) |
Return of capital | — | | — | | — | | (0.00)‡ | | — | | — |
Total distributions | (0.29) | | (0.50) | | (0.38) | | (0.40) | | (0.44) | | (0.43) |
Net asset value at end of period | $ 9.44 | | $ 9.18 | | $ 9.09 | | $ 9.83 | | $ 9.46 | | $ 9.84 |
Total investment return (b) | 6.03% | | 6.63% | | (3.73)% | | 8.18% | | 0.67% | | 5.33% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 6.11%†† | | 5.43% | | 3.82% | | 3.72% | | 4.38% | | 4.40% |
Net expenses (c) | 1.08%†† | | 1.11% | | 1.10% | | 1.10% | | 1.11% | | 1.11% |
Portfolio turnover rate | 13% | | 22% | | 30% | | 47% | | 64% | | 32% |
Net assets at end of period (in 000's) | $ 5,225 | | $ 5,299 | | $ 5,400 | | $ 5,780 | | $ 6,278 | | $ 7,156 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
26 | MainStay MacKay Short Duration High Income Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.18 | | $ 9.09 | | $ 9.83 | | $ 9.45 | | $ 9.84 | | $ 9.76 |
Net investment income (loss) | 0.25(a) | | 0.43(a) | | 0.29(a) | | 0.29(a) | | 0.34 | | 0.36 |
Net realized and unrealized gain (loss) | 0.26 | | 0.09 | | (0.72) | | 0.41 | | (0.37) | | 0.08 |
Total from investment operations | 0.51 | | 0.52 | | (0.43) | | 0.70 | | (0.03) | | 0.44 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.26) | | (0.43) | | (0.31) | | (0.32) | | (0.36) | | (0.36) |
Return of capital | — | | — | | — | | (0.00)‡ | | — | | — |
Total distributions | (0.26) | | (0.43) | | (0.31) | | (0.32) | | (0.36) | | (0.36) |
Net asset value at end of period | $ 9.43 | | $ 9.18 | | $ 9.09 | | $ 9.83 | | $ 9.45 | | $ 9.84 |
Total investment return (b) | 5.54% | | 5.84% | | (4.46)% | | 7.48% | | (0.19)% | | 4.54% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 5.36%†† | | 4.68% | | 3.05% | | 2.98% | | 3.64% | | 3.65% |
Net expenses (c) | 1.83%†† | | 1.86% | | 1.85% | | 1.85% | | 1.86% | | 1.86% |
Portfolio turnover rate | 13% | | 22% | | 30% | | 47% | | 64% | | 32% |
Net assets at end of period (in 000’s) | $ 39,991 | | $ 29,903 | | $ 25,772 | | $ 35,636 | | $ 40,948 | | $ 48,550 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
27
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.18 | | $ 9.09 | | $ 9.84 | | $ 9.46 | | $ 9.84 | | $ 9.76 |
Net investment income (loss) | 0.30(a) | | 0.54(a) | | 0.39(a) | | 0.40(a) | | 0.45 | | 0.46 |
Net realized and unrealized gain (loss) | 0.26 | | 0.08 | | (0.73) | | 0.41 | | (0.36) | | 0.08 |
Total from investment operations | 0.56 | | 0.62 | | (0.34) | | 0.81 | | 0.09 | | 0.54 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.30) | | (0.53) | | (0.41) | | (0.43) | | (0.47) | | (0.46) |
Return of capital | — | | — | | — | | (0.00)‡ | | — | | — |
Total distributions | (0.30) | | (0.53) | | (0.41) | | (0.43) | | (0.47) | | (0.46) |
Net asset value at end of period | $ 9.44 | | $ 9.18 | | $ 9.09 | | $ 9.84 | | $ 9.46 | | $ 9.84 |
Total investment return (b) | 6.19% | | 6.98% | | (3.52)% | | 8.66% | | 1.01% | | 5.67% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 6.41%†† | | 5.78% | | 4.14% | | 4.05% | | 4.72% | | 4.73% |
Net expenses (c) | 0.78%†† | | 0.78% | | 0.77% | | 0.76% | | 0.77% | | 0.79% |
Expenses (before waiver/reimbursement) (c) | 0.81%†† | | 0.81% | | 0.77% | | 0.76% | | 0.77% | | 0.79% |
Portfolio turnover rate | 13% | | 22% | | 30% | | 47% | | 64% | | 32% |
Net assets at end of period (in 000’s) | $ 1,838,576 | | $ 1,483,473 | | $ 1,034,873 | | $ 1,147,287 | | $ 1,101,084 | | $ 1,268,856 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
28 | MainStay MacKay Short Duration High Income Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MacKay Short Duration High Income Fund (formerly MainStay MacKay Short Duration High Yield Fund) (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | December 17, 2012 |
Investor Class | December 17, 2012 |
Class C | December 17, 2012 |
Class I | December 17, 2012 |
Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. Effective April 15, 2019, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions of Class A and Investor Class shares made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. For purchases of Class A and Investor Class shares made from August 1, 2017 through April 14, 2019, a CDSC of 1.00% may be imposed on certain redemptions (for investments of $500,000 which paid no initial sales charge) of such shares within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge and a 1.00% CDSC may be imposed on certain redemptions of such shares made within 18 months of the date of purchase of Class C shares. Investments in Class C shares are subject to a purchase maximum of $250,000. Class I shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under a distribution plan pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher
distribution and/or service fees than Class A and Investor Class shares. Class I shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek high current income. Capital appreciation is a secondary objective.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation
Notes to Financial Statements (Unaudited) (continued)
materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the
30 | MainStay MacKay Short Duration High Income Fund |
valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Debt securities (other than convertible and municipal bonds) are valued at the evaluated bid prices (evaluated mean prices in the case of convertible and municipal bonds) supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent’s good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants’ assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values at the regular close of trading of the Exchange on each valuation date. Debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Debt securities, including corporate bonds, U.S. government and federal agency bonds, municipal bonds, foreign bonds, convertible bonds, asset-backed securities and mortgage-backed securities are generally categorized as Level 2 in the hierarchy.
Loan assignments, participations and commitments are valued at the average of bid quotations obtained from the engaged independent pricing service and are generally categorized as Level 2 in the hierarchy. Certain loan assignments, participations and commitments may be valued by utilizing significant unobservable inputs obtained from the pricing service and are generally categorized as Level 3 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
A portfolio investment may be classified as an illiquid investment under the Trust's written liquidity risk management program and related procedures (“Liquidity Program”). Illiquidity of an investment might prevent the sale of such investment at a time when the Manager or the Subadvisor might wish to sell, and these investments could have the effect of decreasing the overall level of the Fund's liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid investments, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary materially from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid investments may result in a loss or may be costly to the Fund. An illiquid investment is any investment that the
Manager or Subadvisor reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The liquidity classification of each investment will be made using information obtained after reasonable inquiry and taking into account, among other things, relevant market, trading and investment-specific considerations in accordance with the Liquidity Program. Illiquid investments are often fair valued in accordance with the Fund's procedures described above. The liquidity of the Fund's investments was determined as of April 30, 2024, and can change at any time.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 from net investment income, if any, at least monthly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital. Discounts and premiums on securities purchased for the Fund are accreted and amortized, respectively, on the effective
Notes to Financial Statements (Unaudited) (continued)
interest rate method. Income from payment-in-kind securities is accreted daily based on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) Loan Assignments, Participations and Commitments. The Fund may invest in loan assignments and participations ("loans"). Commitments are agreements to make money available to a borrower in a specified amount, at a specified rate and within a specified time. The Fund records an investment when the borrower withdraws money on a commitment or when a funded loan is purchased (trade date) 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, the Secured Overnight Financing Rate ("SOFR") or an alternative reference rate.
The loans in which the Fund may invest 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. If the Fund purchases an assignment from a lender, the Fund will generally have direct contractual rights against the borrower in favor of the lender. If the Fund purchases a participation interest either from a lender or a participant, the Fund typically will have established a direct contractual relationship with the seller of the participation interest, but not with the borrower. Consequently, the Fund is subject to the credit risk of the lender or participant who sold the participation interest to the Fund, in addition to the usual credit risk of the borrower. In the event that the borrower, selling participant or intermediate participants become insolvent or enter 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. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities.
(H) Debt Securities Risk. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by, among other things, economic or political developments in a specific country, industry or region. Debt securities are also subject to the risks associated with changes in interest rates. The Fund primarily invests in high-yield debt securities (commonly referred to as “junk bonds”), which are considered speculative because they present a greater risk of loss, including default, than higher rated debt securities. These securities pay investors a premium—a higher interest rate or yield than investment grade debt securities—because of the increased risk of loss. These securities can also be subject to greater price volatility. In times of unusual or adverse market, economic or political conditions, these securities may experience higher than normal default rates.
The loans in which the Fund invests are usually rated below investment grade, or if unrated, determined by the Subadvisor to be of comparable quality (commonly referred to as “junk bonds”) and are generally considered speculative because they present a greater risk of loss, including default, than higher quality debt securities. Moreover, such securities may, under certain circumstances, be particularly susceptible to liquidity and valuation risks.
Although certain 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 value of these investments could decline significantly. As a result, the Fund’s NAVs could go down and you could lose money.
In addition, loans generally are subject to extended settlement periods that may be longer than seven days. As a result, the Fund may be adversely affected by selling other investments at an unfavorable time and/or under unfavorable conditions or engaging in borrowing transactions, such as borrowing against its credit facility, to raise cash to meet redemption obligations or pursue other investment opportunities.
In certain circumstances, loans may not be deemed to be securities. As a result, the Fund may not have the protection of the anti-fraud provisions of the federal securities laws. In such cases, the Fund generally must rely on the contractual provisions in the loan agreement and common-law fraud protections under applicable state law.
(I) LIBOR Replacement Risk. The Fund may invest in certain debt securities, derivatives or other financial instruments that have relied or continue to rely on LIBOR, as a “benchmark” or “reference rate” for various interest rate calculations. As of January 1, 2022, the United Kingdom Financial Conduct Authority ("FCA"), which regulates LIBOR,
32 | MainStay MacKay Short Duration High Income Fund |
ceased its active encouragement of banks to provide the quotations needed to sustain most LIBOR rates due to the absence of an active market for interbank unsecured lending and other reasons. In connection with supervisory guidance from U.S. regulators, certain U.S. regulated entities have generally ceased to enter into certain new LIBOR contracts after January 1, 2022. On March 15, 2022, the Adjustable Interest Rate (LIBOR) Act was signed into law. This law provides a statutory fallback mechanism on a nationwide basis to replace LIBOR with a benchmark rate that is selected by the Board of Governors of the Federal Reserve System and based on SOFR (which measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities) for tough legacy contracts. On February 27, 2023, the Federal Reserve System’s final rule in connection with this law became effective, establishing benchmark replacements based on SOFR and Term SOFR (a forward-looking measurement of market expectations of SOFR implied from certain derivatives markets) for applicable tough legacy contracts governed by U.S. law. In addition, the FCA has announced that it will require the publication of synthetic LIBOR for the one-month, three-month and six-month U.S. Dollar LIBOR settings after June 30, 2023 through at least September 30, 2024. Certain of the Fund's investments may involve individual tough legacy contracts which may be subject to the Adjustable Interest Rate (LIBOR) Act or synthetic LIBOR and no assurances can be given that these measures will have had the intended effects. Although the transition process away from LIBOR for many instruments has been completed, some LIBOR use is continuing and there are potential effects related to the transition away from LIBOR or continued use of LIBOR on the Fund.
The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund's performance and/or net asset value. It could also lead to a reduction in the interest rates on, and the value of, some LIBOR-based investments and reduce the effectiveness of hedges mitigating risk in connection with LIBOR-based investments. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include enhanced provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund's performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The usefulness of LIBOR as a benchmark could deteriorate anytime during this transition period. Any such effects of the transition process, including unforeseen effects, could result in losses 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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC ("MacKay Shields" or the "Subadvisor"), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.65% of the Fund's average daily net assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that the Total Annual Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 1.02%; Investor Class, 1.13%; Class C, 1.88% and Class I, 0.78%. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $6,660,536 and
Notes to Financial Statements (Unaudited) (continued)
waived fees and/or reimbursed certain class specific expenses in the amount of $302,921 and paid the Subadvisor fees in the amount of $3,178,808.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 Plan, Class R3 shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, for a total 12b-1 fee of 0.50%. Class I shares are not subject to a distribution and/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.
In accordance with the Shareholder Services Plans for the 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 R2 and Class R3 shares. For its services, the Manager, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R2 and Class R3 shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the period November 1, 2023 through February 28, 2024, shareholder service fees incurred by the Fund were as follows:
* | Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $17,397 and $118, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class and Class C shares during the six-month period ended April 30, 2024, of $45,686, $300 and $3,662, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 228,415 | $— |
Investor Class | 3,910 | — |
Class C | 26,449 | — |
Class I | 1,056,446 | — |
Class R2* | 331 | — |
Class R3* | 92 | — |
* | Effective at the close of business on February 23, 2024, Class R2 and R3 shares were liquidated. |
(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. As described in the Fund's
34 | MainStay MacKay Short Duration High Income Fund |
prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class A | $6,378,580 | 1.7% |
Class I | 5,886,557 | 0.3 |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $2,151,246,162 | $26,278,115 | $(33,102,486) | $(6,824,371) |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $75,137,122, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $22,986 | $52,151 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $96,946,988 |
Note 5–Restricted Securities
Restricted securities are subject to legal or contractual restrictions on resale. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933, as amended. Disposal of restricted securities may involve time consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve.
As of April 30, 2024, restricted securities held by the Fund were as follows:
Security | Date(s) of Acquisition | Principal Amount/ Shares | Cost | 4/30/24 Value | Percent of Net Assets |
Briggs & Stratton Corp. Escrow Claim Shares |
Corporate Bond 6.875%, due 12/15/20 | 2/26/21 | $ 3,425,000 | $ 3,724,482 | $ — | 0.0% ‡ |
GenOn Energy, Inc. |
Common Stock | 12/14/18 | 20,915 | 2,342,005 | 449,672 | 0.0‡ |
Sterling Entertainment Enterprises LLC |
Corporate Bond 10.25%, due 1/15/25 | 12/28/17 | $ 3,000,000 | 2,993,887 | 2,787,900 | 0.1 |
Total | | | $ 9,060,374 | $ 3,237,572 | 0.1% |
‡ | Less than one-tenth of a percent. |
Notes to Financial Statements (Unaudited) (continued)
Note 6–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 7–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple SOFR + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 8–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 9–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $594,282 and $262,498, respectively.
Note 10–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 9,456,931 | $ 89,321,595 |
Shares issued to shareholders in reinvestment of distributions | 1,084,763 | 10,238,252 |
Shares redeemed | (5,680,307) | (53,600,673) |
Net increase (decrease) in shares outstanding before conversion | 4,861,387 | 45,959,174 |
Shares converted into Class A (See Note 1) | 117,855 | 1,115,966 |
Shares converted from Class A (See Note 1) | (32,307) | (305,173) |
Net increase (decrease) | 4,946,935 | $ 46,769,967 |
Year ended October 31, 2023: | | |
Shares sold | 11,152,609 | $ 103,171,985 |
Shares issued to shareholders in reinvestment of distributions | 1,700,212 | 15,715,196 |
Shares redeemed | (10,382,531) | (95,962,463) |
Net increase (decrease) in shares outstanding before conversion | 2,470,290 | 22,924,718 |
Shares converted into Class A (See Note 1) | 141,358 | 1,307,397 |
Shares converted from Class A (See Note 1) | (11,736) | (108,177) |
Net increase (decrease) | 2,599,912 | $ 24,123,938 |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 28,727 | $ 271,548 |
Shares issued to shareholders in reinvestment of distributions | 16,425 | 155,046 |
Shares redeemed | (46,527) | (438,321) |
Net increase (decrease) in shares outstanding before conversion | (1,375) | (11,727) |
Shares converted into Investor Class (See Note 1) | 11,420 | 107,803 |
Shares converted from Investor Class (See Note 1) | (33,668) | (318,538) |
Net increase (decrease) | (23,623) | $ (222,462) |
Year ended October 31, 2023: | | |
Shares sold | 67,150 | $ 621,181 |
Shares issued to shareholders in reinvestment of distributions | 30,998 | 286,556 |
Shares redeemed | (96,228) | (889,274) |
Net increase (decrease) in shares outstanding before conversion | 1,920 | 18,463 |
Shares converted into Investor Class (See Note 1) | 26,620 | 246,344 |
Shares converted from Investor Class (See Note 1) | (45,322) | (418,984) |
Net increase (decrease) | (16,782) | $ (154,177) |
|
36 | MainStay MacKay Short Duration High Income Fund |
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,432,695 | $ 13,520,882 |
Shares issued to shareholders in reinvestment of distributions | 92,859 | 876,291 |
Shares redeemed | (506,605) | (4,784,333) |
Net increase (decrease) in shares outstanding before conversion | 1,018,949 | 9,612,840 |
Shares converted from Class C (See Note 1) | (37,966) | (358,919) |
Net increase (decrease) | 980,983 | $ 9,253,921 |
Year ended October 31, 2023: | | |
Shares sold | 1,475,489 | $ 13,628,109 |
Shares issued to shareholders in reinvestment of distributions | 119,409 | 1,103,667 |
Shares redeemed | (1,058,198) | (9,773,443) |
Net increase (decrease) in shares outstanding before conversion | 536,700 | 4,958,333 |
Shares converted from Class C (See Note 1) | (113,708) | (1,051,200) |
Net increase (decrease) | 422,992 | $ 3,907,133 |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 65,089,611 | $ 614,646,408 |
Shares issued to shareholders in reinvestment of distributions | 5,051,504 | 47,685,566 |
Shares redeemed | (36,894,934) | (347,978,143) |
Net increase (decrease) in shares outstanding before conversion | 33,246,181 | 314,353,831 |
Shares converted into Class I (See Note 1) | 34,662 | 327,455 |
Shares converted from Class I (See Note 1) | (60,029) | (568,594) |
Net increase (decrease) | 33,220,814 | $ 314,112,692 |
Year ended October 31, 2023: | | |
Shares sold | 107,578,702 | $ 995,906,069 |
Shares issued to shareholders in reinvestment of distributions | 7,535,877 | 69,688,085 |
Shares redeemed | (67,346,456) | (622,749,207) |
Net increase (decrease) in shares outstanding before conversion | 47,768,123 | 442,844,947 |
Shares converted into Class I (See Note 1) | 11,944 | 110,187 |
Shares converted from Class I (See Note 1) | (9,206) | (85,567) |
Net increase (decrease) | 47,770,861 | $ 442,869,567 |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 46 | $ 430 |
Shares issued to shareholders in reinvestment of distributions | 1,271 | 11,971 |
Shares redeemed | (83,592) | (793,124) |
Net increase (decrease) | (82,275) | $ (780,723) |
Year ended October 31, 2023: | | |
Shares sold | 26,857 | $ 250,837 |
Shares issued to shareholders in reinvestment of distributions | 3,492 | 32,277 |
Shares redeemed | (2,509) | (23,182) |
Net increase (decrease) | 27,840 | $ 259,932 |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 720 | $ 6,814 |
Shares issued to shareholders in reinvestment of distributions | 316 | 2,973 |
Shares redeemed | (24,954) | (236,721) |
Net increase (decrease) | (23,918) | $ (226,934) |
Year ended October 31, 2023: | | |
Shares sold | 3,737 | $ 34,369 |
Shares issued to shareholders in reinvestment of distributions | 1,126 | 10,407 |
Shares redeemed | (142) | (1,320) |
Net increase (decrease) | 4,721 | $ 43,456 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 11–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 12–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay MacKay Short Duration High Income Fund (formerly known as the MacKay Short Duration High Yield 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and MacKay in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and MacKay in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or MacKay that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually,
MacKay personnel. In addition, the Board took into account other information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and MacKay; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and MacKay; (iii) the costs of the services provided, and profits realized, by New York Life Investments and MacKay with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
38 | MainStay MacKay Short Duration High Income Fund |
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and MacKay. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and MacKay resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and MacKay
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by MacKay, evaluating the performance of MacKay, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of MacKay and ongoing analysis of, and interactions with, MacKay with respect to, among other things, the Fund’s investment performance and risks as well as MacKay’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that MacKay provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated MacKay’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and MacKay’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at MacKay. The Board considered New York Life Investments’ and MacKay’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and MacKay and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered MacKay’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and MacKay regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of MacKay and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and MacKay
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because MacKay is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and MacKay in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and MacKay, and profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including MacKay’s, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and MacKay and acknowledged that New York Life Investments and MacKay must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial
position for New York Life Investments and MacKay to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to MacKay from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to MacKay in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
40 | MainStay MacKay Short Duration High Income Fund |
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including MacKay, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to MacKay is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and MacKay on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds. The Board considered its discussions with representatives from New York Life Investments regarding the management fee paid by the Fund. The Board also considered its discussions with representatives from New York Life Investments regarding the total net expenses paid by the Fund.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account
information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
42 | MainStay MacKay Short Duration High Income Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
44 | MainStay MacKay Short Duration High Income Fund |
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022284 MS081-24 | MSSHI10-06/24 |
(NYLIM) NL232
MainStay MacKay Total Return Bond Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares | Maximum 4.50% Initial Sales Charge | With sales charges | 1/2/2004 | 3.11% | -3.04% | -0.44% | 0.75% | 0.91% |
| | Excluding sales charges | | 7.97 | 1.53 | 0.48 | 1.22 | 0.91 |
Investor Class Shares3 | Maximum 4.00% Initial Sales Charge | With sales charges | 2/28/2008 | 3.60 | -2.79 | -0.67 | 0.62 | 1.18 |
| | Excluding sales charges | | 7.92 | 1.26 | 0.25 | 1.09 | 1.18 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 1/2/2004 | 6.41 | -0.47 | -0.49 | 0.33 | 1.93 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 7.41 | 0.50 | -0.49 | 0.33 | 1.93 |
Class I Shares | No Sales Charge | | 1/2/1991 | 8.31 | 1.94 | 0.80 | 1.55 | 0.65 |
Class R6 Shares | No Sales Charge | | 12/29/2014 | 8.19 | 1.94 | 0.82 | 1.55 | 0.53 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 7.99 | 1.38 | N/A | -3.03 | 1.18 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg U.S. Aggregate Bond Index2 | 4.97% | -1.47% | -0.16% | 1.20% |
Morningstar Intermediate Core-Plus Bond Category Average3 | 5.83 | -0.12 | 0.20 | 1.35 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg U.S. Aggregate Bond Index, which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the performance of 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. |
3. | The Morningstar Intermediate Core-Plus Bond Category Average is representative of funds that invest primarily in investment-grade U.S. fixed-income issues including government, corporate, and securitized debt, but generally have greater flexibility than core offerings to hold non-core sectors such as corporate high yield, bank loan, emerging-markets debt, and non-U.S. currency exposures. Their durations (a measure of interest-rate sensitivity) typically range between 75% and 125% of the three-year average of the effective duration of the Morningstar Core Bond Index. Results are based on average total returns of similar funds with all dividends 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 MacKay Total Return Bond Fund |
Cost in Dollars of a $1,000 Investment in MainStay MacKay Total Return 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,079.70 | $4.50 | $1,020.54 | $4.37 | 0.87% |
Investor Class Shares | $1,000.00 | $1,079.20 | $5.74 | $1,019.34 | $5.57 | 1.11% |
Class C Shares | $1,000.00 | $1,074.10 | $9.59 | $1,015.61 | $9.32 | 1.86% |
Class I Shares | $1,000.00 | $1,083.10 | $2.33 | $1,022.63 | $2.26 | 0.45% |
Class R6 Shares | $1,000.00 | $1,081.90 | $2.33 | $1,022.63 | $2.26 | 0.45% |
SIMPLE Class Shares | $1,000.00 | $1,079.90 | $5.07 | $1,019.99 | $4.92 | 0.98% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Portfolio Composition as of April 30, 2024 (Unaudited)
‡ Less than one-tenth of a percent
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | GNMA, (zero coupon)-7.888%, due 7/20/49–2/16/66 |
2. | UMBS, 30 Year, 3.50%-6.50%, due 12/1/44–3/1/54 |
3. | UMBS Pool, 30 Year, 2.50%-6.50%, due 1/1/52–3/1/54 |
4. | FHLMC, (zero coupon)-4.50%, due 1/15/41–1/25/55 |
5. | FNMA, (zero coupon)-3.50%, due 6/25/46–7/25/54 |
6. | U.S. Treasury Notes, 4.625%, due 4/30/29–4/30/31 |
7. | Nissan Motor Acceptance Co. LLC, 1.125%-1.85%, due 9/16/24–9/16/26 |
8. | Ford Motor Credit Co. LLC, 2.30%-7.20%, due 2/10/25–6/10/30 |
9. | Petroleos Mexicanos, 6.50%-6.75%, due 3/13/27–9/21/47 |
10. | Lloyds Banking Group plc, 4.582%-4.976%, due 12/10/25–8/11/33 |
8 | MainStay MacKay Total Return Bond Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Long-Term Bonds 98.4% |
Asset-Backed Securities 10.1% |
Automobile Asset-Backed Securities 6.0% |
American Credit Acceptance Receivables Trust | |
Series 2022-1, Class D | | |
2.46%, due 3/13/28 (a) | $ 2,265,000 | $ 2,210,722 |
CPS Auto Receivables Trust | |
Series 2021-C, Class E | | |
3.21%, due 9/15/28 (a) | 830,000 | 783,104 |
Exeter Automobile Receivables Trust (a) | |
Series 2021-2A, Class E | | |
2.90%, due 7/17/28 | 1,040,000 | 983,244 |
Series 2021-3A, Class E | | |
3.04%, due 12/15/28 | 2,090,000 | 1,940,352 |
Flagship Credit Auto Trust (a) | |
Series 2020-1, Class E | | |
3.52%, due 6/15/27 | 1,950,000 | 1,867,823 |
Series 2019-2, Class E | | |
4.52%, due 12/15/26 | 1,910,000 | 1,881,055 |
Series 2022-2, Class D | | |
5.80%, due 4/17/28 | 1,050,000 | 982,766 |
Ford Credit Auto Owner Trust (a) | |
Series 2021-2, Class D | | |
2.60%, due 5/15/34 | 230,000 | 208,867 |
Series 2023-2, Class B | | |
5.92%, due 2/15/36 | 500,000 | 500,480 |
Series 2023-1, Class D | | |
6.26%, due 8/15/35 | 755,000 | 747,373 |
GLS Auto Receivables Issuer Trust (a) | |
Series 2021-2A, Class E | | |
2.87%, due 5/15/28 | 1,895,000 | 1,793,370 |
Series 2021-3A, Class E | | |
3.20%, due 10/16/28 | 1,685,000 | 1,562,277 |
Series 2020-1A, Class D | | |
3.68%, due 11/16/26 | 419,113 | 416,636 |
Series 2022-3A, Class E | | |
8.35%, due 10/15/29 | 665,000 | 664,096 |
Hertz Vehicle Financing III LLC | |
Series 2023-1A, Class C | | |
6.91%, due 6/25/27 (a) | 235,000 | 234,017 |
Hertz Vehicle Financing III LP (a) | |
Series 2021-2A, Class A | | |
1.68%, due 12/27/27 | 300,000 | 269,681 |
Series 2021-2A, Class B | | |
2.12%, due 12/27/27 | 1,215,000 | 1,095,791 |
Hertz Vehicle Financing LLC (a) | |
Series 2021-1A, Class B | | |
1.56%, due 12/26/25 | 870,000 | 852,298 |
| Principal Amount | Value |
|
Automobile Asset-Backed Securities (continued) |
Hertz Vehicle Financing LLC (a) (continued) | |
Series 2021-1A, Class C | | |
2.05%, due 12/26/25 | $ 890,000 | $ 872,174 |
| | 19,866,126 |
Other Asset-Backed Securities 4.1% |
American Airlines Pass-Through Trust | |
Series 2019-1, Class AA | | |
3.15%, due 2/15/32 | 1,057,048 | 931,366 |
Series 2016-2, Class A | | |
3.65%, due 6/15/28 | 1,349,000 | 1,217,933 |
Series 2019-1, Class B | | |
3.85%, due 2/15/28 | 788,192 | 723,208 |
Avant Loans Funding Trust | |
Series 2022-REV1, Class D | | |
11.02%, due 9/15/31 (a) | 690,000 | 678,300 |
British Airways Pass-Through Trust | |
Series 2021-1, Class A | | |
2.90%, due 3/15/35 (a) | 1,696,522 | 1,440,024 |
CF Hippolyta Issuer LLC (a) | |
Series 2020-1, Class A1 | | |
1.69%, due 7/15/60 | 1,401,346 | 1,313,508 |
Series 2021-1A, Class B1 | | |
1.98%, due 3/15/61 | 2,012,126 | 1,768,291 |
CVS Pass-Through Trust | |
5.789%, due 1/10/26 (a) | 14,261 | 14,192 |
FORA Financial Asset Securitization LLC | |
Series 2021-1A, Class A | | |
2.62%, due 5/15/27 (a) | 845,000 | 814,006 |
HPEFS Equipment Trust | |
Series 2024-1A, Class D | | |
5.82%, due 11/20/31 (a) | 505,000 | 500,553 |
JetBlue Pass-Through Trust | |
Series 2019-1, Class AA | | |
2.75%, due 5/15/32 | 641,429 | 541,140 |
New Economy Assets Phase 1 Sponsor LLC (a) | |
Series 2021-1, Class A1 | | |
1.91%, due 10/20/61 | 1,460,000 | 1,272,113 |
Series 2021-1, Class B1 | | |
2.41%, due 10/20/61 | 1,345,000 | 1,131,156 |
United Airlines Pass-Through Trust | |
Series 2020-1, Class A | | |
5.875%, due 10/15/27 | 1,098,060 | 1,095,045 |
| | 13,440,835 |
Total Asset-Backed Securities (Cost $34,761,015) | | 33,306,961 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds 35.0% |
Aerospace & Defense 0.3% |
Boeing Co. (The) (a) | | |
6.528%, due 5/1/34 | $ 450,000 | $ 453,240 |
6.858%, due 5/1/54 | 470,000 | 471,274 |
| | 924,514 |
Agriculture 0.6% |
Altria Group, Inc. | | |
2.45%, due 2/4/32 | 1,850,000 | 1,460,518 |
BAT Capital Corp. | | |
3.734%, due 9/25/40 | 720,000 | 521,142 |
| | 1,981,660 |
Airlines 1.6% |
American Airlines, Inc. (a) | | |
5.50%, due 4/20/26 | 963,333 | 952,158 |
5.75%, due 4/20/29 | 860,000 | 830,530 |
Delta Air Lines, Inc. (a) | | |
4.50%, due 10/20/25 | 557,256 | 549,580 |
4.75%, due 10/20/28 | 1,855,000 | 1,795,793 |
Mileage Plus Holdings LLC | | |
6.50%, due 6/20/27 (a) | 1,170,000 | 1,171,975 |
| | 5,300,036 |
Apparel 0.2% |
Tapestry, Inc. | | |
7.85%, due 11/27/33 | 585,000 | 611,088 |
Auto Manufacturers 2.6% |
Ford Motor Credit Co. LLC | | |
2.30%, due 2/10/25 | 755,000 | 733,689 |
4.125%, due 8/17/27 | 610,000 | 572,935 |
6.80%, due 5/12/28 | 700,000 | 714,316 |
6.95%, due 3/6/26 | 670,000 | 679,066 |
7.20%, due 6/10/30 | 555,000 | 575,042 |
General Motors Financial Co., Inc. | | |
2.70%, due 6/10/31 | 1,335,000 | 1,081,765 |
4.30%, due 4/6/29 | 940,000 | 881,128 |
Nissan Motor Acceptance Co. LLC (a) | | |
1.125%, due 9/16/24 | 1,015,000 | 994,892 |
1.85%, due 9/16/26 | 2,670,000 | 2,412,384 |
| | 8,645,217 |
| Principal Amount | Value |
|
Banks 12.3% |
Australia & New Zealand Banking Group Ltd. | | |
5.731% (5 Year Treasury Constant Maturity Rate + 1.618%), due 9/18/34 (a)(b) | $ 935,000 | $ 911,919 |
Banco Santander SA | | |
5.294%, due 8/18/27 | 1,200,000 | 1,181,081 |
6.35%, due 3/14/34 | 800,000 | 780,292 |
Bank of America Corp. (c) | | |
2.087%, due 6/14/29 | 540,000 | 469,804 |
2.496%, due 2/13/31 | 755,000 | 635,398 |
Series MM | | |
4.30%, due 1/28/25 (d) | 910,000 | 885,284 |
Barclays plc (b)(d) | | |
4.375% (5 Year Treasury Constant Maturity Rate + 3.41%), due 3/15/28 | 2,135,000 | 1,738,508 |
8.00% (5 Year Treasury Constant Maturity Rate + 5.431%), due 3/15/29 | 370,000 | 363,841 |
BNP Paribas SA | | |
4.625% (5 Year Treasury Constant Maturity Rate + 3.34%), due 2/25/31 (a)(b)(d) | 1,825,000 | 1,464,350 |
BPCE SA (a) | | |
5.125%, due 1/18/28 | 345,000 | 339,155 |
6.714%, due 10/19/29 (c) | 410,000 | 421,918 |
Citigroup, Inc. | | |
Series Y | | |
4.15% (5 Year Treasury Constant Maturity Rate + 3.00%), due 11/15/26 (b)(d) | 765,000 | 702,262 |
5.30%, due 5/6/44 (e) | 774,000 | 715,473 |
Citizens Bank NA | | |
6.064%, due 10/24/25 (c) | 860,000 | 855,966 |
Comerica, Inc. | | |
5.982%, due 1/30/30 (c) | 770,000 | 747,739 |
Credit Agricole SA | | |
4.75% (5 Year Treasury Constant Maturity Rate + 3.237%), due 3/23/29 (a)(b)(d) | 1,780,000 | 1,512,526 |
Deutsche Bank AG | | |
3.035%, due 5/28/32 (c) | 890,000 | 729,766 |
6.597% (SOFR + 1.219%), due 11/16/27 (b) | 1,325,000 | 1,314,055 |
First Horizon Bank | | |
5.75%, due 5/1/30 | 1,606,000 | 1,482,253 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay MacKay Total Return Bond Fund |
| Principal Amount | Value |
Corporate Bonds (continued) |
Banks (continued) |
First Horizon Corp. | | |
4.00%, due 5/26/25 | $ 2,115,000 | $ 2,063,527 |
Goldman Sachs Group, Inc. (The) | | |
1.948%, due 10/21/27 (c) | 730,000 | 666,545 |
1.992%, due 1/27/32 (c) | 740,000 | 584,234 |
6.75%, due 10/1/37 | 405,000 | 427,458 |
Huntington Bancshares, Inc. | | |
5.709%, due 2/2/35 (c) | 895,000 | 858,039 |
Intesa Sanpaolo SpA | | |
7.00%, due 11/21/25 (a) | 435,000 | 440,413 |
KeyBank NA | | |
4.90%, due 8/8/32 | 715,000 | 613,982 |
KeyCorp | | |
6.401%, due 3/6/35 (c) | 425,000 | 418,073 |
Lloyds Banking Group plc | | |
4.582%, due 12/10/25 | 2,643,000 | 2,579,030 |
4.976% (1 Year Treasury Constant Maturity Rate + 2.30%), due 8/11/33 (b) | 680,000 | 638,010 |
M&T Bank Corp. | | |
6.082%, due 3/13/32 (c) | 625,000 | 610,636 |
Macquarie Group Ltd. | | |
2.871%, due 1/14/33 (a)(c) | 1,770,000 | 1,431,925 |
Mizuho Financial Group, Inc. | | |
3.261% (1 Year Treasury Constant Maturity Rate + 1.25%), due 5/22/30 (b) | 610,000 | 543,915 |
Morgan Stanley (c) | | |
2.484%, due 9/16/36 | 1,945,000 | 1,500,385 |
2.511%, due 10/20/32 | 510,000 | 410,394 |
NatWest Group plc (b) | | |
3.073% (1 Year Treasury Constant Maturity Rate + 2.55%), due 5/22/28 | 1,040,000 | 961,205 |
5.778% (1 Year Treasury Constant Maturity Rate + 1.50%), due 3/1/35 | 560,000 | 548,471 |
Santander Holdings USA, Inc. | | |
6.499%, due 3/9/29 (c) | 630,000 | 634,888 |
Societe Generale SA (a)(b) | | |
4.75% (5 Year Treasury Constant Maturity Rate + 3.931%), due 5/26/26 (d) | 395,000 | 350,865 |
5.375% (5 Year Treasury Constant Maturity Rate + 4.514%), due 11/18/30 (d) | 1,515,000 | 1,225,408 |
| Principal Amount | Value |
|
Banks (continued) |
Societe Generale SA (a)(b) (continued) | | |
7.132% (1 Year Treasury Constant Maturity Rate + 2.95%), due 1/19/55 | $ 445,000 | $ 424,879 |
Truist Financial Corp. | | |
5.711%, due 1/24/35 (c) | 705,000 | 684,193 |
UBS Group AG (a) | | |
3.091%, due 5/14/32 (c) | 1,070,000 | 886,006 |
4.375% (5 Year Treasury Constant Maturity Rate + 3.313%), due 2/10/31 (b)(d) | 1,520,000 | 1,213,948 |
4.751% (1 Year Treasury Constant Maturity Rate + 1.75%), due 5/12/28 (b) | 340,000 | 329,111 |
Wells Fargo & Co. | | |
3.35%, due 3/2/33 (c) | 700,000 | 590,912 |
Westpac Banking Corp. | | |
3.02% (5 Year Treasury Constant Maturity Rate + 1.53%), due 11/18/36 (b) | 2,013,000 | 1,618,080 |
| | 40,506,122 |
Biotechnology 0.1% |
Amgen, Inc. | | |
5.75%, due 3/2/63 | 450,000 | 429,828 |
Chemicals 0.8% |
Braskem Netherlands Finance BV | | |
4.50%, due 1/10/28 (a) | 1,135,000 | 1,013,407 |
Huntsman International LLC | | |
4.50%, due 5/1/29 | 1,759,000 | 1,641,252 |
| | 2,654,659 |
Commercial Services 0.3% |
Ashtead Capital, Inc. | | |
4.00%, due 5/1/28 (a) | 640,000 | 595,403 |
California Institute of Technology | | |
3.65%, due 9/1/2119 | 772,000 | 496,727 |
| | 1,092,130 |
Computers 0.3% |
Dell International LLC | | |
3.375%, due 12/15/41 | 1,145,000 | 816,416 |
Diversified Financial Services 3.5% |
AerCap Ireland Capital DAC | | |
2.45%, due 10/29/26 | 2,300,000 | 2,125,043 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Diversified Financial Services (continued) |
Aircastle Ltd. | | |
5.25% (5 Year Treasury Constant Maturity Rate + 4.41%), due 6/15/26 (a)(b)(d) | $ 545,000 | $ 514,932 |
Ally Financial, Inc. | | |
6.992%, due 6/13/29 (c) | 270,000 | 275,818 |
8.00%, due 11/1/31 | 1,205,000 | 1,304,619 |
Aviation Capital Group LLC | | |
1.95%, due 1/30/26 (a) | 1,330,000 | 1,238,161 |
Avolon Holdings Funding Ltd. (a) | | |
2.125%, due 2/21/26 | 1,385,000 | 1,285,547 |
3.25%, due 2/15/27 | 1,740,000 | 1,604,341 |
Cantor Fitzgerald LP | | |
7.20%, due 12/12/28 (a) | 635,000 | 644,373 |
Capital One Financial Corp. (c) | | |
6.051%, due 2/1/35 (e) | 330,000 | 324,581 |
6.312%, due 6/8/29 | 905,000 | 913,000 |
Jefferies Financial Group, Inc. | | |
6.20%, due 4/14/34 | 685,000 | 677,176 |
OneMain Finance Corp. | | |
3.50%, due 1/15/27 | 575,000 | 529,004 |
| | 11,436,595 |
Electric 3.4% |
Alabama Power Co. | | |
3.00%, due 3/15/52 | 1,015,000 | 643,686 |
Arizona Public Service Co. | | |
2.20%, due 12/15/31 | 1,500,000 | 1,187,398 |
3.35%, due 5/15/50 | 1,320,000 | 861,923 |
Calpine Corp. | | |
5.125%, due 3/15/28 (a) | 495,000 | 469,539 |
DTE Energy Co. | | |
5.85%, due 6/1/34 | 610,000 | 606,553 |
Duquesne Light Holdings, Inc. | | |
3.616%, due 8/1/27 (a) | 990,000 | 917,623 |
Evergy Metro, Inc. | | |
5.40%, due 4/1/34 | 720,000 | 702,889 |
Eversource Energy | | |
5.95%, due 7/15/34 | 805,000 | 799,165 |
Ohio Power Co. | | |
Series R | | |
2.90%, due 10/1/51 | 585,000 | 350,213 |
Pacific Gas and Electric Co. | | |
3.50%, due 8/1/50 | 2,235,000 | 1,433,443 |
Southern California Edison Co. | | |
4.00%, due 4/1/47 | 975,000 | 729,722 |
5.70%, due 3/1/53 | 280,000 | 266,939 |
| Principal Amount | Value |
|
Electric (continued) |
Southwestern Electric Power Co. | | |
3.25%, due 11/1/51 | $ 1,060,000 | $ 664,072 |
Virginia Electric and Power Co. | | |
5.45%, due 4/1/53 | 415,000 | 388,813 |
Vistra Operations Co. LLC (a) | | |
6.00%, due 4/15/34 | 840,000 | 816,502 |
6.875%, due 4/15/32 | 455,000 | 453,094 |
| | 11,291,574 |
Entertainment 0.2% |
Warnermedia Holdings, Inc. | | |
4.279%, due 3/15/32 | 810,000 | 697,723 |
Food 1.2% |
JBS USA Holding LUX SARL | | |
5.75%, due 4/1/33 | 1,395,000 | 1,334,139 |
MARB BondCo plc | | |
3.95%, due 1/29/31 (a) | 1,240,000 | 994,953 |
Smithfield Foods, Inc. (a) | | |
4.25%, due 2/1/27 | 965,000 | 917,208 |
5.20%, due 4/1/29 | 580,000 | 549,871 |
| | 3,796,171 |
Gas 1.0% |
Brooklyn Union Gas Co. (The) | | |
6.388%, due 9/15/33 (a) | 725,000 | 728,954 |
National Fuel Gas Co. | | |
2.95%, due 3/1/31 | 1,820,000 | 1,496,221 |
Piedmont Natural Gas Co., Inc. | | |
5.05%, due 5/15/52 | 620,000 | 532,331 |
Southern California Gas Co. | | |
5.60%, due 4/1/54 | 625,000 | 593,493 |
| | 3,350,999 |
Healthcare-Products 0.2% |
Solventum Corp. | | |
5.90%, due 4/30/54 (a) | 545,000 | 508,836 |
Insurance 0.6% |
Athene Holding Ltd. | | |
6.25%, due 4/1/54 | 490,000 | 476,272 |
Liberty Mutual Group, Inc. | | |
3.951%, due 10/15/50 (a) | 1,610,000 | 1,145,539 |
Nippon Life Insurance Co. | | |
3.40% (5 Year Treasury Constant Maturity Rate + 2.612%), due 1/23/50 (a)(b) | 290,000 | 250,805 |
| | 1,872,616 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay MacKay Total Return Bond Fund |
| Principal Amount | Value |
Corporate Bonds (continued) |
Iron & Steel 0.2% |
Algoma Steel, Inc. | | |
9.125%, due 4/15/29 (a) | $ 675,000 | $ 666,563 |
Lodging 0.5% |
Hilton Domestic Operating Co., Inc. | | |
5.875%, due 4/1/29 (a) | 835,000 | 823,941 |
Studio City Finance Ltd. | | |
5.00%, due 1/15/29 (a) | 760,000 | 646,351 |
| | 1,470,292 |
Media 0.1% |
DISH DBS Corp. | | |
5.75%, due 12/1/28 (a) | 635,000 | 428,804 |
Miscellaneous—Manufacturing 0.4% |
Textron Financial Corp. | | |
7.304% (3 Month SOFR + 1.997%), due 2/15/42 (a)(b) | 1,685,000 | 1,447,508 |
Oil & Gas 0.3% |
Gazprom PJSC Via Gaz Capital SA | | |
4.95%, due 2/6/28 (a)(f) | 1,521,000 | 988,650 |
Packaging & Containers 0.2% |
Owens-Brockway Glass Container, Inc. | | |
6.625%, due 5/13/27 (a) | 571,000 | 570,528 |
Pharmaceuticals 0.5% |
Teva Pharmaceutical Finance Netherlands III BV | | |
3.15%, due 10/1/26 | 1,653,000 | 1,531,371 |
Pipelines 3.0% |
Cheniere Corpus Christi Holdings LLC | | |
2.742%, due 12/31/39 | 1,135,000 | 899,454 |
Columbia Pipelines Operating Co. LLC | | |
6.544%, due 11/15/53 (a)(e) | 625,000 | 644,636 |
DT Midstream, Inc. | | |
4.30%, due 4/15/32 (a) | 1,125,000 | 995,414 |
Enbridge, Inc. | | |
5.30%, due 4/5/29 | 795,000 | 785,831 |
5.70%, due 3/8/33 | 275,000 | 271,845 |
Energy Transfer LP | | |
5.35%, due 5/15/45 | 940,000 | 824,918 |
| Principal Amount | Value |
|
Pipelines (continued) |
EnLink Midstream LLC | | |
5.625%, due 1/15/28 (a) | $ 475,000 | $ 466,709 |
Flex Intermediate Holdco LLC | | |
3.363%, due 6/30/31 (a) | 2,120,000 | 1,683,156 |
MPLX LP | | |
5.65%, due 3/1/53 | 460,000 | 424,335 |
Targa Resources Corp. | | |
4.20%, due 2/1/33 | 425,000 | 375,142 |
Venture Global LNG, Inc. | | |
9.875%, due 2/1/32 (a) | 535,000 | 570,902 |
Western Midstream Operating LP | | |
5.25%, due 2/1/50 (g) | 1,240,000 | 1,051,711 |
Williams Cos., Inc. (The) | | |
3.50%, due 10/15/51 | 1,095,000 | 731,721 |
| | 9,725,774 |
Real Estate Investment Trusts 0.3% |
Alexandria Real Estate Equities, Inc. | | |
3.375%, due 8/15/31 | 415,000 | 359,018 |
Invitation Homes Operating Partnership LP | | |
2.00%, due 8/15/31 | 990,000 | 765,138 |
| | 1,124,156 |
Retail 0.2% |
AutoNation, Inc. | | |
4.75%, due 6/1/30 | 491,000 | 460,327 |
Nordstrom, Inc. | | |
4.25%, due 8/1/31 | 290,000 | 250,130 |
| | 710,457 |
Transportation 0.1% |
Genesee & Wyoming, Inc. | | |
6.25%, due 4/15/32 (a) | 375,000 | 372,709 |
Total Corporate Bonds (Cost $129,499,047) | | 114,952,996 |
Foreign Government Bonds 2.3% |
Chile 0.4% |
Empresa Nacional del Petroleo | | |
3.45%, due 9/16/31 (a) | 1,615,000 | 1,354,129 |
Colombia 0.3% |
Colombia Government Bond | | |
3.25%, due 4/22/32 | 1,485,000 | 1,115,605 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Foreign Government Bonds (continued) |
Mexico 1.6% |
Comision Federal de Electricidad | | |
3.875%, due 7/26/33 (a) | $ 2,445,000 | $ 1,923,921 |
Petroleos Mexicanos | | |
6.50%, due 3/13/27 | 2,730,000 | 2,556,797 |
6.75%, due 9/21/47 | 1,080,000 | 689,516 |
| | 5,170,234 |
Total Foreign Government Bonds (Cost $9,379,742) | | 7,639,968 |
Loan Assignments 0.2% |
Diversified/Conglomerate Service 0.2% |
TruGreen LP | |
First Lien Second Refinancing Term Loan | |
9.416% (1 Month SOFR + 4.00%), due 11/2/27 (b) | 593,237 | 569,804 |
Total Loan Assignments (Cost $590,415) | | 569,804 |
Mortgage-Backed Securities 39.5% |
Agency (Collateralized Mortgage Obligations) 16.2% |
FHLMC | |
REMIC, Series 5326, Class QO | | |
(zero coupon), due 9/25/50 | 1,375,730 | 923,851 |
REMIC, Series 5021, Class SA | | |
(zero coupon) (SOFR 30A + 3.55%), due 10/25/50 (b)(h) | 2,228,814 | 41,019 |
REMIC, Series 5092, Class SH | | |
(zero coupon) (SOFR 30A + 2.45%), due 2/25/51 (b)(h) | 1,158,689 | 3,569 |
REMIC, Series 5200, Class SA | | |
(zero coupon) (SOFR 30A + 3.50%), due 2/25/52 (b)(h) | 322,782 | 4,980 |
REMIC, Series 5326 | | |
(zero coupon), due 8/25/53 | 412,966 | 307,465 |
REMIC, Series 5351, Class DO | | |
(zero coupon), due 9/25/53 | 807,495 | 624,250 |
REMIC, Series 5357, Class OE | | |
(zero coupon), due 11/25/53 | 706,117 | 544,418 |
REMIC, Series 5363 | | |
(zero coupon), due 12/25/53 | 772,013 | 622,797 |
REMIC, Series 5315, Class OQ | | |
(zero coupon), due 1/25/55 | 659,371 | 524,455 |
REMIC, Series 5328, Class JY | | |
0.25%, due 9/25/50 | 861,060 | 556,482 |
| Principal Amount | Value |
|
Agency (Collateralized Mortgage Obligations) (continued) |
FHLMC (continued) | |
REMIC, Series 4993, Class KS | | |
0.605% (SOFR 30A + 5.936%), due 7/25/50 (b)(h) | $ 3,017,073 | $ 332,770 |
REMIC, Series 4994, Class TS | | |
0.655% (SOFR 30A + 5.986%), due 7/25/50 (b)(h) | 1,497,564 | 136,142 |
REMIC, Series 5092, Class XA | | |
1.00%, due 1/15/41 | 623,644 | 507,376 |
REMIC, Series 5070, Class PI | | |
3.00%, due 8/25/50 (h) | 1,432,397 | 258,873 |
REMIC, Series 5011, Class MI | | |
3.00%, due 9/25/50 (h) | 1,272,088 | 208,100 |
REMIC, Series 5094, Class IP | | |
3.00%, due 4/25/51 (h) | 1,125,024 | 177,595 |
REMIC, Series 5160 | | |
3.00%, due 10/25/51 (h) | 1,213,177 | 139,125 |
REMIC, Series 4710, Class WZ | | |
3.50%, due 8/15/47 | 378,712 | 329,266 |
REMIC, Series 4725, Class WZ | | |
3.50%, due 11/15/47 | 690,273 | 592,718 |
REMIC, Series 5304, Class UB | | |
4.00%, due 2/25/52 | 552,574 | 498,181 |
REMIC, Series 5268, Class B | | |
4.50%, due 10/25/52 | 779,703 | 722,774 |
FHLMC, Strips | |
Series 272 | | |
(zero coupon), due 8/15/42 | 903,102 | 654,862 |
Series 311 | | |
(zero coupon), due 8/15/43 | 509,603 | 367,533 |
Series 402 | | |
(zero coupon), due 9/25/53 | 933,802 | 729,434 |
Series 311, Class S1 | | |
0.506% (SOFR 30A + 5.836%), due 8/15/43 (b)(h) | 2,539,340 | 202,164 |
Series 389, Class C35 | | |
2.00%, due 6/15/52 (h) | 2,261,920 | 281,185 |
FNMA | |
REMIC, Series 2022-3, Class YS | | |
(zero coupon) (SOFR 30A + 2.55%), due 2/25/52 (b)(h) | 7,761,795 | 31,210 |
REMIC, Series 2022-5, Class SN | | |
(zero coupon) (SOFR 30A + 1.80%), due 2/25/52 (b)(h) | 993,232 | 1,112 |
REMIC, Series 2023-70, Class AO | | |
(zero coupon), due 3/25/53 | 690,803 | 526,714 |
REMIC, Series 2023-45 | | |
(zero coupon), due 10/25/53 | 806,978 | 594,007 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay MacKay Total Return Bond Fund |
| Principal Amount | Value |
Mortgage-Backed Securities (continued) |
Agency (Collateralized Mortgage Obligations) (continued) |
FNMA (continued) | |
REMIC, Series 2023-24, Class OQ | | |
(zero coupon), due 7/25/54 | $ 856,835 | $ 687,285 |
REMIC, Series 2022-10, Class SA | | |
0.42% (SOFR 30A + 5.75%), due 2/25/52 (b)(h) | 2,128,739 | 221,897 |
REMIC, Series 2021-40, Class SI | | |
0.506% (SOFR 30A + 5.836%), due 9/25/47 (b)(h) | 1,675,452 | 138,636 |
REMIC, Series 2016-57, Class SN | | |
0.605% (SOFR 30A + 5.936%), due 6/25/46 (b)(h) | 1,379,721 | 119,904 |
REMIC, Series 2020-70, Class SD | | |
0.806% (SOFR 30A + 6.136%), due 10/25/50 (b)(h) | 1,487,006 | 145,435 |
REMIC, Series 2020-70, Class AD | | |
1.50%, due 10/25/50 | 1,369,194 | 1,033,787 |
REMIC, Series 2021-10, Class LI | | |
2.50%, due 3/25/51 (h) | 664,899 | 91,875 |
REMIC, Series 2021-12, Class JI | | |
2.50%, due 3/25/51 (h) | 974,068 | 150,006 |
REMIC, Series 2021-34, Class MI | | |
2.50%, due 3/25/51 (h) | 5,975,251 | 812,665 |
REMIC, Series 2021-54, Class HI | | |
2.50%, due 6/25/51 (h) | 443,479 | 55,459 |
REMIC, Series 2021-53, Class GI | | |
3.00%, due 7/25/48 (h) | 7,395,555 | 1,087,113 |
REMIC, Series 2021-85, Class BI | | |
3.00%, due 12/25/51 (h) | 2,669,431 | 449,488 |
REMIC, Series 2021-12, Class GC | | |
3.50%, due 7/25/50 | 1,437,221 | 1,250,558 |
REMIC, Series 2021-8, Class ID | | |
3.50%, due 3/25/51 (h) | 1,723,521 | 373,857 |
FNMA, Strips (h) | |
REMIC, Series 426, Class C32 | | |
1.50%, due 2/25/52 | 3,436,921 | 327,257 |
REMIC, Series 429, Class C5 | | |
3.00%, due 10/25/52 | 3,635,550 | 625,644 |
GNMA | |
Series 2019-136, Class YS | | |
(zero coupon) (1 Month SOFR + 2.716%), due 11/20/49 (b)(h) | 749,734 | 5,219 |
Series 2020-1, Class YS | | |
(zero coupon) (1 Month SOFR + 2.716%), due 1/20/50 (b)(h) | 2,356,710 | 16,551 |
| Principal Amount | Value |
|
Agency (Collateralized Mortgage Obligations) (continued) |
GNMA (continued) | |
Series 2020-129, Class SB | | |
(zero coupon) (1 Month SOFR + 3.086%), due 9/20/50 (b)(h) | $ 3,253,016 | $ 27,143 |
Series 2021-16, Class AS | | |
(zero coupon) (1 Month SOFR + 2.636%), due 1/20/51 (b)(h) | 3,718,384 | 18,554 |
Series 2023-101, Class KO | | |
(zero coupon), due 1/20/51 | 1,959,885 | 1,273,842 |
Series 2021-29, Class AS | | |
(zero coupon) (SOFR 30A + 2.70%), due 2/20/51 (b)(h) | 3,619,669 | 27,513 |
Series 2021-46, Class BS | | |
(zero coupon) (1 Month SOFR + 2.686%), due 3/20/51 (b)(h) | 3,447,216 | 15,922 |
Series 2021-64, Class GS | | |
(zero coupon) (SOFR 30A + 1.65%), due 4/20/51 (b)(h) | 568,392 | 540 |
Series 2021-64, Class SG | | |
(zero coupon) (SOFR 30A + 1.60%), due 4/20/51 (b)(h) | 1,276,201 | 1,034 |
Series 2021-77, Class SN | | |
(zero coupon) (1 Month SOFR + 2.486%), due 5/20/51 (b)(h) | 5,575,836 | 19,818 |
Series 2021-97, Class SA | | |
(zero coupon) (SOFR 30A + 2.60%), due 6/20/51 (b)(h) | 4,465,745 | 25,654 |
Series 2021-158, Class SB | | |
(zero coupon) (SOFR 30A + 3.70%), due 9/20/51 (b)(h) | 2,721,088 | 60,013 |
Series 2021-205, Class DS | | |
(zero coupon) (SOFR 30A + 3.20%), due 11/20/51 (b)(h) | 5,442,571 | 68,350 |
Series 2021-213, Class ES | | |
(zero coupon) (SOFR 30A + 1.70%), due 12/20/51 (b)(h) | 12,454,057 | 18,644 |
Series 2021-226, Class SA | | |
(zero coupon) (SOFR 30A + 1.70%), due 12/20/51 (b)(h) | 2,546,291 | 3,146 |
Series 2022-19, Class SG | | |
(zero coupon) (SOFR 30A + 2.45%), due 1/20/52 (b)(h) | 4,185,208 | 16,761 |
Series 2022-24, Class SC | | |
(zero coupon) (SOFR 30A + 2.37%), due 2/20/52 (b)(h) | 21,645,202 | 99,761 |
Series 2022-34, Class HS | | |
(zero coupon) (SOFR 30A + 4.10%), due 2/20/52 (b)(h) | 4,297,120 | 131,554 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Mortgage-Backed Securities (continued) |
Agency (Collateralized Mortgage Obligations) (continued) |
GNMA (continued) | |
Series 2022-78, Class S | | |
(zero coupon) (SOFR 30A + 3.70%), due 4/20/52 (b)(h) | $ 1,870,189 | $ 19,869 |
Series 2022-87, Class SA | | |
(zero coupon) (SOFR 30A + 3.30%), due 5/20/52 (b)(h) | 3,939,323 | 34,613 |
Series 2022-101, Class SB | | |
(zero coupon) (SOFR 30A + 3.30%), due 6/20/52 (b)(h) | 1,971,819 | 16,634 |
Series 2022-107, Class SA | | |
(zero coupon) (SOFR 30A + 3.47%), due 6/20/52 (b)(h) | 9,943,961 | 103,568 |
Series 2023-66, Class OQ | | |
(zero coupon), due 7/20/52 | 1,179,780 | 891,446 |
Series 2023-53 | | |
(zero coupon), due 4/20/53 | 529,693 | 421,447 |
Series 2023-80, Class SA | | |
(zero coupon) (SOFR 30A + 5.25%), due 6/20/53 (b)(h) | 4,808,924 | 137,091 |
Series 2023-60, Class ES | | |
0.539% (SOFR 30A + 11.20%), due 4/20/53 (b) | 1,175,847 | 1,006,796 |
Series 2020-146, Class SA | | |
0.87% (1 Month SOFR + 6.186%), due 10/20/50 (b)(h) | 1,671,391 | 192,861 |
Series 2020-167, Class SN | | |
0.87% (1 Month SOFR + 6.186%), due 11/20/50 (b)(h) | 839,909 | 90,244 |
Series 2021-179, Class SA | | |
0.87% (1 Month SOFR + 6.186%), due 11/20/50 (b)(h) | 2,465,029 | 263,176 |
Series 2020-189, Class SU | | |
0.87% (1 Month SOFR + 6.186%), due 12/20/50 (b)(h) | 558,714 | 61,861 |
Series 2021-46, Class QS | | |
0.87% (1 Month SOFR + 6.186%), due 3/20/51 (b)(h) | 993,774 | 107,336 |
Series 2021-46, Class TS | | |
0.87% (1 Month SOFR + 6.186%), due 3/20/51 (b)(h) | 1,200,688 | 130,602 |
Series 2021-57, Class SA | | |
0.87% (1 Month SOFR + 6.186%), due 3/20/51 (b)(h) | 3,525,417 | 359,481 |
Series 2021-57, Class SD | | |
0.87% (1 Month SOFR + 6.186%), due 3/20/51 (b)(h) | 5,781,371 | 597,486 |
| Principal Amount | Value |
|
Agency (Collateralized Mortgage Obligations) (continued) |
GNMA (continued) | |
Series 2021-96, Class NS | | |
0.87% (1 Month SOFR + 6.186%), due 6/20/51 (b)(h) | $ 3,203,072 | $ 341,589 |
Series 2021-96, Class SN | | |
0.87% (1 Month SOFR + 6.186%), due 6/20/51 (b)(h) | 2,201,967 | 219,545 |
Series 2021-97, Class SM | | |
0.87% (1 Month SOFR + 6.186%), due 6/20/51 (b)(h) | 2,362,962 | 260,903 |
Series 2021-122, Class HS | | |
0.87% (1 Month SOFR + 6.186%), due 7/20/51 (b)(h) | 2,004,834 | 227,370 |
Series 2022-137, Class S | | |
0.87% (1 Month SOFR + 6.186%), due 7/20/51 (b)(h) | 2,236,336 | 258,025 |
Series 2021-96, Class JS | | |
0.92% (1 Month SOFR + 6.236%), due 6/20/51 (b)(h) | 1,741,182 | 161,105 |
Series 2020-146, Class YK | | |
1.00%, due 10/20/50 | 1,086,254 | 783,298 |
Series 2020-166, Class CA | | |
1.00%, due 11/20/50 | 1,260,922 | 888,956 |
Series 2023-86, Class SE | | |
1.32% (SOFR 30A + 6.65%), due 9/20/50 (b)(h) | 1,518,895 | 175,813 |
Series 2023-66, Class MP | | |
1.639% (SOFR 30A + 12.30%), due 5/20/53 (b) | 1,249,673 | 1,125,241 |
Series 2020-166, Class IC | | |
2.00%, due 11/20/50 (h) | 1,205,344 | 117,267 |
Series 2020-185, Class BI | | |
2.00%, due 12/20/50 (h) | 1,308,452 | 139,180 |
Series 2022-10, Class IC | | |
2.00%, due 11/20/51 (h) | 1,903,791 | 217,622 |
Series 2021-97, Class IN | | |
2.50%, due 8/20/49 (h) | 2,909,415 | 283,678 |
Series 2022-1, Class IA | | |
2.50%, due 6/20/50 (h) | 460,907 | 60,125 |
Series 2020-122, Class IW | | |
2.50%, due 7/20/50 (h) | 1,545,710 | 194,983 |
Series 2020-151, Class TI | | |
2.50%, due 10/20/50 (h) | 1,469,718 | 204,314 |
Series 2021-1, Class PI | | |
2.50%, due 12/20/50 (h) | 786,133 | 97,357 |
Series 2021-83, Class FM | | |
2.50% (SOFR 30A + 0.51%), due 5/20/51 (b) | 2,309,939 | 1,806,144 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay MacKay Total Return Bond Fund |
| Principal Amount | Value |
Mortgage-Backed Securities (continued) |
Agency (Collateralized Mortgage Obligations) (continued) |
GNMA (continued) | |
Series 2021-140, Class GF | | |
2.50% (1 Month SOFR + 0.764%), due 8/20/51 (b) | $ 881,410 | $ 692,118 |
Series 2021-177, Class CI | | |
2.50%, due 10/20/51 (h) | 1,687,383 | 213,097 |
Series 2021-188 | | |
2.50%, due 10/20/51 (h) | 2,854,659 | 454,822 |
Series 2022-83 | | |
2.50%, due 11/20/51 (h) | 2,045,514 | 280,210 |
Series 2022-1, Class CF | | |
2.50% (SOFR 30A + 0.80%), due 1/20/52 (b) | 1,739,153 | 1,358,993 |
Series 2021-1, Class IT | | |
3.00%, due 1/20/51 (h) | 1,786,231 | 291,972 |
Series 2021-44, Class IQ | | |
3.00%, due 3/20/51 (h) | 2,642,072 | 417,427 |
Series 2021-67, Class PI | | |
3.00%, due 4/20/51 (h) | 1,192,088 | 188,931 |
Series 2021-74, Class HI | | |
3.00%, due 4/20/51 (h) | 320,733 | 50,089 |
Series 2021-97, Class FA | | |
3.00% (SOFR 30A + 0.40%), due 6/20/51 (b) | 3,151,107 | 2,601,281 |
Series 2021-98, Class IN | | |
3.00%, due 6/20/51 (h) | 1,072,127 | 183,497 |
Series 2022-189, Class AT | | |
3.00%, due 7/20/51 | 776,833 | 660,441 |
Series 2021-139, Class IA | | |
3.00%, due 8/20/51 (h) | 7,406,779 | 1,128,306 |
Series 2022-207 | | |
3.00%, due 8/20/51 (h) | 1,659,152 | 267,306 |
Series 2023-19, Class CI | | |
3.00%, due 11/20/51 (h) | 2,148,541 | 337,058 |
Series 2022-207, Class NA | | |
3.00%, due 1/20/52 | 918,366 | 768,203 |
Series 2022-206, Class CN | | |
3.00%, due 2/20/52 | 426,900 | 360,922 |
Series 2019-92, Class GF | | |
3.50% (1 Month SOFR + 0.804%), due 7/20/49 (b) | 403,571 | 350,972 |
Series 2019-97, Class FG | | |
3.50% (1 Month SOFR + 0.804%), due 8/20/49 (b) | 1,185,220 | 1,016,987 |
Series 2019-128, Class KF | | |
3.50% (1 Month SOFR + 0.764%), due 10/20/49 (b) | 413,613 | 357,095 |
| Principal Amount | Value |
|
Agency (Collateralized Mortgage Obligations) (continued) |
GNMA (continued) | |
Series 2019-128, Class YF | | |
3.50% (1 Month SOFR + 0.764%), due 10/20/49 (b) | $ 434,910 | $ 376,373 |
Series 2020-1, Class YF | | |
3.50% (1 Month SOFR + 0.784%), due 1/20/50 (b) | 855,588 | 722,932 |
Series 2020-5, Class FA | | |
3.50% (1 Month SOFR + 0.814%), due 1/20/50 (b) | 1,073,650 | 921,578 |
Series 2021-96, Class FG | | |
3.50% (SOFR 30A + 0.30%), due 6/20/51 (b) | 302,667 | 260,555 |
Series 2021-125, Class AF | | |
3.50% (SOFR 30A + 0.25%), due 7/20/51 (b) | 1,246,951 | 1,085,249 |
Series 2021-146, Class IN | | |
3.50%, due 8/20/51 (h) | 1,909,404 | 339,944 |
Series 2019-106, Class FA | | |
4.00% (1 Month SOFR + 0.714%), due 8/20/49 (b) | 407,833 | 364,767 |
Series 2022-69, Class FA | | |
4.50% (SOFR 30A + 0.75%), due 4/20/52 (b) | 376,618 | 341,888 |
Series 2023-81, Class LA | | |
5.00%, due 6/20/52 | 414,019 | 401,229 |
Series 2023-38, Class WT | | |
6.668%, due 12/20/51 (i) | 536,096 | 547,036 |
Series 2023-59, Class YC | | |
6.964%, due 9/20/51 (i) | 1,344,616 | 1,406,822 |
Series 2023-55, Class CG | | |
7.51%, due 7/20/51 (i) | 789,643 | 835,280 |
Series 2023-55, Class LB | | |
7.888%, due 11/20/51 (i) | 713,334 | 789,081 |
| | 53,214,799 |
Commercial Mortgage Loans (Collateralized Mortgage Obligations) 10.0% |
BAMLL Commercial Mortgage Securities Trust (a)(b) | |
Series 2022-DKLX, Class D | | |
8.321% (1 Month SOFR + 3.00%), due 1/15/39 | 400,000 | 392,125 |
Series 2022-DKLX, Class F | | |
10.278% (1 Month SOFR + 4.957%), due 1/15/39 | 800,000 | 775,557 |
BANK (j) | |
Series 2019-BN20, Class C | | |
3.777%, due 9/15/62 | 285,000 | 211,195 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Mortgage-Backed Securities (continued) |
Commercial Mortgage Loans (Collateralized Mortgage Obligations) (continued) |
BANK (j) (continued) | |
Series 2019-BN19, Class C | | |
4.163%, due 8/15/61 | $ 1,895,000 | $ 1,422,175 |
Bayview Commercial Asset Trust | |
Series 2006-4A, Class A1 | | |
5.776% (1 Month SOFR + 0.459%), due 12/25/36 (a)(b) | 19,336 | 18,386 |
BBCMS Mortgage Trust (a)(b) | |
Series 2018-TALL, Class A | | |
6.24% (1 Month SOFR + 0.919%), due 3/15/37 | 600,000 | 570,000 |
Series 2018-TALL, Class B | | |
6.489% (1 Month SOFR + 1.168%), due 3/15/37 | 355,000 | 327,487 |
Series 2018-TALL, Class C | | |
6.639% (1 Month SOFR + 1.318%), due 3/15/37 | 1,180,000 | 1,062,000 |
Series 2018-TALL, Class D | | |
6.967% (1 Month SOFR + 1.646%), due 3/15/37 | 1,025,000 | 881,500 |
Benchmark Mortgage Trust | |
Series 2018-B3, Class C | | |
4.672%, due 4/10/51 (j) | 605,000 | 480,907 |
Series 2019-B9, Class C | | |
4.971%, due 3/15/52 (i) | 365,000 | 292,500 |
BX Commercial Mortgage Trust | |
Series 2020-VIVA, Class D | | |
3.667%, due 3/11/44 (a)(j) | 805,000 | 671,231 |
BX Trust (a) | |
Series 2019-OC11, Class C | | |
3.856%, due 12/9/41 | 764,000 | 663,107 |
Series 2019-OC11, Class E | | |
4.075%, due 12/9/41 (j) | 809,000 | 677,731 |
Series 2021-ARIA, Class E | | |
7.68% (1 Month SOFR + 2.359%), due 10/15/36 (b) | 1,385,000 | 1,353,838 |
BXHPP Trust | |
Series 2021-FILM, Class C | | |
6.535% (1 Month SOFR + 1.214%), due 8/15/36 (a)(b) | 720,000 | 669,375 |
CD Mortgage Trust | |
Series 2017-CD4, Class D | | |
3.30%, due 5/10/50 (a) | 1,080,000 | 839,759 |
Commercial Mortgage Trust | |
Series 2014-CR15, Class D | | |
4.085%, due 2/10/47 (a)(j) | 1,015,000 | 911,745 |
| Principal Amount | Value |
|
Commercial Mortgage Loans (Collateralized Mortgage Obligations) (continued) |
CSAIL Commercial Mortgage Trust | |
Series 2016-C6, Class D | | |
5.082%, due 1/15/49 (a)(j) | $ 740,000 | $ 542,930 |
CSMC WEST Trust | |
Series 2020-WEST, Class A | | |
3.04%, due 2/15/35 (a) | 1,685,000 | 1,243,493 |
DBJPM Mortgage Trust | |
Series 2016-C1, Class C | | |
3.471%, due 5/10/49 (j) | 755,000 | 653,683 |
DROP Mortgage Trust | |
Series 2021-FILE, Class A | | |
6.585% (1 Month SOFR + 1.264%), due 10/15/43 (a)(b) | 985,000 | 940,675 |
FS Commercial Mortgage Trust | |
Series 2023-4SZN, Class D | | |
9.383%, due 11/10/39 (a)(i) | 730,000 | 749,045 |
GNMA | |
Series 2020-177 | | |
0.819%, due 6/16/62 (h)(j) | 4,080,728 | 245,393 |
Series 2023-194, Class CI | | |
0.877%, due 10/16/65 (h)(j) | 3,606,317 | 248,447 |
Series 2021-164 | | |
0.949%, due 10/16/63 (h)(j) | 3,260,530 | 233,497 |
Series 2023-159, Class CI | | |
0.956%, due 7/16/65 (h)(i) | 4,551,910 | 336,758 |
Series 2020-168, Class IA | | |
0.978%, due 12/16/62 (h)(j) | 2,449,260 | 173,181 |
Series 2021-47 | | |
0.992%, due 3/16/61 (h)(j) | 5,728,615 | 400,626 |
Series 2022-185, Class DI | | |
1.023%, due 10/16/65 (h)(j) | 2,035,784 | 152,140 |
Series 2023-172 | | |
1.386%, due 2/16/66 (h)(j) | 3,155,655 | 314,612 |
Series 2024-29, Class B | | |
2.50%, due 8/16/64 (i) | 990,000 | 730,106 |
J.P. Morgan Chase Commercial Mortgage Securities Trust (a) | |
Series 2021-2NU, Class A | | |
1.974%, due 1/5/40 | 1,500,000 | 1,240,135 |
Series 2013-C13, Class E | | |
3.986%, due 1/15/46 (i) | 500,000 | 440,000 |
Series 2012-C6, Class E | | |
5.129%, due 5/15/45 (j) | 695,000 | 633,277 |
JPMCC Commercial Mortgage Securities Trust | |
Series 2019-COR5, Class D | | |
3.00%, due 6/13/52 (a) | 240,000 | 166,810 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay MacKay Total Return Bond Fund |
| Principal Amount | Value |
Mortgage-Backed Securities (continued) |
Commercial Mortgage Loans (Collateralized Mortgage Obligations) (continued) |
JPMDB Commercial Mortgage Securities Trust | |
Series 2017-C7, Class C | | |
4.289%, due 10/15/50 (j) | $ 655,000 | $ 557,132 |
Life Mortgage Trust | |
Series 2022-BMR2, Class D | | |
7.863% (1 Month SOFR + 2.542%), due 5/15/39 (a)(b) | 650,000 | 619,531 |
Multifamily Connecticut Avenue Securities Trust (a)(b) | |
Series 2019-01, Class M10 | | |
8.695% (SOFR 30A + 3.364%), due 10/25/49 | 1,600,933 | 1,574,987 |
Series 2020-01, Class M10 | | |
9.195% (SOFR 30A + 3.864%), due 3/25/50 | 1,651,223 | 1,626,464 |
Series 2023-01, Class M10 | | |
11.83% (SOFR 30A + 6.50%), due 11/25/53 | 1,655,000 | 1,728,172 |
Series 2020-01, Class CE | | |
12.944% (SOFR 30A + 7.614%), due 3/25/50 | 835,000 | 823,533 |
One Bryant Park Trust | |
Series 2019-OBP, Class A | | |
2.516%, due 9/15/54 (a) | 355,000 | 294,581 |
ORL Trust | |
Series 2023-GLKS, Class D | | |
9.622% (1 Month SOFR + 4.301%), due 10/19/36 (a)(b) | 865,000 | 866,892 |
SLG Office Trust (a) | |
Series 2021-OVA, Class A | | |
2.585%, due 7/15/41 | 1,065,000 | 850,615 |
Series 2021-OVA, Class F | | |
2.851%, due 7/15/41 | 660,000 | 454,630 |
UBS Commercial Mortgage Trust | |
Series 2018-C9, Class C | | |
5.112%, due 3/15/51 (j) | 575,000 | 423,605 |
Wells Fargo Commercial Mortgage Trust | |
Series 2019-C50, Class D | | |
3.00%, due 5/15/52 (a) | 1,075,000 | 769,751 |
Series 2019-C51, Class C | | |
4.289%, due 6/15/52 (i) | 380,000 | 306,870 |
Series 2016-NXS5, Class D | | |
5.142%, due 1/15/59 (j) | 570,000 | 435,679 |
| | 32,997,868 |
| Principal Amount | Value |
|
Whole Loan (Collateralized Mortgage Obligations) 13.3% |
American Home Mortgage Investment Trust | |
Series 2005-4, Class 3A1 | | |
6.031% (1 Month SOFR + 0.714%), due 11/25/45 (b) | $ 622,778 | $ 424,887 |
CIM Trust | |
Series 2021-J2, Class AS | | |
0.21%, due 4/25/51 (a)(h)(i) | 30,726,334 | 337,716 |
Connecticut Avenue Securities Trust (a)(b) | |
Series 2024-R01, Class 1B1 | | |
8.03% (SOFR 30A + 2.70%), due 1/25/44 | 1,925,000 | 1,939,835 |
Series 2020-SBT1, Class 1M2 | | |
9.095% (SOFR 30A + 3.764%), due 2/25/40 | 490,000 | 521,580 |
Series 2021-R03, Class 1B2 | | |
10.83% (SOFR 30A + 5.50%), due 12/25/41 | 1,515,000 | 1,581,958 |
Series 2021-R01, Class 1B2 | | |
11.33% (SOFR 30A + 6.00%), due 10/25/41 | 1,765,000 | 1,851,704 |
Series 2022-R01, Class 1B2 | | |
11.33% (SOFR 30A + 6.00%), due 12/25/41 | 2,075,000 | 2,180,930 |
Series 2022-R02, Class 2B2 | | |
12.98% (SOFR 30A + 7.65%), due 1/25/42 | 650,000 | 704,639 |
Series 2019-HRP1, Class B1 | | |
14.695% (SOFR 30A + 9.364%), due 11/25/39 | 2,134,000 | 2,365,046 |
Series 2022-R04, Class 1B2 | | |
14.83% (SOFR 30A + 9.50%), due 3/25/42 | 510,000 | 578,445 |
Series 2022-R03, Class 1B2 | | |
15.18% (SOFR 30A + 9.85%), due 3/25/42 | 615,000 | 703,721 |
CSMC Trust | |
Series 2021-NQM5, Class A1 | | |
0.938%, due 5/25/66 (a)(i) | 929,618 | 730,445 |
FHLMC STACR REMIC Trust (a)(b) | |
Series 2024-HQA1, Class M2 | | |
7.33% (SOFR 30A + 2.00%), due 3/25/44 | 505,000 | 504,869 |
Series 2020-DNA6, Class B1 | | |
8.33% (SOFR 30A + 3.00%), due 12/25/50 | 440,000 | 473,770 |
Series 2021-DNA5, Class B1 | | |
8.38% (SOFR 30A + 3.05%), due 1/25/34 | 1,220,000 | 1,289,772 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Mortgage-Backed Securities (continued) |
Whole Loan (Collateralized Mortgage Obligations) (continued) |
FHLMC STACR REMIC Trust (a)(b) (continued) | |
Series 2021-HQA2, Class B1 | | |
8.48% (SOFR 30A + 3.15%), due 12/25/33 | $ 1,200,000 | $ 1,306,128 |
Series 2021-HQA4, Class B1 | | |
9.08% (SOFR 30A + 3.75%), due 12/25/41 | 600,000 | 618,809 |
Series 2020-HQA5, Class B1 | | |
9.33% (SOFR 30A + 4.00%), due 11/25/50 | 925,000 | 1,043,171 |
Series 2021-DNA1, Class B2 | | |
10.08% (SOFR 30A + 4.75%), due 1/25/51 | 1,755,000 | 1,859,951 |
Series 2020-DNA2, Class B2 | | |
10.244% (SOFR 30A + 4.914%), due 2/25/50 | 575,000 | 614,352 |
Series 2021-HQA1, Class B2 | | |
10.33% (SOFR 30A + 5.00%), due 8/25/33 | 1,515,000 | 1,620,918 |
Series 2020-HQA1, Class B2 | | |
10.545% (SOFR 30A + 5.214%), due 1/25/50 | 1,592,000 | 1,693,312 |
Series 2022-HQA1, Class M2 | | |
10.58% (SOFR 30A + 5.25%), due 3/25/42 | 655,000 | 708,631 |
Series 2021-HQA2, Class B2 | | |
10.78% (SOFR 30A + 5.45%), due 12/25/33 | 1,740,000 | 1,905,890 |
Series 2021-DNA5, Class B2 | | |
10.83% (SOFR 30A + 5.50%), due 1/25/34 | 1,745,000 | 1,921,636 |
Series 2021-DNA2, Class B2 | | |
11.33% (SOFR 30A + 6.00%), due 8/25/33 | 1,430,000 | 1,644,060 |
Series 2021-DNA3, Class B2 | | |
11.58% (SOFR 30A + 6.25%), due 10/25/33 | 1,075,000 | 1,253,800 |
Series 2021-HQA3, Class B2 | | |
11.58% (SOFR 30A + 6.25%), due 9/25/41 | 955,000 | 998,886 |
Series 2021-HQA4, Class B2 | | |
12.33% (SOFR 30A + 7.00%), due 12/25/41 | 1,380,000 | 1,458,432 |
Series 2022-DNA1, Class B2 | | |
12.43% (SOFR 30A + 7.10%), due 1/25/42 | 1,405,000 | 1,496,173 |
| Principal Amount | Value |
|
Whole Loan (Collateralized Mortgage Obligations) (continued) |
FHLMC STACR REMIC Trust (a)(b) (continued) | |
Series 2020-HQA5, Class B2 | | |
12.73% (SOFR 30A + 7.40%), due 11/25/50 | $ 290,000 | $ 346,638 |
FHLMC STACR Trust (a)(b) | |
Series 2019-HQA3, Class B2 | | |
12.944% (SOFR 30A + 7.614%), due 9/25/49 | 755,000 | 853,081 |
Series 2018-HQA2, Class B2 | | |
16.445% (SOFR 30A + 11.114%), due 10/25/48 | 1,395,000 | 1,771,729 |
FNMA Connecticut Avenue Securities | |
Series 2021-R02, Class 2B2 | | |
11.53% (SOFR 30A + 6.20%), due 11/25/41 (a)(b) | 1,450,000 | 1,524,313 |
Onslow Bay Mortgage Loan Trust | |
Series 2021-NQM4, Class A1 | | |
1.957%, due 10/25/61 (a)(i) | 669,201 | 543,221 |
Sequoia Mortgage Trust | |
Series 2021-4, Class A1 | | |
0.167%, due 6/25/51 (a)(h)(j) | 25,378,303 | 229,752 |
STACR Trust | |
Series 2018-HRP2, Class B1 | | |
9.645% (SOFR 30A + 4.314%), due 2/25/47 (a)(b) | 1,975,000 | 2,199,211 |
| | 43,801,411 |
Total Mortgage-Backed Securities (Cost $132,836,181) | | 130,014,078 |
U.S. Government & Federal Agencies 11.3% |
Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) 3.9% |
FHLMC Gold Pools, Other | | |
4.00%, due 6/1/42 | 836,646 | 768,439 |
UMBS Pool, 30 Year | | |
2.50%, due 1/1/52 | 2,495,765 | 1,999,436 |
3.50%, due 4/1/52 | 688,167 | 597,914 |
5.00%, due 3/1/54 | 983,827 | 932,491 |
5.50%, due 7/1/53 | 3,767,686 | 3,657,985 |
5.50%, due 7/1/53 | 731,789 | 711,981 |
6.00%, due 10/1/53 | 405,812 | 402,413 |
6.00%, due 11/1/53 | 913,188 | 907,234 |
6.50%, due 10/1/53 | 1,161,587 | 1,170,542 |
6.50%, due 12/1/53 | 1,582,195 | 1,598,987 |
| | 12,747,422 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay MacKay Total Return Bond Fund |
| Principal Amount | Value |
U.S. Government & Federal Agencies (continued) |
Federal National Mortgage Association (Mortgage Pass-Through Securities) 5.6% |
FNMA, Other | | |
4.00%, due 3/1/42 | $ 482,713 | $ 445,142 |
4.00%, due 1/1/43 | 876,278 | 803,728 |
4.38%, due 7/1/28 | 1,000,000 | 969,958 |
6.00%, due 4/1/37 | 3,632 | 3,642 |
UMBS, 30 Year | | |
3.50%, due 12/1/44 | 629,465 | 564,369 |
3.50%, due 11/1/50 | 85,164 | 73,798 |
3.50%, due 7/1/52 | 764,031 | 659,308 |
4.50%, due 1/1/54 | 2,540,000 | 2,341,142 |
5.00%, due 3/1/53 | 4,151,627 | 3,936,497 |
5.00%, due 5/1/53 | 1,082,394 | 1,026,250 |
5.50%, due 8/1/53 | 912,942 | 890,509 |
6.00%, due 8/1/53 | 825,543 | 819,452 |
6.00%, due 9/1/53 | 554,405 | 550,331 |
6.00%, due 9/1/53 | 1,252,924 | 1,241,851 |
6.00%, due 11/1/53 | 1,352,276 | 1,344,034 |
6.50%, due 9/1/53 | 82,144 | 82,881 |
6.50%, due 12/1/53 | 1,063,900 | 1,075,503 |
6.50%, due 3/1/54 | 1,731,682 | 1,754,996 |
| | 18,583,391 |
United States Treasury Inflation - Indexed Notes 0.2% |
U.S. Treasury Inflation Linked Notes (k) | | |
0.125%, due 1/15/30 | 162,832 | 144,419 |
0.875%, due 1/15/29 | 387,135 | 363,005 |
| | 507,424 |
United States Treasury Notes 1.6% |
U.S. Treasury Notes | | |
4.625%, due 4/30/29 | 1,840,000 | 1,832,957 |
4.625%, due 4/30/31 | 3,540,000 | 3,523,406 |
| | 5,356,363 |
Total U.S. Government & Federal Agencies (Cost $38,159,794) | | 37,194,600 |
Total Long-Term Bonds (Cost $345,226,194) | | 323,678,407 |
|
| Shares | | Value |
|
Common Stocks 0.0% ‡ |
Commercial Services & Supplies 0.0% ‡ |
Quad/Graphics, Inc. | 1 | | $ 4 |
Total Common Stocks (Cost $0) | | | 4 |
Short-Term Investments 1.5% |
Affiliated Investment Company 1.2% |
MainStay U.S. Government Liquidity Fund, 5.242% (l) | 3,869,724 | | 3,869,724 |
Unaffiliated Investment Company 0.3% |
Invesco Government & Agency Portfolio, 5.309% (l)(m) | 1,084,423 | | 1,084,423 |
Total Short-Term Investments (Cost $4,954,147) | | | 4,954,147 |
Total Investments (Cost $350,180,341) | 99.9% | | 328,632,558 |
Other Assets, Less Liabilities | 0.1 | | 244,198 |
Net Assets | 100.0% | | $ 328,876,756 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
‡ | 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(a)(2) of the Securities Act of 1933, as amended. |
(b) | Floating rate—Rate shown was the rate in effect as of April 30, 2024. |
(c) | Fixed to floating rate—Rate shown was the rate in effect as of April 30, 2024. |
(d) | Security is perpetual and, thus, does not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. |
(e) | All or a portion of this security was held on loan. As of April 30, 2024, the aggregate market value of securities on loan was $1,022,664. The Fund received cash collateral with a value of $1,084,423. (See Note 2(J)) |
(f) | Illiquid security—As of April 30, 2024, the total market value deemed illiquid under procedures approved by the Board of Trustees was $988,650, which represented 0.3% of the Fund’s net assets. |
(g) | Step coupon—Rate shown was the rate in effect as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
(h) | Collateralized Mortgage Obligation Interest Only Strip—Pays a fixed or variable rate of interest based on mortgage loans or mortgage pass-through securities. The principal amount of the underlying pool represents the notional amount on which the current interest was calculated. The value of these stripped securities may be particularly sensitive to changes in prevailing interest rates and are typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities. |
(i) | Coupon rate may change based on changes of the underlying collateral or prepayments of principal. Rate shown was the rate in effect as of April 30, 2024. |
(j) | Collateral strip rate—A bond whose interest was based on the weighted net interest rate of the collateral. The coupon rate adjusts periodically based on a predetermined schedule. Rate shown was the rate in effect as of April 30, 2024. |
(k) | Treasury Inflation Protected Security—Pays a fixed rate of interest on a principal amount that is continuously adjusted for inflation based on the Consumer Price Index-Urban Consumers. |
(l) | Current yield as of April 30, 2024. |
(m) | Represents a security purchased with cash collateral received for securities on loan. |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 3,806 | $ 96,025 | $ (95,961) | $ — | $ — | $ 3,870 | $ 124 | $ — | 3,870 |
Futures Contracts
As of April 30, 2024, the Fund held the following futures contracts1:
Type | Number of Contracts | Expiration Date | Value at Trade Date | Current Notional Amount | Unrealized Appreciation (Depreciation)2 |
Long Contracts | | | | | |
U.S. Treasury 5 Year Notes | 34 | June 2024 | $ 3,614,848 | $ 3,561,234 | $ (53,614) |
U.S. Treasury 10 Year Notes | 134 | June 2024 | 14,671,464 | 14,396,625 | (274,839) |
U.S. Treasury 10 Year Ultra Bonds | 7 | June 2024 | 772,641 | 771,531 | (1,110) |
U.S. Treasury Long Bonds | 136 | June 2024 | 16,194,926 | 15,478,500 | (716,426) |
U.S. Treasury Ultra Bonds | 129 | June 2024 | 16,466,185 | 15,423,563 | (1,042,622) |
Total Long Contracts | | | | | (2,088,611) |
Short Contracts | | | | | |
U.S. Treasury 2 Year Notes | (4) | June 2024 | (812,804) | (810,625) | 2,179 |
Net Unrealized Depreciation | | | | | $ (2,086,432) |
1. | As of April 30, 2024, cash in the amount of $1,650,203 was on deposit with a broker or futures commission merchant for futures transactions. |
2. | Represents the difference between the value of the contracts at the time they were opened and the value as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay MacKay Total Return Bond Fund |
Abbreviation(s): |
FHLMC—Federal Home Loan Mortgage Corp. |
FNMA—Federal National Mortgage Association |
GNMA—Government National Mortgage Association |
REMIC—Real Estate Mortgage Investment Conduit |
SOFR—Secured Overnight Financing Rate |
STACR—Structured Agency Credit Risk |
UMBS—Uniform Mortgage Backed Securities |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets and liabilities:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Long-Term Bonds | | | | | | | |
Asset-Backed Securities | $ — | | $ 33,306,961 | | $ — | | $ 33,306,961 |
Corporate Bonds | — | | 114,952,996 | | — | | 114,952,996 |
Foreign Government Bonds | — | | 7,639,968 | | — | | 7,639,968 |
Loan Assignments | — | | 569,804 | | — | | 569,804 |
Mortgage-Backed Securities | — | | 130,014,078 | | — | | 130,014,078 |
U.S. Government & Federal Agencies | — | | 37,194,600 | | — | | 37,194,600 |
Total Long-Term Bonds | — | | 323,678,407 | | — | | 323,678,407 |
Common Stocks | 4 | | — | | — | | 4 |
Short-Term Investments | | | | | | | |
Affiliated Investment Company | 3,869,724 | | — | | — | | 3,869,724 |
Unaffiliated Investment Company | 1,084,423 | | — | | — | | 1,084,423 |
Total Short-Term Investments | 4,954,147 | | — | | — | | 4,954,147 |
Total Investments in Securities | 4,954,151 | | 323,678,407 | | — | | 328,632,558 |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | 2,179 | | — | | — | | 2,179 |
Total Investments in Securities and Other Financial Instruments | $ 4,956,330 | | $ 323,678,407 | | $ — | | $ 328,634,737 |
Liability Valuation Inputs | | | | | | | |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | $ (2,088,611) | | $ — | | $ — | | $ (2,088,611) |
(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 (depreciation) as shown on the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $346,310,617) including securities on loan of $1,022,664 | $324,762,834 |
Investment in affiliated investment companies, at value (identified cost $3,869,724) | 3,869,724 |
Cash denominated in foreign currencies (identified cost $502) | 497 |
Cash collateral on deposit at broker for futures contracts | 1,650,203 |
Receivables: | |
Interest | 2,116,898 |
Investment securities sold | 401,284 |
Fund shares sold | 82,733 |
Securities lending | 357 |
Other assets | 69,933 |
Total assets | 332,954,463 |
Liabilities |
Cash collateral received for securities on loan | 1,084,423 |
Due to custodian | 4,280 |
Payables: | |
Investment securities purchased | 2,153,773 |
Variation margin on futures contracts | 420,467 |
Fund shares redeemed | 172,487 |
Manager (See Note 3) | 90,196 |
Transfer agent (See Note 3) | 41,220 |
Professional fees | 37,164 |
Custodian | 24,616 |
Shareholder communication | 13,792 |
NYLIFE Distributors (See Note 3) | 13,337 |
Trustees | 489 |
Accrued expenses | 6,288 |
Distributions payable | 15,175 |
Total liabilities | 4,077,707 |
Net assets | $328,876,756 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 37,351 |
Additional paid-in-capital | 416,500,235 |
| 416,537,586 |
Total distributable earnings (loss) | (87,660,830) |
Net assets | $328,876,756 |
Class A | |
Net assets applicable to outstanding shares | $ 47,593,035 |
Shares of beneficial interest outstanding | 5,405,526 |
Net asset value per share outstanding | $ 8.80 |
Maximum sales charge (4.50% of offering price) | 0.41 |
Maximum offering price per share outstanding | $ 9.21 |
Investor Class | |
Net assets applicable to outstanding shares | $ 4,232,310 |
Shares of beneficial interest outstanding | 477,692 |
Net asset value per share outstanding | $ 8.86 |
Maximum sales charge (4.00% of offering price) | 0.37 |
Maximum offering price per share outstanding | $ 9.23 |
Class C | |
Net assets applicable to outstanding shares | $ 3,021,586 |
Shares of beneficial interest outstanding | 342,043 |
Net asset value and offering price per share outstanding | $ 8.83 |
Class I | |
Net assets applicable to outstanding shares | $ 62,817,658 |
Shares of beneficial interest outstanding | 7,131,273 |
Net asset value and offering price per share outstanding | $ 8.81 |
Class R6 | |
Net assets applicable to outstanding shares | $211,188,150 |
Shares of beneficial interest outstanding | 23,991,964 |
Net asset value and offering price per share outstanding | $ 8.80 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 24,017 |
Shares of beneficial interest outstanding | 2,712 |
Net asset value and offering price per share outstanding | $ 8.86 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 | MainStay MacKay Total Return Bond Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $ 9,584,699 |
Dividends-affiliated | 124,180 |
Securities lending, net | 2,176 |
Total income | 9,711,055 |
Expenses | |
Manager (See Note 3) | 780,685 |
Transfer agent (See Note 3) | 114,617 |
Distribution/Service—Class A (See Note 3) | 60,223 |
Distribution/Service—Investor Class (See Note 3) | 5,395 |
Distribution/Service—Class B (See Note 3)(a) | 1,278 |
Distribution/Service—Class C (See Note 3) | 16,598 |
Distribution/Service—Class R2 (See Note 3)(b) | 23 |
Distribution/Service—Class R3 (See Note 3)(b) | 807 |
Distribution/Service—SIMPLE Class (See Note 3) | 58 |
Registration | 60,042 |
Professional fees | 49,377 |
Custodian | 24,749 |
Trustees | 4,572 |
Shareholder communication | 1,619 |
Shareholder service (See Note 3) | 179 |
Miscellaneous | 4,924 |
Total expenses before waiver/reimbursement | 1,125,146 |
Expense waiver/reimbursement from Manager (See Note 3) | (203,340) |
Net expenses | 921,806 |
Net investment income (loss) | 8,789,249 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | (4,918,678) |
Futures transactions | 503,620 |
Foreign currency transactions | 3,001 |
Net realized gain (loss) | (4,412,057) |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 22,256,988 |
Futures contracts | 2,164,325 |
Translation of other assets and liabilities in foreign currencies | (476) |
Net change in unrealized appreciation (depreciation) | 24,420,837 |
Net realized and unrealized gain (loss) | 20,008,780 |
Net increase (decrease) in net assets resulting from operations | $28,798,029 |
(a) | Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and are no longer offered for sale as of February 20, 2024. |
(b) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
25
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 8,789,249 | $ 18,224,540 |
Net realized gain (loss) | (4,412,057) | (34,402,731) |
Net change in unrealized appreciation (depreciation) | 24,420,837 | 26,950,519 |
Net increase (decrease) in net assets resulting from operations | 28,798,029 | 10,772,328 |
Distributions to shareholders: | | |
Class A | (1,174,082) | (2,153,236) |
Investor Class | (99,111) | (172,568) |
Class B(a) | (4,152) | (15,184) |
Class C | (63,182) | (121,103) |
Class I | (1,696,873) | (3,929,623) |
Class R1(b) | (326) | (1,072) |
Class R2(b) | (350) | (1,140) |
Class R3(b) | (5,833) | (18,820) |
Class R6 | (5,885,765) | (11,688,445) |
SIMPLE Class | (556) | (814) |
Total distributions to shareholders | (8,930,230) | (18,102,005) |
Capital share transactions: | | |
Net proceeds from sales of shares | 18,294,565 | 49,031,695 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 8,834,607 | 17,923,251 |
Cost of shares redeemed | (78,526,905) | (130,355,676) |
Increase (decrease) in net assets derived from capital share transactions | (51,397,733) | (63,400,730) |
Net increase (decrease) in net assets | (31,529,934) | (70,730,407) |
Net Assets |
Beginning of period | 360,406,690 | 431,137,097 |
End of period | $328,876,756 | $ 360,406,690 |
(a) | Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and are no longer offered for sale as of February 20, 2024. |
(b) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
26 | MainStay MacKay Total Return Bond Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.35 | | $ 8.57 | | $ 11.18 | | $ 11.35 | | $ 10.91 | | $ 10.10 |
Net investment income (loss) | 0.21(a) | | 0.36(a) | | 0.29(a) | | 0.24(a) | | 0.24 | | 0.27 |
Net realized and unrealized gain (loss) | 0.46 | | (0.22) | | (2.26) | | (0.03) | | 0.47 | | 0.82 |
Total from investment operations | 0.67 | | 0.14 | | (1.97) | | 0.21 | | 0.71 | | 1.09 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.22) | | (0.36) | | (0.31) | | (0.25) | | (0.27) | | (0.28) |
From net realized gain on investments | — | | — | | (0.33) | | (0.13) | | — | | — |
Return of capital | — | | — | | (0.00)‡ | | — | | — | | — |
Total distributions | (0.22) | | (0.36) | | (0.64) | | (0.38) | | (0.27) | | (0.28) |
Net asset value at end of period | $ 8.80 | | $ 8.35 | | $ 8.57 | | $ 11.18 | | $ 11.35 | | $ 10.91 |
Total investment return (b) | 7.97% | | 1.50% | | (18.43)% | | 1.86% | | 6.55% | | 10.88% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 4.73%†† | | 4.06% | | 2.89% | | 2.14% | | 2.30% | | 2.63% |
Net expenses (c) | 0.87%†† | | 0.83% | | 0.78% | | 0.83% | | 0.85% | | 0.88% |
Expenses (before waiver/reimbursement) (c) | 0.95%†† | | 0.91% | | 0.83% | | 0.83% | | 0.85% | | 0.89% |
Portfolio turnover rate | 39% | | 119% | | 98%(d) | | 111%(d) | | 123% | | 100%(d) |
Net assets at end of period (in 000’s) | $ 47,593 | | $ 46,426 | | $ 54,484 | | $ 87,764 | | $ 92,997 | | $ 56,473 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rates not including mortgage dollar rolls were 96%, 108%, 96% and 63% for the years ended October 31, 2022, 2021, 2020 and 2019, respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
27
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.40 | | $ 8.62 | | $ 11.24 | | $ 11.42 | | $ 10.97 | | $ 10.15 |
Net investment income (loss) | 0.20(a) | | 0.34(a) | | 0.26(a) | | 0.22(a) | | 0.24 | | 0.26 |
Net realized and unrealized gain (loss) | 0.47 | | (0.22) | | (2.27) | | (0.04) | | 0.46 | | 0.82 |
Total from investment operations | 0.67 | | 0.12 | | (2.01) | | 0.18 | | 0.70 | | 1.08 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.21) | | (0.34) | | (0.28) | | (0.23) | | (0.25) | | (0.26) |
From net realized gain on investments | — | | — | | (0.33) | | (0.13) | | — | | — |
Return of capital | — | | — | | (0.00)‡ | | — | | — | | — |
Total distributions | (0.21) | | (0.34) | | (0.61) | | (0.36) | | (0.25) | | (0.26) |
Net asset value at end of period | $ 8.86 | | $ 8.40 | | $ 8.62 | | $ 11.24 | | $ 11.42 | | $ 10.97 |
Total investment return (b) | 7.92% | | 1.20% | | (18.65)% | | 1.54% | | 6.40% | | 10.74% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 4.49%†† | | 3.77% | | 2.65% | | 1.93% | | 2.11% | | 2.46% |
Net expenses (c) | 1.11%†† | | 1.12% | | 1.04% | | 1.04% | | 1.05% | | 1.05% |
Expenses (before waiver/reimbursement) (c) | 1.19%†† | | 1.18% | | 1.09% | | 1.04% | | 1.05% | | 1.06% |
Portfolio turnover rate | 39% | | 119% | | 98%(d) | | 111%(d) | | 123% | | 100%(d) |
Net assets at end of period (in 000's) | $ 4,232 | | $ 4,109 | | $ 4,663 | | $ 6,894 | | $ 7,558 | | $ 6,557 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rates not including mortgage dollar rolls were 96%, 108%, 96% and 63% for the years ended October 31, 2022, 2021, 2020 and 2019, respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
28 | MainStay MacKay Total Return Bond Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.38 | | $ 8.59 | | $ 11.21 | | $ 11.38 | | $ 10.93 | | $ 10.12 |
Net investment income (loss) | 0.17(a) | | 0.27(a) | | 0.18(a) | | 0.13(a) | | 0.14 | | 0.20 |
Net realized and unrealized gain (loss) | 0.45 | | (0.21) | | (2.27) | | (0.03) | | 0.47 | | 0.79 |
Total from investment operations | 0.62 | | 0.06 | | (2.09) | | 0.10 | | 0.61 | | 0.99 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.17) | | (0.27) | | (0.20) | | (0.14) | | (0.16) | | (0.18) |
From net realized gain on investments | — | | — | | (0.33) | | (0.13) | | — | | — |
Return of capital | — | | — | | (0.00)‡ | | — | | — | | — |
Total distributions | (0.17) | | (0.27) | | (0.53) | | (0.27) | | (0.16) | | (0.18) |
Net asset value at end of period | $ 8.83 | | $ 8.38 | | $ 8.59 | | $ 11.21 | | $ 11.38 | | $ 10.93 |
Total investment return (b) | 7.41% | | 0.56% | | (19.32)% | | 0.85% | | 5.64% | | 9.84% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.74%†† | | 3.01% | | 1.83% | | 1.17% | | 1.35% | | 1.74% |
Net expenses (c) | 1.86%†† | | 1.87% | | 1.79% | | 1.79% | | 1.80% | | 1.80% |
Expenses (before waiver/reimbursement) (c) | 1.94%†† | | 1.93% | | 1.84% | | 1.79% | | 1.80% | | 1.81% |
Portfolio turnover rate | 39% | | 119% | | 98%(d) | | 111%(d) | | 123% | | 100%(d) |
Net assets at end of period (in 000’s) | $ 3,022 | | $ 3,348 | | $ 4,480 | | $ 10,449 | | $ 18,434 | | $ 11,916 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rates not including mortgage dollar rolls were 96%, 108%, 96% and 63% for the years ended October 31, 2022, 2021, 2020 and 2019, respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
29
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.35 | | $ 8.57 | | $ 11.18 | | $ 11.36 | | $ 10.91 | | $ 10.10 |
Net investment income (loss) | 0.23(a) | | 0.39(a) | | 0.30(a) | | 0.27(a) | | 0.29 | | 0.31 |
Net realized and unrealized gain (loss) | 0.47 | | (0.21) | | (2.25) | | (0.04) | | 0.45 | | 0.81 |
Total from investment operations | 0.70 | | 0.18 | | (1.95) | | 0.23 | | 0.74 | | 1.12 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.24) | | (0.40) | | (0.33) | | (0.28) | | (0.29) | | (0.31) |
From net realized gain on investments | — | | — | | (0.33) | | (0.13) | | — | | — |
Return of capital | — | | — | | (0.00)‡ | | — | | — | | — |
Total distributions | (0.24) | | (0.40) | | (0.66) | | (0.41) | | (0.29) | | (0.31) |
Net asset value at end of period | $ 8.81 | | $ 8.35 | | $ 8.57 | | $ 11.18 | | $ 11.36 | | $ 10.91 |
Total investment return (b) | 8.31% | | 1.88% | | (18.30)% | | 2.11% | | 6.91% | | 11.20% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 5.15%†† | | 4.43% | | 3.01% | | 2.39% | | 2.56% | | 2.93% |
Net expenses (c) | 0.45%†† | | 0.45% | | 0.53% | | 0.58% | | 0.60% | | 0.60% |
Expenses (before waiver/reimbursement) (c) | 0.70%†† | | 0.65% | | 0.58% | | 0.58% | | 0.60% | | 0.64% |
Portfolio turnover rate | 39% | | 119% | | 98%(d) | | 111%(d) | | 123% | | 100%(d) |
Net assets at end of period (in 000’s) | $ 62,818 | | $ 61,667 | | $ 94,122 | | $ 720,466 | | $ 686,829 | | $ 1,056,594 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rates not including mortgage dollar rolls were 96%, 108%, 96% and 63% for the years ended October 31, 2022, 2021, 2020 and 2019, respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
30 | MainStay MacKay Total Return Bond Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class R6 | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.35 | | $ 8.57 | | $ 11.18 | | $ 11.35 | | $ 10.91 | | $ 10.10 |
Net investment income (loss) | 0.23(a) | | 0.39(a) | | 0.31(a) | | 0.27(a) | | 0.28 | | 0.30 |
Net realized and unrealized gain (loss) | 0.46 | | (0.21) | | (2.26) | | (0.02) | | 0.46 | | 0.82 |
Total from investment operations | 0.69 | | 0.18 | | (1.95) | | 0.25 | | 0.74 | | 1.12 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.24) | | (0.40) | | (0.33) | | (0.29) | | (0.30) | | (0.31) |
From net realized gain on investments | — | | — | | (0.33) | | (0.13) | | — | | — |
Return of capital | — | | — | | (0.00)‡ | | — | | — | | — |
Total distributions | (0.24) | | (0.40) | | (0.66) | | (0.42) | | (0.30) | | (0.31) |
Net asset value at end of period | $ 8.80 | | $ 8.35 | | $ 8.57 | | $ 11.18 | | $ 11.35 | | $ 10.91 |
Total investment return (b) | 8.19% | | 1.89% | | (18.20)% | | 2.16% | | 6.89% | | 11.27% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 5.15%†† | | 4.44% | | 3.13% | | 2.43% | | 2.61% | | 2.98% |
Net expenses (c) | 0.45%†† | | 0.45% | | 0.50% | | 0.53% | | 0.53% | | 0.53% |
Expenses (before waiver/reimbursement) (c) | 0.54%†† | | 0.53% | | 0.54% | | 0.53% | | 0.53% | | 0.53% |
Portfolio turnover rate | 39% | | 119% | | 98%(d) | | 111%(d) | | 123% | | 100%(d) |
Net assets at end of period (in 000’s) | $ 211,188 | | $ 243,909 | | $ 272,227 | | $ 542,147 | | $ 716,703 | | $ 185,733 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rates not including mortgage dollar rolls were 96%, 108%, 96% and 63% for the years ended October 31, 2022, 2021, 2020 and 2019, respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
31
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 8.40 | | $ 8.62 | | $ 11.24 | | $ 11.41 | | $ 11.52** |
Net investment income (loss) | 0.21(a) | | 0.34 | | 0.24(a) | | 0.19(a) | | 0.03 |
Net realized and unrealized gain (loss) | 0.46 | | (0.22) | | (2.28) | | (0.03) | | (0.11) |
Total from investment operations | 0.67 | | 0.12 | | (2.04) | | 0.16 | | (0.08) |
Less distributions: | | | | | | | | | |
From net investment income | (0.21) | | (0.34) | | (0.25) | | (0.20) | | (0.03) |
From net realized gain on investments | — | | — | | (0.33) | | (0.13) | | — |
Return of capital | — | | — | | (0.00)‡ | | — | | — |
Total distributions | (0.21) | | (0.34) | | (0.58) | | (0.33) | | (0.03) |
Net asset value at end of period | $ 8.86 | | $ 8.40 | | $ 8.62 | | $ 11.24 | | $ 11.41 |
Total investment return (b) | 7.99% | | 1.21% | | (18.85)% | | 1.39% | | (0.66)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 4.63%†† | | 3.79% | | 2.43% | | 1.69% | | 1.80%†† |
Net expenses (c) | 0.98%†† | | 1.10% | | 1.28% | | 1.29% | | 1.26%†† |
Expenses (before waiver/reimbursement) (c) | 1.05%†† | | 1.18% | | 1.33% | | 1.29% | | 1.26%†† |
Portfolio turnover rate | 39% | | 119% | | 98%(d) | | 111%(d) | | 123% |
Net assets at end of period (in 000’s) | $ 24 | | $ 21 | | $ 20 | | $ 25 | | $ 25 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
‡ | Less than one cent per share. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate not including mortgage dollar rolls was 96% and 108% for the years ended October 31, 2022 and 2021 respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
32 | MainStay MacKay Total Return Bond Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MacKay Total Return Bond Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | January 2, 2004 |
Investor Class | February 28, 2008 |
Class C | January 2, 2004 |
Class I | January 2, 1991 |
Class R6 | December 29, 2014 |
SIMPLE Class | August 31, 2020 |
Effective at the close of business on February 20, 2024, all outstanding Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and effective February 23, 2024, Class R1, R2 and R3 shares were liquidated.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a CDSC of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I, Class R6 and SIMPLE Class shares are offered at NAV without a sales charge. Depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. SIMPLE Class shares convert to Class A shares, or Investor Class shares if you are not eligible to hold Class A shares, at the end of the calendar quarter, ten years after the date they were purchased. Share class conversions are based on the relevant NAVs of the two classes at the time of the conversion, and no sales load or other charge is imposed. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution
plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A, Investor Class and SIMPLE Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek total return.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee.
Notes to Financial Statements (Unaudited) (continued)
The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the
34 | MainStay MacKay Total Return Bond Fund |
valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. These securities are generally categorized as Level 1 in the hierarchy.
Debt securities (other than convertible and municipal bonds) are valued at the evaluated bid prices (evaluated mean prices in the case of convertible and municipal bonds) supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent’s good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants’ assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values at the regular close of trading of the Exchange on each valuation date. Debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Debt securities, including corporate bonds, U.S. government and federal agency bonds, municipal bonds, foreign bonds, convertible bonds, asset-backed securities and mortgage-backed securities are generally categorized as Level 2 in the hierarchy.
Loan assignments, participations and commitments are valued at the average of bid quotations obtained from the engaged independent pricing service and are generally categorized as Level 2 in the hierarchy. Certain loan assignments, participations and commitments may be valued by utilizing significant unobservable inputs obtained from the pricing service and are generally categorized as Level 3 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized
cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
A portfolio investment may be classified as an illiquid investment under the Trust's written liquidity risk management program and related procedures (“Liquidity Program”). Illiquidity of an investment might prevent the sale of such investment at a time when the Manager or the Subadvisor might wish to sell, and these investments could have the effect of decreasing the overall level of the Fund's liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid investments, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary materially from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid investments may result in a loss or may be costly to the Fund. An illiquid investment is any investment that the Manager or Subadvisor reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The liquidity classification of each investment will be made using information obtained after reasonable inquiry and taking into account, among other things, relevant market, trading and investment-specific considerations in accordance with the Liquidity Program. Illiquid investments are often fair valued in accordance with the Fund's procedures described above. The liquidity of the Fund's investments was determined as of April 30, 2024, and can change at any time.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax and federal excise tax returns
Notes to Financial Statements (Unaudited) (continued)
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 from net investment income, if any, at least monthly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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 and includes any realized gains and losses from repayments of principal on mortgage-backed securities. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital. Discounts and premiums on securities purchased for the Fund are accreted and amortized, respectively. Income from payment-in-kind securities is accreted daily based on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 risks such as market price risk, leverage risk, liquidity risk, counterparty risk, operational risk, legal risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation 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 or futures commission merchant 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. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. 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 the entire margin owed to the Fund, potentially resulting in a loss. The Fund may invest in futures contracts to seek enhanced returns or to reduce the risk of loss by hedging certain of its holdings. The Fund's investment in futures contracts and other derivatives may increase the volatility of the Fund's NAVs and may result in a loss to the Fund.
36 | MainStay MacKay Total Return Bond Fund |
(H) Loan Assignments, Participations and Commitments. The Fund may invest in loan assignments and participations ("loans"). Commitments are agreements to make money available to a borrower in a specified amount, at a specified rate and within a specified time. The Fund records an investment when the borrower withdraws money on a commitment or when a funded loan is purchased (trade date) 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, the Secured Overnight Financing Rate ("SOFR") or an alternative reference rate.
The loans in which the Fund may invest 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. If the Fund purchases an assignment from a lender, the Fund will generally have direct contractual rights against the borrower in favor of the lender. If the Fund purchases a participation interest either from a lender or a participant, the Fund typically will have established a direct contractual relationship with the seller of the participation interest, but not with the borrower. Consequently, the Fund is subject to the credit risk of the lender or participant who sold the participation interest to the Fund, in addition to the usual credit risk of the borrower. In the event that the borrower, selling participant or intermediate participants become insolvent or enter 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. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities.
(I) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 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.
(J) 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(K) Dollar Rolls. The Fund may enter into dollar roll 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 Fund generally transfers MBS where the MBS are "to be announced," therefore, the Fund accounts for these transactions as purchases and sales.
When accounted for as purchase and sales, the securities sold in connection with the dollar rolls 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. Dollar rolls may be renewed without physical delivery of the securities subject to the contract. Dollar roll transactions involve certain risks, including the risk that the securities returned to the Fund at the end
Notes to Financial Statements (Unaudited) (continued)
of the roll period, while substantially similar, could be inferior to what was initially sold to the counterparty.
(L) Foreign Securities Risk. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by, among other things, economic or political developments in a specific country, industry or region. Debt securities are also subject to the risks associated with changes in interest rates. The Fund may invest in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund’s investments in such securities less liquid or more difficult to value. 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, among other things, economic or political developments in a specific country, industry or region.
(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 the 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.
(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 that may 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. The Manager believes 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 related to 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.
The Fund entered into futures contracts to help manage the duration and yield curve positioning of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. These derivatives are not accounted for as hedging instruments.
Fair value of derivative instruments as of April 30, 2024:
Asset Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized appreciation on futures contracts (a) | $2,179 | $2,179 |
Total Fair Value | $2,179 | $2,179 |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Liability Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized depreciation on futures contracts (a) | $(2,088,611) | $(2,088,611) |
Total Fair Value | $(2,088,611) | $(2,088,611) |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is 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, 2024:
Net Realized Gain (Loss) from: | Interest Rate Contracts Risk | Total |
Futures Transactions | $503,620 | $503,620 |
Total Net Realized Gain (Loss) | $503,620 | $503,620 |
Net Change in Unrealized Appreciation (Depreciation) | Interest Rate Contracts Risk | Total |
Futures Contracts | $2,164,325 | $2,164,325 |
Total Net Change in Unrealized Appreciation (Depreciation) | $2,164,325 | $2,164,325 |
38 | MainStay MacKay Total Return Bond Fund |
Average Notional Amount | Total |
Futures Contracts Long | $ 75,950,531 |
Futures Contracts Short (a) | $(18,197,321) |
(a) | Positions were open for four months during the reporting period. |
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 Fund's Manager, pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC ("MacKay Shields" or the "Subadvisor"), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.45% up to $1 billion; 0.44% from $1 billion to $3 billion; and 0.43% in excess of $3 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.45% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of daily net assets: 0.88% for Class A shares and 0.45% for Class I shares. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points of the Class A shares waiver/reimbursement to Investor Class shares, Class C shares and SIMPLE Class shares. New York Life Investments has also contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) of Class R6 do not exceed those of Class I. These agreements will remain in
effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $780,685 and waived fees and/or reimbursed expenses in the amount of $203,363 and paid the Subadvisor fees in the amount of $288,661.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and 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 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 and SIMPLE Class Plans, Class R3 and SIMPLE Class shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 and SIMPLE Class shares, for a total 12b-1 fee of 0.50%. Class I, Class R1 and Class R6 shares are not subject to a distribution and/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.
Notes to Financial Statements (Unaudited) (continued)
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, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R1, Class R2 and Class R3 shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the period November 1, 2023 through February 23, 2024, shareholder service fees incurred by the Fund were as follows:
|
Class R1* | $ 8 |
Class R2* | 9 |
Class R3* | 162 |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $2,866 and $191, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $26 and $95, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the
aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $40,183 | $— |
Investor Class | 8,861 | — |
Class B* | 459 | — |
Class C | 6,779 | — |
Class I | 53,501 | — |
Class R1* | 14 | — |
Class R2* | 16 | — |
Class R3* | 274 | — |
Class R6 | 4,528 | — |
SIMPLE Class | 2 | — |
* | Effective at the close of business on February 20, 2024, all outstanding Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and effective February 23, 2024, Class R1, R2 and R3 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class I | $497,306 | 0.8% |
Class R6 | 28,739 | 0.0‡ |
SIMPLE Class | 22,239 | 92.6 |
‡ | Less than one-tenth of a percent. |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $350,431,865 | $3,244,631 | $(25,043,938) | $(21,799,307) |
40 | MainStay MacKay Total Return Bond Fund |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $63,495,657, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $26,683 | $36,812 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $18,102,005 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple SOFR + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of U.S. government securities were $25,145 and $22,582, respectively. Purchases and sales of securities, other than U.S. government securities and short-term securities, were $107,462 and $157,018, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 423,671 | $ 3,791,945 |
Shares issued to shareholders in reinvestment of distributions | 121,351 | 1,085,680 |
Shares redeemed | (763,261) | (6,786,249) |
Net increase (decrease) in shares outstanding before conversion | (218,239) | (1,908,624) |
Shares converted into Class A (See Note 1) | 63,111 | 566,502 |
Net increase (decrease) | (155,128) | $ (1,342,122) |
Year ended October 31, 2023: | | |
Shares sold | 1,336,524 | $ 12,009,159 |
Shares issued to shareholders in reinvestment of distributions | 225,233 | 1,995,767 |
Shares redeemed | (2,404,821) | (21,340,980) |
Net increase (decrease) in shares outstanding before conversion | (843,064) | (7,336,054) |
Shares converted into Class A (See Note 1) | 45,479 | 403,871 |
Shares converted from Class A (See Note 1) | (790) | (6,740) |
Net increase (decrease) | (798,375) | $ (6,938,923) |
|
Notes to Financial Statements (Unaudited) (continued)
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 7,701 | $ 69,162 |
Shares issued to shareholders in reinvestment of distributions | 10,937 | 98,469 |
Shares redeemed | (33,853) | (304,633) |
Net increase (decrease) in shares outstanding before conversion | (15,215) | (137,002) |
Shares converted into Investor Class (See Note 1) | 17,225 | 155,109 |
Shares converted from Investor Class (See Note 1) | (13,453) | (121,827) |
Net increase (decrease) | (11,443) | $ (103,720) |
Year ended October 31, 2023: | | |
Shares sold | 21,347 | $ 190,107 |
Shares issued to shareholders in reinvestment of distributions | 19,166 | 170,877 |
Shares redeemed | (86,094) | (765,645) |
Net increase (decrease) in shares outstanding before conversion | (45,581) | (404,661) |
Shares converted into Investor Class (See Note 1) | 22,716 | 202,510 |
Shares converted from Investor Class (See Note 1) | (28,987) | (258,759) |
Net increase (decrease) | (51,852) | $ (460,910) |
|
Class B | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 2 | $ 41 |
Shares issued to shareholders in reinvestment of distributions | 448 | 4,023 |
Shares redeemed | (3,384) | (30,620) |
Net increase (decrease) in shares outstanding before conversion | (2,934) | (26,556) |
Shares converted from Class B (See Note 1) | (46,840) | (419,864) |
Net increase (decrease) | (49,774) | $ (446,420) |
Year ended October 31, 2023: | | |
Shares sold | 9 | $ 91 |
Shares issued to shareholders in reinvestment of distributions | 1,659 | 14,733 |
Shares redeemed | (12,098) | (107,511) |
Net increase (decrease) in shares outstanding before conversion | (10,430) | (92,687) |
Shares converted from Class B (See Note 1) | (10,455) | (92,850) |
Net increase (decrease) | (20,885) | $ (185,537) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 37,197 | $ 334,536 |
Shares issued to shareholders in reinvestment of distributions | 6,994 | 62,784 |
Shares redeemed | (84,918) | (763,688) |
Net increase (decrease) in shares outstanding before conversion | (40,727) | (366,368) |
Shares converted from Class C (See Note 1) | (16,985) | (153,247) |
Net increase (decrease) | (57,712) | $ (519,615) |
Year ended October 31, 2023: | | |
Shares sold | 28,064 | $ 251,509 |
Shares issued to shareholders in reinvestment of distributions | 13,540 | 120,424 |
Shares redeemed | (135,149) | (1,207,734) |
Net increase (decrease) in shares outstanding before conversion | (93,545) | (835,801) |
Shares converted from Class C (See Note 1) | (27,977) | (249,422) |
Net increase (decrease) | (121,522) | $ (1,085,223) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 873,065 | $ 7,800,049 |
Shares issued to shareholders in reinvestment of distributions | 189,315 | 1,695,051 |
Shares redeemed | (1,313,913) | (11,702,778) |
Net increase (decrease) | (251,533) | $ (2,207,678) |
Year ended October 31, 2023: | | |
Shares sold | 1,328,814 | $ 11,845,018 |
Shares issued to shareholders in reinvestment of distributions | 441,739 | 3,925,913 |
Shares redeemed | (5,368,675) | (47,194,900) |
Net increase (decrease) in shares outstanding before conversion | (3,598,122) | (31,423,969) |
Shares converted into Class I (See Note 1) | 158 | 1,390 |
Net increase (decrease) | (3,597,964) | $(31,422,579) |
|
Class R1 | Shares | Amount |
Six-month period ended April 30, 2024: (b) | | |
Shares issued to shareholders in reinvestment of distributions | 36 | $ 326 |
Shares redeemed | (2,956) | (26,572) |
Net increase (decrease) | (2,920) | $ (26,246) |
Year ended October 31, 2023: | | |
Shares issued to shareholders in reinvestment of distributions | 121 | $ 1,072 |
Net increase (decrease) | 121 | $ 1,072 |
|
42 | MainStay MacKay Total Return Bond Fund |
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (b) | | |
Shares issued to shareholders in reinvestment of distributions | 39 | $ 350 |
Shares redeemed | (3,338) | (30,000) |
Net increase (decrease) | (3,299) | $ (29,650) |
Year ended October 31, 2023: | | |
Shares issued to shareholders in reinvestment of distributions | 128 | $ 1,140 |
Net increase (decrease) | 128 | $ 1,140 |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (b) | | |
Shares sold | 4,048 | $ 35,849 |
Shares issued to shareholders in reinvestment of distributions | 179 | 1,603 |
Shares redeemed | (56,164) | (504,569) |
Net increase (decrease) in shares outstanding before conversion | (51,937) | (467,117) |
Shares converted from Class R3 (See Note 1) | (2,970) | (26,673) |
Net increase (decrease) | (54,907) | $ (493,790) |
Year ended October 31, 2023: | | |
Shares sold | 6,133 | $ 53,842 |
Shares issued to shareholders in reinvestment of distributions | 460 | 4,066 |
Shares redeemed | (8,063) | (71,558) |
Net increase (decrease) | (1,470) | $ (13,650) |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 702,800 | $ 6,261,270 |
Shares issued to shareholders in reinvestment of distributions | 658,080 | 5,885,765 |
Shares redeemed | (6,590,628) | (58,377,796) |
Net increase (decrease) | (5,229,748) | $(46,230,761) |
Year ended October 31, 2023: | | |
Shares sold | 2,791,732 | $ 24,681,969 |
Shares issued to shareholders in reinvestment of distributions | 1,319,851 | 11,688,445 |
Shares redeemed | (6,668,713) | (59,667,348) |
Net increase (decrease) | (2,557,130) | $(23,296,934) |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 188 | $ 1,713 |
Shares issued to shareholders in reinvestment of distributions | 62 | 556 |
Net increase (decrease) | 250 | $ 2,269 |
Year ended October 31, 2023: | | |
Shares issued to shareholders in reinvestment of distributions | 92 | $ 814 |
Net increase (decrease) | 92 | $ 814 |
(a) | Class B shares converted into Class A or Investor Class shares pursuant to the applicable conversion schedule and are no longer offered for sale as of February 20, 2024. |
(b) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay MacKay Total Return 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and MacKay in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and MacKay in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or MacKay that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, MacKay personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and MacKay; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and MacKay; (iii) the costs of the services provided, and profits realized, by New York Life Investments and MacKay with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
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The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and MacKay. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and MacKay resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and MacKay
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by MacKay, evaluating the performance of MacKay, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of MacKay and ongoing analysis of, and interactions with, MacKay with respect to, among other things, the Fund’s investment performance and risks as well as MacKay’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that MacKay provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated MacKay’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and MacKay’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at MacKay. The Board considered New York Life Investments’ and MacKay’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and MacKay and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered MacKay’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and MacKay regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of MacKay and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and MacKay
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because MacKay is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and MacKay in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and MacKay, and profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including MacKay’s, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and MacKay and acknowledged that New York Life Investments and MacKay must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial
position for New York Life Investments and MacKay to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to MacKay from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to MacKay in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
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After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including MacKay, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to MacKay is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and MacKay on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
48 | MainStay MacKay Total Return Bond Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022327 MS081-24 | MSTRB10-06/24 |
(NYLIM) NL229
MainStay Short Term Bond Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date | Six Months1 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 |
Class A Shares3 | Maximum 1.00% Initial Sales Charge | With sales charges | 1/2/2004 | 2.21% | 2.39% | 0.91% | 1.39% | 0.75% |
| | Excluding sales charges | | 3.24 | 3.43 | 1.52 | 1.70 | 0.75 |
Investor Class Shares3, 4 | Maximum 0.50% Initial Sales Charge | With sales charges | 2/28/2008 | 2.58 | 2.67 | 0.74 | 1.17 | 1.27 |
| | Excluding sales charges | | 3.10 | 3.19 | 1.36 | 1.48 | 1.27 |
Class I Shares | No Sales Charge | | 1/2/1991 | 3.39 | 3.75 | 1.85 | 2.01 | 0.48 |
SIMPLE Class Shares | No Sales Charge | | 8/31/2020 | 3.10 | 3.11 | N/A | -0.31 | 1.08 |
1. | Not annualized. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to February 28, 2020, the maximum initial sales charge applicable was 3.00%, which is reflected in the average annual total return figures shown. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 1.00%, which is reflected in the average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg U.S. Aggregate Bond Index2 | 4.97% | -1.47% | -0.16% | 1.20% |
Bloomberg 1-3 Year U.S. Government/Credit Bond Index3 | 2.46 | 2.79 | 1.24 | 1.24 |
Morningstar U.S. Fund Short-Term Bond Category Average4 | 3.78 | 3.89 | 1.52 | 1.52 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg U.S. Aggregate Bond Index, which represents a broad measure of market performance, as a replacement for the Bloomberg 1-3 Year U.S. Government/Credit Bond Index. The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the performance of 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. |
3. | The Bloomberg 1-3 Year U.S. Government/Credit Bond Index, which is generally representative of the market sectors or types of investments in which the Fund invests, is an unmanaged index comprised of investment grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related and corporate securities, with maturities of one to three years. |
4. | The Morningstar U.S. Fund Short-Term Bond Category Average is representative of funds that invest primarily in corporate and other investment-grade U.S. fixed-income issues and typically have durations of 1.0 to 3.5 years. These funds are attractive to fairly conservative investors, because they are less sensitive to interest rates than funds with longer durations. Morningstar calculates monthly breakpoints using the effective duration of the Morningstar Core Bond Index in determining duration assignment. Short-term is defined as 25% to 75% of the three-year average effective duration of the MCBI. Results are based on average total returns of similar funds with all dividends 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,032.40 | $3.54 | $1,021.38 | $3.52 | 0.70% |
Investor Class Shares | $1,000.00 | $1,031.00 | $4.65 | $1,020.29 | $4.62 | 0.92% |
Class I Shares | $1,000.00 | $1,033.90 | $2.02 | $1,022.87 | $2.01 | 0.40% |
SIMPLE Class Shares | $1,000.00 | $1,031.00 | $4.75 | $1,020.19 | $4.72 | 0.94% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Portfolio Composition as of April 30, 2024 (Unaudited)
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | U.S. Treasury Notes, 0.25%-4.875%, due 5/15/24–2/15/34 |
2. | iShares 1-5 Year Investment Grade Corporate Bond ETF |
3. | FNMA, 2.00%-2.50%, due 2/25/51–5/25/51 |
4. | Deutsche Bank AG, 6.119%, due 7/14/26 |
5. | A&D Mortgage Trust, 6.195%-7.472%, due 9/25/68–2/25/69 |
6. | JPMorgan Chase & Co., 2.005%-5.581%, due 12/15/25–4/22/30 |
7. | Morgan Stanley, 4.679%-6.138%, due 7/17/26–4/18/30 |
8. | UMBS Pool, 30 Year, 5.50%-6.00%, due 10/1/52–7/1/53 |
9. | GNMA, 0.611%-0.859%, due 4/16/63–9/16/63 |
10. | Bank of America Corp., 5.08%-5.202%, due 1/20/27–4/25/29 |
8 | MainStay Short Term Bond Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Long-Term Bonds 95.2% |
Asset-Backed Securities 11.8% |
Other Asset-Backed Securities 11.8% |
AGL CLO 29 Ltd. | |
Series 2024-29A, Class B | | |
7.383% (3 Month SOFR + 2.05%), due 4/21/37 (a)(b) | $ 750,000 | $ 751,223 |
ALLO Issuer LLC | |
Series 2023-1A, Class A2 | | |
6.20%, due 6/20/53 (a) | 800,000 | 787,378 |
Ballyrock CLO 23 Ltd. | |
Series 2023-23A, Class A1 | | |
7.304% (3 Month SOFR + 1.98%), due 4/25/36 (a)(b) | 500,000 | 504,265 |
Barings CLO Ltd. | |
Series 2024-1A, Class B | | |
7.369% (3 Month SOFR + 2.10%), due 1/20/37 (a)(b) | 450,000 | 451,894 |
Barings Loan Partners CLO Ltd. 3 | |
Series LP-3A, Class BR | | |
7.425% (3 Month SOFR + 2.10%), due 7/20/33 (a)(b) | 750,000 | 752,606 |
Benefit Street Partners CLO XXX Ltd. | |
Series 2023-30A, Class A | | |
7.424% (3 Month SOFR + 2.10%), due 4/25/36 (a)(b) | 400,000 | 402,952 |
Cars Net Lease Mortgage Notes | |
Series 2020-1A, Class A3 | | |
3.10%, due 12/15/50 (a) | 688,333 | 592,221 |
CyrusOne Data Centers Issuer I LLC (a) | |
Series 2023-1A, Class A2 | | |
4.30%, due 4/20/48 | 500,000 | 463,968 |
Series 2023-2A, Class A2 | | |
5.56%, due 11/20/48 | 675,000 | 655,921 |
Empower CLO Ltd. | |
Series 2023-2A, Class A1 | | |
7.529% (3 Month SOFR + 2.20%), due 7/15/36 (a)(b) | 1,000,000 | 1,013,279 |
Invesco US CLO Ltd. | |
Series 2023-2A, Class A | | |
7.125% (3 Month SOFR + 1.80%), due 4/21/36 (a)(b) | 1,000,000 | 1,005,300 |
Juniper Valley Park CLO LLC | |
Series 2023-1A, Class B | | |
7.875% (3 Month SOFR + 2.55%), due 7/20/35 (a)(b) | 750,000 | 751,784 |
MetroNet Infrastructure Issuer LLC | |
Series 2022-1A, Class A2 | | |
6.35%, due 10/20/52 (a) | 800,000 | 799,245 |
| Principal Amount | Value |
|
Other Asset-Backed Securities (continued) |
Oak Street Investment Grade Net Lease Fund | |
Series 2021-1A, Class A1 | | |
1.48%, due 1/20/51 (a) | $ 681,588 | $ 622,397 |
Oaktree CLO Ltd. | |
Series 2022-2A, Class BR | | |
7.479% (3 Month SOFR + 2.15%), due 7/15/33 (a)(b) | 1,000,000 | 1,002,200 |
Octagon 67 Ltd. | |
Series 2023-1A, Class A1 | | |
7.124% (3 Month SOFR + 1.80%), due 4/25/36 (a)(b) | 1,000,000 | 1,002,766 |
SMB Private Education Loan Trust | |
Series 2021-A, Class B | | |
2.31%, due 1/15/53 (a) | 711,808 | 662,507 |
Sunnova Helios XIII Issuer LLC | |
Series 2024-A, Class A | | |
5.30%, due 2/20/51 (a) | 729,108 | 695,955 |
SVC ABS LLC | |
Series 2023-1A, Class A | | |
5.15%, due 2/20/53 (a) | 780,421 | 737,270 |
Texas Debt Capital CLO Ltd. | |
Series 2023-2A, Class A | | |
7.275% (3 Month SOFR + 1.95%), due 7/21/35 (a)(b) | 750,000 | 751,276 |
Ziply Fiber Issuer LLC | |
Series 2024-1A, Class A2 | | |
6.64%, due 4/20/54 (a) | 600,000 | 599,247 |
Total Asset-Backed Securities (Cost $14,828,561) | | 15,005,654 |
Corporate Bonds 35.9% |
Aerospace & Defense 0.5% |
BAE Systems plc | | |
5.125%, due 3/26/29 (a) | 590,000 | 579,173 |
Auto Manufacturers 2.5% |
American Honda Finance Corp. | | |
0.55%, due 7/12/24 | 615,000 | 609,034 |
Ford Motor Credit Co. LLC | | |
4.542%, due 8/1/26 | 505,000 | 488,467 |
5.125%, due 6/16/25 | 510,000 | 504,612 |
6.80%, due 5/12/28 | 200,000 | 204,090 |
General Motors Financial Co., Inc. | | |
6.05%, due 10/10/25 | 735,000 | 736,712 |
Hyundai Capital America | | |
5.65%, due 6/26/26 (a) | 420,000 | 418,184 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Auto Manufacturers (continued) |
Nissan Motor Acceptance Co. LLC (a) | | |
2.45%, due 9/15/28 | $ 200,000 | $ 170,144 |
6.95%, due 9/15/26 | 60,000 | 61,058 |
| | 3,192,301 |
Banks 18.1% |
ABN AMRO Bank NV | | |
6.339% (1 Year Treasury Constant Maturity Rate + 1.65%), due 9/18/27 (a)(b) | 255,000 | 257,223 |
Bank of America Corp. (c) | | |
5.08%, due 1/20/27 | 1,140,000 | 1,127,913 |
5.202%, due 4/25/29 | 380,000 | 374,119 |
Bank of New York Mellon Corp. (The) (c) | | |
4.543%, due 2/1/29 | 170,000 | 164,883 |
4.947%, due 4/26/27 | 325,000 | 321,638 |
Barclays plc | | |
5.829%, due 5/9/27 (c) | 210,000 | 209,267 |
7.385% (1 Year Treasury Constant Maturity Rate + 3.30%), due 11/2/28 (b) | 990,000 | 1,034,021 |
Citigroup, Inc. | | |
5.61%, due 9/29/26 (c) | 1,040,000 | 1,037,713 |
Citizens Bank NA | | |
6.064%, due 10/24/25 (c) | 790,000 | 786,294 |
Credit Suisse AG | | |
7.95%, due 1/9/25 | 1,010,000 | 1,023,595 |
Deutsche Bank AG | | |
6.119%, due 7/14/26 (c) | 2,090,000 | 2,088,485 |
Fifth Third Bank NA | | |
5.852%, due 10/27/25 (c) | 1,040,000 | 1,038,327 |
Goldman Sachs Group, Inc. (The) | | |
5.70%, due 11/1/24 | 280,000 | 280,058 |
6.484%, due 10/24/29 (c) | 785,000 | 809,996 |
HSBC Holdings plc | | |
7.336%, due 11/3/26 (c) | 840,000 | 858,858 |
Huntington National Bank (The) (c) | | |
4.008%, due 5/16/25 | 580,000 | 579,093 |
5.699%, due 11/18/25 | 295,000 | 293,257 |
JPMorgan Chase & Co. (c) | | |
2.005%, due 3/13/26 | 310,000 | 299,884 |
5.04%, due 1/23/28 | 90,000 | 88,723 |
5.546%, due 12/15/25 | 390,000 | 388,991 |
5.571%, due 4/22/28 | 340,000 | 339,732 |
5.581%, due 4/22/30 | 680,000 | 679,397 |
KeyBank NA | | |
3.30%, due 6/1/25 | 526,000 | 508,327 |
| Principal Amount | Value |
|
Banks (continued) |
KeyBank NA (continued) | | |
4.15%, due 8/8/25 | $ 540,000 | $ 524,182 |
Manufacturers & Traders Trust Co. | | |
2.90%, due 2/6/25 | 610,000 | 595,204 |
Morgan Stanley (c) | | |
4.679%, due 7/17/26 | 450,000 | 444,149 |
5.173%, due 1/16/30 | 595,000 | 583,396 |
5.656%, due 4/18/30 | 360,000 | 360,076 |
6.138%, due 10/16/26 | 380,000 | 382,098 |
Morgan Stanley Bank NA | | |
4.754%, due 4/21/26 | 620,000 | 611,928 |
PNC Financial Services Group, Inc. (The) (c) | | |
4.758%, due 1/26/27 | 125,000 | 123,156 |
5.812%, due 6/12/26 | 230,000 | 230,047 |
6.615%, due 10/20/27 | 295,000 | 301,445 |
Royal Bank of Canada | | |
5.66%, due 10/25/24 | 320,000 | 320,032 |
Societe Generale SA | | |
6.446% (1 Year Treasury Constant Maturity Rate + 2.55%), due 1/10/29 (a)(b) | 375,000 | 379,837 |
State Street Corp. | | |
4.857%, due 1/26/26 (c) | 135,000 | 133,984 |
Toronto-Dominion Bank (The) | | |
4.285%, due 9/13/24 | 350,000 | 348,351 |
Truist Bank | | |
2.636% (5 Year Treasury Constant Maturity Rate + 1.15%), due 9/17/29 (b) | 285,000 | 274,516 |
U.S. Bancorp (c) | | |
4.653%, due 2/1/29 | 390,000 | 375,885 |
6.787%, due 10/26/27 | 440,000 | 451,263 |
UBS Group AG | | |
6.327% (1 Year Treasury Constant Maturity Rate + 1.60%), due 12/22/27 (a)(b) | 625,000 | 632,764 |
Wells Fargo & Co. (c) | | |
4.54%, due 8/15/26 | 780,000 | 767,538 |
5.198%, due 1/23/30 | 745,000 | 730,495 |
| | 23,160,140 |
Biotechnology 0.5% |
Amgen, Inc. | | |
5.15%, due 3/2/28 | 665,000 | 659,094 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay Short Term Bond Fund |
| Principal Amount | Value |
Corporate Bonds (continued) |
Chemicals 0.4% |
Celanese US Holdings LLC | | |
6.05%, due 3/15/25 | $ 196,000 | $ 196,026 |
6.55%, due 11/15/30 | 260,000 | 266,329 |
| | 462,355 |
Diversified Financial Services 3.7% |
AerCap Ireland Capital DAC | | |
1.65%, due 10/29/24 | 162,000 | 158,612 |
6.45%, due 4/15/27 | 587,000 | 598,411 |
Air Lease Corp. | | |
0.80%, due 8/18/24 | 750,000 | 738,746 |
American Express Co. | | |
6.489%, due 10/30/31 (c) | 440,000 | 460,552 |
Antares Holdings LP (a) | | |
3.95%, due 7/15/26 | 250,000 | 234,153 |
7.95%, due 8/11/28 | 250,000 | 256,923 |
Ares Management Corp. | | |
6.375%, due 11/10/28 | 485,000 | 500,419 |
Blackstone Holdings Finance Co. LLC | | |
5.90%, due 11/3/27 (a) | 355,000 | 359,240 |
Capital One Financial Corp. | | |
4.985%, due 7/24/26 (c) | 260,000 | 256,975 |
Charles Schwab Corp. (The) | | |
6.196%, due 11/17/29 (c) | 390,000 | 399,147 |
Intercontinental Exchange, Inc. | | |
3.65%, due 5/23/25 | 775,000 | 759,735 |
| | 4,722,913 |
Electric 2.2% |
Duke Energy Corp. | | |
2.45%, due 6/1/30 | 235,000 | 197,964 |
Enel Finance America LLC | | |
7.10%, due 10/14/27 (a) | 200,000 | 208,475 |
Florida Power & Light Co. | | |
5.05%, due 4/1/28 | 595,000 | 591,704 |
National Rural Utilities Cooperative Finance Corp. | | |
5.05%, due 9/15/28 | 280,000 | 276,799 |
Pacific Gas and Electric Co. | | |
5.45%, due 6/15/27 | 225,000 | 223,567 |
6.10%, due 1/15/29 | 395,000 | 398,217 |
Southern California Edison Co. | | |
5.30%, due 3/1/28 | 355,000 | 352,999 |
5.85%, due 11/1/27 | 305,000 | 308,425 |
Southern Co. (The) | | |
5.15%, due 10/6/25 | 280,000 | 278,020 |
| | 2,836,170 |
| Principal Amount | Value |
|
Entertainment 0.2% |
Warnermedia Holdings, Inc. | | |
3.755%, due 3/15/27 | $ 305,000 | $ 287,400 |
Food 0.2% |
Tyson Foods, Inc. | | |
5.40%, due 3/15/29 | 300,000 | 296,897 |
Healthcare-Products 0.6% |
Baxter International, Inc. | | |
2.272%, due 12/1/28 | 125,000 | 108,167 |
Solventum Corp. | | |
5.45%, due 2/25/27 (a) | 670,000 | 664,354 |
| | 772,521 |
Healthcare-Services 0.4% |
HCA, Inc. | | |
5.625%, due 9/1/28 | 445,000 | 443,020 |
Insurance 0.5% |
Corebridge Global Funding | | |
5.20%, due 1/12/29 (a) | 625,000 | 613,503 |
Internet 0.3% |
Meta Platforms, Inc. | | |
3.50%, due 8/15/27 | 450,000 | 427,659 |
Investment Companies 0.4% |
Blackstone Private Credit Fund | | |
7.05%, due 9/29/25 | 205,000 | 206,912 |
Blue Owl Credit Income Corp. | | |
5.50%, due 3/21/25 | 320,000 | 317,642 |
| | 524,554 |
Media 0.2% |
Charter Communications Operating LLC | | |
4.908%, due 7/23/25 | 225,000 | 221,920 |
Pharmaceuticals 0.9% |
AbbVie, Inc. | | |
4.80%, due 3/15/27 | 660,000 | 652,059 |
Becton Dickinson & Co. | | |
4.693%, due 2/13/28 | 135,000 | 131,357 |
Cigna Group (The) | | |
5.00%, due 5/15/29 | 290,000 | 284,104 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Corporate Bonds (continued) |
Pharmaceuticals (continued) |
CVS Health Corp. | | |
4.30%, due 3/25/28 | $ 85,000 | $ 81,562 |
| | 1,149,082 |
Pipelines 1.1% |
Cheniere Energy Partners LP | | |
4.00%, due 3/1/31 | 265,000 | 236,448 |
Energy Transfer LP | | |
5.55%, due 2/15/28 | 290,000 | 289,700 |
ONEOK, Inc. | | |
5.55%, due 11/1/26 | 265,000 | 264,726 |
5.85%, due 1/15/26 | 275,000 | 276,047 |
Plains All American Pipeline LP | | |
4.50%, due 12/15/26 | 295,000 | 286,961 |
| | 1,353,882 |
Semiconductors 0.8% |
Broadcom Corp. | | |
3.875%, due 1/15/27 | 500,000 | 479,820 |
Intel Corp. | | |
4.875%, due 2/10/28 | 320,000 | 315,266 |
Micron Technology, Inc. | | |
4.975%, due 2/6/26 | 265,000 | 262,117 |
| | 1,057,203 |
Software 0.8% |
Oracle Corp. | | |
1.65%, due 3/25/26 | 1,140,000 | 1,059,094 |
Telecommunications 1.3% |
AT&T, Inc. | | |
1.70%, due 3/25/26 | 780,000 | 726,377 |
Rogers Communications, Inc. | | |
5.00%, due 2/15/29 | 485,000 | 471,955 |
T-Mobile USA, Inc. | | |
2.625%, due 4/15/26 | 500,000 | 472,396 |
| | 1,670,728 |
Trucking & Leasing 0.3% |
Penske Truck Leasing Co. LP (a) | | |
5.75%, due 5/24/26 | 250,000 | 250,077 |
6.05%, due 8/1/28 | 135,000 | 136,453 |
| | 386,530 |
Total Corporate Bonds (Cost $45,862,279) | | 45,876,139 |
| Principal Amount | Value |
Foreign Government Bond 0.3% |
France 0.3% |
Electricite de France SA | | |
5.65%, due 4/22/29 (a) | $ 425,000 | $ 423,799 |
Total Foreign Government Bond (Cost $424,399) | | 423,799 |
Mortgage-Backed Securities 10.1% |
Agency (Collateralized Mortgage Obligations) 2.5% |
FHLMC | |
REMIC, Series 5144, Class QI | | |
2.50%, due 4/25/51 (d) | 7,331,066 | 865,165 |
FNMA (d) | |
REMIC, Series 2023-2, Class DI | | |
2.00%, due 5/25/51 | 4,222,330 | 556,215 |
REMIC, Series 2021-3, Class TI | | |
2.50%, due 2/25/51 | 2,231,096 | 362,385 |
REMIC, Series 2021-61, Class MI | | |
2.50%, due 4/25/51 | 5,844,624 | 677,639 |
REMIC, Series 2023-2, Class EI | | |
2.50%, due 4/25/51 | 4,660,129 | 747,418 |
| | 3,208,822 |
Commercial Mortgage Loans (Collateralized Mortgage Obligations) 3.4% |
BX | |
Series 2024-BRVE, Class A | | |
7.141% (1 Month SOFR + 1.841%), due 4/15/26 (a)(b) | 750,000 | 747,656 |
CENT Trust | |
Series 2023-CITY, Class A | | |
7.941% (1 Month SOFR + 2.62%), due 9/15/38 (a)(b) | 750,000 | 755,625 |
FNMA, ACES | |
REMIC, Series 2019-M12, Class X3 | | |
0.717%, due 6/25/29 (d)(e) | 13,000,000 | 346,620 |
GNMA (d)(e) | |
Series 2023-179 | | |
0.611%, due 9/16/63 | 14,852,850 | 611,659 |
Series 2024-32 | | |
0.706%, due 6/16/63 | 12,447,588 | 615,104 |
Series 2021-106 | | |
0.859%, due 4/16/63 | 8,024,084 | 524,574 |
OPEN Trust | |
Series 2023-AIR, Class A | | |
8.41% (1 Month SOFR + 3.089%), due 10/15/28 (a)(b) | 692,316 | 700,104 |
| | 4,301,342 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay Short Term Bond Fund |
| Principal Amount | Value |
Mortgage-Backed Securities (continued) |
Whole Loan (Collateralized Mortgage Obligations) 4.2% |
A&D Mortgage Trust (a)(f) | |
Series 2024-NQM1, Class A1 | | |
6.195%, due 2/25/69 | $ 582,993 | $ 577,899 |
Series 2023-NQM5, Class A1 | | |
7.049%, due 11/25/68 | 730,700 | 735,256 |
Series 2023-NQM4, Class A1 | | |
7.472%, due 9/25/68 | 698,192 | 704,611 |
BRAVO Residential Funding Trust | |
Series 2023-NQM8, Class A1 | | |
6.394%, due 10/25/63 (a)(f) | 479,562 | 478,681 |
COLT Mortgage Loan Trust (a)(f) | |
Series 2023-4, Class A1 | | |
7.163%, due 10/25/68 | 711,088 | 716,027 |
Series 2023-3, Class A1 | | |
7.18%, due 9/25/68 | 516,891 | 522,644 |
GCAT Trust | |
Series 2023-NQM3, Class A1 | | |
6.889%, due 8/25/68 (a)(f) | 680,811 | 685,936 |
HOMES Trust | |
Series 2023-NQM2, Class A1 | | |
6.456%, due 2/25/68 (a)(f) | 885,568 | 881,770 |
| | 5,302,824 |
Total Mortgage-Backed Securities (Cost $12,760,353) | | 12,812,988 |
U.S. Government & Federal Agencies 37.1% |
Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) 1.4% |
UMBS Pool, 30 Year | | |
5.50%, due 10/1/52 | 481,363 | 469,141 |
5.50%, due 11/1/52 | 742,845 | 723,690 |
6.00%, due 7/1/53 | 572,692 | 573,745 |
| | 1,766,576 |
Federal National Mortgage Association (Mortgage Pass-Through Securities) 0.9% |
UMBS, 30 Year | | |
6.00%, due 11/1/52 | 684,941 | 681,741 |
6.00%, due 9/1/53 | 512,713 | 517,105 |
| | 1,198,846 |
United States Treasury Notes 34.8% |
U.S. Treasury Notes | | |
0.25%, due 5/15/24 | 3,225,000 | 3,218,626 |
2.875%, due 5/31/25 | 1,310,000 | 1,277,506 |
4.00%, due 2/15/34 | 1,890,000 | 1,789,594 |
| Principal Amount | | Value |
|
United States Treasury Notes (continued) |
U.S. Treasury Notes (continued) | | | |
4.25%, due 9/30/24 | $ 3,800,000 | | $ 3,782,076 |
4.50%, due 4/15/27 | 4,075,000 | | 4,033,613 |
4.625%, due 4/30/29 | 440,000 | | 438,316 |
4.875%, due 4/30/26 | 29,975,000 | | 29,884,841 |
| | | 44,424,572 |
Total U.S. Government & Federal Agencies (Cost $47,524,607) | | | 47,389,994 |
Total Long-Term Bonds (Cost $121,400,199) | | | 121,508,574 |
|
| Shares | | |
|
Exchange-Traded Fund 3.2% |
iShares 1-5 Year Investment Grade Corporate Bond ETF | 80,301 | | 4,078,488 |
Total Exchange-Traded Fund (Cost $4,041,019) | | | 4,078,488 |
Total Investments (Cost $125,441,218) | 98.4% | | 125,587,062 |
Other Assets, Less Liabilities | 1.6 | | 2,103,658 |
Net Assets | 100.0% | | $ 127,690,720 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
(b) | Floating rate—Rate shown was the rate in effect as of April 30, 2024. |
(c) | Fixed to floating rate—Rate shown was the rate in effect as of April 30, 2024. |
(d) | Collateralized Mortgage Obligation Interest Only Strip—Pays a fixed or variable rate of interest based on mortgage loans or mortgage pass-through securities. The principal amount of the underlying pool represents the notional amount on which the current interest was calculated. The value of these stripped securities may be particularly sensitive to changes in prevailing interest rates and are typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities. |
(e) | Collateral strip rate—A bond whose interest was based on the weighted net interest rate of the collateral. The coupon rate adjusts periodically based on a predetermined schedule. Rate shown was the rate in effect as of April 30, 2024. |
(f) | Step coupon—Rate shown was the rate in effect as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Futures Contracts
As of April 30, 2024, the Fund held the following futures contracts1:
Type | Number of Contracts | Expiration Date | Value at Trade Date | Current Notional Amount | Unrealized Appreciation (Depreciation)2 |
Long Contracts | | | | | |
U.S. Treasury 2 Year Notes | 161 | June 2024 | $ 32,977,312 | $ 32,627,656 | $ (349,656) |
Short Contracts | | | | | |
U.S. Treasury 5 Year Notes | (119) | June 2024 | (12,626,504) | (12,464,320) | 162,184 |
U.S. Treasury 10 Year Notes | (20) | June 2024 | (2,202,574) | (2,148,750) | 53,824 |
U.S. Treasury 10 Year Ultra Bonds | (31) | June 2024 | (3,521,350) | (3,416,781) | 104,569 |
U.S. Treasury Long Bonds | (3) | June 2024 | (345,846) | (341,438) | 4,408 |
Total Short Contracts | | | | | 324,985 |
Net Unrealized Depreciation | | | | | $ (24,671) |
1. | As of April 30, 2024, cash in the amount of $318,632 was on deposit with a broker or futures commission merchant for futures transactions. |
2. | Represents the difference between the value of the contracts at the time they were opened and the value as of April 30, 2024. |
Abbreviation(s): |
ACES—Alternative Credit Enhancement Securities |
CLO—Collateralized Loan Obligation |
ETF—Exchange-Traded Fund |
FHLMC—Federal Home Loan Mortgage Corp. |
FNMA—Federal National Mortgage Association |
GNMA—Government National Mortgage Association |
REMIC—Real Estate Mortgage Investment Conduit |
SOFR—Secured Overnight Financing Rate |
SVC—El Salvador Colon |
UMBS—Uniform Mortgage Backed Securities |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay Short Term Bond Fund |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets and liabilities:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Long-Term Bonds | | | | | | | |
Asset-Backed Securities | $ — | | $ 15,005,654 | | $ — | | $ 15,005,654 |
Corporate Bonds | — | | 45,876,139 | | — | | 45,876,139 |
Foreign Government Bond | — | | 423,799 | | — | | 423,799 |
Mortgage-Backed Securities | — | | 12,812,988 | | — | | 12,812,988 |
U.S. Government & Federal Agencies | — | | 47,389,994 | | — | | 47,389,994 |
Total Long-Term Bonds | — | | 121,508,574 | | — | | 121,508,574 |
Exchange-Traded Fund | 4,078,488 | | — | | — | | 4,078,488 |
Total Investments in Securities | 4,078,488 | | 121,508,574 | | — | | 125,587,062 |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | 324,985 | | — | | — | | 324,985 |
Total Investments in Securities and Other Financial Instruments | $ 4,403,473 | | $ 121,508,574 | | $ — | | $ 125,912,047 |
Liability Valuation Inputs | | | | | | | |
Other Financial Instruments | | | | | | | |
Futures Contracts (b) | $ (349,656) | | $ — | | $ — | | $ (349,656) |
(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 (depreciation) as shown on the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $125,441,218) | $125,587,062 |
Cash | 1,442,230 |
Cash collateral on deposit at broker for futures contracts | 318,632 |
Receivables: | |
Interest | 773,857 |
Investment securities sold | 524,107 |
Fund shares sold | 368,613 |
Variation margin on futures contracts | 66,327 |
Other assets | 60,767 |
Total assets | 129,141,595 |
Liabilities |
Payables: | |
Investment securities purchased | 1,105,899 |
Fund shares redeemed | 217,004 |
Professional fees | 30,104 |
Manager (See Note 3) | 29,019 |
Transfer agent (See Note 3) | 25,818 |
Custodian | 18,494 |
NYLIFE Distributors (See Note 3) | 11,427 |
Shareholder communication | 4,053 |
Trustees | 69 |
Accrued expenses | 1,007 |
Distributions payable | 7,981 |
Total liabilities | 1,450,875 |
Net assets | $127,690,720 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 14,176 |
Additional paid-in-capital | 134,713,228 |
| 134,727,404 |
Total distributable earnings (loss) | (7,036,684) |
Net assets | $127,690,720 |
Class A | |
Net assets applicable to outstanding shares | $53,389,135 |
Shares of beneficial interest outstanding | 5,931,209 |
Net asset value per share outstanding | $ 9.00 |
Maximum sales charge (1.00% of offering price) | 0.09 |
Maximum offering price per share outstanding | $ 9.09 |
Investor Class | |
Net assets applicable to outstanding shares | $ 2,034,658 |
Shares of beneficial interest outstanding | 224,410 |
Net asset value per share outstanding | $ 9.07 |
Maximum sales charge (0.50% of offering price) | 0.05 |
Maximum offering price per share outstanding | $ 9.12 |
Class I | |
Net assets applicable to outstanding shares | $72,216,111 |
Shares of beneficial interest outstanding | 8,015,188 |
Net asset value and offering price per share outstanding | $ 9.01 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 50,816 |
Shares of beneficial interest outstanding | 5,607 |
Net asset value and offering price per share outstanding | $ 9.06 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay Short Term Bond Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $4,617,439 |
Dividends | 76,052 |
Total income | 4,693,491 |
Expenses | |
Manager (See Note 3) | 215,146 |
Distribution/Service—Class A (See Note 3) | 66,189 |
Distribution/Service—Investor Class (See Note 3) | 2,569 |
Distribution/Service—SIMPLE Class (See Note 3) | 118 |
Transfer agent (See Note 3) | 62,127 |
Professional fees | 43,377 |
Registration | 33,710 |
Custodian | 21,396 |
Shareholder communication | 7,199 |
Trustees | 2,130 |
Miscellaneous | 3,307 |
Total expenses before waiver/reimbursement | 457,268 |
Expense waiver/reimbursement from Manager (See Note 3) | (29,443) |
Net expenses | 427,825 |
Net investment income (loss) | 4,265,666 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Investment transactions | (94,833) |
Futures transactions | (373,413) |
Net realized gain (loss) | (468,246) |
Net change in unrealized appreciation (depreciation) on: | |
Investments | 2,015,754 |
Futures contracts | (97,952) |
Net change in unrealized appreciation (depreciation) | 1,917,802 |
Net realized and unrealized gain (loss) | 1,449,556 |
Net increase (decrease) in net assets resulting from operations | $5,715,222 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 4,265,666 | $ 6,036,001 |
Net realized gain (loss) | (468,246) | (3,714,299) |
Net change in unrealized appreciation (depreciation) | 1,917,802 | 1,143,583 |
Net increase (decrease) in net assets resulting from operations | 5,715,222 | 3,465,285 |
Distributions to shareholders: | | |
Class A | (1,333,651) | (2,107,106) |
Investor Class | (49,241) | (82,020) |
Class I | (2,897,222) | (3,851,715) |
SIMPLE Class | (1,153) | (1,393) |
Total distributions to shareholders | (4,281,267) | (6,042,234) |
Capital share transactions: | | |
Net proceeds from sales of shares | 35,000,512 | 162,985,768 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 4,245,120 | 5,982,196 |
Cost of shares redeemed | (89,068,934) | (80,460,861) |
Increase (decrease) in net assets derived from capital share transactions | (49,823,302) | 88,507,103 |
Net increase (decrease) in net assets | (48,389,347) | 85,930,154 |
Net Assets |
Beginning of period | 176,080,067 | 90,149,913 |
End of period | $127,690,720 | $176,080,067 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay Short Term Bond Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.94 | | $ 9.03 | | $ 9.78 | | $ 10.72 | | $ 10.91 | | $ 10.09 |
Net investment income (loss) | 0.21(a) | | 0.36(a) | | 0.14(a) | | 0.07(a) | | 0.15 | | 0.27 |
Net realized and unrealized gain (loss) | 0.08 | | (0.10) | | (0.74) | | (0.01) | | 0.05 | | 0.82 |
Total from investment operations | 0.29 | | 0.26 | | (0.60) | | 0.06 | | 0.20 | | 1.09 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.23) | | (0.35) | | (0.13) | | (0.08) | | (0.17) | | (0.27) |
From net realized gain on investments | — | | — | | (0.02) | | (0.92) | | (0.22) | | — |
Total distributions | (0.23) | | (0.35) | | (0.15) | | (1.00) | | (0.39) | | (0.27) |
Net asset value at end of period | $ 9.00 | | $ 8.94 | | $ 9.03 | | $ 9.78 | | $ 10.72 | | $ 10.91 |
Total investment return (b) | 3.24% | | 2.92% | | (6.08)% | | 0.59% | | 2.00% | | 10.77% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 4.76%†† | | 3.94% | | 1.45% | | 0.70% | | 1.32% | | 2.50% |
Net expenses (c) | 0.70%†† | | 0.75% | | 0.76% | | 0.72% | | 0.72% | | 0.60% |
Expenses (before waiver/reimbursement) (c) | 0.70%†† | | 0.75% | | 0.88% | | 0.77% | | 0.75% | | 0.60% |
Portfolio turnover rate | 194% | | 495%(d) | | 279%(d) | | 236% | | 299%(d) | | 75%(d) |
Net assets at end of period (in 000’s) | $ 53,389 | | $ 54,946 | | $ 54,971 | | $ 60,444 | | $ 43,452 | | $ 23,771 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rates not including mortgage dollar rolls were 495%, 271%, 298%, and 72% for the years ended October 31, 2023, 2022, 2020 and 2019, respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.01 | | $ 9.09 | | $ 9.85 | | $ 10.79 | | $ 10.97 | | $ 10.15 |
Net investment income (loss) | 0.21(a) | | 0.34(a) | | 0.12(a) | | 0.05(a) | | 0.13 | | 0.23 |
Net realized and unrealized gain (loss) | 0.07 | | (0.08) | | (0.74) | | — | | 0.06 | | 0.82 |
Total from investment operations | 0.28 | | 0.26 | | (0.62) | | 0.05 | | 0.19 | | 1.05 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.22) | | (0.34) | | (0.12) | | (0.07) | | (0.15) | | (0.23) |
From net realized gain on investments | — | | — | | (0.02) | | (0.92) | | (0.22) | | — |
Total distributions | (0.22) | | (0.34) | | (0.14) | | (0.99) | | (0.37) | | (0.23) |
Net asset value at end of period | $ 9.07 | | $ 9.01 | | $ 9.09 | | $ 9.85 | | $ 10.79 | | $ 10.97 |
Total investment return (b) | 3.10% | | 2.83% | | (6.28)% | | 0.44% | | 1.76% | | 10.46% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 4.54%†† | | 3.76% | | 1.27% | | 0.51% | | 1.18% | | 2.18% |
Net expenses (c) | 0.92%†† | | 0.92% | | 0.92% | | 0.92% | | 0.92% | | 0.92% |
Expenses (before waiver/reimbursement) (c) | 1.24%†† | | 1.27% | | 1.32% | | 1.29% | | 1.22% | | 1.12% |
Portfolio turnover rate | 194% | | 495%(d) | | 279%(d) | | 236% | | 299%(d) | | 75%(d) |
Net assets at end of period (in 000's) | $ 2,035 | | $ 2,108 | | $ 2,396 | | $ 3,124 | | $ 3,376 | | $ 3,433 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rates not including mortgage dollar rolls were 495%, 271%, 298%, and 72% for the years ended October 31, 2023, 2022, 2020 and 2019, respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay Short Term Bond Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 8.95 | | $ 9.04 | | $ 9.79 | | $ 10.74 | | $ 10.92 | | $ 10.10 |
Net investment income (loss) | 0.23(a) | | 0.41(a) | | 0.16(a) | | 0.10(a) | | 0.25 | | 0.29 |
Net realized and unrealized gain (loss) | 0.07 | | (0.12) | | (0.72) | | (0.01) | | (0.01) | | 0.82 |
Total from investment operations | 0.30 | | 0.29 | | (0.56) | | 0.09 | | 0.24 | | 1.11 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.24) | | (0.38) | | (0.17) | | (0.12) | | (0.20) | | (0.29) |
From net realized gain on investments | — | | — | | (0.02) | | (0.92) | | (0.22) | | — |
Total distributions | (0.24) | | (0.38) | | (0.19) | | (1.04) | | (0.42) | | (0.29) |
Net asset value at end of period | $ 9.01 | | $ 8.95 | | $ 9.04 | | $ 9.79 | | $ 10.74 | | $ 10.92 |
Total investment return (b) | 3.39% | | 3.27% | | (5.74)% | | 0.87% | | 2.29% | | 11.14% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 5.05%†† | | 4.50% | | 1.64% | | 1.02% | | 1.78% | | 2.77% |
Net expenses (c) | 0.40%†† | | 0.40% | | 0.40% | | 0.40% | | 0.40% | | 0.35% |
Expenses (before waiver/reimbursement) (c) | 0.45%†† | | 0.48% | | 0.60% | | 0.52% | | 0.48% | | 0.35% |
Portfolio turnover rate | 194% | | 495%(d) | | 279%(d) | | 236% | | 299%(d) | | 75%(d) |
Net assets at end of period (in 000’s) | $ 72,216 | | $ 118,981 | | $ 32,750 | | $ 45,291 | | $ 33,330 | | $ 290,411 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rates not including mortgage dollar rolls were 495%, 271%, 298%, and 72% for the years ended October 31, 2023, 2022, 2020 and 2019, respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, | | August 31, 2020^ through October 31, |
SIMPLE Class | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 9.00 | | $ 9.09 | | $ 9.85 | | $ 10.79 | | $ 10.82** |
Net investment income (loss) (a) | 0.21 | | 0.33 | | 0.11 | | 0.03 | | 0.01 |
Net realized and unrealized gain (loss) | 0.07 | | (0.10) | | (0.75) | | (0.01) | | (0.03) |
Total from investment operations | 0.28 | | 0.23 | | (0.64) | | 0.02 | | (0.02) |
Less distributions: | | | | | | | | | |
From net investment income | (0.22) | | (0.32) | | (0.10) | | (0.04) | | (0.01) |
From net realized gain on investments | — | | — | | (0.02) | | (0.92) | | — |
Total distributions | (0.22) | | (0.32) | | (0.12) | | (0.96) | | (0.01) |
Net asset value at end of period | $ 9.06 | | $ 9.00 | | $ 9.09 | | $ 9.85 | | $ 10.79 |
Total investment return (b) | 3.10% | | 2.56% | | (6.49)% | | 0.18% | | (0.17)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 4.52%†† | | 3.65% | | 1.16% | | 0.27% | | 0.38%†† |
Net expenses (c) | 0.94%†† | | 1.08% | | 1.17% | | 1.17% | | 1.17%†† |
Expenses (before waiver/reimbursement) (c) | 0.94%†† | | 1.08% | | 1.56% | | 1.54% | | 1.55%†† |
Portfolio turnover rate | 194% | | 495%(d) | | 279%(d) | | 236% | | 299%(d) |
Net assets at end of period (in 000’s) | $ 51 | | $ 44 | | $ 32 | | $ 25 | | $ 25 |
* | Unaudited. |
^ | Inception date. |
** | Based on the net asset value of Investor Class as of August 31, 2020. |
†† | 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. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The portfolio turnover rate not including mortgage dollar rolls was 495%, 271% and 298% for the year ended October 31, 2023, 2022 and 2020 respectively. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay Short Term Bond Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Short Term Bond Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | January 2, 2004 |
Investor Class | February 28, 2008 |
Class I | January 2, 1991 |
SIMPLE Class | August 31, 2020 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 0.50% may be imposed on certain redemptions made within 12 months of the date of purchase on shares that were purchased without an initial sales charge. Class I and SIMPLE Class shares are offered at NAV without a sales charge. Additionally, Investor Class shares may convert automatically to Class A shares. SIMPLE Class shares convert to Class A shares, or Investor Class shares if you are not eligible to hold Class A shares, at the end of the calendar quarter, ten years after the date they were purchased. Share class conversions are based on the relevant NAVs of the two classes at the time of the conversion, and no sales load or other charge is imposed. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class A, Investor Class and SIMPLE Class 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 current income consistent with capital preservation.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that
Notes to Financial Statements (Unaudited) (continued)
establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any
restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Exchange-traded funds (“ETFs”) are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. These securities are generally categorized as Level 1 in the hierarchy.
Debt securities (other than convertible and municipal bonds) are valued at the evaluated bid prices (evaluated mean prices in the case of convertible and municipal bonds) supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent’s good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants’ assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values at the regular close of trading of the Exchange on each
24 | MainStay Short Term Bond Fund |
valuation date. Debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Debt securities, including corporate bonds, U.S. government and federal agency bonds, municipal bonds, foreign bonds, convertible bonds, asset-backed securities and mortgage-backed securities are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 from net investment income, if any, at least monthly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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 and includes any realized gains and losses from repayments of principal on mortgage-backed securities. Distributions received from real
estate investment trusts may be classified as dividends, capital gains and/or return of capital. Discounts and premiums on securities purchased, other than temporary cash investments that mature in 60 days or less at the time of purchase, for the Fund are accreted and amortized, respectively, on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 risks such as market price risk, leverage risk, liquidity risk, counterparty risk, operational risk, legal risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation 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 or futures commission merchant 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.
Notes to Financial Statements (Unaudited) (continued)
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. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. 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 the entire margin owed to the Fund, potentially resulting in a loss. The Fund may invest in futures contracts to seek enhanced returns or to reduce the risk of loss by hedging certain of its holdings. The Fund's investment in futures contracts and other derivatives may increase the volatility of the Fund's NAVs and may result in a 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(I) Dollar Rolls. The Fund may enter into dollar roll 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 Fund generally transfers MBS where the MBS are "to be announced," therefore, the Fund accounts for these transactions as purchases and sales.
When accounted for as purchase and sales, the securities sold in connection with the dollar rolls 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. Dollar rolls may be renewed without physical delivery of the securities subject to the contract. Dollar roll transactions involve certain risks, including the risk that the securities returned to the Fund at the end of the roll period, while substantially similar, could be inferior to what was initially sold to the counterparty.
(J) Debt Securities Risk. Investments in the Fund are not guaranteed, even though some of the Fund’s underlying investments are guaranteed by the U.S. government or its agencies or instrumentalities. The principal risk of mortgage-related and asset-backed securities is that the underlying debt may be prepaid ahead of schedule, if interest rates fall, thereby reducing the value of the Fund’s investment. If interest rates rise, less of the debt may be prepaid and the Fund may lose money. The Fund is subject to interest-rate risk and its holdings in bonds can lose principal value when interest rates rise. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner.
The Fund may invest in foreign debt securities, which carry certain risks that are in addition to the usual risks inherent in domestic debt securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult in value. These risks are likely to be greater in emerging markets than in developed markets. The ability of issuers of securities held by the
26 | MainStay Short Term Bond Fund |
Fund to meet their obligations may be affected by, among other things, 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 that may 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. The Manager believes 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.
(L) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures related to 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.
The Fund entered into futures contracts to hedge against anticipated changes in interest rates that might otherwise have an adverse effect upon the value of the Fund's securities as well as help manage the duration and yield curve positioning of the portfolio. These derivatives are not accounted for as hedging instruments.
Fair value of derivative instruments as of April 30, 2024:
Asset Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized appreciation on futures contracts (a) | $324,985 | $324,985 |
Total Fair Value | $324,985 | $324,985 |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Liability Derivatives | Interest Rate Contracts Risk | Total |
Futures Contracts - Net Assets—Net unrealized depreciation on futures contracts (a) | $(349,656) | $(349,656) |
Total Fair Value | $(349,656) | $(349,656) |
(a) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. Only current day’s variation margin is 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, 2024:
Net Realized Gain (Loss) from: | Interest Rate Contracts Risk | Total |
Futures Transactions | $(373,413) | $(373,413) |
Total Net Realized Gain (Loss) | $(373,413) | $(373,413) |
Net Change in Unrealized Appreciation (Depreciation) | Interest Rate Contracts Risk | Total |
Futures Contracts | $(97,952) | $(97,952) |
Total Net Change in Unrealized Appreciation (Depreciation) | $(97,952) | $(97,952) |
Average Notional Amount | Total |
Futures Contracts Long | $ 47,095,014 |
Futures Contracts Short | $(17,794,439) |
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 Fund's Manager pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. NYL Investors LLC ("NYL Investors" or ''Subadvisor''), a registered investment adviser and a direct, wholly-owned subsidiary of New York Life, serves as the 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 ("Subadvisory Agreement") between New York Life Investments and NYL Investors, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.25% up to $1 billion and 0.20% in excess of $1 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.25% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses
Notes to Financial Statements (Unaudited) (continued)
(excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 0.82%; Investor Class, 0.92%; Class I, 0.40% and SIMPLE Class, 1.17%. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $215,146 and waived fees and/or reimbursed expenses in the amount of $29,443 and paid the Subadvisor fees in the amount of $92,852.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the SIMPLE Class Plan, SIMPLE Class shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the SIMPLE Class shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the SIMPLE Class shares, for a total 12b-1 fee of 0.50%. Class I shares are not subject to a distribution and/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 initial sales charges retained on sales of Investor Class shares during the six-month period ended April 30, 2024, was $75.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A shares during the six-month period ended April 30, 2024, of $6,592.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $17,361 | $— |
Investor Class | 6,315 | — |
Class I | 38,436 | — |
SIMPLE Class | 15 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
28 | MainStay Short Term Bond Fund |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $125,498,237 | $509,301 | $(420,476) | $88,825 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $6,531,586, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $2,263 | $4,269 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $6,042,234 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily
Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of U.S. government securities were $217,174 and $218,871, respectively. Purchases and sales of securities, other than U.S. government securities and short-term securities, were $49,750 and $69,530, respectively.
Notes to Financial Statements (Unaudited) (continued)
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 2,716,549 | $ 24,677,393 |
Shares issued to shareholders in reinvestment of distributions | 145,119 | 1,315,007 |
Shares redeemed | (3,081,887) | (27,946,734) |
Net increase (decrease) in shares outstanding before conversion | (220,219) | (1,954,334) |
Shares converted into Class A (See Note 1) | 8,284 | 75,061 |
Net increase (decrease) | (211,935) | $ (1,879,273) |
Year ended October 31, 2023: | | |
Shares sold | 3,939,187 | $ 35,697,507 |
Shares issued to shareholders in reinvestment of distributions | 229,448 | 2,076,463 |
Shares redeemed | (4,130,887) | (37,468,141) |
Net increase (decrease) in shares outstanding before conversion | 37,748 | 305,829 |
Shares converted into Class A (See Note 1) | 16,580 | 150,532 |
Net increase (decrease) | 54,328 | $ 456,361 |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 19,621 | $ 179,747 |
Shares issued to shareholders in reinvestment of distributions | 5,274 | 48,143 |
Shares redeemed | (26,294) | (240,620) |
Net increase (decrease) in shares outstanding before conversion | (1,399) | (12,730) |
Shares converted from Investor Class (See Note 1) | (8,229) | (75,061) |
Net increase (decrease) | (9,628) | $ (87,791) |
Year ended October 31, 2023: | | |
Shares sold | 35,097 | $ 320,914 |
Shares issued to shareholders in reinvestment of distributions | 8,804 | 80,253 |
Shares redeemed | (56,997) | (521,066) |
Net increase (decrease) in shares outstanding before conversion | (13,096) | (119,899) |
Shares converted from Investor Class (See Note 1) | (16,468) | (150,532) |
Net increase (decrease) | (29,564) | $ (270,431) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,115,559 | $ 10,138,286 |
Shares issued to shareholders in reinvestment of distributions | 317,357 | 2,880,817 |
Shares redeemed | (6,705,681) | (60,881,560) |
Net increase (decrease) | (5,272,765) | $ (47,862,457) |
Year ended October 31, 2023: | | |
Shares sold | 13,917,702 | $126,956,359 |
Shares issued to shareholders in reinvestment of distributions | 423,006 | 3,824,087 |
Shares redeemed | (4,676,682) | (42,471,634) |
Net increase (decrease) | 9,664,026 | $ 88,308,812 |
|
SIMPLE Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 556 | $ 5,086 |
Shares issued to shareholders in reinvestment of distributions | 127 | 1,153 |
Shares redeemed | (2) | (20) |
Net increase (decrease) | 681 | $ 6,219 |
Year ended October 31, 2023: | | |
Shares sold | 1,204 | $ 10,988 |
Shares issued to shareholders in reinvestment of distributions | 153 | 1,393 |
Shares redeemed | (2) | (20) |
Net increase (decrease) | 1,355 | $ 12,361 |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
30 | MainStay Short Term Bond Fund |
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to 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 NYL Investors LLC (“NYL Investors”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and NYL Investors in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and NYL Investors in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or NYL Investors that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, NYL Investors personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and NYL Investors; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and NYL Investors; (iii) the costs of the services provided, and profits realized, by New York Life Investments and NYL Investors with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and NYL Investors. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and NYL Investors resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and NYL Investors
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by NYL Investors, evaluating the performance of NYL Investors, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of NYL Investors and ongoing analysis of, and interactions with, NYL Investors with respect to, among other things, the Fund’s investment performance and risks as well as NYL Investors’ investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that NYL Investors provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated NYL Investors’ experience and performance in serving as subadvisor to the Fund and advising other portfolios and NYL Investors’ track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at NYL Investors. The Board considered New York Life Investments’ and NYL Investors’ overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and NYL Investors and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered NYL Investors’ ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and NYL Investors regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided
32 | MainStay Short Term Bond Fund |
to the Board throughout the year. These reports include, among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of NYL Investors and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and NYL Investors
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because NYL Investors is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and NYL Investors in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and NYL Investors, and profitability of New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including NYL Investors’, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and NYL Investors and
acknowledged that New York Life Investments and NYL Investors must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and NYL Investors to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund, including reputational and other indirect benefits. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including NYL Investors, due to their relationships with
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including NYL Investors, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to NYL Investors is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and NYL Investors on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the
investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
34 | MainStay Short Term Bond Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
36 | MainStay Short Term Bond Fund |
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022113 MS081-24 | MSSTB10-06/24 |
(NYLIM) NL228
MainStay U.S. Government Liquidity Fund
Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Investors should refer to the Fund’s Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Prospectus contains this and other information about the Fund. You may obtain copies of the Fund’s Prospectus and Statement of Additional Information, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. Please read the Fund’s Prospectus carefully before investing.
Cost in Dollars of a $1,000 Investment in MainStay U.S. Government Liquidity Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class I Shares | $1,000.00 | $1,026.40 | $0.71 | $1,024.17 | $0.70 | 0.14% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
4 | MainStay U.S. Government Liquidity Fund |
Portfolio Composition as of April 30, 2024 (Unaudited)
Other Assets, Less Liabilities | 0.1 |
See Portfolio of Investments beginning on page 6 for specific holdings within these categories. The Fund's holdings are subject to change.
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | | Value |
Short-Term Investments 99.9% |
U.S. Treasury Debt 99.9% |
U.S. Treasury Bills (a) | | | |
5.288%, due 5/28/24 | $ 65,396,000 | | $ 65,138,773 |
5.297%, due 5/21/24 | 285,118,000 | | 284,285,519 |
5.308%, due 6/18/24 | 227,688,000 | | 226,089,085 |
5.309%, due 5/14/24 | 94,443,000 | | 94,263,383 |
5.31%, due 6/11/24 | 51,030,000 | | 50,723,866 |
5.312%, due 6/4/24 | 209,687,000 | | 208,643,373 |
5.315%, due 5/7/24 | 13,151,000 | | 13,139,447 |
Total Short-Term Investments (Cost $942,283,446) | 99.9% | | 942,283,446 |
Other Assets, Less Liabilities | 0.1 | | 605,143 |
Net Assets | 100.0% | | $ 942,888,589 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | Interest rate shown represents yield to maturity. |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Short-Term Investments | | | | | | | |
U.S. Treasury Debt | $ — | | $ 942,283,446 | | $ — | | $ 942,283,446 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
6 | MainStay U.S. Government Liquidity Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (amortized cost $942,283,446) | $942,283,446 |
Cash | 770,290 |
Other assets | 5,148 |
Total assets | 943,058,884 |
Liabilities |
Payables: | |
Manager (See Note 3) | 98,202 |
Professional fees | 46,373 |
Custodian | 10,763 |
Trustees | 779 |
Accrued expenses | 14,178 |
Total liabilities | 170,295 |
Net assets | $942,888,589 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 942,815 |
Additional paid-in-capital | 941,970,199 |
| 942,913,014 |
Total distributable earnings (loss) | (24,425) |
Net assets | $942,888,589 |
Class I | |
Net assets applicable to outstanding shares | $942,888,589 |
Shares of beneficial interest outstanding | 942,814,923 |
Net asset value 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.
7
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $27,310,486 |
Expenses | |
Manager (See Note 3) | 607,914 |
Professional fees | 62,735 |
Trustees | 12,852 |
Custodian | 10,243 |
Shareholder communication | 2,042 |
Miscellaneous | 8,938 |
Total expenses | 704,724 |
Net investment income (loss) | 26,605,762 |
Realized Gain (Loss) |
Net realized gain (loss) on investments | 2,520 |
Net increase (decrease) in net assets resulting from operations | $26,608,282 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
8 | MainStay U.S. Government Liquidity Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 26,605,762 | $ 51,428,827 |
Net realized gain (loss) | 2,520 | (16,485) |
Net increase (decrease) in net assets resulting from operations | 26,608,282 | 51,412,342 |
Distributions to shareholders | (26,605,762) | (51,428,827) |
Capital share transactions: | | |
Net proceeds from sales of shares | 5,685,728,257 | 10,295,597,780 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 26,365,844 | 50,676,607 |
Cost of shares redeemed | (5,778,029,608) | (10,673,093,594) |
Increase (decrease) in net assets derived from capital share transactions | (65,935,507) | (326,819,207) |
Net increase (decrease) in net assets | (65,932,987) | (326,835,692) |
Net Assets |
Beginning of period | 1,008,821,576 | 1,335,657,268 |
End of period | $ 942,888,589 | $ 1,008,821,576 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 1.00 | | $ 1.00 | | $ 1.00 | | $ 1.00 | | $ 1.00 | | $ 1.00 |
Net investment income (loss) | 0.03 | | 0.04 | | 0.01 | | 0.00‡ | | 0.01 | | 0.02 |
Total from investment operations | 0.03 | | 0.04 | | 0.01 | | 0.00‡ | | 0.01 | | 0.02 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.03) | | (0.04) | | (0.01) | | (0.00)‡ | | (0.01) | | (0.02) |
Net asset value at end of period | $ 1.00 | | $ 1.00 | | $ 1.00 | | $ 1.00 | | $ 1.00 | | $ 1.00 |
Total investment return (a) | 2.64% | | 4.59% | | 0.76% | | 0.01% | | 0.55% | | 2.14% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 5.25%†† | | 4.47% | | 0.72% | | 0.01% | | 0.62% | | 2.11% |
Net expenses | 0.14%†† | | 0.14% | | 0.11% | | 0.03% | | 0.13% | | 0.15% |
Expenses (before waiver/reimbursement) | 0.14%†† | | 0.14% | | 0.14% | | 0.14% | | 0.13% | | 0.15% |
Net assets at end of period (in 000’s) | $ 942,889 | | $ 1,008,822 | | $ 1,335,657 | | $ 2,520,059 | | $ 639,101 | | $ 914,477 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total 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.
10 | MainStay U.S. Government Liquidity Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay U.S. Government Liquidity Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class I | July 2, 2018 |
Shares of the Fund are offered and are redeemed at a price equal to their net asset value (“NAV”) per share. No sales or redemption charge is applicable to the purchase or redemption of the Fund’s shares.
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 is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 Shares. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
(B) Securities Valuation. Securities are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate per the requirements 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.
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is
responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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
Notes to Financial Statements (Unaudited) (continued)
own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
Securities valued at amortized cost are not obtained from a quoted price in an active market and are generally categorized as Level 2 in the hierarchy. The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. As of April 30, 2024, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the
Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare dividends from net investment income, if any, daily and intends to
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pay them at least monthly and declares and pays distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. The straight-line method approximates the effective interest rate for short-term investments.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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) 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, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Debt Securities Risk. The Fund’s investments may include securities such as variable rate notes and floaters. If expectations about changes in interest rates, or assessments of an issuer’s credit worthiness or market conditions are incorrect, investments in these types of securities could lose money for the Fund. The ability of issuers of debt securities, including the U.S. government, held by the Fund to meet their obligations may be affected by, among other things, economic or political developments in a specific country, industry or region.
(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 that may 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. The Manager believes 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 Investments, 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. NYL Investors LLC ("NYL Investors" or ''Subadvisor''), a registered investment adviser and a direct, wholly-owned subsidiary of New York Life, serves as the 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 ("Subadvisory Agreement") between New York Life Investments and NYL Investors, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.12% of the Fund's average daily net assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) for Class I shares do not exceed 0.15% of average daily net assets. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
New York Life Investments may voluntarily waive fees or reimburse expenses of the Fund to the extent it deems appropriate to enhance the yield of the Fund’s during periods when expenses have a significant impact on the yield 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.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $607,914 and paid the Subadvisor fees in the amount of $303,957.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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
Notes to Financial Statements (Unaudited) (continued)
NAVs of the Fund, maintaining the general ledger and sub-ledger accounts for the calculation of the Fund's NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(B) 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 SS&C Global Investor & Distributor Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025 and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, the Fund did not record any transfer agent expenses.
Note 4-Federal Income Tax
The amortized cost also represents the aggregate cost for federal income tax purposes.
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $82,338, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $82 | $— |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $51,428,827 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class I (at $1 per share) | Shares |
Six-month period ended April 30, 2024: | |
Shares sold | 5,685,728,257 |
Shares issued to shareholders in reinvestment of distributions | 26,365,844 |
Shares redeemed | (5,778,029,608) |
Net increase (decrease) | (65,935,507) |
Year ended October 31, 2023: | |
Shares sold | 10,295,597,780 |
Shares issued to shareholders in reinvestment of distributions | 50,676,607 |
Shares redeemed | (10,673,093,594) |
Net increase (decrease) | (326,819,207) |
Note 7–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 8–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for
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possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay U.S. Government Liquidity Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”) and the Subadvisory Agreement between New York Life Investments and NYL Investors LLC (“NYL Investors”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and NYL Investors in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and NYL Investors in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by New York Life Investments. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or NYL Investors that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees. In addition, the Board took into account other information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and NYL Investors; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of New York Life Investments and NYL Investors; (iii) the costs of the services provided, and profits realized, by New York Life Investments and NYL Investors with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by New York Life Investments. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and NYL Investors. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and NYL Investors resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each
16 | MainStay U.S. Government Liquidity Fund |
Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and NYL Investors
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by NYL Investors, evaluating the performance of NYL Investors, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of NYL Investors and ongoing analysis of, and interactions with, NYL Investors with respect to, among other things, the Fund’s investment performance and risks as well as NYL Investors’ investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York
Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that NYL Investors provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated NYL Investors’ experience and performance in serving as subadvisor to the Fund and advising other portfolios and NYL Investors’ track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at NYL Investors. The Board considered New York Life Investments’ and NYL Investors’ overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and NYL Investors and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered NYL Investors’ ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and NYL Investors regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered the Fund’s investment objective, strategies and risks. The Board also considered performance information relating to the MainStay money market fund strategies subadvised by NYL Investors and 7-day yield information for the Fund.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and NYL Investors
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because NYL Investors is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and NYL Investors in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and NYL Investors, and profitability of New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including NYL Investors’, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and NYL Investors and acknowledged that New York Life Investments and NYL Investors must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and NYL Investors to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund, including reputational and other
indirect benefits, as well as additional revenue that may be generated as a result of other funds in the MainStay Group of Funds choosing to invest uninvested cash in the Fund rather than investment options outside of the MainStay Group of Funds.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including NYL Investors, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including NYL Investors, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to NYL Investors is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by New York Life Investments on the fees and expenses of similar mutual funds managed by other investment advisers, including New York Life Investments’ previous statement that some similar funds managed by other investment advisers are not charged a management fee. The Board reviewed the group of peer funds constructed by New York Life Investments for comparative purposes. In addition, the Board considered information provided by New York Life Investments and NYL Investors on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board noted that New York Life Investments, in certain years, has provided support to the Fund in the form of voluntary waivers and/or reimbursements of fees and expenses in order to maintain a positive yield. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
18 | MainStay U.S. Government Liquidity Fund |
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting the SEC’s website at www.sec.gov.
Shareholder Reports and Quarterly Portfolio Disclosure
The Fund is required to file a Form N-MFP every month disclosing its portfolio holdings. The Fund's Form N-MFP is available free of charge upon request by calling New York Life Investments at 800-624-6782.
20 | MainStay U.S. Government Liquidity Fund |
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved. | MSUGL10a-06/24 |
MainStay WMC Growth Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio3 |
Class A Shares | Maximum 5.50% Initial Sales Charge | With sales charges | 8/7/2006 | 18.21% | 22.63% | 9.41% | 10.31% | 1.05% |
| | Excluding sales charges | | 25.09 | 29.76 | 10.66 | 10.94 | 1.05 |
Investor Class Shares4 | Maximum 5.00% Initial Sales Charge | With sales charges | 1/18/2013 | 18.66 | 22.93 | 9.10 | 10.04 | 1.50 |
| | Excluding sales charges | | 24.91 | 29.40 | 10.35 | 10.66 | 1.50 |
Class B Shares5 | Maximum 5.00% CDSC | With sales charges | 1/18/2013 | 19.44 | 23.44 | 9.23 | 9.84 | 2.25 |
| if Redeemed Within First Six Years of Purchase | Excluding sales charges | | 24.44 | 28.44 | 9.51 | 9.84 | 2.25 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 1/18/2013 | 23.45 | 27.45 | 9.52 | 9.84 | 2.25 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 24.45 | 28.45 | 9.52 | 9.84 | 2.25 |
Class I Shares | No Sales Charge | | 11/2/2009 | 25.27 | 30.14 | 10.97 | 11.23 | 0.80 |
Class R6 Shares | No Sales Charge | | 4/26/2021 | 25.29 | 30.16 | N/A | 2.14 | 0.73 |
1. | Effective July 29, 2016, the Fund replaced its subadvisor and modified its principal investment strategies. The Fund's subadvisor changed effective January 1, 2018 due to an organizational restructuring whereby all investment personnel of Cornerstone Capital Management Holdings LLC, the former subadvisor, transitioned to MacKay Shields LLC. Effective March 5, 2021, the Fund replaced its subadvisor and modified its principal investment strategies. The past performance in the bar chart and table prior to that date reflects the Fund's prior subadvisors and principal investment strategies. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
5. | Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Russell 3000® Index2 | 21.09% | 22.30% | 12.43% | 11.81% |
Russell 1000® Growth Index3 | 23.56 | 31.80 | 16.46 | 15.48 |
Morningstar Large Growth Category Average4 | 24.13 | 29.19 | 12.82 | 12.85 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index as the Fund’s primary broad-based securities market index as a replacement for the Russell 1000® Growth Index. 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. |
3. | The Russell 1000® Growth Index, which is generally representative of the market sectors or types of investments in which the Fund invests, is a broad-based benchmark that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. |
4. | The Morningstar Large Growth Category Average is representative of funds that invest primarily in big U.S. companies that are projected to grow faster than other large-cap stocks. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap. Growth is defined based on fast growth and high valuations. Most of these funds focus on companies in rapidly expanding industries. Results are based on average total returns of similar funds with all dividends 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 WMC Growth Fund |
Cost in Dollars of a $1,000 Investment in MainStay WMC 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,250.90 | $ 5.76 | $1,019.74 | $ 5.17 | 1.03% |
Investor Class Shares | $1,000.00 | $1,249.10 | $ 7.38 | $1,018.30 | $ 6.62 | 1.32% |
Class B Shares | $1,000.00 | $1,244.40 | $11.55 | $1,014.57 | $10.37 | 2.07% |
Class C Shares | $1,000.00 | $1,244.50 | $11.55 | $1,014.57 | $10.37 | 2.07% |
Class I Shares | $1,000.00 | $1,252.70 | $ 4.20 | $1,021.13 | $ 3.77 | 0.75% |
Class R6 Shares | $1,000.00 | $1,252.90 | $ 4.03 | $1,021.28 | $ 3.62 | 0.72% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
Software | 16.7% |
Semiconductors & Semiconductor Equipment | 14.4 |
Interactive Media & Services | 11.5 |
Broadline Retail | 7.1 |
Capital Markets | 6.4 |
Technology Hardware, Storage & Peripherals | 5.0 |
Financial Services | 4.7 |
Pharmaceuticals | 4.4 |
Hotels, Restaurants & Leisure | 3.6 |
Aerospace & Defense | 3.0 |
Entertainment | 2.9 |
IT Services | 2.7 |
Health Care Providers & Services | 2.2 |
Specialty Retail | 1.8 |
Life Sciences Tools & Services | 1.8 |
Commercial Services & Supplies | 1.7% |
Ground Transportation | 1.7 |
Health Care REITs | 1.4 |
Insurance | 1.2 |
Consumer Finance | 1.1 |
Health Care Equipment & Supplies | 1.1 |
Professional Services | 1.0 |
Specialized REITs | 0.9 |
Biotechnology | 0.9 |
Machinery | 0.2 |
Short–Term Investment | 0.4 |
Other Assets, Less Liabilities | 0.2 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Microsoft Corp. |
2. | Alphabet, Inc., Class C |
3. | Amazon.com, Inc. |
4. | NVIDIA Corp. |
5. | Apple, Inc. |
6. | Meta Platforms, Inc., Class A |
7. | Eli Lilly & Co. |
8. | Mastercard, Inc., Class A |
9. | UnitedHealth Group, Inc. |
10. | Marvell Technology, Inc. |
8 | MainStay WMC Growth Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 99.4% |
Aerospace & Defense 3.0% |
Airbus SE, ADR | 131,187 | $ 5,383,915 |
General Dynamics Corp. | 33,887 | 9,728,619 |
General Electric Co. | 63,805 | 10,324,925 |
| | 25,437,459 |
Biotechnology 0.9% |
Vertex Pharmaceuticals, Inc. (a) | 19,173 | 7,531,346 |
Broadline Retail 7.1% |
Amazon.com, Inc. (a) | 338,813 | 59,292,275 |
Capital Markets 6.4% |
Ares Management Corp. | 78,374 | 10,430,796 |
KKR & Co., Inc. | 99,246 | 9,236,825 |
Morgan Stanley | 77,340 | 7,025,565 |
MSCI, Inc. | 14,834 | 6,909,529 |
S&P Global, Inc. | 31,423 | 13,066,626 |
Tradeweb Markets, Inc., Class A | 65,853 | 6,697,909 |
| | 53,367,250 |
Commercial Services & Supplies 1.7% |
Copart, Inc. (a) | 172,899 | 9,390,145 |
Waste Connections, Inc. | 28,138 | 4,560,888 |
| | 13,951,033 |
Consumer Finance 1.1% |
American Express Co. | 40,505 | 9,479,385 |
Entertainment 2.9% |
Netflix, Inc. (a) | 27,829 | 15,323,761 |
Spotify Technology SA (a) | 31,176 | 8,742,997 |
| | 24,066,758 |
Financial Services 4.7% |
Corpay, Inc. (a) | 41,998 | 12,689,276 |
Mastercard, Inc., Class A | 48,968 | 22,094,361 |
Visa, Inc., Class A | 18,406 | 4,944,036 |
| | 39,727,673 |
Ground Transportation 1.7% |
Uber Technologies, Inc. (a) | 208,385 | 13,809,674 |
Health Care Equipment & Supplies 1.1% |
Boston Scientific Corp. (a) | 75,167 | 5,402,252 |
Stryker Corp. | 11,909 | 4,007,379 |
| | 9,409,631 |
| Shares | Value |
|
Health Care Providers & Services 2.2% |
UnitedHealth Group, Inc. | 38,356 | $ 18,552,797 |
Health Care REITs 1.4% |
Welltower, Inc. | 119,113 | 11,349,087 |
Hotels, Restaurants & Leisure 3.6% |
Airbnb, Inc., Class A (a) | 35,207 | 5,582,774 |
Chipotle Mexican Grill, Inc. (a) | 1,742 | 5,504,023 |
DraftKings, Inc., Class A (a) | 217,262 | 9,029,409 |
Hilton Worldwide Holdings, Inc. | 51,812 | 10,221,471 |
| | 30,337,677 |
Insurance 1.2% |
Progressive Corp. (The) | 49,235 | 10,253,189 |
Interactive Media & Services 11.5% |
Alphabet, Inc., Class C (a) | 372,883 | 61,391,457 |
Meta Platforms, Inc., Class A | 77,592 | 33,377,751 |
ZoomInfo Technologies, Inc. (a) | 109,117 | 1,730,595 |
| | 96,499,803 |
IT Services 2.7% |
Gartner, Inc. (a) | 14,419 | 5,949,135 |
MongoDB, Inc. (a) | 27,780 | 10,144,700 |
Shopify, Inc., Class A (a) | 87,749 | 6,159,980 |
| | 22,253,815 |
Life Sciences Tools & Services 1.8% |
Danaher Corp. | 49,643 | 12,242,957 |
Mettler-Toledo International, Inc. (a) | 1,952 | 2,400,374 |
| | 14,643,331 |
Machinery 0.2% |
IDEX Corp. | 8,585 | 1,892,649 |
Pharmaceuticals 4.4% |
Eli Lilly & Co. | 35,255 | 27,537,680 |
Zoetis, Inc. | 58,819 | 9,366,338 |
| | 36,904,018 |
Professional Services 1.0% |
TransUnion | 112,439 | 8,208,047 |
Semiconductors & Semiconductor Equipment 14.4% |
Advanced Micro Devices, Inc. (a) | 54,652 | 8,655,784 |
ARM Holdings plc, ADR (a) | 11,540 | 1,167,963 |
ASML Holding NV (Registered) | 11,223 | 9,791,731 |
Broadcom, Inc. | 6,756 | 8,784,624 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Semiconductors & Semiconductor Equipment (continued) |
KLA Corp. | 10,655 | $ 7,344,385 |
Marvell Technology, Inc. | 253,338 | 16,697,508 |
Microchip Technology, Inc. | 128,988 | 11,864,316 |
Monolithic Power Systems, Inc. | 19,771 | 13,233,323 |
NVIDIA Corp. | 50,042 | 43,237,288 |
| | 120,776,922 |
Software 16.7% |
Atlassian Corp., Class A (a) | 30,198 | 5,203,115 |
Cadence Design Systems, Inc. (a) | 19,398 | 5,346,671 |
HubSpot, Inc. (a) | 13,118 | 7,934,685 |
Intuit, Inc. | 20,469 | 12,805,816 |
Microsoft Corp. | 220,198 | 85,729,687 |
Salesforce, Inc. | 38,217 | 10,278,080 |
ServiceNow, Inc. (a) | 15,551 | 10,781,975 |
Workday, Inc., Class A (a) | 6,592 | 1,613,260 |
| | 139,693,289 |
Specialized REITs 0.9% |
Equinix, Inc. | 10,855 | 7,719,099 |
Specialty Retail 1.8% |
O'Reilly Automotive, Inc. (a) | 4,196 | 4,251,639 |
TJX Cos., Inc. (The) | 115,207 | 10,839,827 |
| | 15,091,466 |
| Shares | | Value |
|
Technology Hardware, Storage & Peripherals 5.0% |
Apple, Inc. | 246,523 | | $ 41,990,263 |
Total Common Stocks (Cost $489,195,555) | | | 832,237,936 |
Short-Term Investment 0.4% |
Affiliated Investment Company 0.4% |
MainStay U.S. Government Liquidity Fund, 5.242% (b) | 3,395,199 | | 3,395,199 |
Total Short-Term Investment (Cost $3,395,199) | | | 3,395,199 |
Total Investments (Cost $492,590,754) | 99.8% | | 835,633,135 |
Other Assets, Less Liabilities | 0.2 | | 1,287,093 |
Net Assets | 100.0% | | $ 836,920,228 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | Non-income producing security. |
(b) | Current yield as of April 30, 2024. |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 24,211 | $ 85,247 | $ (106,063) | $ — | $ — | $ 3,395 | $ 225 | $ — | 3,395 |
Abbreviation(s): |
ADR—American Depositary Receipt |
REIT—Real Estate Investment Trust |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay WMC Growth Fund |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | $ 832,237,936 | | $ — | | $ — | | $ 832,237,936 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 3,395,199 | | — | | — | | 3,395,199 |
Total Investments in Securities | $ 835,633,135 | | $ — | | $ — | | $ 835,633,135 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $489,195,555) | $832,237,936 |
Investment in affiliated investment companies, at value (identified cost $3,395,199) | 3,395,199 |
Cash | 77 |
Receivables: | |
Investment securities sold | 2,408,606 |
Dividends | 365,948 |
Fund shares sold | 51,324 |
Securities lending | 164 |
Other assets | 92,279 |
Total assets | 838,551,533 |
Liabilities |
Payables: | |
Investment securities purchased | 628,848 |
Manager (See Note 3) | 479,520 |
Fund shares redeemed | 180,758 |
NYLIFE Distributors (See Note 3) | 142,264 |
Transfer agent (See Note 3) | 141,526 |
Professional fees | 35,705 |
Custodian | 13,129 |
Shareholder communication | 8,498 |
Accrued expenses | 1,057 |
Total liabilities | 1,631,305 |
Net assets | $836,920,228 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 19,299 |
Additional paid-in-capital | 521,185,085 |
| 521,204,384 |
Total distributable earnings (loss) | 315,715,844 |
Net assets | $836,920,228 |
Class A | |
Net assets applicable to outstanding shares | $577,594,272 |
Shares of beneficial interest outstanding | 13,395,322 |
Net asset value per share outstanding | $ 43.12 |
Maximum sales charge (5.50% of offering price) | 2.51 |
Maximum offering price per share outstanding | $ 45.63 |
Investor Class | |
Net assets applicable to outstanding shares | $ 75,092,761 |
Shares of beneficial interest outstanding | 1,797,768 |
Net asset value per share outstanding | $ 41.77 |
Maximum sales charge (5.00% of offering price) | 2.20 |
Maximum offering price per share outstanding | $ 43.97 |
Class B | |
Net assets applicable to outstanding shares | $ 3,528,334 |
Shares of beneficial interest outstanding | 95,845 |
Net asset value and offering price per share outstanding | $ 36.81 |
Class C | |
Net assets applicable to outstanding shares | $ 1,868,564 |
Shares of beneficial interest outstanding | 50,779 |
Net asset value and offering price per share outstanding | $ 36.80 |
Class I | |
Net assets applicable to outstanding shares | $ 54,592,187 |
Shares of beneficial interest outstanding | 1,208,827 |
Net asset value and offering price per share outstanding | $ 45.16 |
Class R6 | |
Net assets applicable to outstanding shares | $124,244,110 |
Shares of beneficial interest outstanding | 2,749,974 |
Net asset value and offering price per share outstanding | $ 45.18 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay WMC Growth Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $25,079) | $ 2,589,425 |
Dividends-affiliated | 224,842 |
Securities lending, net | 9,448 |
Total income | 2,823,715 |
Expenses | |
Manager (See Note 3) | 2,832,206 |
Distribution/Service—Class A (See Note 3) | 705,289 |
Distribution/Service—Investor Class (See Note 3) | 92,953 |
Distribution/Service—Class B (See Note 3) | 21,687 |
Distribution/Service—Class C (See Note 3) | 9,525 |
Distribution/Service—Class R2 (See Note 3)(a) | 79 |
Transfer agent (See Note 3) | 383,133 |
Professional fees | 53,241 |
Registration | 50,434 |
Shareholder communication | 13,761 |
Custodian | 12,734 |
Trustees | 9,599 |
Shareholder service (See Note 3) | 32 |
Miscellaneous | 18,998 |
Total expenses before waiver/reimbursement | 4,203,671 |
Expense waiver/reimbursement from Manager (See Note 3) | (49,825) |
Net expenses | 4,153,846 |
Net investment income (loss) | (1,330,131) |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on unaffiliated investments | 49,126,442 |
Net change in unrealized appreciation (depreciation) on unaffiliated investments | 130,874,638 |
Net realized and unrealized gain (loss) | 180,001,080 |
Net increase (decrease) in net assets resulting from operations | $178,670,949 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ (1,330,131) | $ (2,210,751) |
Net realized gain (loss) | 49,126,442 | (23,916,618) |
Net change in unrealized appreciation (depreciation) | 130,874,638 | 131,428,262 |
Net increase (decrease) in net assets resulting from operations | 178,670,949 | 105,300,893 |
Capital share transactions: | | |
Net proceeds from sales of shares | 10,169,385 | 34,714,414 |
Cost of shares redeemed | (67,159,953) | (118,279,399) |
Increase (decrease) in net assets derived from capital share transactions | (56,990,568) | (83,564,985) |
Net increase (decrease) in net assets | 121,680,381 | 21,735,908 |
Net Assets |
Beginning of period | 715,239,847 | 693,503,939 |
End of period | $836,920,228 | $ 715,239,847 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay WMC Growth Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 34.47 | | $ 29.94 | | $ 56.51 | | $ 42.56 | | $ 36.07 | | $ 36.41 |
Net investment income (loss) (a) | (0.07) | | (0.12) | | (0.19) | | (0.23) | | (0.00)‡ | | 0.10 |
Net realized and unrealized gain (loss) | 8.72 | | 4.65 | | (14.75) | | 15.93 | | 7.78 | | 2.87 |
Total from investment operations | 8.65 | | 4.53 | | (14.94) | | 15.70 | | 7.78 | | 2.97 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | — | | — | | — | | (0.16) | | (0.06) |
From net realized gain on investments | — | | — | | (11.63) | | (1.75) | | (1.13) | | (3.25) |
Total distributions | — | | — | | (11.63) | | (1.75) | | (1.29) | | (3.31) |
Net asset value at end of period | $ 43.12 | | $ 34.47 | | $ 29.94 | | $ 56.51 | | $ 42.56 | | $ 36.07 |
Total investment return (b) | 25.09% | | 15.13% | | (32.66)% | | 37.87% | | 22.21% | | 8.90% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (0.35)%†† | | (0.34)% | | (0.53)% | | (0.46)% | | 0.01% | | 0.30% |
Net expenses (c) | 1.03%†† | | 1.05% | | 1.04% | | 1.02% | | 1.04% | | 1.06% |
Portfolio turnover rate | 33% | | 42% | | 42% | | 53% | | 150% | | 153% |
Net assets at end of period (in 000’s) | $ 577,594 | | $ 478,878 | | $ 453,405 | | $ 725,468 | | $ 531,715 | | $ 436,508 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 33.44 | | $ 29.12 | | $ 55.42 | | $ 41.89 | | $ 35.53 | | $ 35.94 |
Net investment income (loss) (a) | (0.13) | | (0.20) | | (0.29) | | (0.35) | | (0.10) | | 0.01 |
Net realized and unrealized gain (loss) | 8.46 | | 4.52 | | (14.38) | | 15.63 | | 7.65 | | 2.83 |
Total from investment operations | 8.33 | | 4.32 | | (14.67) | | 15.28 | | 7.55 | | 2.84 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | — | | — | | — | | (0.06) | | — |
From net realized gain on investments | — | | — | | (11.63) | | (1.75) | | (1.13) | | (3.25) |
Total distributions | — | | — | | (11.63) | | (1.75) | | (1.19) | | (3.25) |
Net asset value at end of period | $ 41.77 | | $ 33.44 | | $ 29.12 | | $ 55.42 | | $ 41.89 | | $ 35.53 |
Total investment return (b) | 24.91% | | 14.84% | | (32.86)% | | 37.46% | | 21.84% | | 8.61% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (0.64)%†† | | (0.62)% | | (0.81)% | | (0.71)% | | (0.26)% | | 0.03% |
Net expenses (c) | 1.32%†† | | 1.32% | | 1.33% | | 1.32% | | 1.34% | | 1.33% |
Expenses (before waiver/reimbursement) (c) | 1.42%†† | | 1.50% | | 1.36% | | 1.40% | | 1.41% | | 1.42% |
Portfolio turnover rate | 33% | | 42% | | 42% | | 53% | | 150% | | 153% |
Net assets at end of period (in 000's) | $ 75,093 | | $ 63,644 | | $ 59,377 | | $ 93,624 | | $ 97,709 | | $ 110,762 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
15
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class B | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 29.58 | | $ 25.96 | | $ 51.01 | | $ 38.96 | | $ 33.31 | | $ 34.13 |
Net investment income (loss) (a) | (0.24) | | (0.39) | | (0.51) | | (0.67) | | (0.36) | | (0.22) |
Net realized and unrealized gain (loss) | 7.47 | | 4.01 | | (12.91) | | 14.47 | | 7.14 | | 2.65 |
Total from investment operations | 7.23 | | 3.62 | | (13.42) | | 13.80 | | 6.78 | | 2.43 |
Less distributions: | | | | | | | | | | | |
From net realized gain on investments | — | | — | | (11.63) | | (1.75) | | (1.13) | | (3.25) |
Net asset value at end of period | $ 36.81 | | $ 29.58 | | $ 25.96 | | $ 51.01 | | $ 38.96 | | $ 33.31 |
Total investment return (b) | 24.44% | | 13.94% | | (33.36)% | | 36.44% | | 20.93% | | 7.79% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (1.37)%†† | | (1.35)% | | (1.57)% | | (1.46)% | | (1.01)% | | (0.69)% |
Net expenses (c) | 2.07%†† | | 2.07% | | 2.08% | | 2.07% | | 2.08% | | 2.08% |
Expenses (before waiver/reimbursement) (c) | 2.17%†† | | 2.25% | | 2.11% | | 2.15% | | 2.15% | | 2.18% |
Portfolio turnover rate | 33% | | 42% | | 42% | | 53% | | 150% | | 153% |
Net assets at end of period (in 000’s) | $ 3,528 | | $ 4,486 | | $ 6,967 | | $ 15,574 | | $ 16,382 | | $ 18,749 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 29.57 | | $ 25.94 | | $ 50.99 | | $ 38.95 | | $ 33.30 | | $ 34.12 |
Net investment income (loss) (a) | (0.25) | | (0.40) | | (0.51) | | (0.67) | | (0.36) | | (0.21) |
Net realized and unrealized gain (loss) | 7.48 | | 4.03 | | (12.91) | | 14.46 | | 7.14 | | 2.64 |
Total from investment operations | 7.23 | | 3.63 | | (13.42) | | 13.79 | | 6.78 | | 2.43 |
Less distributions: | | | | | | | | | | | |
From net realized gain on investments | — | | — | | (11.63) | | (1.75) | | (1.13) | | (3.25) |
Net asset value at end of period | $ 36.80 | | $ 29.57 | | $ 25.94 | | $ 50.99 | | $ 38.95 | | $ 33.30 |
Total investment return (b) | 24.45% | | 13.99% | | (33.37)% | | 36.42% | | 20.94% | | 7.80% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (1.39)%†† | | (1.37)% | | (1.56)% | | (1.46)% | | (1.02)% | | (0.67)% |
Net expenses (c) | 2.07%†† | | 2.07% | | 2.08% | | 2.07% | | 2.08% | | 2.08% |
Expenses (before waiver/reimbursement) (c) | 2.17%†† | | 2.25% | | 2.11% | | 2.15% | | 2.15% | | 2.18% |
Portfolio turnover rate | 33% | | 42% | | 42% | | 53% | | 150% | | 153% |
Net assets at end of period (in 000’s) | $ 1,869 | | $ 1,657 | | $ 1,318 | | $ 2,880 | | $ 3,068 | | $ 3,144 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
16 | MainStay WMC Growth Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 36.05 | | $ 31.22 | | $ 58.27 | | $ 43.72 | | $ 37.01 | | $ 37.28 |
Net investment income (loss) (a) | (0.02) | | (0.02) | | (0.07) | | 0.02 | | 0.11 | | 0.19 |
Net realized and unrealized gain (loss) | 9.13 | | 4.85 | | (15.35) | | 16.28 | | 7.97 | | 2.95 |
Total from investment operations | 9.11 | | 4.83 | | (15.42) | | 16.30 | | 8.08 | | 3.14 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | — | | — | | — | | (0.24) | | (0.16) |
From net realized gain on investments | — | | — | | (11.63) | | (1.75) | | (1.13) | | (3.25) |
Total distributions | — | | — | | (11.63) | | (1.75) | | (1.37) | | (3.41) |
Net asset value at end of period | $ 45.16 | | $ 36.05 | | $ 31.22 | | $ 58.27 | | $ 43.72 | | $ 37.01 |
Total investment return (b) | 25.27% | | 15.47% | | (32.46)% | | 38.25% | | 22.53% | | 9.18% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (0.07)%†† | | (0.04)% | | (0.20)% | | 0.04% | | 0.28% | | 0.53% |
Net expenses (c) | 0.75%†† | | 0.75% | | 0.75% | | 0.77% | | 0.79% | | 0.81% |
Expenses (before waiver/reimbursement) (c) | 0.78%†† | | 0.80% | | 0.79% | | 0.78% | | 0.79% | | 0.81% |
Portfolio turnover rate | 33% | | 42% | | 42% | | 53% | | 150% | | 153% |
Net assets at end of period (in 000’s) | $ 54,592 | | $ 44,833 | | $ 38,498 | | $ 14,025 | | $ 102,290 | | $ 139,588 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, | | April 26, 2021^ through October 31, |
Class R6 | 2023 | | 2022 | | 2021 |
Net asset value at beginning of period | $ 36.06 | | $ 31.22 | | $ 58.27 | | $ 53.43 |
Net investment income (loss) (a) | (0.01) | | (0.01) | | (0.08) | | (0.19) |
Net realized and unrealized gain (loss) | 9.13 | | 4.85 | | (15.34) | | 5.03 |
Total from investment operations | 9.12 | | 4.84 | | (15.42) | | 4.84 |
Less distributions: | | | | | | | |
From net realized gain on investments | — | | — | | (11.63) | | — |
Net asset value at end of period | $ 45.18 | | $ 36.06 | | $ 31.22 | | $ 58.27 |
Total investment return (b) | 25.29% | | 15.50% | | (32.46)% | | 9.06% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | |
Net investment income (loss) | (0.04)%†† | | (0.02)% | | (0.20)% | | (0.37)%†† |
Net expenses (c) | 0.72%†† | | 0.73% | | 0.72% | | 0.71%†† |
Expenses (before waiver/reimbursement) (c) | 0.72%†† | | 0.73% | | 0.72% | | 0.72%†† |
Portfolio turnover rate | 33% | | 42% | | 42% | | 53% |
Net assets at end of period (in 000’s) | $ 124,244 | | $ 121,645 | | $ 133,867 | | $ 152,039 |
* | Unaudited. |
^ | Inception date. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay WMC Growth Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | August 7, 2006 |
Investor Class | January 18, 2013 |
Class B | January 18, 2013 |
Class C | January 18, 2013 |
Class I | November 2, 2009 |
Class R6 | April 26, 2021 |
Effective at the close of business on February 23, 2024, Class R2 shares were liquidated.
Class B shares of the MainStay Group of Funds are closed to all new purchases as well as additional investments by existing Class B shareholders. Existing Class B shareholders may continue to reinvest dividends and capital gains distributions, as well as exchange their Class B shares for Class B shares of other funds in the MainStay Group of Funds as permitted by the current exchange privileges. Class B shareholders continue to be subject to any applicable contingent deferred sales charge ("CDSC") at the time of redemption. All other features of the Class B shares, including but not limited to the fees and expenses applicable to Class B shares, remain unchanged. Unless redeemed, Class B shareholders will remain in Class B shares of their respective fund until the Class B shares are converted to Class A or Investor Class shares pursuant to the applicable conversion schedule.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a CDSC of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. When Class B shares were offered, they were offered at NAV without an initial sales charge, although a CDSC that declines depending on the number of years a shareholder held its Class B shares may be imposed on certain redemptions of such shares made within six years of the date of purchase of such shares. Class I and Class R6 shares are offered at NAV without a sales charge. Depending upon eligibility, Class B shares convert to either Class A or Investor Class shares at the end of the
calendar quarter eight years after the date they were purchased. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under a distribution plan pursuant to Rule 12b-1 under the 1940 Act, Class B and Class C shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. Class I and Class R6 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 is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which
18 | MainStay WMC Growth Fund |
market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Notes to Financial Statements (Unaudited) (continued)
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The
Fund's federal, state and local income tax 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 from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A.,
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("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(H) 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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Wellington Management Company LLP ("Wellington" or the "Subadvisor"), a registered investment adviser, serves as the 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 ("Subadvisory Agreement") between New York Life Investments and Wellington, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.70% up to $500 million; 0.65% from $500 million to $1 billion; 0.625% from $1 billion to $2 billion; and 0.60% in excess of $2 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.68% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) for Class I shares do not exceed 0.75% of its average daily net assets. In addition, New York Life Investments will waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) for Class R6 do not exceed those of Class I. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $2,832,206 and waived fees and/or reimbursed expenses, including the waiver/reimbursement of certain class specific expenses in the amount of $49,825 and paid the Subadvisor fees in the amount of $1,162,284.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
Notes to Financial Statements (Unaudited) (continued)
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and 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 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, for a total 12b-1 fee of 1.00%. Class I and Class R6 shares are not subject to a distribution and/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.
In accordance with the Shareholder Services Plans for the Class R2 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 R2 shares. For its services, the Manager, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R2 shares. This is in addition to any fees paid under the Class R2 Plan.
During the period November 1, 2023 through February 28, 2024, shareholder service fees incurred by the Fund were as follows:
* | Effective at the close of business on February 23, 2024, Class R2 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $13,600 and $2,114, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $1,023 and $216, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life
Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $180,991 | $ — |
Investor Class | 168,257 | (38,125) |
Class B | 9,813 | (2,223) |
Class C | 4,283 | (950) |
Class I | 17,067 | — |
Class R2* | 20 | — |
Class R6 | 2,702 | — |
* | Effective at the close of business on February 23, 2024, Class R2 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
‡ | Less than one-tenth of a percent. |
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Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $501,887,914 | $337,773,277 | $(4,028,056) | $333,745,221 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $63,962,057, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $43,133 | $20,829 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and
the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $269,121 and $313,899, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 161,058 | $ 6,657,655 |
Shares redeemed | (744,740) | (30,994,377) |
Net increase (decrease) in shares outstanding before conversion | (583,682) | (24,336,722) |
Shares converted into Class A (See Note 1) | 88,462 | 3,753,402 |
Shares converted from Class A (See Note 1) | (1,816) | (78,309) |
Net increase (decrease) | (497,036) | $(20,661,629) |
Year ended October 31, 2023: | | |
Shares sold | 419,872 | $ 13,446,001 |
Shares redeemed | (1,789,046) | (58,865,219) |
Net increase (decrease) in shares outstanding before conversion | (1,369,174) | (45,419,218) |
Shares converted into Class A (See Note 1) | 120,716 | 4,071,859 |
Shares converted from Class A (See Note 1) | (3,618) | (116,866) |
Net increase (decrease) | (1,252,076) | $(41,464,225) |
|
Notes to Financial Statements (Unaudited) (continued)
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 11,867 | $ 480,607 |
Shares redeemed | (71,224) | (2,895,074) |
Net increase (decrease) in shares outstanding before conversion | (59,357) | (2,414,467) |
Shares converted into Investor Class (See Note 1) | 5,596 | 225,809 |
Shares converted from Investor Class (See Note 1) | (51,756) | (2,151,042) |
Net increase (decrease) | (105,517) | $ (4,339,700) |
Year ended October 31, 2023: | | |
Shares sold | 29,171 | $ 946,431 |
Shares redeemed | (129,167) | (4,190,513) |
Net increase (decrease) in shares outstanding before conversion | (99,996) | (3,244,082) |
Shares converted into Investor Class (See Note 1) | 13,946 | 454,580 |
Shares converted from Investor Class (See Note 1) | (49,643) | (1,638,559) |
Net increase (decrease) | (135,693) | $ (4,428,061) |
|
Class B | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 2 | $ 53 |
Shares redeemed | (6,362) | (229,212) |
Net increase (decrease) in shares outstanding before conversion | (6,360) | (229,159) |
Shares converted from Class B (See Note 1) | (49,423) | (1,770,704) |
Net increase (decrease) | (55,783) | $ (1,999,863) |
Year ended October 31, 2023: | | |
Shares sold | 49 | $ 1,270 |
Shares redeemed | (21,654) | (621,026) |
Net increase (decrease) in shares outstanding before conversion | (21,605) | (619,756) |
Shares converted from Class B (See Note 1) | (95,174) | (2,753,858) |
Net increase (decrease) | (116,779) | $ (3,373,614) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 5,809 | $ 197,380 |
Shares redeemed | (9,427) | (328,964) |
Net increase (decrease) in shares outstanding before conversion | (3,618) | (131,584) |
Shares converted from Class C (See Note 1) | (1,640) | (57,465) |
Net increase (decrease) | (5,258) | $ (189,049) |
Year ended October 31, 2023: | | |
Shares sold | 19,078 | $ 520,016 |
Shares redeemed | (10,631) | (302,982) |
Net increase (decrease) in shares outstanding before conversion | 8,447 | 217,034 |
Shares converted from Class C (See Note 1) | (3,198) | (93,497) |
Net increase (decrease) | 5,249 | $ 123,537 |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 47,479 | $ 2,077,325 |
Shares redeemed | (83,930) | (3,665,162) |
Net increase (decrease) in shares outstanding before conversion | (36,451) | (1,587,837) |
Shares converted into Class I (See Note 1) | 1,735 | 78,309 |
Net increase (decrease) | (34,716) | $ (1,509,528) |
Year ended October 31, 2023: | | |
Shares sold | 239,818 | $ 8,164,955 |
Shares redeemed | (231,842) | (8,076,153) |
Net increase (decrease) in shares outstanding before conversion | 7,976 | 88,802 |
Shares converted into Class I (See Note 1) | 3,544 | 119,369 |
Shares converted from Class I (See Note 1) | (1,196) | (43,028) |
Net increase (decrease) | 10,324 | $ 165,143 |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 1,147 | $ 43,132 |
Shares redeemed | (4,047) | (168,115) |
Net increase (decrease) | (2,900) | $ (124,983) |
Year ended October 31, 2023: | | |
Shares sold | 462 | $ 16,205 |
Net increase (decrease) | 462 | $ 16,205 |
|
24 | MainStay WMC Growth Fund |
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 16,009 | $ 713,233 |
Shares redeemed | (639,185) | (28,879,049) |
Net increase (decrease) | (623,176) | $(28,165,816) |
Year ended October 31, 2023: | | |
Shares sold | 355,853 | $ 11,619,536 |
Shares redeemed | (1,270,504) | (46,223,506) |
Net increase (decrease) | (914,651) | $(34,603,970) |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay WMC Growth Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”) and the Subadvisory Agreement between New York Life Investments and Wellington Management Company LLP (“WMC”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and WMC in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and WMC in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or WMC that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, WMC personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and WMC; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and WMC; (iii) the costs of the services provided, and profits realized, by New York Life Investments and WMC with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
26 | MainStay WMC Growth Fund |
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and WMC. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and WMC resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and WMC
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by WMC, evaluating the performance of WMC, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of WMC and ongoing analysis of, and interactions with, WMC with respect to, among other things, the Fund’s investment performance and risks as well as WMC’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that WMC provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated WMC’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and WMC’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at WMC. The Board considered New York Life Investments’ and WMC’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and WMC and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered WMC’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and WMC regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of WMC and the members of the Board’s Investment Committee, which generally occur on an annual basis. In considering the investment performance of the Fund, the Board noted that the Fund underperformed its peer funds for the three-, five- and ten-year periods ended July 31, 2023, and performed in line with its peer funds for the one-year period ended July 31, 2023. The Board considered its discussions with representatives from New York Life Investments and WMC regarding the Fund’s investment performance.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and WMC
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates and WMC due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. With respect to the profitability of WMC’s relationship with the Fund, the Board considered information from New York Life Investments that WMC’s subadvisory fee reflected an arm’s-length negotiation and that this fee is paid by New York Life Investments, not the Fund, and the relevance of WMC’s profitability was considered by the Trustees in that context. On this basis, the Board primarily considered the costs and profitability for New York Life Investments and its affiliates with respect to the Fund.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and WMC, and profitability of New York Life Investments and its affiliates and WMC due to their relationships with the Fund, the Board
considered, among other factors, New York Life Investments’ and its affiliates’ and WMC’s continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and WMC and acknowledged that New York Life Investments and WMC must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and WMC to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates and WMC and its affiliates due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to WMC from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to WMC in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In this regard, the Board also requested and considered information from New York Life Investments concerning other material business relationships between WMC and its affiliates and New York Life Investments and its affiliates and considered the existence of a strategic partnership between New York Life Investments and WMC that relates to certain current and future products and represents a potential conflict of interest associated with New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement for managing the Fund, New York Life Investments’ affiliates also earn revenues from serving the
28 | MainStay WMC Growth Fund |
Fund in various other capacities, including as the Fund’s transfer agent and distributor. The Board considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund were not excessive, other expected benefits that may accrue to New York Life Investments and its affiliates are reasonable and other expected benefits that may accrue to WMC and its affiliates are consistent with those expected for a subadvisor to a mutual fund. With respect to WMC, the Board considered that any profits realized by WMC due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and WMC, acknowledging that any such profits are based on the subadvisory fee paid to WMC by New York Life Investments, not the Fund.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to WMC is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and WMC on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment
advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. The Board reviewed
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
30 | MainStay WMC Growth Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
32 | MainStay WMC Growth Fund |
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
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“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022246 MS081-24 | MSWG10-06/24 |
(NYLIM) NL529
MainStay WMC International Research Equity Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Five Years | Ten Years | Gross Expense Ratio3 |
Class A Shares | Maximum 5.50% Initial Sales Charge | With sales charges | 9/28/2007 | 10.86% | 2.38% | 1.95% | 0.81% | 1.21% |
| | Excluding sales charges | | 17.31 | 8.34 | 3.11 | 1.38 | 1.21 |
Investor Class Shares4 | Maximum 5.00% Initial Sales Charge | With sales charges | 2/28/2008 | 11.29 | 2.59 | 1.66 | 0.59 | 1.59 |
| | Excluding sales charges | | 17.15 | 7.98 | 2.81 | 1.16 | 1.59 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 9/28/2007 | 15.60 | 6.11 | 2.03 | 0.41 | 2.34 |
| If Redeemed Within One Year of Purchase | Excluding sales charges | | 16.60 | 7.11 | 2.03 | 0.41 | 2.34 |
Class I Shares | No Sales Charge | | 9/28/2007 | 17.53 | 8.60 | 3.39 | 1.64 | 0.96 |
1. | Effective March 5, 2021, the Fund replaced its subadvisor and modified its principal investment strategies. The past performance in the graph and table prior to March 5, 2021 reflects the Fund's prior subadvisor and principal investment strategies. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
MSCI EAFE® Index (Net)2 | 18.63% | 9.28% | 6.18% | 4.38% |
MSCI ACWI® ex USA Index (Net)3 | 17.69 | 9.33 | 5.03 | 3.93 |
Morningstar Foreign Large Blend Category Average4 | 16.61 | 8.18 | 5.40 | 4.18 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the MSCI EAFE® Index (Net), which represents a broad measure of market performance, as a replacement for the MSCI ACWI® ex USA Index (Net). The MSCI EAFE® Index (Net) consists of international stocks representing the developed world outside of North America. |
3. | The MSCI ACWI® ex USA Index (Net), which is generally representative of the market sectors or types of investments in which the Fund invests, is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. |
4. | The Morningstar Foreign Large Blend Category Average is representative of funds that invest in a variety of big international stocks. Most of these funds divide their assets among a dozen or more developed markets, including Japan, Britain, France, and Germany. These funds primarily invest in stocks that have market caps in the top 70% of each economically integrated market (such as Europe or Asia ex-Japan). The blend style is assigned to funds where neither growth nor value characteristics predominate. These funds typically will have less than 20% of assets invested in U.S. stocks. Results are based on average total returns of similar funds with all dividends 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 WMC International Research Equity Fund |
Cost in Dollars of a $1,000 Investment in MainStay WMC International Research 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,173.10 | $ 6.16 | $1,019.19 | $ 5.72 | 1.14% |
Investor Class Shares | $1,000.00 | $1,171.50 | $ 8.21 | $1,017.30 | $ 7.62 | 1.52% |
Class C Shares | $1,000.00 | $1,166.00 | $12.22 | $1,013.58 | $11.36 | 2.27% |
Class I Shares | $1,000.00 | $1,175.30 | $ 4.65 | $1,020.59 | $ 4.32 | 0.86% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Country Composition as of April 30, 2024 (Unaudited)
Japan | 14.1% |
France | 13.0 |
United Kingdom | 10.9 |
Germany | 8.5 |
United States | 6.9 |
China | 5.7 |
Canada | 4.4 |
Taiwan | 3.7 |
Netherlands | 3.5 |
Republic of Korea | 3.2 |
Australia | 3.1 |
Hong Kong | 2.7 |
Denmark | 2.7 |
Italy | 2.5 |
Switzerland | 2.2 |
India | 2.1 |
Brazil | 1.7 |
South Africa | 1.6 |
Singapore | 1.4 |
Belgium | 1.2% |
Austria | 0.8 |
Chile | 0.6 |
Zambia | 0.5 |
Mexico | 0.4 |
Sweden | 0.4 |
Ireland | 0.3 |
Indonesia | 0.3 |
Israel | 0.3 |
Nigeria | 0.2 |
Finland | 0.2 |
Luxembourg | 0.1 |
Spain | 0.1 |
Thailand | 0.0‡ |
Russia | 0.0‡ |
Other Assets, Less Liabilities | 0.7 |
Investments Sold Short | –0.0‡ |
| 100.0% |
‡ | Less than one–tenth of a percent. |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Taiwan Semiconductor Manufacturing Co. Ltd. |
2. | Novo Nordisk A/S, Class B |
3. | Shell plc |
4. | TotalEnergies SE |
5. | Tencent Holdings Ltd. |
6. | ASML Holding NV |
7. | Unilever plc |
8. | HSBC Holdings plc |
9. | AIA Group Ltd. |
10. | Anglo American plc |
8 | MainStay WMC International Research Equity Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 95.9% |
Australia 3.1% |
ANZ Group Holdings Ltd. (Banks) | 80,752 | $ 1,461,439 |
Glencore plc (Metals & Mining) | 261,414 | 1,522,416 |
Goodman Group (Industrial REITs) | 54,737 | 1,106,868 |
Orora Ltd. (Containers & Packaging) | 116,121 | 163,199 |
Rio Tinto plc (Metals & Mining) | 6,908 | 470,768 |
Stockland (Diversified REITs) | 267,374 | 765,285 |
| | 5,489,975 |
Austria 0.8% |
BAWAG Group AG (Banks) (a) | 13,244 | 791,814 |
Erste Group Bank AG (Banks) | 13,249 | 617,131 |
| | 1,408,945 |
Belgium 1.2% |
KBC Group NV (Banks) | 21,354 | 1,585,876 |
UCB SA (Pharmaceuticals) | 4,343 | 575,560 |
| | 2,161,436 |
Brazil 1.0% |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP (Water Utilities) | 58,000 | 902,739 |
Petroleo Brasileiro SA (Oil, Gas & Consumable Fuels) | 50,900 | 433,855 |
Rumo SA (Ground Transportation) (b) | 84,350 | 327,484 |
| | 1,664,078 |
Canada 4.4% |
Alimentation Couche-Tard, Inc. (Consumer Staples Distribution & Retail) | 39,635 | 2,196,746 |
Barrick Gold Corp. (Metals & Mining) | 104,425 | 1,735,549 |
Boat Rocker Media, Inc. (Entertainment) (b) | 42,890 | 28,040 |
Cenovus Energy, Inc. (Oil, Gas & Consumable Fuels) | 49,137 | 1,009,403 |
Constellation Software, Inc. (Software) | 388 | 998,933 |
Hydro One Ltd. (Electric Utilities) (a) | 8,245 | 230,942 |
Lightspeed Commerce, Inc. (Software) (b) | 17,247 | 225,591 |
Methanex Corp. (Chemicals) | 10,205 | 488,660 |
Shopify, Inc., Class A (IT Services) (b) | 12,444 | 873,652 |
| | 7,787,516 |
Chile 0.6% |
Lundin Mining Corp. (Metals & Mining) | 92,088 | 1,051,555 |
China 5.7% |
Anhui Conch Cement Co. Ltd., Class H (Construction Materials) | 69,000 | 159,994 |
BYD Co. Ltd., Class H (Automobiles) | 17,053 | 467,393 |
| Shares | Value |
|
China (continued) |
China Merchants Bank Co. Ltd., Class H (Banks) | 212,597 | $ 927,834 |
ENN Energy Holdings Ltd. (Gas Utilities) | 97,700 | 840,642 |
KE Holdings, Inc., ADR (Real Estate Management & Development) | 88,831 | 1,343,125 |
Minth Group Ltd. (Automobile Components) | 398,000 | 683,510 |
PICC Property & Casualty Co. Ltd., Class H (Insurance) | 500,000 | 622,668 |
Tencent Holdings Ltd. (Interactive Media & Services) | 81,490 | 3,582,775 |
Trip.com Group Ltd. (Hotels, Restaurants & Leisure) (b) | 27,823 | 1,355,270 |
| | 9,983,211 |
Denmark 2.7% |
Genmab A/S (Biotechnology) (b) | 2,263 | 627,081 |
Novo Nordisk A/S, Class B (Pharmaceuticals) | 31,573 | 4,057,619 |
| | 4,684,700 |
Finland 0.2% |
Nokian Renkaat OYJ (Automobile Components) | 29,093 | 253,504 |
France 13.0% |
Accor SA (Hotels, Restaurants & Leisure) | 22,954 | 1,003,769 |
Air France-KLM (Passenger Airlines) (b)(c) | 76,764 | 782,696 |
Airbus SE (Aerospace & Defense) | 6,490 | 1,066,555 |
ALD SA (Ground Transportation) (a) | 34,538 | 227,303 |
Arkema SA (Chemicals) | 3,994 | 412,087 |
AXA SA (Insurance) | 30,302 | 1,043,356 |
BNP Paribas SA (Banks) | 16,835 | 1,203,945 |
Bureau Veritas SA (Professional Services) | 34,977 | 1,015,107 |
Capgemini SE (IT Services) | 2,583 | 542,677 |
Dassault Aviation SA (Aerospace & Defense) | 2,096 | 448,819 |
Edenred SE (Financial Services) | 5,052 | 239,417 |
Engie SA (Multi-Utilities) (b) | 84,345 | 1,464,722 |
Hermes International SCA (Textiles, Apparel & Luxury Goods) | 721 | 1,733,361 |
JCDecaux SE (Media) (b) | 26,288 | 549,520 |
Klepierre SA (Retail REITs) | 29,446 | 792,748 |
Legrand SA (Electrical Equipment) | 9,106 | 935,998 |
LVMH Moet Hennessy Louis Vuitton SE (Textiles, Apparel & Luxury Goods) | 1,479 | 1,190,560 |
Pernod Ricard SA (Beverages) | 9,521 | 1,437,723 |
Renault SA (Automobiles) | 30,044 | 1,481,811 |
Societe Generale SA (Banks) | 1,936 | 52,034 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
France (continued) |
TotalEnergies SE (Oil, Gas & Consumable Fuels) | 49,836 | $ 3,619,723 |
Valeo SE (Automobile Components) | 51,944 | 658,860 |
Vinci SA (Construction & Engineering) | 6,985 | 817,521 |
| | 22,720,312 |
Germany 8.5% |
adidas AG (Textiles, Apparel & Luxury Goods) | 7,305 | 1,762,553 |
Allianz SE (Registered) (Insurance) | 5,712 | 1,622,235 |
Beiersdorf AG (Personal Care Products) | 11,736 | 1,759,792 |
Brenntag SE (Trading Companies & Distributors) | 7,439 | 594,221 |
Commerzbank AG (Banks) | 53,592 | 796,620 |
Daimler Truck Holding AG (Machinery) | 25,753 | 1,162,173 |
Deutsche Post AG (Air Freight & Logistics) | 25,542 | 1,069,785 |
Deutsche Telekom AG (Registered) (Diversified Telecommunication Services) | 49,557 | 1,134,212 |
Infineon Technologies AG (Semiconductors & Semiconductor Equipment) | 18,693 | 652,380 |
Rheinmetall AG (Aerospace & Defense) | 1,032 | 569,350 |
RWE AG (Independent Power and Renewable Electricity Producers) | 20,426 | 709,733 |
Siemens AG (Registered) (Industrial Conglomerates) | 10,820 | 2,029,675 |
Talanx AG (Insurance) | 10,667 | 805,297 |
United Internet AG (Registered), Class G (Diversified Telecommunication Services) | 12,366 | 298,584 |
| | 14,966,610 |
Hong Kong 2.7% |
AIA Group Ltd. (Insurance) | 411,829 | 3,019,938 |
Hong Kong Exchanges & Clearing Ltd. (Capital Markets) | 27,792 | 882,882 |
Techtronic Industries Co. Ltd. (Machinery) | 57,500 | 799,363 |
| | 4,702,183 |
India 2.1% |
Axis Bank Ltd. (Banks) | 57,516 | 803,571 |
Bharti Airtel Ltd. (Wireless Telecommunication Services) | 57,534 | 910,718 |
HDFC Bank Ltd., ADR (Banks) | 21,999 | 1,267,143 |
SBI Life Insurance Co. Ltd. (Insurance) (a) | 35,933 | 616,599 |
| | 3,598,031 |
| Shares | Value |
|
Indonesia 0.3% |
Bank Rakyat Indonesia Persero Tbk. PT (Banks) | 1,791,410 | $ 540,248 |
Ireland 0.3% |
AIB Group plc (Banks) | 113,861 | 588,133 |
Israel 0.3% |
Wix.com Ltd. (IT Services) (b) | 4,002 | 475,718 |
Italy 2.5% |
DiaSorin SpA (Health Care Equipment & Supplies) | 3,478 | 350,767 |
Enel SpA (Electric Utilities) | 107,214 | 706,104 |
Eurogroup Laminations SpA (Electrical Equipment) (b)(c) | 63,234 | 276,214 |
FinecoBank Banca Fineco SpA (Banks) | 77,832 | 1,192,518 |
Stevanato Group SpA (Life Sciences Tools & Services) | 9,882 | 277,091 |
UniCredit SpA (Banks) | 44,600 | 1,640,791 |
| | 4,443,485 |
Japan 14.1% |
Daiichi Sankyo Co. Ltd. (Pharmaceuticals) | 29,576 | 1,002,546 |
Daikin Industries Ltd. (Building Products) | 6,808 | 923,973 |
Eisai Co. Ltd. (Pharmaceuticals) | 8,200 | 337,533 |
Hakuhodo DY Holdings, Inc. (Media) | 34,800 | 323,783 |
Ibiden Co. Ltd. (Electronic Equipment, Instruments & Components) | 18,028 | 690,270 |
Isuzu Motors Ltd. (Automobiles) | 45,782 | 580,348 |
ITOCHU Corp. (Trading Companies & Distributors) | 16,700 | 746,756 |
Japan Post Insurance Co. Ltd. (Insurance) | 33,300 | 622,055 |
Kansai Electric Power Co., Inc. (The) (Electric Utilities) | 64,265 | 962,123 |
KDDI Corp. (Wireless Telecommunication Services) | 35,365 | 983,922 |
Keyence Corp. (Electronic Equipment, Instruments & Components) | 1,973 | 873,953 |
Koito Manufacturing Co. Ltd. (Automobile Components) | 42,170 | 567,955 |
Makita Corp. (Machinery) | 27,488 | 792,990 |
Mitsubishi Corp. (Trading Companies & Distributors) | 46,375 | 1,059,310 |
Mitsubishi Electric Corp. (Electrical Equipment) | 15,700 | 274,332 |
Mitsubishi UFJ Financial Group, Inc. (Banks) | 75,892 | 755,390 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay WMC International Research Equity Fund |
| Shares | Value |
Common Stocks (continued) |
Japan (continued) |
Mitsui & Co. Ltd. (Trading Companies & Distributors) | 18,500 | $ 891,563 |
Mitsui Fudosan Co. Ltd. (Real Estate Management & Development) | 136,600 | 1,388,730 |
MS&AD Insurance Group Holdings, Inc. (Insurance) | 41,100 | 737,078 |
Otsuka Holdings Co. Ltd. (Pharmaceuticals) | 15,100 | 643,983 |
Rakuten Bank Ltd. (Banks) (b) | 35,300 | 716,530 |
Recruit Holdings Co. Ltd. (Professional Services) | 25,993 | 1,129,694 |
Renesas Electronics Corp. (Semiconductors & Semiconductor Equipment) | 40,331 | 664,536 |
Sansan, Inc. (Software) (b)(c) | 35,302 | 324,241 |
Sekisui House Ltd. (Household Durables) | 46,100 | 1,056,503 |
Sony Group Corp. (Household Durables) | 18,645 | 1,540,118 |
Sumitomo Mitsui Trust Holdings, Inc. (Banks) | 45,848 | 963,758 |
T&D Holdings, Inc. (Insurance) | 37,169 | 604,693 |
Terumo Corp. (Health Care Equipment & Supplies) | 37,000 | 631,350 |
Tokyo Electron Ltd. (Semiconductors & Semiconductor Equipment) | 7,867 | 1,727,485 |
Yamaha Motor Co. Ltd. (Automobiles) | 21,862 | 203,680 |
| | 24,721,181 |
Luxembourg 0.1% |
CVC Capital Partners plc (Capital Markets) (b)(d) | 10,700 | 194,124 |
Mexico 0.4% |
Corp. Inmobiliaria Vesta SAB de CV (Real Estate Management & Development) | 192,200 | 680,019 |
Netherlands 3.5% |
Adyen NV (Financial Services) (a)(b) | 446 | 531,533 |
Akzo Nobel NV (Chemicals) | 3,951 | 261,257 |
Argenx SE (Biotechnology) (b) | 1,940 | 726,861 |
ASML Holding NV (Semiconductors & Semiconductor Equipment) | 4,110 | 3,582,369 |
IMCD NV (Trading Companies & Distributors) (b) | 2,728 | 413,641 |
Wolters Kluwer NV (Professional Services) | 3,580 | 535,280 |
| | 6,050,941 |
| Shares | Value |
|
Nigeria 0.2% |
Airtel Africa plc (Wireless Telecommunication Services) (a) | 294,135 | $ 404,395 |
Republic of Korea 2.3% |
KT Corp. (Diversified Telecommunication Services) | 29,925 | 741,983 |
LG Chem Ltd. (Chemicals) | 1,293 | 370,361 |
Samsung Electronics Co. Ltd. (Technology Hardware, Storage & Peripherals) | 19,765 | 1,093,955 |
Samsung SDI Co. Ltd. (Electronic Equipment, Instruments & Components) | 1,621 | 500,989 |
Shinhan Financial Group Co. Ltd. (Banks) | 38,705 | 1,295,399 |
| | 4,002,687 |
Russia 0.0% ‡ |
LUKOIL PJSC, Sponsored ADR (Oil, Gas & Consumable Fuels) (b)(d)(e) | 11,171 | 27,760 |
Mobile TeleSystems PJSC (Wireless Telecommunication Services) (d)(e) | 80,528 | — |
| | 27,760 |
Singapore 1.4% |
Grab Holdings Ltd., Class A (Ground Transportation) (b) | 389,846 | 1,364,461 |
United Overseas Bank Ltd. (Banks) | 50,875 | 1,127,899 |
| | 2,492,360 |
South Africa 1.6% |
Anglo American plc (Metals & Mining) | 84,451 | 2,755,577 |
Spain 0.1% |
Aena SME SA (Transportation Infrastructure) (c) | 694 | 126,840 |
Sweden 0.4% |
Sandvik AB (Machinery) | 31,935 | 641,077 |
Switzerland 2.2% |
Alcon, Inc. (Health Care Equipment & Supplies) | 6,974 | 535,523 |
DSM-Firmenich AG (Chemicals) | 2,074 | 232,201 |
Galderma Group AG (Pharmaceuticals) (b) | 8,381 | 624,529 |
Novartis AG (Registered) (Pharmaceuticals) | 19,011 | 1,836,290 |
Tecan Group AG (Registered) (Life Sciences Tools & Services) | 1,807 | 638,440 |
| | 3,866,983 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Taiwan 3.7% |
E Ink Holdings, Inc. (Electronic Equipment, Instruments & Components) | 90,548 | $ 582,197 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment) | 245,000 | 5,903,418 |
| | 6,485,615 |
Thailand 0.0% ‡ |
PTT Global Chemical PCL (Chemicals) | 45,700 | 45,084 |
United Kingdom 10.9% |
Allfunds Group plc (Capital Markets) | 47,968 | 301,674 |
AstraZeneca plc (Pharmaceuticals) | 16,499 | 2,484,153 |
BAE Systems plc (Aerospace & Defense) | 42,867 | 712,955 |
Beazley plc (Insurance) | 137,995 | 1,140,437 |
BT Group plc (Diversified Telecommunication Services) | 228,423 | 292,698 |
ConvaTec Group plc (Health Care Equipment & Supplies) (a) | 137,317 | 428,710 |
Croda International plc (Chemicals) | 4,555 | 260,431 |
HSBC Holdings plc (Banks) | 359,304 | 3,110,441 |
IMI plc (Machinery) | 24,772 | 538,653 |
Inchcape plc (Distributors) | 18,575 | 185,269 |
Intermediate Capital Group plc (Capital Markets) | 17,001 | 441,975 |
London Stock Exchange Group plc (Capital Markets) | 8,553 | 942,371 |
National Grid plc (Multi-Utilities) | 66,828 | 877,298 |
Reckitt Benckiser Group plc (Household Products) | 23,715 | 1,322,895 |
Rotork plc (Machinery) | 125,285 | 505,545 |
Sage Group plc (The) (Software) | 5,396 | 78,173 |
Standard Chartered plc (Banks) | 55,961 | 481,724 |
Tesco plc (Consumer Staples Distribution & Retail) | 190,281 | 702,092 |
Trainline plc (Hotels, Restaurants & Leisure) (a)(b) | 81,494 | 300,843 |
Unilever plc (Personal Care Products) | 61,426 | 3,175,385 |
Wise plc, Class A (Financial Services) (b) | 41,792 | 399,697 |
WPP plc (Media) | 46,295 | 465,416 |
| | 19,148,835 |
United States 5.1% |
CyberArk Software Ltd. (Software) (b) | 286 | 68,425 |
Experian plc (Professional Services) | 10,498 | 423,509 |
GSK plc (Pharmaceuticals) | 55,349 | 1,147,315 |
Haleon plc (Personal Care Products) | 581,657 | 2,457,239 |
| Shares | Value |
|
United States (continued) |
QIAGEN NV (Life Sciences Tools & Services) (b) | 16,348 | $ 681,645 |
Schneider Electric SE (Electrical Equipment) | 1,986 | 452,299 |
Shell plc (Oil, Gas & Consumable Fuels) | 105,845 | 3,771,956 |
| | 9,002,388 |
Zambia 0.5% |
First Quantum Minerals Ltd. (Metals & Mining) | 69,048 | 876,736 |
Total Common Stocks (Cost $161,367,755) | | 168,042,242 |
Preferred Stocks 1.6% |
Brazil 0.7% |
Banco Bradesco SA (Banks) | 439,100 | 1,183,877 |
Republic of Korea 0.9% |
Samsung Electronics Co. Ltd. (Technology Hardware, Storage & Peripherals) 1.88% | 33,741 | 1,581,240 |
Total Preferred Stocks (Cost $3,345,934) | | 2,765,117 |
Exchange-Traded Fund 1.4% |
United States 1.4% |
iShares MSCI ACWI ex U.S. ETF (c) | 47,107 | 2,453,804 |
Total Exchange-Traded Fund (Cost $2,513,053) | | 2,453,804 |
|
| Number of Warrants | |
|
Warrants 0.0% ‡ |
Canada 0.0% ‡ |
Constellation Software, Inc. (Software) | | |
Expires 3/31/40 (b)(d)(e) | 442 | — |
Total Warrants (Cost $0) | | — |
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay WMC International Research Equity Fund |
| Shares | | Value |
|
Short-Term Investments 0.4% |
Affiliated Investment Company 0.3% |
United States 0.3% |
MainStay U.S. Government Liquidity Fund, 5.242% (f) | 523,318 | | $ 523,318 |
Unaffiliated Investment Company 0.1% |
United States 0.1% |
Invesco Government & Agency Portfolio, 5.309% (f)(g) | 286,440 | | 286,440 |
Total Short-Term Investments (Cost $809,758) | | | 809,758 |
Total Investments, Before Investments Sold Short (Cost $168,036,500) | 99.3% | | 174,070,921 |
Investments Sold Short (0.0)% ‡ |
Common Stock Sold Short (0.0)% ‡ |
Australia (0.0)% ‡ |
Virgin Australia Airlines Holdings Pty. Ltd. (Passenger Airlines) (b)(d)(e) | (444,108) | | (29) |
Total Common Stock Sold Short (Proceeds $0) | | | (29) |
|
| Number of Rights | | |
|
Rights Sold Short (0.0)% ‡ |
United States (0.0)% ‡ |
Intercell (Biotechnology) Expires 12/31/49 (b)(d)(e) | (19,159) | | (2) |
Total Rights Sold Short (Proceeds $0) | | | (2) |
Total Investments Sold Short (Proceeds $0) | | | (31) |
Total Investments, Net of Investments Sold Short (Cost $168,036,500) | 99.3% | | 174,070,890 |
Other Assets, Less Liabilities | 0.7 | | 1,218,635 |
Net Assets | 100.0% | | $ 175,289,525 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
‡ | 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(a)(2) of the Securities Act of 1933, as amended. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was held on loan. As of April 30, 2024, the aggregate market value of securities on loan was $1,760,102; the total market value of collateral held by the Fund was $1,917,849. The market value of the collateral held included non-cash collateral in the form of U.S. Treasury securities with a value of $1,631,409. The Fund received cash collateral with a value of $286,440. (See Note 2(J)) |
(d) | Illiquid security—As of April 30, 2024, the total market value deemed illiquid under procedures approved by the Board of Trustees was $221,853, which represented 0.1% of the Fund’s net assets. |
(e) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(f) | Current yield as of April 30, 2024. |
(g) | Represents a security purchased with cash collateral received for securities on loan. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 1,288 | $ 25,176 | $ (25,941) | $ — | $ — | $ 523 | $ 27 | $ — | 523 |
Abbreviation(s): |
ACWI—All Country World Index |
ADR—American Depositary Receipt |
ETF—Exchange-Traded Fund |
MSCI—Morgan Stanley Capital International |
PCL—Provision for Credit Losses |
REIT—Real Estate Investment Trust |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay WMC International Research Equity Fund |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets and liabilities:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | | | | | | | |
Australia | $ — | | $ 5,489,975 | | $ — | | $ 5,489,975 |
Austria | — | | 1,408,945 | | — | | 1,408,945 |
Belgium | — | | 2,161,436 | | — | | 2,161,436 |
China | 1,343,125 | | 8,640,086 | | — | | 9,983,211 |
Denmark | — | | 4,684,700 | | — | | 4,684,700 |
Finland | — | | 253,504 | | — | | 253,504 |
France | — | | 22,720,312 | | — | | 22,720,312 |
Germany | — | | 14,966,610 | | — | | 14,966,610 |
Hong Kong | — | | 4,702,183 | | — | | 4,702,183 |
India | 1,267,143 | | 2,330,888 | | — | | 3,598,031 |
Indonesia | — | | 540,248 | | — | | 540,248 |
Ireland | — | | 588,133 | | — | | 588,133 |
Italy | 277,091 | | 4,166,394 | | — | | 4,443,485 |
Japan | — | | 24,721,181 | | — | | 24,721,181 |
Netherlands | — | | 6,050,941 | | — | | 6,050,941 |
Nigeria | — | | 404,395 | | — | | 404,395 |
Republic of Korea | — | | 4,002,687 | | — | | 4,002,687 |
Singapore | 1,364,461 | | 1,127,899 | | — | | 2,492,360 |
South Africa | — | | 2,755,577 | | — | | 2,755,577 |
Spain | — | | 126,840 | | — | | 126,840 |
Sweden | — | | 641,077 | | — | | 641,077 |
Switzerland | 624,529 | | 3,242,454 | | — | | 3,866,983 |
Taiwan | — | | 6,485,615 | | — | | 6,485,615 |
Thailand | — | | 45,084 | | — | | 45,084 |
United Kingdom | — | | 19,148,835 | | — | | 19,148,835 |
United States | 68,425 | | 8,933,963 | | — | | 9,002,388 |
All Other Countries | 12,729,746 | | — | | 27,760 | | 12,757,506 |
Total Common Stocks | 17,674,520 | | 150,339,962 | | 27,760 | | 168,042,242 |
Preferred Stocks | 1,183,877 | | 1,581,240 | | — | | 2,765,117 |
Warrants | — | | — | | — | | — |
Exchange-Traded Fund | 2,453,804 | | — | | — | | 2,453,804 |
Short-Term Investments | | | | | | | |
Affiliated Investment Company | 523,318 | | — | | — | | 523,318 |
Unaffiliated Investment Company | 286,440 | | — | | — | | 286,440 |
Total Short-Term Investments | 809,758 | | — | | — | | 809,758 |
Total Investments in Securities | $ 22,121,959 | | $ 151,921,202 | | $ 27,760 | | $ 174,070,921 |
Liability Valuation Inputs | | | | | | | |
Common Stock Sold Short | $ — | | $ — | | $ (29) | | $ (29) |
Rights Sold Short | — | | — | | (2) | | (2) |
Total Investments in Securities Sold Short | $ — | | $ — | | $ (31) | | $ (31) |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
The table below sets forth the diversification of the Fund’s investments by industry.
Industry Diversification
| Value | Percent |
Aerospace & Defense | $ 2,797,679 | 1.6% |
Air Freight & Logistics | 1,069,785 | 0.6 |
Automobile Components | 2,163,829 | 1.2 |
Automobiles | 2,733,232 | 1.6 |
Banks | 23,104,115 | 13.2 |
Beverages | 1,437,723 | 0.8 |
Biotechnology | 1,353,942 | 0.8 |
Building Products | 923,973 | 0.5 |
Capital Markets | 2,763,026 | 1.6 |
Chemicals | 2,070,081 | 1.2 |
Construction & Engineering | 817,521 | 0.5 |
Construction Materials | 159,994 | 0.1 |
Consumer Staples Distribution & Retail | 2,898,838 | 1.7 |
Containers & Packaging | 163,199 | 0.1 |
Distributors | 185,269 | 0.1 |
Diversified REITs | 765,285 | 0.4 |
Diversified Telecommunication Services | 2,467,477 | 1.4 |
Electric Utilities | 1,899,169 | 1.1 |
Electrical Equipment | 1,938,843 | 1.1 |
Electronic Equipment, Instruments & Components | 2,647,409 | 1.5 |
Entertainment | 28,040 | 0.0‡ |
Exchange-Traded Fund | 2,453,804 | 1.4 |
Financial Services | 1,170,647 | 0.7 |
Gas Utilities | 840,642 | 0.5 |
Ground Transportation | 1,919,248 | 1.1 |
Health Care Equipment & Supplies | 1,946,350 | 1.1 |
Hotels, Restaurants & Leisure | 2,659,882 | 1.5 |
Household Durables | 2,596,621 | 1.5 |
Household Products | 1,322,895 | 0.8 |
Independent Power and Renewable Electricity Producers | 709,733 | 0.4 |
Industrial Conglomerates | 2,029,675 | 1.2 |
Industrial REITs | 1,106,868 | 0.6 |
Insurance | 10,834,356 | 6.2 |
Interactive Media & Services | 3,582,775 | 2.0 |
IT Services | 1,892,047 | 1.1 |
Life Sciences Tools & Services | 1,597,176 | 0.9 |
Machinery | 4,439,801 | 2.5 |
Media | 1,338,719 | 0.8 |
Metals & Mining | 8,412,601 | 4.8 |
Multi-Utilities | 2,342,020 | 1.3 |
Oil, Gas & Consumable Fuels | 8,862,697 | 5.1 |
Passenger Airlines | 782,696 | 0.4 |
Personal Care Products | 7,392,416 | 4.2 |
| Value | | Percent |
Pharmaceuticals | $ 12,709,528 | | 7.3% |
Professional Services | 3,103,590 | | 1.8 |
Real Estate Management & Development | 3,411,874 | | 1.9 |
Retail REITs | 792,748 | | 0.4 |
Semiconductors & Semiconductor Equipment | 12,530,188 | | 7.1 |
Software | 1,695,363 | | 1.0 |
Technology Hardware, Storage & Peripherals | 2,675,195 | | 1.5 |
Textiles, Apparel & Luxury Goods | 4,686,474 | | 2.7 |
Trading Companies & Distributors | 3,705,491 | | 2.1 |
Transportation Infrastructure | 126,840 | | 0.1 |
Water Utilities | 902,739 | | 0.5 |
Wireless Telecommunication Services | 2,299,035 | | 1.3 |
| 173,261,163 | | 98.9 |
Short-Term Investments | 809,758 | | 0.4 |
Other Assets, Less Liabilities* | 1,218,604 | | 0.7 |
Net Assets | $175,289,525 | | 100.0% |
* | Includes Investments sold short (details are shown below). |
The table below sets forth the diversification of the Fund's investments sold short by industry.
| Value | | Percent |
Biotechnology | $ (2) | | (0.0)%‡ |
Passenger Airlines | (29) | | (0.0)‡ |
| $(31) | | (0.0)%‡ |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
‡ | 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.
16 | MainStay WMC International Research Equity Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities before investments sold short, at value (identified cost $167,513,182) including securities on loan of $1,760,102 | $173,547,603 |
Investment in affiliated investment companies, at value (identified cost $523,318) | 523,318 |
Cash denominated in foreign currencies (identified cost $220,964) | 220,832 |
Cash collateral on deposit for short positions | 23,441 |
Receivables: | |
Investment securities sold | 2,199,249 |
Dividends | 1,114,930 |
Securities lending | 1,057 |
Fund shares sold | 450 |
Other assets | 50,809 |
Total assets | 177,681,689 |
Liabilities |
Investments sold short (proceeds $0) | 31 |
Cash collateral received for securities on loan | 286,440 |
Due to custodian | 2,308 |
Payables: | |
Investment securities purchased | 1,807,741 |
Manager (See Note 3) | 100,283 |
Foreign capital gains tax (See Note 2) | 89,459 |
Custodian | 57,950 |
Fund shares redeemed | 20,204 |
Transfer agent (See Note 3) | 12,227 |
Shareholder communication | 8,083 |
NYLIFE Distributors (See Note 3) | 3,286 |
Professional fees | 2,753 |
Accrued expenses | 1,399 |
Total liabilities | 2,392,164 |
Net assets | $175,289,525 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 23,193 |
Additional paid-in-capital | 267,315,192 |
| 267,338,385 |
Total distributable earnings (loss) | (92,048,860) |
Net assets | $175,289,525 |
Class A | |
Net assets applicable to outstanding shares | $ 10,458,167 |
Shares of beneficial interest outstanding | 1,391,802 |
Net asset value per share outstanding | $ 7.51 |
Maximum sales charge (5.50% of offering price) | 0.44 |
Maximum offering price per share outstanding | $ 7.95 |
Investor Class | |
Net assets applicable to outstanding shares | $ 1,712,561 |
Shares of beneficial interest outstanding | 228,977 |
Net asset value per share outstanding | $ 7.48 |
Maximum sales charge (5.00% of offering price) | 0.39 |
Maximum offering price per share outstanding | $ 7.87 |
Class C | |
Net assets applicable to outstanding shares | $ 941,839 |
Shares of beneficial interest outstanding | 128,097 |
Net asset value and offering price per share outstanding | $ 7.35 |
Class I | |
Net assets applicable to outstanding shares | $162,176,958 |
Shares of beneficial interest outstanding | 21,444,329 |
Net asset value and offering price per share outstanding | $ 7.56 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $162,944) | $ 2,210,599 |
Dividends-affiliated | 26,774 |
Securities lending, net | 7,090 |
Total income | 2,244,463 |
Expenses | |
Manager (See Note 3) | 619,482 |
Custodian | 51,490 |
Professional fees | 48,659 |
Transfer agent (See Note 3) | 31,990 |
Registration | 28,262 |
Distribution/Service—Class A (See Note 3) | 13,027 |
Distribution/Service—Investor Class (See Note 3) | 2,139 |
Distribution/Service—Class C (See Note 3) | 5,783 |
Trustees | 1,947 |
Shareholder communication | 1,554 |
Miscellaneous | 5,473 |
Total expenses before waiver/reimbursement | 809,806 |
Expense waiver/reimbursement from Manager (See Note 3) | (71,025) |
Net expenses | 738,781 |
Net investment income (loss) | 1,505,682 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions(a) | 6,352,906 |
Foreign currency transactions | (29,051) |
Net realized gain (loss) | 6,323,855 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments(b) | 18,217,992 |
Investments sold short | (1) |
Translation of other assets and liabilities in foreign currencies | (2,894) |
Net change in unrealized appreciation (depreciation) | 18,215,097 |
Net realized and unrealized gain (loss) | 24,538,952 |
Net increase (decrease) in net assets resulting from operations | $26,044,634 |
(a) | Realized gain (loss) on security transactions recorded net of foreign capital gains tax in the amount of $(10,644). |
(b) | Net change in unrealized appreciation (depreciation) on investments recorded net of foreign capital gains tax in the amount of $(89,459). |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay WMC International Research Equity Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 1,505,682 | $ 2,997,328 |
Net realized gain (loss) | 6,323,855 | (1,450,006) |
Net change in unrealized appreciation (depreciation) | 18,215,097 | 19,918,491 |
Net increase (decrease) in net assets resulting from operations | 26,044,634 | 21,465,813 |
Distributions to shareholders: | | |
Class A | (187,602) | (185,367) |
Investor Class | (25,017) | (23,565) |
Class C | (3,362) | (5,091) |
Class I | (3,017,802) | (3,101,573) |
Total distributions to shareholders | (3,233,783) | (3,315,596) |
Capital share transactions: | | |
Net proceeds from sales of shares | 16,985,358 | 4,867,268 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 3,226,737 | 3,308,751 |
Cost of shares redeemed | (14,048,243) | (42,023,793) |
Increase (decrease) in net assets derived from capital share transactions | 6,163,852 | (33,847,774) |
Net increase (decrease) in net assets | 28,974,703 | (15,697,557) |
Net Assets |
Beginning of period | 146,314,822 | 162,012,379 |
End of period | $175,289,525 | $146,314,822 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 6.52 | | $ 5.90 | | $ 8.16 | | $ 6.40 | | $ 7.77 | | $ 7.93 |
Net investment income (loss) (a) | 0.05 | | 0.11 | | 0.12 | | 0.09 | | 0.06 | | 0.15 |
Net realized and unrealized gain (loss) | 1.07 | | 0.62 | | (2.18) | | 1.81 | | (0.70) | | 0.10 |
Total from investment operations | 1.12 | | 0.73 | | (2.06) | | 1.90 | | (0.64) | | 0.25 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.13) | | (0.11) | | (0.20) | | (0.14) | | (0.73) | | (0.41) |
Net asset value at end of period | $ 7.51 | | $ 6.52 | | $ 5.90 | | $ 8.16 | | $ 6.40 | | $ 7.77 |
Total investment return (b) | 17.31% | | 12.34% | | (25.89)% | | 29.93% | | (9.21)% | | 3.83% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.52%†† | | 1.60% | | 1.67% | | 1.09% | | 0.89% | | 2.04% |
Net expenses (c) | 1.14%†† | | 1.15% | | 1.15%(d) | | 1.31%(d) | | 1.63%(d) | | 1.75%(d) |
Expenses (before waiver/reimbursement) (c) | 1.20%†† | | 1.21% | | 1.19%(d) | | 1.31%(d) | | 1.63%(d) | | 1.75%(d) |
Portfolio turnover rate | 57% | | 85% | | 65% | | 117% | | 136% | | 182% |
Net assets at end of period (in 000’s) | $ 10,458 | | $ 9,866 | | $ 10,371 | | $ 15,492 | | $ 12,373 | | $ 19,557 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The expense ratios presented below show the impact of short sales expense: |
Year Ended | | Net Expenses (excluding short sale expenses) | | Short Sales Expenses |
October 31, 2022 | | 1.15% | | 0.00%(e) |
October 31, 2021 | | 1.30% | | 0.01% |
October 31, 2020 | | 1.60% | | 0.03% |
October 31, 2019 | | 1.64% | | 0.11% |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay WMC International Research Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 6.48 | | $ 5.87 | | $ 8.11 | | $ 6.36 | | $ 7.73 | | $ 7.90 |
Net investment income (loss) (a) | 0.04 | | 0.08 | | 0.09 | | 0.05 | | 0.04 | | 0.15 |
Net realized and unrealized gain (loss) | 1.06 | | 0.62 | | (2.16) | | 1.82 | | (0.70) | | 0.08 |
Total from investment operations | 1.10 | | 0.70 | | (2.07) | | 1.87 | | (0.66) | | 0.23 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.10) | | (0.09) | | (0.17) | | (0.12) | | (0.71) | | (0.40) |
Net asset value at end of period | $ 7.48 | | $ 6.48 | | $ 5.87 | | $ 8.11 | | $ 6.36 | | $ 7.73 |
Total investment return (b) | 17.15% | | 11.84% | | (26.07)% | | 29.66% | | (9.47)% | | 3.54% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.14%†† | | 1.23% | | 1.35% | | 0.64% | | 0.66% | | 2.00% |
Net expenses (c) | 1.52%†† | | 1.52% | | 1.46%(d) | | 1.63%(d) | | 1.89%(d) | | 1.93%(d) |
Expenses (before waiver/reimbursement) (c) | 1.62%†† | | 1.59% | | 1.50%(d) | | 1.63%(d) | | 1.89%(d) | | 1.93%(d) |
Portfolio turnover rate | 57% | | 85% | | 65% | | 117% | | 136% | | 182% |
Net assets at end of period (in 000's) | $ 1,713 | | $ 1,597 | | $ 1,624 | | $ 2,487 | | $ 2,731 | | $ 3,690 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The expense ratios presented below show the impact of short sales expense: |
Year Ended | | Net Expenses (excluding short sale expenses) | | Short Sales Expenses |
October 31, 2022 | | 1.46% | | 0.00%(e) |
October 31, 2021 | | 1.62% | | 0.01% |
October 31, 2020 | | 1.86% | | 0.03% |
October 31, 2019 | | 1.81% | | 0.12% |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 6.32 | | $ 5.70 | | $ 7.87 | | $ 6.16 | | $ 7.49 | | $ 7.63 |
Net investment income (loss) (a) | 0.01 | | 0.03 | | 0.04 | | 0.00‡ | | (0.01) | | 0.08 |
Net realized and unrealized gain (loss) | 1.04 | | 0.60 | | (2.11) | | 1.76 | | (0.68) | | 0.10 |
Total from investment operations | 1.05 | | 0.63 | | (2.07) | | 1.76 | | (0.69) | | 0.18 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.02) | | (0.01) | | (0.10) | | (0.05) | | (0.64) | | (0.32) |
Net asset value at end of period | $ 7.35 | | $ 6.32 | | $ 5.70 | | $ 7.87 | | $ 6.16 | | $ 7.49 |
Total investment return (b) | 16.60% | | 11.10% | | (26.65)% | | 28.66% | | (10.16)% | | 2.81% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.31%†† | | 0.49% | | 0.56% | | 0.01% | | (0.22)% | | 1.14% |
Net expenses (c) | 2.27%†† | | 2.27% | | 2.21%(d) | | 2.38%(d) | | 2.64%(d) | | 2.66%(d) |
Expenses (before waiver/reimbursement) (c) | 2.36%†† | | 2.34% | | 2.25%(d) | | 2.38%(d) | | 2.64%(d) | | 2.66%(d) |
Portfolio turnover rate | 57% | | 85% | | 65% | | 117% | | 136% | | 182% |
Net assets at end of period (in 000’s) | $ 942 | | $ 1,325 | | $ 2,458 | | $ 5,340 | | $ 6,229 | | $ 14,203 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The expense ratios presented below show the impact of short sales expense: |
Year Ended | | Net Expenses (excluding short sale expenses) | | Short Sales Expenses |
October 31, 2022 | | 2.21% | | 0.00%(e) |
October 31, 2021 | | 2.37% | | 0.01% |
October 31, 2020 | | 2.61% | | 0.03% |
October 31, 2019 | | 2.55% | | 0.11% |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay WMC International Research Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 6.57 | | $ 5.95 | | $ 8.22 | | $ 6.45 | | $ 7.83 | | $ 8.00 |
Net investment income (loss) (a) | 0.07 | | 0.13 | | 0.14 | | 0.10 | | 0.08 | | 0.17 |
Net realized and unrealized gain (loss) | 1.07 | | 0.62 | | (2.19) | | 1.83 | | (0.71) | | 0.10 |
Total from investment operations | 1.14 | | 0.75 | | (2.05) | | 1.93 | | (0.63) | | 0.27 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.15) | | (0.13) | | (0.22) | | (0.16) | | (0.75) | | (0.44) |
Net asset value at end of period | $ 7.56 | | $ 6.57 | | $ 5.95 | | $ 8.22 | | $ 6.45 | | $ 7.83 |
Total investment return (b) | 17.53% | | 12.58% | | (25.61)% | | 30.21% | | (8.98)% | | 4.08% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 1.86%†† | | 1.87% | | 1.95% | | 1.26% | | 1.19% | | 2.20% |
Net expenses (c) | 0.86%†† | | 0.86% | | 0.86%(d) | | 1.06%(d) | | 1.38%(d) | | 1.50%(d) |
Expenses (before waiver/reimbursement) (c) | 0.95%†† | | 0.96% | | 0.94%(d) | | 1.08%(d) | | 1.38%(d) | | 1.50%(d) |
Portfolio turnover rate | 57% | | 85% | | 65% | | 117% | | 136% | | 182% |
Net assets at end of period (in 000’s) | $ 162,177 | | $ 133,527 | | $ 147,559 | | $ 207,352 | | $ 230,100 | | $ 281,279 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
(d) | The expense ratios presented below show the impact of short sales expense: |
Year Ended | | Net Expenses (excluding short sale expenses) | | Short Sales Expenses |
October 31, 2022 | | 0.86% | | 0.00%(e) |
October 31, 2021 | | 1.05% | | 0.01% |
October 31, 2020 | | 1.35% | | 0.03% |
October 31, 2019 | | 1.40% | | 0.10% |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay WMC International Research Equity Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | September 28, 2007 |
Investor Class | February 28, 2008 |
Class C | September 28, 2007 |
Class I | September 28, 2007 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I shares are offered at NAV without a sales charge. Depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. 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 is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that
24 | MainStay WMC International Research Equity Fund |
establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value
determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Certain securities held by the Fund may principally trade in foreign markets. Events may occur between the time the foreign markets close and the time at which the Fund's 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 Valuation Designee conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Valuation Designee may, pursuant to the Valuation Procedures, adjust the value of the local price to reflect the estimated 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, certain 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 Valuation Procedures and are generally categorized as Level 2 in the hierarchy.
If the principal market of certain foreign equity securities is closed in observance of a local foreign holiday, these securities are valued using the last closing price of regular trading on the relevant exchange and fair valued by applying factors provided by a third-party vendor in accordance with the Valuation Procedures. These securities are generally categorized as Level 2 in the hierarchy.
Notes to Financial Statements (Unaudited) (continued)
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Exchange-traded funds (“ETFs”) are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
A portfolio investment may be classified as an illiquid investment under the Trust's written liquidity risk management program and related procedures (“Liquidity Program”). Illiquidity of an investment might prevent the sale of such investment at a time when the Manager or the Subadvisor might wish to sell, and these investments could have the effect of decreasing the overall level of the Fund's liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid investments, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary materially from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid investments may result in a loss or may be
costly to the Fund. An illiquid investment is any investment that the Manager or Subadvisor reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The liquidity classification of each investment will be made using information obtained after reasonable inquiry and taking into account, among other things, relevant market, trading and investment-specific considerations in accordance with the Liquidity Program. Illiquid investments are often fair valued in accordance with the Fund's procedures described above. The liquidity of the Fund's investments was determined as of April 30, 2024, and can change at any time.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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) Foreign Taxes. The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which it invests. A portion of the taxes on gains on investments or currency purchases/repatriation may be reclaimable. The Fund will accrue such taxes and reclaims as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
The Fund may be subject to taxation on realized capital gains, repatriation proceeds and other transaction-based taxes imposed by certain countries in which it invests. The Fund will accrue such taxes as applicable based upon its current interpretation of tax rules and regulations that exist in the market in which it invests. Capital gains taxes relating to positions still held are reflected as a liability in the Statement of Assets and Liabilities, as well as an adjustment to the Fund's net unrealized appreciation (depreciation). Taxes related to capital gains realized, if any, are reflected as part of net realized gain (loss) in the Statement of Operations. Changes in tax liabilities related to capital gains taxes on unrealized investment gains, if any, are reflected as part of the change in net unrealized
26 | MainStay WMC International Research Equity Fund |
appreciation (depreciation) on investments in the Statement of Operations. Transaction-based charges are generally assessed as a percentage of the transaction amount.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in ETFs and mutual funds, which are subject to management fees and other fees that may cause the costs of investing in ETFs and mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of ETFs and mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(G) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 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 Sold Short. During the period a short position is open, depending on the nature and type of security, a short position is reflected as a liability and is marked to market in accordance with the valuation methodologies previously detailed (See Note 2(A)). Liabilities for securities sold short are closed out by purchasing the applicable securities for delivery to the counterparty broker. A gain, limited to the price at which the Fund 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. Interest on short positions held is accrued daily, while dividends declared on short positions existing on the record date are recorded on the ex-dividend date as a dividend expense in the Statement of Operations. Broker fees and other expenses related to securities sold short are disclosed in the Statement of Operations. Short sales involve risk of loss in excess of the related amounts reflected in the Statement of Assets and Liabilities. During the six-month period ended April 30, 2024, the Fund did not enter into any securities sold short.
(J) 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may
Notes to Financial Statements (Unaudited) (continued)
include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(K) Rights and Warrants. Rights are certificates that permit the holder to purchase a certain number of shares, or a fractional share, of a new stock from the issuer at a specific price. Warrants are instruments that entitle the holder to buy an equity security at a specific price for a specific period of time. 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.
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 its investment in warrants if such warrants are not exercised by the date of its expiration. The Fund is exposed to risk until the sale or exercise of each right or warrant is completed.
(L) Foreign Securities Risk. The Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult to value. 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, among other things, economic or political developments in a specific country, industry or region.
(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Wellington Management Company LLP ("Wellington" or the "Subadvisor"), a registered investment adviser, serves as the 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 ("Subadvisory Agreement") between New York Life Investments and Wellington, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.75% of average daily net assets of the Fund.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: 1.18% for Class A shares and 0.86% for Class I shares. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
New York Life Investments has agreed to voluntarily waive fees and/or reimburse expenses of the appropriate class of the Fund so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation,
28 | MainStay WMC International Research Equity Fund |
extraordinary expenses, brokerage and other transaction expenses relating to the purchase and sale of portfolio investments, and acquired (underlying) fund fees and expenses) of a class do not exceed the following percentages of average daily net assets: 1.95% for Investor Class shares and 2.70% for Class C shares. These voluntary waivers or reimbursements may be discontinued at any time without notice.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $619,482 and waived fees and/or reimbursed expenses, including the waiver/reimbursement of certain class specific expenses in the amount of $71,025 and paid the Subadvisor fees in the amount of $244,999.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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, for a total 12b-1 fee of 1.00%. Class I shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $124 and $65, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A shares during the six-month period ended April 30, 2024, of $59.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 1,642 | $ — |
Investor Class | 3,877 | (395) |
Class C | 2,545 | (178) |
Class I | 23,926 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
Notes to Financial Statements (Unaudited) (continued)
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $168,992,980 | $17,693,614 | $(12,615,704) | $5,077,910 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $104,421,629, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $95,295 | $9,126 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $3,315,596 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily
Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $96,804 and $92,916, respectively.
The Fund may purchase securities from or sell securities to other portfolios managed by the Subadvisor. These interportfolio transactions are primarily used for cash management purposes and are made pursuant to Rule 17a-7 under the 1940 Act. The Rule 17a-7 transactions during the six-month period ended April 30, 2024, were as follows:
Purchases (000's) | Sales (000's) | Realized Gain / (Loss) (000's) |
$2,381 | $64 | $(13) |
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Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 66,392 | $ 483,519 |
Shares issued to shareholders in reinvestment of distributions | 26,271 | 181,798 |
Shares redeemed | (222,939) | (1,606,672) |
Net increase (decrease) in shares outstanding before conversion | (130,276) | (941,355) |
Shares converted into Class A (See Note 1) | 9,305 | 68,337 |
Net increase (decrease) | (120,971) | $ (873,018) |
Year ended October 31, 2023: | | |
Shares sold | 151,460 | $ 1,033,866 |
Shares issued to shareholders in reinvestment of distributions | 27,569 | 180,852 |
Shares redeemed | (435,884) | (2,976,755) |
Net increase (decrease) in shares outstanding before conversion | (256,855) | (1,762,037) |
Shares converted into Class A (See Note 1) | 13,637 | 92,922 |
Shares converted from Class A (See Note 1) | (1,063) | (7,142) |
Net increase (decrease) | (244,281) | $ (1,676,257) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,886 | $ 13,402 |
Shares issued to shareholders in reinvestment of distributions | 3,582 | 24,718 |
Shares redeemed | (18,063) | (128,689) |
Net increase (decrease) in shares outstanding before conversion | (12,595) | (90,569) |
Shares converted into Investor Class (See Note 1) | 4,090 | 29,697 |
Shares converted from Investor Class (See Note 1) | (8,931) | (65,380) |
Net increase (decrease) | (17,436) | $ (126,252) |
Year ended October 31, 2023: | | |
Shares sold | 7,994 | $ 55,445 |
Shares issued to shareholders in reinvestment of distributions | 3,565 | 23,315 |
Shares redeemed | (38,082) | (262,287) |
Net increase (decrease) in shares outstanding before conversion | (26,523) | (183,527) |
Shares converted into Investor Class (See Note 1) | 5,089 | 34,768 |
Shares converted from Investor Class (See Note 1) | (8,923) | (61,321) |
Net increase (decrease) | (30,357) | $ (210,080) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 990 | $ 7,111 |
Shares issued to shareholders in reinvestment of distributions | 494 | 3,362 |
Shares redeemed | (78,529) | (555,580) |
Net increase (decrease) in shares outstanding before conversion | (77,045) | (545,107) |
Shares converted from Class C (See Note 1) | (4,584) | (32,654) |
Net increase (decrease) | (81,629) | $ (577,761) |
Year ended October 31, 2023: | | |
Shares sold | 12,510 | $ 85,290 |
Shares issued to shareholders in reinvestment of distributions | 793 | 5,091 |
Shares redeemed | (229,803) | (1,512,804) |
Net increase (decrease) in shares outstanding before conversion | (216,500) | (1,422,423) |
Shares converted from Class C (See Note 1) | (5,037) | (33,657) |
Net increase (decrease) | (221,537) | $ (1,456,080) |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 2,286,356 | $ 16,481,326 |
Shares issued to shareholders in reinvestment of distributions | 433,457 | 3,016,859 |
Shares redeemed | (1,589,312) | (11,757,302) |
Net increase (decrease) | 1,130,501 | $ 7,740,883 |
Year ended October 31, 2023: | | |
Shares sold | 522,048 | $ 3,692,667 |
Shares issued to shareholders in reinvestment of distributions | 469,620 | 3,099,493 |
Shares redeemed | (5,473,111) | (37,271,947) |
Net increase (decrease) in shares outstanding before conversion | (4,481,443) | (30,479,787) |
Shares converted from Class I (See Note 1) | (3,834) | (25,570) |
Net increase (decrease) | (4,485,277) | $(30,505,357) |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Notes to Financial Statements (Unaudited) (continued)
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
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Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay WMC International Research Equity Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”) and the Subadvisory Agreement between New York Life Investments and Wellington Management Company LLP (“WMC”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and WMC in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and WMC in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or WMC that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, WMC personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and WMC; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and WMC; (iii) the costs of the services provided, and profits realized, by New York Life Investments and WMC with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and WMC. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and WMC resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and WMC
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by WMC, evaluating the performance of WMC, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of WMC and ongoing analysis of, and interactions with, WMC with respect to, among other things, the Fund’s investment performance and risks as well as WMC’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that WMC provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated WMC’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and WMC’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at WMC. The Board considered New York Life Investments’ and WMC’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and WMC and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered WMC’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and WMC regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
34 | MainStay WMC International Research Equity Fund |
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of WMC and the members of the Board’s Investment Committee, which generally occur on an annual basis. In considering the investment performance of the Fund, the Board noted that the Fund underperformed its peer funds for the three-, five- and ten-year periods ended July 31, 2023, and performed favorably relative to its peer funds for the one-year period ended July 31, 2023. The Board considered its discussions with representatives from New York Life Investments and WMC regarding the Fund’s investment performance.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and WMC
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates and WMC due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. With respect to the profitability of WMC’s relationship with the Fund, the Board considered information from New York Life Investments that WMC’s subadvisory fee reflected an arm’s-length negotiation and that this fee is paid by New York Life Investments, not the Fund, and the relevance of WMC’s profitability was considered by the Trustees in that context. On this basis, the Board primarily considered the costs and profitability for New York Life Investments and its affiliates with respect to the Fund.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and WMC, and profitability of New York Life Investments and its affiliates and WMC due to their relationships with the Fund, the Board
considered, among other factors, New York Life Investments’ and its affiliates’ and WMC’s continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and WMC and acknowledged that New York Life Investments and WMC must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and WMC to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates and WMC and its affiliates due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to WMC from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to WMC in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In this regard, the Board also requested and considered information from New York Life Investments concerning other material business relationships between WMC and its affiliates and New York Life Investments and its affiliates and considered the existence of a strategic partnership between New York Life Investments and that relates to certain current and future products and represents a potential conflict of interest associated with New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
and distributor. The Board considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund were not excessive, other expected benefits that may accrue to New York Life Investments and its affiliates are reasonable and other expected benefits that may accrue to WMC and its affiliates are consistent with those expected for a subadvisor to a mutual fund. With respect to WMC, the Board considered that any profits realized by WMC due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and WMC, acknowledging that any such profits are based on the subadvisory fee paid to WMC by New York Life Investments, not the Fund.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to WMC is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and WMC on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of
voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. The Board reviewed information from New York Life Investments showing how the Fund’s
36 | MainStay WMC International Research Equity Fund |
management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
38 | MainStay WMC International Research Equity Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022276 MS081-24 | MSWIRE10-06/24 |
(NYLIM) NL530
MainStay WMC Small Companies Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Five Years | Ten Years | Gross Expense Ratio3 |
Class A Shares | Maximum 5.50% Initial Sales Charge | With sales charges | 1/2/2004 | 17.64% | 7.56% | 2.21% | 4.01% | 1.22% |
| | Excluding sales charges | | 24.49 | 13.82 | 3.38 | 4.60 | 1.22 |
Investor Class Shares4 | Maximum 5.00% Initial Sales Charge | With sales charges | 2/28/2008 | 18.14 | 7.86 | 1.93 | 3.73 | 1.70 |
| | Excluding sales charges | | 24.36 | 13.54 | 3.09 | 4.32 | 1.70 |
Class B Shares5 | Maximum 5.00% CDSC | With sales charges | 1/2/2004 | 18.83 | 7.67 | 2.04 | 3.54 | 2.46 |
| if Redeemed Within the First Six Years of Purchase | Excluding sales charges | | 23.83 | 12.67 | 2.32 | 3.54 | 2.46 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 12/30/2002 | 22.85 | 11.67 | 2.32 | 3.54 | 2.46 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 23.85 | 12.67 | 2.32 | 3.54 | 2.46 |
Class I Shares | No Sales Charge | | 1/12/1987 | 24.61 | 14.09 | 3.63 | 4.85 | 0.97 |
1. | The Fund replaced its subadvisor effective April 1, 2019, and changed its investment objective and principal investment strategies. Effective March 5, 2021, the Fund replaced its subadvisor and modified its principal investment strategies. The past performance in the graph and table prior to that date reflects the Fund’s prior subadvisors, investment objective and principal investment strategies. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Prior to June 30, 2020, the maximum initial sales charge was 5.50%, which is reflected in the applicable average annual total return figures shown. |
5. | Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Russell 3000® Index2 | 21.09% | 22.30% | 12.43% | 11.81% |
Russell 2000® Index3 | 19.66 | 13.32 | 5.83 | 7.22 |
Morningstar Small Blend Category Average4 | 18.81 | 13.98 | 7.17 | 7.28 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index, which represents a broad measure of market performance, as a replacement for the Russell 2000® Index. 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. |
3. | The Russell 2000® Index, which is generally representative of the market sectors or types of investments in which the Fund invests, measures the performance of the small-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. |
4. | The Morningstar Small Blend Category Average is representative of funds that favor U.S. firms at the smaller end of the market-capitalization range. Some aim to own an array of value and growth stocks while others employ a discipline that leads to holdings with valuations and growth rates close to the small-cap averages. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. The blend style is assigned to funds where neither growth nor value characteristics predominate. Results are based on average total returns of similar funds with all dividends 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 WMC Small Companies Fund |
Cost in Dollars of a $1,000 Investment in MainStay WMC Small Companies Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,244.90 | $ 6.87 | $1,018.75 | $ 6.17 | 1.23% |
Investor Class Shares | $1,000.00 | $1,243.60 | $ 8.31 | $1,017.45 | $ 7.47 | 1.49% |
Class B Shares | $1,000.00 | $1,238.30 | $12.47 | $1,013.72 | $11.22 | 2.24% |
Class C Shares | $1,000.00 | $1,238.50 | $12.47 | $1,013.72 | $11.22 | 2.24% |
Class I Shares | $1,000.00 | $1,246.10 | $ 5.47 | $1,019.99 | $ 4.92 | 0.98% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
Biotechnology | 7.5% |
Banks | 7.4 |
Energy Equipment & Services | 5.8 |
Financial Services | 5.3 |
Chemicals | 4.8 |
Electronic Equipment, Instruments & Components | 4.7 |
Software | 4.4 |
Commercial Services & Supplies | 3.8 |
Semiconductors & Semiconductor Equipment | 3.8 |
Trading Companies & Distributors | 3.7 |
Machinery | 3.7 |
Automobile Components | 3.5 |
Health Care Providers & Services | 3.4 |
Hotels, Restaurants & Leisure | 3.2 |
Metals & Mining | 3.0 |
Ground Transportation | 2.8 |
Health Care Equipment & Supplies | 2.4 |
Household Durables | 2.2 |
Food Products | 1.9 |
Health Care REITs | 1.8% |
Oil, Gas & Consumable Fuels | 1.8 |
Interactive Media & Services | 1.8 |
Diversified Consumer Services | 1.7 |
Consumer Finance | 1.7 |
Pharmaceuticals | 1.6 |
Gas Utilities | 1.6 |
Aerospace & Defense | 1.6 |
Specialized REITs | 1.5 |
Media | 1.5 |
Containers & Packaging | 1.5 |
Communications Equipment | 1.4 |
Real Estate Management & Development | 1.3 |
Electric Utilities | 1.1 |
Exchange–Traded Fund | 0.5 |
Short–Term Investments | 2.1 |
Other Assets, Less Liabilities | –1.8 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Carpenter Technology Corp. |
2. | Skyline Champion Corp. |
3. | Semtech Corp. |
4. | MRC Global, Inc. |
5. | Interface, Inc. |
6. | Hims & Hers Health, Inc. |
7. | Tidewater, Inc. |
8. | Freshpet, Inc. |
9. | Blue Bird Corp. |
10. | Minerals Technologies, Inc. |
8 | MainStay WMC Small Companies Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 99.2% |
Aerospace & Defense 1.6% |
BWX Technologies, Inc. | 44,748 | $ 4,285,516 |
Automobile Components 3.5% |
Dana, Inc. | 159,402 | 1,981,367 |
Goodyear Tire & Rubber Co. (The) (a) | 367,765 | 4,398,470 |
XPEL, Inc. (a) | 61,026 | 3,206,916 |
| | 9,586,753 |
Banks 7.4% |
Banner Corp. | 63,345 | 2,763,742 |
OFG Bancorp | 80,439 | 2,904,652 |
Old National Bancorp | 234,726 | 3,882,368 |
Stellar Bancorp, Inc. | 123,138 | 2,733,664 |
United Community Banks, Inc. | 109,491 | 2,762,458 |
Veritex Holdings, Inc. | 133,883 | 2,608,041 |
WSFS Financial Corp. | 60,666 | 2,592,258 |
| | 20,247,183 |
Biotechnology 7.5% |
4D Molecular Therapeutics, Inc. (a) | 6,271 | 150,065 |
89bio, Inc. (a) | 13,184 | 112,196 |
ACADIA Pharmaceuticals, Inc. (a) | 18,668 | 311,942 |
Agios Pharmaceuticals, Inc. (a) | 12,834 | 417,105 |
Akero Therapeutics, Inc. (a) | 9,888 | 196,672 |
Alkermes plc (a) | 23,237 | 570,236 |
Alpine Immune Sciences, Inc. (a) | 6,261 | 404,398 |
ALX Oncology Holdings, Inc. (a)(b) | 5,892 | 100,282 |
Amicus Therapeutics, Inc. (a) | 53,952 | 538,980 |
Apogee Therapeutics, Inc. (a)(b) | 3,140 | 157,942 |
Arcellx, Inc. (a) | 5,056 | 252,901 |
Arcutis Biotherapeutics, Inc. (a) | 14,993 | 124,742 |
Ardelyx, Inc. (a) | 33,719 | 215,802 |
Arrowhead Pharmaceuticals, Inc. (a) | 16,422 | 371,466 |
Avidity Biosciences, Inc. (a) | 12,474 | 300,998 |
Beam Therapeutics, Inc. (a)(b) | 10,617 | 225,293 |
Biohaven Ltd. (a) | 9,110 | 353,468 |
Biomea Fusion, Inc. (a)(b) | 4,492 | 48,244 |
Blueprint Medicines Corp. (a) | 8,994 | 821,512 |
Cabaletta Bio, Inc. (a) | 6,398 | 68,107 |
Caribou Biosciences, Inc. (a) | 18,483 | 67,093 |
Celldex Therapeutics, Inc. (a) | 11,619 | 434,783 |
Crinetics Pharmaceuticals, Inc. (a) | 12,610 | 552,570 |
Cytokinetics, Inc. (a) | 12,863 | 788,759 |
Day One Biopharmaceuticals, Inc. (a) | 11,891 | 203,336 |
Denali Therapeutics, Inc. (a) | 17,200 | 265,568 |
Disc Medicine, Inc. (a) | 3,247 | 90,396 |
Dyne Therapeutics, Inc. (a) | 8,177 | 206,960 |
| Shares | Value |
|
Biotechnology (continued) |
Fate Therapeutics, Inc. (a) | 13,874 | $ 54,802 |
Geron Corp. (a) | 101,943 | 400,636 |
Halozyme Therapeutics, Inc. (a) | 17,248 | 657,149 |
Immunovant, Inc. (a) | 9,859 | 270,531 |
Inozyme Pharma, Inc. (a)(b) | 11,570 | 51,024 |
Intellia Therapeutics, Inc. (a)(b) | 13,933 | 298,166 |
Iovance Biotherapeutics, Inc. (a) | 35,508 | 418,284 |
Ironwood Pharmaceuticals, Inc. (a) | 30,636 | 237,429 |
Krystal Biotech, Inc. (a) | 2,995 | 458,594 |
Kura Oncology, Inc. (a) | 11,074 | 217,272 |
Kymera Therapeutics, Inc. (a) | 8,945 | 300,731 |
MacroGenics, Inc. (a) | 9,596 | 141,829 |
Mersana Therapeutics, Inc. (a) | 19,601 | 62,135 |
Morphic Holding, Inc. (a) | 7,807 | 212,897 |
Myriad Genetics, Inc. (a) | 12,241 | 239,556 |
Nkarta, Inc. (a) | 7,905 | 52,805 |
Nurix Therapeutics, Inc. (a) | 9,604 | 115,440 |
Nuvalent, Inc., Class A (a) | 5,260 | 362,309 |
Olema Pharmaceuticals, Inc. (a) | 8,780 | 89,293 |
Prothena Corp. plc (a) | 9,091 | 184,911 |
PTC Therapeutics, Inc. (a) | 12,115 | 389,497 |
REGENXBIO, Inc. (a) | 8,653 | 132,824 |
Relay Therapeutics, Inc. (a) | 17,219 | 112,268 |
Replimune Group, Inc. (a) | 14,545 | 92,361 |
REVOLUTION Medicines, Inc. (a) | 23,228 | 865,940 |
Rhythm Pharmaceuticals, Inc. (a) | 6,631 | 263,649 |
Rocket Pharmaceuticals, Inc. (a) | 13,719 | 295,233 |
Sage Therapeutics, Inc. (a) | 10,996 | 153,284 |
Sana Biotechnology, Inc. (a) | 11,074 | 99,666 |
Savara, Inc. (a)(b) | 31,988 | 146,505 |
SpringWorks Therapeutics, Inc. (a) | 9,042 | 422,171 |
Syndax Pharmaceuticals, Inc. (a) | 15,226 | 321,725 |
TG Therapeutics, Inc. (a) | 18,765 | 256,330 |
Travere Therapeutics, Inc. (a) | 17,900 | 98,987 |
Twist Bioscience Corp. (a) | 9,042 | 282,382 |
UroGen Pharma Ltd. (a)(b) | 7,409 | 102,392 |
Vaxcyte, Inc. (a) | 14,856 | 899,531 |
Veracyte, Inc. (a) | 15,099 | 295,487 |
Vericel Corp. (a) | 6,757 | 309,944 |
Verve Therapeutics, Inc. (a) | 9,451 | 56,801 |
Viking Therapeutics, Inc. (a) | 11,337 | 902,198 |
Viridian Therapeutics, Inc. (a) | 10,685 | 141,683 |
Voyager Therapeutics, Inc. (a) | 10,394 | 81,281 |
Xencor, Inc. (a) | 13,631 | 285,433 |
Y-mAbs Therapeutics, Inc. (a)(b) | 7,234 | 110,029 |
Zymeworks, Inc. (a) | 12,455 | 106,864 |
| | 20,402,074 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Chemicals 4.8% |
Minerals Technologies, Inc. | 67,684 | $ 4,933,487 |
Quaker Chemical Corp. | 19,015 | 3,546,868 |
Sensient Technologies Corp. | 63,413 | 4,643,100 |
| | 13,123,455 |
Commercial Services & Supplies 3.8% |
Brady Corp., Class A | 79,274 | 4,677,166 |
Interface, Inc. | 379,296 | 5,799,436 |
| | 10,476,602 |
Communications Equipment 1.4% |
Infinera Corp. (a)(b) | 764,979 | 3,687,199 |
Consumer Finance 1.7% |
Enova International, Inc. (a) | 75,081 | 4,544,653 |
Containers & Packaging 1.5% |
Greif, Inc., Class A | 66,296 | 4,062,619 |
Diversified Consumer Services 1.7% |
Laureate Education, Inc. | 326,735 | 4,737,657 |
Electric Utilities 1.1% |
Portland General Electric Co. | 71,907 | 3,108,540 |
Electronic Equipment, Instruments & Components 4.7% |
CTS Corp. | 89,369 | 4,088,632 |
Napco Security Technologies, Inc. | 117,275 | 4,773,093 |
TTM Technologies, Inc. (a) | 273,193 | 4,078,771 |
| | 12,940,496 |
Energy Equipment & Services 5.8% |
Helix Energy Solutions Group, Inc. (a) | 345,536 | 3,711,057 |
Liberty Energy, Inc. | 206,693 | 4,547,246 |
Patterson-UTI Energy, Inc. | 217,555 | 2,353,945 |
Tidewater, Inc. (a) | 57,599 | 5,290,468 |
| | 15,902,716 |
Financial Services 5.3% |
Federal Agricultural Mortgage Corp., Class C | 21,733 | 4,045,163 |
NMI Holdings, Inc., Class A (a) | 121,828 | 3,759,612 |
Remitly Global, Inc. (a) | 204,509 | 3,646,395 |
Shift4 Payments, Inc., Class A (a)(b) | 53,881 | 3,117,555 |
| | 14,568,725 |
| Shares | Value |
|
Food Products 1.9% |
Freshpet, Inc. (a) | 49,834 | $ 5,285,892 |
Gas Utilities 1.6% |
New Jersey Resources Corp. | 100,473 | 4,389,665 |
Ground Transportation 2.8% |
Marten Transport Ltd. | 176,525 | 2,986,803 |
Ryder System, Inc. | 37,623 | 4,584,363 |
| | 7,571,166 |
Health Care Equipment & Supplies 2.4% |
Artivion, Inc. (a) | 215,730 | 4,232,622 |
SI-BONE, Inc. (a) | 163,314 | 2,328,858 |
| | 6,561,480 |
Health Care Providers & Services 3.4% |
Hims & Hers Health, Inc. (a) | 461,997 | 5,788,822 |
Progyny, Inc. (a) | 109,850 | 3,521,791 |
| | 9,310,613 |
Health Care REITs 1.8% |
CareTrust REIT, Inc. | 199,326 | 4,927,339 |
Hotels, Restaurants & Leisure 3.2% |
Hilton Grand Vacations, Inc. (a) | 113,898 | 4,742,713 |
Jack in the Box, Inc. | 71,664 | 4,089,864 |
| | 8,832,577 |
Household Durables 2.2% |
Skyline Champion Corp. (a) | 81,283 | 6,095,412 |
Interactive Media & Services 1.8% |
Taboola.com Ltd. (a) | 1,162,009 | 4,880,438 |
Machinery 3.7% |
Blue Bird Corp. (a) | 157,189 | 5,180,164 |
Greenbrier Cos., Inc. (The) | 99,318 | 4,905,316 |
| | 10,085,480 |
Media 1.5% |
Magnite, Inc. (a) | 469,044 | 4,141,659 |
Metals & Mining 3.0% |
Carpenter Technology Corp. | 75,702 | 6,487,661 |
MP Materials Corp. (a)(b) | 108,297 | 1,732,752 |
| | 8,220,413 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay WMC Small Companies Fund |
| Shares | Value |
Common Stocks (continued) |
Oil, Gas & Consumable Fuels 1.8% |
PBF Energy, Inc., Class A | 92,223 | $ 4,912,719 |
Pharmaceuticals 1.6% |
Amylyx Pharmaceuticals, Inc. (a) | 10,841 | 19,622 |
Arvinas, Inc. (a) | 6,991 | 222,104 |
Axsome Therapeutics, Inc. (a)(b) | 5,513 | 406,639 |
Corcept Therapeutics, Inc. (a) | 15,343 | 357,799 |
Harmony Biosciences Holdings, Inc. (a) | 7,866 | 243,138 |
Innoviva, Inc. (a) | 21,137 | 319,380 |
Intra-Cellular Therapies, Inc. (a) | 14,662 | 1,052,878 |
Ligand Pharmaceuticals, Inc. (a) | 4,045 | 282,705 |
Longboard Pharmaceuticals, Inc. (a)(b) | 4,443 | 94,636 |
Marinus Pharmaceuticals, Inc. (a) | 12,922 | 18,220 |
Neumora Therapeutics, Inc. (a) | 4,560 | 41,450 |
Pacira BioSciences, Inc. (a) | 11,463 | 300,904 |
Phathom Pharmaceuticals, Inc. (a)(b) | 9,626 | 86,923 |
Phibro Animal Health Corp., Class A | 10,812 | 180,560 |
Revance Therapeutics, Inc. (a) | 24,618 | 88,871 |
Supernus Pharmaceuticals, Inc. (a) | 12,047 | 362,615 |
Tarsus Pharmaceuticals, Inc. (a) | 4,239 | 133,232 |
Theravance Biopharma, Inc. (a)(b) | 24,628 | 207,860 |
WaVe Life Sciences Ltd. (a) | 18,055 | 89,011 |
| | 4,508,547 |
Real Estate Management & Development 1.3% |
Marcus & Millichap, Inc. | 107,918 | 3,417,763 |
Semiconductors & Semiconductor Equipment 3.8% |
Semtech Corp. (a)(b) | 160,421 | 6,035,038 |
Tower Semiconductor Ltd. (a) | 134,679 | 4,426,899 |
| | 10,461,937 |
Software 4.4% |
Agilysys, Inc. (a) | 49,290 | 4,093,534 |
SolarWinds Corp. | 310,233 | 3,418,768 |
Verint Systems, Inc. (a) | 148,696 | 4,502,515 |
| | 12,014,817 |
Specialized REITs 1.5% |
Uniti Group, Inc. | 732,404 | 4,211,323 |
Trading Companies & Distributors 3.7% |
MRC Global, Inc. (a) | 521,158 | 5,852,604 |
| Shares | | Value |
|
Trading Companies & Distributors (continued) |
Xometry, Inc., Class A (a)(b) | 242,714 | | $ 4,337,299 |
| | | 10,189,903 |
Total Common Stocks (Cost $254,935,519) | | | 271,693,331 |
Exchange-Traded Fund 0.5% |
iShares Russell 2000 ETF (b) | 7,385 | | 1,446,722 |
Total Exchange-Traded Fund (Cost $1,515,551) | | | 1,446,722 |
Short-Term Investments 2.1% |
Affiliated Investment Company 0.3% |
MainStay U.S. Government Liquidity Fund, 5.242% (c) | 689,255 | | 689,255 |
Unaffiliated Investment Company 1.8% |
Invesco Government & Agency Portfolio, 5.309% (c)(d) | 5,043,585 | | 5,043,585 |
Total Short-Term Investments (Cost $5,732,840) | | | 5,732,840 |
Total Investments (Cost $262,183,910) | 101.8% | | 278,872,893 |
Other Assets, Less Liabilities | (1.8) | | (4,925,942) |
Net Assets | 100.0% | | $ 273,946,951 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | Non-income producing security. |
(b) | All or a portion of this security was held on loan. As of April 30, 2024, the aggregate market value of securities on loan was $18,932,309; the total market value of collateral held by the Fund was $19,465,615. The market value of the collateral held included non-cash collateral in the form of U.S. Treasury securities with a value of $14,422,030. The Fund received cash collateral with a value of $5,043,585. (See Note 2(G)) |
(c) | Current yield as of April 30, 2024. |
(d) | Represents a security purchased with cash collateral received for securities on loan. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ — | $ 46,527 | $ (45,838) | $ — | $ — | $ 689 | $ 40 | $ — | 689 |
Abbreviation(s): |
ETF—Exchange-Traded Fund |
REIT—Real Estate Investment Trust |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | $ 271,693,331 | | $ — | | $ — | | $ 271,693,331 |
Exchange-Traded Fund | 1,446,722 | | — | | — | | 1,446,722 |
Short-Term Investments | | | | | | | |
Affiliated Investment Company | 689,255 | | — | | — | | 689,255 |
Unaffiliated Investment Company | 5,043,585 | | — | | — | | 5,043,585 |
Total Short-Term Investments | 5,732,840 | | — | | — | | 5,732,840 |
Total Investments in Securities | $ 278,872,893 | | $ — | | $ — | | $ 278,872,893 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay WMC Small Companies Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $261,494,655) including securities on loan of $18,932,309 | $278,183,638 |
Investment in affiliated investment companies, at value (identified cost $689,255) | 689,255 |
Cash | 828 |
Receivables: | |
Investment securities sold | 419,010 |
Dividends | 86,755 |
Fund shares sold | 13,312 |
Securities lending | 3,852 |
Other assets | 61,656 |
Total assets | 279,458,306 |
Liabilities |
Cash collateral received for securities on loan | 5,043,585 |
Payables: | |
Manager (See Note 3) | 179,923 |
Fund shares redeemed | 99,162 |
Transfer agent (See Note 3) | 76,467 |
Professional fees | 33,899 |
NYLIFE Distributors (See Note 3) | 33,729 |
Shareholder communication | 19,733 |
Custodian | 12,027 |
Trustees | 165 |
Accrued expenses | 12,665 |
Total liabilities | 5,511,355 |
Net assets | $273,946,951 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 12,185 |
Additional paid-in-capital | 309,780,885 |
| 309,793,070 |
Total distributable earnings (loss) | (35,846,119) |
Net assets | $273,946,951 |
Class A | |
Net assets applicable to outstanding shares | $119,643,045 |
Shares of beneficial interest outstanding | 5,401,925 |
Net asset value per share outstanding | $ 22.15 |
Maximum sales charge (5.50% of offering price) | 1.29 |
Maximum offering price per share outstanding | $ 23.44 |
Investor Class | |
Net assets applicable to outstanding shares | $ 33,109,805 |
Shares of beneficial interest outstanding | 1,548,268 |
Net asset value per share outstanding | $ 21.39 |
Maximum sales charge (5.00% of offering price) | 1.13 |
Maximum offering price per share outstanding | $ 22.52 |
Class B | |
Net assets applicable to outstanding shares | $ 567,065 |
Shares of beneficial interest outstanding | 33,379 |
Net asset value and offering price per share outstanding | $ 16.99 |
Class C | |
Net assets applicable to outstanding shares | $ 1,368,186 |
Shares of beneficial interest outstanding | 80,568 |
Net asset value and offering price per share outstanding | $ 16.98 |
Class I | |
Net assets applicable to outstanding shares | $119,258,850 |
Shares of beneficial interest outstanding | 5,121,007 |
Net asset value and offering price per share outstanding | $ 23.29 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $9,353) | $ 2,014,590 |
Dividends-affiliated | 39,610 |
Securities lending, net | 13,336 |
Total income | 2,067,536 |
Expenses | |
Manager (See Note 3) | 1,029,952 |
Transfer agent (See Note 3) | 207,911 |
Distribution/Service—Class A (See Note 3) | 148,076 |
Distribution/Service—Investor Class (See Note 3) | 40,865 |
Distribution/Service—Class B (See Note 3) | 3,774 |
Distribution/Service—Class C (See Note 3) | 6,991 |
Distribution/Service—Class R2 (See Note 3)(a) | 77 |
Distribution/Service—Class R3 (See Note 3)(a) | 617 |
Registration | 47,766 |
Professional fees | 41,534 |
Custodian | 11,483 |
Trustees | 3,203 |
Shareholder communication | 2,090 |
Shareholder service (See Note 3) | 171 |
Miscellaneous | 2,586 |
Total expenses before waiver/reimbursement | 1,547,096 |
Expense waiver/reimbursement from Manager (See Note 3) | (38,222) |
Net expenses | 1,508,874 |
Net investment income (loss) | 558,662 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on unaffiliated investments | 7,757,218 |
Net change in unrealized appreciation (depreciation) on unaffiliated investments | 44,958,721 |
Net realized and unrealized gain (loss) | 52,715,939 |
Net increase (decrease) in net assets resulting from operations | $53,274,601 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay WMC Small Companies Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and the year ended October 31, 2023
| Six months ended April 30, 2024 | Year ended October 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | |
Net investment income (loss) | $ 558,662 | $ 487,045 |
Net realized gain (loss) | 7,757,218 | (33,179,809) |
Net change in unrealized appreciation (depreciation) | 44,958,721 | (7,769,337) |
Net increase (decrease) in net assets resulting from operations | 53,274,601 | (40,462,101) |
Distributions to shareholders: | | |
Class A | (174,368) | (2,695,102) |
Investor Class | — | (654,688) |
Class B | — | (26,215) |
Class C | — | (30,249) |
Class I | (364,455) | (3,293,739) |
Class R1(a) | (156) | (1,147) |
Class R2(a) | (48) | (2,109) |
Class R3(a) | — | (8,221) |
Total distributions to shareholders | (539,027) | (6,711,470) |
Capital share transactions: | | |
Net proceeds from sales of shares | 24,230,822 | 31,953,890 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 529,340 | 6,604,900 |
Cost of shares redeemed | (30,490,215) | (92,443,616) |
Increase (decrease) in net assets derived from capital share transactions | (5,730,053) | (53,884,826) |
Net increase (decrease) in net assets | 47,005,521 | (101,058,397) |
Net Assets |
Beginning of period | 226,941,430 | 327,999,827 |
End of period | $273,946,951 | $ 226,941,430 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class A | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 17.82 | | $ 21.32 | | $ 32.63 | | $ 22.62 | | $ 24.59 | | $ 28.34 |
Net investment income (loss) (a) | 0.04 | | 0.02 | | 0.39 | | (0.10) | | (0.07) | | 0.07 |
Net realized and unrealized gain (loss) | 4.32 | | (3.09) | | (3.93) | | 10.11 | | (1.83) | | 0.24 |
Total from investment operations | 4.36 | | (3.07) | | (3.54) | | 10.01 | | (1.90) | | 0.31 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.03) | | (0.43) | | — | | — | | (0.05) | | (0.05) |
From net realized gain on investments | — | | — | | (7.77) | | — | | — | | (4.01) |
Return of capital | — | | — | | — | | — | | (0.02) | | — |
Total distributions | (0.03) | | (0.43) | | (7.77) | | — | | (0.07) | | (4.06) |
Net asset value at end of period | $ 22.15 | | $ 17.82 | | $ 21.32 | | $ 32.63 | | $ 22.62 | | $ 24.59 |
Total investment return (b) | 24.49% | | (14.66)% | | (13.90)% | | 44.25% | | (7.76)% | | 1.41% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.38%†† | | 0.09% | | 1.69% | | (0.32)% | | (0.30)% | | 0.27% |
Net expenses (c) | 1.23%†† | | 1.22% | | 1.23% | | 1.21% | | 1.25% | | 1.25% |
Expenses (before waiver/reimbursement) | 1.23%††(c) | | 1.22%(c) | | 1.23%(c) | | 1.22%(c) | | 1.25% | | 1.25% |
Portfolio turnover rate | 51% | | 86% | | 75% | | 108% | | 208% | | 205% |
Net assets at end of period (in 000’s) | $ 119,643 | | $ 103,460 | | $ 135,890 | | $ 178,454 | | $ 115,403 | | $ 141,548 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
16 | MainStay WMC Small Companies Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Investor Class | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 17.20 | | $ 20.60 | | $ 31.86 | | $ 22.14 | | $ 24.07 | | $ 27.85 |
Net investment income (loss) (a) | 0.01 | | (0.03) | | 0.32 | | (0.17) | | (0.13) | | (0.01) |
Net realized and unrealized gain (loss) | 4.18 | | (2.99) | | (3.81) | | 9.89 | | (1.80) | | 0.24 |
Total from investment operations | 4.19 | | (3.02) | | (3.49) | | 9.72 | | (1.93) | | 0.23 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.38) | | — | | — | | (0.00)‡ | | — |
From net realized gain on investments | — | | — | | (7.77) | | — | | — | | (4.01) |
Return of capital | — | | — | | — | | — | | (0.00)‡ | | — |
Total distributions | — | | (0.38) | | (7.77) | | — | | (0.00)‡ | | (4.01) |
Net asset value at end of period | $ 21.39 | | $ 17.20 | | $ 20.60 | | $ 31.86 | | $ 22.14 | | $ 24.07 |
Total investment return (b) | 24.36% | | (14.92)% | | (14.13)% | | 43.90% | | (8.02)% | | 1.09% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.13%†† | | (0.18)% | | 1.43% | | (0.57)% | | (0.57)% | | (0.05)% |
Net expenses (c) | 1.49%†† | | 1.49% | | 1.50% | | 1.49% | | 1.52% | | 1.55% |
Expenses (before waiver/reimbursement) (c) | 1.70%†† | | 1.70% | | 1.58% | | 1.66% | | 1.70% | | 1.64% |
Portfolio turnover rate | 51% | | 86% | | 75% | | 108% | | 208% | | 205% |
Net assets at end of period (in 000's) | $ 33,110 | | $ 28,292 | | $ 35,985 | | $ 45,382 | | $ 41,547 | | $ 49,342 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class B | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.72 | | $ 16.46 | | $ 27.20 | | $ 19.04 | | $ 20.86 | | $ 24.83 |
Net investment income (loss) (a) | (0.05) | | (0.14) | | 0.15 | | (0.34) | | (0.25) | | (0.16) |
Net realized and unrealized gain (loss) | 3.32 | | (2.38) | | (3.12) | | 8.50 | | (1.57) | | 0.20 |
Total from investment operations | 3.27 | | (2.52) | | (2.97) | | 8.16 | | (1.82) | | 0.04 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.22) | | — | | — | | — | | — |
From net realized gain on investments | — | | — | | (7.77) | | — | | — | | (4.01) |
Total distributions | — | | (0.22) | | (7.77) | | — | | — | | (4.01) |
Net asset value at end of period | $ 16.99 | | $ 13.72 | | $ 16.46 | | $ 27.20 | | $ 19.04 | | $ 20.86 |
Total investment return (b) | 23.83% | | (15.48)% | | (14.81)% | | 42.86% | | (8.72)% | | 0.35% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (0.61)%†† | | (0.92)% | | 0.88% | | (1.31)% | | (1.30)% | | (0.74)% |
Net expenses (c) | 2.24%†† | | 2.24% | | 2.24% | | 2.24% | | 2.27% | | 2.30% |
Expenses (before waiver/reimbursement) (c) | 2.44%†† | | 2.46% | | 2.33% | | 2.41% | | 2.45% | | 2.39% |
Portfolio turnover rate | 51% | | 86% | | 75% | | 108% | | 208% | | 205% |
Net assets at end of period (in 000’s) | $ 567 | | $ 828 | | $ 2,036 | | $ 4,021 | | $ 4,447 | | $ 7,442 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class C | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.71 | | $ 16.46 | | $ 27.19 | | $ 19.03 | | $ 20.84 | | $ 24.81 |
Net investment income (loss) (a) | (0.05) | | (0.15) | | 0.15 | | (0.34) | | (0.25) | | (0.13) |
Net realized and unrealized gain (loss) | 3.32 | | (2.38) | | (3.11) | | 8.50 | | (1.56) | | 0.17 |
Total from investment operations | 3.27 | | (2.53) | | (2.96) | | 8.16 | | (1.81) | | 0.04 |
Less distributions: | | | | | | | | | | | |
From net investment income | — | | (0.22) | | — | | — | | — | | — |
From net realized gain on investments | — | | — | | (7.77) | | — | | — | | (4.01) |
Total distributions | — | | (0.22) | | (7.77) | | — | | — | | (4.01) |
Net asset value at end of period | $ 16.98 | | $ 13.71 | | $ 16.46 | | $ 27.19 | | $ 19.03 | | $ 20.84 |
Total investment return (b) | 23.85% | | (15.54)% | | (14.74)% | | 42.88%(c) | | (8.69)% | | 0.35% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | (0.62)%†† | | (0.92)% | | 0.83% | | (1.32)% | | (1.30)% | | (0.60)% |
Net expenses (d) | 2.24%†† | | 2.24% | | 2.24% | | 2.24% | | 2.27% | | 2.30% |
Expenses (before waiver/reimbursement) (d) | 2.45%†† | | 2.46% | | 2.33% | | 2.41% | | 2.45% | | 2.39% |
Portfolio turnover rate | 51% | | 86% | | 75% | | 108% | | 208% | | 205% |
Net assets at end of period (in 000’s) | $ 1,368 | | $ 1,280 | | $ 2,415 | | $ 4,129 | | $ 3,201 | | $ 5,469 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
18 | MainStay WMC Small Companies Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, 2024* | | Year Ended October 31, |
Class I | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 18.76 | | $ 22.43 | | $ 33.85 | | $ 23.40 | | $ 25.44 | | $ 29.19 |
Net investment income (loss) (a) | 0.07 | | 0.07 | | 0.45 | | (0.02) | | (0.01) | | 0.17 |
Net realized and unrealized gain (loss) | 4.54 | | (3.25) | | (4.10) | | 10.47 | | (1.90) | | 0.22 |
Total from investment operations | 4.61 | | (3.18) | | (3.65) | | 10.45 | | (1.91) | | 0.39 |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.08) | | (0.49) | | — | | — | | (0.09) | | (0.13) |
From net realized gain on investments | — | | — | | (7.77) | | — | | — | | (4.01) |
Return of capital | — | | — | | — | | — | | (0.04) | | — |
Total distributions | (0.08) | | (0.49) | | (7.77) | | — | | (0.13) | | (4.14) |
Net asset value at end of period | $ 23.29 | | $ 18.76 | | $ 22.43 | | $ 33.85 | | $ 23.40 | | $ 25.44 |
Total investment return (b) | 24.61% | | (14.42)% | | (13.71)% | | 44.66% | | (7.55)% | | 1.67% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.61%†† | | 0.34% | | 1.85% | | (0.05)% | | (0.06)% | | 0.66% |
Net expenses (c) | 0.98%†† | | 0.97% | | 0.98% | | 0.96% | | 1.00% | | 1.00% |
Expenses (before waiver/reimbursement) | 0.98%††(c) | | 0.97%(c) | | 0.98%(c) | | 0.97%(c) | | 1.00% | | 1.00% |
Portfolio turnover rate | 51% | | 86% | | 75% | | 108% | | 208% | | 205% |
Net assets at end of period (in 000’s) | $ 119,259 | | $ 92,498 | | $ 151,035 | | $ 169,281 | | $ 127,115 | | $ 146,525 |
* | 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. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also 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.
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay WMC Small Companies Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | January 2, 2004 |
Investor Class | February 28, 2008 |
Class B | January 2, 2004 |
Class C | December 30, 2002 |
Class I | January 12, 1987 |
Effective at the close of business on February 23, 2024, Class R1, R2 and R3 shares were liquidated.
Class B shares of the MainStay Group of Funds are closed to all new purchases as well as additional investments by existing Class B shareholders. Existing Class B shareholders may continue to reinvest dividends and capital gains distributions, as well as exchange their Class B shares for Class B shares of other funds in the MainStay Group of Funds as permitted by the current exchange privileges. Class B shareholders continue to be subject to any applicable contingent deferred sales charge ("CDSC") at the time of redemption. All other features of the Class B shares, including but not limited to the fees and expenses applicable to Class B shares, remain unchanged. Unless redeemed, Class B shareholders will remain in Class B shares of their respective fund until the Class B shares are converted to Class A or Investor Class shares pursuant to the applicable conversion schedule.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a CDSC of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. When Class B shares were offered, they were offered at NAV without an initial sales charge, although a CDSC that declines depending on the number of years a shareholder held its Class B shares may be imposed on certain redemptions of such shares made within six years of the date of purchase of such shares. Class I shares are offered at NAV without a sales charge. Depending upon eligibility, Class B shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. In addition, depending upon
eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class B and Class C shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. 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 is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation
20 | MainStay WMC Small Companies Fund |
Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input
level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the
Notes to Financial Statements (Unaudited) (continued)
valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Exchange-traded funds (“ETFs”) are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in ETFs and mutual funds, which are subject to management fees and other fees that may cause the costs of investing in ETFs and mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of ETFs and mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
22 | MainStay WMC Small Companies Fund |
(G) 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(H) 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 the 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.
(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Wellington Management Company LLP ("Wellington" or the "Subadvisor"), a registered investment adviser, serves as the 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 ("Subadvisory Agreement") between New York Life Investments and Wellington, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.80% up to $1 billion, 0.775% from $1 billion to $2 billion and 0.75% in excess of $2 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.80% of the Fund’s average daily net assets, exclusive of any applicable waivers/reimbursements.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $1,029,952 and waived fees and/or reimbursed expenses in the amount of $38,222 and paid the Subadvisor fees in the amount of $482,790.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life
Notes to Financial Statements (Unaudited) (continued)
Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, Class B and 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 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, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 Plan, Class R3 shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, for a total 12b-1 fee of 0.50%. Class I and Class R1 shares are not subject to a distribution and/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.
In accordance with the Shareholder Services Plans for the 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 R2 and Class R3 shares. For its services, the Manager, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R2 and Class R3 shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the period November 1, 2023 through February 23, 2024, shareholder service fees incurred by the Fund were as follows:
|
Class R1* | $ 17 |
Class R2* | 31 |
Class R3* | 123 |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $4,372 and $1,814, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $144 and $22, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $57,904 | $ — |
Investor Class | 93,130 | (35,919) |
Class B | 2,100 | (779) |
Class C | 3,970 | (1,524) |
Class I | 50,631 | — |
Class R1* | 17 | — |
Class R2* | 32 | — |
Class R3* | 127 | — |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
24 | MainStay WMC Small Companies Fund |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $263,481,226 | $36,785,579 | $(21,393,912) | $15,391,667 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $59,553,662, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $36,562 | $22,991 |
During the year ended October 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 |
Distributions paid from: | |
Ordinary Income | $6,711,470 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily
Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $131,457 and $135,606, respectively.
Notes to Financial Statements (Unaudited) (continued)
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024 and the year ended October 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 124,132 | $ 2,653,201 |
Shares issued to shareholders in reinvestment of distributions | 8,675 | 171,163 |
Shares redeemed | (603,092) | (12,815,783) |
Net increase (decrease) in shares outstanding before conversion | (470,285) | (9,991,419) |
Shares converted into Class A (See Note 1) | 67,267 | 1,454,772 |
Shares converted from Class A (See Note 1) | (450) | (10,302) |
Net increase (decrease) | (403,468) | $ (8,546,949) |
Year ended October 31, 2023: | | |
Shares sold | 179,482 | $ 3,701,988 |
Shares issued to shareholders in reinvestment of distributions | 129,424 | 2,648,022 |
Shares redeemed | (952,509) | (19,262,672) |
Net increase (decrease) in shares outstanding before conversion | (643,603) | (12,912,662) |
Shares converted into Class A (See Note 1) | 76,200 | 1,526,234 |
Shares converted from Class A (See Note 1) | (1,151) | (21,412) |
Net increase (decrease) | (568,554) | $(11,407,840) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 16,715 | $ 345,526 |
Shares redeemed | (73,849) | (1,519,334) |
Net increase (decrease) in shares outstanding before conversion | (57,134) | (1,173,808) |
Shares converted into Investor Class (See Note 1) | 8,154 | 169,500 |
Shares converted from Investor Class (See Note 1) | (47,395) | (996,604) |
Net increase (decrease) | (96,375) | $ (2,000,912) |
Year ended October 31, 2023: | | |
Shares sold | 39,579 | $ 773,245 |
Shares issued to shareholders in reinvestment of distributions | 32,975 | 652,901 |
Shares redeemed | (140,269) | (2,747,740) |
Net increase (decrease) in shares outstanding before conversion | (67,715) | (1,321,594) |
Shares converted into Investor Class (See Note 1) | 20,748 | 416,248 |
Shares converted from Investor Class (See Note 1) | (55,525) | (1,072,506) |
Net increase (decrease) | (102,492) | $ (1,977,852) |
|
Class B | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 2,442 | $ 39,473 |
Shares redeemed | (7,626) | (125,447) |
Net increase (decrease) in shares outstanding before conversion | (5,184) | (85,974) |
Shares converted from Class B (See Note 1) | (21,824) | (361,348) |
Net increase (decrease) | (27,008) | $ (447,322) |
Year ended October 31, 2023: | | |
Shares sold | 141 | $ 2,216 |
Shares issued to shareholders in reinvestment of distributions | 1,624 | 25,812 |
Shares redeemed | (18,236) | (283,465) |
Net increase (decrease) in shares outstanding before conversion | (16,471) | (255,437) |
Shares converted from Class B (See Note 1) | (46,813) | (738,418) |
Net increase (decrease) | (63,284) | $ (993,855) |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 4,579 | $ 75,408 |
Shares redeemed | (14,061) | (226,913) |
Net increase (decrease) in shares outstanding before conversion | (9,482) | (151,505) |
Shares converted from Class C (See Note 1) | (3,286) | (54,042) |
Net increase (decrease) | (12,768) | $ (205,547) |
Year ended October 31, 2023: | | |
Shares sold | 9,911 | $ 154,126 |
Shares issued to shareholders in reinvestment of distributions | 1,903 | 30,219 |
Shares redeemed | (57,727) | (885,731) |
Net increase (decrease) in shares outstanding before conversion | (45,913) | (701,386) |
Shares converted from Class C (See Note 1) | (7,515) | (119,731) |
Net increase (decrease) | (53,428) | $ (821,117) |
|
26 | MainStay WMC Small Companies Fund |
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 865,831 | $ 21,101,016 |
Shares issued to shareholders in reinvestment of distributions | 17,277 | 357,973 |
Shares redeemed | (693,814) | (15,284,906) |
Net increase (decrease) in shares outstanding before conversion | 189,294 | 6,174,083 |
Shares converted into Class I (See Note 1) | 428 | 10,302 |
Shares converted from Class I (See Note 1) | (102) | (2,298) |
Net increase (decrease) | 189,620 | $ 6,182,087 |
Year ended October 31, 2023: | | |
Shares sold | 1,270,184 | $ 27,218,467 |
Shares issued to shareholders in reinvestment of distributions | 150,611 | 3,236,629 |
Shares redeemed | (3,225,001) | (69,203,429) |
Net increase (decrease) in shares outstanding before conversion | (1,804,206) | (38,748,333) |
Shares converted into Class I (See Note 1) | 1,094 | 21,412 |
Shares converted from Class I (See Note 1) | (563) | (11,827) |
Net increase (decrease) | (1,803,675) | $(38,738,748) |
|
Class R1 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares issued to shareholders in reinvestment of distributions | 8 | $ 156 |
Shares redeemed | (2,527) | (58,625) |
Net increase (decrease) | (2,519) | $ (58,469) |
Year ended October 31, 2023: | | |
Shares issued to shareholders in reinvestment of distributions | 54 | $ 1,147 |
Net increase (decrease) | 54 | $ 1,147 |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 2 | $ 21 |
Shares issued to shareholders in reinvestment of distributions | 2 | 48 |
Shares redeemed | (4,849) | (106,778) |
Net increase (decrease) | (4,845) | $ (106,709) |
Year ended October 31, 2023: | | |
Shares sold | 224 | $ 4,376 |
Shares issued to shareholders in reinvestment of distributions | 104 | 2,109 |
Shares redeemed | (587) | (12,187) |
Net increase (decrease) | (259) | $ (5,702) |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024: (a) | | |
Shares sold | 834 | $ 16,177 |
Shares redeemed | (16,534) | (352,429) |
Net increase (decrease) in shares outstanding before conversion | (15,700) | (336,252) |
Shares converted from Class R3 (See Note 1) | (10,178) | (209,980) |
Net increase (decrease) | (25,878) | $ (546,232) |
Year ended October 31, 2023: | | |
Shares sold | 5,042 | $ 99,472 |
Shares issued to shareholders in reinvestment of distributions | 403 | 8,061 |
Shares redeemed | (2,424) | (48,392) |
Net increase (decrease) | 3,021 | $ 59,141 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay WMC Small Companies Fund (“Fund”) and New York Life Investment Management LLC (“New York Life Investments”) and the Subadvisory Agreement between New York Life Investments and Wellington Management Company LLP (“WMC”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and WMC in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and WMC in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or WMC that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, WMC personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and WMC; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and WMC; (iii) the costs of the services provided, and profits realized, by New York Life Investments and WMC with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
28 | MainStay WMC Small Companies Fund |
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and WMC. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and WMC resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and WMC
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by WMC, evaluating the performance of WMC, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of WMC and ongoing analysis of, and interactions with, WMC with respect to, among other things, the Fund’s investment performance and risks as well as WMC’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that WMC provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated WMC’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and WMC’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at WMC. The Board considered New York Life Investments’ and WMC’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and WMC and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered WMC’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and WMC regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of WMC and the members of the Board’s Investment Committee, which generally occur on an annual basis. In considering the investment performance of the Fund, the Board noted that the Fund underperformed its peer funds for the one-, three-, five- and ten-year periods ended July 31, 2023. The Board considered its discussions with representatives from New York Life Investments and WMC regarding the Fund’s investment performance.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and WMC
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates and WMC due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. With respect to the profitability of WMC’s relationship with the Fund, the Board considered information from New York Life Investments that WMC’s subadvisory fee reflected an arm’s-length negotiation and that this fee is paid by New York Life Investments, not the Fund, and the relevance of WMC’s profitability was considered by the Trustees in that context. On this basis, the Board primarily considered the costs and profitability for New York Life Investments and its affiliates with respect to the Fund.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and WMC, and profitability of New York Life Investments and its affiliates and WMC due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its
affiliates’ and WMC’s continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and WMC and acknowledged that New York Life Investments and WMC must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and WMC to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates and WMC and its affiliates due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to WMC from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to WMC in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In this regard, the Board also requested and considered information from New York Life Investments concerning other material business relationships between WMC and its affiliates and New York Life Investments and its affiliates and considered the existence of a strategic partnership between New York Life Investments and WMC that relates to certain current and future products and represents a potential conflict of interest associated with New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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
30 | MainStay WMC Small Companies Fund |
and distributor. The Board considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates due to their relationships with the Fund were not excessive, other expected benefits that may accrue to New York Life Investments and its affiliates are reasonable and other expected benefits that may accrue to WMC and its affiliates are consistent with those expected for a subadvisor to a mutual fund. With respect to WMC, the Board considered that any profits realized by WMC due to its relationship with the Fund are the result of arm’s-length negotiations between New York Life Investments and WMC, acknowledging that any such profits are based on the subadvisory fee paid to WMC by New York Life Investments, not the Fund.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to WMC is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and WMC on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of
contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. The Board reviewed information from New York Life Investments showing how the Fund’s
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
management fee schedule compared to fee schedules of other funds and accounts managed by New York Life Investments. The Board also reviewed information from ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
32 | MainStay WMC Small Companies Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
34 | MainStay WMC Small Companies Fund |
Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022232 MS081-24 | MSWSC10-06/24 |
(NYLIM) NL531
MainStay MacKay Short Term Municipal Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio3 |
Class A Shares | Maximum 1.00% Initial Sales Charge | With sales charges | 1/2/2004 | 2.07% | 1.32% | 0.52% | 0.50% | 0.69% |
| | Excluding sales charges | | 3.10 | 2.34 | 0.72 | 0.81 | 0.69 |
Class A2 Shares | Maximum 2.00% Initial Sales Charge | With sales charges | 9/30/2020 | 1.03 | 0.29 | N/A | -0.42 | 0.69 |
| | Excluding sales charges | | 3.09 | 2.34 | N/A | 0.15 | 0.69 |
Investor Class Shares4, 5 | Maximum 0.50% Initial Sales Charge | With sales charges | 2/28/2008 | 2.53 | 1.62 | 0.20 | 0.15 | 1.32 |
| | Excluding sales charges | | 3.04 | 2.13 | 0.41 | 0.46 | 1.32 |
Class I Shares | No Sales Charge | | 1/2/1991 | 3.24 | 2.63 | 1.00 | 1.10 | 0.44 |
Class R6 Shares | No Sales Charge | | 5/2/2022 | 3.25 | 2.64 | N/A | 2.12 | 0.41 |
1. | Effective June 1, 2015, the Fund changed, among other things, its investment objective and principal investment strategies. Effective May 22, 2018, the Fund made further changes to, among other things, its principal investment strategies. Effective February 28, 2019, the Fund further changed its investment objective. The performance information shown in this report reflects the Fund’s prior investment objectives and principal investment strategies, as applicable. Effective at the close of business on May 1, 2023, the Fund changed its fiscal and tax year end from April 30 to October 31. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Prior to June 1, 2015, the maximum initial sales charge was 3.00%, which is reflected in the average annual total return figures shown. |
5. | From June 1, 2015 to June 30, 2020, the maximum initial sales charge was 1.00%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Bloomberg Municipal Bond Index2 | 7.06% | 2.08% | 1.26% | 2.41% |
Bloomberg 3-Year Municipal Bond Index3 | 2.80 | 1.90 | 0.99 | 1.14 |
Morningstar Muni National Short Category Average4 | 3.13 | 2.67 | 1.08 | 1.04 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg Municipal Bond Index, which represents a broad measure of market performance, as a replacement for the Bloomberg 3-Year Municipal Bond Index. The Bloomberg Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year. Bonds subject to the alternative minimum tax or with floating or zero coupons are excluded. |
3. | The Bloomberg 3-Year Municipal Bond Index, which is generally representative of the market sectors or types of investments in which the Fund invests, is considered representative of the broad market for investment grade, tax-exempt bonds with a maturity range of 2-4 years. |
4. | The Morningstar Muni National Short Category Average is representative of funds that invest in bonds issued by state and local governments to fund public projects. The income from these bonds is generally free from federal taxes and/or from state taxes in the issuing state. To lower risk, some of these funds spread their assets across many states and sectors. Other funds buy bonds from only one state in order to get the state-tax benefit. These funds have durations of less than 4.5 years. Results are based on average total returns of similar funds with all dividends 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 MacKay Short Term Municipal Fund |
Cost in Dollars of a $1,000 Investment in MainStay MacKay Short Term Municipal Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from November 1, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,031.00 | $3.43 | $1,021.48 | $3.42 | 0.68% |
Class A2 Shares | $1,000.00 | $1,030.90 | $3.43 | $1,021.48 | $3.42 | 0.68% |
Investor Class Shares | $1,000.00 | $1,030.40 | $5.00 | $1,019.94 | $4.97 | 0.99% |
Class I Shares | $1,000.00 | $1,032.40 | $2.02 | $1,022.87 | $2.01 | 0.40% |
Class R6 Shares | $1,000.00 | $1,032.50 | $2.02 | $1,022.87 | $2.01 | 0.40% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Portfolio Composition as of April 30, 2024 (Unaudited)
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | State of Illinois, 3.50%-5.00%, due 11/1/24–6/1/31 |
2. | Black Belt Energy Gas District, 4.00%-5.50%, due 6/1/25–11/1/53 |
3. | Matching Fund Special Purpose Securitization Corp., 5.00%, due 10/1/25–10/1/26 |
4. | Pennsylvania Economic Development Financing Authority, 0.95%-4.17%, due 12/1/33–6/1/41 |
5. | Arizona Health Facilities Authority, 4.02%, due 1/1/46 |
6. | City of Dallas, 5.00%, due 2/15/26 |
7. | New Jersey Transportation Trust Fund Authority, 2.631%-5.00%, due 6/15/24–6/15/27 |
8. | Texas Municipal Gas Acquisition & Supply Corp. II, 4.38%, due 9/15/27 |
9. | City of Detroit, 4.328%, due 7/1/32 |
10. | City of Madison, 2.10%-2.15%, due 10/1/26–10/1/27 |
8 | MainStay MacKay Short Term Municipal Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Municipal Bonds 98.4% |
Long-Term Municipal Bonds 97.9% |
Alabama 5.7% |
Alabama Community College System, Coastal Alabama Community College, Revenue Bonds | | |
Insured: BAM | | |
4.00%, due 10/1/27 | $ 500,000 | $ 507,298 |
Black Belt Energy Gas District, Gas Project, Revenue Bonds | | |
Series B-1 | | |
4.00%, due 4/1/53 (a) | 3,920,000 | 3,914,633 |
Series B | | |
4.42%, due 4/1/53 | 7,195,000 | 7,033,202 |
Series C-1 | | |
5.25%, due 6/1/25 | 615,000 | 620,586 |
Series C-1 | | |
5.25%, due 12/1/25 | 880,000 | 892,849 |
Series F | | |
5.50%, due 11/1/53 (a) | 10,000,000 | 10,535,930 |
City of Decatur, Limited General Obligation | | |
Series A | | |
2.00%, due 10/1/26 | 1,900,000 | 1,797,765 |
Energy Southeast, A Cooperative District, Revenue Bonds | | |
Series A-1 | | |
5.50%, due 11/1/53 (a) | 1,510,000 | 1,613,887 |
Southeast Energy Authority, A Cooperative District, Project No. 4, Revenue Bonds | | |
Series B-1 | | |
5.00%, due 5/1/53 (a) | 1,870,000 | 1,930,281 |
Southeast Energy Authority, A Cooperative District, Project No. 3, Revenue Bonds | | |
Series A-1 | | |
5.50%, due 1/1/53 (a) | 10,000,000 | 10,592,003 |
State of Alabama, Unlimited General Obligation | | |
Series A | | |
3.00%, due 8/1/26 | 5,000,000 | 4,890,828 |
| | 44,329,262 |
Arizona 2.8% |
Arizona Health Facilities Authority, Banner Health, Revenue Bonds | | |
Series B | | |
4.02%, due 1/1/46 | 2,400,000 | 2,393,830 |
| Principal Amount | Value |
|
Arizona (continued) |
Arizona Health Facilities Authority, Banner Health, Revenue Bonds (continued) | | |
Series B | | |
4.02%, due 1/1/46 | $ 12,600,000 | $ 12,445,460 |
City of Phoenix Civic Improvement Corp., Airport, Revenue Bonds, Senior Lien | | |
5.00%, due 7/1/29 (b) | 6,210,000 | 6,675,361 |
| | 21,514,651 |
Arkansas 0.2% |
City of Fort Smith, Water & Sewer, Revenue Bonds | | |
3.00%, due 10/1/25 | 1,400,000 | 1,381,526 |
California 11.1% |
Alameda Corridor Transportation Authority, Revenue Bonds, Sub. Lien | | |
Series B, Insured: AGM-CR AMBAC | | |
(zero coupon), due 10/1/27 | 4,500,000 | 3,759,172 |
Anaheim Public Financing Authority, Convention Center Expansion, Revenue Bonds | | |
Series A, Insured: AGM | | |
2.093%, due 7/1/27 | 1,135,000 | 1,023,892 |
Antelope Valley Community College District, Unlimited General Obligation | | |
(zero coupon), due 8/1/35 | 3,990,000 | 2,486,411 |
California Community Choice Financing Authority, Clean Energy Project, Revenue Bonds | | |
Series C | | |
5.25%, due 1/1/54 (a) | 4,500,000 | 4,697,054 |
California Infrastructure & Economic Development Bank, California Academy of Sciences, Revenue Bonds | | |
Series A | | |
3.25%, due 8/1/29 | 4,500,000 | 4,467,998 |
California Infrastructure & Economic Development Bank, DesertXpress Enterprises LLC, Revenue Bonds | | |
Series A | | |
3.95%, due 1/1/50 (a)(b)(c) | 7,500,000 | 7,499,740 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
California (continued) |
California Municipal Finance Authority, University of San Diego, Revenue Bonds | | |
Series B | | |
2.326%, due 10/1/27 | $ 1,590,000 | $ 1,448,024 |
California Municipal Finance Authority, Waste Management, Inc., Revenue Bonds | | |
Series A | | |
4.125%, due 10/1/41 (a)(b) | 5,000,000 | 5,003,432 |
California Pollution Control Financing Authority, Republic Services, Inc., Revenue Bonds | | |
Series A-1 | | |
4.05%, due 11/1/42 (a)(b)(c) | 3,000,000 | 2,999,795 |
California State Public Works Board, State of California Department of General Services, Revenue Bonds | | |
Series B | | |
4.879%, due 4/1/29 | 3,300,000 | 3,277,287 |
California Statewide Communities Development Authority, Southern California Edison Co., Revenue Bonds | | |
Series A | | |
1.75%, due 9/1/29 | 11,500,000 | 9,907,940 |
City of Sacramento, North Natomas Community Facilities District No. 4, Special Tax | | |
Series G, Insured: AGM | | |
5.00%, due 9/1/28 | 2,245,000 | 2,414,075 |
Series G, Insured: AGM | | |
5.00%, due 9/1/29 | 2,215,000 | 2,421,689 |
Clovis Unified School District, Unlimited General Obligation | | |
Series A, Insured: NATL-RE | | |
(zero coupon), due 8/1/25 | 2,500,000 | 2,392,337 |
Corona-Norco Unified School District, Unlimited General Obligation | | |
Series A | | |
5.00%, due 8/1/44 | 960,000 | 978,846 |
Eastern Municipal Water District, Revenue Bonds | | |
Series A | | |
3.00%, due 7/1/25 | 4,095,000 | 4,072,429 |
| Principal Amount | Value |
|
California (continued) |
Foothill-Eastern Transportation Corridor Agency, Revenue Bonds, Senior Lien | | |
Series A | | |
(zero coupon), due 1/1/25 | $ 1,500,000 | $ 1,463,486 |
Golden State Tobacco Securitization Corp., Revenue Bonds | | |
Series B, Insured: State Appropriations | | |
2.246%, due 6/1/29 | 3,900,000 | 3,386,273 |
Los Angeles Unified School District, Unlimited General Obligation | | |
Series A | | |
5.00%, due 7/1/28 | 4,500,000 | 4,857,499 |
San Diego County Regional Airport Authority, Revenue Bonds, Senior Lien (b) | | |
Series B | | |
5.00%, due 7/1/28 | 1,500,000 | 1,579,445 |
Series B | | |
5.00%, due 7/1/29 | 1,750,000 | 1,868,320 |
San Jose Evergreen Community College District, Unlimited General Obligation | | |
Series B | | |
6.586%, due 7/1/43 | 5,000,000 | 4,945,064 |
Saratoga Union School District, Unlimited General Obligation | | |
Insured: NATL-RE | | |
(zero coupon), due 9/1/26 | 6,500,000 | 6,003,218 |
State of California, Various Purpose, Unlimited General Obligation | | |
1.75%, due 11/1/30 | 1,375,000 | 1,122,684 |
University of California, Revenue Bonds | | |
Series BG | | |
1.614%, due 5/15/30 | 2,395,000 | 1,970,074 |
| | 86,046,184 |
Colorado 2.8% |
Arapahoe County School District No. 5, Cherry Creek, Unlimited General Obligation | | |
Series B, Insured: State Aid Withholding | | |
2.00%, due 12/15/26 | 5,000,000 | 4,712,983 |
City & County of Denver, Airport System, Revenue Bonds (b) | | |
Series A | | |
5.00%, due 12/1/25 | 5,370,000 | 5,454,391 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay MacKay Short Term Municipal Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Colorado (continued) |
City & County of Denver, Airport System, Revenue Bonds (b) (continued) | | |
Series A | | |
5.00%, due 12/1/26 | $ 2,750,000 | $ 2,834,765 |
Colorado Bridge Enterprise, Central 70 Project, Revenue Bonds | | |
4.00%, due 6/30/27 (b) | 4,475,000 | 4,456,019 |
E-470 Public Highway Authority, Revenue Bonds | | |
Series B, Insured: NATL-RE | | |
(zero coupon), due 9/1/25 | 4,500,000 | 4,280,756 |
| | 21,738,914 |
Connecticut 1.8% |
City of Danbury, Unlimited General Obligation | | |
5.00%, due 9/24/24 (c) | 2,000,000 | 2,006,983 |
City of West Haven, Unlimited General Obligation | | |
Insured: BAM | | |
5.00%, due 2/13/25 | 1,750,000 | 1,759,211 |
Connecticut State Health & Educational Facilities Authority, Yale University, Revenue Bonds | | |
Series A | | |
0.375%, due 7/1/35 (a) | 8,125,000 | 8,046,805 |
State of Connecticut, Unlimited General Obligation | | |
Series A | | |
3.00%, due 1/15/26 | 2,260,000 | 2,235,618 |
| | 14,048,617 |
District of Columbia 0.6% |
District of Columbia, Gallery Place Project, Tax Allocation | | |
5.00%, due 6/1/27 | 1,090,000 | 1,091,000 |
Metropolitan Washington Airports Authority, Revenue Bonds (b) | | |
Series A | | |
5.00%, due 10/1/27 | 2,160,000 | 2,256,155 |
Series A | | |
5.00%, due 10/1/28 | 1,020,000 | 1,077,751 |
| | 4,424,906 |
| Principal Amount | Value |
|
Florida 2.6% |
County of Monroe, Airport, Revenue Bonds | | |
Series 202 | | |
5.00%, due 10/1/27 (b) | $ 200,000 | $ 205,599 |
County of Pasco, State of Florida Cigarette Tax Revenue, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.25%, due 9/1/26 | 1,875,000 | 1,941,468 |
Series A, Insured: AGM | | |
5.25%, due 9/1/27 | 2,000,000 | 2,101,831 |
Greater Orlando Aviation Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/26 (b) | 4,225,000 | 4,358,185 |
State of Florida, Unlimited General Obligation | | |
Series B | | |
5.00%, due 7/1/25 | 9,665,000 | 9,839,481 |
Village Community Development District No. 12, Special Assessment | | |
3.25%, due 5/1/26 | 1,430,000 | 1,418,967 |
| | 19,865,531 |
Georgia 2.5% |
City of Atlanta, Department of Aviation, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/27 (b) | 2,185,000 | 2,273,407 |
Development Authority of Monroe County (The), Georgia Power Co. Scherer, Revenue Bonds | | |
Series 1 | | |
1.00%, due 7/1/49 (a) | 1,590,000 | 1,440,320 |
Main Street Natural Gas, Inc., Revenue Bonds (a) | | |
Series A | | |
4.00%, due 7/1/52 | 7,490,000 | 7,479,834 |
Series B | | |
5.00%, due 12/1/52 | 3,500,000 | 3,636,116 |
Municipal Electric Authority of Georgia, Project One Subordinated Bonds, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/26 | 970,000 | 991,750 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Georgia (continued) |
State of Georgia, Unlimited General Obligation | | |
Series A | | |
5.00%, due 7/1/25 | $ 3,170,000 | $ 3,228,684 |
| | 19,050,111 |
Hawaii 0.6% |
State of Hawaii, Airports System, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/28 (b) | 1,000,000 | 1,052,963 |
State of Hawaii, Unlimited General Obligation | | |
Series FH | | |
5.00%, due 10/1/28 | 3,620,000 | 3,753,415 |
| | 4,806,378 |
Idaho 0.1% |
Idaho Housing & Finance Association, Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
3.35%, due 7/1/28 | 1,195,000 | 1,184,548 |
Illinois 4.6% |
Chicago O'Hare International Airport, Passenger Facility Charge, Revenue Bonds | | |
Series B | | |
5.00%, due 1/1/25 (b) | 835,000 | 833,964 |
City of Chicago, Unlimited General Obligation | | |
Series A | | |
5.00%, due 1/1/30 | 1,000,000 | 1,069,149 |
City of Country Club Hills, Unlimited General Obligation | | |
Insured: BAM | | |
4.00%, due 12/1/25 | 1,230,000 | 1,227,874 |
Illinois Finance Authority, American Water Capital Corp., Revenue Bonds | | |
2.45%, due 10/1/39 (a) | 2,250,000 | 2,059,169 |
Illinois Finance Authority, Presbyterian Homes Obligated Group, Revenue Bonds | | |
Series B | | |
4.47%, due 5/1/42 | 1,125,000 | 1,105,137 |
| Principal Amount | Value |
|
Illinois (continued) |
State of Illinois, Unlimited General Obligation | | |
3.50%, due 6/1/31 | $ 1,700,000 | $ 1,602,593 |
Series D | | |
5.00%, due 11/1/24 | 10,000,000 | 10,048,642 |
Series D | | |
5.00%, due 11/1/25 | 5,100,000 | 5,188,944 |
Series A | | |
5.00%, due 3/1/29 | 3,745,000 | 3,986,588 |
Series B | | |
5.00%, due 10/1/29 | 800,000 | 858,027 |
Series C | | |
5.00%, due 11/1/29 | 5,920,000 | 6,181,325 |
Upper Illinois River Valley Development Authority, Morris Hospital Obligated Group, Revenue Bonds | | |
5.00%, due 12/1/27 | 1,145,000 | 1,171,275 |
| | 35,332,687 |
Indiana 1.6% |
Center Grove Community School Corp., Limited General Obligation | | |
Insured: State Intercept | | |
5.00%, due 1/1/25 | 1,240,000 | 1,245,333 |
Insured: State Intercept | | |
5.00%, due 7/1/25 | 1,760,000 | 1,776,115 |
Insured: State Intercept | | |
5.00%, due 1/1/26 | 1,805,000 | 1,830,582 |
Indiana Finance Authority, Indianapolis Power & Light Co. Project, Revenue Bonds | | |
Series B | | |
0.65%, due 8/1/25 | 1,500,000 | 1,410,476 |
Series A | | |
0.75%, due 12/1/38 (a) | 2,000,000 | 1,835,746 |
Indiana Finance Authority, Deaconess Health System, Revenue Bonds | | |
Series B | | |
4.07%, due 3/1/39 | 1,765,000 | 1,738,012 |
Indianapolis Local Public Improvement Bond Bank, Revenue Bonds | | |
Series D | | |
5.00%, due 1/1/26 (b) | 2,495,000 | 2,536,795 |
| | 12,373,059 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay MacKay Short Term Municipal Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Iowa 0.4% |
City of West Des Moines, Urban Renewal, Unlimited General Obligation | | |
Series D | | |
2.70%, due 6/1/28 | $ 1,145,000 | $ 1,086,866 |
Iowa Finance Authority, Renewable Natural Gas Project, Green Bond, Revenue Bonds | | |
3.875%, due 1/1/42 (a)(b) | 2,000,000 | 1,990,308 |
| | 3,077,174 |
Kansas 0.1% |
Reno County Unified School District No. 309, Nickerson, Unlimited General Obligation | | |
Insured: AGM | | |
5.00%, due 9/1/27 | 775,000 | 811,906 |
Kentucky 1.4% |
County of Knott, Revenue Bonds | | |
4.00%, due 3/28/44 (a)(b)(c) | 4,000,000 | 3,988,516 |
County of Owen, American Water Capital Corp., Revenue Bonds | | |
Series A | | |
2.45%, due 6/1/39 (a) | 3,000,000 | 2,755,151 |
Kentucky Economic Development Finance Authority, Next Generation Information Highway Project, Revenue Bonds, Senior Lien | | |
Series A | | |
5.00%, due 7/1/27 | 4,245,000 | 4,275,459 |
| | 11,019,126 |
Louisiana 1.4% |
Jefferson Sales Tax District, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 12/1/26 | 1,500,000 | 1,555,590 |
Louisiana Local Government Environmental Facilities & Community Development Authority | | |
Series 2023-ELL, Class A1 | | |
5.081%, due 6/1/31 | 9,696,212 | 9,591,378 |
| | 11,146,968 |
| Principal Amount | Value |
|
Maine 0.2% |
Finance Authority of Maine, Supplemental Education Loan Program, Revenue Bonds | | |
Series A-1, Insured: AGM | | |
5.00%, due 12/1/28 (b) | $ 1,000,000 | $ 1,031,850 |
Maine Health & Higher Educational Facilities Authority, Northern Light Health Obligated Group, Revenue Bonds | | |
Series C, Insured: AGM State Aid Withholding | | |
5.00%, due 7/1/26 | 200,000 | 206,209 |
Series C, Insured: AGM State Aid Withholding | | |
5.00%, due 7/1/27 | 200,000 | 209,617 |
| | 1,447,676 |
Massachusetts 0.5% |
Commonwealth of Massachusetts, Revenue Bonds | | |
Insured: NATL-RE | | |
5.50%, due 1/1/25 | 689,000 | 696,583 |
Massachusetts Housing Finance Agency, Revenue Bonds | | |
Series B-2 | | |
0.80%, due 12/1/25 | 1,820,000 | 1,704,851 |
Town of Sutton, Unlimited General Obligation | | |
2.05%, due 6/1/26 | 1,950,000 | 1,857,237 |
| | 4,258,671 |
Michigan 2.7% |
City of Detroit, Water Sewage Disposal System, Revenue Bonds | | |
Series D, Insured: AGM | | |
4.328%, due 7/1/32 | 13,500,000 | 12,940,497 |
Michigan Finance Authority, Revenue Bonds, Senior Lien | | |
Series A-1 | | |
2.326%, due 6/1/30 | 2,590,019 | 2,525,240 |
Michigan Finance Authority, Provident Group - HFH Energy LLC, Revenue Bonds | | |
5.00%, due 8/31/28 | 1,000,000 | 1,055,793 |
5.00%, due 8/31/29 | 1,075,000 | 1,150,737 |
5.00%, due 8/31/30 | 1,400,000 | 1,515,982 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Michigan (continued) |
Michigan State Housing Development Authority, Revenue Bonds | | |
Series A | | |
3.35%, due 6/1/30 | $ 1,780,000 | $ 1,738,680 |
| | 20,926,929 |
Minnesota 3.3% |
Brooklyn Center Independent School District No. 286, Unlimited General Obligation | | |
Series C, Insured: SD CRED PROG | | |
5.00%, due 9/30/24 | 3,200,000 | 3,207,176 |
City of Minneapolis, Unlimited General Obligation | | |
4.00%, due 12/1/25 | 5,500,000 | 5,557,662 |
Shakopee Independent School District No. 720, Unlimited General Obligation | | |
Series C, Insured: SD CRED PROG | | |
(zero coupon), due 2/1/29 | 5,155,000 | 4,289,771 |
South Washington County Independent School District No. 833, School Building, Unlimited General Obligation | | |
Series B, Insured: SD CRED PROG | | |
3.00%, due 2/1/27 | 8,040,000 | 7,819,414 |
Southern Minnesota Municipal Power Agency, Revenue Bonds | | |
Series A, Insured: NATL-RE | | |
(zero coupon), due 1/1/25 | 2,070,000 | 2,009,912 |
State of Minnesota, Unlimited General Obligation | | |
Series B | | |
3.25%, due 8/1/29 | 3,000,000 | 2,969,769 |
| | 25,853,704 |
Mississippi 0.6% |
State of Mississippi, Unlimited General Obligation | | |
Series C | | |
4.053%, due 10/1/27 | 4,470,000 | 4,384,253 |
Missouri 0.2% |
Kansas City Municipal Assistance Corp., Leasehold, Revenue Bonds | | |
Series B-1, Insured: AMBAC | | |
(zero coupon), due 4/15/26 | 2,000,000 | 1,858,198 |
| Principal Amount | Value |
|
Montana 0.6% |
City of Forsyth, NorthWestern Corp., Revenue Bonds | | |
3.875%, due 7/1/28 | $ 3,060,000 | $ 3,077,554 |
Montana Facility Finance Authority, Kalispell Regional Medical Center, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/29 | 1,270,000 | 1,310,363 |
| | 4,387,917 |
Nebraska 0.3% |
Central Plains Energy Project, Revenue Bonds | | |
2.50%, due 12/1/49 (a) | 2,050,000 | 2,000,205 |
Nevada 2.7% |
County of Clark, Department of Aviation, Revenue Bonds, Sub. Lien | | |
Series B | | |
5.00%, due 7/1/26 (b) | 3,000,000 | 3,082,412 |
State of Nevada, Limited General Obligation | | |
Series A | | |
5.00%, due 5/1/25 | 10,000,000 | 10,144,546 |
State of Nevada Highway Improvement, Motor Vehicle, Revenue Bonds | | |
3.00%, due 12/1/26 | 7,500,000 | 7,355,328 |
| | 20,582,286 |
New Jersey 3.6% |
Essex County Improvement Authority, North Star Academy Charter School of Newark, Inc., Revenue Bonds | | |
Series B | | |
3.00%, due 8/1/25 (c) | 700,000 | 664,239 |
Jersey City Municipal Utilities Authority, Water Revenue, Revenue Notes | | |
Series A | | |
5.00%, due 5/1/25 | 1,000,000 | 1,009,281 |
New Jersey Economic Development Authority, New Jersey-American Water Co., Inc., Revenue Bonds | | |
Series A | | |
2.20%, due 10/1/39 (a)(b) | 3,500,000 | 3,035,504 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay MacKay Short Term Municipal Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New Jersey (continued) |
New Jersey Economic Development Authority, Liberty State Park Project, Revenue Bonds | | |
Series A | | |
4.125%, due 6/15/27 | $ 2,900,000 | $ 2,906,175 |
New Jersey Higher Education Student Assistance Authority, Revenue Bonds, Senior Lien | | |
Series B | | |
5.00%, due 12/1/24 (b) | 1,210,000 | 1,217,223 |
New Jersey Transportation Trust Fund Authority, Transportation System, Revenue Bonds | | |
Series B | | |
2.631%, due 6/15/24 | 3,400,000 | 3,387,865 |
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement, Revenue Bonds | | |
Series A-1 | | |
5.00%, due 6/15/27 | 10,000,000 | 10,287,910 |
State of New Jersey, COVID-19 General Obligation Emergency Bonds, Unlimited General Obligation | | |
Series A | | |
5.00%, due 6/1/26 | 5,000,000 | 5,166,408 |
| | 27,674,605 |
New York 5.2% |
City of New York, Unlimited General Obligation | | |
Series B-2 | | |
2.90%, due 10/1/27 | 3,600,000 | 3,357,339 |
Marcellus Central School District, Unlimited General Obligation | | |
Insured: State Aid Withholding | | |
4.75%, due 7/2/24 | 8,400,000 | 8,408,603 |
New York State Dormitory Authority, State of New York Personal Income Tax, Revenue Bonds | | |
Series C | | |
1.952%, due 3/15/29 | 4,525,000 | 3,882,517 |
New York State Energy Research & Development Authority, New York State Electric & Gas Corp., Revenue Bonds | | |
Series D | | |
3.50%, due 10/1/29 | 7,285,000 | 7,107,830 |
| Principal Amount | Value |
|
New York (continued) |
New York State Housing Finance Agency, Revenue Bonds | | |
Series A, Insured: SONYMA HUD Sector 8 | | |
0.75%, due 11/1/25 | $ 960,000 | $ 900,562 |
Series E | | |
0.95%, due 5/1/25 | 5,050,000 | 4,823,339 |
New York Transportation Development Corp., Terminal 4 John F. Kennedy International Airport Project, Revenue Bonds (b) | | |
Insured: AGM-CR | | |
5.00%, due 12/1/26 | 5,000,000 | 5,167,810 |
Insured: AGM-CR | | |
5.00%, due 12/1/29 | 4,000,000 | 4,312,911 |
5.00%, due 12/1/30 | 2,000,000 | 2,141,346 |
| | 40,102,257 |
North Carolina 1.3% |
County of Wake, Unlimited General Obligation | | |
Series A | | |
5.00%, due 5/1/25 | 4,010,000 | 4,071,510 |
Greater Asheville Regional Airport Authority, Revenue Bonds (b) | | |
Insured: AGM | | |
5.00%, due 7/1/28 | 1,000,000 | 1,052,963 |
Insured: AGM | | |
5.00%, due 7/1/29 | 1,165,000 | 1,244,901 |
Insured: AGM | | |
5.00%, due 7/1/30 | 1,100,000 | 1,188,935 |
North Carolina State Education Assistance Authority, Revenue Bonds, Senior Lien (b) | | |
Series A | | |
5.50%, due 6/1/28 | 750,000 | 784,393 |
Series A | | |
5.50%, due 6/1/29 | 1,300,000 | 1,374,856 |
| | 9,717,558 |
Ohio 3.7% |
County of Lorain, Limited General Obligation | | |
4.125%, due 5/2/24 | 4,450,000 | 4,450,000 |
County of Lucas, Revenue Notes | | |
6.25%, due 10/11/24 | 3,500,000 | 3,503,972 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Ohio (continued) |
Ohio Air Quality Development Authority, American Electric Power Co. Project, Revenue Bonds (a)(b) | | |
Series C | | |
2.10%, due 12/1/27 | $ 2,210,000 | $ 2,174,523 |
Series B | | |
2.10%, due 7/1/28 | 5,000,000 | 4,919,736 |
Ohio Higher Educational Facility Commission, Case Western Reserve University, Revenue Bonds | | |
Series B | | |
4.00%, due 12/1/42 | 3,995,000 | 3,922,001 |
Ohio Turnpike & Infrastructure Commission, Revenue Bonds, Junior Lien | | |
Series A | | |
5.00%, due 2/15/26 | 2,000,000 | 2,057,619 |
Springboro Community City School District, Unlimited General Obligation | | |
Insured: AGM | | |
5.25%, due 12/1/25 | 2,000,000 | 2,049,821 |
State of Ohio, Unlimited General Obligation | | |
Series A | | |
5.00%, due 3/1/26 | 1,275,000 | 1,314,398 |
Series U | | |
5.00%, due 5/1/27 | 2,580,000 | 2,718,216 |
State of Ohio, Portsmouth Bypass Project, Revenue Bonds | | |
Insured: AGM | | |
5.00%, due 12/31/28 (b) | 1,275,000 | 1,283,827 |
| | 28,394,113 |
Oregon 2.2% |
City of Portland, Sewer System, Revenue Bonds, First Lien | | |
Series A | | |
3.00%, due 6/1/27 | 8,475,000 | 8,288,731 |
Clackamas County Service District No. 1, Revenue Bonds | | |
2.375%, due 12/1/31 | 3,000,000 | 2,677,338 |
Oregon School Boards Association, Limited General Obligation | | |
Series B, Insured: NATL-RE | | |
5.55%, due 6/30/28 | 5,760,000 | 5,764,634 |
| | 16,730,703 |
| Principal Amount | Value |
|
Pennsylvania 6.2% |
Commonwealth of Pennsylvania, Unlimited General Obligation | | |
3.20%, due 3/1/29 | $ 5,000,000 | $ 4,955,792 |
Lehigh County General Purpose Authority, Muhlenberg College Project, Revenue Bonds | | |
4.35%, due 11/1/37 | 11,750,000 | 11,728,778 |
Montgomery County Industrial Development Authority, Albert Einstein Healthcare Network, Revenue Bonds | | |
Series A | | |
5.25%, due 1/15/45 | 11,385,000 | 11,498,001 |
Pennsylvania Economic Development Financing Authority, Waste Management, Inc. Project, Revenue Bonds | | |
0.95%, due 12/1/33 (a) | 8,000,000 | 7,359,268 |
Series A | | |
4.17%, due 6/1/41 (b) | 9,000,000 | 8,996,684 |
Pennsylvania Higher Educational Facilities Authority, Indiana University, Revenue Bonds | | |
Series A, Insured: AGC | | |
4.328%, due 7/1/27 | 1,820,000 | 1,805,864 |
Sports & Exhibition Authority of Pittsburgh & Allegheny County, Revenue Bonds | | |
Insured: AGM | | |
4.00%, due 2/1/25 | 1,630,000 | 1,633,589 |
| | 47,977,976 |
Rhode Island 0.3% |
State of Rhode Island, Unlimited General Obligation | | |
Series A | | |
5.00%, due 5/1/25 | 2,435,000 | 2,472,351 |
South Carolina 1.2% |
Richland County School District No. 1, Unlimited General Obligation | | |
Series C, Insured: SCSDE | | |
3.00%, due 3/1/26 | 8,900,000 | 8,688,345 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay MacKay Short Term Municipal Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
South Carolina (continued) |
South Carolina State Housing Finance & Development Authority, Dillon School Senior LP, Revenue Bonds | | |
Insured: HUD Sector 202 | | |
5.00%, due 10/1/26 (a) | $ 1,000,000 | $ 1,009,006 |
| | 9,697,351 |
Tennessee 1.1% |
County of Knox, Unlimited General Obligation | | |
Series B | | |
2.375%, due 6/1/29 | 1,000,000 | 920,717 |
Tennessee Energy Acquisition Corp., Revenue Bonds | | |
4.00%, due 11/1/49 (a) | 7,650,000 | 7,649,773 |
| | 8,570,490 |
Texas 10.8% |
Capital Area Housing Finance Corp., Grand Avenue Flats Ltd., Revenue Bonds | | |
0.29%, due 8/1/39 (a) | 8,000,000 | 7,916,311 |
Central Texas Turnpike System, Revenue Bonds, First Tier | | |
Series A, Insured: AMBAC | | |
(zero coupon), due 8/15/25 | 6,600,000 | 6,267,694 |
City of Dallas, Limited General Obligation | | |
Series B | | |
5.00%, due 2/15/26 | 7,000,000 | 7,196,755 |
Series B | | |
5.00%, due 2/15/26 | 7,000,000 | 7,196,755 |
City of Georgetown, Utility System, Revenue Bonds | | |
Insured: BAM | | |
5.00%, due 8/15/25 | 520,000 | 528,468 |
Insured: BAM | | |
5.00%, due 8/15/27 | 1,110,000 | 1,167,992 |
City of Greenville, Waterworks & Sewer System, Revenue Bonds | | |
Insured: AGM | | |
5.00%, due 2/15/28 (d) | 1,775,000 | 1,881,594 |
City of Houston, Combined Utility System, Revenue Bonds, First Lien | | |
Series B | | |
5.00%, due 11/15/26 | 2,000,000 | 2,079,978 |
| Principal Amount | Value |
|
Texas (continued) |
City of Mesquite, Waterworks & Sewer System, Revenue Bonds | | |
5.00%, due 3/1/26 | $ 1,035,000 | $ 1,060,672 |
5.00%, due 3/1/27 | 1,085,000 | 1,131,356 |
Denton Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
3.00%, due 8/15/28 | 5,950,000 | 5,738,359 |
Fort Bend County Municipal Utility District No. 134B, Unlimited General Obligation | | |
Insured: AGM | | |
6.50%, due 3/1/27 | 390,000 | 418,716 |
Harris County Municipal Utility District No. 171, Unlimited General Obligation | | |
Insured: BAM | | |
7.00%, due 12/1/26 | 930,000 | 999,975 |
Insured: BAM | | |
7.00%, due 12/1/27 | 800,000 | 884,615 |
Harris County Municipal Utility District No. 489, Unlimited General Obligation | | |
Insured: BAM | | |
6.00%, due 9/1/25 | 980,000 | 1,004,328 |
Insured: BAM | | |
6.00%, due 9/1/26 | 980,000 | 1,028,103 |
Harris County Municipal Utility District No. 490, Unlimited General Obligation | | |
Insured: AGM | | |
7.50%, due 9/1/29 | 1,420,000 | 1,591,186 |
Harris County Water Control & Improvement District No. 158, Unlimited General Obligation | | |
Insured: BAM | | |
7.00%, due 9/1/25 | 310,000 | 321,464 |
Insured: BAM | | |
7.00%, due 9/1/26 | 325,000 | 346,787 |
Matagorda County Navigation District No. 1, Central Power and Light Company Project, Revenue Bonds | | |
Series A | | |
2.60%, due 11/1/29 | 4,260,000 | 3,836,771 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Texas (continued) |
Montgomery County Municipal Utility District No. 138, Unlimited General Obligation | | |
Insured: AGM | | |
6.375%, due 9/1/30 | $ 1,850,000 | $ 2,048,373 |
Port of Corpus Christi Authority of Nueces County, Revenue Bonds | | |
3.737%, due 12/1/26 | 3,000,000 | 2,894,882 |
State of Texas, Public Finance Authority, Unlimited General Obligation | | |
2.326%, due 10/1/29 | 3,000,000 | 2,643,755 |
State of Texas, College Student Loan, Unlimited General Obligation | | |
Series A | | |
5.25%, due 8/1/28 (b) | 2,360,000 | 2,509,904 |
Texas Municipal Gas Acquisition & Supply Corp. II, Revenue Bonds | | |
Series C | | |
4.38%, due 9/15/27 | 13,330,000 | 13,301,446 |
Texas Natural Gas Securitization Finance Corp., Revenue Bonds | | |
Series A-1 | | |
5.102%, due 4/1/35 | 4,850,201 | 4,801,025 |
Texas Public Finance Authority, Financing System-Texas Southern University, Revenue Bonds | | |
Insured: BAM | | |
5.00%, due 5/1/25 | 480,000 | 484,636 |
Insured: BAM | | |
5.00%, due 5/1/26 | 500,000 | 510,433 |
Insured: BAM | | |
5.00%, due 5/1/27 | 620,000 | 641,351 |
Texas Transportation Commission State Highway Fund, Revenue Bonds, First Tier | | |
5.00%, due 4/1/25 | 1,000,000 | 1,012,351 |
| | 83,446,035 |
U.S. Virgin Islands 2.7% |
Matching Fund Special Purpose Securitization Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/25 | 4,200,000 | 4,268,889 |
Series A | | |
5.00%, due 10/1/26 | 15,430,000 | 15,864,430 |
| Principal Amount | Value |
|
U.S. Virgin Islands (continued) |
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue Bonds | | |
Insured: NATL-RE | | |
5.00%, due 10/1/24 | $ 395,000 | $ 399,192 |
| | 20,532,511 |
Utah 1.1% |
City of Salt Lake City, Airport, Revenue Bonds (b) | | |
Series A | | |
5.00%, due 7/1/25 | 875,000 | 884,402 |
Series A | | |
5.00%, due 7/1/27 | 235,000 | 243,512 |
County of Salt Lake, Convention Hotel, Unlimited General Obligation | | |
Series B | | |
2.00%, due 12/15/25 | 2,000,000 | 1,925,316 |
Series B | | |
2.30%, due 12/15/28 | 1,000,000 | 933,611 |
Series B | | |
2.60%, due 12/15/30 | 1,425,000 | 1,328,941 |
State of Utah, Build America Bonds, Unlimited General Obligation | | |
Series B | | |
3.539%, due 7/1/25 | 1,811,921 | 1,791,185 |
Utah Infrastructure Agency, Telecommunication, Revenue Bonds | | |
5.00%, due 10/15/26 | 1,265,000 | 1,275,526 |
| | 8,382,493 |
Virginia 1.8% |
County of Loudoun, Public Improvement, Unlimited General Obligation | | |
Series A, Insured: State Aid Withholding | | |
3.00%, due 12/1/28 | 5,475,000 | 5,299,580 |
Petersburg Redevelopment & Housing Authority, PB Petersburg Owner II LLC, Revenue Bonds | | |
4.00%, due 5/1/45 (a) | 2,500,000 | 2,497,621 |
Virginia College Building Authority, 21st Century College & Equipment Programs, Revenue Bonds | | |
Series D, Insured: State Intercept | | |
3.00%, due 2/1/26 | 3,000,000 | 2,958,279 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay MacKay Short Term Municipal Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Virginia (continued) |
Wise County Industrial Development Authority, Virginia Electric and Power Co. Project, Revenue Bonds | | |
Series A | | |
0.75%, due 10/1/40 (a) | $ 3,000,000 | $ 2,806,124 |
| | 13,561,604 |
Washington 2.6% |
County of King, Sewer, Revenue Bonds, Junior Lien | | |
Series A | | |
4.00%, due 1/1/40 | 10,000,000 | 9,898,640 |
King County School District No. 411, Issaquah, Unlimited General Obligation | | |
Insured: School Bond Guaranty | | |
3.00%, due 12/1/30 | 2,050,000 | 1,990,237 |
Seattle Housing Authority, Revenue Bonds | | |
1.00%, due 6/1/26 | 895,000 | 833,106 |
State of Washington, Motor Vehicle Fuel Tax, Unlimited General Obligation | | |
Series F, Insured: AMBAC | | |
(zero coupon), due 12/1/26 | 2,000,000 | 1,826,637 |
Series F, Insured: NATL-RE | | |
(zero coupon), due 12/1/26 | 5,720,000 | 5,224,180 |
| | 19,772,800 |
Wisconsin 2.7% |
City of Madison, Unlimited General Obligation | | |
Series A | | |
2.10%, due 10/1/26 | 6,690,000 | 6,316,159 |
Series A | | |
2.15%, due 10/1/27 | 6,690,000 | 6,224,464 |
County of Dane, Unlimited General Obligation | | |
Series A | | |
2.00%, due 6/1/26 | 3,000,000 | 2,840,203 |
Racine Unified School District, Revenue Bonds | | |
Series B | | |
4.125%, due 4/1/25 | 4,500,000 | 4,489,854 |
| Principal Amount | | Value |
|
Wisconsin (continued) |
Wisconsin Housing & Economic Development Authority, Revenue Bonds | | | |
Series B, Insured: HUD Sector 8 | | | |
0.50%, due 11/1/50 (a) | $ 750,000 | | $ 730,390 |
| | | 20,601,070 |
Total Long-Term Municipal Bonds (Cost $753,850,090) | | | 755,485,304 |
Short-Term Municipal Notes 0.5% |
Utah 0.5% |
City of Murray, Intermountain Healthcare, Revenue Bonds | | | |
Series B | | | |
3.70%, due 5/15/37 (e) | 4,000,000 | | 4,000,000 |
Total Short-Term Municipal Notes (Cost $4,000,000) | | | 4,000,000 |
Total Municipal Bonds (Cost $757,850,090) | | | 759,485,304 |
|
Long-Term Bonds 0.3% |
Corporate Bond 0.3% |
Electric 0.3% |
Virginia Power Fuel Securitization LLC | | | |
Series A-1 | | | |
5.088%, due 5/1/27 | 2,250,000 | | 2,232,093 |
Total Long-Term Bonds (Cost $2,249,975) | | | 2,232,093 |
Total Investments (Cost $760,100,065) | 98.7% | | 761,717,397 |
Other Assets, Less Liabilities | 1.3 | | 9,997,537 |
Net Assets | 100.0% | | $ 771,714,934 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | Coupon rate may change based on changes of the underlying collateral or prepayments of principal. Rate shown was the rate in effect as of April 30, 2024. |
(b) | Interest on these securities was subject to alternative minimum tax . |
(c) | May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
(d) | Delayed delivery security. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
(e) | Variable-rate demand notes (VRDNs)—Provide the right to sell the security at face value on either that day or within the rate-reset period. VRDNs will normally trade as if the maturity is the earlier put date, even though stated maturity is longer. The interest rate is reset on the put date at a stipulated daily, weekly, monthly, quarterly, or other specified time interval to reflect current market conditions. These securities do not indicate a reference rate and spread in their description. The maturity date shown is the final maturity. |
Abbreviation(s): |
AGC—Assured Guaranty Corp. |
AGM—Assured Guaranty Municipal Corp. |
AMBAC—Ambac Assurance Corp. |
BAM—Build America Mutual Assurance Co. |
CR—Custodial Receipts |
FHLMC—Federal Home Loan Mortgage Corp. |
FNMA—Federal National Mortgage Association |
GNMA—Government National Mortgage Association |
HUD—Housing and Urban Development |
NATL-RE—National Public Finance Guarantee Corp. |
PSF-GTD—Permanent School Fund Guaranteed |
SCSDE—South Carolina State Department of Education |
SD CRED PROG—School District Credit Enhancement Program |
SONYMA—State of New York Mortgage Agency |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Municipal Bonds | | | | | | | |
Long-Term Municipal Bonds | $ — | | $ 755,485,304 | | $ — | | $ 755,485,304 |
Short-Term Municipal Notes | — | | 4,000,000 | | — | | 4,000,000 |
Total Municipal Bonds | — | | 759,485,304 | | — | | 759,485,304 |
Long-Term Bonds | | | | | | | |
Corporate Bond | — | | 2,232,093 | | — | | 2,232,093 |
Total Investments in Securities | $ — | | $ 761,717,397 | | $ — | | $ 761,717,397 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay MacKay Short Term Municipal Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $760,100,065) | $761,717,397 |
Cash | 13,014,640 |
Receivables: | |
Interest | 7,766,507 |
Fund shares sold | 729,696 |
Other assets | 11,501 |
Total assets | 783,239,741 |
Liabilities |
Payables: | |
Investment securities purchased | 7,620,496 |
Fund shares redeemed | 2,624,374 |
Manager (See Note 3) | 215,133 |
Custodian | 90,166 |
Transfer agent (See Note 3) | 61,166 |
Professional fees | 57,096 |
NYLIFE Distributors (See Note 3) | 55,721 |
Shareholder communication | 8,708 |
Trustees | 1,706 |
Accrued expenses | 13,825 |
Distributions payable | 776,416 |
Total liabilities | 11,524,807 |
Net assets | $771,714,934 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 83,891 |
Additional paid-in-capital | 855,772,716 |
| 855,856,607 |
Total distributable earnings (loss) | (84,141,673) |
Net assets | $771,714,934 |
Class A | |
Net assets applicable to outstanding shares | $223,943,754 |
Shares of beneficial interest outstanding | 24,343,519 |
Net asset value per share outstanding | $ 9.20 |
Maximum sales charge (1.00% of offering price) | 0.09 |
Maximum offering price per share outstanding | $ 9.29 |
Class A2 | |
Net assets applicable to outstanding shares | $ 41,919,502 |
Shares of beneficial interest outstanding | 4,551,103 |
Net asset value per share outstanding | $ 9.21 |
Maximum sales charge (2.00% of offering price) | 0.19 |
Maximum offering price per share outstanding | $ 9.40 |
Investor Class | |
Net assets applicable to outstanding shares | $ 2,141,894 |
Shares of beneficial interest outstanding | 232,182 |
Net asset value per share outstanding | $ 9.23 |
Maximum sales charge (0.50% of offering price) | 0.05 |
Maximum offering price per share outstanding | $ 9.28 |
Class I | |
Net assets applicable to outstanding shares | $444,613,358 |
Shares of beneficial interest outstanding | 48,335,398 |
Net asset value and offering price per share outstanding | $ 9.20 |
Class R6 | |
Net assets applicable to outstanding shares | $ 59,096,426 |
Shares of beneficial interest outstanding | 6,428,810 |
Net asset value and offering price per share outstanding | $ 9.19 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $15,104,426 |
Expenses | |
Manager (See Note 3) | 1,420,695 |
Distribution/Service—Class A (See Note 3) | 294,829 |
Distribution/Service—Class A2 (See Note 3) | 54,843 |
Distribution/Service—Investor Class (See Note 3) | 2,773 |
Transfer agent (See Note 3) | 155,307 |
Professional fees | 58,757 |
Registration | 51,239 |
Custodian | 14,836 |
Shareholder communication | 14,289 |
Trustees | 10,726 |
Miscellaneous | 20,554 |
Total expenses before waiver/reimbursement | 2,098,848 |
Expense waiver/reimbursement from Manager (See Note 3) | (75,579) |
Net expenses | 2,023,269 |
Net investment income (loss) | 13,081,157 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on investments | (1,436,623) |
Net change in unrealized appreciation (depreciation) on investments | 15,356,198 |
Net realized and unrealized gain (loss) | 13,919,575 |
Net increase (decrease) in net assets resulting from operations | $27,000,732 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay MacKay Short Term Municipal Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited) and period May 1, 2023 through October 31, 2023 and year ended April 30, 2023
| Six months ended April 30, 2024 | Period May 1, 2023 through October 31, 2023(a) | Year Ended April 30, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | | |
Net investment income (loss) | $ 13,081,157 | $ 15,152,986 | $ 25,333,011 |
Net realized gain (loss) | (1,436,623) | (7,724,927) | (59,327,437) |
Net change in unrealized appreciation (depreciation) | 15,356,198 | (12,955,835) | 51,945,156 |
Net increase (decrease) in net assets resulting from operations | 27,000,732 | (5,527,776) | 17,950,730 |
Distributions to shareholders: |
Class A | (3,609,227) | (4,037,568) | (6,648,263) |
Class A2 | (669,875) | (750,087) | (1,288,784) |
Investor Class | (30,382) | (30,656) | (40,583) |
Class I | (7,870,259) | (9,376,547) | (17,108,080) |
Class R6 | (968,306) | (1,091,968) | (1,910,732) |
Total distributions to shareholders | (13,148,049) | (15,286,826) | (26,996,442) |
Capital share transactions: | | | |
Net proceeds from sales of shares | 117,159,859 | 79,500,074 | 876,229,496 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 8,278,950 | 9,539,301 | 16,530,565 |
Cost of shares redeemed | (236,530,894) | (311,321,448) | (1,409,052,393) |
Increase (decrease) in net assets derived from capital share transactions | (111,092,085) | (222,282,073) | (516,292,332) |
Net increase (decrease) in net assets | (97,239,402) | (243,096,675) | (525,338,044) |
Net Assets |
Beginning of period | 868,954,336 | 1,112,051,011 | 1,637,389,055 |
End of period | $ 771,714,934 | $ 868,954,336 | $ 1,112,051,011 |
(a) | The Fund changed its fiscal year end from April 30 to October 31. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | May 1, 2023 October 31, | | Year Ended April 30, |
Class A | 2024 * | | 2023 # | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.06 | | $ 9.26 | | $ 9.31 | | $ 9.73 | | $ 9.54 | | $ 9.58 | | $ 9.51 |
Net investment income (loss) (a) | 0.14 | | 0.13 | | 0.15 | | 0.04 | | 0.06 | | 0.13 | | 0.12 |
Net realized and unrealized gain (loss) | 0.14 | | (0.20) | | (0.03) | | (0.41) | | 0.21 | | (0.03) | | 0.07 |
Total from investment operations | 0.28 | | (0.07) | | 0.12 | | (0.37) | | 0.27 | | 0.10 | | 0.19 |
Less distributions: | | | | | | | | | | | | | |
From net investment income | (0.14) | | (0.13) | | (0.17) | | (0.05) | | (0.08) | | (0.14) | | (0.12) |
Net asset value at end of period | $ 9.20 | | $ 9.06 | | $ 9.26 | | $ 9.31 | | $ 9.73 | | $ 9.54 | | $ 9.58 |
Total investment return (b) | 3.10% | | (0.73)% | | 1.32% | | (3.81)% | | 2.85% | | 1.05% | | 2.04%(c) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | 3.04%†† | | 2.84%†† | | 1.66% | | 0.36% | | 0.63% | | 1.30% | | 1.28% |
Net expenses | 0.68%†† | | 0.69%†† | | 0.68% | | 0.67% | | 0.65% | | 0.69% | | 0.71% |
Expenses (before waiver/reimbursement) | 0.68%†† | | 0.69%†† | | 0.68% | | 0.67% | | 0.65% | | 0.70% | | 0.71% |
Portfolio turnover rate | 19%(d) | | 61%(d) | | 99%(d) | | 62%(d) | | 28%(d) | | 94%(d) | | 96% |
Net assets at end of period (in 000's) | $ 223,944 | | $ 250,092 | | $ 306,828 | | $ 409,722 | | $ 503,769 | | $ 152,614 | | $ 113,023 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
| Six months ended April 30, | | May 1, 2023 through October 31, | | Year Ended April 30, | | September 30, 2020^ through April 30, 2021 |
Class A2 | 2024 * | | 2023 # | | 2023 | | 2022 | |
Net asset value at beginning of period | $ 9.07 | | $ 9.27 | | $ 9.32 | | $ 9.75 | | $ 9.70** |
Net investment income (loss) (a) | 0.14 | | 0.13 | | 0.15 | | 0.03 | | 0.02 |
Net realized and unrealized gain (loss) | 0.14 | | (0.20) | | (0.03) | | (0.41) | | 0.07 |
Total from investment operations | 0.28 | | (0.07) | | 0.12 | | (0.38) | | 0.09 |
Less distributions: | | | | | | | | | |
From net investment income | (0.14) | | (0.13) | | (0.17) | | (0.05) | | (0.04) |
Net asset value at end of period | $ 9.21 | | $ 9.07 | | $ 9.27 | | $ 9.32 | | $ 9.75 |
Total investment return (b) | 3.09% | | (0.73)% | | 1.32% | | (3.91)% | | 0.90% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | |
Net investment income (loss) | 3.04%†† | | 2.84%†† | | 1.57% | | 0.36% | | 0.40%†† |
Net expenses | 0.68%†† | | 0.69%†† | | 0.68% | | 0.67% | | 0.65%†† |
Portfolio turnover rate (c) | 19% | | 61% | | 99% | | 62% | | 28% |
Net assets at end of period (in 000's) | $ 41,920 | | $ 48,197 | | $ 54,326 | | $ 98,890 | | $ 88,248 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 to October 31. |
** | Based on the net asset value of Class A as of September 30, 2020. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 | MainStay MacKay Short Term Municipal Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | May 1, 2023 through October 31, 2023# | | Year Ended April 30, |
Investor Class | 2024 * | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.08 | | $ 9.28 | | $ 9.33 | | $ 9.76 | | $ 9.57 | | $ 9.61 | | $ 9.54 |
Net investment income (loss) (a) | 0.13 | | 0.12 | | 0.13 | | 0.01 | | 0.04 | | 0.09 | | 0.08 |
Net realized and unrealized gain (loss) | 0.15 | | (0.20) | | (0.04) | | (0.42) | | 0.20 | | (0.02) | | 0.07 |
Total from investment operations | 0.28 | | (0.08) | | 0.09 | | (0.41) | | 0.24 | | 0.07 | | 0.15 |
Less distributions: | | | | | | | | | | | | | |
From net investment income | (0.13) | | (0.12) | | (0.14) | | (0.02) | | (0.05) | | (0.11) | | (0.08) |
Net asset value at end of period | $ 9.23 | | $ 9.08 | | $ 9.28 | | $ 9.33 | | $ 9.76 | | $ 9.57 | | $ 9.61 |
Total investment return (b) | 3.04% | | (0.89)% | | 0.99% | | (4.19)% | | 2.64% | | 0.61% | | 1.56% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | 2.72%†† | | 2.53%†† | | 1.37% | | 0.06% | | 0.41% | | 0.98% | | 0.81% |
Net expenses | 0.99%†† | | 0.99%†† | | 1.00% | | 0.99% | | 0.98% | | 1.09% | | 1.18% |
Expenses (before waiver/reimbursement) | 1.31%†† | | 1.32%†† | | 1.30% | | 1.24% | | 1.25% | | 1.28% | | 1.30% |
Portfolio turnover rate | 19%(c) | | 61%(c) | | 99%(c) | | 62%(c) | | 28%(c) | | 94%(c) | | 96% |
Net assets at end of period (in 000's) | $ 2,142 | | $ 2,230 | | $ 2,511 | | $ 2,884 | | $ 3,608 | | $ 4,158 | | $ 3,834 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 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. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
| Six months ended April 30, | | May 1, 2023 October 31, | | Year Ended April 30, |
Class I | 2024 * | | 2023 # | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 9.06 | | $ 9.26 | | $ 9.31 | | $ 9.73 | | $ 9.54 | | $ 9.58 | | $ 9.51 |
Net investment income (loss) (a) | 0.15 | | 0.14 | | 0.18 | | 0.06 | | 0.09 | | 0.15 | | 0.15 |
Net realized and unrealized gain (loss) | 0.14 | | (0.19) | | (0.03) | | (0.40) | | 0.21 | | (0.02) | | 0.07 |
Total from investment operations | 0.29 | | (0.05) | | 0.15 | | (0.34) | | 0.30 | | 0.13 | | 0.22 |
Less distributions: | | | | | | | | | | | | | |
From net investment income | (0.15) | | (0.15) | | (0.20) | | (0.08) | | (0.11) | | (0.17) | | (0.15) |
Net asset value at end of period | $ 9.20 | | $ 9.06 | | $ 9.26 | | $ 9.31 | | $ 9.73 | | $ 9.54 | | $ 9.58 |
Total investment return (b) | 3.24% | | (0.59)% | | 1.60% | | (3.55)% | | 3.12% | | 1.34% | | 2.34% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | 3.32%†† | | 3.13%†† | | 1.89% | | 0.63% | | 0.89% | | 1.58% | | 1.61% |
Net expenses | 0.40%†† | | 0.40%†† | | 0.40% | | 0.40% | | 0.40% | | 0.40% | | 0.40% |
Expenses (before waiver/reimbursement) | 0.43%†† | | 0.44%†† | | 0.43% | | 0.42% | | 0.40% | | 0.45% | | 0.45% |
Portfolio turnover rate | 19%(c) | | 61%(c) | | 99%(c) | | 62%(c) | | 28%(c) | | 94%(c) | | 96% |
Net assets at end of period (in 000's) | $ 444,613 | | $ 514,457 | | $ 663,175 | | $ 1,125,893 | | $ 1,400,328 | | $ 412,193 | | $ 337,116 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 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. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
25
Financial Highlights selected per share data and ratios
| April 30, | | May 1, 2023 through October 31, | | May 2, 2022^ through April 30, |
Class R6 | 2024 * | | 2023 # | | 2023 |
Net asset value at beginning of period | $ 9.05 | | $ 9.25 | | $ 9.30** |
Net investment income (loss) (a) | 0.15 | | 0.14 | | 0.18 |
Net realized and unrealized gain (loss) | 0.14 | | (0.19) | | (0.03) |
Total from investment operations | 0.29 | | (0.05) | | 0.15 |
Less distributions: | | | | | |
From net investment income | (0.15) | | (0.15) | | (0.20) |
Net asset value at end of period | $ 9.19 | | $ 9.05 | | $ 9.25 |
Total investment return (b) | 3.25% | | (0.59)% | | 1.60% |
Ratios (to average net assets)/Supplemental Data: | | | | | |
Net investment income (loss)†† | 3.32% | | 3.12% | | 2.00% |
Net expenses†† | 0.40% | | 0.40% | | 0.40%(c) |
Expenses (before waiver/reimbursement)†† | 0.40% | | 0.41% | | 0.40% |
Portfolio turnover rate (d) | 19% | | 61% | | 99% |
Net assets at end of period (in 000's) | $ 59,096 | | $ 53,978 | | $ 85,211 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 to October 31. |
** | Based on the net asset value of Class I as of May 2, 2022. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | Expense waiver/reimbursement less than 0.01%. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
26 | MainStay MacKay Short Term Municipal Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MacKay Short Term Municipal Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | January 2, 2004 |
Class A2 | September 30, 2020 |
Investor Class | February 28, 2008 |
Class I | January 2, 1991 |
Class R6 | May 2, 2022 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 0.50% may be imposed on certain redemptions made within 12 months of the date of purchase on shares that were purchased without an initial sales charge. Class A2 shares are offered at NAV without an initial sales charge, although a 0.50% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class A2 shares. Class I shares are offered at NAV without a sales charge. Class R6 shares are currently expected to be offered at NAV without a sales charge. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class A and Investor Class shares are subject to a distribution and/or service fee. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek current income exempt from regular federal income tax.
Effective at the close of business on May 1, 2023, the Fund changed its fiscal and tax year end from April 30 to October 31.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that
Notes to Financial Statements (Unaudited) (continued)
quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value.
Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Municipal debt securities are valued at the evaluated mean prices supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent's good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants' assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Municipal debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Municipal debt securities are generally categorized as Level 2 in the hierarchy.
28 | MainStay MacKay Short Term Municipal Fund |
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 dividends from net investment income, if any, daily and intends to pay them at least monthly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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 temporary cash investments that mature in 60 days or less at the time of purchase, for the Fund are accreted and amortized, respectively, on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) Delayed Delivery Transactions. The Fund may purchase or sell securities on a delayed delivery basis. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Fund will designate liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell delayed delivery securities before they are delivered, which may result in a realized gain or loss. When the Fund has sold a security it owns on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.
(H) Debt Securities Risk. The Fund's investments may include securities such as variable rate notes, floaters 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, investments in these types of securities could lose money for the Fund.
(I) Municipal Bond Risk. The Fund may invest more heavily in municipal bonds from certain cities, states, territories or regions than others, which may increase the Fund’s exposure to losses resulting from economic, political, regulatory occurrences, or declines in tax revenue impacting these particular cities, states, territories or regions. In addition, many state and municipal governments that issue securities are under significant economic and financial stress and may not be able to satisfy their obligations, and these events may be made worse due to economic challenges posed by COVID-19. The Fund may invest a substantial
Notes to Financial Statements (Unaudited) (continued)
amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects, such as tobacco settlement bonds. If the Fund concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and this may have a significant impact on the Fund’s investment performance.
Certain of the issuers in which the Fund may invest have recently experienced, or may experience, significant financial difficulties and repeated credit rating downgrades. On May 3, 2017, the Commonwealth of Puerto Rico (the "Commonwealth") began proceedings pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) to seek bankruptcy-type protections from approximately $74 billion in debt and approximately $48 billion in unfunded pension obligations. In addition, the economic downturn following the outbreak of COVID-19 and the resulting pressure on Puerto Rico’s budget have further contributed to its financial challenges. The federal government has passed certain relief packages, including the Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan, which included an aggregate of more than $7 billion in disaster relief funds for the U.S. territories, including Puerto Rico. However, there can be no assurances that the federal funds allocated to the Commonwealth will be sufficient to address the long-term economic challenges that arose from COVID-19.
As of October 31, 2023 PREPA remains in Title III Bankruptcy after over 6 years. A significant number of net revenue bond creditors, the Oversight Board, and the Commonwealth have been unable to reach a consensual resolution on PREPA’s debt restructuring following the termination of the previous 2019 PREPA Restructuring Support Agreement by the Commonwealth of Puerto Rico in March of 2022. Further bankruptcy litigation has ensued between the Oversight Board and a group of net revenue bond creditors over the security provisions of PREPA’s $8.3 billion of net revenue bonds resulting in a ruling in March 2023 from Judge Swain that PREPA’s net revenue bonds are unsecured.
Furthermore, in June of 2023 Judge Swain ruled through a claims estimation hearing that PREPA’s now asserted unsecured net revenue bond claim was only valued at approximately 2.383 billion or 28.3% of the full pre-petition claim asserted by net revenue bond holders. Due to the lower claims estimation ruling, at the end of August 2023 the Oversight Board filed a new proposed plan of adjustment to reflect the March lien ruling and June estimation hearing with lower recovery amounts afforded to net revenue bond holders. In conjunction with the new proposed plan of adjustment a subset of the original litigating PREPA Ad Hoc Creditor Group members including BlackRock, Nuveen, and Franklin entered into a Planned Support Agreement (”PSA”) supporting the new proposed plan of adjustment representing ~28.5% of total net revenue bond claims.
Furthermore, National Public Finance Guarantee Corporation also entered into an Amended Planned Support Agreement (“Amended PSA”) at the end of August re-affirming their support for the new August proposed plan of adjustment with ~9.91% of net revenue bond claims. Combined with second settling bond holders approving the plan at the end of November 2023, approximately 43% of PREPA’s net revenue creditors
now support the new August proposed plan of adjustment. However, subsequent to the new proposed plan of adjustment, a significant amount of creditors not previously involved in the PREPA bankruptcy formed a new PREPA Ad Hoc Group to object to the plan including the MainStay MacKay Municipal Bond Funds. Combined, objecting holders now represent over 50% of total PREPA net revenue bond claims including the newly constituted PREPA Ad Hoc Group, Golden Tree Asset Management, and Assured Guaranty Corporation.
Furthermore, National Public Finance Guarantee Corporation also entered into an Amended Planned Support Agreement (“Amended PSA”) at the end of August re-affirming their support for the new August proposed plan of adjustment with ~9.91% of net revenue bond claims. Combined with second settling bond holders approving the plan at the end of November 2023, approximately 43% of PREPA’s net revenue creditors now support the new August proposed plan of adjustment. However, subsequent to the new proposed plan of adjustment, a significant amount of creditors not previously involved in the PREPA bankruptcy formed a new PREPA Ad Hoc Group to object to the plan including the MainStay MacKay Municipal Bond Funds. Combined, objecting holders now represent over 50% of total PREPA net revenue bond claims including the newly constituted PREPA Ad Hoc Group, Golden Tree Asset Management, and Assured Guaranty Corporation.
Objecting creditors are appealing several of Judge Swain’s rulings including the March net revenue bond lien ruling, the June net revenue bond claims estimation ruling, and the November disclosure statement approval ruling that provides for a plan with drastically disparate recoveries for the same creditors. While objecting creditors believe the PREPA bankruptcy plan of adjustment is patently un-confirmable and Judge Swain’s rulings will be overturned on appeal, there is no certainty that objecting creditors will be successful in appealing Judge Swain’s rulings, or if overturned, will receive adequate relief from those rulings being overturned. The proposed PREPA August plan of adjustment only provides 3.5 cents of cash recovery for objecting creditors to the plan. Bankruptcy plan confirmation hearings are currently scheduled to begin in March of 2024.
The Fund’s vulnerability to potential losses associated with such developments may be reduced through investing in municipal securities that feature credit enhancements (such as bond insurance). The bond insurance provider pays both principal and interest when due to the bond holder. The magnitude of Puerto Rico’s debt restructuring or other adverse economic developments could pose significant strains on the ability of municipal securities insurers to meet all future claims. As of April 30, 2024, none of the the Puerto Rico municipal securities held by the Fund were insured.
(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 that may provide general indemnifications. The Fund's maximum
30 | MainStay MacKay Short Term Municipal Fund |
exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC ("MacKay Shields" or the "Subadvisor"), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.35% on assets up to $1 billion; and 0.33% on assets from $1 billion up to $5 billion; and 0.32% on assets over $5 billion. During the six-month period ended April 30, 2024, the effective management fee rate was 0.35% of the Fund’s average daily net assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of daily net assets: Class A, 0.70%, Class A2, 0.70% and Class I, 0.40%. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points of the Class A shares waiver/reimbursement to Investor Class shares. In addition, New York Life Investments has also contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) for Class R6 shares do not exceed
those of Class I. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $1,420,695 and waived fees and/or reimbursed expenses in the amount of $75,579 and paid the Subadvisor fees in the amount of $672,558.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Class A2 and Investor Class Plans, the Distributor receives a monthly fee from Class A, Class A2 and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A, Class A2 and Investor Class shares for distribution and/or service activities as designated by the Distributor. Class I and Class R6 shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A2 and Investor Class shares during the six-month period ended April 30, 2024, were $167 and $95, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class A2 shares during the six-month period ended April 30, 2024, of $6,324 and $555.
(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
Notes to Financial Statements (Unaudited) (continued)
Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $46,109 | $ — |
Class A2 | 8,543 | — |
Investor Class | 7,387 | (3,505) |
Class I | 92,108 | — |
Class R6 | 1,160 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class A | $16,395,155 | 7.3% |
Class A2 | 25,068 | 0.1 |
Class R6 | 25,997 | 0.0‡ |
‡ | Less than one-tenth of a percent. |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $760,499,608 | $5,043,524 | $(3,825,735) | $1,217,789 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $83,852,166, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $34,175 | $49,677 |
During the period from May 1, 2023 through October 31, 2023(a) and the year ended April 30, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 | 2023 |
Distributions paid from: | | |
Ordinary Income | $ 2,601,361 | $ 2,442,564 |
Exempt Interest Dividends | 12,685,465 | 24,553,878 |
Total | $15,286,826 | $26,996,442 |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based
32 | MainStay MacKay Short Term Municipal Fund |
upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $152,058 and $262,494, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024, the period May 1, 2023 through October 31, 2023, and year ended April 30, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 2,346,857 | $ 21,733,655 |
Shares issued to shareholders in reinvestment of distributions | 240,459 | 2,226,308 |
Shares redeemed | (5,871,924) | (54,263,725) |
Net increase (decrease) in shares outstanding before conversion | (3,284,608) | (30,303,762) |
Shares converted into Class A (See Note 1) | 42,011 | 389,227 |
Shares converted from Class A (See Note 1) | (19,402) | (180,241) |
Net increase (decrease) | (3,261,999) | $ (30,094,776) |
Period ended October 31, 2023:(a) | | |
Shares sold | 1,870,237 | $ 17,187,666 |
Shares issued to shareholders in reinvestment of distributions | 263,992 | 2,420,096 |
Shares redeemed | (7,553,491) | (69,379,606) |
Net increase (decrease) in shares outstanding before conversion | (5,419,262) | (49,771,844) |
Shares converted into Class A (See Note 1) | 13,312 | 122,864 |
Shares converted from Class A (See Note 1) | (126,704) | (1,157,314) |
Net increase (decrease) | (5,532,654) | $ (50,806,294) |
Year ended April 30, 2023: | | |
Shares sold | 14,755,906 | $ 136,977,313 |
Shares issued to shareholders in reinvestment of distributions | 417,462 | 3,867,588 |
Shares redeemed | (26,092,382) | (241,951,367) |
Net increase (decrease) in shares outstanding before conversion | (10,919,014) | (101,106,466) |
Shares converted into Class A (See Note 1) | 112,523 | 1,047,020 |
Shares converted from Class A (See Note 1) | (66,834) | (614,825) |
Net increase (decrease) | (10,873,325) | $ (100,674,271) |
|
Notes to Financial Statements (Unaudited) (continued)
Class A2 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 300,179 | $ 2,787,793 |
Shares issued to shareholders in reinvestment of distributions | 72,262 | 669,875 |
Shares redeemed | (1,134,900) | (10,544,830) |
Net increase (decrease) | (762,459) | $ (7,087,162) |
Period ended October 31, 2023:(a) | | |
Shares sold | 344,203 | $ 3,175,535 |
Shares issued to shareholders in reinvestment of distributions | 81,724 | 750,087 |
Shares redeemed | (972,402) | (8,934,549) |
Net increase (decrease) | (546,475) | $ (5,008,927) |
Year ended April 30, 2023: | | |
Shares sold | 1,728,867 | $ 16,042,719 |
Shares issued to shareholders in reinvestment of distributions | 138,904 | 1,288,714 |
Shares redeemed | (6,577,094) | (60,995,488) |
Net increase (decrease) in shares outstanding before conversion | (4,709,323) | (43,664,055) |
Shares converted from Class A2 (See Note 1) | (41,230) | (384,679) |
Net increase (decrease) | (4,750,553) | $ (44,048,734) |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 30,075 | $ 278,992 |
Shares issued to shareholders in reinvestment of distributions | 3,132 | 29,091 |
Shares redeemed | (30,132) | (279,442) |
Net increase (decrease) in shares outstanding before conversion | 3,075 | 28,641 |
Shares converted from Investor Class (See Note 1) | (16,360) | (152,035) |
Net increase (decrease) | (13,285) | $ (123,394) |
Period ended October 31, 2023:(a) | | |
Shares sold | 14,082 | $ 129,864 |
Shares issued to shareholders in reinvestment of distributions | 3,207 | 29,475 |
Shares redeemed | (32,530) | (299,121) |
Net increase (decrease) in shares outstanding before conversion | (15,241) | (139,782) |
Shares converted into Investor Class (See Note 1) | 114 | 1,056 |
Shares converted from Investor Class (See Note 1) | (9,877) | (91,304) |
Net increase (decrease) | (25,004) | $ (230,030) |
Year ended April 30, 2023: | | |
Shares sold | 97,897 | $ 913,758 |
Shares issued to shareholders in reinvestment of distributions | 4,211 | 39,108 |
Shares redeemed | (104,885) | (974,735) |
Net increase (decrease) in shares outstanding before conversion | (2,777) | (21,869) |
Shares converted into Investor Class (See Note 1) | 114 | 1,056 |
Shares converted from Investor Class (See Note 1) | (35,836) | (333,994) |
Net increase (decrease) | (38,499) | $ (354,807) |
|
34 | MainStay MacKay Short Term Municipal Fund |
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 7,941,309 | $ 73,503,516 |
Shares issued to shareholders in reinvestment of distributions | 572,558 | 5,301,090 |
Shares redeemed | (16,963,880) | (156,839,674) |
Net increase (decrease) in shares outstanding before conversion | (8,450,013) | (78,035,068) |
Shares converted into Class I (See Note 1) | 19,402 | 180,241 |
Shares converted from Class I (See Note 1) | (25,615) | (237,192) |
Net increase (decrease) | (8,456,226) | $ (78,092,019) |
Period ended October 31, 2023:(a) | | |
Shares sold | 5,753,903 | $ 52,875,155 |
Shares issued to shareholders in reinvestment of distributions | 684,624 | 6,276,707 |
Shares redeemed | (21,765,106) | (200,002,409) |
Net increase (decrease) in shares outstanding before conversion | (15,326,579) | (140,850,547) |
Shares converted into Class I (See Note 1) | 499,718 | 4,603,963 |
Shares converted from Class I (See Note 1) | (9,503) | (88,069) |
Net increase (decrease) | (14,836,364) | $ (136,334,653) |
Year ended April 30, 2023: | | |
Shares sold | 70,614,891 | $ 654,927,375 |
Shares issued to shareholders in reinvestment of distributions | 1,213,482 | 11,244,993 |
Shares redeemed | (109,796,158) | (1,017,816,790) |
Net increase (decrease) in shares outstanding before conversion | (37,967,785) | (351,644,422) |
Shares converted into Class I (See Note 1) | 66,720 | 613,769 |
Shares converted from Class I (See Note 1) | (11,419,110) | (105,855,146) |
Net increase (decrease) | (49,320,175) | $ (456,885,799) |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 2,043,115 | $ 18,855,903 |
Shares issued to shareholders in reinvestment of distributions | 5,684 | 52,586 |
Shares redeemed | (1,582,487) | (14,603,223) |
Net increase (decrease) | 466,312 | $ 4,305,266 |
Period ended October 31, 2023:(a) | | |
Shares sold | 670,855 | $ 6,131,854 |
Shares issued to shareholders in reinvestment of distributions | 6,860 | 62,936 |
Shares redeemed | (3,557,734) | (32,705,763) |
Net increase (decrease) in shares outstanding before conversion | (2,880,019) | (26,510,973) |
Shares converted into Class R6 (See Note 1) | 8,091 | 74,919 |
Shares converted from Class R6 (See Note 1) | (375,523) | (3,466,115) |
Net increase (decrease) | (3,247,451) | $ (29,902,169) |
Period ended April 30, 2023:(b) | | |
Shares sold | 7,275,651 | $ 67,368,331 |
Shares issued to shareholders in reinvestment of distributions | 9,739 | 90,162 |
Shares redeemed | (9,471,562) | (87,314,013) |
Net increase (decrease) in shares outstanding before conversion | (2,186,172) | (19,855,520) |
Shares converted into Class R6 (See Note 1) | 11,431,231 | 105,853,196 |
Shares converted from Class R6 (See Note 1) | (35,110) | (326,397) |
Net increase (decrease) | 9,209,949 | $ 85,671,279 |
(a) | The Fund changed its fiscal year end from April 30 to October 31. |
(b) | The inception date of the class was May 2, 2022. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for
Notes to Financial Statements (Unaudited) (continued)
possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
36 | MainStay MacKay Short Term Municipal Fund |
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay MacKay Short Term Municipal 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and MacKay in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and MacKay in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or MacKay that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, MacKay personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and MacKay; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and MacKay; (iii) the costs of the services provided, and profits realized, by New York Life Investments and MacKay with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and MacKay. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and MacKay resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and MacKay
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by MacKay, evaluating the performance of MacKay, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of MacKay and ongoing analysis of, and interactions with, MacKay with respect to, among other things, the Fund’s investment performance and risks as well as MacKay’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that MacKay provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated MacKay’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and MacKay’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at MacKay. The Board considered New York Life Investments’ and MacKay’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and MacKay and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered MacKay’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and MacKay regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
38 | MainStay MacKay Short Term Municipal Fund |
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of MacKay and the members of the Board’s Investment Committee, which generally occur on an annual basis. In considering the investment performance of the Fund, the Board noted that the Fund underperformed its peer funds for the one-, three-, five- and ten-year periods ended July 31, 2023. The Board considered its discussions with representatives from New York Life Investments and MacKay regarding the Fund’s investment performance.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and MacKay
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because MacKay is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and MacKay in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and MacKay, and profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including MacKay’s, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and
that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and MacKay and acknowledged that New York Life Investments and MacKay must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial position for New York Life Investments and MacKay to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to MacKay from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to MacKay in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including MacKay, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to MacKay is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and MacKay on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of contractual breakpoints, voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
40 | MainStay MacKay Short Term Municipal Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
42 | MainStay MacKay Short Term Municipal Fund |
Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022215 MS081-24 | MSSTM10-06/24 |
(NYLIM) NL230
MainStay MacKay Strategic Municipal Allocation Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Since Inception | Gross Expense Ratio3 |
Class A Shares4 | Maximum 3.00% Initial Sales Charge | With sales charges | 6/28/2019 | 2.63% | -0.07% | 0.50% | 0.81% |
| | Excluding sales charges | | 5.81 | 3.02 | 1.46 | 0.81 |
Investor Class Shares5, 6 | Maximum 2.50% Initial Sales Charge | With sales charges | 6/28/2019 | 3.15 | 0.38 | 0.32 | 0.93 |
| | Excluding sales charges | | 5.79 | 2.95 | 1.28 | 0.93 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 6/28/2019 | 4.67 | 1.70 | 1.00 | 1.17 |
| if Redeemed Within 18 Months of Purchase | Excluding sales charges | | 5.67 | 2.69 | 1.00 | 1.17 |
Class C2 Shares | Maximum 1.00% CDSC | With sales charges | 12/13/2022 | 4.70 | 1.65 | 2.85 | 1.32 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 5.70 | 2.64 | 2.85 | 1.32 |
Class I Shares | No Sales Charge | | 6/28/2019 | 6.06 | 3.40 | 1.68 | 0.56 |
Class R6 Shares | No Sales Charge | | 6/28/2019 | 5.97 | 3.32 | 1.68 | 0.51 |
1. | Effective at the close of business on May 1, 2023, the Fund changed its fiscal and tax year end from April 30 to October 31. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Prior to August 10, 2022, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
5. | Prior to June 30, 2020, the maximum initial sales charge was 4.50%, which is reflected in the applicable average annual total return figures shown. |
6. | Prior to August 10, 2022, the maximum initial sales charge was 4.00%, which is reflected in the applicable average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Since Inception |
Bloomberg Municipal Bond Index2 | 7.06% | 2.08% | 0.94% |
Bloomberg Municipal Bond Index 1-15 Yr Blend3 | 5.41 | 1.85 | 1.06 |
Morningstar Muni National Intermediate Category Average4 | 6.59 | 2.46 | 0.82 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Bloomberg Municipal Bond Index, which represents a broad measure of market performance, as a replacement for the Bloomberg Municipal Bond Index 1-15 Yr Blend. The Bloomberg Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year. Bonds subject to the alternative minimum tax or with floating or zero coupons are excluded. |
3. | The Bloomberg Municipal Bond Index 1-15 Yr Blend, which is generally representative of the market sectors or types of investments in which the Fund invests, covers the USD-denominated long-term tax-exempt bond market. The index has four main sectors: state and local general obligations, revenue bonds, insured bonds and prerefunded bonds. |
4. | The Morningstar Municipal National Intermediate Category Average is representative of funds that invest in bonds issued by various state and local governments to fund public projects. The income from these bonds is generally free from federal taxes. To lower risk, these funds spread their assets across many states and sectors. These funds have durations of 4.0 to 6.0 years (or average maturities of five to 12 years). Results are based on average total returns of similar funds with all dividends 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 MacKay Strategic Municipal Allocation Fund |
Cost in Dollars of a $1,000 Investment in MainStay MacKay Strategic Municipal 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,058.10 | $3.79 | $1,021.18 | $3.72 | 0.74% |
Investor Class Shares | $1,000.00 | $1,057.90 | $3.99 | $1,020.98 | $3.92 | 0.78% |
Class C Shares | $1,000.00 | $1,056.70 | $5.27 | $1,019.74 | $5.17 | 1.03% |
Class C2 Shares | $1,000.00 | $1,057.00 | $6.03 | $1,019.00 | $5.92 | 1.18% |
Class I Shares | $1,000.00 | $1,060.60 | $2.51 | $1,022.43 | $2.46 | 0.49% |
Class R6 Shares | $1,000.00 | $1,059.70 | $2.30 | $1,022.63 | $2.26 | 0.45% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Portfolio Composition as of April 30, 2024 (Unaudited)
Texas | 11.1% |
Illinois | 10.7 |
California | 9.1 |
New York | 6.8 |
Florida | 4.7 |
New Jersey | 3.4 |
Colorado | 3.1 |
Alabama | 3.1 |
Indiana | 3.1 |
Michigan | 2.9 |
Pennsylvania | 2.9 |
Puerto Rico | 2.7 |
Utah | 2.5 |
Georgia | 2.3 |
North Carolina | 2.2 |
Washington | 2.2 |
Wisconsin | 2.1 |
Missouri | 2.1 |
Connecticut | 1.9 |
Ohio | 1.8 |
Louisiana | 1.8 |
Virginia | 1.7 |
Kentucky | 1.7 |
Arizona | 1.6 |
Tennessee | 1.0 |
Iowa | 1.0 |
Nebraska | 0.9 |
Maine | 0.9% |
Guam | 0.8 |
Maryland | 0.7 |
South Carolina | 0.7 |
District of Columbia | 0.6 |
Massachusetts | 0.5 |
New Hampshire | 0.5 |
Alaska | 0.5 |
Rhode Island | 0.5 |
Delaware | 0.5 |
Arkansas | 0.4 |
Minnesota | 0.4 |
West Virginia | 0.4 |
North Dakota | 0.4 |
Oregon | 0.4 |
Idaho | 0.3 |
U.S. Virgin Islands | 0.3 |
Hawaii | 0.3 |
Wyoming | 0.3 |
Nevada | 0.2 |
Mississippi | 0.1 |
Montana | 0.1 |
South Dakota | 0.1 |
Other Assets, Less Liabilities | –0.3 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | State of Texas, 4.00%-5.00%, due 8/1/30–4/1/37 |
2. | Black Belt Energy Gas District, 4.00%-5.50%, due 12/1/26–5/1/55 |
3. | Main Street Natural Gas, Inc., 4.00%-5.264%, due 8/1/49–12/1/54 |
4. | Puerto Rico Sales Tax Financing Corp., 4.329%-4.55%, due 7/1/40 |
5. | Chicago O'Hare International Airport, 5.00%-5.25%, due 1/1/36–7/1/48 |
6. | Chicago Board of Education, 4.00%-6.00%, due 12/1/31–12/1/46 |
7. | New Jersey Transportation Trust Fund Authority, 5.00%-5.25%, due 6/15/42–6/15/43 |
8. | City of Chicago, 4.00%-6.00%, due 11/1/26–1/1/44 |
9. | North Carolina State Education Assistance Authority, 5.50%, due 6/1/30–6/1/32 |
10. | City & County of Denver, 5.00%-5.75%, due 12/1/31–12/1/43 |
8 | MainStay MacKay Strategic Municipal Allocation Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Principal Amount | Value |
Municipal Bonds 100.1% |
Long-Term Municipal Bonds 97.2% |
Alabama 3.1% |
Alabama Housing Finance Authority, ECG Dry Creek LP, Revenue Bonds | | |
Series H | | |
5.00%, due 6/1/26 (a) | $ 500,000 | $ 502,503 |
Black Belt Energy Gas District, Gas Project No.4, Revenue Bonds | | |
Series A-1 | | |
4.00%, due 12/1/49 (a) | 1,480,000 | 1,481,264 |
Black Belt Energy Gas District, Gas Project No.6, Revenue Bonds | | |
Series B | | |
4.00%, due 10/1/52 (a) | 5,575,000 | 5,570,449 |
Black Belt Energy Gas District, Gas Project, Revenue Bonds | | |
Series B-1 | | |
4.00%, due 4/1/53 (a) | 640,000 | 639,124 |
Series B | | |
4.42%, due 4/1/53 | 700,000 | 684,259 |
Series C-1 | | |
5.25%, due 12/1/26 | 1,850,000 | 1,896,760 |
Series B-2 | | |
5.25%, due 12/1/53 (a) | 3,800,000 | 4,060,428 |
Series A | | |
5.25%, due 5/1/55 (a) | 2,270,000 | 2,431,693 |
Series F | | |
5.50%, due 11/1/53 (a) | 1,600,000 | 1,685,749 |
Energy Southeast A Cooperative District, Revenue Bonds | | |
Series B | | |
5.00%, due 6/1/27 | 200,000 | 203,567 |
Series B | | |
5.00%, due 6/1/28 | 685,000 | 700,876 |
Series B | | |
5.00%, due 12/1/30 | 630,000 | 652,593 |
Series B | | |
5.25%, due 7/1/54 (a) | 4,685,000 | 4,957,972 |
Prichard Water Works & Sewer Board, Revenue Bonds | | |
2.375%, due 11/1/28 | 205,000 | 157,194 |
Southeast Alabama Gas Supply District (The), Revenue Bonds | | |
Series A | | |
5.00%, due 8/1/54 (a) | 1,000,000 | 1,056,636 |
| Principal Amount | Value |
|
Alabama (continued) |
Southeast Energy Authority, A Cooperative District, Project No. 4, Revenue Bonds | | |
Series B-1 | | |
5.00%, due 5/1/53 (a) | $ 760,000 | $ 784,499 |
Southeast Energy Authority, A Cooperative District, Project No. 3, Revenue Bonds | | |
Series A-1 | | |
5.50%, due 1/1/53 (a) | 1,600,000 | 1,694,720 |
State of Alabama, Unlimited General Obligation | | |
Series A | | |
3.00%, due 8/1/26 | 1,000,000 | 978,166 |
Town of Pike Road, Limited General Obligation | | |
5.00%, due 3/1/40 | 845,000 | 922,460 |
Tuscaloosa County Industrial Development Authority, Hunt Refining Project, Revenue Bonds | | |
Series A | | |
5.25%, due 5/1/44 (b) | 1,500,000 | 1,503,261 |
| | 32,564,173 |
Alaska 0.5% |
Alaska Industrial Development & Export Authority, Interior Gas Utility Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/28 | 250,000 | 250,057 |
Alaska Municipal Bond Bank Authority, Unlimited General Obligation (c) | | |
Series 3 | | |
5.25%, due 12/1/39 | 1,085,000 | 1,173,920 |
Series 3 | | |
5.25%, due 12/1/41 | 1,205,000 | 1,289,212 |
Series 3 | | |
5.25%, due 12/1/42 | 1,270,000 | 1,353,893 |
Series 3 | | |
5.25%, due 12/1/43 | 1,340,000 | 1,420,509 |
| | 5,487,591 |
Arizona 1.4% |
Arizona Industrial Development Authority, Ball Charter Schools Project, Revenue Bonds | | |
2.65%, due 7/1/26 | 65,000 | 62,189 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Arizona (continued) |
Arizona Industrial Development Authority, Equitable School Revolving Fund LLC Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 11/1/41 | $ 1,700,000 | $ 1,805,294 |
Series A | | |
5.00%, due 11/1/43 | 1,800,000 | 1,896,486 |
Arizona Industrial Development Authority, Cottonwood Ranch Apartments LP, Revenue Bonds | | |
5.00%, due 1/1/42 (a) | 3,000,000 | 3,061,289 |
Arizona Industrial Development Authority, Glendale Senior Project, Revenue Bonds | | |
Series A, Insured: HUD Sector 8 | | |
5.00%, due 10/1/44 (a) | 2,000,000 | 2,035,310 |
City of Lake Havasu City, Wastewater System, Revenue Bonds | | |
Series B, Insured: AGM | | |
5.00%, due 7/1/40 | 1,250,000 | 1,254,728 |
City of Mesa, Utility System, Revenue Bonds, Junior Lien | | |
Series A, Insured: BAM | | |
5.00%, due 7/1/30 | 1,050,000 | 1,159,364 |
City of Phoenix Civic Improvement Corp., Water System, Revenue Bonds, Junior Lien | | |
5.00%, due 7/1/39 | 1,000,000 | 1,024,502 |
Glendale Industrial Development Authority, Royal Oaks Life Care Community, Revenue Bonds | | |
4.00%, due 5/15/28 | 620,000 | 596,267 |
Industrial Development Authority of the County of Yavapai (The), Arizona Agribusiness and Equine Center, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 9/1/34 (b) | 750,000 | 738,074 |
University of Arizona (The), Revenue Bonds | | |
Series B | | |
5.00%, due 6/1/46 | 1,000,000 | 1,015,900 |
| | 14,649,403 |
| Principal Amount | Value |
|
Arkansas 0.4% |
Arkansas Development Finance Authority, Big River Steel Project, Revenue Bonds | | |
4.50%, due 9/1/49 (b)(c) | $ 1,135,000 | $ 1,111,404 |
Bentonville School District No. 6, Unlimited General Obligation | | |
Series D, Insured: State Aid Withholding | | |
2.00%, due 6/1/35 | 1,340,000 | 1,069,285 |
City of Batesville, Sales & Use Tax, Revenue Bonds | | |
Series B, Insured: BAM | | |
5.00%, due 2/1/39 | 500,000 | 526,515 |
Little Rock School District, Limited General Obligation | | |
Series A, Insured: AGM State Aid Withholding | | |
2.00%, due 2/1/36 | 2,000,000 | 1,538,650 |
| | 4,245,854 |
California 7.2% |
California Community Choice Financing Authority, Clean Energy Project, Revenue Bonds (a) | | |
Series C | | |
5.25%, due 1/1/54 | 8,555,000 | 8,929,622 |
Series G-1 | | |
5.25%, due 11/1/54 | 2,000,000 | 2,129,234 |
California Infrastructure & Economic Development Bank, J Paul Getty Trust (The), Revenue Bonds | | |
Series B-2 | | |
3.00%, due 10/1/47 (a) | 1,035,000 | 1,017,380 |
California Infrastructure & Economic Development Bank, California Academy of Sciences, Revenue Bonds | | |
Series A | | |
3.25%, due 8/1/29 | 750,000 | 744,666 |
California Infrastructure & Economic Development Bank, DesertXpress Enterprises LLC, Revenue Bonds | | |
Series A | | |
3.95%, due 1/1/50 (a)(b)(c) | 5,365,000 | 5,364,814 |
California Municipal Finance Authority, United Airlines, Inc. Project, Revenue Bonds | | |
4.00%, due 7/15/29 (c) | 2,500,000 | 2,485,956 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
California (continued) |
California Municipal Finance Authority, Waste Management, Inc., Revenue Bonds | | |
Series A | | |
4.125%, due 10/1/41 (a)(c) | $ 1,500,000 | $ 1,501,030 |
California Municipal Finance Authority, LINXS APM Project, Revenue Bonds, Senior Lien | | |
Series A | | |
5.00%, due 12/31/31 (c) | 1,240,000 | 1,233,021 |
California Municipal Finance Authority, Westside Neighborhood School, Revenue Bonds | | |
5.00%, due 6/15/34 (b)(d) | 500,000 | 514,693 |
California Municipal Finance Authority, Palomar Health Obligated Group, Certificate of Participation | | |
Series A, Insured: AGM | | |
5.25%, due 11/1/36 | 1,300,000 | 1,457,168 |
California Municipal Finance Authority, Aldersly Project, Revenue Bonds | | |
Series C, Insured: California Mortgage Insurance | | |
5.50%, due 11/15/27 | 500,000 | 486,206 |
California School Finance Authority, Classical Academies Oceanside Project, Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/27 (b) | 910,000 | 894,830 |
California School Finance Authority, Sonoma County Junior College District Project, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/41 (b) | 240,000 | 214,815 |
California School Finance Authority, Classical Academies Project, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/32 (b) | 2,155,000 | 2,196,581 |
California State Public Works Board, Various Capital Projects, Revenue Bonds | | |
Series D | | |
5.00%, due 11/1/25 | 2,575,000 | 2,638,135 |
| Principal Amount | Value |
|
California (continued) |
California State Public Works Board, State of California Department of General Services, Revenue Bonds | | |
Series A | | |
5.00%, due 4/1/42 | $ 1,610,000 | $ 1,779,242 |
California Statewide Communities Development Authority, Community Infrastructure Program, Special Assessment | | |
Series A | | |
4.00%, due 9/2/26 | 260,000 | 257,499 |
Series D | | |
4.75%, due 9/2/33 | 250,000 | 250,967 |
California Statewide Financing Authority, TSR Multi-County Special Purpose Trust, Revenue Bonds | | |
Series A | | |
6.00%, due 5/1/43 | 1,000,000 | 1,022,107 |
City of Beaumont, Community Facilities District No. 2021-1, Special Tax | | |
Series 1 | | |
5.00%, due 9/1/39 | 400,000 | 414,204 |
City of San Jose, Unlimited General Obligation | | |
Series A-1 | | |
5.00%, due 9/1/41 | 1,500,000 | 1,611,803 |
City of San Mateo, Community Facilities District No. 2008-1, Special Tax | | |
Series 1, Insured: BAM | | |
5.25%, due 9/1/35 | 1,000,000 | 1,126,733 |
Clovis Unified School District, Unlimited General Obligation | | |
Series B, Insured: NATL-RE | | |
(zero coupon), due 8/1/30 | 1,500,000 | 1,221,581 |
Corona Community Facilities District, Community Facilities District No. 2018-2, Special Tax | | |
Series A | | |
5.00%, due 9/1/29 | 100,000 | 105,899 |
County of Los Angeles Community Facilities District No. 2021-01, Improvement Area No. 1, Special Tax | | |
5.00%, due 9/1/27 | 100,000 | 103,361 |
5.00%, due 9/1/30 | 175,000 | 185,521 |
5.00%, due 9/1/32 | 175,000 | 187,755 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
California (continued) |
County of Sacramento, Airport System, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/41 | $ 1,000,000 | $ 1,018,850 |
East Bay Municipal Utility District Water System, Revenue Bonds | | |
Series A | | |
5.00%, due 6/1/44 | 1,000,000 | 1,112,304 |
Foothill-De Anza Community College District, Unlimited General Obligation | | |
Series B, Insured: NATL-RE FGIC | | |
(zero coupon), due 8/1/29 | 1,045,000 | 891,428 |
Hercules Redevelopment Agency Successor Agency, Tax Allocation | | |
Series A, Insured: AGM | | |
5.00%, due 8/1/37 | 500,000 | 550,729 |
Kern Community College District, Election of 2016, Unlimited General Obligation | | |
Series D | | |
5.25%, due 8/1/37 | 1,500,000 | 1,746,292 |
Los Angeles Unified School District, Unlimited General Obligation | | |
Series A | | |
5.00%, due 7/1/25 | 1,000,000 | 1,018,512 |
Series A | | |
5.00%, due 7/1/34 | 1,000,000 | 1,180,870 |
Madera Unified School District, Unlimited General Obligation | | |
4.00%, due 8/1/44 | 100,000 | 99,257 |
Metropolitan Water District of Southern California, Waterworks, Revenue Bonds | | |
Series E | | |
3.91%, due 7/1/37 | 500,000 | 499,920 |
Northern California Energy Authority, Revenue Bonds | | |
5.00%, due 8/1/28 | 1,250,000 | 1,299,716 |
5.00%, due 12/1/54 (a) | 1,305,000 | 1,382,168 |
Oakland Unified School District, Election of 2020, Unlimited General Obligation | | |
Series A, Insured: BAM | | |
4.00%, due 8/1/46 | 500,000 | 496,362 |
| Principal Amount | Value |
|
California (continued) |
San Diego County Regional Airport Authority, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/33 (c) | $ 4,500,000 | $ 4,906,341 |
San Diego County Regional Airport Authority, Revenue Bonds, Senior Lien | | |
Series B | | |
5.25%, due 7/1/38 (c) | 1,000,000 | 1,101,217 |
San Francisco City & County Airport Commission, San Francisco International Airport, Revenue Bonds, Second Series | | |
Series C | | |
5.00%, due 5/1/33 (c) | 6,000,000 | 6,670,328 |
San Joaquin Hills Transportation Corridor Agency, Revenue Bonds, Junior Lien | | |
Series B | | |
5.25%, due 1/15/44 | 5,000,000 | 5,033,153 |
Series B | | |
5.25%, due 1/15/49 | 2,000,000 | 2,012,025 |
Saratoga Union School District, Unlimited General Obligation | | |
Insured: NATL-RE | | |
(zero coupon), due 9/1/26 | 1,925,000 | 1,777,876 |
State of California, Various Purpose, Unlimited General Obligation | | |
5.00%, due 4/1/38 | 2,455,000 | 2,459,602 |
University of California, Revenue Bonds | | |
Series BN | | |
5.50%, due 5/15/40 | 1,400,000 | 1,627,155 |
| | 76,958,928 |
Colorado 3.1% |
Arapahoe County School District No. 5, Cherry Creek, Unlimited General Obligation | | |
Series B, Insured: State Aid Withholding | | |
2.00%, due 12/15/26 | 500,000 | 471,298 |
Arapahoe County School District No. 6 Littleton, Unlimited General Obligation | | |
Series A, Insured: State Aid Withholding | | |
5.50%, due 12/1/43 | 750,000 | 804,231 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Colorado (continued) |
Arista Metropolitan District, Limited General Obligation | | |
Series A, Insured: BAM | | |
5.00%, due 12/1/38 | $ 1,500,000 | $ 1,604,052 |
Arkansas River Power Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/38 | 2,000,000 | 2,039,304 |
City & County of Denver, Airport System, Revenue Bonds (c) | | |
Series A | | |
5.00%, due 12/1/31 | 7,000,000 | 7,365,508 |
Series A | | |
5.00%, due 12/1/43 | 1,000,000 | 1,021,197 |
Series A | | |
5.50%, due 11/15/35 | 1,000,000 | 1,144,644 |
Series D | | |
5.75%, due 11/15/41 | 1,715,000 | 1,937,037 |
City & County of Denver, Pledged Excise Tax, Revenue Bonds | | |
Series A | | |
5.00%, due 8/1/44 | 1,000,000 | 1,013,516 |
Colorado Bridge & Tunnel Enterprise, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 12/1/41 | 1,135,000 | 1,242,527 |
Series A, Insured: AGM | | |
5.25%, due 12/1/49 | 1,000,000 | 1,092,317 |
Colorado Health Facilities Authority, Aberdeen Ridge, Inc. Obligated Group, Revenue Bonds | | |
Series B-3 | | |
2.125%, due 5/15/28 | 250,000 | 236,983 |
Colorado Health Facilities Authority, CommonSpirit Health, Revenue Bonds | | |
Series A-1 | | |
4.00%, due 8/1/44 | 250,000 | 234,954 |
Series A-1, Insured: BAM | | |
5.00%, due 8/1/35 | 180,000 | 193,741 |
Series A | | |
5.25%, due 11/1/37 | 1,450,000 | 1,595,478 |
Fiddlers Business Improvement District, Unlimited General Obligation | | |
5.00%, due 12/1/32 (b) | 200,000 | 204,975 |
| Principal Amount | Value |
|
Colorado (continued) |
Ground Water Management Subdistrict of Central Colorado, Water Conservancy District, Limited General Obligation | | |
Insured: BAM | | |
4.00%, due 12/1/40 | $ 250,000 | $ 242,039 |
Jefferson Center Metropolitan District No. 1, Revenue Bonds | | |
Series A-2 | | |
4.125%, due 12/1/40 | 575,000 | 492,518 |
Midtown Clear Creek Metropolitan District, Limited General Obligation | | |
Series A, Insured: BAM | | |
5.50%, due 12/1/43 | 1,200,000 | 1,330,749 |
Park Creek Metropolitan District, Revenue Bonds, Senior Lien | | |
Series A, Insured: NATL-RE | | |
5.00%, due 12/1/26 | 1,300,000 | 1,340,071 |
Ravenna Metropolitan District, Limited General Obligation | | |
Insured: AGM | | |
5.00%, due 12/1/38 | 1,400,000 | 1,491,406 |
Insured: AGM | | |
5.00%, due 12/1/43 | 1,750,000 | 1,815,765 |
Reata South Metropolitan District, Limited General Obligation | | |
5.375%, due 12/1/37 | 1,000,000 | 1,010,390 |
Sterling Ranch Community Authority Board, Colorado Limited Tax Supported and Special Revenue Senior Bonds, Revenue Bonds | | |
Series A | | |
3.375%, due 12/1/30 | 999,000 | 930,263 |
Series A | | |
3.75%, due 12/1/40 | 500,000 | 421,580 |
VDW Metropolitan District No. 2, Limited General Obligation | | |
Series A-2, Insured: BAM | | |
4.00%, due 12/1/45 | 580,000 | 531,374 |
Weld County School District No. RE-2, Unlimited General Obligation | | |
Insured: State Aid Withholding | | |
5.00%, due 12/1/36 | 1,425,000 | 1,545,668 |
| | 33,353,585 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Connecticut 0.9% |
City of Danbury, Unlimited General Obligation | | |
5.00%, due 9/24/24 (b) | $ 1,740,000 | $ 1,746,075 |
City of New Haven, Unlimited General Obligation | | |
Series A, Insured: BAM | | |
5.00%, due 8/1/31 | 1,200,000 | 1,303,580 |
Hartford Stadium Authority, Stadium Authority Lease, Revenue Bonds | | |
Series A | | |
5.00%, due 2/1/36 | 230,000 | 230,350 |
State of Connecticut, Transportation Infrastructure, Special Tax, Revenue Bonds | | |
Series A | | |
4.00%, due 5/1/36 | 1,040,000 | 1,073,824 |
Series A | | |
5.25%, due 7/1/40 | 1,500,000 | 1,689,967 |
Series A | | |
5.25%, due 7/1/40 | 2,500,000 | 2,847,352 |
State of Connecticut, Unlimited General Obligation | | |
Series A | | |
5.77%, due 3/15/25 | 500,000 | 501,194 |
| | 9,392,342 |
Delaware 0.5% |
Delaware State Economic Development Authority, ACTS Retirement-Life Communities, Inc. Obligated Group, Revenue Bonds | | |
Series B | | |
5.00%, due 11/15/38 | 770,000 | 805,326 |
Series B | | |
5.00%, due 11/15/43 | 3,010,000 | 3,089,209 |
Delaware State Housing Authority, Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
5.75%, due 1/1/55 | 1,645,000 | 1,760,208 |
| | 5,654,743 |
District of Columbia 0.6% |
District of Columbia, Unlimited General Obligation | | |
Series D | | |
5.00%, due 6/1/41 | 3,250,000 | 3,324,783 |
| Principal Amount | Value |
|
District of Columbia (continued) |
District of Columbia Housing Finance Agency, Lisner Senior Independent Owner LP, Revenue Bonds | | |
5.00%, due 10/1/41 (a) | $ 3,000,000 | $ 3,050,923 |
| | 6,375,706 |
Florida 4.7% |
Ave Maria Stewardship Community District, Phase 4 Master Improvement Project Area, Special Assessment | | |
Series A | | |
4.00%, due 5/1/42 | 1,500,000 | 1,294,420 |
4.50%, due 5/1/33 (b) | 250,000 | 250,168 |
Capital Trust Agency, Inc., Advantage Academy of Hillsborough, Inc., Revenue Bonds | | |
Series A | | |
5.00%, due 12/15/39 | 500,000 | 487,367 |
CFM Community Development District, Capital Improvement, Special Assessment | | |
2.875%, due 5/1/31 | 100,000 | 89,429 |
City of Gainesville, Utilities System, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/44 | 635,000 | 663,870 |
City of Hallandale Beach, Unlimited General Obligation | | |
3.00%, due 7/1/35 | 2,150,000 | 1,964,099 |
City of Palmetto, Renaissance Arts and Education, Inc., Revenue Bonds | | |
Series A | | |
4.25%, due 6/1/27 | 130,000 | 129,649 |
Series A | | |
5.00%, due 6/1/32 | 100,000 | 104,408 |
City of Tampa, Centre & Lower Basis Storm Water, Special Assessment | | |
5.25%, due 5/1/46 | 2,730,000 | 2,848,949 |
City of West Palm Beach, Utility System, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/42 | 2,500,000 | 2,590,151 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Florida (continued) |
Cobblestone Community Development District, Assessment Area Two, Special Assessment | | |
Series 2 | | |
3.40%, due 5/1/27 (b) | $ 160,000 | $ 155,069 |
Collier County Educational Facilities Authority, Ave Maria University, Inc., Revenue Bonds | | |
5.00%, due 6/1/29 | 1,065,000 | 1,080,316 |
County of Miami-Dade, Seaport Department, Revenue Bonds | | |
Series A-1, Insured: AGM | | |
4.00%, due 10/1/39 (c) | 2,000,000 | 1,944,962 |
County of Miami-Dade, Aviation, Revenue Bonds (c) | | |
Series A | | |
5.00%, due 10/1/33 | 6,750,000 | 6,763,420 |
Series B | | |
5.00%, due 10/1/40 | 3,825,000 | 3,896,963 |
County of Miami-Dade, Transit System, Revenue Bonds | | |
5.00%, due 7/1/43 | 2,300,000 | 2,456,979 |
County of Pasco, State of Florida Cigarette Tax Revenue, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.50%, due 9/1/37 | 2,040,000 | 2,316,243 |
Florida Development Finance Corp., Mater Academy Project, Revenue Bonds | | |
Series A | | |
5.00%, due 6/15/31 | 515,000 | 527,579 |
Florida Development Finance Corp., UF Health Jacksonville Project, Revenue Bonds | | |
Series A | | |
5.00%, due 2/1/33 | 1,300,000 | 1,308,448 |
Fort Pierce Utilities Authority, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 10/1/34 | 325,000 | 365,035 |
Harbor Bay Community Development District, Special Assessment | | |
Series A-1 | | |
3.10%, due 5/1/24 | 100,000 | 100,000 |
Series A-2 | | |
3.10%, due 5/1/24 | 100,000 | 100,000 |
| Principal Amount | Value |
|
Florida (continued) |
Hilltop Point Community Development District, Assessment Area One, Special Assessment | | |
Series 1 | | |
4.60%, due 5/1/27 | $ 100,000 | $ 99,779 |
Hilltop Point Community Development District, Assessment Area Two, Special Assessment | | |
Series 2 | | |
4.75%, due 5/1/27 | 200,000 | 200,053 |
JEA Water & Sewer System, Revenue Bonds | | |
Series A | | |
5.25%, due 10/1/49 | 2,735,000 | 3,009,466 |
Laurel Road Community Development District, Special Assessment | | |
Series A-2 | | |
3.125%, due 5/1/31 | 235,000 | 208,739 |
Lee Memorial Health System, Obligated Group, Revenue Bonds | | |
Series A-2 | | |
5.00%, due 4/1/33 (a) | 1,000,000 | 1,012,567 |
Miami Health Facilities Authority, Miami Jewish Health Systems Obligated Group, Revenue Bonds | | |
5.00%, due 7/1/31 | 1,605,000 | 1,493,047 |
Mid-Bay Bridge Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/40 | 500,000 | 501,674 |
Palm Beach County Housing Finance Authority, Everglades Townhomes LP, Revenue Bonds | | |
5.00%, due 2/1/27 (a) | 994,000 | 1,007,351 |
Palm Coast Park Community Development District, Spring Lake Tracts 2 and 3, Special Assessment | | |
2.40%, due 5/1/26 | 100,000 | 96,115 |
Palm Coast Park Community Development District, Sawmill Branch Phase 2, Special Assessment | | |
4.15%, due 5/1/27 | 300,000 | 298,621 |
Preston Cove Community Development District, Special Assessment | | |
3.25%, due 5/1/27 | 100,000 | 96,831 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Florida (continued) |
Reunion East Community Development District, Series 2021 Project, Special Assessment | | |
2.85%, due 5/1/31 | $ 100,000 | $ 89,187 |
Reunion West Community Development District, Special Assessment | | |
3.00%, due 5/1/36 | 100,000 | 86,042 |
Rolling Hills Community Development District, Special Assessment | | |
Series A-2 | | |
3.65%, due 5/1/32 | 200,000 | 185,755 |
Seminole Improvement District, Revenue Bonds | | |
5.00%, due 10/1/32 | 250,000 | 252,766 |
Southern Groves Community Development District No. 5, 2021 Assessment Area, Special Assessment | | |
2.80%, due 5/1/31 | 425,000 | 394,453 |
Sunbridge Stewardship District, Weslyn Park Project Assessment, Special Assessment | | |
4.60%, due 5/1/32 | 460,000 | 457,265 |
Tampa Bay Water, Revenue Bonds | | |
5.00%, due 10/1/40 | 1,580,000 | 1,732,300 |
Two Lakes Community Development District, Expansion Area Project, Special Assessment | | |
3.375%, due 12/15/30 | 1,510,000 | 1,406,225 |
3.75%, due 12/15/39 | 2,990,000 | 2,574,128 |
4.00%, due 12/15/49 | 2,200,000 | 1,754,455 |
Verano No. 3 Community Development District, Special Assessment | | |
2.375%, due 5/1/26 | 30,000 | 28,881 |
Village Community Development District No. 13, Phase III, Special Assessment | | |
2.85%, due 5/1/36 | 1,495,000 | 1,301,667 |
Village Community Development District No. 15, Special Assessment | | |
4.375%, due 5/1/33 (b) | 100,000 | 101,663 |
| Principal Amount | Value |
|
Florida (continued) |
Watergrass Community Development District II, Phase 2, Special Assessment | | |
2.50%, due 5/1/31 | $ 100,000 | $ 87,212 |
Windward at Lakewood Ranch Community Development District, Phase 2 Project, Special Assessment | | |
3.625%, due 5/1/32 | 210,000 | 190,380 |
Wiregrass II Community Development District, Assessment Area Two, Special Assessment | | |
4.80%, due 5/1/32 | 100,000 | 100,237 |
| | 50,204,383 |
Georgia 2.3% |
Atlanta Urban Redevelopment Agency, Atlanta BeltLine Special Service District, Revenue Bonds | | |
Insured: BAM | | |
2.875%, due 7/1/31 (b) | 665,000 | 611,507 |
Atlanta Urban Residential Finance Authority, TBG Englewood Senior LP, Revenue Bonds | | |
Insured: HUD Sector 8 FHA 221(D4) | | |
5.00%, due 5/1/28 (a) | 1,440,000 | 1,484,469 |
City of Atlanta, Department of Aviation, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/34 (c) | 450,000 | 497,247 |
DeKalb Private Hospital Authority, Children's Healthcare of Atlanta, Revenue Bonds | | |
Series B | | |
4.00%, due 7/1/38 | 820,000 | 826,685 |
Development Authority of Burke County (The), Georgia Power Co., Revenue Bonds, First Series | | |
Series 1 | | |
3.375%, due 11/1/53 (a) | 1,000,000 | 987,036 |
Main Street Natural Gas, Inc., Revenue Bonds | | |
Series B | | |
4.00%, due 8/1/49 (a) | 2,000,000 | 2,000,379 |
Series A | | |
4.00%, due 7/1/52 (a) | 5,000,000 | 4,993,214 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Georgia (continued) |
Main Street Natural Gas, Inc., Revenue Bonds (continued) | | |
Series B | | |
5.00%, due 12/1/54 (a) | $ 3,500,000 | $ 3,693,987 |
Series E-2 | | |
5.264%, due 12/1/53 | 5,000,000 | 5,077,663 |
Municipal Electric Authority of Georgia, Plant Vogtle Units 3&4 Project, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/39 | 2,000,000 | 2,052,870 |
Walton County Water & Sewer Authority, Walton-Hard Labor Creek Reservoir Water Treatment Facility Project, Revenue Bonds | | |
5.25%, due 2/1/47 | 1,700,000 | 1,863,708 |
| | 24,088,765 |
Guam 0.8% |
Guam Department of Education, John F. Kennedy High School Refunding & Energy Efficiency Project, Certificate of Participation | | |
Series A | | |
4.25%, due 2/1/30 | 1,500,000 | 1,454,543 |
Guam Government Waterworks Authority, Water and Wastewater System, Revenue Bonds | | |
5.25%, due 7/1/24 | 590,000 | 590,655 |
Guam Power Authority, Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/34 | 500,000 | 534,081 |
Territory of Guam, Business Privilege Tax, Revenue Bonds | | |
Series F | | |
4.00%, due 1/1/36 | 400,000 | 393,219 |
Series D | | |
5.00%, due 11/15/27 | 365,000 | 369,913 |
Territory of Guam, Revenue Bonds | | |
Series F | | |
4.00%, due 1/1/42 | 2,335,000 | 2,147,593 |
Territory of Guam, Section 30, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/32 | 1,000,000 | 1,020,429 |
| Principal Amount | Value |
|
Guam (continued) |
Territory of Guam, Section 30, Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 12/1/34 | $ 1,750,000 | $ 1,782,101 |
| | 8,292,534 |
Hawaii 0.3% |
Kauai County Community Facilities District, Kukui'ula Development Project, Special Tax | | |
4.00%, due 5/15/26 | 80,000 | 79,182 |
State of Hawaii, Airports System, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/45 (c) | 2,905,000 | 2,912,703 |
| | 2,991,885 |
Idaho 0.3% |
Idaho Health Facilities Authority, Madison Memorial Hospital, Revenue Bonds | | |
5.00%, due 9/1/37 | 370,000 | 366,597 |
Idaho Housing & Finance Association, Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
3.15%, due 1/1/26 | 850,000 | 829,158 |
Series A, Insured: GNMA / FNMA / FHLMC | | |
6.00%, due 7/1/54 | 1,500,000 | 1,640,580 |
| | 2,836,335 |
Illinois 10.7% |
Chicago Board of Education, Unlimited General Obligation | | |
Series B | | |
4.00%, due 12/1/41 | 5,750,000 | 5,266,117 |
Series B | | |
5.00%, due 12/1/31 | 1,000,000 | 1,048,181 |
Series A | | |
5.00%, due 12/1/33 | 500,000 | 523,677 |
Series B | | |
5.00%, due 12/1/33 | 1,500,000 | 1,496,549 |
Series A, Insured: AGM | | |
5.00%, due 12/1/35 | 500,000 | 519,727 |
Series A | | |
5.00%, due 12/1/37 | 1,085,000 | 1,115,362 |
Series D | | |
5.00%, due 12/1/46 | 1,000,000 | 982,690 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Illinois (continued) |
Chicago Board of Education, Unlimited General Obligation (continued) | | |
Series C | | |
5.25%, due 12/1/35 | $ 450,000 | $ 449,979 |
Series C | | |
5.25%, due 12/1/39 | 1,000,000 | 997,846 |
Chicago Board of Education, Dedicated Capital Improvement, Unlimited General Obligation | | |
Series H | | |
5.00%, due 12/1/36 | 500,000 | 505,876 |
Chicago Board of Education, Dedicated Capital Improvement, Revenue Bonds | | |
6.00%, due 4/1/46 | 1,000,000 | 1,040,488 |
Chicago O'Hare International Airport, General, Revenue Bonds, Senior Lien | | |
Series C | | |
5.00%, due 1/1/36 | 4,340,000 | 4,426,874 |
Series D | | |
5.00%, due 1/1/36 | 1,000,000 | 1,121,099 |
Series D | | |
5.00%, due 1/1/37 | 1,000,000 | 1,112,074 |
Series A | | |
5.00%, due 1/1/39 (c) | 1,640,000 | 1,697,885 |
Series B | | |
5.00%, due 1/1/39 | 1,350,000 | 1,423,989 |
Chicago O'Hare International Airport, TRIPS Obligated Group, Revenue Bonds | | |
5.00%, due 7/1/48 (c) | 3,000,000 | 2,958,195 |
Chicago O'Hare International Airport, Passenger Facility Charge, Revenue Bonds, Senior Lien | | |
Insured: BAM | | |
5.25%, due 1/1/39 | 1,195,000 | 1,297,175 |
Chicago Transit Authority Sales Tax Receipts Fund, Revenue Bonds | | |
Insured: AGM | | |
5.00%, due 12/1/44 | 10,000,000 | 10,024,050 |
5.25%, due 12/1/49 | 1,000,000 | 1,002,566 |
City of Chicago, Unlimited General Obligation | | |
Series A | | |
4.00%, due 1/1/32 | 1,000,000 | 1,014,435 |
| Principal Amount | Value |
|
Illinois (continued) |
City of Chicago, Unlimited General Obligation (continued) | | |
Series A | | |
5.00%, due 1/1/32 | $ 1,500,000 | $ 1,615,278 |
Series A | | |
5.00%, due 1/1/44 | 2,000,000 | 2,039,456 |
Series A | | |
6.00%, due 1/1/38 | 2,500,000 | 2,605,085 |
City of Chicago, Grace Manor LP, Revenue Bonds | | |
Insured: HUD Sector 8 FHA 221(D4) | | |
5.00%, due 11/1/26 (a) | 5,000,000 | 5,048,927 |
City of Chicago, Wastewater Transmission Project, Revenue Bonds, Second Lien | | |
5.00%, due 1/1/44 | 3,000,000 | 3,006,157 |
Series A, Insured: AGM | | |
5.25%, due 1/1/42 | 450,000 | 465,042 |
City of Chicago Heights, Olympic Village LLC, Revenue Bonds | | |
Insured: HUD Sector 8 FHA 223(F) GNMA | | |
2.875%, due 8/1/27 (a) | 1,000,000 | 980,802 |
City of Joliet, Rock Run Crossing Project, Unlimited General Obligation | | |
Insured: BAM | | |
5.50%, due 12/15/42 | 2,000,000 | 2,202,123 |
City of Joliet, Unlimited General Obligation | | |
Insured: BAM | | |
5.50%, due 12/15/44 | 1,000,000 | 1,096,421 |
County of Cook, Sales Tax, Revenue Bonds | | |
Series A | | |
5.25%, due 11/15/45 | 1,500,000 | 1,615,385 |
Fox Lake Public Library District, Unlimited General Obligation | | |
Insured: BAM | | |
3.00%, due 2/1/28 | 1,175,000 | 1,118,663 |
Illinois Finance Authority, Washington and Jane Smith Home (The), Revenue Bonds | | |
4.00%, due 10/15/24 | 215,000 | 212,906 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Illinois (continued) |
Illinois Finance Authority, Acero Charter Schools, Inc., Revenue Bonds | | |
4.00%, due 10/1/33 (b) | $ 250,000 | $ 234,804 |
Illinois Finance Authority, University of Chicago (The), Revenue Bonds | | |
Series A | | |
4.00%, due 10/1/38 | 2,500,000 | 2,371,814 |
Illinois Finance Authority, Carle Foundation, Revenue Bonds | | |
Series A | | |
5.00%, due 8/15/34 | 250,000 | 277,220 |
Illinois Finance Authority, Silver Cross Hospital Obligated Group, Revenue Bonds | | |
Series C | | |
5.00%, due 8/15/44 | 3,400,000 | 3,416,746 |
Illinois Housing Development Authority, Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
4.375%, due 10/1/41 | 755,000 | 742,918 |
Illinois Housing Development Authority, Island Terrace 4% Preservation Associates LP, Revenue Bonds | | |
5.00%, due 2/1/27 (a) | 6,000,000 | 6,060,425 |
Illinois Housing Development Authority, Lakeview Landing LP, Revenue Bonds | | |
Series A, Insured: HUD Sector 8 | | |
5.00%, due 11/1/27 (a) | 1,310,000 | 1,340,250 |
Illinois Municipal Electric Agency, Revenue Bonds | | |
Series A | | |
4.00%, due 2/1/34 | 1,500,000 | 1,483,730 |
Series A | | |
5.00%, due 2/1/32 | 4,830,000 | 4,880,891 |
Illinois Sports Facilities Authority (The), Revenue Bonds | | |
5.00%, due 6/15/30 | 1,000,000 | 1,052,407 |
Illinois State Toll Highway Authority, Revenue Bonds | | |
Series C | | |
5.00%, due 1/1/38 | 2,395,000 | 2,412,763 |
Series C | | |
5.00%, due 1/1/39 | 1,825,000 | 1,837,267 |
| Principal Amount | Value |
|
Illinois (continued) |
Illinois State Toll Highway Authority, Revenue Bonds (continued) | | |
Series A | | |
5.00%, due 1/1/40 | $ 1,000,000 | $ 1,010,914 |
Series B | | |
5.00%, due 1/1/40 | 1,000,000 | 1,017,893 |
Illinois State Toll Highway Authority, Revenue Bonds, Senior Lien | | |
Series A | | |
5.00%, due 1/1/39 | 1,500,000 | 1,684,382 |
Lake County Consolidated High School District No. 120 Mundelein, Limited General Obligation | | |
Series A | | |
5.50%, due 12/1/38 | 825,000 | 917,892 |
Madison County Community Unit School District No. 7, Unlimited General Obligation | | |
Series D, Insured: BAM | | |
5.00%, due 12/1/25 | 1,500,000 | 1,517,376 |
Metropolitan Pier & Exposition Authority, McCormick Place Expansion Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/15/28 | 2,000,000 | 2,087,482 |
Metropolitan Water Reclamation District of Greater Chicago, Green Bond, Unlimited General Obligation | | |
Series E | | |
5.00%, due 12/1/41 | 1,000,000 | 1,016,347 |
Sales Tax Securitization Corp., Revenue Bonds, Second Lien | | |
Series A, Insured: BAM | | |
5.00%, due 1/1/37 | 1,285,000 | 1,368,894 |
Sales Tax Securitization Corp., Revenue Bonds | | |
Series C | | |
5.50%, due 1/1/36 | 2,000,000 | 2,165,753 |
Sangamon & Morgan Counties Community Unit School District No. 16 New Berlin, Unlimited General Obligation | | |
Series A, Insured: AGM | | |
5.50%, due 12/1/36 | 350,000 | 391,829 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Illinois (continued) |
Southwestern Illinois Development Authority, Madison County Community Unit School District No. 7 Edwardsville, Revenue Bonds | | |
Series A, Insured: BAM | | |
5.50%, due 12/1/35 | $ 1,500,000 | $ 1,716,778 |
St. Clair County Community Unit School District No. 187, Unlimited General Obligation | | |
Series A, Insured: AGM | | |
5.00%, due 1/1/27 | 130,000 | 133,909 |
Series B, Insured: AGM | | |
5.00%, due 1/1/36 | 265,000 | 288,611 |
Series B, Insured: AGM | | |
5.00%, due 1/1/37 | 225,000 | 242,870 |
Series A, Insured: AGM | | |
5.00%, due 1/1/39 | 350,000 | 378,440 |
Series B, Insured: AGM | | |
5.00%, due 1/1/40 | 210,000 | 220,677 |
Series A, Insured: AGM | | |
5.00%, due 1/1/42 | 500,000 | 532,216 |
Series B, Insured: AGM | | |
5.00%, due 1/1/43 | 250,000 | 259,852 |
State of Illinois, Unlimited General Obligation | | |
Series D | | |
5.00%, due 11/1/28 | 1,000,000 | 1,043,970 |
5.00%, due 2/1/39 | 1,370,000 | 1,370,842 |
Insured: AGM-CR | | |
5.25%, due 2/1/34 | 1,975,000 | 1,976,787 |
5.50%, due 5/1/39 | 500,000 | 540,459 |
Village of Bradley, Unlimited General Obligation | | |
Insured: AGM | | |
5.00%, due 12/15/42 | 700,000 | 742,661 |
Insured: AGM | | |
5.00%, due 12/15/43 | 800,000 | 846,154 |
Will County School District No. 114, Manhattan, Unlimited General Obligation | | |
Insured: BAM | | |
5.25%, due 1/1/39 | 175,000 | 192,005 |
Insured: BAM | | |
5.50%, due 1/1/43 | 1,825,000 | 2,013,990 |
| | 113,821,297 |
| Principal Amount | Value |
|
Indiana 3.1% |
Avon Community School Building Corp., First Mortgage Bonds, Revenue Bonds | | |
Insured: State Intercept | | |
5.25%, due 7/15/37 | $ 1,000,000 | $ 1,136,548 |
Brownsburg 1999 School Building Corp., Revenue Bonds | | |
Insured: State Intercept | | |
5.50%, due 7/15/42 | 1,000,000 | 1,091,264 |
City of Bloomington, Waterworks, Revenue Bonds | | |
Insured: BAM | | |
5.00%, due 7/1/36 | 1,495,000 | 1,635,526 |
City of Lafayette, Local Income Tax, Revenue Bonds | | |
Insured: BAM State Intercept | | |
3.00%, due 12/31/33 | 1,195,000 | 1,061,066 |
City of Valparaiso, Pratt Paper LLC, Revenue Bonds | | |
4.50%, due 1/1/34 (b)(c)(d) | 1,350,000 | 1,366,124 |
Danville Community School Corp., Limited General Obligation | | |
Insured: State Intercept | | |
5.00%, due 7/15/24 | 2,350,000 | 2,350,913 |
Insured: State Intercept | | |
5.00%, due 1/15/25 | 1,455,000 | 1,459,780 |
Greater Clark Building Corp., Revenue Bonds | | |
Series B, Insured: State Intercept | | |
6.00%, due 7/15/38 | 1,000,000 | 1,196,340 |
Series B, Insured: State Intercept | | |
6.00%, due 7/15/40 | 1,300,000 | 1,529,199 |
Series B, Insured: State Intercept | | |
6.00%, due 1/15/43 | 1,170,000 | 1,360,145 |
Indiana Finance Authority, Indiana University Health, Revenue Bonds | | |
Series L | | |
0.70%, due 12/1/46 (a) | 655,000 | 610,888 |
Series A | | |
5.00%, due 12/1/40 | 1,500,000 | 1,511,803 |
Indiana Finance Authority, Indianapolis Power & Light Co. Project, Revenue Bonds (a) | | |
Series B | | |
0.95%, due 12/1/38 (c) | 4,525,000 | 4,177,906 |
Series A | | |
1.40%, due 8/1/29 | 250,000 | 210,153 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Indiana (continued) |
Indiana Finance Authority, Republic Services, Inc. Project, Revenue Bonds | | |
Series A | | |
4.20%, due 5/1/34 (a)(c) | $ 4,285,000 | $ 4,282,728 |
Indiana Housing & Community Development Authority, Revenue Bonds | | |
Insured: FHA 223(F) | | |
5.00%, due 10/1/26 (a) | 1,500,000 | 1,508,396 |
IPS Multi-School Building Corp., Indianapolis Board of School Commissioners, Revenue Bonds | | |
Insured: State Intercept | | |
5.25%, due 7/15/40 | 1,850,000 | 2,034,207 |
Southwest Dubois County School Corp., Limited General Obligation | | |
Insured: State Intercept | | |
5.00%, due 7/15/24 | 565,000 | 565,219 |
Tippecanoe County School Building Corp., Revenue Bonds | | |
Series B, Insured: State Intercept | | |
6.00%, due 1/15/43 | 500,000 | 582,100 |
Tri-Creek 2002 High School Building Corp., Revenue Bonds | | |
Insured: State Intercept | | |
5.50%, due 7/15/43 | 2,000,000 | 2,218,863 |
Warsaw Community Schools, Limited General Obligation | | |
Insured: State Intercept | | |
5.00%, due 7/15/24 | 1,000,000 | 1,000,491 |
| | 32,889,659 |
Iowa 1.0% |
City of Des Moines, Unlimited General Obligation | | |
Series D | | |
1.50%, due 6/1/34 | 1,200,000 | 886,431 |
Series D | | |
1.75%, due 6/1/38 | 540,000 | 362,557 |
Series F | | |
2.00%, due 6/1/35 | 2,375,000 | 1,850,764 |
Series F | | |
2.00%, due 6/1/36 | 2,415,000 | 1,821,999 |
| Principal Amount | Value |
|
Iowa (continued) |
County of Polk, Unlimited General Obligation | | |
Series A | | |
3.00%, due 6/1/32 | $ 2,000,000 | $ 1,846,485 |
Hampton-Dumont Community School District, Revenue Bonds | | |
Insured: AGM | | |
6.00%, due 6/1/29 | 930,000 | 1,020,136 |
Iowa City Community School District, Unlimited General Obligation | | |
2.50%, due 6/1/38 | 565,000 | 436,563 |
2.50%, due 6/1/39 | 1,035,000 | 776,057 |
Waukee Community School District, Unlimited General Obligation | | |
Series B | | |
2.00%, due 6/1/36 | 1,000,000 | 762,424 |
Series B | | |
2.125%, due 6/1/39 | 1,000,000 | 708,649 |
| | 10,472,065 |
Kentucky 1.7% |
City of Ashland, Ashland Hospital Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 2/1/40 | 500,000 | 501,979 |
City of Henderson, Pratt Paper LLC Project, Revenue Bonds | | |
Series B | | |
3.70%, due 1/1/32 (b)(c) | 350,000 | 338,619 |
Kentucky Bond Development Corp., Revenue Bonds | | |
Insured: BAM | | |
5.00%, due 9/1/38 | 1,000,000 | 1,064,514 |
Kentucky Economic Development Finance Authority, Next Generation Information Highway Project, Revenue Bonds, Senior Lien | | |
Series A | | |
5.00%, due 7/1/25 | 1,500,000 | 1,508,082 |
Series A | | |
5.00%, due 7/1/40 | 2,145,000 | 2,147,636 |
Series A | | |
5.00%, due 1/1/45 | 3,200,000 | 3,168,394 |
Kentucky Municipal Power Agency, Prairie State Project, Revenue Bonds | | |
Series A | | |
5.00%, due 9/1/35 | 1,545,000 | 1,610,376 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Kentucky (continued) |
Kentucky Public Energy Authority, Gas Supply, Revenue Bonds (a) | | |
Series C | | |
4.00%, due 2/1/50 | $ 2,600,000 | $ 2,593,481 |
Series A-1 | | |
5.25%, due 4/1/54 | 2,500,000 | 2,643,813 |
Kentucky State Property & Building Commission, Revenue Bonds | | |
Series A | | |
5.00%, due 11/1/26 | 2,485,000 | 2,577,078 |
| | 18,153,972 |
Louisiana 1.8% |
City of New Orleans, Unlimited General Obligation | | |
Series A, Insured: BAM | | |
5.00%, due 12/1/33 | 1,250,000 | 1,388,943 |
Greater New Orleans Expressway Commission, Revenue Bonds | | |
Insured: AGM | | |
5.00%, due 11/1/42 | 1,500,000 | 1,515,554 |
Jefferson Davis Parish Road Sales Tax District No. 1, Revenue Bonds | | |
Insured: AGM | | |
4.00%, due 2/1/26 | 915,000 | 919,086 |
Jefferson Parish Consolidated Sewerage District No. 1, Revenue Bonds | | |
Insured: BAM | | |
4.00%, due 2/1/42 | 260,000 | 252,617 |
Louisiana Housing Corp., Tivoli Place Project, Revenue Bonds | | |
Series A, Insured: HUD SECT 8 FHA 221(D4) | | |
5.00%, due 7/1/26 | 6,000,000 | 6,078,686 |
New Orleans Aviation Board, Louis Armstrong New Orleans International Airport, Revenue Bonds | | |
Series B | | |
5.00%, due 1/1/43 (c) | 2,000,000 | 2,020,115 |
State of Louisiana, Gasoline & Fuels Tax, Revenue Bonds, Second Lien | | |
Series C | | |
5.00%, due 5/1/40 | 6,250,000 | 6,472,856 |
| | 18,647,857 |
| Principal Amount | Value |
|
Maine 0.9% |
Maine Health & Higher Educational Facilities Authority, MaineHealth Obligated Group, Revenue Bonds | | |
Series B, Insured: AGM | | |
5.25%, due 7/1/41 | $ 5,155,000 | $ 5,621,303 |
Series B, Insured: AGM | | |
5.25%, due 7/1/43 | 2,275,000 | 2,463,911 |
Maine Health & Higher Educational Facilities Authority, Northern Light Health Obligated Group, Revenue Bonds | | |
Series C, Insured: AGM State Aid Withholding | | |
5.50%, due 7/1/38 | 1,000,000 | 1,112,971 |
Maine State Housing Authority, Revenue Bonds | | |
Series G | | |
1.85%, due 11/15/30 | 1,000,000 | 847,606 |
| | 10,045,791 |
Maryland 0.7% |
City of Baltimore, Harbor Point Project, Revenue Bonds | | |
4.50%, due 6/1/33 | 100,000 | 99,477 |
County of Charles, Consolidated Public Improvement, Unlimited General Obligation | | |
1.75%, due 10/1/35 | 1,000,000 | 764,377 |
County of Prince George's, Limited General Obligation | | |
Series A | | |
5.00%, due 7/15/33 | 1,560,000 | 1,677,778 |
Maryland Community Development Administration, Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
5.00%, due 9/1/42 | 1,000,000 | 1,038,864 |
Maryland Economic Development Corp., Morgan View & Thurgood Marshall Student Housing, Revenue Bonds | | |
Series A | | |
5.25%, due 7/1/32 | 465,000 | 506,408 |
Maryland Stadium Authority, Baltimore City Public School Construction Financing Fund, Revenue Bonds | | |
Insured: State Intercept | | |
5.00%, due 5/1/36 | 1,000,000 | 1,027,407 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Maryland (continued) |
Maryland Stadium Authority, Baltimore City Public School Construction Financing Fund, Revenue Bonds (continued) | | |
Series A, Insured: State Intercept | | |
5.00%, due 5/1/42 | $ 1,820,000 | $ 1,886,486 |
Maryland State Transportation Authority, Passenger Facility Charge, Revenue Bonds | | |
Series A | | |
4.00%, due 6/1/29 (c) | 335,000 | 332,138 |
| | 7,332,935 |
Massachusetts 0.5% |
Commonwealth of Massachusetts, Consolidated Loan, Limited General Obligation | | |
Series A | | |
5.00%, due 5/1/48 | 1,000,000 | 1,074,121 |
Massachusetts Bay Transportation Authority, Sales Tax, Revenue Bonds | | |
Series A | | |
(zero coupon), due 7/1/31 | 1,000,000 | 752,670 |
Massachusetts Development Finance Agency, Provident Commonwealth Education Resources, Inc., Revenue Bonds | | |
5.00%, due 10/1/30 | 1,200,000 | 1,227,865 |
5.00%, due 10/1/34 | 1,500,000 | 1,527,910 |
Massachusetts Development Finance Agency, UMass Dartmouth Student Housing Project, Revenue Bonds | | |
5.00%, due 10/1/34 | 500,000 | 506,294 |
| | 5,088,860 |
Michigan 2.9% |
Calhoun County Hospital Finance Authority, Oaklawn Hospital, Revenue Bonds | | |
5.00%, due 2/15/28 | 240,000 | 241,755 |
Charter Township of Emmett, Unlimited General Obligation | | |
Insured: AGM | | |
3.00%, due 4/1/34 | 1,045,000 | 926,935 |
| Principal Amount | Value |
|
Michigan (continued) |
City of Detroit, Unlimited General Obligation | | |
Series A | | |
5.00%, due 4/1/34 | $ 275,000 | $ 290,710 |
5.50%, due 4/1/40 | 430,000 | 453,479 |
Ferndale Public Schools, Unlimited General Obligation | | |
Insured: Q-SBLF | | |
5.00%, due 5/1/42 | 1,090,000 | 1,163,876 |
Gerald R Ford International Airport Authority, Revenue Bonds (c)(d) | | |
Insured: County Guaranteed | | |
5.00%, due 1/1/30 | 1,055,000 | 1,140,593 |
Insured: County Guaranteed | | |
5.00%, due 1/1/36 | 705,000 | 789,877 |
Insured: County Guaranteed | | |
5.00%, due 1/1/39 | 1,000,000 | 1,095,258 |
Insured: County Guaranteed | | |
5.00%, due 1/1/42 | 1,100,000 | 1,181,497 |
Insured: County Guaranteed | | |
5.00%, due 1/1/44 | 1,100,000 | 1,172,415 |
Grand Blanc Community Schools, Unlimited General Obligation | | |
Insured: Q-SBLF | | |
2.375%, due 11/1/42 | 1,475,000 | 1,007,694 |
Great Lakes Water Authority, Sewage Disposal System, Revenue Bonds, Second Lien | | |
Series C | | |
5.00%, due 7/1/36 | 1,000,000 | 1,025,008 |
Great Lakes Water Authority, Water Supply System, Revenue Bonds, Senior Lien | | |
Series A | | |
5.00%, due 7/1/46 | 1,000,000 | 1,014,553 |
Series C | | |
5.25%, due 7/1/33 | 1,500,000 | 1,556,286 |
Ida Public Schools, Limited General Obligation | | |
Insured: BAM | | |
5.00%, due 5/1/31 | 1,235,000 | 1,319,459 |
Michigan Finance Authority, Tobacco Settlement Asset-Backed, Revenue Bonds, Senior Lien | | |
Series A, Class 1 | | |
4.00%, due 6/1/34 | 500,000 | 510,784 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Michigan (continued) |
Michigan Finance Authority, BHSH System Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 4/15/29 | $ 1,000,000 | $ 1,079,252 |
Michigan Finance Authority, Beaumont Health Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 11/1/44 | 1,000,000 | 1,010,406 |
Michigan Finance Authority, Universal Learning Academy, Revenue Bonds | | |
6.00%, due 11/1/32 | 1,250,000 | 1,274,601 |
Michigan State Housing Development Authority, 24 East Ltd. Dividend Housing Association LP, Revenue Bonds | | |
3.625%, due 4/1/42 (a) | 1,760,000 | 1,738,775 |
Michigan State Housing Development Authority, New Baltimore Place Apartments Project, Revenue Bonds | | |
Insured: HUD Sector 8 | | |
5.00%, due 12/1/25 (a) | 1,097,000 | 1,098,608 |
Michigan State Housing Development Authority, Traditions of Holland Apartments Ltd. Dividend Housing Association LLC, Revenue Bonds | | |
Insured: FHA 221(D4) | | |
5.00%, due 11/1/26 (a) | 2,000,000 | 2,030,966 |
Richmond Community Schools, School Building and Site, Unlimited General Obligation | | |
Series I, Insured: Q-SBLF | | |
4.00%, due 5/1/36 | 750,000 | 769,963 |
State of Michigan, Unlimited General Obligation | | |
Series A | | |
3.625%, due 5/15/24 | 1,000,000 | 999,336 |
State of Michigan, Trunk Line, Revenue Bonds | | |
5.50%, due 11/15/44 | 2,000,000 | 2,260,857 |
Summit Academy North, Michigan Public School Academy, Revenue Bonds | | |
2.25%, due 11/1/26 | 160,000 | 150,684 |
| Principal Amount | Value |
|
Michigan (continued) |
Wayne County Airport Authority, Detroit Metropolitan Wayne County Airport, Revenue Bonds (c) | | |
Series C | | |
5.00%, due 12/1/39 | $ 1,475,000 | $ 1,477,043 |
Series B, Insured: AGM | | |
5.50%, due 12/1/40 | 1,595,000 | 1,785,255 |
Wyoming Public Schools, Unlimited General Obligation | | |
Series III, Insured: AGM | | |
4.00%, due 5/1/41 | 500,000 | 501,751 |
| | 31,067,676 |
Minnesota 0.4% |
City of Independence, Global Academy Project, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/41 | 280,000 | 233,053 |
City of Minneapolis, Unlimited General Obligation | | |
3.00%, due 12/1/33 | 1,290,000 | 1,193,326 |
Minnesota Housing Finance Agency, Revenue Bonds | | |
Series C, Insured: GNMA / FNMA / FHLMC | | |
3.80%, due 7/1/38 (c) | 2,280,000 | 2,136,062 |
Worthington Independent School District No. 518, Unlimited General Obligation | | |
Series A, Insured: SD CRED PROG | | |
3.00%, due 2/1/34 | 1,210,000 | 1,094,283 |
| | 4,656,724 |
Mississippi 0.1% |
Mississippi Hospital Equipment & Facilities Authority, Forrest County General Hospital Project, Revenue Bonds | | |
Series A | | |
5.00%, due 1/1/34 | 810,000 | 858,815 |
Missouri 2.1% |
Health & Educational Facilities Authority of the State of Missouri, Mercy Health, Revenue Bonds | | |
Series C | | |
5.00%, due 11/15/47 | 3,070,000 | 3,106,225 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Missouri (continued) |
Hickman Mills C-1 School District, Unlimited General Obligation | | |
Series C-1, Insured: BAM | | |
5.75%, due 3/1/42 | $ 2,000,000 | $ 2,204,566 |
Lees Summit Industrial Development Authority, John Knox Village Obligated Group, Revenue Bonds | | |
Series B-2 | | |
4.325%, due 8/15/47 (d) | 390,000 | 390,141 |
Missouri Housing Development Commission, Revenue Bonds | | |
Series E, Insured: GNMA / FNMA / FHLMC | | |
6.50%, due 5/1/54 | 10,000,000 | 11,171,030 |
Missouri Joint Municipal Electric Utility Commission, Iatan 2 Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/36 | 2,190,000 | 2,203,932 |
Missouri Joint Municipal Electric Utility Commission, Prairie State Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/40 | 1,450,000 | 1,464,703 |
Missouri State Environmental Improvement & Energy Resources Authority, Union Electric Co., Revenue Bonds | | |
Series B | | |
2.90%, due 9/1/33 | 1,500,000 | 1,379,029 |
Pattonville R-3 School District, Unlimited General Obligation | | |
Insured: State Aid Direct Deposit | | |
5.50%, due 3/1/39 | 500,000 | 560,676 |
| | 22,480,302 |
Montana 0.1% |
County of Gallatin, Bozeman Fiber Project, Revenue Bonds (b) | | |
Series A | | |
4.00%, due 10/15/32 | 300,000 | 273,421 |
Series A | | |
4.00%, due 10/15/36 | 300,000 | 261,267 |
| | 534,688 |
| Principal Amount | Value |
|
Nebraska 0.9% |
Nebraska Investment Finance Authority, Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
2.15%, due 3/1/31 | $ 1,150,000 | $ 999,446 |
Nebraska Public Power District, Revenue Bonds | | |
Series D | | |
5.00%, due 1/1/41 | 2,275,000 | 2,294,369 |
Omaha Public Power District, Electric System, Revenue Bonds | | |
Series A | | |
5.00%, due 2/1/42 | 2,835,000 | 2,951,782 |
Omaha Public Power District, Nebraska City Station Unit 2, Revenue Bonds | | |
Series A | | |
5.00%, due 2/1/46 | 700,000 | 707,698 |
Series A | | |
5.25%, due 2/1/42 | 1,500,000 | 1,507,390 |
Omaha School District, Unlimited General Obligation | | |
1.75%, due 12/15/35 | 1,500,000 | 1,140,383 |
| | 9,601,068 |
Nevada 0.2% |
County of Washoe, Sierra Pacific Power Co., Revenue Bonds | | |
Series G | | |
3.625%, due 3/1/36 (a) | 1,000,000 | 993,889 |
Henderson Local Improvement District No. T-22, Rainbow Canyon Phase II, Special Assessment | | |
5.00%, due 3/1/25 | 200,000 | 200,765 |
5.00%, due 3/1/26 | 300,000 | 302,326 |
Tahoe-Douglas Visitors Authority, Revenue Bonds | | |
5.00%, due 7/1/33 | 500,000 | 523,707 |
| | 2,020,687 |
New Hampshire 0.5% |
New Hampshire Business Finance Authority, Pennichuck Water Works, Inc. Project, Revenue Bonds | | |
Series A | | |
4.00%, due 4/1/30 (c) | 435,000 | 428,497 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
25
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New Hampshire (continued) |
New Hampshire Business Finance Authority, Revenue Bonds | | |
Series 2 | | |
4.25%, due 7/20/41 | $ 1,250,000 | $ 1,216,838 |
New Hampshire Health and Education Facilities Authority Act, Dartmouth-Hitchcock Obligated Group, Revenue Bonds | | |
Series B, Insured: BAM | | |
4.00%, due 8/1/33 | 2,750,000 | 2,689,398 |
New Hampshire Housing Finance Authority, Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
6.25%, due 1/1/55 | 1,000,000 | 1,092,447 |
| | 5,427,180 |
New Jersey 3.4% |
City of Atlantic City, Unlimited General Obligation | | |
Series A, Insured: BAM State Aid Withholding | | |
5.00%, due 3/1/42 | 1,215,000 | 1,237,266 |
Essex County Improvement Authority, North Star Academy Charter School of Newark, Inc., Revenue Bonds | | |
4.00%, due 7/15/30 (b) | 250,000 | 245,835 |
Jersey City Municipal Utilities Authority, Water Revenue, Revenue Notes | | |
Series A | | |
5.00%, due 5/1/25 | 750,000 | 756,961 |
New Jersey Economic Development Authority, Port Newark Container Terminal LLC, Revenue Bonds | | |
5.00%, due 10/1/37 (c) | 1,500,000 | 1,536,304 |
New Jersey Economic Development Authority, School Facilities Construction, Revenue Bonds | | |
Series UU | | |
5.00%, due 6/15/40 | 470,000 | 470,312 |
Series WW | | |
5.25%, due 6/15/33 | 2,500,000 | 2,549,826 |
| Principal Amount | Value |
|
New Jersey (continued) |
New Jersey Economic Development Authority, New Jersey Transit Transportation Project, Revenue Bonds | | |
Series A | | |
5.00%, due 11/1/44 | $ 3,000,000 | $ 3,110,805 |
New Jersey Economic Development Authority, Continental Airlines, Inc. Project, Revenue Bonds | | |
Series B | | |
5.625%, due 11/15/30 (c) | 250,000 | 252,219 |
New Jersey Health Care Facilities Financing Authority, RWJ Barnabas Health Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/43 | 5,750,000 | 5,846,392 |
New Jersey Housing & Mortgage Finance Agency, Amity Heights Apartments, Revenue Bonds | | |
Series A, Insured: HUD Sector 8 | | |
3.50%, due 7/1/25 (a) | 815,000 | 813,556 |
New Jersey Transportation Trust Fund Authority, Transportation Program, Revenue Bonds | | |
Series BB | | |
5.00%, due 6/15/42 | 10,000,000 | 10,806,567 |
Series AA | | |
5.25%, due 6/15/43 | 2,790,000 | 2,898,655 |
New Jersey Turnpike Authority, Revenue Bonds | | |
Series A | | |
4.00%, due 1/1/35 (d) | 1,155,000 | 1,223,845 |
Series A | | |
5.00%, due 1/1/27 (d) | 600,000 | 623,692 |
Series A | | |
5.00%, due 1/1/34 (d) | 1,050,000 | 1,200,752 |
Series B | | |
5.00%, due 1/1/42 | 1,000,000 | 1,091,619 |
State of New Jersey, Unlimited General Obligation | | |
5.00%, due 6/1/39 | 500,000 | 534,409 |
Tobacco Settlement Financing Corp., Revenue Bonds | | |
Series B | | |
5.00%, due 6/1/46 | 1,000,000 | 1,009,863 |
| | 36,208,878 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
26 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New York 6.8% |
Albany Capital Resource Corp., Albany Leadership Charter High School For Girls Project, Revenue Bonds | | |
4.00%, due 6/1/29 | $ 315,000 | $ 292,178 |
Build NYC Resource Corp., Pratt Paper, Inc. Project, Revenue Bonds | | |
5.00%, due 1/1/35 (b)(c) | 1,000,000 | 1,004,605 |
City of New York, Unlimited General Obligation | | |
Series F-1 | | |
5.00%, due 6/1/35 | 1,000,000 | 1,012,460 |
Series F-1 | | |
5.00%, due 8/1/38 | 500,000 | 559,203 |
Series D | | |
5.00%, due 4/1/44 | 1,000,000 | 1,092,063 |
Series D | | |
5.25%, due 4/1/47 | 1,000,000 | 1,098,534 |
Series B-1 | | |
5.25%, due 10/1/47 | 1,500,000 | 1,629,010 |
Series D | | |
5.50%, due 4/1/46 | 1,490,000 | 1,680,752 |
Hudson Yards Infrastructure Corp., Second Indenture, Revenue Bonds | | |
Series A, Insured: AGM | | |
4.00%, due 2/15/47 | 540,000 | 514,733 |
Long Island Power Authority, Electric System, Revenue Bonds | | |
Series A | | |
5.00%, due 9/1/39 | 1,000,000 | 1,002,124 |
Metropolitan Transportation Authority, Revenue Bonds | | |
Series B | | |
4.00%, due 11/15/36 | 750,000 | 733,007 |
Series A | | |
5.50%, due 11/15/47 | 1,570,000 | 1,734,120 |
Metropolitan Transportation Authority, Green Bond, Revenue Bonds | | |
Series A-1 | | |
5.00%, due 11/15/29 | 500,000 | 512,918 |
Series A-1 | | |
5.00%, due 11/15/32 | 1,295,000 | 1,328,202 |
Nassau County Local Economic Assistance Corp., Roosevelt Children's Academy Charter School, Revenue Bonds | | |
Series A | | |
4.00%, due 7/1/33 | 750,000 | 734,179 |
| Principal Amount | Value |
|
New York (continued) |
New York City Housing Development Corp., Revenue Bonds | | |
Series C, Insured: HUD Sector 8 FNMA | | |
2.40%, due 8/1/40 | $ 1,500,000 | $ 1,095,641 |
New York City Housing Development Corp., Multi-Family Housing, Sustainable Neighborhood, Revenue Bonds | | |
Series F-2A, Insured: FHA 542(C) | | |
3.40%, due 11/1/62 (a) | 500,000 | 493,122 |
New York City Municipal Water Finance Authority, Water & Sewer System Second General Resolution, Revenue Bonds | | |
Series HH | | |
5.00%, due 6/15/37 | 2,000,000 | 2,024,378 |
Series HH | | |
5.00%, due 6/15/39 | 1,000,000 | 1,011,094 |
Series DD-2 | | |
5.00%, due 6/15/40 | 1,000,000 | 1,043,302 |
Series DD-1 | | |
5.00%, due 6/15/49 | 305,000 | 316,280 |
New York City Transitional Finance Authority, Future Tax Secured, Revenue Bonds | | |
Series B-1 | | |
5.00%, due 11/1/38 | 3,000,000 | 3,047,216 |
Series F-1 | | |
5.00%, due 5/1/42 | 750,000 | 773,940 |
Series B-1 | | |
5.00%, due 8/1/42 | 1,600,000 | 1,599,850 |
Series C | | |
5.50%, due 5/1/41 | 2,000,000 | 2,300,199 |
Series D-1 | | |
5.50%, due 11/1/45 | 2,000,000 | 2,234,573 |
New York City Transitional Finance Authority, Building Aid, Revenue Bonds | | |
Series S-2, Insured: State Aid Withholding | | |
5.00%, due 7/15/40 | 1,500,000 | 1,515,407 |
Series S-1, Insured: State Aid Withholding | | |
5.00%, due 7/15/43 | 1,555,000 | 1,568,087 |
Series S-3, Insured: State Aid Withholding | | |
5.25%, due 7/15/45 | 1,750,000 | 1,841,497 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
27
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New York (continued) |
New York Liberty Development Corp., Bank of America Tower at One Bryant Park Project, Revenue Bonds | | |
2.45%, due 9/15/69 | $ 500,000 | $ 451,297 |
New York Liberty Development Corp., Green Bond, Revenue Bonds | | |
Series A, Insured: AGM-CR | | |
2.75%, due 11/15/41 | 370,000 | 285,994 |
New York Liberty Development Corp., 1 World Trade Center, Revenue Bonds | | |
Insured: BAM | | |
4.00%, due 2/15/43 | 1,500,000 | 1,482,372 |
New York Liberty Development Corp., 3 World Trade Center LLC, Revenue Bonds | | |
Class 1 | | |
5.00%, due 11/15/44 (b) | 1,250,000 | 1,238,888 |
New York State Dormitory Authority, State Personal Income Tax, Revenue Bonds | | |
Series E | | |
3.00%, due 3/15/41 | 250,000 | 208,979 |
Series E | | |
4.00%, due 3/15/45 | 1,950,000 | 1,892,957 |
Series B | | |
5.00%, due 2/15/40 | 1,300,000 | 1,346,910 |
Series A | | |
5.00%, due 3/15/44 | 1,175,000 | 1,285,789 |
New York State Dormitory Authority, Sales tax, Revenue Bonds | | |
Series E-3 | | |
5.00%, due 3/15/41 | 1,500,000 | 1,568,802 |
New York State Environmental Facilities Corp., State of New York State Revolving Fund, Revenue Bonds | | |
Series A | | |
5.00%, due 6/15/33 | 1,265,000 | 1,297,816 |
New York State Thruway Authority, Revenue Bonds, Junior Lien | | |
Series A | | |
5.00%, due 1/1/41 | 1,000,000 | 1,011,554 |
| Principal Amount | Value |
|
New York (continued) |
New York State Thruway Authority, Revenue Bonds | | |
Series P | | |
5.00%, due 1/1/41 | $ 1,200,000 | $ 1,326,187 |
New York Transportation Development Corp., Delta Air Lines, Inc. - LaGuardia Airport Terminals C&D Redevelopment Project, Revenue Bonds (c) | | |
4.00%, due 1/1/36 | 1,000,000 | 991,673 |
4.375%, due 10/1/45 | 1,250,000 | 1,208,594 |
New York Transportation Development Corp., John F. kennedy International Airport Project, Revenue Bonds | | |
Series A | | |
5.00%, due 12/1/25 (c) | 1,400,000 | 1,417,286 |
New York Transportation Development Corp., Delta Air Lines, Inc., Revenue Bonds | | |
5.00%, due 1/1/29 (c) | 1,230,000 | 1,270,102 |
New York Transportation Development Corp., LaGuardia Airport Terminal B Redevelopment Project, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/46 (c) | 4,000,000 | 3,901,345 |
New York Transportation Development Corp., JFK NTO LLC, Revenue Bonds | | |
5.50%, due 6/30/41 (c) | 1,700,000 | 1,849,785 |
Niagara Frontier Transportation Authority, Buffalo Niagara International Airport, Revenue Bonds | | |
Series A | | |
5.00%, due 4/1/36 (c) | 865,000 | 888,136 |
Port Authority of New York & New Jersey, Consolidated 234th, Revenue Bonds | | |
Series 234 | | |
5.00%, due 8/1/38 (c) | 3,500,000 | 3,746,116 |
Town of Colonie, Limited General Obligation | | |
Insured: AGM | | |
2.00%, due 3/1/29 | 985,000 | 864,832 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
28 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
New York (continued) |
Triborough Bridge & Tunnel Authority, MTA Bridges & Tunnels, Revenue Bonds, Senior Lien | | |
Series A-2, Insured: AGM-CR | | |
2.00%, due 5/15/45 (a) | $ 250,000 | $ 229,462 |
Series C | | |
5.25%, due 11/15/40 | 1,000,000 | 1,135,695 |
Triborough Bridge & Tunnel Authority, MTA Bridges & Tunnels, Revenue Bonds | | |
Series C | | |
5.00%, due 11/15/37 | 1,000,000 | 1,060,063 |
Series B-3 | | |
5.00%, due 11/15/38 | 640,000 | 651,427 |
Series A | | |
5.00%, due 11/15/40 | 3,005,000 | 3,034,688 |
Utility Debt Securitization Authority, Revenue Bonds | | |
5.00%, due 12/15/33 | 850,000 | 866,452 |
| | 72,305,875 |
North Carolina 2.2% |
City of Fayetteville, Public Works Commission, Revenue Bonds | | |
2.25%, due 3/1/41 | 3,760,000 | 2,687,791 |
County of Alamance, Unlimited General Obligation | | |
2.00%, due 5/1/35 | 1,500,000 | 1,208,746 |
Greater Asheville Regional Airport Authority, Revenue Bonds (c) | | |
Series A, Insured: AGM | | |
5.00%, due 7/1/30 | 1,500,000 | 1,621,275 |
Insured: AGM | | |
5.25%, due 7/1/40 | 500,000 | 545,956 |
Insured: AGM | | |
5.25%, due 7/1/43 | 500,000 | 539,089 |
North Carolina Housing Finance Agency, Revenue Bonds | | |
Series 38-B | | |
3.85%, due 7/1/37 | 2,510,000 | 2,393,335 |
North Carolina State Education Assistance Authority, Revenue Bonds, Senior Lien (c) | | |
Series A | | |
5.50%, due 6/1/30 | 4,875,000 | 5,204,115 |
Series A | | |
5.50%, due 6/1/31 | 3,250,000 | 3,490,854 |
| Principal Amount | Value |
|
North Carolina (continued) |
North Carolina State Education Assistance Authority, Revenue Bonds, Senior Lien (c) (continued) | | |
Series A | | |
5.50%, due 6/1/32 | $ 3,000,000 | $ 3,236,830 |
North Carolina Turnpike Authority, Triangle Expressway System, Revenue Bonds, Senior Lien | | |
Insured: AGM | | |
5.00%, due 1/1/36 | 1,545,000 | 1,645,590 |
Insured: AGM | | |
5.00%, due 1/1/49 | 1,000,000 | 1,031,149 |
| | 23,604,730 |
North Dakota 0.4% |
City of Grand Forks, Altru Health System, Revenue Bonds | | |
Insured: AGM-CR | | |
4.00%, due 12/1/37 | 310,000 | 292,152 |
Series A, Insured: AGM | | |
5.00%, due 12/1/30 | 700,000 | 757,950 |
Series A, Insured: AGM | | |
5.00%, due 12/1/31 | 650,000 | 708,622 |
Series A, Insured: AGM | | |
5.00%, due 12/1/32 | 800,000 | 876,731 |
Series A, Insured: AGM | | |
5.00%, due 12/1/33 | 1,000,000 | 1,102,994 |
| | 3,738,449 |
Ohio 1.8% |
American Municipal Power, Inc., Hydroelectric Projects, Revenue Bonds | | |
Series A | | |
5.00%, due 2/15/41 | 3,000,000 | 3,025,359 |
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Senior Lien | | |
Series A-2, Class 1 | | |
4.00%, due 6/1/48 | 1,000,000 | 891,736 |
City of Toledo, Various Purpose Improvement, Limited General Obligation | | |
Insured: AGM | | |
5.25%, due 12/1/35 | 1,000,000 | 1,134,513 |
Insured: AGM | | |
5.25%, due 12/1/37 | 750,000 | 837,150 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
29
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Ohio (continued) |
City of Upper Arlington, Various Purpose, Limited General Obligation | | |
5.75%, due 12/1/38 | $ 700,000 | $ 719,186 |
Cloverleaf Local School District, Certificate of Participation | | |
Insured: BAM | | |
5.375%, due 12/1/37 | 750,000 | 796,960 |
Euclid City School District, Unlimited General Obligation | | |
Series A, Insured: SD CRED PROG | | |
5.25%, due 1/15/44 | 2,000,000 | 2,028,870 |
Forest Hills Local School District, Unlimited General Obligation | | |
5.00%, due 12/1/44 | 490,000 | 491,365 |
Ohio Air Quality Development Authority, American Electric Power Co. Project, Revenue Bonds (a)(c) | | |
Series D | | |
2.10%, due 10/1/28 | 3,000,000 | 2,951,842 |
Series B | | |
2.50%, due 11/1/42 | 1,000,000 | 871,246 |
Ohio Air Quality Development Authority, Ohio Valley Electric Corp. Project, Revenue Bonds | | |
Series D | | |
2.875%, due 2/1/26 | 250,000 | 239,753 |
Ohio Air Quality Development Authority, Pratt Paper LLC Project, Revenue Bonds (b)(c) | | |
3.75%, due 1/15/28 | 820,000 | 811,582 |
4.50%, due 1/15/48 | 750,000 | 723,452 |
State of Ohio, Republic Services, Inc., Revenue Bonds | | |
3.80%, due 11/1/35 (a) | 3,115,000 | 3,113,363 |
State of Ohio, Portsmouth Bypass Project, Revenue Bonds | | |
Insured: AGM | | |
5.00%, due 12/31/35 (c) | 1,000,000 | 1,005,909 |
| | 19,642,286 |
Oregon 0.4% |
County of Clackamas, Limited General Obligation | | |
1.875%, due 6/1/39 | 1,070,000 | 723,159 |
| Principal Amount | Value |
|
Oregon (continued) |
Multnomah County School District No. 1, Unlimited General Obligation | | |
Insured: School Bond Guaranty | | |
3.00%, due 6/15/37 | $ 2,000,000 | $ 1,777,716 |
State of Oregon, Unlimited General Obligation | | |
Series A | | |
5.00%, due 5/1/27 (d) | 1,365,000 | 1,436,146 |
| | 3,937,021 |
Pennsylvania 2.9% |
Allegheny County Airport Authority, Revenue Bonds (c) | | |
Series A, Insured: AGM | | |
5.50%, due 1/1/42 | 2,000,000 | 2,202,041 |
Series A, Insured: AGM | | |
5.50%, due 1/1/43 | 1,500,000 | 1,644,640 |
Allentown Neighborhood Improvement Zone Development Authority, City Center Project, Revenue Bonds (b) | | |
5.00%, due 5/1/27 | 270,000 | 274,774 |
5.00%, due 5/1/32 | 220,000 | 223,975 |
5.00%, due 5/1/42 | 1,175,000 | 1,166,447 |
Allentown Neighborhood Improvement Zone Development Authority, Revenue Bonds | | |
6.00%, due 5/1/42 (b) | 500,000 | 517,228 |
Bucks County Industrial Development Authority, Grand View Hospital Project, Revenue Bonds | | |
5.00%, due 7/1/34 | 300,000 | 253,180 |
5.00%, due 7/1/35 | 300,000 | 255,101 |
Chester County Industrial Development Authority, Collegium Charter School, Revenue Bonds | | |
5.00%, due 10/15/32 (b) | 250,000 | 251,191 |
Coatesville School District, Limited General Obligation | | |
Insured: BAM State Aid Withholding | | |
5.25%, due 11/15/37 | 5,000,000 | 5,375,844 |
Commonwealth Financing Authority, Tobacco Master Settlement Payment, Revenue Bonds | | |
Insured: AGM | | |
4.00%, due 6/1/39 | 1,000,000 | 987,888 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
30 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Pennsylvania (continued) |
Cumberland Valley School District, Limited General Obligation | | |
Series A, Insured: AGM State Aid Withholding | | |
5.00%, due 11/15/44 | $ 1,275,000 | $ 1,358,597 |
Dauphin County General Authority, Harrisburg University Science Technology Project (The), Revenue Bonds | | |
5.00%, due 10/15/30 (b) | 1,000,000 | 902,348 |
Doylestown Hospital Authority, Doylestown Hospital Obligated Group, Revenue Bonds | | |
5.00%, due 7/1/31 (b) | 250,000 | 252,797 |
Indiana County Industrial Development Authority, Foundation for Indiana University of Pennsylvania (The), Revenue Bonds | | |
Insured: BAM | | |
5.00%, due 5/1/29 | 250,000 | 263,871 |
Lancaster Industrial Development Authority, Landis Homes Retirement Community, Revenue Bonds | | |
4.00%, due 7/1/37 | 100,000 | 88,922 |
Pennsylvania Economic Development Financing Authority, Republic Services, Inc., Revenue Bonds | | |
Series A | | |
4.05%, due 4/1/34 (a)(c) | 1,300,000 | 1,299,911 |
Pennsylvania Economic Development Financing Authority, Penndot Major Bridges Project, Revenue Bonds (c) | | |
5.25%, due 6/30/36 | 2,000,000 | 2,199,843 |
5.50%, due 6/30/37 | 250,000 | 278,377 |
5.50%, due 6/30/38 | 500,000 | 554,045 |
Pennsylvania Higher Education Assistance Agency, Revenue Bonds, Senior Lien | | |
Series 1A | | |
5.00%, due 6/1/29 (c) | 1,550,000 | 1,629,965 |
Pennsylvania Higher Educational Facilities Authority, Bryn Mawr College, Revenue Bonds | | |
5.00%, due 12/1/38 | 1,000,000 | 1,003,356 |
| Principal Amount | Value |
|
Pennsylvania (continued) |
Pennsylvania Housing Finance Agency, Revenue Bonds | | |
Series A-141 | | |
5.75%, due 10/1/53 | $ 635,000 | $ 668,161 |
Pennsylvania Turnpike Commission, Revenue Bonds | | |
Series A-1 | | |
5.00%, due 12/1/41 | 1,000,000 | 1,020,147 |
Series B | | |
5.25%, due 12/1/39 | 785,000 | 790,182 |
Series A | | |
5.50%, due 12/1/46 | 1,155,000 | 1,190,322 |
Pennsylvania Turnpike Commission, Oil Franchise, Revenue Bonds | | |
Series A | | |
5.25%, due 12/1/44 | 500,000 | 523,463 |
Philadelphia Authority for Industrial Development, Philadelphia Performing Arts Charter School Project, Revenue Bonds | | |
5.00%, due 6/15/30 (b) | 435,000 | 444,550 |
Philadelphia Gas Works Co., Revenue Bonds | | |
Series 14 | | |
5.00%, due 10/1/30 | 1,680,000 | 1,727,763 |
Pittsburgh Water & Sewer Authority, Revenue Bonds, First Lien | | |
Series A, Insured: AGM | | |
5.00%, due 9/1/35 | 1,200,000 | 1,358,356 |
| | 30,707,285 |
Puerto Rico 2.7% |
Commonwealth of Puerto Rico | | |
(zero coupon), due 11/1/43 | 4,817,269 | 2,872,297 |
(zero coupon), due 11/1/51 | 4,583,231 | 2,755,668 |
Commonwealth of Puerto Rico, Unlimited General Obligation | | |
Series A-1 | | |
4.00%, due 7/1/35 | 563,717 | 546,873 |
Series A-1 | | |
5.625%, due 7/1/27 | 625,000 | 650,151 |
Series A-1 | | |
5.75%, due 7/1/31 | 265,000 | 295,895 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds, Senior Lien (b) | | |
Series B | | |
4.50%, due 7/1/24 | 2,265,000 | 2,257,293 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
31
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Puerto Rico (continued) |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds, Senior Lien (b) (continued) | | |
Series A | | |
5.00%, due 7/1/33 | $ 1,000,000 | $ 1,071,300 |
Series 2020A | | |
5.00%, due 7/1/35 | 3,000,000 | 3,153,163 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/28 (b) | 1,000,000 | 1,042,630 |
Puerto Rico Sales Tax Financing Corp., Revenue Bonds | | |
Series A-2 | | |
4.329%, due 7/1/40 | 5,418,000 | 5,306,016 |
Series A-2 | | |
4.329%, due 7/1/40 | 4,838,000 | 4,738,004 |
Series A-1 | | |
4.55%, due 7/1/40 | 4,255,000 | 4,261,158 |
| | 28,950,448 |
Rhode Island 0.5% |
Rhode Island Health and Educational Building Corp., Public Schools Financing Program, Revenue Bonds | | |
Series F | | |
5.50%, due 5/15/47 | 1,500,000 | 1,631,188 |
Rhode Island Housing & Mortgage Finance Corp., Revenue Bonds | | |
Series 82-A, Insured: GNMA | | |
5.00%, due 10/1/41 | 1,215,000 | 1,269,293 |
Rhode Island Housing and Mortgage Finance Corp., Revenue Bonds | | |
Series A-77, Insured: GNMA | | |
5.00%, due 4/1/27 | 555,000 | 576,637 |
Rhode Island Student Loan Authority, Revenue Bonds, Senior Lien | | |
Series A | | |
4.125%, due 12/1/43 (c) | 1,575,000 | 1,484,499 |
| | 4,961,617 |
South Carolina 0.7% |
Patriots Energy Group Financing Agency, Revenue Bonds | | |
Series B-2 | | |
5.458%, due 2/1/54 | 6,000,000 | 6,167,813 |
| Principal Amount | Value |
|
South Carolina (continued) |
South Carolina State Housing Finance & Development Authority, Dillon School Senior LP, Revenue Bonds | | |
Insured: HUD Sector 202 | | |
5.00%, due 10/1/26 (a) | $ 1,335,000 | $ 1,347,023 |
| | 7,514,836 |
South Dakota 0.1% |
Baltic School District No. 49-1, Unlimited General Obligation | | |
Insured: AGM | | |
4.50%, due 12/1/40 | 575,000 | 587,592 |
Tennessee 1.0% |
County of Knox, Unlimited General Obligation | | |
Series B | | |
2.80%, due 6/1/31 | 1,000,000 | 929,825 |
Health Educational and Housing Facility Board of the City of Memphis (The), Strategies LP, Revenue Bonds | | |
Insured: HUD Sector 8 FHA 221(D4) | | |
5.00%, due 7/1/27 (a) | 500,000 | 506,351 |
Health Educational and Housing Facility Board of the City of Memphis (The), Strategies II LP, Revenue Bonds | | |
Insured: HUD Sector 8 FHA 221(D4) | | |
5.00%, due 7/1/27 (a) | 500,000 | 506,454 |
Knox County Health Educational & Housing Facility Board, Revenue Bonds | | |
4.05%, due 12/1/27 (a) | 3,000,000 | 2,993,331 |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, 619 at Old Stone Bridge Crossings LP, Revenue Bonds | | |
Series B | | |
4.00%, due 4/1/26 (a) | 1,511,000 | 1,503,665 |
Metropolitan Nashville Airport Authority (The), Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/36 (c) | 3,500,000 | 3,730,756 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
32 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Tennessee (continued) |
Tennessee Energy Acquisition Corp., Revenue Bonds | | |
Series B | | |
5.625%, due 9/1/26 | $ 500,000 | $ 505,254 |
| | 10,675,636 |
Texas 11.1% |
Alamito Public Facility Corp., EP WH Mesa Franklin LLC, Revenue Bonds | | |
Insured: FHA 221(D4) | | |
3.50%, due 9/1/25 (a) | 1,003,000 | 998,806 |
Alamito Public Facility Corp., EP WH Cien Palmas LLC, Revenue Bonds | | |
Insured: HUD Sector 8 FHA 221(D4) | | |
3.50%, due 9/1/25 (a) | 1,008,000 | 1,004,937 |
Alamito Public Facility Corp., EP Salazar LP, Revenue Bonds | | |
Insured: HUD Sector 8 | | |
5.00%, due 8/1/44 (a) | 1,000,000 | 1,014,899 |
Allen Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 2/15/35 | 2,000,000 | 2,053,072 |
Arlington Higher Education Finance Corp., Trinity Basin Preparatory, Inc., Revenue Bonds | | |
Insured: PSF-GTD | | |
5.00%, due 8/15/41 | 1,115,000 | 1,188,384 |
Barbers Hill Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
4.00%, due 2/15/41 | 1,000,000 | 1,009,001 |
Central Texas Regional Mobility Authority, Revenue Bonds | | |
(zero coupon), due 1/1/27 | 1,900,000 | 1,712,414 |
Central Texas Regional Mobility Authority, Revenue Bonds, Sub. Lien | | |
Series C | | |
5.00%, due 1/1/27 | 1,145,000 | 1,167,997 |
Central Texas Turnpike System, Revenue Bonds | | |
Series C | | |
5.00%, due 8/15/31 | 2,500,000 | 2,506,508 |
| Principal Amount | Value |
|
Texas (continued) |
Central Texas Turnpike System, Revenue Bonds, First Tier | | |
Series A | | |
5.00%, due 8/15/39 | $ 1,185,000 | $ 1,262,083 |
City of Amarillo, Limited General Obligation | | |
2.00%, due 2/15/41 | 1,000,000 | 677,186 |
City of Arlington, Special Tax, Special Tax, Senior Lien | | |
Series A, Insured: AGM | | |
5.00%, due 2/15/43 | 250,000 | 257,555 |
City of Bryan, Limited General Obligation | | |
2.00%, due 8/15/32 | 1,060,000 | 873,243 |
City of College Station, Limited General Obligation | | |
2.00%, due 2/15/36 | 1,000,000 | 770,823 |
City of Dallas, Limited General Obligation | | |
Series B | | |
5.00%, due 2/15/26 | 1,000,000 | 1,028,108 |
Series B | | |
5.00%, due 2/15/26 | 2,110,000 | 2,169,308 |
Series B | | |
5.00%, due 2/15/27 | 1,000,000 | 1,047,601 |
City of Greenville, Waterworks & Sewer System, Revenue Bonds | | |
Insured: AGM | | |
5.00%, due 2/15/41 (d) | 1,245,000 | 1,336,045 |
City of Houston, Combined Utility System, Revenue Bonds, First Lien | | |
Series A | | |
5.00%, due 11/15/26 (d) | 1,000,000 | 1,039,498 |
Series B | | |
5.00%, due 11/15/35 | 2,000,000 | 2,068,095 |
City of Houston, Hotel Occupancy Tax & Special Tax, Revenue Bonds | | |
5.00%, due 9/1/28 | 365,000 | 387,169 |
City of Houston, Airport System, Revenue Bonds, Sub. Lien | | |
Series A, Insured: AGM | | |
5.25%, due 7/1/42 (c) | 1,000,000 | 1,083,725 |
Comal County Water Control & Improvement District No. 6, Unlimited General Obligation | | |
Insured: AGM | | |
4.00%, due 9/1/43 | 1,615,000 | 1,543,156 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
33
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Texas (continued) |
County of Parker, Unlimited General Obligation | | |
5.00%, due 2/15/42 | $ 6,000,000 | $ 6,129,172 |
Cypress-Fairbanks Independent School District, Unlimited General Obligation | | |
Series A, Insured: PSF-GTD | | |
2.25%, due 2/15/41 | 2,000,000 | 1,393,350 |
Dallas College, Unlimited General Obligation | | |
3.00%, due 2/15/28 | 1,575,000 | 1,563,830 |
Dallas Fort Worth International Airport, Revenue Bonds | | |
Series A | | |
4.00%, due 11/1/46 | 250,000 | 239,673 |
Series B | | |
5.00%, due 11/1/36 | 1,000,000 | 1,124,543 |
Dallas Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
2.00%, due 2/15/42 | 1,500,000 | 981,335 |
Insured: PSF-GTD | | |
5.00%, due 2/15/48 | 845,000 | 899,086 |
Del Valle Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
2.00%, due 6/15/39 | 2,000,000 | 1,392,973 |
Denton Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 8/15/37 | 4,000,000 | 4,173,474 |
Forney Independent School District, Unlimited General Obligation | | |
Insured: BAM | | |
(zero coupon), due 8/15/41 | 255,000 | 86,225 |
Harris County Municipal Utility District No. 423, Unlimited General Obligation | | |
Series A, Insured: BAM | | |
7.25%, due 4/1/26 | 300,000 | 319,207 |
Series A, Insured: BAM | | |
7.25%, due 4/1/27 | 300,000 | 328,125 |
Harris County Municipal Utility District No. 489, Unlimited General Obligation | | |
Series A, Insured: AGM | | |
6.50%, due 9/1/29 | 1,000,000 | 1,107,599 |
| Principal Amount | Value |
|
Texas (continued) |
Harris County Toll Road, Revenue Bonds, Senior Lien | | |
Series A | | |
5.00%, due 8/15/43 | $ 2,290,000 | $ 2,378,236 |
Harris County Water Control & Improvement District No. 159, Unlimited General Obligation | | |
Insured: BAM | | |
6.375%, due 9/1/30 | 2,000,000 | 2,238,952 |
Headwaters Municipal Utility District of Hays County, Unlimited General Obligation | | |
Series A, Insured: AGM | | |
6.00%, due 8/15/29 | 3,885,000 | 4,230,455 |
Houston Higher Education Finance Corp., KIPP, Inc., Revenue Bonds | | |
Series A, Insured: PSF-GTD | | |
4.00%, due 2/15/39 | 1,000,000 | 946,514 |
Leander Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
(zero coupon), due 8/16/30 | 2,560,000 | 2,029,394 |
Lovejoy Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
2.00%, due 2/15/39 | 1,000,000 | 706,313 |
Matagorda County Navigation District No. 1, Central Power and Light Company Project, Revenue Bonds | | |
Series A | | |
2.60%, due 11/1/29 | 1,500,000 | 1,350,976 |
4.25%, due 5/1/30 (c) | 1,000,000 | 996,395 |
Mesquite Independent School District, Unlimited General Obligation | | |
Series A, Insured: PSF-GTD | | |
4.00%, due 8/15/35 | 1,530,000 | 1,539,953 |
Series A, Insured: PSF-GTD | | |
4.00%, due 8/15/37 | 1,655,000 | 1,665,766 |
Midland Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 2/15/26 | 2,500,000 | 2,572,461 |
Midlothian Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 2/15/43 | 3,460,000 | 3,555,504 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
34 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Texas (continued) |
New Hope Cultural Education Facilities Finance Corp., Jubilee Academic Center, Inc., Revenue Bonds | | |
4.00%, due 8/15/29 (b) | $ 1,240,000 | $ 1,204,236 |
New Hope Cultural Education Facilities Finance Corp., Outlook at Windhaven Forefront Living, Revenue Bonds | | |
Series B-3 | | |
4.25%, due 10/1/26 | 1,100,000 | 1,090,271 |
New Hope Cultural Education Facilities Finance Corp., Quality Senior Housing Foundation of East Texas, Inc., Revenue Bonds | | |
Series A-1 | | |
5.00%, due 12/1/49 | 250,000 | 222,883 |
North East Texas Regional Mobility Authority, Revenue Bonds, Senior Lien | | |
Series B | | |
5.00%, due 1/1/36 | 2,950,000 | 2,979,591 |
North Texas Tollway Authority, Revenue Bonds, First Tier | | |
Series A | | |
3.00%, due 1/1/38 | 1,000,000 | 874,735 |
Series A | | |
5.25%, due 1/1/38 | 1,000,000 | 1,121,006 |
North Texas Tollway Authority, Revenue Bonds | | |
Series B | | |
5.00%, due 1/1/45 | 1,000,000 | 1,002,962 |
Northwest Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 2/15/40 | 325,000 | 355,623 |
Insured: PSF-GTD | | |
5.00%, due 2/15/41 | 350,000 | 381,102 |
Pecos Barstow Toyah Independent School District, Unlimited General Obligation | | |
Insured: PSF-GTD | | |
5.00%, due 2/15/37 | 1,000,000 | 1,053,355 |
Insured: PSF-GTD | | |
5.00%, due 2/15/39 | 515,000 | 528,486 |
| Principal Amount | Value |
|
Texas (continued) |
Pecos Barstow Toyah Independent School District, Unlimited General Obligation (continued) | | |
Insured: PSF-GTD | | |
5.00%, due 2/15/40 | $ 2,500,000 | $ 2,561,536 |
Insured: PSF-GTD | | |
5.00%, due 2/15/41 | 1,500,000 | 1,535,352 |
Sabine-Neches Navigation District, Waterway Project, Limited General Obligation | | |
5.25%, due 2/15/39 | 1,500,000 | 1,630,386 |
State of Texas, College Student Loan, Unlimited General Obligation (c) | | |
4.00%, due 8/1/30 | 5,000,000 | 4,967,582 |
4.00%, due 8/1/31 | 3,000,000 | 2,991,225 |
State of Texas, Mobility Fund, Unlimited General Obligation | | |
Series B | | |
5.00%, due 10/1/35 | 5,000,000 | 5,232,445 |
Series B | | |
5.00%, due 10/1/36 | 5,000,000 | 5,074,567 |
State of Texas, Transportation Commission, Highway Improvement, Unlimited General Obligation | | |
Series A | | |
5.00%, due 4/1/37 | 750,000 | 770,217 |
Texas Department of Housing & Community Affairs, Revenue Bonds | | |
Series A, Insured: GNMA | | |
3.50%, due 7/1/52 | 620,000 | 603,259 |
Texas Municipal Gas Acquisition & Supply Corp. II, Revenue Bonds | | |
Series C | | |
4.38%, due 9/15/27 | 750,000 | 748,393 |
Texas Municipal Gas Acquisition & Supply Corp. III, Gas Supply, Revenue Bonds | | |
5.00%, due 12/15/27 | 1,315,000 | 1,351,903 |
Texas Private Activity Bond Surface Transportation Corp., Blueridge Transportation Group LLC, Revenue Bonds, Senior Lien | | |
5.00%, due 12/31/45 (c) | 1,000,000 | 1,001,397 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
35
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Texas (continued) |
Texas Private Activity Bond Surface Transportation Corp., NTE Mobility Partners Segments 3 LLC, Revenue Bonds, Senior Lien (c) | | |
5.50%, due 6/30/40 | $ 2,400,000 | $ 2,560,258 |
5.50%, due 6/30/41 | 1,500,000 | 1,596,529 |
Texas Public Finance Authority, Financing System-Texas Southern University, Revenue Bonds | | |
Insured: BAM | | |
5.00%, due 5/1/32 | 1,000,000 | 1,081,346 |
Trinity River Authority, Tarrant County Water System, Revenue Bonds | | |
5.00%, due 2/1/37 | 1,250,000 | 1,404,987 |
| | 118,074,756 |
U.S. Virgin Islands 0.3% |
Matching Fund Special Purpose Securitization Corp., Revenue Bonds | | |
Series A | | |
5.00%, due 10/1/26 | 860,000 | 884,213 |
Series A | | |
5.00%, due 10/1/30 | 2,460,000 | 2,615,425 |
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue Bonds | | |
Series C, Insured: AGM-CR | | |
5.00%, due 10/1/30 | 100,000 | 100,988 |
| | 3,600,626 |
Utah 2.5% |
Canyons School District, Unlimited General Obligation | | |
Series A, Insured: School Bond Guaranty | | |
1.50%, due 6/15/34 | 2,000,000 | 1,505,399 |
Central Utah Water Conservancy District, Revenue Bonds | | |
Series B | | |
4.00%, due 10/1/39 | 1,000,000 | 1,002,169 |
City of Salt Lake City, Airport, Revenue Bonds (c) | | |
Series A | | |
5.25%, due 7/1/40 | 1,065,000 | 1,160,331 |
Series A | | |
5.25%, due 7/1/42 | 1,000,000 | 1,080,556 |
| Principal Amount | Value |
|
Utah (continued) |
City of Salt Lake City, Airport, Revenue Bonds (c) (continued) | | |
Series A | | |
5.25%, due 7/1/43 | $ 1,000,000 | $ 1,075,815 |
County of Utah, Intermountain Healthcare, Revenue Bonds | | |
Series B | | |
5.00%, due 5/15/46 | 1,390,000 | 1,409,564 |
Intermountain Power Agency, Revenue Bonds | | |
Series A | | |
5.00%, due 7/1/41 | 880,000 | 954,883 |
Series A | | |
5.25%, due 7/1/43 | 1,850,000 | 2,046,168 |
Jordan School District, Unlimited General Obligation | | |
Insured: School Bond Guaranty | | |
2.25%, due 6/15/37 | 1,315,000 | 1,002,168 |
State of Utah, Build America Bonds, Unlimited General Obligation | | |
Series B | | |
3.539%, due 7/1/25 | 1,991,250 | 1,968,461 |
UIPA Crossroads Public Infrastructure District, Tax Allocation | | |
4.125%, due 6/1/41 (b) | 500,000 | 438,914 |
Utah Charter School Finance Authority, Mountain West Montessori Academy, Inc., Revenue Bonds | | |
Series A | | |
3.125%, due 6/15/29 (b) | 1,085,000 | 991,766 |
Utah Charter School Finance Authority, Spectrum Academy Project, Revenue Bonds | | |
Insured: BAM UT CSCE | | |
4.00%, due 4/15/40 | 250,000 | 236,715 |
Utah Charter School Finance Authority, Summit Academy, Inc. Project, Revenue Bonds | | |
Series A, Insured: UT CSCE | | |
5.00%, due 4/15/29 | 185,000 | 196,528 |
Utah Housing Corp., Barcelona Properties LLC, Revenue Bonds | | |
Insured: FHLMC | | |
3.40%, due 7/1/30 | 2,900,000 | 2,726,999 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
36 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Utah (continued) |
Utah Housing Corp., Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
6.50%, due 1/1/54 | $ 2,750,000 | $ 3,016,143 |
Utah Infrastructure Agency, Telecommunication, Revenue Bonds | | |
4.00%, due 10/15/31 | 500,000 | 488,103 |
4.00%, due 10/15/33 | 425,000 | 409,996 |
4.00%, due 10/15/33 | 500,000 | 482,348 |
4.00%, due 10/15/35 | 700,000 | 665,612 |
4.00%, due 10/15/36 | 1,000,000 | 937,194 |
4.00%, due 10/15/39 | 700,000 | 623,981 |
4.00%, due 10/15/42 | 475,000 | 404,760 |
Series A | | |
5.00%, due 10/15/28 | 460,000 | 468,629 |
5.50%, due 10/15/33 | 1,000,000 | 1,084,168 |
| | 26,377,370 |
Virginia 1.7% |
Chesapeake Bay Bridge & Tunnel District, First Tier General Resolution, Revenue Bonds, First Tier | | |
Insured: AGM | | |
5.00%, due 7/1/41 | 1,000,000 | 1,019,681 |
Chesapeake Redevelopment & Housing Authority, ENV-Mill Creek LP, Revenue Bonds | | |
Insured: FHA 221(D4) | | |
5.00%, due 6/1/26 (a) | 1,001,000 | 1,007,902 |
City of Harrisonburg, Unlimited General Obligation | | |
Series A, Insured: State Aid Withholding | | |
1.75%, due 7/15/35 | 3,000,000 | 2,284,164 |
City of Richmond, Public Utility, Revenue Bonds | | |
Series A | | |
5.00%, due 1/15/33 | 1,720,000 | 1,767,759 |
County of Fairfax, Unlimited General Obligation | | |
Series A, Insured: State Aid Withholding | | |
4.00%, due 10/1/28 | 1,040,000 | 1,049,798 |
| Principal Amount | Value |
|
Virginia (continued) |
Isle Wight County Industrial Development Authority, Riverside Healthcare Association Obligated Group, Revenue Bonds | | |
Insured: AGM | | |
5.25%, due 7/1/43 | $ 950,000 | $ 1,037,213 |
Insured: AGM | | |
5.25%, due 7/1/48 | 1,500,000 | 1,613,277 |
James City County Economic Development Authority, Blaine Landing Phase II LP, Revenue Bonds | | |
Insured: FHA 221(D4) | | |
5.00%, due 2/1/26 (a) | 1,000,000 | 1,002,818 |
Virginia Commonwealth Transportation Board, Revenue Bonds | | |
4.00%, due 5/15/36 | 1,800,000 | 1,799,576 |
4.00%, due 5/15/39 | 1,300,000 | 1,299,693 |
Virginia Port Authority, Revenue Bonds | | |
Series B | | |
5.00%, due 7/1/41 (c) | 500,000 | 502,434 |
Virginia Small Business Financing Authority, 95 Express Lanes LLC, Revenue Bonds, Senior Lien | | |
5.00%, due 7/1/37 (c) | 1,000,000 | 1,047,478 |
Williamsburg Economic Development Authority, William & Mary Project, Revenue Bonds | | |
Series A, Insured: AGM | | |
4.00%, due 7/1/42 | 1,000,000 | 968,296 |
Wise County Industrial Development Authority, Virginia Electric and Power Co. Project, Revenue Bonds | | |
Series A | | |
0.75%, due 10/1/40 (a) | 1,500,000 | 1,403,062 |
| | 17,803,151 |
Washington 2.2% |
County of King, Sewer, Revenue Bonds, Junior Lien | | |
Series A | | |
4.00%, due 1/1/40 | 655,000 | 648,361 |
County of King, Sewer, Revenue Bonds | | |
Series A, Insured: AGM | | |
5.00%, due 1/1/47 | 7,490,000 | 7,500,934 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
37
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Washington (continued) |
Franklin County School District No. 1, Pasco, Unlimited General Obligation | | |
Insured: School Bond Guaranty | | |
5.50%, due 12/1/40 | $ 2,000,000 | $ 2,277,227 |
Port of Seattle, Revenue Bonds | | |
Series A | | |
5.00%, due 4/1/31 | 1,000,000 | 1,004,077 |
Port of Tacoma, Revenue Bonds | | |
Series B | | |
5.00%, due 12/1/43 (c) | 925,000 | 929,576 |
Skagit County Public Hospital District No. 1, Revenue Bonds | | |
5.50%, due 12/1/38 | 450,000 | 485,926 |
Snohomish County Public Utility District No. 1, Electric System, Revenue Bonds | | |
5.00%, due 12/1/40 | 1,500,000 | 1,511,371 |
Snohomish County School District No. 6, Unlimited General Obligation | | |
Insured: School Bond Guaranty | | |
3.00%, due 12/1/37 | 1,000,000 | 872,684 |
State of Washington, Motor Vehicle Fuel Tax, Unlimited General Obligation | | |
Series R-2021A | | |
5.00%, due 6/1/38 | 1,000,000 | 1,085,123 |
State of Washington, Various Purpose, Unlimited General Obligation | | |
Series D | | |
5.00%, due 2/1/40 | 5,000,000 | 5,143,794 |
Series A | | |
5.00%, due 8/1/42 | 655,000 | 695,410 |
Washington State Convention Center Public Facilities District, Lodging Tax, Revenue Bonds | | |
Series B, Insured: AGM-CR | | |
4.00%, due 7/1/36 | 1,000,000 | 1,005,559 |
Washington State Housing Finance Commission, Eliseo Project, Revenue Bonds | | |
Series B-2 | | |
2.125%, due 7/1/27 (b) | 150,000 | 137,973 |
| | 23,298,015 |
| Principal Amount | Value |
|
West Virginia 0.4% |
West Virginia Economic Development Authority, Appalachian Power Co., Revenue Bonds | | |
Series A | | |
3.375%, due 3/1/40 (a) | $ 1,000,000 | $ 986,160 |
West Virginia Hospital Finance Authority, Charleston Area Medical Center, Inc. Obligated Group, Revenue Bonds | | |
Series A | | |
5.00%, due 9/1/39 | 1,125,000 | 1,135,487 |
West Virginia Hospital Finance Authority, Vandalia Health, Inc., Revenue Bonds | | |
Series B, Insured: AGM | | |
5.125%, due 9/1/42 | 1,250,000 | 1,353,285 |
West Virginia Housing Development Fund, Revenue Bonds | | |
Series A | | |
3.65%, due 11/1/33 | 1,095,000 | 1,059,112 |
| | 4,534,044 |
Wisconsin 2.1% |
Hudson School District, Unlimited General Obligation | | |
2.25%, due 3/1/27 | 500,000 | 473,809 |
Public Finance Authority, Roseman University of Health Sciences, Revenue Bonds | | |
4.00%, due 4/1/32 (b) | 1,255,000 | 1,233,236 |
5.875%, due 4/1/45 | 2,000,000 | 2,018,724 |
Public Finance Authority, WFCS Holdings LLC, Revenue Bonds | | |
Series A-1 | | |
4.50%, due 1/1/35 (b) | 2,330,000 | 2,204,934 |
Public Finance Authority, Ultimate Medical Academy Project, Revenue Bonds (b) | | |
Series A | | |
5.00%, due 10/1/25 | 555,000 | 556,778 |
Series A | | |
5.00%, due 10/1/28 | 335,000 | 342,836 |
Series A | | |
5.00%, due 10/1/34 | 250,000 | 256,058 |
Public Finance Authority, University of Kansas, Revenue Bonds | | |
5.00%, due 3/1/41 | 3,400,000 | 3,444,352 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
38 | MainStay MacKay Strategic Municipal Allocation Fund |
| Principal Amount | Value |
Long-Term Municipal Bonds (continued) |
Wisconsin (continued) |
Wisconsin Health & Educational Facilities Authority, Milwaukee Science Education Consortium, Inc. (The), Revenue Bonds | | |
Series A | | |
4.50%, due 3/15/33 | $ 400,000 | $ 397,436 |
Wisconsin Health & Educational Facilities Authority, Milwaukee Regional Medical Center (The), Revenue Bonds | | |
5.00%, due 4/1/37 | 1,150,000 | 1,196,784 |
Wisconsin Housing & Economic Development Authority, Revenue Bonds | | |
Series A | | |
3.00%, due 3/1/52 | 3,735,000 | 3,584,010 |
Wisconsin Housing & Economic Development Authority, Home Ownership, Revenue Bonds | | |
Series A, Insured: GNMA / FNMA / FHLMC | | |
3.625%, due 3/1/34 | 1,500,000 | 1,464,684 |
Series A, Insured: GNMA / FNMA / FHLMC | | |
6.00%, due 9/1/54 | 1,000,000 | 1,078,562 |
Wisconsin Housing & Economic Development Authority, New Hampton Apartment LLC, Revenue Bonds | | |
Series A, Insured: HUD Sector 8 | | |
5.00%, due 12/1/27 (a) | 3,500,000 | 3,567,282 |
| | 21,819,485 |
Wyoming 0.3% |
Sweetwater County 2023 Specific Purpose Tax Joint Powers Board, Revenue Bonds | | |
Insured: AGM-CR | | |
5.00%, due 6/15/28 | 3,000,000 | 3,199,607 |
Total Long-Term Municipal Bonds (Cost $1,024,651,966) | | 1,031,737,510 |
| Principal Amount | | Value |
Short-Term Municipal Notes 2.9% |
Arizona 0.2% |
Arizona Industrial Development Authority, Phoenix Children's Hospital, Revenue Bonds | | | |
Series A | | | |
3.70%, due 2/1/48 (e) | $ 1,700,000 | | $ 1,700,000 |
California 1.7% |
Eastern Municipal Water District, Revenue Bonds | | | |
Series A | | | |
3.60%, due 7/1/46 (e) | 4,000,000 | | 4,000,000 |
Los Angeles Department of Water & Power, Power System, Revenue Bonds | | | |
Series C-1 | | | |
3.85%, due 7/1/57 (e) | 4,250,000 | | 4,250,000 |
Southern California Public Power Authority, Revenue Bonds | | | |
Series A | | | |
3.75%, due 7/1/35 (e) | 10,000,000 | | 10,000,000 |
| | | 18,250,000 |
Connecticut 1.0% |
Connecticut State Health & Educational Facilities Authority, Yale University, Revenue Bonds | | | |
Series A | | | |
3.50%, due 7/1/42 (e) | 11,000,000 | | 11,000,000 |
Total Short-Term Municipal Notes (Cost $30,950,000) | | | 30,950,000 |
Total Municipal Bonds (Cost $1,055,601,966) | | | 1,062,687,510 |
|
Long-Term Bonds 0.2% |
Corporate Bond 0.2% |
Healthcare-Services 0.2% |
Dignity Health | | | |
3.812%, due 11/1/24 | 2,000,000 | | 1,971,641 |
Total Long-Term Bonds (Cost $1,979,615) | | | 1,971,641 |
Total Investments (Cost $1,057,581,581) | 100.3% | | 1,064,659,151 |
Other Assets, Less Liabilities | (0.3) | | (3,039,311) |
Net Assets | 100.0% | | $ 1,061,619,840 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
39
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | Coupon rate may change based on changes of the underlying collateral or prepayments of principal. Rate shown was the rate in effect as of April 30, 2024. |
(b) | May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. |
(c) | Interest on these securities was subject to alternative minimum tax . |
(d) | Delayed delivery security. |
(e) | Variable-rate demand notes (VRDNs)—Provide the right to sell the security at face value on either that day or within the rate-reset period. VRDNs will normally trade as if the maturity is the earlier put date, even though stated maturity is longer. The interest rate is reset on the put date at a stipulated daily, weekly, monthly, quarterly, or other specified time interval to reflect current market conditions. These securities do not indicate a reference rate and spread in their description. The maturity date shown is the final maturity. |
Abbreviation(s): |
AGM—Assured Guaranty Municipal Corp. |
BAM—Build America Mutual Assurance Co. |
CR—Custodial Receipts |
FGIC—Financial Guaranty Insurance Company |
FHA—Federal Housing Administration |
FHLMC—Federal Home Loan Mortgage Corp. |
FNMA—Federal National Mortgage Association |
GNMA—Government National Mortgage Association |
HUD—Housing and Urban Development |
MTA—Metropolitan Transportation Authority |
NATL-RE—National Public Finance Guarantee Corp. |
PSF-GTD—Permanent School Fund Guaranteed |
Q-SBLF—Qualified School Board Loan Fund |
SD CRED PROG—School District Credit Enhancement Program |
UT CSCE—Utah Charter School Credit Enhancement Program |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Municipal Bonds | | | | | | | |
Long-Term Municipal Bonds | $ — | | $ 1,031,737,510 | | $ — | | $ 1,031,737,510 |
Short-Term Municipal Notes | — | | 30,950,000 | | — | | 30,950,000 |
Total Municipal Bonds | — | | 1,062,687,510 | | — | | 1,062,687,510 |
Long-Term Bonds | | | | | | | |
Corporate Bond | — | | 1,971,641 | | — | | 1,971,641 |
Total Investments in Securities | $ — | | $ 1,064,659,151 | | $ — | | $ 1,064,659,151 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
40 | MainStay MacKay Strategic Municipal Allocation Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $1,057,581,581) | $1,064,659,151 |
Cash | 2,454,749 |
Receivables: | |
Interest | 13,891,877 |
Fund shares sold | 4,051,864 |
Other assets | 171,694 |
Total assets | 1,085,229,335 |
Liabilities |
Payables: | |
Investment securities purchased | 21,264,923 |
Fund shares redeemed | 1,477,540 |
Manager (See Note 3) | 344,030 |
Custodian | 36,020 |
NYLIFE Distributors (See Note 3) | 30,284 |
Professional fees | 19,259 |
Transfer agent (See Note 3) | 15,217 |
Accrued expenses | 1,350 |
Distributions payable | 420,872 |
Total liabilities | 23,609,495 |
Net assets | $1,061,619,840 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 112,848 |
Additional paid-in-capital | 1,064,452,247 |
| 1,064,565,095 |
Total distributable earnings (loss) | (2,945,255) |
Net assets | $1,061,619,840 |
Class A | |
Net assets applicable to outstanding shares | $128,035,147 |
Shares of beneficial interest outstanding | 13,590,950 |
Net asset value per share outstanding | $ 9.42 |
Maximum sales charge (3.00% of offering price) | 0.29 |
Maximum offering price per share outstanding | $ 9.71 |
Investor Class | |
Net assets applicable to outstanding shares | $ 51,265 |
Shares of beneficial interest outstanding | 5,449 |
Net asset value per share outstanding | $ 9.41 |
Maximum sales charge (2.50% of offering price) | 0.24 |
Maximum offering price per share outstanding | $ 9.65 |
Class C | |
Net assets applicable to outstanding shares | $ 9,401,341 |
Shares of beneficial interest outstanding | 999,723 |
Net asset value and offering price per share outstanding | $ 9.40 |
Class C2 | |
Net assets applicable to outstanding shares | $ 1,392,542 |
Shares of beneficial interest outstanding | 148,010 |
Net asset value and offering price per share outstanding | $ 9.41 |
Class I | |
Net assets applicable to outstanding shares | $922,712,434 |
Shares of beneficial interest outstanding | 98,100,502 |
Net asset value and offering price per share outstanding | $ 9.41 |
Class R6 | |
Net assets applicable to outstanding shares | $ 27,111 |
Shares of beneficial interest outstanding | 2,883 |
Net asset value and offering price per share outstanding | $ 9.40 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
41
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Interest | $18,061,415 |
Expenses | |
Manager (See Note 3) | 1,803,103 |
Transfer agent (See Note 3) | 181,632 |
Distribution/Service—Class A (See Note 3) | 130,639 |
Distribution/Service—Investor Class (See Note 3) | 63 |
Distribution/Service—Class C (See Note 3) | 20,730 |
Distribution/Service—Class C2 (See Note 3) | 3,464 |
Registration | 112,448 |
Professional fees | 49,496 |
Custodian | 39,189 |
Shareholder communication | 9,416 |
Trustees | 8,238 |
Miscellaneous | 9,914 |
Total expenses | 2,368,332 |
Net investment income (loss) | 15,693,083 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | (341,672) |
Futures transactions | 140,805 |
Net realized gain (loss) | (200,867) |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 23,399,182 |
Futures contracts | (559,324) |
Net change in unrealized appreciation (depreciation) | 22,839,858 |
Net realized and unrealized gain (loss) | 22,638,991 |
Net increase (decrease) in net assets resulting from operations | $38,332,074 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
42 | MainStay MacKay Strategic Municipal Allocation Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited), the period May 1, 2023 through October 31, 2023 and year ended April 30, 2023
| Six months ended April 30, 2024 | Period May 1, 2023 through October 31, 2023(a) | Year Ended April 30, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | | |
Net investment income (loss) | $ 15,693,083 | $ 7,079,941 | $ 6,053,695 |
Net realized gain (loss) | (200,867) | (269,271) | (5,874,563) |
Net change in unrealized appreciation (depreciation) | 22,839,858 | (19,212,490) | 8,033,830 |
Net increase (decrease) in net assets resulting from operations | 38,332,074 | (12,401,820) | 8,212,962 |
Distributions to shareholders: |
Class A | (1,840,069) | (859,391) | (630,063) |
Investor Class | (882) | (898) | (3,510) |
Class C | (134,603) | (63,520) | (50,794) |
Class C2 | (16,475) | (3,615) | (1,515) |
Class I | (14,879,403) | (6,958,698) | (6,462,197) |
Class R6 | (514) | (495) | (842) |
Total distributions to shareholders | (16,871,946) | (7,886,617) | (7,148,921) |
Capital share transactions: | | | |
Net proceeds from sales of shares | 627,861,959 | 282,223,468 | 434,866,901 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 14,959,526 | 7,686,850 | 7,136,822 |
Cost of shares redeemed | (154,986,622) | (74,377,473) | (183,989,524) |
Increase (decrease) in net assets derived from capital share transactions | 487,834,863 | 215,532,845 | 258,014,199 |
Net increase (decrease) in net assets | 509,294,991 | 195,244,408 | 259,078,240 |
| Six months ended April 30, 2024 | Period May 1, 2023 through October 31, 2023(a) | Year Ended April 30, 2023 |
Net Assets |
Beginning of period | $ 552,324,849 | $357,080,441 | $ 98,002,201 |
End of period | $1,061,619,840 | $552,324,849 | $ 357,080,441 |
(a) | The Fund changed its fiscal year end from April 30 to October 31. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
43
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | May 1, 2023 through October 31, | | Year Ended April 30, | | June 28, 2019^ through April 30, |
Class A | 2024 * | | 2023 # | | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 9.06 | | $ 9.47 | | $ 9.50 | | $ 10.43 | | $ 9.65 | | $ 10.00 |
Net investment income (loss) | 0.15(a) | | 0.15(a) | | 0.26(a) | | 0.12(a) | | 0.15(a) | | 0.14 |
Net realized and unrealized gain (loss) | 0.38 | | (0.40) | | (0.01) | | (0.78) | | 0.82 | | (0.29) |
Total from investment operations | 0.53 | | (0.25) | | 0.25 | | (0.66) | | 0.97 | | (0.15) |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.17) | | (0.16) | | (0.26) | | (0.17) | | (0.19) | | (0.14) |
From net realized gain on investments | — | | — | | (0.02) | | (0.10) | | — | | (0.06) |
Total distributions | (0.17) | | (0.16) | | (0.28) | | (0.27) | | (0.19) | | (0.20) |
Net asset value at end of period | $ 9.42 | | $ 9.06 | | $ 9.47 | | $ 9.50 | | $ 10.43 | | $ 9.65 |
Total investment return (b) | 5.81% | | (2.63)% | | 2.73% | | (6.54)% | | 10.02% | | (1.44)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.26%†† | | 3.09%†† | | 2.78% | | 1.22% | | 1.47% | | 1.39%†† |
Net expenses | 0.74%†† | | 0.77%†† | | 0.77% | | 0.77% | | 0.72% | | 0.77%†† |
Expenses (before waiver/reimbursement) | 0.74%†† | | 0.81%†† | | 0.84% | | 0.97% | | 0.98% | | 1.12%†† |
Portfolio turnover rate (c) | 24% | | 12% | | 81% | | 32% | | 66% | | 108% |
Net assets at end of period (in 000's) | $ 128,035 | | $ 63,006 | | $ 43,203 | | $ 5,246 | | $ 454 | | $ 136 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 to October 31. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
44 | MainStay MacKay Strategic Municipal Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | May 1, 2023 through October 31, 2023# | | Year Ended April 30, | | June 28, 2019^ through April 30, |
Investor Class | 2024 * | | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 9.05 | | $ 9.46 | | $ 9.49 | | $ 10.41 | | $ 9.65 | | $ 10.00 |
Net investment income (loss) | 0.15(a) | | 0.14(a) | | 0.21(a) | | 0.11(a) | | 0.13(a) | | 0.14 |
Net realized and unrealized gain (loss) | 0.37 | | (0.39) | | 0.03 | | (0.79) | | 0.80 | | (0.29) |
Total from investment operations | 0.52 | | (0.25) | | 0.24 | | (0.68) | | 0.93 | | (0.15) |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.16) | | (0.16) | | (0.25) | | (0.14) | | (0.17) | | (0.14) |
From net realized gain on investments | — | | — | | (0.02) | | (0.10) | | — | | (0.06) |
Total distributions | (0.16) | | (0.16) | | (0.27) | | (0.24) | | (0.17) | | (0.20) |
Net asset value at end of period | $ 9.41 | | $ 9.05 | | $ 9.46 | | $ 9.49 | | $ 10.41 | | $ 9.65 |
Total investment return (b) | 5.79% | | (2.69)% | | 2.58% | | (6.69)% | | 9.65% | | (1.56)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.24%†† | | 2.98%†† | | 2.23% | | 1.04% | | 1.23% | | 1.30%†† |
Net expenses | 0.78%†† | | 0.89%†† | | 0.92% | | 0.97% | | 0.98% | | 0.79%†† |
Expenses (before waiver/reimbursement) | 0.78%†† | | 0.93%†† | | 0.99% | | 1.17% | | 1.24% | | 1.14%†† |
Portfolio turnover rate (c) | 24% | | 12% | | 81% | | 32% | | 66% | | 108% |
Net assets at end of period (in 000's) | $ 51 | | $ 48 | | $ 100 | | $ 46 | | $ 33 | | $ 34 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 to October 31. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
45
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | May 1, 2023 through October 31, | | Year Ended April 30, | | June 28, 2019^ through April 30, |
Class C | 2024 * | | 2023 # | | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 9.04 | | $ 9.45 | | $ 9.48 | | $ 10.42 | | $ 9.65 | | $ 10.00 |
Net investment income (loss) | 0.14(a) | | 0.13(a) | | 0.22(a) | | 0.08(a) | | 0.10(a) | | 0.12 |
Net realized and unrealized gain (loss) | 0.37 | | (0.39) | | (0.01) | | (0.80) | | 0.81 | | (0.29) |
Total from investment operations | 0.51 | | (0.26) | | 0.21 | | (0.72) | | 0.91 | | (0.17) |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.15) | | (0.15) | | (0.22) | | (0.12) | | (0.14) | | (0.12) |
From net realized gain on investments | — | | — | | (0.02) | | (0.10) | | — | | (0.06) |
Total distributions | (0.15) | | (0.15) | | (0.24) | | (0.22) | | (0.14) | | (0.18) |
Net asset value at end of period | $ 9.40 | | $ 9.04 | | $ 9.45 | | $ 9.48 | | $ 10.42 | | $ 9.65 |
Total investment return (b) | 5.67% | | (2.82)% | | 2.31% | | (7.12)% | | 9.49% | | (1.76)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 2.98%†† | | 2.74%†† | | 2.34% | | 0.76% | | 0.97% | | 1.11%†† |
Net expenses | 1.03%†† | | 1.13%†† | | 1.18% | | 1.22% | | 1.23% | | 1.03%†† |
Expenses (before waiver/reimbursement) | 1.03%†† | | 1.17%†† | | 1.25% | | 1.42% | | 1.49% | | 1.38%†† |
Portfolio turnover rate (c) | 24% | | 12% | | 81% | | 32% | | 66% | | 108% |
Net assets at end of period (in 000's) | $ 9,401 | | $ 5,072 | | $ 3,291 | | $ 558 | | $ 113 | | $ 79 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 to October 31. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
46 | MainStay MacKay Strategic Municipal Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | May 1 2023 through October 31, | | December 13, 2022^ through April 30, 2023 |
Class C2 | 2024 * | | 2023 # | |
Net asset value at beginning of period | $ 9.04 | | $ 9.45 | | $ 9.43** |
Net investment income (loss) (a) | 0.13 | | 0.12 | | 0.09 |
Net realized and unrealized gain (loss) | 0.39 | | (0.39) | | 0.03 |
Total from investment operations | 0.52 | | (0.27) | | 0.12 |
Less distributions: | | | | | |
From net investment income | (0.15) | | (0.14) | | (0.10) |
Net asset value at end of period | $ 9.41 | | $ 9.04 | | $ 9.45 |
Total investment return (b) | 5.70% | | (2.89)% | | 1.29% |
Ratios (to average net assets)/Supplemental Data: | | | | | |
Net investment income (loss)†† | 2.83% | | 2.59% | | 2.49% |
Net expenses†† | 1.18% | | 1.28% | | 1.34% |
Expenses (before waiver/reimbursement)†† | 1.18% | | 1.32% | | 1.41% |
Portfolio turnover rate (c) | 24% | | 12% | | 81% |
Net assets at end of period (in 000's) | $ 1,393 | | $ 301 | | $ 214 |
* | Unaudited. |
** | Based on the net asset value of Class C as of December 13, 2022. |
# | The Fund changed its fiscal year end from April 30 to October 31. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
47
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | May 1, 2023 through October 31, | | Year Ended April 30, | | June 28, 2019^ through April 30, |
Class I | 2024 * | | 2023 # | | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 9.04 | | $ 9.45 | | $ 9.48 | | $ 10.42 | | $ 9.65 | | $ 10.00 |
Net investment income (loss) | 0.17(a) | | 0.16(a) | | 0.27(a) | | 0.15(a) | | 0.18(a) | | 0.16 |
Net realized and unrealized gain (loss) | 0.38 | | (0.39) | | 0.00‡ | | (0.80) | | 0.81 | | (0.29) |
Total from investment operations | 0.55 | | (0.23) | | 0.27 | | (0.65) | | 0.99 | | (0.13) |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.18) | | (0.18) | | (0.28) | | (0.19) | | (0.22) | | (0.16) |
From net realized gain on investments | — | | — | | (0.02) | | (0.10) | | — | | (0.06) |
Total distributions | (0.18) | | (0.18) | | (0.30) | | (0.29) | | (0.22) | | (0.22) |
Net asset value at end of period | $ 9.41 | | $ 9.04 | | $ 9.45 | | $ 9.48 | | $ 10.42 | | $ 9.65 |
Total investment return (b) | 6.06% | | (2.52)% | | 2.99% | | (6.43)% | | 10.28% | | (1.35)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.52%†† | | 3.34%†† | | 2.90% | | 1.49% | | 1.72% | | 1.57%†† |
Net expenses | 0.49%†† | | 0.52%†† | | 0.52% | | 0.51% | | 0.50% | | 0.53%†† |
Expenses (before waiver/reimbursement) | 0.49%†† | | 0.56%†† | | 0.59% | | 0.71% | | 0.76% | | 0.88%†† |
Portfolio turnover rate (c) | 24% | | 12% | | 81% | | 32% | | 66% | | 108% |
Net assets at end of period (in 000's) | $ 922,712 | | $ 483,873 | | $ 310,246 | | $ 92,126 | | $ 61,183 | | $ 51,059 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 to October 31. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
48 | MainStay MacKay Strategic Municipal Allocation Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | May 1, 2023 through October 31, | | Year Ended April 30, | | June 28, 2019^ through April 30, |
Class R6 | 2024 * | | 2023 # | | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 9.04 | | $ 9.45 | | $ 9.48 | | $ 10.42 | | $ 9.65 | | $ 10.00 |
Net investment income (loss) | 0.17(a) | | 0.16(a) | | 0.26(a) | | 0.16(a) | | 0.18(a) | | 0.17 |
Net realized and unrealized gain (loss) | 0.37 | | (0.39) | | 0.02 | | (0.80) | | 0.81 | | (0.29) |
Total from investment operations | 0.54 | | (0.23) | | 0.28 | | (0.64) | | 0.99 | | (0.12) |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.18) | | (0.18) | | (0.29) | | (0.20) | | (0.22) | | (0.17) |
From net realized gain on investments | — | | — | | (0.02) | | (0.10) | | — | | (0.06) |
Total distributions | (0.18) | | (0.18) | | (0.31) | | (0.30) | | (0.22) | | (0.23) |
Net asset value at end of period | $ 9.40 | | $ 9.04 | | $ 9.45 | | $ 9.48 | | $ 10.42 | | $ 9.65 |
Total investment return (b) | 5.97% | | (2.50)% | | 3.01% | | (6.41)% | | 10.28% | | (1.32)% |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 3.57%†† | | 3.38%†† | | 2.75% | | 1.51% | | 1.72% | | 1.60%†† |
Net expenses | 0.45%†† | | 0.50%†† | | 0.50% | | 0.50% | | 0.50% | | 0.50%†† |
Expenses (before waiver/reimbursement) | 0.45%†† | | 0.51%†† | | 0.55% | | 0.70% | | 0.77% | | 0.86%†† |
Portfolio turnover rate (c) | 24% | | 12% | | 81% | | 32% | | 66% | | 108% |
Net assets at end of period (in 000's) | $ 27 | | $ 26 | | $ 26 | | $ 25 | | $ 27 | | $ 25 |
* | Unaudited. |
# | The Fund changed its fiscal year end from April 30 to October 31. |
^ | Inception date. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
49
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MacKay Strategic Municipal Allocation Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | June 28, 2019 |
Investor Class | June 28, 2019 |
Class C | June 28, 2019 |
Class C2 | December 13, 2022 |
Class I | June 28, 2019 |
Class R6 | June 28, 2019 |
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. A contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions of Class A and Investor Class shares made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C and Class C2 shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C and Class C2 shares. Class I and Class R6 shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C and Class C2 shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares based on a shareholder’s account balance as described in the Fund’s prospectus. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C and Class C2 shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek current income exempt from regular federal income tax.
Effective at the close of business on May 1, 2023, the Fund changed its fiscal and tax year end from April 30 to October 31.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
50 | MainStay MacKay Strategic Municipal Allocation Fund |
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades |
• Broker/dealer quotes | • Issuer spreads |
• Two-sided markets | • Benchmark securities |
• Bids/offers | • Reference data (corporate actions or material event notices) |
• Industry and economic events | • Comparable bonds |
• Monthly payment information | |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Municipal debt securities are valued at the evaluated mean prices supplied by a pricing agent or broker selected by the Valuation Designee, in consultation with the Subadvisor. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent's good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants' assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the Valuation Designee, in consultation with the Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Municipal debt securities purchased on a delayed delivery basis are
Notes to Financial Statements (Unaudited) (continued)
marked to market daily until settlement at the forward settlement date. Municipal debt securities are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 dividends from net investment income, if any, daily and intends to pay them at least monthly and declares and pays distributions from net realized capital gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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 temporary cash investments that mature in 60 days or less at the time of purchase, for the Fund are accreted and amortized, respectively, on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(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/or 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, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 risks such as market price risk, leverage risk, liquidity risk, counterparty risk, operational risk, legal risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation 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 or futures commission merchant 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. There are several risks associated with the use of futures
52 | MainStay MacKay Strategic Municipal Allocation Fund |
contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. 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 the entire margin owed to the Fund, potentially resulting in a loss. The Fund may invest in futures contracts to seek enhanced returns or to reduce the risk of loss by hedging certain of its holdings. The Fund's investment in futures contracts and other derivatives may increase the volatility of the Fund's NAVs and may result in a loss to the Fund.
(H) Delayed Delivery Transactions. The Fund may purchase or sell securities on a delayed delivery basis. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Fund will designate liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell delayed delivery securities before they are delivered, which may result in a realized gain or loss. When the Fund has sold a security it owns on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.
(I) Municipal Bond Risk. The Fund may invest more heavily in municipal bonds from certain cities, states, territories or regions than others, which may increase the Fund’s exposure to losses resulting from economic, political, regulatory occurrences, or declines in tax revenue impacting these particular cities, states, territories or regions. In addition, many state and municipal governments that issue securities are under significant economic and financial stress and may not be able to satisfy their obligations, and these events may be made worse due to current economic challenges. The Fund may invest a substantial amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects, such as tobacco settlement bonds. If the Fund concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and this may have a significant impact on the Fund’s investment performance.
Certain of the issuers in which the Fund may invest have recently experienced, or may experience, significant financial difficulties and repeated credit rating downgrades. On May 3, 2017, the Commonwealth of Puerto Rico (the "Commonwealth") began proceedings pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) to seek bankruptcy-type protections from approximately $74 billion in debt and approximately $48 billion in unfunded pension obligations. In addition, the current economic environment and the resulting pressure on Puerto Rico’s budget have further contributed to its financial challenges. Following the outbreak of COVID-19, the federal government passed certain relief packages, including the Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan, which included an aggregate of more than $7 billion in disaster relief funds for the U.S. territories, including Puerto Rico. However, there can be no assurances that the federal funds allocated to the Commonwealth will be sufficient to address the long-term economic challenges that arose from COVID-19.
As of October 31, 2023, Puerto Rico Electric Power Authority ("PREPA") has remained in Title III Bankruptcy for over 6 years. A significant number of net revenue bond creditors, the Oversight Board, and the Commonwealth have been unable to reach a consensual resolution on PREPA’s debt restructuring following the termination of the previous 2019 PREPA Restructuring Support Agreement by the Commonwealth of Puerto Rico in March of 2022. On December 16, 2022, the Oversight Board filed a proposed plan of adjustment to restructure more than $10 billion of debt and other claims against PREPA. The plan of adjustment, amended in March, proposed to cut PREPA’s unsustainable debt to approximately $5.68 billion.
Bankruptcy litigation has ensued between the Oversight Board and a group of net revenue bond creditors over the security provisions of PREPA’s $8.3 billion of net revenue bonds resulting in a ruling in March that PREPA’s net revenue bonds are unsecured.
In June of 2023, a claims estimation hearing resulted in a ruling that PREPA’s now asserted unsecured net revenue bond claim was valued at approximately 2.383 billion, which is only 28.3% of the full prepetition claim asserted by net revenue bond holders. Due to the lower claims estimation ruling, at the end of August 2023 the Oversight Board filed a new proposed plan of adjustment to reflect the March lien ruling and June estimation hearing with lower recovery amounts afforded to net revenue bond holders. In conjunction with the new proposed plan of adjustment, a subset of the original litigating PREPA creditors entered into Planned Support Agreements (”PSAs”) supporting the new proposed plan of adjustment.
However, following the new proposed plan of adjustment, a significant amount of creditors not previously involved in the PREPA bankruptcy have objected to the revised plan of adjustment, including the MainStay MacKay Municipal Bond Funds.
Objecting creditors are appealing several rulings, including the March net revenue bond lien ruling, the June net revenue bond claims estimation ruling, and the November disclosure statement approval ruling that
Notes to Financial Statements (Unaudited) (continued)
provides for a plan with disparate recoveries for the same creditors. Objecting creditors believe the PREPA bankruptcy plan of adjustment is unconfirmable and these rulings will be overturned on appeal, but there is no certainty that objecting creditors will be successful in appealing these rulings, or if overturned, these creditors will receive the relief sought. The proposed PREPA August plan of adjustment provides 3.5% of cash recovery for objecting creditors to the plan as opposed to 12.5% of cash recovery for consenting creditors who have not previously settled.
Bankruptcy plan confirmation hearings were held in March of 2024 though at the end of May 2024 Judge Swain has not yet ruled on the confirmability of the plan. Furthermore, as of the end of May 2024, the First Circuit has yet to rule on the appeal of the lien and recourse challenges brought by objecting creditors. It is unclear what impact if any the 1st Circuit rulings will have on plan confirmation and/or whether any appellate rulings will occur prior to the approval of any plan confirmation by Judge Swain.
The Fund’s vulnerability to potential losses associated with such developments may be reduced through investing in municipal securities that feature credit enhancements (such as bond insurance). The bond insurance provider pays both principal and interest when due to the bond holder. The magnitude of Puerto Rico’s debt restructuring or other adverse economic developments could pose significant strains on the ability of municipal securities insurers to meet all future claims. As of April 30, 2024, the Fund's total Puerto Rico investments is 1.7% of total investments, with none of that amount insured.
(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 that may 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. The Manager believes 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 related to 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.
The Fund entered into futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values.
The effect of derivative instruments on the Statement of Operations for the period May 1, 2023 to April 30, 2024:
Net Realized Gain (Loss) from: | Interest Rate Contracts Risk | Total |
Futures Transactions | $140,805 | $140,805 |
Total Net Realized Gain (Loss) | $140,805 | $140,805 |
Net Change in Unrealized Appreciation (Depreciation) | Interest Rate Contracts Risk | Total |
Futures Contracts | $(559,324) | $(559,324) |
Total Net Change in Unrealized Appreciation (Depreciation) | $(559,324) | $(559,324) |
Average Notional Amount | Total |
Futures Contracts Short (a) | $(10,216,406) |
(a) | Position was open one month during the reporting period. |
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 Fund's Manager, pursuant to an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC ("MacKay Shields" or the "Subadvisor"), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.40% of the Fund's average daily net assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of
54 | MainStay MacKay Strategic Municipal Allocation Fund |
portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of daily net assets: Class A, 0.77% and Class R6, 0.50%. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points of the Class A shares waiver/reimbursement, to Investor Class, Class C, Class C2 and Class I shares. This agreement will remain in effect until February 28, 2027, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $1,803,103 and paid the Subadvisor fees in the amount of $901,551.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly fee from the Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% 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, for a total 12b-1 fee of 0.50%. Pursuant to the Class C2 Plan, Class C2 shares pay the Distributor a monthly distribution fee at an annual rate of 0.40% of the average daily net assets of the Class C2 shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C2 shares, for a total 12b-1 fee of 0.65%. Class I and Class R6 shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $2,774 and $4, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $189 and $533, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2025, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 20,509 | $— |
Investor Class | 20 | — |
Class C | 3,225 | — |
Class C2 | 430 | — |
Class I | 157,448 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
Notes to Financial Statements (Unaudited) (continued)
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class A | $26,730 | 0.0%‡ |
Investor Class | 26,513 | 51.7 |
Class C | 26,168 | 0.3 |
Class C2 | 25,924 | 1.9 |
Class R6 | 27,013 | 99.6 |
‡ | Less than one-tenth of a percent. |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $1,058,988,976 | $11,856,007 | $(6,185,832) | $5,670,175 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $6,693,429, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $4,401 | $2,293 |
During the period from May 1, 2023 through October 31, 2023(a) and the year ended April 30, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 (a) | 2023 |
Distributions paid from: | | |
Ordinary Income | $ 346,234 | $ 288,952 |
Long-Term Capital Gains | — | 365,818 |
Exempt Interest Dividends | 7,540,383 | 6,494,151 |
Total | $7,886,617 | $7,148,921 |
(a) | The Fund changed its fiscal year end from April 30 to October 31. |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $727,969 and $209,597, respectively.
56 | MainStay MacKay Strategic Municipal Allocation Fund |
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024, the period May 1, 2023 through October 31, 2023, and year ended April 30, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 8,631,616 | $ 81,983,668 |
Shares issued to shareholders in reinvestment of distributions | 165,748 | 1,577,162 |
Shares redeemed | (2,165,971) | (20,543,356) |
Net increase (decrease) in shares outstanding before conversion | 6,631,393 | 63,017,474 |
Shares converted into Class A (See Note 1) | 2,831 | 26,809 |
Net increase (decrease) | 6,634,224 | $ 63,044,283 |
Period ended October 31, 2023:(a) | | |
Shares sold | 3,689,232 | $ 34,256,161 |
Shares issued to shareholders in reinvestment of distributions | 91,415 | 850,727 |
Shares redeemed | (1,386,764) | (12,997,772) |
Net increase (decrease) | 2,393,883 | $ 22,109,116 |
Year ended April 30, 2023: | | |
Shares sold | 4,521,934 | $ 42,589,581 |
Shares issued to shareholders in reinvestment of distributions | 66,760 | 629,178 |
Shares redeemed | (595,824) | (5,610,827) |
Net increase (decrease) in shares outstanding before conversion | 3,992,870 | 37,607,932 |
Shares converted into Class A (See Note 1) | 17,915 | 166,839 |
Net increase (decrease) | 4,010,785 | $ 37,774,771 |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 176 | $ 1,658 |
Shares issued to shareholders in reinvestment of distributions | 93 | 882 |
Shares redeemed | (109) | (1,017) |
Net increase (decrease) | 160 | $ 1,523 |
Period ended October 31, 2023:(a) | | |
Shares sold | 344 | $ 3,218 |
Shares issued to shareholders in reinvestment of distributions | 87 | 807 |
Shares redeemed | (5,663) | (53,311) |
Net increase (decrease) | (5,232) | $ (49,286) |
Year ended April 30, 2023: | | |
Shares sold | 51,856 | $ 492,143 |
Shares issued to shareholders in reinvestment of distributions | 345 | 3,235 |
Shares redeemed | (28,623) | (267,552) |
Net increase (decrease) in shares outstanding before conversion | 23,578 | 227,826 |
Shares converted from Investor Class (See Note 1) | (17,939) | (166,839) |
Net increase (decrease) | 5,639 | $ 60,987 |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 571,380 | $ 5,390,723 |
Shares issued to shareholders in reinvestment of distributions | 11,879 | 112,816 |
Shares redeemed | (141,692) | (1,343,239) |
Net increase (decrease) in shares outstanding before conversion | 441,567 | 4,160,300 |
Shares converted from Class C (See Note 1) | (2,834) | (26,809) |
Net increase (decrease) | 438,733 | $ 4,133,491 |
Period ended October 31, 2023:(a) | | |
Shares sold | 265,102 | $ 2,454,140 |
Shares issued to shareholders in reinvestment of distributions | 6,802 | 63,153 |
Shares redeemed | (59,165) | (548,284) |
Net increase (decrease) | 212,739 | $ 1,969,009 |
Year ended April 30, 2023: | | |
Shares sold | 330,090 | $ 3,098,482 |
Shares issued to shareholders in reinvestment of distributions | 5,401 | 50,790 |
Shares redeemed | (46,116) | (431,464) |
Net increase (decrease) | 289,375 | $ 2,717,808 |
|
Notes to Financial Statements (Unaudited) (continued)
Class C2 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 113,958 | $ 1,080,448 |
Shares issued to shareholders in reinvestment of distributions | 1,733 | 16,475 |
Shares redeemed | (949) | (9,018) |
Net increase (decrease) | 114,742 | $ 1,087,905 |
Period ended October 31, 2023:(a) | | |
Shares sold | 10,564 | $ 97,131 |
Shares issued to shareholders in reinvestment of distributions | 389 | 3,615 |
Shares redeemed | (342) | (3,176) |
Net increase (decrease) | 10,611 | $ 97,570 |
Year ended April 30, 2023:(b) | | |
Shares sold | 22,951 | $ 215,964 |
Shares issued to shareholders in reinvestment of distributions | 160 | 1,515 |
Shares redeemed | (454) | (4,320) |
Net increase (decrease) | 22,657 | $ 213,159 |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 57,329,088 | $ 539,405,462 |
Shares issued to shareholders in reinvestment of distributions | 1,394,719 | 13,251,677 |
Shares redeemed | (14,131,289) | (133,089,992) |
Net increase (decrease) | 44,592,518 | $ 419,567,147 |
Period ended October 31, 2023:(a) | | |
Shares sold | 26,515,142 | $ 245,412,818 |
Shares issued to shareholders in reinvestment of distributions | 728,403 | 6,768,053 |
Shares redeemed | (6,555,020) | (60,774,930) |
Net increase (decrease) | 20,688,525 | $ 191,405,941 |
Year ended April 30, 2023: | | |
Shares sold | 41,397,550 | $ 388,470,731 |
Shares issued to shareholders in reinvestment of distributions | 686,149 | 6,451,262 |
Shares redeemed | (18,977,575) | (177,675,361) |
Net increase (decrease) | 23,106,124 | $ 217,246,632 |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares issued to shareholders in reinvestment of distributions | 54 | $ 514 |
Net increase (decrease) | 54 | $ 514 |
Period ended October 31, 2023:(a) | | |
Shares issued to shareholders in reinvestment of distributions | 54 | $ 495 |
Net increase (decrease) | 54 | $ 495 |
Year ended April 30, 2023: | | |
Shares issued to shareholders in reinvestment of distributions | 89 | $ 842 |
Net increase (decrease) | 89 | $ 842 |
(a) | The Fund changed its fiscal year end from April 30 to October 31. |
(b) | The inception of the class was December 13, 2022. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified other than the following:
At a meeting held on March 4, 2024, the Board approved the creation and offering of a new share class, Class Z, for the Fund. Class Z shares went effective on May 28, 2024, but are currently closed to all investors. Class Z shares are scheduled to open on or about July 19, 2024, to accept shareholders transitioning into the Fund as part of the following proposed merger with Aquila Churchill Tax-Free Fund of Kentucky and Aquila Narragansett Fund.
58 | MainStay MacKay Strategic Municipal Allocation Fund |
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited)
The continuation of the Management Agreement with respect to the MainStay MacKay Strategic Municipal Allocation 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”) with respect to the Fund (together, “Advisory Agreements”) is subject to annual review and approval by the Board of Trustees of MainStay Funds Trust (“Board” of the “Trust”) in accordance with Section 15 of the Investment Company Act of 1940, as amended (“1940 Act”). At its December 6–7, 2023 meeting, the Board, including the Trustees who are not an “interested person” (as such term is defined in the 1940 Act) of the Trust (“Independent Trustees”) voting separately, unanimously approved the continuation of each of the Advisory Agreements for a one-year period.
In reaching the decision to approve the continuation of each of the Advisory Agreements, the Board considered information and materials furnished by New York Life Investments and MacKay in connection with an annual contract review process undertaken by the Board that took place at meetings of the Board and its Contracts Committee from September 2023 through December 2023, including information and materials furnished by New York Life Investments and MacKay in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees, which encompassed a variety of topics, including those summarized below. Information and materials requested by and furnished to the Board for consideration in connection with the contract review process included, among other items, reports on the Fund and “peer funds” prepared by Institutional Shareholder Services Inc. (“ISS”), an independent third-party service provider engaged by the Board to report objectively on the Fund’s investment performance, management fee and total expenses. The Board also considered information on the fees charged to other investment advisory clients of New York Life Investments and/or MacKay that follow investment strategies similar to those of the Fund, if any, and, when applicable, the rationale for differences in the Fund’s management and subadvisory fees and the fees charged to those other investment advisory clients. In addition, the Board considered information regarding the legal standards and fiduciary obligations applicable to its consideration of the continuation of each of the Advisory Agreements. The contract review process, including the structure and format for information and materials provided to the Board, has been developed in consultation with the Board. The Independent Trustees also met in executive sessions with their independent legal counsel and, for portions thereof, with senior management of New York Life Investments.
The Board’s deliberations with respect to the continuation of each of the Advisory Agreements reflect a year-long process, and the Board also took into account information furnished to the Board and its Committees throughout the year, as deemed relevant and appropriate by the Trustees, including, among other items, reports on investment performance of the Fund and investment-related matters for the Fund as well as presentations from New York Life Investments and, generally annually, MacKay personnel. In addition, the Board took into account other
information provided by New York Life Investments throughout the year, including, among other items, periodic reports on legal and compliance matters, risk management, portfolio turnover, brokerage commissions and non-advisory services provided to the Fund by New York Life Investments, as deemed relevant and appropriate by the Trustees.
In addition to information provided to the Board throughout the year, the Board received information in connection with its June 2023 meeting provided specifically in response to requests prepared on behalf of the Board, and in consultation with the Independent Trustees, by independent legal counsel to the Independent Trustees regarding the Fund’s distribution arrangements. In addition, the Board received information regarding the Fund’s asset levels, share purchase and redemption activity and the payment of Rule 12b-1 and/or certain other fees by the applicable share classes of the Fund, among other information.
In considering the continuation of each of the Advisory Agreements, the Trustees reviewed and evaluated the information and factors they believed to reasonably be necessary and appropriate in light of legal advice furnished to them by independent legal counsel to the Independent Trustees and through the exercise of their own business judgment. Although individual Trustees may have weighed certain factors or information differently and the Board did not consider any single factor or information controlling in reaching its decision, the factors that figured prominently in the Board’s consideration of the continuation of each of the Advisory Agreements are summarized in more detail below and include, among other factors: (i) the nature, extent and quality of the services provided to the Fund by New York Life Investments and MacKay; (ii) the qualifications of the portfolio managers of the Fund and the historical investment performance of the Fund, New York Life Investments and MacKay; (iii) the costs of the services provided, and profits realized, by New York Life Investments and MacKay with respect to their relationships with the Fund; (iv) the extent to which economies of scale have been realized or may be realized if the Fund grows and the extent to which any economies of scale have been shared, have benefited or may benefit the Fund’s shareholders; and (v) the reasonableness of the Fund’s management and subadvisory fees and total ordinary operating expenses. Although the Board recognized that comparisons between the Fund’s fees and expenses and those of other funds are imprecise given different terms of agreements, variations in fund strategies and other factors, the Board considered the reasonableness of the Fund’s management fee and total ordinary operating expenses as compared to the peer funds identified by ISS. Throughout their considerations, the Trustees acknowledged the commitment of New York Life Investments and its affiliates to serve the MainStay Group of Funds, as well as their capacity, experience, resources, financial stability and reputations. The Trustees also acknowledged the entrepreneurial and other risks assumed by New York Life Investments in sponsoring and managing the Fund. With respect to the Subadvisory Agreement, the Board took into account New York Life Investments’ recommendation to approve the continuation of the Subadvisory Agreement.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
The Trustees noted that, throughout the year, the Trustees are afforded an opportunity to ask questions of, and request additional information or materials from, New York Life Investments and MacKay. The Board’s decision with respect to each of the Advisory Agreements may have also been based, in part, on the Board’s knowledge of New York Life Investments and MacKay resulting from, among other things, the Board’s consideration of each of the Advisory Agreements in prior years, the advisory agreements for other funds in the MainStay Group of Funds, the Board’s review throughout the year of the performance and operations of other funds in the MainStay Group of Funds and each Trustee’s business judgment and industry experience. In addition to considering the above-referenced factors, the Board observed that in the marketplace there are a range of investment options available to investors and that the Fund’s shareholders, having had the opportunity to consider other investment options, have invested in the Fund.
The factors that figured prominently in the Board’s decision to approve the continuation of each of the Advisory Agreements during the Board’s December 6–7, 2023 meeting are summarized in more detail below.
Nature, Extent and Quality of Services Provided by New York Life Investments and MacKay
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 and capabilities in serving as manager of the Fund and considered that the Fund operates in a “manager-of-managers” structure. The Board also considered New York Life Investments’ responsibilities and services provided pursuant to this structure, including overseeing the services provided by MacKay, evaluating the performance of MacKay, making recommendations to the Board as to whether the Subadvisory Agreement should be renewed, modified or terminated and periodically reporting to the Board regarding the results of New York Life Investments’ evaluation and monitoring functions. The Board noted 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 overseeing mutual fund service providers, including subadvisors. The Board considered the experience of senior personnel at New York Life Investments providing management and administrative and other non-advisory services to the Fund. The Board observed that New York Life Investments devotes significant resources and time to providing management and administrative and other non-advisory services to the Fund, including New York Life Investments’ oversight and due diligence reviews of MacKay and ongoing analysis of, and interactions with, MacKay with respect to, among other things, the Fund’s investment performance and risks as well as MacKay’s investment capabilities and subadvisory services with respect to the Fund.
The Board also considered the range of services that New York Life Investments provides to the Fund under the terms of the Management Agreement, including: (i) fund accounting and ongoing supervisory services provided by New York Life Investments’ Fund Administration and Accounting Group; (ii) investment supervisory and analytical services
provided by New York Life Investments’ Investment Consulting Group; (iii) compliance services provided by the Trust’s Chief Compliance Officer as well as New York Life Investments’ compliance department, including supervision and implementation of the Fund’s compliance program; (iv) legal services provided by New York Life Investments’ Office of the General Counsel; and (v) risk management monitoring and analysis by compliance and investment personnel. In addition, the Board considered New York Life Investments’ willingness to invest in personnel and other resources, such as cyber security, information security and business continuity planning, that may benefit the Fund and noted that New York Life Investments is responsible for compensating the Trust’s officers, except for a portion of the salary of the Trust’s Chief Compliance Officer. The Board recognized that New York Life Investments provides certain other non-advisory services to the Fund and has over time provided an increasingly broad array of non-advisory services to the MainStay Group of Funds as a result of regulatory and other developments.
The Board also examined the range, and the nature, extent and quality, of the investment advisory services that MacKay provides to the Fund and considered the terms of each of the Advisory Agreements. The Board evaluated MacKay’s experience and performance in serving as subadvisor to the Fund and advising other portfolios and MacKay’s track record and experience in providing investment advisory services as well as the experience of investment advisory, senior management and/or administrative personnel at MacKay. The Board considered New York Life Investments’ and MacKay’s overall resources, legal and compliance environment, capabilities, reputation, financial condition and history. In addition to information provided in connection with quarterly meetings with the Trust’s Chief Compliance Officer, the Board considered information regarding the compliance policies and procedures of New York Life Investments and MacKay and acknowledged their commitment to further developing and strengthening compliance programs that may relate to the Fund. The Board also considered MacKay’s ability to recruit and retain qualified investment professionals and willingness to invest in personnel and other resources that may benefit the Fund. In this regard, the Board considered the qualifications and experience of the Fund’s portfolio managers, the number of accounts managed by the portfolio managers and the method for compensating the portfolio managers.
In addition, the Board considered information provided by New York Life Investments and MacKay regarding their respective business continuity and disaster recovery plans.
Based on these considerations, among others, the Board concluded that the Fund would likely continue to benefit from the nature, extent and quality of these services.
Investment Performance
In evaluating the Fund’s investment performance, the Board considered investment performance results over various periods in light of the Fund’s investment objective, strategies and risks. The Board considered investment reports on, and analysis of, the Fund’s performance provided to the Board throughout the year. These reports include, among other
60 | MainStay MacKay Strategic Municipal Allocation Fund |
items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to a relevant investment category and the Fund’s benchmarks, the Fund’s risk-adjusted investment performance and the Fund’s investment performance as compared to peer funds, as appropriate, as well as portfolio attribution information and commentary on the effect of market conditions. The Board also considered information provided by ISS showing the investment performance of the Fund as compared to peer funds. In addition, the Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes.
The Board also took into account its discussions with senior management at New York Life Investments concerning the Fund’s investment performance over various periods as well as discussions between representatives of MacKay and the members of the Board’s Investment Committee, which generally occur on an annual basis.
Based on these considerations, among others, the Board concluded that its review of the Fund’s investment performance and related information supported a determination to approve the continuation of each of the Advisory Agreements.
Costs of the Services Provided, and Profits and Other Benefits Realized, by New York Life Investments and MacKay
The Board considered the costs of the services provided under each of the Advisory Agreements. The Board also considered the profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund as well as of New York Life Investments and its affiliates due to their relationships with the MainStay Group of Funds. Because MacKay is an affiliate of New York Life Investments whose subadvisory fee is paid by New York Life Investments, not the Fund, the Board considered cost and profitability information for New York Life Investments and MacKay in the aggregate.
In addition, the Board acknowledged the difficulty in obtaining reliable comparative data about mutual fund managers’ profitability because 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.
In evaluating the costs of the services provided by New York Life Investments and MacKay, and profitability of New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, the Board considered, among other factors, New York Life Investments’ and its affiliates’, including MacKay’s, continuing investments in, or willingness to invest in, personnel and other resources that may support and further enhance the management of the Fund, and that New York Life Investments is responsible for paying the subadvisory fee for the Fund. The Board also considered the financial resources of New York Life Investments and MacKay and acknowledged that New York Life Investments and MacKay must be in a position to recruit and retain experienced professional personnel and to maintain a strong financial
position for New York Life Investments and MacKay to continue to provide high-quality services to the Fund. The Board recognized that the Fund benefits from the allocation of certain fixed costs among the funds in the MainStay Group of Funds, among other expected benefits resulting from its relationship with New York Life Investments.
The Board considered information regarding New York Life Investments’ methodology for calculating profitability and allocating costs provided by New York Life Investments in connection with the fund profitability analysis presented to the Board. The Board concluded that New York Life Investments’ methods for allocating costs and procedures for estimating overall profitability of the relationship with the funds in the MainStay Group of Funds were reasonable. The Board recognized the difficulty in calculating and evaluating a manager’s profitability with respect to the Fund and considered that other profitability methodologies may also be reasonable.
The Board also considered certain fall-out benefits that may be realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund, including reputational and other indirect benefits. The Board recognized, for example, the benefits to MacKay from legally permitted “soft-dollar” arrangements by which brokers provide research and other services to MacKay in exchange for commissions paid by the Fund with respect to trades in the Fund’s portfolio securities. In addition, the Board considered its review of the management agreement for a money market fund advised by New York Life Investments and an affiliated subadvisor that serves as an investment option for the Fund, including the potential rationale for and costs associated with investments in this money market fund by the Fund, if any, and considered information from New York Life Investments that the nature and type of specific investment advisory services provided to this money market fund are distinct from, or in addition to, the investment advisory services provided to the Fund.
The Board observed that, in addition to fees earned by New York Life Investments under the Management Agreement 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 considered information about these other revenues and their impact on the profitability of the relationship with the Fund to New York Life Investments and its affiliates. The Board noted that, although it assessed the overall profitability of the relationship with the Fund to New York Life Investments and its affiliates as part of the contract review process, when considering the reasonableness of the fee paid to New York Life Investments under the Management 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 incurred by New York Life Investments from its own resources.
Board Consideration and Approval of Management Agreement and Subadvisory Agreement (Unaudited) (continued)
After evaluating the information deemed relevant by the Trustees, the Board concluded that any profits realized by New York Life Investments and its affiliates, including MacKay, due to their relationships with the Fund were not excessive and other expected benefits that may accrue to New York Life Investments and its affiliates, including MacKay, are reasonable.
Management and Subadvisory Fees and Total Ordinary Operating Expenses
The Board evaluated the reasonableness of the fee paid under each of the Advisory Agreements and the Fund’s total ordinary operating expenses. With respect to the management fee and subadvisory fee, the Board primarily considered the reasonableness of the management fee paid by the Fund to New York Life Investments because the subadvisory fee paid to MacKay is paid by New York Life Investments, not the Fund. The Board also considered the reasonableness of the subadvisory fee paid by New York Life Investments and the amount of the management fee retained by New York Life Investments.
In assessing the reasonableness of the Fund’s fees and expenses, the Board primarily considered comparative data provided by ISS on the fees and expenses of similar mutual funds managed by other investment advisers. The Board reviewed the methodology used by ISS to construct the group of peer funds for comparative purposes. In addition, the Board considered information provided by New York Life Investments and MacKay on fees charged to other investment advisory clients, including institutional separate accounts and/or other funds, that follow investment strategies similar to those of the Fund, if any. The Board considered the contractual management fee schedule for the Fund as compared to those for such other investment advisory clients, taking into account the rationale for differences in fee schedules. The Board also took into account information provided by New York Life Investments about the more extensive scope of services provided to registered investment companies, such as the Fund, as compared with other investment advisory clients. Additionally, the Board considered the impact of voluntary waivers and expense limitation arrangements on the Fund’s net management fee and expenses. The Board also considered that in proposing fees for the Fund, New York Life Investments considers the competitive marketplace for mutual funds.
The Board took into account information from New York Life Investments, as provided in connection with the Board’s June 2023 meeting, regarding the reasonableness of the Fund’s transfer agent fee schedule, including industry data demonstrating that the fees that NYLIM Service Company LLC, an affiliate of New York Life Investments and the Fund’s transfer agent, charges the Fund are within the range of 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 also took into account information provided by NYLIM Service Company LLC regarding the sub-transfer agency payments it made to intermediaries in connection with the provision of sub-transfer agency services to the Fund.
The Board considered the extent to which transfer agent fees contributed to the total expenses of the Fund. The Board acknowledged the role that the MainStay Group of Funds historically has played in serving the investment needs of New York Life Insurance Company customers, who often maintain smaller account balances than other shareholders of funds, and the impact of small accounts on the expense ratios of Fund share classes. The Board also recognized measures that it and New York Life Investments have taken that are intended to mitigate the effect of small accounts on the expense ratios of Fund share classes, including through the imposition of an expense limitation on net transfer agency expenses. The Board also considered that NYLIM Service Company LLC had waived its contractual cost of living adjustments during certain years.
Based on the factors outlined above, among other considerations, the Board concluded that the Fund’s management fee and total ordinary operating expenses are within a range that is competitive and support a conclusion that these fees and expenses are reasonable.
Economies of Scale
The Board considered information regarding economies of scale, including whether economies of scale may exist with respect to the Fund and whether the Fund’s management fee and expense structure permits any economies of scale to be appropriately shared with the Fund’s shareholders. The Board also considered a report from New York Life Investments, previously prepared at the request of the Board, that addressed economies of scale, including with respect to the mutual fund business generally, and the various ways in which the benefits of economies of scale may be shared with the funds in the MainStay Group of Funds. Although the Board recognized 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 fee breakpoints, initially setting management fee rates at scale or making additional investments to enhance the services provided to the Fund. 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 ISS showing how the Fund’s management fee schedule compared with fees paid for similar services by peer funds at varying asset levels.
Based on this information, the Board concluded that economies of scale are appropriately shared for the benefit of the Fund’s shareholders through the Fund’s management fee and expense structure and other methods to share benefits from economies of scale.
Conclusion
On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Trustees, and the evaluation thereof, the Board, including the Independent Trustees voting separately, unanimously voted to approve the continuation of each of the Advisory Agreements.
62 | MainStay MacKay Strategic Municipal Allocation Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
64 | MainStay MacKay Strategic Municipal Allocation Fund |
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
5022210 MS081-24 | MSMSMA10-06/24 |
(NYLIM) NL466
MainStay PineStone U.S. Equity Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Since Inception | Gross Expense Ratio3 |
Class A Shares4 | Maximum 5.50% Initial Sales Charge | With sales charges | 9/30/2019 | 6.01% | 12.54% | 14.32% | 0.95% |
| | Excluding sales charges | | 12.18 | 12.54 | 14.32 | 0.95 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 8/28/2023 | 10.72 | N/A | 5.70 | 1.87 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 11.72 | N/A | 6.70 | 1.87 |
Class I Shares4 | | | 9/30/2019 | 12.40 | 12.83 | 14.60 | 0.70 |
Class P Shares | | | 8/28/2023 | 12.36 | N/A | 7.52 | 0.62 |
Class R6 Shares | | | 8/28/2023 | 12.36 | N/A | 7.46 | 0.62 |
1. | Effective at the close of business on August 25, 2023, the Fund changed its fiscal and tax year end from March 31 to October 31. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Performance figures for Class A shares and Class I shares reflect the historical performance of the then-existing Investor Class shares and Institutional Class shares, respectively, of the Fiera Capital U.S. Equity Long-Term Quality Fund (the "Predecessor Fund"), which was subject to a different fee structure for periods prior to August 28, 2023. The Fund commenced operations on August 28, 2023. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Since Inception |
Russell 3000® Index2 | 21.09% | 22.30% | 13.32% |
S&P 500® Index3 | 20.98 | 22.66 | 13.99 |
Morningstar Large Blend Category Average4 | 19.86 | 20.31 | 11.80 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index, which represents a broad measure of market performance, as a replacement for the S&P 500® Index. 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. |
3. | The S&P 500® Index, which represents a broad measure of market performance, is generally representative of the market sectors or types of investments in which the Fund invests. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. |
4. | The Morningstar Large Blend Category Average is representative of funds that represent the overall U.S. stock market in size, growth rates and price. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap. The blend style is assigned to portfolios where neither growth nor value characteristics predominate. These portfolios tend to invest across the spectrum of U.S. industries, and owing to their broad exposure, the portfolios' returns are often similar to those of the S&P 500® Index. Results are based on average total returns of similar funds with all dividends 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 PineStone U.S. Equity Fund |
Cost in Dollars of a $1,000 Investment in MainStay PineStone 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,121.80 | $4.64 | $1,020.49 | $4.42 | 0.88% |
Class C Shares | $1,000.00 | $1,117.20 | $9.42 | $1,015.96 | $8.97 | 1.79% |
Class I Shares | $1,000.00 | $1,124.00 | $3.38 | $1,021.68 | $3.22 | 0.64% |
Class P Shares | $1,000.00 | $1,123.60 | $3.17 | $1,021.88 | $3.02 | 0.60% |
Class R6 Shares | $1,000.00 | $1,123.60 | $3.22 | $1,021.83 | $3.07 | 0.61% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
Software | 15.0% |
Specialty Retail | 14.4 |
Capital Markets | 14.2 |
Interactive Media & Services | 8.2 |
Chemicals | 7.8 |
Machinery | 7.5 |
Financial Services | 5.4 |
Health Care Providers & Services | 5.3 |
Beverages | 4.0 |
Pharmaceuticals | 3.0 |
Semiconductors & Semiconductor Equipment | 2.9 |
Building Products | 2.8% |
Life Sciences Tools & Services | 2.5 |
Health Care Equipment & Supplies | 2.2 |
Textiles, Apparel & Luxury Goods | 1.9 |
Household Products | 1.8 |
Personal Care Products | 0.7 |
Short–Term Investment | 0.3 |
Other Assets, Less Liabilities | 0.1 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Microsoft Corp. |
2. | Alphabet, Inc., Class A |
3. | AutoZone, Inc. |
4. | Moody's Corp. |
5. | Mastercard, Inc., Class A |
6. | UnitedHealth Group, Inc. |
7. | Linde plc |
8. | PepsiCo, Inc. |
9. | Lowe's Cos., Inc. |
10. | Sherwin-Williams Co. (The) |
8 | MainStay PineStone U.S. Equity Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 99.6% |
Beverages 4.0% |
PepsiCo, Inc. | 85,009 | $ 14,953,933 |
Building Products 2.8% |
Carrier Global Corp. | 169,334 | 10,412,348 |
Capital Markets 14.2% |
CME Group, Inc. | 59,570 | 12,488,255 |
FactSet Research Systems, Inc. | 21,297 | 8,878,506 |
Moody's Corp. | 59,967 | 22,207,579 |
MSCI, Inc. | 20,134 | 9,378,216 |
| | 52,952,556 |
Chemicals 7.8% |
Linde plc | 35,388 | 15,604,692 |
Sherwin-Williams Co. (The) | 44,742 | 13,405,151 |
| | 29,009,843 |
Financial Services 5.4% |
Mastercard, Inc., Class A | 44,806 | 20,216,467 |
Health Care Equipment & Supplies 2.2% |
Becton Dickinson & Co. | 35,796 | 8,397,742 |
Health Care Providers & Services 5.3% |
UnitedHealth Group, Inc. | 41,133 | 19,896,032 |
Household Products 1.8% |
Colgate-Palmolive Co. | 74,953 | 6,889,680 |
Interactive Media & Services 8.2% |
Alphabet, Inc., Class A (a) | 189,019 | 30,768,513 |
Life Sciences Tools & Services 2.5% |
Mettler-Toledo International, Inc. (a) | 7,530 | 9,259,641 |
Machinery 7.5% |
Graco, Inc. | 119,502 | 9,584,060 |
Middleby Corp. (The) (a) | 57,523 | 7,993,971 |
Otis Worldwide Corp. | 113,658 | 10,365,610 |
| | 27,943,641 |
Personal Care Products 0.7% |
Kenvue, Inc. | 139,614 | 2,627,536 |
| Shares | | Value |
|
Pharmaceuticals 3.0% |
Johnson & Johnson | 78,377 | | $ 11,332,530 |
Semiconductors & Semiconductor Equipment 2.9% |
Analog Devices, Inc. | 53,528 | | 10,738,252 |
Software 15.0% |
Adobe, Inc. (a) | 19,714 | | 9,124,231 |
Microsoft Corp. | 88,777 | | 34,563,549 |
Oracle Corp. | 109,043 | | 12,403,641 |
| | | 56,091,421 |
Specialty Retail 14.4% |
AutoZone, Inc. (a) | 8,701 | | 25,723,637 |
Lowe's Cos., Inc. | 64,967 | | 14,811,826 |
TJX Cos., Inc. (The) | 142,411 | | 13,399,451 |
| | | 53,934,914 |
Textiles, Apparel & Luxury Goods 1.9% |
NIKE, Inc., Class B | 76,736 | | 7,079,663 |
Total Common Stocks (Cost $322,482,733) | | | 372,504,712 |
Short-Term Investment 0.3% |
Affiliated Investment Company 0.3% |
MainStay U.S. Government Liquidity Fund, 5.242% (b) | 1,055,150 | | 1,055,150 |
Total Short-Term Investment (Cost $1,055,150) | | | 1,055,150 |
Total Investments (Cost $323,537,883) | 99.9% | | 373,559,862 |
Other Assets, Less Liabilities | 0.1 | | 366,316 |
Net Assets | 100.0% | | $ 373,926,178 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | Non-income producing security. |
(b) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 881 | $ 160,722 | $ (160,548) | $ — | $ — | $ 1,055 | $ 94 | $ — | 1,055 |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | $ 372,504,712 | | $ — | | $ — | | $ 372,504,712 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 1,055,150 | | — | | — | | 1,055,150 |
Total Investments in Securities | $ 373,559,862 | | $ — | | $ — | | $ 373,559,862 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay PineStone U.S. Equity Fund |
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $322,482,733) | $372,504,712 |
Investment in affiliated investment companies, at value (identified cost $1,055,150) | 1,055,150 |
Receivables: | |
Fund shares sold | 340,770 |
Dividends | 174,303 |
Other assets | 71,292 |
Total assets | 374,146,227 |
Liabilities |
Due to custodian | 2,996 |
Payables: | |
Manager (See Note 3) | 173,781 |
Transfer agent (See Note 3) | 29,836 |
Custodian | 6,872 |
Shareholder communication | 2,934 |
Professional fees | 1,079 |
NYLIFE Distributors (See Note 3) | 542 |
Fund shares redeemed | 415 |
Accrued expenses | 1,594 |
Total liabilities | 220,049 |
Net assets | $373,926,178 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 21,447 |
Additional paid-in-capital | 321,877,490 |
| 321,898,937 |
Total distributable earnings (loss) | 52,027,241 |
Net assets | $373,926,178 |
Class A | |
Net assets applicable to outstanding shares | $ 2,430,014 |
Shares of beneficial interest outstanding | 139,781 |
Net asset value per share outstanding | $ 17.38 |
Maximum sales charge (5.50% of offering price) | 1.01 |
Maximum offering price per share outstanding | $ 18.39 |
Class C | |
Net assets applicable to outstanding shares | $ 53,898 |
Shares of beneficial interest outstanding | 3,115 |
Net asset value and offering price per share outstanding | $ 17.30 |
Class I | |
Net assets applicable to outstanding shares | $125,832,989 |
Shares of beneficial interest outstanding | 7,215,822 |
Net asset value and offering price per share outstanding | $ 17.44 |
Class P | |
Net assets applicable to outstanding shares | $ 26,885 |
Shares of beneficial interest outstanding | 1,542 |
Net asset value and offering price per share outstanding | $ 17.44 |
Class R6 | |
Net assets applicable to outstanding shares | $245,582,392 |
Shares of beneficial interest outstanding | 14,086,821 |
Net asset value and offering price per share outstanding | $ 17.43 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Statements of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated | $ 2,086,453 |
Dividends-affiliated | 94,348 |
Securities lending, net | 21 |
Total income | 2,180,822 |
Expenses | |
Manager (See Note 3) | 934,595 |
Registration | 38,818 |
Professional fees | 26,369 |
Transfer agent (See Note 3) | 23,010 |
Custodian | 10,009 |
Trustees | 7,579 |
Shareholder communication | 3,245 |
Distribution/Service—Class A (See Note 3) | 2,270 |
Distribution/Service—Class C (See Note 3) | 245 |
Miscellaneous | 8,398 |
Total expenses | 1,054,538 |
Net investment income (loss) | 1,126,284 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on unaffiliated investments | 1,772,588 |
Net change in unrealized appreciation (depreciation) on unaffiliated investments | 26,313,892 |
Net realized and unrealized gain (loss) | 28,086,480 |
Net increase (decrease) in net assets resulting from operations | $29,212,764 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay PineStone U.S. Equity Fund |
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited), the period April 1, 2023 through October 31, 2023 and the year ended March 31, 2023
| Six months ended April 30, 2024 | Period April 1, 2023 through October 31, 2023(a) | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | | |
Net investment income (loss) | $ 1,126,284 | $ 233,954 | $ 444,909 |
Net realized gain (loss) | 1,772,588 | 387,691 | (109,569) |
Net change in unrealized appreciation (depreciation) | 26,313,892 | (3,481,940) | (1,944,603) |
Net increase (decrease) in net assets resulting from operations | 29,212,764 | (2,860,295) | (1,609,263) |
Distributions to shareholders: |
Class A | (4,062) | — | (508) |
Class C | (82) | — | — |
Class I | (366,891) | — | (3,144,318) |
Class P | (96) | — | — |
Class R6 | (627,056) | — | — |
Total distributions to shareholders | (998,187) | — | (3,144,826) |
Capital share transactions: | | | |
Net proceeds from sales of shares | 159,870,333 | 118,532,733 | 4,978,500 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 902,352 | — | 1,975,733 |
Cost of shares redeemed | (18,259,568) | (1,742,748) | (10,015,209) |
Increase (decrease) in net assets derived from capital share transactions | 142,513,117 | 116,789,985 | (3,060,976) |
Net increase (decrease) in net assets | 170,727,694 | 113,929,690 | (7,815,065) |
Net Assets |
Beginning of period | 203,198,484 | 89,268,794 | 97,083,859 |
End of period | $373,926,178 | $203,198,484 | $ 89,268,794 |
(a) | The Fund changed its fiscal year end from March 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.
13
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1, 2023 through October 31, | | Year Ended March 31, | | September 30, 2019^ through March 31, |
Class A | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 15.54 | | $ 15.16 | | $ 15.92 | | $ 13.93 | | $ 9.28 | | $ 10.00 |
Net investment income (loss) (b) | 0.03 | | (0.01) | | 0.04 | | 0.02 | | 0.03 | | 0.03 |
Net realized and unrealized gain (loss) | 1.86 | | 0.39 | | (0.31) | | 2.12 | | 4.78 | | (0.72) |
Total from investment operations | 1.89 | | 0.38 | | (0.27) | | 2.14 | | 4.81 | | (0.69) |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.04) | | — | | (0.03) | | (0.02) | | (0.03) | | (0.03) |
From net realized gain on investments | (0.01) | | — | | (0.46) | | (0.13) | | (0.13) | | (0.00)‡ |
Total distributions | (0.05) | | — | | (0.49) | | (0.15) | | (0.16) | | (0.03) |
Net asset value at end of period | $ 17.38 | | $ 15.54 | | $ 15.16 | | $ 15.92 | | $ 13.93 | | $ 9.28 |
Total investment return | 12.18%(c) | | 2.51%(c) | | (1.45)% (d)(e) | | 15.20% (d)(e) | | 52.04% (d)(e) | | (6.96)% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.38%†† | | (0.12)%†† | | 0.27% (f)(g) | | 0.09% (f)(g) | | 0.24% (f)(g) | | 0.48% (f)(g) |
Net expenses | 0.88%††(h) | | 0.97%††(h) | | 1.00% (f)(g) | | 1.00% (f)(g) | | 1.00% (f)(g) | | 1.00% (f)(g) |
Expenses (before waiver/reimbursement) | 0.88%††(h) | | 0.99%††(h) | | 1.21%(g) | | 1.13%(g) | | 1.29%(g) | | 1.73%(g) |
Portfolio turnover rate | 3% | | 2% | | 6%(e) | | 10%(e) | | 8%(e) | | 6%(e) |
Net assets at end of period (in 000's) | $ 2,430 | | $ 769 | | $ 17 | | $ 16 | | $ 14 | | $ 9 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
14 | MainStay PineStone U.S. Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Class C | 2024 * | | 2023 |
Net asset value at beginning of period | $ 15.51 | | $ 16.32 |
Net investment income (loss) (a) | (0.04) | | (0.02) |
Net realized and unrealized gain (loss) | 1.85 | | (0.79) |
Total from investment operations | 1.81 | | (0.81) |
Less distributions: | | | |
From net investment income | (0.01) | | — |
From net realized gain on investments | (0.01) | | — |
Total distributions | (0.02) | | — |
Net asset value at end of period | $ 17.30 | | $ 15.51 |
Total investment return (b) | 11.72% | | (4.96)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | (0.49)% | | (0.75)% |
Net expenses††(d) | 1.79% | | 1.89% |
Expenses (before waiver/reimbursement)††(d) | 1.79% | | 1.91% |
Portfolio turnover rate | 3% | | 2% |
Net assets at end of period (in 000’s) | $ 54 | | $ 24 |
* | Unaudited. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
15
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1, 2023 through October 31, | | Year Ended March 31, | | September 30, 2019^ through March 31, |
Class I | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 |
Net asset value at beginning of period | $ 15.57 | | $ 15.17 | | $ 15.94 | | $ 13.95 | | $ 9.28 | | $ 10.00 |
Net investment income (loss) (b) | 0.06 | | 0.04 | | 0.07 | | 0.05 | | 0.06 | | 0.04 |
Net realized and unrealized gain (loss) | 1.86 | | 0.36 | | (0.31) | | 2.13 | | 4.79 | | (0.73) |
Total from investment operations | 1.92 | | 0.40 | | (0.24) | | 2.18 | | 4.85 | | (0.69) |
Less distributions: | | | | | | | | | | | |
From net investment income | (0.04) | | — | | (0.07) | | (0.06) | | (0.05) | | (0.03) |
From net realized gain on investments | (0.01) | | — | | (0.46) | | (0.13) | | (0.13) | | (0.00)‡ |
Total distributions | (0.05) | | — | | (0.53) | | (0.19) | | (0.18) | | (0.03) |
Net asset value at end of period | $ 17.44 | | $ 15.57 | | $ 15.17 | | $ 15.94 | | $ 13.95 | | $ 9.28 |
Total investment return | 12.40%(c) | | 2.64%(c) | | (1.26)% (d)(e) | | 15.49% (d)(e) | | 52.48% (d)(e) | | (6.91)% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | |
Net investment income (loss) | 0.67%†† | | 0.40%†† | | 0.51% (f)(g) | | 0.33% (f)(g) | | 0.48% (f)(g) | | 0.73% (f)(g) |
Net expenses | 0.64%††(h) | | 0.75%††(h) | | 0.75% (f)(g) | | 0.75% (f)(g) | | 0.75% (f)(g) | | 0.75% (f)(g) |
Expenses (before waiver/reimbursement) | 0.64%††(h) | | 0.86%††(h) | | 0.96%(g) | | 0.88%(g) | | 1.04%(g) | | 1.48%(g) |
Portfolio turnover rate | 3% | | 2% | | 6%(e) | | 10%(e) | | 8%(e) | | 6%(e) |
Net assets at end of period (in 000's) | $ 125,833 | | $ 96,988 | | $ 89,251 | | $ 97,068 | | $ 81,645 | | $ 43,299 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(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. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
16 | MainStay PineStone U.S. Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Class P | 2024 * | | 2023 |
Net asset value at beginning of period | $ 15.58 | | $ 16.35 |
Net investment income (loss) (a) | 0.06 | | 0.01 |
Net realized and unrealized gain (loss) | 1.86 | | (0.78) |
Total from investment operations | 1.92 | | (0.77) |
Less distributions: | | | |
From net investment income | (0.05) | | — |
From net realized gain on investments | (0.01) | | — |
Total distributions | (0.06) | | — |
Net asset value at end of period | $ 17.44 | | $ 15.58 |
Total investment return (b) | 12.36% | | (4.71)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | 0.72% | | 0.48% |
Net expenses††(d) | 0.60% | | 0.66% |
Portfolio turnover rate | 3% | | 2% |
Net assets at end of period (in 000’s) | $ 27 | | $ 24 |
* | Unaudited. |
^ | Inception date. |
†† | 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 P shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Class R6 | 2024 * | | 2023 |
Net asset value at beginning of period | $ 15.57 | | $ 16.35 |
Net investment income (loss) (a) | 0.06 | | 0.00‡ |
Net realized and unrealized gain (loss) | 1.86 | | (0.78) |
Total from investment operations | 1.92 | | (0.78) |
Less distributions: | | | |
From net investment income | (0.05) | | — |
From net realized gain on investments | (0.01) | | — |
Total distributions | (0.06) | | — |
Net asset value at end of period | $ 17.43 | | $ 15.57 |
Total investment return (b) | 12.36% | | (4.77)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | 0.66% | | 0.10% |
Net expenses††(d) | 0.61% | | 0.63% |
Portfolio turnover rate | 3% | | 2% |
Net assets at end of period (in 000’s) | $ 245,582 | | $ 105,394 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
18 | MainStay PineStone U.S. Equity Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay PineStone U.S. Equity Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The Fund is successor to the Fiera Capital U.S. Equity Long-Term Quality Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Fiera Capital, Inc. served as the investment advisor. The financial statements of the Fund reflect the historical results of corresponding shares of the Predecessor Fund through its reorganization on August 28, 2023. Upon completion of the reorganization, the Class A and Class I shares of the Fund assumed the performance, financial and other information of the corresponding shares of the Predecessor Fund. All information provided for periods prior to August 28, 2023, refers to the Predecessor Fund.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | September 30, 2019 |
Class C | August 28, 2023 |
Class I | September 30, 2019 |
Class P | August 28, 2023 |
Class R6 | August 28, 2023 |
Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C shares convert to either Class A shares at the end of the calendar quarter eight years after the date they were purchased. Class P shares are generally only available to investors that have a relationship with PineStone Asset Management Inc. and are invested directly with the Fund. An investment minimum of $5,000,000 for Class P shares applies and no subsequent investment minimum. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A shares. Class I, Class R6 and Class P shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek long-term capital appreciation.
Effective at the close of business on August 25, 2023, the Fund changed its fiscal and tax year end from March 31 to October 31.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
Notes to Financial Statements (Unaudited) (continued)
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each
20 | MainStay PineStone U.S. Equity Fund |
security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 from net investment income, if any, at least annually and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against
Notes to Financial Statements (Unaudited) (continued)
counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(H) 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 the 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.
(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel
affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. PineStone Asset Management Inc. (“PineStone” or the “Subadvisor”), a registered investment adviser, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and PineStone, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.55% of the Fund's average daily net assets. During the six-month period ended April 30, 2024, the effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.55%.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that the Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 0.99%; Class C, 1.89%; Class I, 0.74%; Class R6, 0.73% and Class P, 0.74%. This agreement will remain in effect until February 28, 2026, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $934,595 and paid the Subadvisor fees in the amount of $467,297.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
22 | MainStay PineStone U.S. Equity Fund |
Pursuant to the Class A Plan, the Distributor receives a monthly fee from the Class A shares at an annual rate of 0.25% of the average daily net assets of the Class A shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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, for a total 12b-1 fee of 1.00%. Class I, Class R6 and Class P shares are not subject to a distribution and/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 also advised that the Distributor retained CDSCs on redemptions of Class C shares during the six-month period ended April 30, 2024, of $250.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2026, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 230 | $— |
Class C | 45 | — |
Class I | 18,331 | — |
Class R6 | 4,404 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations.
This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class A | $26,542 | 1.1% |
Class C | 26,668 | 49.5 |
Class P | 26,885 | 100.0 |
Class R6 | 26,870 | 0.0‡ |
‡ | Less than one-tenth of a percent. |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $318,222,891 | $58,795,710 | $(3,458,739) | $55,336,971 |
During the period from April 1, 2023 through October 31, 2023 and the years ended March 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 (a) | 2023 |
Distributions paid from: | | |
Ordinary Income | $— | $ 410,307 |
Long-Term Capital Gains | — | 2,734,519 |
Total | $— | $3,144,826 |
(a) | The Fund changed its fiscal year end from March 31 to October 31. |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with
Notes to Financial Statements (Unaudited) (continued)
an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $152,584 and $10,671, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024, the period April 1, 2023 through October 31, 2023 and the year ended March 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 92,097 | $ 1,568,687 |
Shares issued to shareholders in reinvestment of distributions | 242 | 4,062 |
Shares redeemed | (2,071) | (36,216) |
Net increase (decrease) | 90,268 | $ 1,536,533 |
Period ended October 31, 2023:(a)(b) | | |
Shares sold | 48,365 | $ 774,250 |
Net increase (decrease) | 48,365 | $ 774,250 |
Year ended March 31, 2023: | | |
Shares sold | 88 | $ 1,300 |
Shares issued to shareholders in reinvestment of distributions | 36 | 507 |
Net increase (decrease) | 124 | $ 1,807 |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 3,061 | $ 51,900 |
Shares issued to shareholders in reinvestment of distributions | 5 | 82 |
Shares redeemed | (1,490) | (25,250) |
Net increase (decrease) | 1,576 | $ 26,732 |
Period ended October 31, 2023:(c) | | |
Shares sold | 1,539 | $ 25,000 |
Net increase (decrease) | 1,539 | $ 25,000 |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,399,629 | $ 24,524,742 |
Shares issued to shareholders in reinvestment of distributions | 16,100 | 271,130 |
Shares redeemed | (427,804) | (7,541,055) |
Net increase (decrease) | 987,925 | $ 17,254,817 |
Period ended October 31, 2023:(b)(d) | | |
Shares sold | 456,905 | $ 7,342,486 |
Shares redeemed | (111,675) | (1,742,748) |
Net increase (decrease) | 345,230 | $ 5,599,738 |
Year ended March 31, 2023: | | |
Shares sold | 335,273 | $ 4,977,200 |
Shares issued to shareholders in reinvestment of distributions | 138,905 | 1,975,226 |
Shares redeemed | (681,833) | (10,015,209) |
Net increase (decrease) | (207,655) | $ (3,062,783) |
|
24 | MainStay PineStone U.S. Equity Fund |
Class P | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares issued to shareholders in reinvestment of distributions | 6 | $ 96 |
Net increase (decrease) | 6 | $ 96 |
Period ended October 31, 2023:(c) | | |
Shares sold | 1,536 | $ 25,000 |
Net increase (decrease) | 1,536 | $ 25,000 |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 7,872,589 | $133,725,004 |
Shares issued to shareholders in reinvestment of distributions | 37,254 | 626,982 |
Shares redeemed | (591,309) | (10,657,047) |
Net increase (decrease) | 7,318,534 | $123,694,939 |
Period ended October 31, 2023:(c) | | |
Shares sold | 6,768,287 | $110,365,997 |
Net increase (decrease) | 6,768,287 | $110,365,997 |
(a) | Investor Class converted to Class A on August 25, 2023. |
(b) | The Fund changed its fiscal year end from March 31 to October 31. |
(c) | The inception date of the class was August 28, 2023. |
(d) | Institutional Class converted to Class I on August 25, 2023. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
26 | MainStay PineStone U.S. Equity Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
6641738 MS081-24 | MSPUE10-06/24 |
(NYLIM) NL548
MainStay Fiera SMID Growth Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Five Years | Ten Years or Since Inception | Gross Expense Ratio3 |
Class A Shares4 | Maximum 5.50% Initial Sales Charge | With sales charges | 2/12/2018 | 15.84% | 19.72% | 11.53% | 10.99% | 1.20% |
| | Excluding sales charges | | 22.58 | 19.72 | 11.53 | 10.99 | 1.20 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 7/24/2023 | 21.12 | N/A | N/A | 6.08 | 2.08 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 22.12 | N/A | N/A | 7.08 | 2.08 |
Class I Shares4 | | | 6/29/2012 | 22.82 | 20.10 | 11.82 | 10.39 | 0.95 |
Class R6 Shares | | | 7/24/2023 | 22.81 | N/A | N/A | 8.05 | 0.83 |
1. | Effective at the close of business on July 21, 2023, the Fund changed its fiscal and tax year end from April 30 to October 31. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Effective July 21, 2023, the Fiera Capital Small/Mid-Cap Growth Fund (the "Predecessor Fund") was reorganized into the Fund. As accounting successor to the Predecessor Fund, the Fund has assumed the Predecessor Fund's historical performance. Therefore, the performance information shown below is that of the Predecessor Fund, which had a different fee structure from the Fund. The returns of the Predecessor Fund have not been adjusted to reflect the applicable expenses of the Fund. The historical performance presented prior to February 12, 2018 reflects the performance of APEXcm Small/Mid-Cap Growth Fund, a former series of The Ultimus Managers Trust (the "Prior Predecessor Fund"). The returns of the Prior Predecessor Fund have not been adjusted to reflect the applicable expenses of the Predecessor Fund or the Fund. The returns prior to February 12, 2018 are based on the previous performance and actual fees and expenses of the Prior Predecessor Fund's sole class of shares (i.e., the Predecessor Fund's Institutional Class shares, which commenced operations on June 29, 2012). The Predecessor Fund's Investor Class shares commenced operations on February 12, 2018. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Ten Years |
Russell 3000® Index2 | 21.09% | 22.30% | 12.43% | 11.81% |
Russell 2500TM Growth Index3 | 21.50 | 13.53 | 6.97 | 9.10 |
Morningstar Mid-Cap Growth Category Average4 | 22.43 | 17.39 | 8.30 | 9.73 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | In accordance with new regulatory requirements, the Fund has selected the Russell 3000® Index, which represents a broad measure of market performance, as a replacement for the Russell 2500™ Growth Index. 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. |
3. | The Russell 2500TM Growth Index, which is generally representative of the market sectors or types of investments in which the Fund invests, measures the performance of the small- to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. |
4. | The Morningstar Mid-Cap Growth Category Average is representative of funds that invest primarily in U.S. firms that are projected to grow faster than other mid-cap stocks, therefore commanding relatively higher prices. Stocks in the middle 20% of the capitalization of the U.S. equity market are defined as mid-cap. Growth is defined based on fast growth and high valuations. Most of these funds focus on companies in rapidly expanding industries. Results are based on average total returns of similar funds with all dividends 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 Fiera SMID Growth Fund |
Cost in Dollars of a $1,000 Investment in MainStay Fiera SMID 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,225.80 | $ 6.25 | $1,019.24 | $5.67 | 1.13% |
Class C Shares | $1,000.00 | $1,221.20 | $10.27 | $1,015.61 | $9.32 | 1.86% |
Class I Shares | $1,000.00 | $1,228.20 | $ 4.71 | $1,020.64 | $4.27 | 0.85% |
Class R6 Shares | $1,000.00 | $1,228.10 | $ 4.43 | $1,020.88 | $4.02 | 0.80% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Industry Composition as of April 30, 2024 (Unaudited)
Software | 15.5% |
Biotechnology | 15.0 |
Hotels, Restaurants & Leisure | 9.0 |
Semiconductors & Semiconductor Equipment | 6.1 |
IT Services | 5.7 |
Health Care Equipment & Supplies | 4.7 |
Electrical Equipment | 4.4 |
Machinery | 4.1 |
Capital Markets | 4.0 |
Aerospace & Defense | 3.9 |
Textiles, Apparel & Luxury Goods | 3.0 |
Household Durables | 2.9 |
Construction & Engineering | 2.9 |
Media | 2.4 |
Building Products | 1.9 |
Specialty Retail | 1.4 |
Broadline Retail | 1.4% |
Financial Services | 1.4 |
Energy Equipment & Services | 1.3 |
Insurance | 1.2 |
Banks | 1.2 |
Oil, Gas & Consumable Fuels | 0.9 |
Chemicals | 0.8 |
Commercial Services & Supplies | 0.6 |
Ground Transportation | 0.6 |
Health Care Providers & Services | 0.6 |
Entertainment | 0.4 |
Pharmaceuticals | 0.3 |
Short–Term Investments | 2.3 |
Other Assets, Less Liabilities | 0.1 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Entegris, Inc. |
2. | HubSpot, Inc. |
3. | GoDaddy, Inc., Class A |
4. | Wingstop, Inc. |
5. | EMCOR Group, Inc. |
6. | Tyler Technologies, Inc. |
7. | BWX Technologies, Inc. |
8. | MongoDB, Inc. |
9. | Hyatt Hotels Corp., Class A |
10. | Shockwave Medical, Inc. |
8 | MainStay Fiera SMID Growth Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 97.6% |
Aerospace & Defense 3.9% |
BWX Technologies, Inc. | 99,993 | $ 9,576,330 |
Curtiss-Wright Corp. | 18,087 | 4,583,607 |
| | 14,159,937 |
Banks 1.2% |
Wintrust Financial Corp. | 47,074 | 4,549,231 |
Biotechnology 15.0% |
Amicus Therapeutics, Inc. (a) | 546,537 | 5,459,905 |
Apellis Pharmaceuticals, Inc. (a) | 100,189 | 4,427,352 |
Argenx SE, ADR (a) | 17,868 | 6,709,434 |
BioMarin Pharmaceutical, Inc. (a) | 71,075 | 5,740,017 |
Crinetics Pharmaceuticals, Inc. (a) | 50,331 | 2,205,504 |
Ideaya Biosciences, Inc. (a) | 112,629 | 4,578,369 |
Immunocore Holdings plc, ADR (a) | 92,173 | 5,445,581 |
Neurocrine Biosciences, Inc. (a) | 55,820 | 7,677,483 |
Sarepta Therapeutics, Inc. (a) | 39,611 | 5,017,129 |
SpringWorks Therapeutics, Inc. (a) | 90,942 | 4,246,082 |
Veracyte, Inc. (a) | 62,384 | 1,220,855 |
Xenon Pharmaceuticals, Inc. (a) | 60,219 | 2,447,902 |
| | 55,175,613 |
Broadline Retail 1.4% |
Etsy, Inc. (a) | 75,787 | 5,204,293 |
Building Products 1.9% |
A O Smith Corp. | 82,551 | 6,838,525 |
Capital Markets 4.0% |
Hamilton Lane, Inc., Class A | 24,228 | 2,706,752 |
Raymond James Financial, Inc. | 48,615 | 5,931,030 |
Stifel Financial Corp. | 73,417 | 5,867,487 |
| | 14,505,269 |
Chemicals 0.8% |
Avient Corp. | 69,529 | 2,949,420 |
Commercial Services & Supplies 0.6% |
RB Global, Inc. | 32,116 | 2,298,863 |
Construction & Engineering 2.9% |
EMCOR Group, Inc. | 29,409 | 10,504,013 |
Electrical Equipment 4.4% |
Hubbell, Inc. | 15,425 | 5,715,271 |
| Shares | Value |
|
Electrical Equipment (continued) |
nVent Electric plc | 71,531 | $ 5,155,239 |
Regal Rexnord Corp. | 31,949 | 5,155,610 |
| | 16,026,120 |
Energy Equipment & Services 1.3% |
ChampionX Corp. | 141,707 | 4,757,104 |
Entertainment 0.4% |
Roku, Inc. (a) | 25,474 | 1,468,831 |
Financial Services 1.4% |
Corebridge Financial, Inc. (b) | 187,327 | 4,975,405 |
Ground Transportation 0.6% |
Knight-Swift Transportation Holdings, Inc. | 47,361 | 2,189,499 |
Health Care Equipment & Supplies 4.7% |
AtriCure, Inc. (a) | 96,273 | 2,322,105 |
Inari Medical, Inc. (a) | 60,486 | 2,258,547 |
iRhythm Technologies, Inc. (a) | 39,442 | 4,322,055 |
Shockwave Medical, Inc. (a) | 25,812 | 8,522,864 |
| | 17,425,571 |
Health Care Providers & Services 0.6% |
Option Care Health, Inc. (a) | 72,735 | 2,174,049 |
Hotels, Restaurants & Leisure 9.0% |
Expedia Group, Inc. (a) | 35,546 | 4,785,558 |
Hyatt Hotels Corp., Class A | 63,086 | 9,386,566 |
Royal Caribbean Cruises Ltd. (a) | 59,277 | 8,276,848 |
Wingstop, Inc. | 27,576 | 10,610,969 |
| | 33,059,941 |
Household Durables 2.9% |
PulteGroup, Inc. | 43,075 | 4,799,417 |
TopBuild Corp. (a) | 14,748 | 5,968,073 |
| | 10,767,490 |
Insurance 1.2% |
RenaissanceRe Holdings Ltd. | 20,875 | 4,576,844 |
IT Services 5.7% |
GoDaddy, Inc., Class A (a) | 92,310 | 11,296,898 |
MongoDB, Inc. (a) | 25,959 | 9,479,707 |
| | 20,776,605 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
| Shares | Value |
Common Stocks (continued) |
Machinery 4.1% |
Graco, Inc. | 51,942 | $ 4,165,748 |
Lincoln Electric Holdings, Inc. | 21,366 | 4,690,478 |
Nordson Corp. | 23,945 | 6,182,360 |
| | 15,038,586 |
Media 2.4% |
New York Times Co. (The), Class A | 139,038 | 5,982,805 |
Nexstar Media Group, Inc. | 18,193 | 2,911,972 |
| | 8,894,777 |
Oil, Gas & Consumable Fuels 0.9% |
EQT Corp. | 85,843 | 3,441,446 |
Pharmaceuticals 0.3% |
EyePoint Pharmaceuticals, Inc. (a) | 68,440 | 1,204,544 |
Semiconductors & Semiconductor Equipment 6.1% |
Entegris, Inc. | 95,790 | 12,732,407 |
Lattice Semiconductor Corp. (a) | 90,063 | 6,178,322 |
Power Integrations, Inc. | 52,469 | 3,500,731 |
| | 22,411,460 |
Software 15.5% |
ACI Worldwide, Inc. (a) | 98,350 | 3,353,735 |
Braze, Inc., Class A (a) | 83,267 | 3,488,887 |
Dolby Laboratories, Inc., Class A | 61,092 | 4,744,405 |
Gitlab, Inc., Class A (a) | 128,931 | 6,765,010 |
HubSpot, Inc. (a) | 19,147 | 11,581,446 |
Informatica, Inc., Class A (a) | 164,130 | 5,083,106 |
JFrog Ltd. (a) | 166,392 | 6,635,713 |
Procore Technologies, Inc. (a) | 77,531 | 5,304,671 |
Tyler Technologies, Inc. (a) | 21,455 | 9,902,555 |
| | 56,859,528 |
Specialty Retail 1.4% |
Lithia Motors, Inc. | 20,667 | 5,257,271 |
| Shares | | Value |
|
Textiles, Apparel & Luxury Goods 3.0% |
Deckers Outdoor Corp. (a) | 6,272 | | $ 5,133,444 |
Tapestry, Inc. | 151,872 | | 6,062,730 |
| | | 11,196,174 |
Total Common Stocks (Cost $312,718,179) | | | 358,686,409 |
Short-Term Investments 2.3% |
Affiliated Investment Company 2.2% |
MainStay U.S. Government Liquidity Fund, 5.242% (c) | 7,965,911 | | 7,965,911 |
Unaffiliated Investment Company 0.1% |
Invesco Government & Agency Portfolio, 5.309% (c)(d) | 445,500 | | 445,500 |
Total Short-Term Investments (Cost $8,411,411) | | | 8,411,411 |
Total Investments (Cost $321,129,590) | 99.9% | | 367,097,820 |
Other Assets, Less Liabilities | 0.1 | | 199,312 |
Net Assets | 100.0% | | $ 367,297,132 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry classifications may be different than those used for compliance monitoring purposes. |
(a) | Non-income producing security. |
(b) | All or a portion of this security was held on loan. As of April 30, 2024, the aggregate market value of securities on loan was $430,272. The Fund received cash collateral with a value of $445,500. (See Note 2(G)) |
(c) | Current yield as of April 30, 2024. |
(d) | Represents a security purchased with cash collateral received for securities on loan. |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 8,801 | $ 116,920 | $ (117,755) | $ — | $ — | $ 7,966 | $ 343 | $ — | 7,966 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay Fiera SMID Growth Fund |
Abbreviation(s): |
ADR—American Depositary Receipt |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | $ 358,686,409 | | $ — | | $ — | | $ 358,686,409 |
Short-Term Investments | | | | | | | |
Affiliated Investment Company | 7,965,911 | | — | | — | | 7,965,911 |
Unaffiliated Investment Company | 445,500 | | — | | — | | 445,500 |
Total Short-Term Investments | 8,411,411 | | — | | — | | 8,411,411 |
Total Investments in Securities | $ 367,097,820 | | $ — | | $ — | | $ 367,097,820 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $313,163,679) including securities on loan of $430,272 | $359,131,909 |
Investment in affiliated investment companies, at value (identified cost $7,965,911) | 7,965,911 |
Receivables: | |
Fund shares sold | 687,909 |
Dividends | 120,207 |
Other assets | 97,335 |
Total assets | 368,003,271 |
Liabilities |
Cash collateral received for securities on loan | 445,500 |
Due to custodian | 61 |
Payables: | |
Manager (See Note 3) | 216,506 |
Fund shares redeemed | 28,938 |
Custodian | 5,540 |
Professional fees | 2,991 |
Transfer agent (See Note 3) | 2,843 |
NYLIFE Distributors (See Note 3) | 2,169 |
Accrued expenses | 1,591 |
Total liabilities | 706,139 |
Net assets | $367,297,132 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 21,757 |
Additional paid-in-capital | 317,795,250 |
| 317,817,007 |
Total distributable earnings (loss) | 49,480,125 |
Net assets | $367,297,132 |
Class A | |
Net assets applicable to outstanding shares | $ 7,306,744 |
Shares of beneficial interest outstanding | 444,406 |
Net asset value per share outstanding | $ 16.44 |
Maximum sales charge (5.50% of offering price) | 0.96 |
Maximum offering price per share outstanding | $ 17.40 |
Class C | |
Net assets applicable to outstanding shares | $ 882,076 |
Shares of beneficial interest outstanding | 53,969 |
Net asset value and offering price per share outstanding | $ 16.34 |
Class I | |
Net assets applicable to outstanding shares | $150,163,654 |
Shares of beneficial interest outstanding | 8,891,580 |
Net asset value and offering price per share outstanding | $ 16.89 |
Class R6 | |
Net assets applicable to outstanding shares | $208,944,658 |
Shares of beneficial interest outstanding | 12,366,749 |
Net asset value and offering price per share outstanding | $ 16.90 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay Fiera SMID Growth Fund |
Statements of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $2,189) | $ 865,451 |
Dividends-affiliated | 343,091 |
Securities lending, net | 1,129 |
Total income | 1,209,671 |
Expenses | |
Manager (See Note 3) | 1,170,666 |
Transfer agent (See Note 3) | 56,536 |
Registration | 49,246 |
Professional fees | 20,847 |
Custodian | 9,991 |
Distribution/Service—Class A (See Note 3) | 4,039 |
Distribution/Service—Class C (See Note 3) | 2,819 |
Shareholder communication | 2,715 |
Trustees | 2,684 |
Miscellaneous | (17,570) |
Total expenses before waiver/reimbursement | 1,301,973 |
Expense waiver/reimbursement from Manager (See Note 3) | (16,205) |
Net expenses | 1,285,768 |
Net investment income (loss) | (76,097) |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on unaffiliated investments | 4,373,218 |
Net change in unrealized appreciation (depreciation) on unaffiliated investments | 48,618,311 |
Net realized and unrealized gain (loss) | 52,991,529 |
Net increase (decrease) in net assets resulting from operations | $52,915,432 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited), the period April 1, 2023 through October 31, 2023 and the year ended March 31, 2023
| Six months ended April 30, 2024 | Period April 1, 2023 through October 31, 2023(a) | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | | |
Net investment income (loss) | $ (76,097) | $ (117,610) | $ (226,153) |
Net realized gain (loss) | 4,373,218 | 5,510,547 | 2,498,316 |
Net change in unrealized appreciation (depreciation) | 48,618,311 | (18,985,744) | (19,943,100) |
Net increase (decrease) in net assets resulting from operations | 52,915,432 | (13,592,807) | (17,670,937) |
Distributions to shareholders: |
Class A | (21,383) | — | (15,686) |
Class C | (2,955) | — | — |
Class I | (2,469,988) | — | (10,744,946) |
Class R6 | (4,466,294) | — | — |
Total distributions to shareholders | (6,960,620) | — | (10,760,632) |
Capital share transactions: | | | |
Net proceeds from sales of shares | 132,376,172 | 166,532,260 | 10,029,361 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 6,675,155 | — | 9,770,035 |
Cost of shares redeemed | (33,690,253) | (11,007,782) | (40,845,009) |
Increase (decrease) in net assets derived from capital share transactions | 105,361,074 | 155,524,478 | (21,045,613) |
Net increase (decrease) in net assets | 151,315,886 | 141,931,671 | (49,477,182) |
Net Assets |
Beginning of period | 215,981,246 | 74,049,575 | 123,526,757 |
End of period | $367,297,132 | $215,981,246 | $ 74,049,575 |
(a) | The Fund changed its fiscal year end from March 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.
14 | MainStay Fiera SMID Growth Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1 2023 through October 31, | | Year Ended March 31, |
Class A | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.78 | | $ 13.96 | | $ 19.12 | | $ 20.85 | | $ 12.68 | | $ 16.71 | | $ 21.20 |
Net investment income (loss) | (0.03)(b) | | (0.04)(b) | | (0.08)(b) | | (0.12)(b) | | (0.15)(b) | | (0.12)(b) | | (0.11) |
Net realized and unrealized gain (loss) | 3.11 | | (0.14) | | (2.79) | | 0.80 | | 12.52 | | (2.00) | | (0.38) |
Total from investment operations | 3.08 | | (0.18) | | (2.87) | | 0.68 | | 12.37 | | (2.12) | | (0.49) |
Less distributions: | | | | | | | | | | | | | |
From net realized gain on investments | (0.42) | | — | | (2.29) | | (2.41) | | (4.20) | | (1.91) | | (4.00) |
Net asset value at end of period | $ 16.44 | | $ 13.78 | | $ 13.96 | | $ 19.12 | | $ 20.85 | | $ 12.68 | | $ 16.71 |
Total investment return | 22.58%(c) | | (1.29)%(c) | | (14.38)% (d)(e) | | 2.64% (d)(e) | | 99.38% (d)(e) | | (15.36)% (d)(e) | | 2.44% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | (0.36)%†† | | (0.47)%†† | | (0.52)% (f)(g) | | (0.55)% (f)(g) | | (0.78)% (f)(g) | | (0.70)% (f)(g) | | (0.73)% (f)(g) |
Net expenses | 1.13%††(h) | | 1.19%††(h) | | 1.30% (f)(g) | | 1.30% (f)(g) | | 1.30% (f)(g) | | 1.30% (f)(g) | | 1.30% (f)(g) |
Expenses (before waiver/reimbursement) | 1.13%††(h) | | 1.35%††(h) | | 1.61%(g) | | 1.40%(g) | | 1.41%(g) | | 1.36%(g) | | 1.36%(g) |
Portfolio turnover rate | 16% | | 24% | | 88%(e) | | 24%(e) | | 53%(e) | | 38%(e) | | 50%(e) |
Net assets at end of period (in 000's) | $ 7,307 | | $ 446 | | $ 122 | | $ 108 | | $ 70 | | $ 11 | | $ 11 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
15
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | July 24, 2023^ through October 31, |
Class C | 2024 * | | 2023 |
Net asset value at beginning of period | $ 13.75 | | $ 15.58 |
Net investment income (loss) (a) | (0.09) | | (0.05) |
Net realized and unrealized gain (loss) | 3.10 | | (1.78) |
Total from investment operations | 3.01 | | (1.83) |
Less distributions: | | | |
From net realized gain on investments | (0.42) | | — |
Net asset value at end of period | $ 16.34 | | $ 13.75 |
Total investment return (b) | 22.12% | | (11.75)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | (1.09)% | | (1.23)% |
Net expenses††(d) | 1.86% | | 2.05% |
Expenses (before waiver/reimbursement)††(d) | 1.86% | | 2.12% |
Portfolio turnover rate | 16% | | 24% |
Net assets at end of period (in 000’s) | $ 882 | | $ 28 |
* | Unaudited. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
16 | MainStay Fiera SMID Growth Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1 2023 through October 31, | | Year Ended March 31, |
Class I | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 14.12 | | $ 14.28 | | $ 19.45 | | $ 21.13 | | $ 12.78 | | $ 16.79 | | $ 21.21 |
Net investment income (loss) | (0.01)(b) | | (0.02)(b) | | (0.04)(b) | | (0.06)(b) | | (0.10)(b) | | (0.08)(b) | | (0.10) |
Net realized and unrealized gain (loss) | 3.20 | | (0.14) | | (2.84) | | 0.79 | | 12.65 | | (2.02) | | (0.32) |
Total from investment operations | 3.19 | | (0.16) | | (2.88) | | 0.73 | | 12.55 | | (2.10) | | (0.42) |
Less distributions: | | | | | | | | | | | | | |
From net realized gain on investments | (0.42) | | — | | (2.29) | | (2.41) | | (4.20) | | (1.91) | | (4.00) |
Net asset value at end of period | $ 16.89 | | $ 14.12 | | $ 14.28 | | $ 19.45 | | $ 21.13 | | $ 12.78 | | $ 16.79 |
Total investment return | 22.82%(c) | | (1.12)%(c) | | (14.18)% (d)(e) | | 2.85% (d)(e) | | 100.06% (d)(e) | | (15.16)% (d)(e) | | 2.81% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | (0.08)%†† | | (0.25)%†† | | (0.27)% (f)(g) | | (0.30)% (f)(g) | | (0.53)% (f)(g) | | (0.45)% (f)(g) | | (0.49)% (f)(g) |
Net expenses | 0.85%††(h) | | 0.95%††(h) | | 1.05% (f)(g) | | 1.05% (f)(g) | | 1.05% (f)(g) | | 1.05% (f)(g) | | 1.05% (f)(g) |
Expenses (before waiver/reimbursement) | 0.88%††(h) | | 1.17%††(h) | | 1.36%(g) | | 1.15%(g) | | 1.16%(g) | | 1.11%(g) | | 1.11%(g) |
Portfolio turnover rate | 16% | | 24% | | 88%(e) | | 24%(e) | | 53%(e) | | 38%(e) | | 50%(e) |
Net assets at end of period (in 000's) | $ 150,164 | | $ 85,042 | | $ 73,927 | | $ 123,419 | | $ 149,608 | | $ 108,356 | | $ 190,348 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(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. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | July 24, 2023^ through October 31, |
Class R6 | 2024 * | | 2023 |
Net asset value at beginning of period | $ 14.13 | | $ 15.96 |
Net investment income (loss) (a) | (0.00)‡ | | 0.00‡ |
Net realized and unrealized gain (loss) | 3.19 | | (1.83) |
Total from investment operations | 3.19 | | (1.83) |
Less distributions: | | | |
From net realized gain on investments | (0.42) | | — |
Net asset value at end of period | $ 16.90 | | $ 14.13 |
Total investment return (b) | 22.81% | | (11.47)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | (0.02)% | | 0.00%‡‡ |
Net expenses††(d) | 0.80% | | 0.84% |
Expenses (before waiver/reimbursement)††(d) | 0.80% | | 0.86% |
Portfolio turnover rate | 16% | | 24% |
Net assets at end of period (in 000’s) | $ 208,945 | | $ 130,464 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
‡‡ | Less than 0.01%. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
18 | MainStay Fiera SMID Growth Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Fiera SMID Growth Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The Fund is successor to the Fiera Capital Small/Mid Cap Growth Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Fiera Capital, Inc. served as the investment advisor. The financial statements of the Fund reflect the historical results of corresponding shares of the Predecessor Fund through its reorganization on July 24, 2023. Upon completion of the reorganization, the Class A and Class I shares of the Fund assumed the performance, financial and other information of the corresponding shares of the Predecessor Fund. All information provided for periods prior to July 24, 2023, refers to the Predecessor Fund.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | February 12, 2018 |
Class C | July 24, 2023 |
Class I | June 29, 2012 |
Class R6 | July 24, 2023 |
Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C shares convert to either Class A shares at the end of the calendar quarter eight years after the date they were purchased. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek long-term capital growth.
Effective at the close of business on July 21, 2023, the Fund changed its fiscal and tax year end from March 31 to October 31.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation
Notes to Financial Statements (Unaudited) (continued)
materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase are valued using the latest bid prices or using
20 | MainStay Fiera SMID Growth Fund |
valuations based on a matrix system (which considers such factors as security prices, yields, maturities and ratings), both as furnished by independent pricing services. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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 from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a
Notes to Financial Statements (Unaudited) (continued)
borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(H) Market Capitalization Risk. Investments in securities issued by small- or mid-cap companies, will be subject to the risks associated with securities issued by companies of the applicable market capitalization. Securities of small-cap and mid-cap companies may be subject to greater price volatility, significantly lower trading volumes, cyclical, static or moderate growth prospects and greater spreads between their bid and ask prices than securities of larger companies. Smaller capitalization companies frequently rely on narrower product lines and niche markets and may be more vulnerable to adverse business or market developments. There is a risk that the securities issued by companies of a certain market capitalization may underperform the broader market at any given time.
(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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. Fiera Capital, Inc. (“Fiera” or the “Subadvisor”), a registered investment adviser, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund.
Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and Fiera, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.75% of the Fund's average daily net assets. During the six-month period ended April 30, 2024, the effective management fee rate was 0.75% of the Fund's average daily net assets, exclusive of any applicable waivers/reimbursements.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that the Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 1.15%; Class C, 2.05%; Class I, 0.85%; and Class R6, 0.84%. This agreement will remain in effect until February 28, 2026, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $1,170,666 and waived fees and/or reimbursed expenses in the amount of $16,205 and paid the Subadvisor fees in the amount of $586,574.
JPMorgan 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A Plan, the Distributor receives a monthly fee from the Class A shares at an annual rate of 0.25% of the average daily net assets of the Class A shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, Class C
22 | MainStay Fiera SMID Growth Fund |
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, for a total 12b-1 fee of 1.00%. Class I and Class R6 shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A shares during the six-month period ended April 30, 2024, were $10,469.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class C shares during the six-month period ended April 30, 2024, of $378.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until February 28, 2026, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 1,326 | $— |
Class C | 192 | — |
Class I | 51,252 | — |
Class R6 | 3,766 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations.
This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class C | $26,768 | 3.0% |
Class R6 | 27,016 | 0.0‡ |
‡ | Less than one-tenth of a percent. |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $321,900,761 | $58,577,827 | $(13,380,768) | $45,197,059 |
During the period from April 1, 2023 through October 31, 2023 and the years ended March 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 (a) | 2023 |
Distributions paid from: | | |
Ordinary Income | $— | $ 1,125,818 |
Long-Term Capital Gains | — | 9,634,814 |
Total | $— | $10,760,632 |
(a) | The Fund changed its fiscal year end from March 31 to October 31. |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the
Notes to Financial Statements (Unaudited) (continued)
agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $146,732 and $47,749, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024, the period April 1, 2023 through October 31, 2023 and the year ended March 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 439,702 | $ 7,303,418 |
Shares issued to shareholders in reinvestment of distributions | 1,416 | 21,383 |
Shares redeemed | (29,095) | (481,101) |
Net increase (decrease) | 412,023 | $ 6,843,700 |
Period ended October 31, 2023:(a)(b) | | |
Shares sold | 25,254 | $ 367,597 |
Shares redeemed | (1,636) | (25,233) |
Net increase (decrease) | 23,618 | $ 342,364 |
Year ended March 31, 2023:(a) | | |
Shares sold | 3,267 | $ 52,602 |
Shares issued to shareholders in reinvestment of distributions | 1,182 | 15,686 |
Shares redeemed | (1,306) | (20,731) |
Net increase (decrease) | 3,143 | $ 47,557 |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 55,109 | $ 893,557 |
Shares issued to shareholders in reinvestment of distributions | 44 | 662 |
Shares redeemed | (3,232) | (55,559) |
Net increase (decrease) | 51,921 | $ 838,660 |
Period ended October 31, 2023:(c) | | |
Shares sold | 2,048 | $ 31,523 |
Net increase (decrease) | 2,048 | $ 31,523 |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 3,776,393 | $ 63,211,973 |
Shares issued to shareholders in reinvestment of distributions | 141,176 | 2,186,816 |
Shares redeemed | (1,047,204) | (17,272,977) |
Net increase (decrease) | 2,870,365 | $ 48,125,812 |
Period ended October 31, 2023:(b)(d) | | |
Shares sold | 1,564,623 | $ 23,621,626 |
Shares redeemed | (718,580) | (10,881,720) |
Net increase (decrease) | 846,043 | $ 12,739,906 |
Year ended March 31, 2023:(d) | | |
Shares sold | 640,282 | $ 9,976,759 |
Shares issued to shareholders in reinvestment of distributions | 718,817 | 9,754,349 |
Shares redeemed | (2,528,183) | (40,824,278) |
Net increase (decrease) | (1,169,084) | $ (21,093,170) |
|
24 | MainStay Fiera SMID Growth Fund |
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 3,787,759 | $ 60,967,224 |
Shares issued to shareholders in reinvestment of distributions | 288,148 | 4,466,294 |
Shares redeemed | (945,027) | (15,880,616) |
Net increase (decrease) | 3,130,880 | $ 49,552,902 |
Period ended October 31, 2023:(c) | | |
Shares sold | 9,242,555 | $142,511,514 |
Shares redeemed | (6,686) | (100,829) |
Net increase (decrease) | 9,235,869 | $142,410,685 |
(a) | Investor Class converted to Class A on July 21, 2023. |
(b) | The Fund changed its fiscal year end from March 31 to October 31. |
(c) | The inception date of the class was July 24, 2023. |
(d) | Institutional Class converted to Class I on July 21, 2023. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
26 | MainStay Fiera SMID Growth Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
6641775 MS081-24 | MSFSG10-06/24 |
(NYLIM) NL549
MainStay PineStone International Equity Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Five Years | Since Inception | Gross Expense Ratio3 |
Class A Shares4 | Maximum 5.50% Initial Sales Charge | With sales charges | 9/29/2017 | 12.54% | 7.69% | 9.01% | 8.30% | 1.23% |
| | Excluding sales charges | | 19.09 | 7.69 | 9.01 | 8.30 | 1.23 |
Investor Class Shares | Maximum 5.00% Initial Sales Charge | With sales charges | 8/28/2023 | 18.87 | N/A | N/A | 4.63 | 1.61 |
| | Excluding sales charges | | 18.87 | N/A | N/A | 10.14 | 1.61 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 8/28/2023 | 17.47 | N/A | N/A | 8.60 | 2.36 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 18.47 | N/A | N/A | 9.60 | 2.36 |
Class I Shares4 | No Sales Charge | | 9/29/2017 | 19.25 | 8.02 | 9.23 | 8.53 | 0.98 |
Class P Shares | No Sales Charge | | 8/28/2023 | 19.26 | N/A | N/A | 10.60 | 0.90 |
Class R6 Shares4 | No Sales Charge | | 9/29/2017 | 19.27 | 8.07 | 9.44 | 8.73 | 0.90 |
1. | Effective at the close of business on August 25, 2023, the Fund changed its fiscal and tax year end from March 31 to October 31. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Performance figures for Class A shares, Class I shares and Class R6 shares reflect the historical performance of the then-existing Investor Class shares, Institutional Class shares and Class Z shares, respectively, of the Fiera Capital International Equity Fund (the "Predecessor Fund"), which was subject to a different fee structure for periods prior to August 28, 2023. The Fund commenced operations on August 28, 2023. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Since Inception |
MSCI EAFE® Index (Net)2 | 18.63% | 9.28% | 6.18% | 4.91% |
Morningstar Foreign Large Growth Category Average3 | 18.78 | 7.07 | 5.57 | 4.02 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | The Fund has selected the MSCI EAFE® Index (Net), which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The MSCI EAFE® Index (Net) consists of international stocks representing the developed world outside of North America. |
3. | The Morningstar Foreign Large Growth Category Average is representative of funds that focus on high-priced growth stocks, mainly outside of the United States. Most of these funds divide their assets among a dozen or more developed markets, including Japan, Britain, France, and Germany. These funds primarily invest in stocks that have market caps in the top 70% of each economically integrated market and will have less than 20% of assets invested in U.S. stocks. Results are based on average total returns of similar funds with all dividends 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 PineStone International Equity Fund |
Cost in Dollars of a $1,000 Investment in MainStay PineStone International 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,190.90 | $ 6.05 | $1,019.34 | $ 5.57 | 1.11% |
Investor Class Shares | $1,000.00 | $1,188.70 | $ 8.11 | $1,017.45 | $ 7.47 | 1.49% |
Class C Shares | $1,000.00 | $1,184.70 | $12.17 | $1,013.72 | $11.22 | 2.24% |
Class I Shares | $1,000.00 | $1,192.50 | $ 4.52 | $1,020.74 | $ 4.17 | 0.83% |
Class P Shares | $1,000.00 | $1,192.60 | $ 4.42 | $1,020.84 | $ 4.07 | 0.81% |
Class R6 Shares | $1,000.00 | $1,192.70 | $ 4.36 | $1,020.88 | $ 4.02 | 0.80% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Country Composition as of April 30, 2024 (Unaudited)
United Kingdom | 24.0% |
France | 16.4 |
United States | 11.2 |
Switzerland | 9.9 |
Taiwan | 7.7 |
Denmark | 7.6 |
Japan | 6.8 |
Germany | 5.1 |
Netherlands | 4.0% |
Canada | 3.1 |
India | 1.8 |
Australia | 1.8 |
Other Assets, Less Liabilities | 0.6 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR |
2. | Novo Nordisk A/S, Class B |
3. | London Stock Exchange Group plc |
4. | LVMH Moet Hennessy Louis Vuitton SE |
5. | Nestle SA (Registered) |
6. | InterContinental Hotels Group plc |
7. | Air Liquide SA |
8. | ASML Holding NV |
9. | EssilorLuxottica SA |
10. | Keyence Corp. |
8 | MainStay PineStone International Equity Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 98.7% |
Australia 1.8% |
Commonwealth Bank of Australia (Banks) | 113,464 | $ 8,372,040 |
Canada 3.1% |
Canadian National Railway Co. (Ground Transportation) | 119,909 | 14,561,749 |
Denmark 7.6% |
Novo Nordisk A/S, Class B (Pharmaceuticals) | 277,680 | 35,686,176 |
France 16.4% |
Air Liquide SA (Chemicals) | 99,326 | 19,445,410 |
EssilorLuxottica SA (Health Care Equipment & Supplies) | 88,746 | 18,978,861 |
L'Oreal SA (Personal Care Products) | 34,730 | 16,223,295 |
LVMH Moet Hennessy Louis Vuitton SE (Textiles, Apparel & Luxury Goods) | 27,802 | 22,379,949 |
| | 77,027,515 |
Germany 5.1% |
Rational AG (Machinery) | 9,240 | 7,920,876 |
SAP SE (Software) | 88,310 | 15,989,330 |
| | 23,910,206 |
India 1.8% |
HDFC Bank Ltd., ADR (Banks) | 145,718 | 8,393,357 |
Japan 6.8% |
Keyence Corp. (Electronic Equipment, Instruments & Components) | 38,320 | 16,974,081 |
Shimano, Inc. (Leisure Products) | 56,421 | 9,168,581 |
Unicharm Corp. (Household Products) | 198,311 | 5,897,709 |
| | 32,040,371 |
Netherlands 4.0% |
ASML Holding NV (Semiconductors & Semiconductor Equipment) | 21,785 | 18,988,302 |
Switzerland 9.9% |
Alcon, Inc. (Health Care Equipment & Supplies) | 142,234 | 10,921,930 |
Cie Financiere Richemont SA (Registered) (Textiles, Apparel & Luxury Goods) | 108,965 | 15,078,843 |
Geberit AG (Registered) (Building Products) | 15,583 | 8,321,234 |
Schindler Holding AG (Machinery) | 49,832 | 12,401,647 |
| | 46,723,654 |
| Shares | | Value |
|
Taiwan 7.7% |
Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR (Semiconductors & Semiconductor Equipment) | 261,834 | | $ 35,960,282 |
United Kingdom 24.0% |
Ashtead Group plc (Trading Companies & Distributors) | 138,414 | | 10,005,327 |
Bunzl plc (Trading Companies & Distributors) | 221,028 | | 8,453,072 |
Diageo plc (Beverages) | 391,811 | | 13,511,004 |
Howden Joinery Group plc (Trading Companies & Distributors) | 1,062,213 | | 11,538,354 |
InterContinental Hotels Group plc (Hotels, Restaurants & Leisure) | 200,382 | | 19,524,638 |
Intertek Group plc (Professional Services) | 156,310 | | 9,595,007 |
London Stock Exchange Group plc (Capital Markets) | 212,580 | | 23,422,097 |
Spirax-Sarco Engineering plc (Machinery) | 72,541 | | 7,995,588 |
Unilever plc (Personal Care Products) | 168,492 | | 8,716,659 |
| | | 112,761,746 |
United States 10.5% |
Aon plc, Class A (Insurance) | 26,787 | | 7,554,202 |
Nestle SA (Registered) (Food Products) | 214,416 | | 21,507,916 |
Roche Holding AG (Pharmaceuticals) | 21,276 | | 5,090,056 |
S&P Global, Inc. (Capital Markets) | 36,183 | | 15,045,977 |
| | | 49,198,151 |
Total Common Stocks (Cost $371,945,391) | | | 463,623,549 |
Short-Term Investment 0.7% |
Affiliated Investment Company 0.7% |
United States 0.7% |
MainStay U.S. Government Liquidity Fund, 5.242% (a) | 3,340,212 | | 3,340,212 |
Total Short-Term Investment (Cost $3,340,212) | | | 3,340,212 |
Total Investments (Cost $375,285,603) | 99.4% | | 466,963,761 |
Other Assets, Less Liabilities | 0.6 | | 2,872,543 |
Net Assets | 100.0% | | $ 469,836,304 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
(a) | Current yield as of April 30, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 1,961 | $ 70,265 | $ (68,886) | $ — | $ — | $ 3,340 | $ 63 | $ — | 3,340 |
Abbreviation(s): |
ADR—American Depositary Receipt |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | | | | | | | |
Australia | $ — | | $ 8,372,040 | | $ — | | $ 8,372,040 |
Denmark | — | | 35,686,176 | | — | | 35,686,176 |
France | — | | 77,027,515 | | — | | 77,027,515 |
Germany | — | | 23,910,206 | | — | | 23,910,206 |
Japan | — | | 32,040,371 | | — | | 32,040,371 |
Netherlands | — | | 18,988,302 | | — | | 18,988,302 |
Switzerland | — | | 46,723,654 | | — | | 46,723,654 |
United Kingdom | — | | 112,761,746 | | — | | 112,761,746 |
United States | 22,600,179 | | 26,597,972 | | — | | 49,198,151 |
All Other Countries | 58,915,388 | | — | | — | | 58,915,388 |
Total Common Stocks | 81,515,567 | | 382,107,982 | | — | | 463,623,549 |
Short-Term Investment | | | | | | | |
Affiliated Investment Company | 3,340,212 | | — | | — | | 3,340,212 |
Total Investments in Securities | $ 84,855,779 | | $ 382,107,982 | | $ — | | $ 466,963,761 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay PineStone International Equity Fund |
The table below sets forth the diversification of the Fund’s investments by industry.
Industry Diversification
| Value | | Percent †^ |
Banks | $ 16,765,397 | | 3.6% |
Beverages | 13,511,004 | | 2.9 |
Building Products | 8,321,234 | | 1.8 |
Capital Markets | 38,468,074 | | 8.2 |
Chemicals | 19,445,410 | | 4.1 |
Electronic Equipment, Instruments & Components | 16,974,081 | | 3.6 |
Food Products | 21,507,916 | | 4.6 |
Ground Transportation | 14,561,749 | | 3.1 |
Health Care Equipment & Supplies | 29,900,791 | | 6.4 |
Hotels, Restaurants & Leisure | 19,524,638 | | 4.2 |
Household Products | 5,897,709 | | 1.2 |
Insurance | 7,554,202 | | 1.6 |
Leisure Products | 9,168,581 | | 1.9 |
Machinery | 28,318,111 | | 6.0 |
Personal Care Products | 24,939,954 | | 5.3 |
Pharmaceuticals | 40,776,232 | | 8.7 |
Professional Services | 9,595,007 | | 2.0 |
Semiconductors & Semiconductor Equipment | 54,948,584 | | 11.7 |
Software | 15,989,330 | | 3.4 |
Textiles, Apparel & Luxury Goods | 37,458,792 | | 8.0 |
Trading Companies & Distributors | 29,996,753 | | 6.4 |
| 463,623,549 | | 98.7 |
Short-Term Investment | 3,340,212 | | 0.7 |
Other Assets, Less Liabilities | 2,872,543 | | 0.6 |
Net Assets | $469,836,304 | | 100.0% |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in unaffiliated securities, at value (identified cost $371,945,391) | $463,623,549 |
Investment in affiliated investment companies, at value (identified cost $3,340,212) | 3,340,212 |
Cash denominated in foreign currencies (identified cost $340,234) | 336,831 |
Receivables: | |
Dividends | 2,556,199 |
Fund shares sold | 427,360 |
Other assets | 149,380 |
Total assets | 470,433,531 |
Liabilities |
Due to custodian | 3,733 |
Payables: | |
Manager (See Note 3) | 277,924 |
Fund shares redeemed | 151,833 |
Transfer agent (See Note 3) | 103,964 |
Custodian | 19,137 |
NYLIFE Distributors (See Note 3) | 17,329 |
Professional fees | 14,328 |
Shareholder communication | 4,501 |
Accrued expenses | 4,478 |
Total liabilities | 597,227 |
Net assets | $469,836,304 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 29,222 |
Additional paid-in-capital | 406,040,624 |
| 406,069,846 |
Total distributable earnings (loss) | 63,766,458 |
Net assets | $469,836,304 |
Class A | |
Net assets applicable to outstanding shares | $ 68,174,629 |
Shares of beneficial interest outstanding | 4,256,863 |
Net asset value per share outstanding | $ 16.02 |
Maximum sales charge (5.50% of offering price) | 0.93 |
Maximum offering price per share outstanding | $ 16.95 |
Investor Class | |
Net assets applicable to outstanding shares | $ 14,095,536 |
Shares of beneficial interest outstanding | 881,606 |
Net asset value per share outstanding | $ 15.99 |
Maximum sales charge (5.00% of offering price) | 0.84 |
Maximum offering price per share outstanding | $ 16.83 |
Class C | |
Net assets applicable to outstanding shares | $ 780,015 |
Shares of beneficial interest outstanding | 48,918 |
Net asset value and offering price per share outstanding | $ 15.95 |
Class I | |
Net assets applicable to outstanding shares | $223,689,601 |
Shares of beneficial interest outstanding | 13,922,400 |
Net asset value and offering price per share outstanding | $ 16.07 |
Class P | |
Net assets applicable to outstanding shares | $ 27,653 |
Shares of beneficial interest outstanding | 1,722 |
Net asset value and offering price per share outstanding | $ 16.06 |
Class R6 | |
Net assets applicable to outstanding shares | $163,068,870 |
Shares of beneficial interest outstanding | 10,110,773 |
Net asset value and offering price per share outstanding | $ 16.13 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay PineStone International Equity Fund |
Statements of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $432,183) | $ 3,797,105 |
Dividends-affiliated | 63,200 |
Securities lending, net | 1,777 |
Total income | 3,862,082 |
Expenses | |
Manager (See Note 3) | 1,726,470 |
Transfer agent (See Note 3) | 145,398 |
Distribution/Service—Class A (See Note 3) | 81,942 |
Distribution/Service—Investor Class (See Note 3) | 17,755 |
Distribution/Service—Class C (See Note 3) | 3,880 |
Distribution/Service—Class R2 (See Note 3)(a) | 137 |
Distribution/Service—Class R3 (See Note 3)(a) | 962 |
Registration | 77,922 |
Shareholder communication | 40,524 |
Custodian | 27,450 |
Professional fees | 24,674 |
Trustees | 4,582 |
Shareholder service (See Note 3) | 294 |
Miscellaneous | 30,139 |
Total expenses before waiver/reimbursement | 2,182,129 |
Expense waiver/reimbursement from Manager (See Note 3) | (264,650) |
Net expenses | 1,917,479 |
Net investment income (loss) | 1,944,603 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions(b) | 1,135,730 |
Foreign currency transactions | (11,421) |
Net realized gain (loss) | 1,124,309 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 64,921,921 |
Translation of other assets and liabilities in foreign currencies | (4,673) |
Net change in unrealized appreciation (depreciation) | 64,917,248 |
Net realized and unrealized gain (loss) | 66,041,557 |
Net increase (decrease) in net assets resulting from operations | $67,986,160 |
(a) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
(b) | Realized gain (loss) on security transactions recorded net of foreign capital gains tax in the amount of $103,125. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited), the period April 1, 2023 through October 31, 2023 and the year ended March 31, 2023
| Six months ended April 30, 2024 | Period April 1, 2023 through October 31, 2023(a) | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | | |
Net investment income (loss) | $ 1,944,603 | $ 1,588,269 | $ 1,704,874 |
Net realized gain (loss) | 1,124,309 | 2,061,823 | (4,419,572) |
Net change in unrealized appreciation (depreciation) | 64,917,248 | (30,009,563) | (1,721,478) |
Net increase (decrease) in net assets resulting from operations | 67,986,160 | (26,359,471) | (4,436,176) |
Distributions to shareholders: |
Class A | (217,763) | (5,619) | (26,566) |
Investor Class | (39,661) | — | — |
Class C | (376) | — | — |
Class I | (811,354) | (347,096) | (1,392,547) |
Class P | (120) | — | — |
Class R1(b) | (599) | — | — |
Class R2(b) | (631) | — | — |
Class R3(b) | (1,688) | — | — |
Class R6 | (512,622) | (101,817) | (371,742) |
Total distributions to shareholders | (1,584,814) | (454,532) | (1,790,855) |
Capital share transactions: | | | |
Net proceeds from sales of shares | 82,793,384 | 38,109,004 | 48,942,377 |
Net asset value of shares issued in connection with the acquisition of MainStay MacKay International Equity Fund | — | 131,906,581 | — |
Net asset value of shares issued to shareholders in reinvestment of distributions | 1,544,333 | 418,920 | 1,710,586 |
| Six months ended April 30, 2024 | Period April 1, 2023 through October 31, 2023(a) | Year Ended March 31, 2023 |
Cost of shares redeemed | $ (37,546,194) | $ (28,443,427) | $ (66,334,154) |
Increase (decrease) in net assets derived from capital share transactions | 46,791,523 | 141,991,078 | (15,681,191) |
Net increase (decrease) in net assets | 113,192,869 | 115,177,075 | (21,908,222) |
Net Assets |
Beginning of period | 356,643,435 | 241,466,360 | 263,374,582 |
End of period | $469,836,304 | $356,643,435 | $241,466,360 |
(a) | The Fund changed its fiscal year end from March 31 to October 31. |
(b) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 | MainStay PineStone International Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1, 2023 through October 31, | | Year Ended March 31, |
Class A | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.50 | | $ 14.51 | | $ 14.70 | | $ 14.06 | | $ 9.92 | | $ 10.48 | | $ 10.24 |
Net investment income (loss) (b) | 0.05 | | 0.02 | | 0.07 | | 0.04 | | 0.03 | | 0.05 | | 0.08 |
Net realized and unrealized gain (loss) | 2.52 | | (1.02) | | (0.16) | | 0.65 | | 4.37 | | (0.50) | | 0.26 |
Total from investment operations | 2.57 | | (1.00) | | (0.09) | | 0.69 | | 4.40 | | (0.45) | | 0.34 |
Less distributions: | | | | | | | | | | | | | |
From net investment income | (0.05) | | (0.01) | | (0.10) | | (0.03) | | (0.04) | | (0.08) | | (0.08) |
From net realized gain on investments | — | | — | | — | | (0.02) | | (0.22) | | (0.03) | | (0.02) |
Total distributions | (0.05) | | (0.01) | | (0.10) | | (0.05) | | (0.26) | | (0.11) | | (0.10) |
Net asset value at end of period | $ 16.02 | | $ 13.50 | | $ 14.51 | | $ 14.70 | | $ 14.06 | | $ 9.92 | | $ 10.48 |
Total investment return | 19.09%(c) | | (6.89)%(c) | | (0.57)% (d)(e) | | 4.91% (d)(e) | | 44.38% (d)(e) | | (4.48)% (d)(e) | | 3.51% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | 0.63%†† | | 0.25%†† | | 0.50% (f)(g) | | 0.27% (f)(g) | | 0.19% (f)(g) | | 0.44% (f)(g) | | 0.83% (f)(g) |
Net expenses | 1.11%††(h) | | 1.21%††(h) | | 1.25% (f)(g) | | 1.25% (f)(g) | | 1.25% (f)(g) | | 1.25% (f)(g) | | 1.25% (f)(g) |
Expenses (before waiver/reimbursement) | 1.22%††(h) | | 1.36%††(h) | | 1.55%(g) | | 1.49%(g) | | 1.55%(g) | | 1.56%(g) | | 1.73%(g) |
Portfolio turnover rate | 4% | | 12% | | 11%(e) | | 2%(e) | | 12%(e) | | 8%(e) | | 38%(e) |
Net assets at end of period (in 000's) | $ 68,175 | | $ 56,733 | | $ 5,162 | | $ 2,260 | | $ 1,516 | | $ 324 | | $ 94 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
15
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Investor Class | 2024 * | | 2023 |
Net asset value at beginning of period | $ 13.49 | | $ 14.71 |
Net investment income (loss) (a) | 0.02 | | (0.01) |
Net realized and unrealized gain (loss) | 2.52 | | (1.21) |
Total from investment operations | 2.54 | | (1.22) |
Less distributions: | | | |
From net investment income | (0.04) | | — |
Net asset value at end of period | $ 15.99 | | $ 13.49 |
Total investment return (b) | 18.87% | | (8.29)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | 0.22% | | (0.32)% |
Net expenses††(d) | 1.49% | | 1.49% |
Expenses (before waiver/reimbursement)††(d) | 1.73% | | 1.61% |
Portfolio turnover rate | 4% | | 12% |
Net assets at end of period (in 000's) | $ 14,096 | | $ 12,660 |
* | Unaudited. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Class C | 2024 * | | 2023 |
Net asset value at beginning of period | $ 13.47 | | $ 14.71 |
Net investment income (loss) (a) | (0.04) | | (0.03) |
Net realized and unrealized gain (loss) | 2.53 | | (1.21) |
Total from investment operations | 2.49 | | (1.24) |
Less distributions: | | | |
From net investment income | (0.01) | | — |
Net asset value at end of period | $ 15.95 | | $ 13.47 |
Total investment return (b) | 18.47% | | (8.43)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | (0.51)% | | (1.06)% |
Net expenses††(d) | 2.24% | | 2.24% |
Expenses (before waiver/reimbursement)††(d) | 2.48% | | 2.36% |
Portfolio turnover rate | 4% | | 12% |
Net assets at end of period (in 000’s) | $ 780 | | $ 739 |
* | Unaudited. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
16 | MainStay PineStone International Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1, 2023 through October 31, | | Year Ended March 31, |
Class I | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.53 | | $ 14.53 | | $ 14.70 | | $ 14.06 | | $ 9.92 | | $ 10.48 | | $ 10.25 |
Net investment income (loss) (b) | 0.07 | | 0.09 | | 0.10 | | 0.08 | | 0.06 | | 0.08 | | 0.12 |
Net realized and unrealized gain (loss) | 2.53 | | (1.07) | | (0.16) | | 0.65 | | 4.34 | | (0.50) | | 0.24 |
Total from investment operations | 2.60 | | (0.98) | | (0.06) | | 0.73 | | 4.40 | | (0.42) | | 0.36 |
Less distributions: | | | | | | | | | | | | | |
From net investment income | (0.06) | | (0.02) | | (0.11) | | (0.07) | | (0.04) | | (0.11) | | (0.10) |
From net realized gain on investments | — | | — | | — | | (0.02) | | (0.22) | | (0.03) | | (0.03) |
Total distributions | (0.06) | | (0.02) | | (0.11) | | (0.09) | | (0.26) | | (0.14) | | (0.13) |
Net asset value at end of period | $ 16.07 | | $ 13.53 | | $ 14.53 | | $ 14.70 | | $ 14.06 | | $ 9.92 | | $ 10.48 |
Total investment return | 19.25%(c) | | (6.73)%(c) | | (0.33)% (d)(e) | | 5.16% (d)(e) | | 44.43% (d)(e) | | (4.23)% (d)(e) | | 3.72% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | 0.93%†† | | 1.03%†† | | 0.75% (f)(g) | | 0.52% (f)(g) | | 0.44% (f)(g) | | 0.69% (f)(g) | | 1.21% (f)(g) |
Net expenses | 0.83%††(h) | | 0.95%††(h) | | 1.00% (f)(g) | | 1.00% (f)(g) | | 1.00% (f)(g) | | 1.00% (f)(g) | | 1.00% (f)(g) |
Expenses (before waiver/reimbursement) | 0.97%††(h) | | 1.19%††(h) | | 1.30%(g) | | 1.24%(g) | | 1.30%(g) | | 1.31%(g) | | 1.48%(g) |
Portfolio turnover rate | 4% | | 12% | | 11%(e) | | 2%(e) | | 12%(e) | | 8%(e) | | 38%(e) |
Net assets at end of period (in 000's) | $ 223,690 | | $ 190,764 | | $ 196,962 | | $ 217,664 | | $ 160,421 | | $ 79,543 | | $ 45,193 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(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. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Class P | 2024 * | | 2023 |
Net asset value at beginning of period | $ 13.53 | | $ 14.73 |
Net investment income (loss) (a) | 0.07 | | 0.01 |
Net realized and unrealized gain (loss) | 2.53 | | (1.21) |
Total from investment operations | 2.60 | | (1.20) |
Less distributions: | | | |
From net investment income | (0.07) | | — |
Net asset value at end of period | $ 16.06 | | $ 13.53 |
Total investment return (b) | 19.26% | | (8.15)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | 0.93% | | 0.33% |
Net expenses††(d) | 0.81% | | 0.85% |
Expenses (before waiver/reimbursement)††(d) | 0.89% | | 0.91% |
Portfolio turnover rate | 4% | | 12% |
Net assets at end of period (in 000’s) | $ 28 | | $ 23 |
* | Unaudited. |
^ | Inception date. |
†† | 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 P shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
18 | MainStay PineStone International Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1, 2023 through October 31, | | Year Ended March 31, |
Class R6 | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 13.59 | | $ 14.60 | | $ 14.77 | | $ 14.12 | | $ 9.96 | | $ 10.52 | | $ 10.26 |
Net investment income (loss) (b) | 0.08 | | 0.08 | | 0.13 | | 0.11 | | 0.08 | | 0.10 | | 0.13 |
Net realized and unrealized gain (loss) | 2.53 | | (1.05) | | (0.16) | | 0.66 | | 4.36 | | (0.51) | | 0.26 |
Total from investment operations | 2.61 | | (0.97) | | (0.03) | | 0.77 | | 4.44 | | (0.41) | | 0.39 |
Less distributions: | | | | | | | | | | | | | |
From net investment income | (0.07) | | (0.04) | | (0.14) | | (0.10) | | (0.06) | | (0.12) | | (0.10) |
From net realized gain on investments | — | | — | | — | | (0.02) | | (0.22) | | (0.03) | | (0.03) |
Total distributions | (0.07) | | (0.04) | | (0.14) | | (0.12) | | (0.28) | | (0.15) | | (0.13) |
Net asset value at end of period | $ 16.13 | | $ 13.59 | | $ 14.60 | | $ 14.77 | | $ 14.12 | | $ 9.96 | | $ 10.52 |
Total investment return | 19.27%(c) | | (6.66)%(c) | | (0.10)% (d)(e) | | 5.39% (d)(e) | | 44.65% (d)(e) | | (4.07)% (d)(e) | | 4.02% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | 1.07%†† | | 0.98%†† | | 0.95% (f)(g) | | 0.72% (f)(g) | | 0.64% (f)(g) | | 0.89% (f)(g) | | 1.23% (f)(g) |
Net expenses | 0.80%††(h) | | 0.80%††(h) | | 0.80% (f)(g) | | 0.80% (f)(g) | | 0.80% (f)(g) | | 0.80% (f)(g) | | 0.80% (f)(g) |
Expenses (before waiver/reimbursement) | 0.90%††(h) | | 1.09%††(h) | | 1.30%(g) | | 1.24%(g) | | 1.30%(g) | | 1.31%(g) | | 1.48%(g) |
Portfolio turnover rate | 4% | | 12% | | 11%(e) | | 2%(e) | | 12%(e) | | 8%(e) | | 38%(e) |
Net assets at end of period (in 000's) | $ 163,069 | | $ 94,796 | | $ 39,343 | | $ 43,451 | | $ 41,229 | | $ 45,405 | | $ 57,026 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay PineStone International Equity Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The Fund is successor to the Fiera Capital International Equity Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Fiera Capital, Inc. served as the investment advisor. The financial statements of the Fund reflect the historical results of corresponding shares of the Predecessor Fund through its reorganization on August 28, 2023. Upon completion of the reorganization, the Class A and Class I shares of the Fund assumed the performance, financial and other information of the corresponding shares of the Predecessor Fund. All information provided for periods prior to August 28, 2023, refers to the Predecessor Fund.
Effective at the close of business on September 8, 2023, the Fund acquired the assets and liabilities of MainStay Mackay International Equity Fund (the “Reorganization”), which was a separate series of the Trust. The Reorganization was approved by the Board of Trustees of the Trust (the “Board”) and shareholders pursuant to an Agreement and Plan of Reorganization (the“Reorganization Agreement”). See Note 10 for additional information.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | September 29, 2017 |
Investor Class | August 28, 2023 |
Class C | August 28, 2023 |
Class I | September 29, 2017 |
Class P | August 28, 2023 |
Class R6 | September 29, 2017 |
Effective at the close of business on February 23, 2024, Class R1, R2 and R3 shares were liquidated.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge ("CDSC") of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are
offered at NAV without a sales charge. Depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Class P shares are generally only available to investors that have a relationship with PineStone Asset Management Inc. and are invested directly with the Fund. An investment minimum of $5,000,000 applies for Class P and no subsequent investment minimum. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A and Investor Class shares. Class I, Class R6 and Class P shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek capital appreciation.
Effective at the close of business on August 25, 2023, the Fund changed its fiscal and tax year end from March 31 to October 31.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC ("New York Life Investments" or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation
20 | MainStay PineStone International Equity Fund |
Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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
Notes to Financial Statements (Unaudited) (continued)
has entered into a restructuring; (iv) a security that has been delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Certain securities held by the Fund may principally trade in foreign markets. Events may occur between the time the foreign markets close and the time at which the Fund's 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 Valuation Designee conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Valuation Designee may, pursuant to the Valuation Procedures, adjust the value of the local price to reflect the estimated 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, certain 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 Valuation Procedures and are generally categorized as Level 2 in the hierarchy.
If the principal market of certain foreign equity securities is closed in observance of a local foreign holiday, these securities are valued using the last closing price of regular trading on the relevant exchange and fair valued by applying factors provided by a third-party vendor in accordance with the Valuation Procedures. These securities are generally categorized as Level 2 in the hierarchy.
Equity securities, rights and warrants, if applicable, are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
Investments in mutual funds, including money market funds, are valued at their respective NAVs at the close of business each day on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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. Temporary cash investments that mature in 60 days or less at the time of purchase ("Short-Term Investments") are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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) Foreign Taxes. The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which it invests. A portion of the taxes on gains on investments or currency purchases/repatriation may be reclaimable. The Fund will accrue such taxes and reclaims as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
The Fund may be subject to taxation on realized capital gains, repatriation proceeds and other transaction-based taxes imposed by certain countries in which it invests. The Fund will accrue such taxes as applicable based upon its current interpretation of tax rules and regulations that exist in the market in which it invests. Capital gains taxes relating to positions still held are reflected as a liability in the Statement of Assets and Liabilities, as well as an adjustment to the Fund's net unrealized appreciation (depreciation). Taxes related to capital gains realized, if any, are reflected as part of net realized gain (loss) in the Statement of Operations. Changes
22 | MainStay PineStone International Equity Fund |
in tax liabilities related to capital gains taxes on unrealized investment gains, if any, are reflected as part of the change in net unrealized appreciation (depreciation) on investments in the Statement of Operations. Transaction-based charges are generally assessed as a percentage of the transaction amount.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income, if any, at least annually and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(G) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(J) Foreign Securities Risk. The Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets
Notes to Financial Statements (Unaudited) (continued)
can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult to value. 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, among other things, 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 that may 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. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. PineStone Asset Management Inc. (“PineStone” or the “Subadvisor”), a registered investment adviser, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and PineStone, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.80% of the Fund's average daily net assets. During the six-month period ended April 30, 2024, the effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.80%.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that the Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 1.20%; Investor Class, 1.54%; Class C, 2.29%; Class I, 0.85%; Class P, 0.85%; and Class R6, 0.80%. This agreement will remain in effect until February 28, 2028, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $1,726,470 and waived fees and/or reimbursed certain class specific expenses in the amount of $264,650 and paid the Subadvisor fees in the amount of $820,358.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly fee from the Class A, Investor Class and Class R2 shares at an annual rate of 0.25% of the average daily net assets of the Class A, Investor Class and Class R2 shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plans, 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
24 | MainStay PineStone International Equity Fund |
average daily net assets of the Class C shares, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 Plan, Class R3 shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class R3 shares, for a total 12b-1 fee of 0.50%. Class I shares are not subject to a distribution and/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.
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, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R1, Class R2 and Class R3 shares. This is in addition to any fees paid under the Class R2 and Class R3 Plans.
During the six-month period ended April 30, 2024, shareholder service fees incurred by the Fund were as follows:
|
Class R1* | $ 47 |
Class R2* | 55 |
Class R3* | 192 |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended April 30, 2024, were $3,175 and $641, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A and Class C shares during the six-month period ended April 30, 2024, of $391 and $21, respectively.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until
February 28, 2028, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $23,369 | $ — |
Investor Class | 41,801 | (2,968) |
Class C | 2,276 | (164) |
Class I | 74,822 | — |
Class R1* | 49 | — |
Class R2* | 59 | — |
Class R3* | 218 | — |
Class R6 | 2,804 | — |
* | Effective at the close of business on February 23, 2024, Class R1, Class R2 and R3 shares were liquidated. |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Investor Class | $27,531 | 0.2% |
Class C | 27,397 | 3.5 |
Class P | 27,653 | 100.0 |
Class R6 | 31,075 | 0.0‡ |
‡ | Less than one-tenth of a percent. |
Notes to Financial Statements (Unaudited) (continued)
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $377,778,204 | $93,799,221 | $(4,613,664) | $89,185,557 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $28,450,965, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $27,493 | $958 |
During the period from April 1, 2023 through October 31, 2023 and the years ended March 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 (a) | 2023 |
Distributions paid from: | | |
Ordinary Income | $454,532 | $1,790,855 |
(a) | The Fund changed its fiscal year end from March 31 to October 31. |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based
upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $59,584 and $17,519, respectively.
26 | MainStay PineStone International Equity Fund |
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024, the period April 1, 2023 through October 31, 2023 and the year ended March 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 471,763 | $ 7,513,033 |
Shares issued to shareholders in reinvestment of distributions | 14,624 | 214,828 |
Shares redeemed | (469,429) | (7,354,967) |
Net increase (decrease) in shares outstanding before conversion | 16,958 | 372,894 |
Shares converted into Class A (See Note 1) | 36,183 | 578,057 |
Net increase (decrease) | 53,141 | $ 950,951 |
Period ended October 31, 2023:(a)(b) | | |
Shares sold | 388,513 | $ 5,588,183 |
Shares issued in connection with the acquisition of MainStay MacKay Fund International Equity Fund | 3,580,911 | 51,702,622 |
Shares issued to shareholders in reinvestment of distributions | 380 | 5,610 |
Shares redeemed | (129,124) | (1,822,996) |
Net increase (decrease) in shares outstanding before conversion | 3,840,680 | 55,473,419 |
Shares converted into Class A (See Note 1) | 7,220 | 100,056 |
Net increase (decrease) | 3,847,900 | $ 55,573,475 |
Year ended March 31, 2023: | | |
Shares sold | 299,422 | $ 4,026,503 |
Shares issued to shareholders in reinvestment of distributions | 2,036 | 26,553 |
Shares redeemed | (99,359) | (1,322,961) |
Net increase (decrease) | 202,099 | $ 2,730,095 |
|
Investor Class | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 16,653 | $ 264,985 |
Shares issued to shareholders in reinvestment of distributions | 2,696 | 39,600 |
Shares redeemed | (42,417) | (671,169) |
Net increase (decrease) in shares outstanding before conversion | (23,068) | (366,584) |
Shares converted into Investor Class (See Note 1) | 1,840 | 27,857 |
Shares converted from Investor Class (See Note 1) | (35,578) | (568,189) |
Net increase (decrease) | (56,806) | $ (906,916) |
Period ended October 31, 2023:(c) | | |
Shares sold | 7,729 | $ 109,898 |
Shares issued in connection with the acquisition of MainStay MacKay Fund International Equity Fund | 948,409 | 13,693,891 |
Shares redeemed | (11,837) | (164,520) |
Net increase (decrease) in shares outstanding before conversion | 944,301 | 13,639,269 |
Shares converted into Investor Class (See Note 1) | 980 | 14,087 |
Shares converted from Investor Class (See Note 1) | (6,869) | (94,988) |
Net increase (decrease) | 938,412 | $ 13,558,368 |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 5,626 | $ 92,636 |
Shares issued to shareholders in reinvestment of distributions | 25 | 376 |
Shares redeemed | (9,091) | (142,107) |
Net increase (decrease) in shares outstanding before conversion | (3,440) | (49,095) |
Shares converted from Class C (See Note 1) | (2,464) | (37,725) |
Net increase (decrease) | (5,904) | $ (86,820) |
Period ended October 31, 2023:(c) | | |
Shares sold | 2,005 | $ 28,980 |
Shares issued in connection with the acquisition of MainStay MacKay Fund International Equity Fund | 55,843 | 806,110 |
Shares redeemed | (1,690) | (23,215) |
Net increase (decrease) in shares outstanding before conversion | 56,158 | 811,875 |
Shares converted from Class C (See Note 1) | (1,336) | (19,155) |
Net increase (decrease) | 54,822 | $ 792,720 |
|
Notes to Financial Statements (Unaudited) (continued)
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 1,507,540 | $ 24,543,995 |
Shares issued to shareholders in reinvestment of distributions | 54,670 | 805,283 |
Shares redeemed | (1,339,843) | (20,416,765) |
Net increase (decrease) in shares outstanding before conversion | 222,367 | 4,932,513 |
Shares converted from Class I (See Note 1) | (402,352) | (6,154,639) |
Net increase (decrease) | (179,985) | $ (1,222,126) |
Period ended October 31, 2023:(b)(d) | | |
Shares sold | 1,778,011 | $ 26,269,529 |
Shares issued in connection with the acquisition of MainStay MacKay Fund International Equity Fund | 1,074,843 | 15,546,857 |
Shares issued to shareholders in reinvestment of distributions | 21,090 | 311,493 |
Shares redeemed | (1,646,610) | (23,274,878) |
Net increase (decrease) in shares outstanding before conversion | 1,227,334 | 18,853,001 |
Shares converted from Class I (See Note 1) | (681,617) | (9,283,620) |
Net increase (decrease) | 545,717 | $ 9,569,381 |
Year ended March 31, 2023: | | |
Shares sold | 3,340,494 | $ 44,915,874 |
Shares issued to shareholders in reinvestment of distributions | 100,559 | 1,312,291 |
Shares redeemed | (4,691,151) | (61,011,193) |
Net increase (decrease) | (1,250,098) | $(14,783,028) |
|
Class P | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares issued to shareholders in reinvestment of distributions | 8 | $ 120 |
Net increase (decrease) | 8 | $ 120 |
Period ended October 31, 2023:(c) | | |
Shares sold | 1,714 | $ 25,000 |
Net increase (decrease) | 1,714 | $ 25,000 |
|
Class R1 | Shares | Amount |
Six-month period ended April 30, 2024:(e) | | |
Shares sold | 152 | $ 2,233 |
Shares issued to shareholders in reinvestment of distributions | 41 | 599 |
Shares redeemed | (9,936) | (164,327) |
Net increase (decrease) | (9,743) | $ (161,495) |
Period ended October 31, 2023:(c) | | |
Shares sold | 1,860 | $ 27,027 |
Shares issued in connection with the acquisition of MainStay MacKay Fund International Equity Fund | 7,884 | 114,043 |
Shares redeemed | (1) | (9) |
Net increase (decrease) | 9,743 | $ 141,061 |
|
Class R2 | Shares | Amount |
Six-month period ended April 30, 2024:(e) | | |
Shares sold | 76 | $ 1,107 |
Shares issued to shareholders in reinvestment of distributions | 17 | 258 |
Shares redeemed | (12,652) | (207,026) |
Net increase (decrease) | (12,559) | $ (205,661) |
Period ended October 31, 2023:(c) | | |
Shares sold | 1,799 | $ 26,181 |
Shares issued in connection with the acquisition of MainStay MacKay Fund International Equity Fund | 11,467 | 165,862 |
Shares redeemed | (707) | (9,677) |
Net increase (decrease) | 12,559 | $ 182,366 |
|
Class R3 | Shares | Amount |
Six-month period ended April 30, 2024:(e) | | |
Shares sold | 722 | $ 10,674 |
Shares issued to shareholders in reinvestment of distributions | 114 | 1,681 |
Shares redeemed | (47,265) | (763,050) |
Net increase (decrease) | (46,429) | $ (750,695) |
Period ended October 31, 2023:(c) | | |
Shares sold | 3,194 | $ 45,850 |
Shares issued in connection with the acquisition of MainStay MacKay Fund International Equity Fund | 52,160 | 754,368 |
Shares redeemed | (8,925) | (120,815) |
Net increase (decrease) | 46,429 | $ 679,403 |
|
28 | MainStay PineStone International Equity Fund |
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 3,190,231 | $ 50,364,721 |
Shares issued to shareholders in reinvestment of distributions | 32,584 | 481,588 |
Shares redeemed | (489,332) | (7,826,783) |
Net increase (decrease) in shares outstanding before conversion | 2,733,483 | 43,019,526 |
Shares converted into Class R6 (See Note 1) | 401,039 | 6,154,639 |
Net increase (decrease) | 3,134,522 | $ 49,174,165 |
Period ended October 31, 2023:(b)(f) | | |
Shares sold | 416,586 | $ 5,988,356 |
Shares issued in connection with the acquisition of MainStay MacKay Fund International Equity Fund | 3,381,136 | 49,122,828 |
Shares issued to shareholders in reinvestment of distributions | 6,861 | 101,817 |
Shares redeemed | (201,568) | (3,027,317) |
Net increase (decrease) in shares outstanding before conversion | 3,603,015 | 52,185,684 |
Shares converted into Class R6 (See Note 1) | 678,131 | 9,283,620 |
Net increase (decrease) | 4,281,146 | $ 61,469,304 |
Year ended March 31, 2023: | | |
Shares issued to shareholders in reinvestment of distributions | 28,377 | $ 371,742 |
Shares redeemed | (274,348) | (4,000,000) |
Net increase (decrease) | (245,971) | $ (3,628,258) |
(a) | Investor Class converted to Class A on August 25, 2023. |
(b) | The Fund changed its fiscal year end from March 31 to October 31. |
(c) | The inception date of the class was August 28, 2023. |
(d) | Institutional Class converted to Class I on August 25, 2023. |
(e) | Class liquidated and is no longer offered for sale as of February 23, 2024. |
(f) | Class Z converted to Class R6 on August 25, 2023. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial
statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
30 | MainStay PineStone International Equity Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
6641977 MS081-24 | MSPIE10-06/24 |
(NYLIM) NL550
MainStay PineStone Global Equity Fund
Message from the President and Semiannual Report
Unaudited | April 30, 2024
Special Notice:
Beginning in July 2024, new regulations issued by the Securities and Exchange Commission (SEC) will take effect requiring open-end mutual fund companies and ETFs to (1) overhaul the content of their shareholder reports and (2) mail paper copies of the new tailored shareholder reports to shareholders who have not opted to receive these documents electronically.
If you have not yet elected to receive your shareholder reports electronically, please contact your financial intermediary or visit newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Stock and bond markets gained broad ground during the six-month period ended April 30, 2024, bolstered by better-than-expected economic growth and the prospect of monetary easing in the face of a myriad of macroeconomic and geopolitical challenges.
Throughout the reporting period, interest rates remained at their highest levels in decades in most developed countries, with the U.S. federal funds rate in the 5.25%−5.50% range, as central banks struggled to bring inflation under control. Early in the reporting period, the U.S. Federal Reserve began to forecast interest rate cuts in 2024, but delayed action as inflation remained stubbornly high, fluctuating between 3.1% and 3.5%. Nevertheless, despite the increasing cost of capital and tighter lending environment that resulted from sustained high rates, economic growth remained surprisingly robust, supported by high levels of consumer spending, low unemployment and strong corporate earnings. Investors tended to shrug off concerns related to sticky inflation and high interest rates—not to mention the ongoing war in Ukraine, intensifying hostilities in the Middle East and simmering tensions between China and the United States—focusing instead on the positives of continued economic growth and surprisingly strong corporate profits.
The S&P 500® Index, a widely regarded benchmark of U.S. market performance, produced double-digit gains, reaching record levels in March 2024. Market strength, which had been narrowly focused on mega-cap, technology-related stocks during the previous six months broadened significantly during the reporting period. All industry sectors produced positive results, with the strongest returns in communication services, information technology and industrials, and more moderate gains in the lagging energy, real estate and consumer staples areas. Growth-oriented shares slightly outperformed value-oriented
issues, while large- and mid-cap stocks modestly outperformed their small-cap counterparts. Most overseas equity markets trailed the U.S. market, as developed international economies experienced relatively low growth rates, and weak economic conditions in China undermined emerging markets.
Bonds generally gained ground as well. The yield on the 10-year Treasury note ranged between approximately 4.7% and 3.8%, while the 2-year Treasury yield remained slightly higher, between approximately 5.0% and 4.1%, in an inverted curve pattern often viewed as indicative of an impending economic slowdown. Nevertheless, the prevailing environment of stable interest rates and attractive yields provided a favorable environment for fixed-income investors. Long-term Treasury bonds and investment-grade corporate bonds produced similar gains, while high yield bonds advanced by a slightly greater margin, despite the added risks implicit in an uptick in default rates. International bond markets modestly outperformed their U.S. counterparts, led by a rebound in the performance of emerging-markets debt.
The risks and uncertainties inherent in today’s markets call for the kind of insight and expertise that New York Life Investments offers through our one-on-one philosophy, long-lasting focus, and multi-boutique approach.
Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are 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. Past performance is no guarantee of future results.
Not part of the Semiannual Report
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, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available on dfinview.com/NYLIM. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.
Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, 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 800-624-6782 or visit newyorklifeinvestments.com.
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 below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may 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 (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Period-Ended April 30, 2024 |
Class | Sales Charge | | Inception Date1 | Six Months2 | One Year | Five Years | Since Inception | Gross Expense Ratio3 |
Class A Shares4 | Maximum 5.50% Initial Sales Charge | With sales charges | 4/28/2017 | 8.49% | 9.87% | 10.26% | 11.71% | 1.77% |
| | Excluding sales charges | | 14.81 | 9.87 | 10.26 | 11.71 | 1.77 |
Class C Shares | Maximum 1.00% CDSC | With sales charges | 8/28/2023 | 13.28 | N/A | N/A | 6.61 | 2.73 |
| if Redeemed Within One Year of Purchase | Excluding sales charges | | 14.28 | N/A | N/A | 7.61 | 2.73 |
Class I Shares4 | | | 4/28/2017 | 14.93 | 10.14 | 10.53 | 12.00 | 1.52 |
Class P Shares | | | 8/28/2023 | 14.93 | N/A | N/A | 8.45 | 1.48 |
Class R6 Shares | | | 8/28/2023 | 14.93 | N/A | N/A | 8.45 | 1.48 |
1. | Effective at the close of business on August 25, 2023, the Fund changed its fiscal and tax year end from March 31 to October 31. |
2. | Not annualized. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Performance figures for Class A shares and Class I shares reflect the historical performance of the then-existing Investor Class shares and Institutional Class shares, respectively, of the Fiera Capital Global Equity Fund (the "Predecessor Fund"), which was subject to a different fee structure for periods prior to August 28, 2023. The Fund commenced operations on August 28, 2023. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
Benchmark Performance* | Six Months1 | One Year | Five Years | Since Inception |
MSCI World Index (Net)2 | 20.29% | 18.39% | 10.46% | 10.26% |
Morningstar Global Large-Stock Growth Category Average3 | 21.62 | 17.03 | 9.29 | 9.77 |
* | Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
1. | Not annualized. |
2. | The Fund has selected the MSCI World Index (Net), which represents a broad measure of market performance, and is generally representative of the market sectors or types of investments in which the Fund invests. The MSCI World Index (Net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. |
3. | The Morningstar Global Large-Stock Growth Category Average is a representative of funds that invest in a variety of international stocks and typically skew towards large caps that are more expensive or projected to grow faster than other global large-cap stocks. World large stock growth portfolios have few geographical limitations. It is common for these portfolios to invest the majority of their assets in developed markets, with the remainder divided among the globe's emerging markets. These portfolios are not significantly overweight U.S. equity exposure relative to the Morningstar Global Market Index and maintain at least a 20% absolute U.S. exposure. Results are based on average total returns of similar funds with all dividends 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 PineStone Global Equity Fund |
Cost in Dollars of a $1,000 Investment in MainStay PineStone Global 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, 2023 to April 30, 2024, 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, 2023 to April 30, 2024.
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, 2024. 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 mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual 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.
Share Class | Beginning Account Value 11/1/23 | Ending Account Value (Based on Actual Returns and Expenses) 4/30/24 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 4/30/24 | Expenses Paid During Period1 | Net Expense Ratio During Period2 |
Class A Shares | $1,000.00 | $1,148.10 | $ 5.87 | $1,019.39 | $ 5.52 | 1.10% |
Class C Shares | $1,000.00 | $1,142.80 | $10.66 | $1,014.92 | $10.02 | 2.00% |
Class I Shares | $1,000.00 | $1,149.30 | $ 4.54 | $1,020.64 | $ 4.27 | 0.85% |
Class P Shares | $1,000.00 | $1,149.30 | $ 4.54 | $1,020.64 | $ 4.27 | 0.85% |
Class R6 Shares | $1,000.00 | $1,149.30 | $ 4.49 | $1,020.69 | $ 4.22 | 0.84% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 366 and multiplied by 182 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also 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. |
2. | Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period. |
Country Composition as of April 30, 2024 (Unaudited)
United States | 68.8% |
United Kingdom | 7.9 |
Taiwan | 6.4 |
Switzerland | 4.3 |
France | 4.1 |
Denmark | 3.3 |
Japan | 2.8% |
India | 1.7 |
Other Assets, Less Liabilities | 0.7 |
| 100.0% |
See Portfolio of Investments beginning on page 9 for specific holdings within these categories. The Fund's holdings are subject to change.
Top Ten Holdings and/or Issuers Held as of April 30, 2024 (excluding short-term investments) (Unaudited)
1. | Microsoft Corp. |
2. | Alphabet, Inc., Class A |
3. | Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR |
4. | AutoZone, Inc. |
5. | Moody's Corp. |
6. | Mastercard, Inc., Class A |
7. | LVMH Moet Hennessy Louis Vuitton SE |
8. | UnitedHealth Group, Inc. |
9. | TJX Cos., Inc. (The) |
10. | Novo Nordisk A/S, Class B |
8 | MainStay PineStone Global Equity Fund |
Portfolio of Investments April 30, 2024†^(Unaudited)
| Shares | Value |
Common Stocks 99.3% |
Denmark 3.3% |
Novo Nordisk A/S, Class B (Pharmaceuticals) | 7,168 | $ 921,199 |
France 4.1% |
LVMH Moet Hennessy Louis Vuitton SE (Textiles, Apparel & Luxury Goods) | 1,447 | 1,164,800 |
India 1.7% |
HDFC Bank Ltd., ADR (Banks) | 8,485 | 488,736 |
Japan 2.8% |
Keyence Corp. (Electronic Equipment, Instruments & Components) | 1,767 | 782,704 |
Switzerland 4.3% |
Cie Financiere Richemont SA (Registered) (Textiles, Apparel & Luxury Goods) | 5,334 | 738,132 |
Geberit AG (Registered) (Building Products) | 925 | 493,945 |
| | 1,232,077 |
Taiwan 6.4% |
Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR (Semiconductors & Semiconductor Equipment) | 13,291 | 1,825,386 |
United Kingdom 7.9% |
Diageo plc (Beverages) | 19,379 | 668,255 |
InterContinental Hotels Group plc (Hotels, Restaurants & Leisure) | 9,171 | 893,596 |
Intertek Group plc (Professional Services) | 5,656 | 347,191 |
Spirax-Sarco Engineering plc (Machinery) | 2,880 | 317,438 |
| | 2,226,480 |
United States 68.8% |
Alphabet, Inc., Class A (Interactive Media & Services) (a) | 12,186 | 1,983,637 |
| Shares | | Value |
|
United States (continued) |
AutoZone, Inc. (Specialty Retail) (a) | 485 | | $ 1,433,854 |
Becton Dickinson & Co. (Health Care Equipment & Supplies) | 2,446 | | 573,832 |
Carrier Global Corp. (Building Products) | 11,168 | | 686,720 |
CME Group, Inc. (Capital Markets) | 4,169 | | 873,989 |
Graco, Inc. (Machinery) | 7,332 | | 588,026 |
Johnson & Johnson (Pharmaceuticals) | 4,554 | | 658,463 |
Mastercard, Inc., Class A (Financial Services) | 3,055 | | 1,378,416 |
Mettler-Toledo International, Inc. (Life Sciences Tools & Services) (a) | 472 | | 580,418 |
Microsoft Corp. (Software) | 5,481 | | 2,133,917 |
Moody's Corp. (Capital Markets) | 3,790 | | 1,403,551 |
MSCI, Inc. (Capital Markets) | 1,374 | | 639,996 |
Nestle SA (Registered) (Food Products) | 8,666 | | 869,280 |
NIKE, Inc., Class B (Textiles, Apparel & Luxury Goods) | 4,721 | | 435,559 |
Oracle Corp. (Software) | 7,377 | | 839,134 |
Otis Worldwide Corp. (Machinery) | 8,262 | | 753,494 |
PepsiCo, Inc. (Beverages) | 4,677 | | 822,731 |
Sherwin-Williams Co. (The) (Chemicals) | 2,830 | | 847,896 |
TJX Cos., Inc. (The) (Specialty Retail) | 10,188 | | 958,589 |
UnitedHealth Group, Inc. (Health Care Providers & Services) | 2,238 | | 1,082,521 |
| | | 19,544,023 |
Total Common Stocks (Cost $17,906,747) | | | 28,185,405 |
Total Investments (Cost $17,906,747) | 99.3% | | 28,185,405 |
Other Assets, Less Liabilities | 0.7 | | 207,756 |
Net Assets | 100.0% | | $ 28,393,161 |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
(a) | Non-income producing security. |
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the six-month period ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period |
MainStay U.S. Government Liquidity Fund | $ 90 | $ 2,969 | $ (3,059) | $ — | $ — | $ — | $ 6 | $ — | — |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
9
Portfolio of Investments April 30, 2024†^(Unaudited) (continued)
Abbreviation(s): |
ADR—American Depositary Receipt |
The following is a summary of the fair valuations according to the inputs used as of April 30, 2024, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total |
Asset Valuation Inputs | | | | | | | |
Investments in Securities (a) | | | | | | | |
Common Stocks | | | | | | | |
Denmark | $ — | | $ 921,199 | | $ — | | $ 921,199 |
France | — | | 1,164,800 | | — | | 1,164,800 |
Japan | — | | 782,704 | | — | | 782,704 |
Switzerland | — | | 1,232,077 | | — | | 1,232,077 |
United Kingdom | — | | 2,226,480 | | — | | 2,226,480 |
United States | 18,674,743 | | 869,280 | | — | | 19,544,023 |
All Other Countries | 2,314,122 | | — | | — | | 2,314,122 |
Total Investments in Securities | $ 20,988,865 | | $ 7,196,540 | | $ — | | $ 28,185,405 |
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
10 | MainStay PineStone Global Equity Fund |
The table below sets forth the diversification of the Fund’s investments by industry.
Industry Diversification
| Value | | Percent †^ |
Banks | $ 488,736 | | 1.7% |
Beverages | 1,490,986 | | 5.3 |
Building Products | 1,180,665 | | 4.2 |
Capital Markets | 2,917,536 | | 10.3 |
Chemicals | 847,896 | | 3.0 |
Electronic Equipment, Instruments & Components | 782,704 | | 2.8 |
Financial Services | 1,378,416 | | 4.9 |
Food Products | 869,280 | | 3.1 |
Health Care Equipment & Supplies | 573,832 | | 2.0 |
Health Care Providers & Services | 1,082,521 | | 3.8 |
Hotels, Restaurants & Leisure | 893,596 | | 3.1 |
Interactive Media & Services | 1,983,637 | | 7.0 |
Life Sciences Tools & Services | 580,418 | | 2.0 |
Machinery | 1,658,958 | | 5.8 |
Pharmaceuticals | 1,579,662 | | 5.6 |
Professional Services | 347,191 | | 1.2 |
Semiconductors & Semiconductor Equipment | 1,825,386 | | 6.4 |
Software | 2,973,051 | | 10.5 |
Specialty Retail | 2,392,443 | | 8.4 |
Textiles, Apparel & Luxury Goods | 2,338,491 | | 8.2 |
| 28,185,405 | | 99.3 |
Other Assets, Less Liabilities | 207,756 | | 0.7 |
Net Assets | $28,393,161 | | 100.0% |
† | Percentages indicated are based on Fund net assets. |
^ | Industry and country classifications may be different than those used for compliance monitoring purposes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
11
Statement of Assets and Liabilities as of April 30, 2024 (Unaudited)
Assets |
Investment in securities, at value (identified cost $17,906,747) | $28,185,405 |
Cash | 51,797 |
Receivables: | |
Dividends | 103,178 |
Fund shares sold | 15,603 |
Other assets | 74,655 |
Total assets | 28,430,638 |
Liabilities |
Payables: | |
Custodian | 13,646 |
Manager (See Note 3) | 10,342 |
Transfer agent (See Note 3) | 9,538 |
Shareholder communication | 1,658 |
NYLIFE Distributors (See Note 3) | 399 |
Professional fees | 326 |
Accrued expenses | 1,568 |
Total liabilities | 37,477 |
Net assets | $28,393,161 |
Composition of Net Assets |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 1,501 |
Additional paid-in-capital | 18,655,964 |
| 18,657,465 |
Total distributable earnings (loss) | 9,735,696 |
Net assets | $28,393,161 |
Class A | |
Net assets applicable to outstanding shares | $ 1,651,236 |
Shares of beneficial interest outstanding | 87,677 |
Net asset value per share outstanding | $ 18.83 |
Maximum sales charge (5.50% of offering price) | 1.10 |
Maximum offering price per share outstanding | $ 19.93 |
Class C | |
Net assets applicable to outstanding shares | $ 40,369 |
Shares of beneficial interest outstanding | 2,152 |
Net asset value and offering price per share outstanding | $ 18.76 |
Class I | |
Net assets applicable to outstanding shares | $26,491,107 |
Shares of beneficial interest outstanding | 1,400,069 |
Net asset value and offering price per share outstanding | $ 18.92 |
Class P | |
Net assets applicable to outstanding shares | $ 27,111 |
Shares of beneficial interest outstanding | 1,432 |
Net asset value and offering price per share outstanding | $ 18.93 |
Class R6 | |
Net assets applicable to outstanding shares | $ 183,338 |
Shares of beneficial interest outstanding | 9,690 |
Net asset value and offering price per share outstanding | $ 18.92 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 | MainStay PineStone Global Equity Fund |
Statement of Operations for the six months ended April 30, 2024 (Unaudited)
Investment Income (Loss) |
Income | |
Dividends-unaffiliated (net of foreign tax withholding of $13,043) | $ 203,934 |
Dividends-affiliated | 5,530 |
Securities lending, net | 115 |
Total income | 209,579 |
Expenses | |
Manager (See Note 3) | 109,731 |
Registration | 38,247 |
Professional fees | 13,880 |
Custodian | 12,932 |
Transfer agent (See Note 3) | 7,795 |
Distribution/Service—Class A (See Note 3) | 1,867 |
Distribution/Service—Class C (See Note 3) | 172 |
Shareholder communication | 1,027 |
Trustees | 298 |
Miscellaneous | 7,455 |
Total expenses before waiver/reimbursement | 193,404 |
Expense waiver/reimbursement from Manager (See Note 3) | (74,753) |
Net expenses | 118,651 |
Net investment income (loss) | 90,928 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | 215,006 |
Foreign currency transactions | (56) |
Net realized gain (loss) | 214,950 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 3,174,617 |
Translation of other assets and liabilities in foreign currencies | (828) |
Net change in unrealized appreciation (depreciation) | 3,173,789 |
Net realized and unrealized gain (loss) | 3,388,739 |
Net increase (decrease) in net assets resulting from operations | $3,479,667 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13
Statements of Changes in Net Assets
for the six months ended April 30, 2024 (Unaudited), the period April 1, 2023 through October 31, 2023 and the year ended March 31, 2023
| Six months ended April 30, 2024 | Period April 1, 2023 through October 31, 2023(a) | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets |
Operations: | | | |
Net investment income (loss) | $ 90,928 | $ 82,093 | $ 118,875 |
Net realized gain (loss) | 214,950 | 51,718 | (641,750) |
Net change in unrealized appreciation (depreciation) | 3,173,789 | (476,345) | (484,720) |
Net increase (decrease) in net assets resulting from operations | 3,479,667 | (342,534) | (1,007,595) |
Distributions to shareholders: |
Class A | (5,211) | — | (55,479) |
Class C | (54) | — | — |
Class I | (140,647) | — | (1,427,637) |
Class P | (139) | — | — |
Class R6 | (152) | — | — |
Total distributions to shareholders | (146,203) | — | (1,483,116) |
Capital share transactions: | | | |
Net proceeds from sales of shares | 2,959,784 | 1,518,511 | 1,120,155 |
Net asset value of shares issued to shareholders in reinvestment of distributions | 124,320 | — | 755,146 |
Cost of shares redeemed | (650,570) | (6,910,150) | (3,353,013) |
Increase (decrease) in net assets derived from capital share transactions | 2,433,534 | (5,391,639) | (1,477,712) |
Net increase (decrease) in net assets | 5,766,998 | (5,734,173) | (3,968,423) |
Net Assets |
Beginning of period | 22,626,163 | 28,360,336 | 32,328,759 |
End of period | $28,393,161 | $22,626,163 | $28,360,336 |
(a) | The Fund changed its fiscal year end from March 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.
14 | MainStay PineStone Global Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1 2023 through October 31, | | Year Ended March 31, |
Class A | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 16.47 | | $ 16.87 | | $ 18.23 | | $ 17.05 | | $ 11.63 | | $ 12.73 | | $ 11.60 |
Net investment income (loss) (b) | 0.04 | | 0.03 | | 0.03 | | 0.00‡ | | 0.02 | | 0.05 | | 0.04 |
Net realized and unrealized gain (loss) | 2.39 | | (0.43) | | (0.51) | | 1.83 | | 5.49 | | (0.63) | | 1.19 |
Total from investment operations | 2.43 | | (0.40) | | (0.48) | | 1.83 | | 5.51 | | (0.58) | | 1.23 |
Less distributions: | | | | | | | | | | | | | |
From net investment income | (0.07) | | — | | (0.03) | | (0.01) | | (0.03) | | (0.11) | | (0.07) |
From net realized gain on investments | — | | — | | (0.85) | | (0.64) | | (0.06) | | (0.41) | | (0.03) |
Total distributions | (0.07) | | — | | (0.88) | | (0.65) | | (0.09) | | (0.52) | | (0.10) |
Net asset value at end of period | $ 18.83 | | $ 16.47 | | $ 16.87 | | $ 18.23 | | $ 17.05 | | $ 11.63 | | $ 12.73 |
Total investment return | 14.81%(c) | | (2.37)%(c) | | (2.19)% (d)(e) | | 10.39% (d)(e) | | 47.37% (d)(e) | | (5.26)% (d)(e) | | 10.75% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | 0.46%†† | | 0.31%†† | | 0.19% (f)(g) | | 0.01% (f)(g) | | 0.10% (f)(g) | | 0.35% (f)(g) | | 0.72% (f)(g) |
Net expenses | 1.10%††(h) | | 1.13%††(h) | | 1.15% (f)(g) | | 1.15% (f)(g) | | 1.15% (f)(g) | | 1.15% (f)(g) | | 1.15% (f)(g) |
Expenses (before waiver/reimbursement) | 1.64%††(h) | | 2.28%††(h) | | 2.26%(g) | | 1.95%(g) | | 2.30%(g) | | 2.39%(g) | | 3.59%(g) |
Portfolio turnover rate | 3% | | 7% | | 11%(e) | | 25%(e) | | 16%(e) | | 45%(e) | | 28%(e) |
Net assets at end of period (in 000's) | $ 1,651 | | $ 1,117 | | $ 1,104 | | $ 1,157 | | $ 996 | | $ 340 | | $ 144 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
15
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Class C | 2024 * | | 2023 |
Net asset value at beginning of period | $ 16.45 | | $ 17.59 |
Net investment income (loss) (a) | (0.04) | | (0.02) |
Net realized and unrealized gain (loss) | 2.39 | | (1.12) |
Total from investment operations | 2.35 | | (1.14) |
Less distributions: | | | |
From net investment income | (0.04) | | — |
Net asset value at end of period | $ 18.76 | | $ 16.45 |
Total investment return (b) | 14.28% | | (6.48)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | (0.46)% | | (0.71)% |
Net expenses††(d) | 2.00% | | 2.00% |
Expenses (before waiver/reimbursement)††(d) | 2.54% | | 2.94% |
Portfolio turnover rate | 3% | | 7% |
Net assets at end of period (in 000’s) | $ 40 | | $ 24 |
* | Unaudited. |
^ | Inception date. |
†† | 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. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
16 | MainStay PineStone Global Equity Fund |
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | April 1 2023 through October 31, | | Year Ended March 31, |
Class I | 2024 * | | 2023 #(a) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 |
Net asset value at beginning of period | $ 16.56 | | $ 16.93 | | $ 18.29 | | $ 17.11 | | $ 11.66 | | $ 12.74 | | $ 11.60 |
Net investment income (loss) (b) | 0.06 | | 0.06 | | 0.07 | | 0.05 | | 0.05 | | 0.08 | | 0.11 |
Net realized and unrealized gain (loss) | 2.41 | | (0.43) | | (0.50) | | 1.82 | | 5.52 | | (0.62) | | 1.15 |
Total from investment operations | 2.47 | | (0.37) | | (0.43) | | 1.87 | | 5.57 | | (0.54) | | 1.26 |
Less distributions: | | | | | | | | | | | | | |
From net investment income | (0.11) | | — | | (0.08) | | (0.05) | | (0.06) | | (0.13) | | (0.09) |
From net realized gain on investments | — | | — | | (0.85) | | (0.64) | | (0.06) | | (0.41) | | (0.03) |
Total distributions | (0.11) | | — | | (0.93) | | (0.69) | | (0.12) | | (0.54) | | (0.12) |
Net asset value at end of period | $ 18.92 | | $ 16.56 | | $ 16.93 | | $ 18.29 | | $ 17.11 | | $ 11.66 | | $ 12.74 |
Total investment return | 14.93%(c) | | (2.19)%(c) | | (1.92)% (d)(e) | | 10.58% (d)(e) | | 47.78% (d)(e) | | (4.97)% (d)(e) | | 11.07% (d)(e) |
Ratios (to average net assets)/Supplemental Data: | | | | | | | | | | | | | |
Net investment income (loss) | 0.67%†† | | 0.55%†† | | 0.44% (f)(g) | | 0.26% (f)(g) | | 0.35% (f)(g) | | 0.60% (f)(g) | | 0.96% (f)(g) |
Net expenses | 0.85%††(h) | | 0.88%††(h) | | 0.90% (f)(g) | | 0.90% (f)(g) | | 0.90% (f)(g) | | 0.90% (f)(g) | | 0.90% (f)(g) |
Expenses (before waiver/reimbursement) | 1.40%††(h) | | 2.04%††(h) | | 2.01%(g) | | 1.70%(g) | | 2.05%(g) | | 2.14%(g) | | 3.34%(g) |
Portfolio turnover rate | 3% | | 7% | | 11%(e) | | 25%(e) | | 16%(e) | | 45%(e) | | 28%(e) |
Net assets at end of period (in 000's) | $ 26,491 | | $ 21,438 | | $ 27,257 | | $ 31,172 | | $ 26,361 | | $ 15,613 | | $ 12,478 |
* | Unaudited. |
# | The Fund changed its fiscal year end from March 31 to October 31. |
†† | Annualized. |
(a) | Beginning with the period ended October 31, 2023, the Fund was audited by KPMG LLP. The previous years were audited by another independent registered public accounting firm. |
(b) | Per share data based on average shares outstanding during the period. |
(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. For periods of less than one year, total return is not annualized. |
(d) | Based on net asset value as of end of period date. |
(e) | Not annualized for periods less than one year. |
(f) | The contractual and voluntary expense waiver of the prior Manager are reflected in both the net expense and net investment income (loss) ratios. |
(g) | Annualized, with the exception of non-recurring organizational costs. |
(h) | In addition to the fees and expenses which the Fund bears directly, it also 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.
17
Financial Highlights selected per share data and ratios
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Class P | 2024 * | | 2023 |
Net asset value at beginning of period | $ 16.56 | | $ 17.68 |
Net investment income (loss) (a) | 0.06 | | 0.01 |
Net realized and unrealized gain (loss) | 2.41 | | (1.13) |
Total from investment operations | 2.47 | | (1.12) |
Less distributions: | | | |
From net investment income | (0.10) | | — |
Net asset value at end of period | $ 18.93 | | $ 16.56 |
Total investment return (b) | 14.93% | | (6.33)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | 0.68% | | 0.44% |
Net expenses††(d) | 0.85% | | 0.85% |
Expenses (before waiver/reimbursement)††(d) | 1.34% | | 1.69% |
Portfolio turnover rate | 3% | | 7% |
Net assets at end of period (in 000’s) | $ 27 | | $ 24 |
* | Unaudited. |
^ | Inception date. |
†† | 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 P shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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. |
| Six months ended April 30, | | August 28, 2023^ through October 31, |
Class R6 | 2024 * | | 2023 |
Net asset value at beginning of period | $ 16.56 | | $ 17.68 |
Net investment income (loss) (a) | 0.10 | | 0.01 |
Net realized and unrealized gain (loss) | 2.37 | | (1.13) |
Total from investment operations | 2.47 | | (1.12) |
Less distributions: | | | |
From net investment income | (0.11) | | — |
Net asset value at end of period | $ 18.92 | | $ 16.56 |
Total investment return (b) | 14.93% | | (6.33)%(c) |
Ratios (to average net assets)/Supplemental Data: | | | |
Net investment income (loss)†† | 1.06% | | 0.45% |
Net expenses††(d) | 0.84% | | 0.84% |
Expenses (before waiver/reimbursement)††(d) | 1.32% | | 1.69% |
Portfolio turnover rate | 3% | | 7% |
Net assets at end of period (in 000’s) | $ 183 | | $ 24 |
* | Unaudited. |
^ | Inception date. |
†† | 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 R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also 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.
18 | MainStay PineStone Global Equity Fund |
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. 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 thirty-nine funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay PineStone Global Equity Fund (the "Fund"), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The Fund is successor to the Fiera Capital Global Equity Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Fiera Capital, Inc. served as the investment advisor. The financial statements of the Fund reflect the historical results of corresponding shares of the Predecessor Fund through its reorganization on August 28, 2023. Upon completion of the reorganization, the Class A and Class I shares of the Fund assumed the performance, financial and other information of the corresponding shares of the Predecessor Fund. All information provided for periods prior to August 28, 2023, refers to the Predecessor Fund.
The following table lists the Fund's share classes that have been registered and commenced operations:
Class | Commenced Operations |
Class A | April 28, 2017 |
Class C | August 28, 2023 |
Class I | April 28, 2017 |
Class P | August 28, 2023 |
Class R6 | August 28, 2023 |
Class A shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are offered at NAV without a sales charge. In addition, depending upon eligibility, Class C shares convert to either Class A shares at the end of the calendar quarter eight years after the date they were purchased. Class P shares are generally only available to investors that have a relationship with PineStone Asset Management Inc. and are invested directly with the Fund. An investment minimum of $5,000,000 for Class P shares applies and no subsequent investment minimum. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A shares. Class I, Class R6 and Class P shares are not subject to a distribution and/or service fee.
The Fund's investment objective is to seek capital appreciation.
Effective at the close of business on August 25, 2023, the Fund changed its fiscal and tax year end from March 31 to October 31.
Note 2–Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 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 usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated New York Life Investment Management LLC (“New York Life Investments” or the "Manager") as its Valuation Designee (the "Valuation Designee"). The Valuation Designee is responsible for performing fair valuations relating to all investments in the Fund’s portfolio for which market quotations are not readily available; periodically assessing and managing material valuation risks; establishing and applying fair value methodologies; testing fair valuation methodologies; evaluating and overseeing pricing services; ensuring appropriate segregation of valuation and portfolio management functions; providing quarterly, annual and prompt reporting to the Board, as appropriate; identifying potential conflicts of interest; and maintaining appropriate records. The Valuation Designee has established a valuation committee ("Valuation Committee") to assist in carrying out the Valuation Designee’s responsibilities and establish prices of securities for which market quotations are not readily available. The Fund's and the Valuation Designee's policies and procedures ("Valuation Procedures") govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Fund investments. The Valuation Designee may value the Fund's portfolio securities for which market quotations are not readily available and other Fund assets utilizing inputs from pricing services and other third-party sources. The Valuation Committee meets (in person, via electronic mail or via teleconference) on an ad-hoc basis to determine fair valuations and on a quarterly basis to review fair value events with respect to certain securities for which market quotations are not readily available, including valuation risks and back-testing results, and to preview reports to the Board.
Notes to Financial Statements (Unaudited) (continued)
The Valuation Committee establishes prices of securities for which market quotations are not readily available based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. The Board shall oversee the Valuation Designee and review fair valuation materials on a prompt, quarterly and annual basis and approve proposed revisions to the Valuation Procedures.
Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to the Valuation Procedures. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. "Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices (unadjusted) in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of April 30, 2024, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities |
• Two-sided markets | • Reference data (corporate actions or material event notices) |
• Bids/offers | • Monthly payment information |
• Industry and economic events | • Reported trades |
An asset or liability for which a market quotation is not readily available is valued by methods deemed reasonable in good faith by the Valuation Committee, following the Valuation Procedures to represent fair value. Under these procedures, the Valuation Designee generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. The Valuation Designee may also use an income-based valuation approach in which the anticipated future cash flows of the asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Valuation Procedures may differ from valuations for the same security determined for other funds using their own valuation procedures. Although the Valuation Procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended April 30, 2024, there were no material changes to the fair value methodologies.
Securities which may be valued in this manner include, but are not limited to: (i) a security for which trading has been halted or suspended or otherwise does not have a readily available market quotation on a given day; (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 delisted from a national exchange; (v) a security subject to trading collars for which no or limited trading takes place; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 2 or 3 in the hierarchy.
Certain securities held by the Fund may principally trade in foreign markets. Events may occur between the time the foreign markets close and the time at which the Fund's 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
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not tied directly to the securities markets. Should the Valuation Designee conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Valuation Designee may, pursuant to the Valuation Procedures, adjust the value of the local price to reflect the estimated 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, certain 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 Valuation Procedures and are generally categorized as Level 2 in the hierarchy.
If the principal market of certain foreign equity securities is closed in observance of a local foreign holiday, these securities are valued using the last closing price of regular trading on the relevant exchange and fair valued by applying factors provided by a third-party vendor in accordance with the Valuation Procedures. These securities are generally categorized as Level 2 in the hierarchy.
Equity securities are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Valuation Procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s 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 permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager 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 provisions for federal, state and local income tax are required in the Fund's financial statements. The Fund's federal, state and local income tax 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) Foreign Taxes. The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which it invests. A portion of the taxes on gains on investments or currency purchases/repatriation may be reclaimable. The Fund will accrue such taxes and reclaims as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
The Fund may be subject to taxation on realized capital gains, repatriation proceeds and other transaction-based taxes imposed by certain countries in which it invests. The Fund will accrue such taxes as applicable based upon its current interpretation of tax rules and regulations that exist in the market in which it invests. Capital gains taxes relating to positions still held are reflected as a liability in the Statement of Assets and Liabilities, as well as an adjustment to the Fund's net unrealized appreciation (depreciation). Taxes related to capital gains realized, if any, are reflected as part of net realized gain (loss) in the Statement of Operations. Changes in tax liabilities related to capital gains taxes on unrealized investment gains, if any, are reflected as part of the change in net unrealized appreciation (depreciation) on investments in the Statement of Operations. Transaction-based charges are generally assessed as a percentage of the transaction amount.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income, if any, at least annually and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using 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. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares 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
Notes to Financial Statements (Unaudited) (continued)
under the shareholder services plans and/or 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.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(G) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Foreign Currency Transactions. The Fund's books and records are maintained 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 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 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 (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, JPMorgan Chase Bank, N.A., ("JPMorgan"), acting as securities lending agent on behalf of the Fund. Under the current arrangement, JPMorgan will manage the Fund's collateral in accordance with the securities lending agency agreement between the Fund and JPMorgan, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may
include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. Non-cash collateral held at year end is segregated and cannot be transferred by the Fund. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also 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. Income earned from securities lending activities, if any, is reflected in the Statement of Operations.
(J) Foreign Securities Risk. The Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. Foreign regulatory regimes and securities markets can have less stringent investor protections and disclosure standards and less liquid trading markets than U.S. regulatory regimes and securities markets, and can experience political, social and economic developments that may affect the value of investments in foreign securities. 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. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell certain foreign securities or groups of foreign securities, and thus may make the Fund's investments in such securities less liquid or more difficult to value. 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, among other things, economic or political developments in a specific country, industry or region.
(K) 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 the 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.
(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 that may provide general indemnifications. The Fund's maximum
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exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Manager believes 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 Investments, 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 an Amended and Restated 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 pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. PineStone Asset Management Inc. (“PineStone” or the “Subadvisor”), a registered investment adviser, serves as the Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement ("Subadvisory Agreement") between New York Life Investments and PineStone, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.80% of the Fund's average daily net assets. During the six-month period ended April 30, 2024, the effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.80%.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that the Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 1.10%; Class C, 2.00%; Class I, 0.85%; Class P, 0.85% and Class R6, 0.84%. This agreement will remain in effect until February 28, 2026, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended April 30, 2024, New York Life Investments earned fees from the Fund in the amount of $109,731 and waived fees and/or reimbursed expenses in the amount of $74,753 and paid the Subadvisor fees in the amount of $54,866.
JPMorgan Chase Bank, N.A. ("JPMorgan") 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 NAVs, and assisting New York Life Investments in conducting various aspects of the Fund's administrative operations. For providing these services to the Fund, JPMorgan is compensated by New York Life Investments.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(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 affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A Plan, the Distributor receives a monthly fee from the Class A shares at an annual rate of 0.25% of the average daily net assets of the Class A shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, 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, for a total 12b-1 fee of 1.00%. Class I, Class R6 and Class P shares are not subject to a distribution and/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 initial sales charges retained on sales of Class A shares during the six-month period ended April 30, 2024, were $183.
During the six-month period ended April 30, 2024, the Fund was also advised that the Distributor did not retain any CDSCs on redemptions of Class C shares.
(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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C"), pursuant to which SS&C performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until
Notes to Financial Statements (Unaudited) (continued)
February 28, 2026, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended April 30, 2024, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived |
Class A | $ 387 | $— |
Class C | 35 | — |
Class I | 7,372 | — |
Class R6 | 1 | — |
(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. As described in the Fund's prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of April 30, 2024, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class A | $27,028 | 1.6% |
Class C | 26,902 | 66.6 |
Class P | 27,109 | 100.0 |
Class R6 | 27,109 | 14.8 |
Note 4-Federal Income Tax
As of April 30, 2024, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
| Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) |
Investments in Securities | $18,167,418 | $10,112,811 | $(94,824) | $10,017,987 |
As of October 31, 2023, for federal income tax purposes, capital loss carryforwards of $563,994, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of the Fund. Accordingly, no capital gains distributions are expected to be
paid to shareholders until net gains have been realized in excess of such amounts.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) |
Unlimited | $— | $564 |
During the period from April 1, 2023 through October 31, 2023 and the
years ended March 31, 2023, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
| 2023 (a) | 2023 |
Distributions paid from: | | |
Ordinary Income | $— | $ 125,758 |
Long-Term Capital Gains | — | 1,357,358 |
Total | $— | $1,483,116 |
(a) | The Fund changed its fiscal year end from March 31 to October 31. |
Note 5–Custodian
JPMorgan is the custodian of cash and securities held by the Fund. Custodial fees are charged to the Fund based on the Fund's net assets and/or the market value of securities held by the Fund and the number of certain transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments 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 July 25, 2023, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate, Daily Simple Secured Overnight Financing Rate ("SOFR") + 0.10%, or the Overnight Bank Funding Rate, whichever is higher. The Credit Agreement expires on July 23, 2024, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 25, 2023, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement. During the six-month period ended April 30, 2024, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.
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Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended April 30, 2024, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended April 30, 2024, purchases and sales of securities, other than short-term securities, were $3,126 and $779, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended April 30, 2024, the period April 1, 2023 through October 31, 2023 and the year ended March 31, 2023, were as follows:
Class A | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 32,113 | $ 611,632 |
Shares issued to shareholders in reinvestment of distributions | 293 | 5,211 |
Shares redeemed | (12,541) | (240,034) |
Net increase (decrease) | 19,865 | $ 376,809 |
Period ended October 31, 2023:(a)(b) | | |
Shares sold | 9,421 | $ 165,573 |
Shares redeemed | (7,040) | (123,541) |
Net increase (decrease) | 2,381 | $ 42,032 |
Year ended March 31, 2023: | | |
Shares sold | 2,307 | $ 37,695 |
Shares issued to shareholders in reinvestment of distributions | 3,392 | 52,775 |
Shares redeemed | (3,723) | (62,689) |
Net increase (decrease) | 1,976 | $ 27,781 |
|
Class C | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 718 | $ 13,100 |
Shares issued to shareholders in reinvestment of distributions | 3 | 54 |
Net increase (decrease) | 721 | $ 13,154 |
Period ended October 31, 2023:(c) | | |
Shares sold | 1,431 | $ 25,000 |
Net increase (decrease) | 1,431 | $ 25,000 |
|
Class I | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 120,215 | $ 2,169,287 |
Shares issued to shareholders in reinvestment of distributions | 6,653 | 118,764 |
Shares redeemed | (21,563) | (409,650) |
Net increase (decrease) | 105,305 | $ 1,878,401 |
Period ended October 31, 2023:(b)(d) | | |
Shares sold | 74,507 | $ 1,277,938 |
Shares redeemed | (389,688) | (6,786,609) |
Net increase (decrease) | (315,181) | $(5,508,671) |
Year ended March 31, 2023: | | |
Shares sold | 66,898 | $ 1,082,460 |
Shares issued to shareholders in reinvestment of distributions | 45,024 | 702,371 |
Shares redeemed | (205,976) | (3,290,324) |
Net increase (decrease) | (94,054) | $(1,505,493) |
|
Class P | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares issued to shareholders in reinvestment of distributions | 8 | $ 139 |
Net increase (decrease) | 8 | $ 139 |
Period ended October 31, 2023:(c) | | |
Shares sold | 1,424 | $ 25,000 |
Net increase (decrease) | 1,424 | $ 25,000 |
|
Class R6 | Shares | Amount |
Six-month period ended April 30, 2024: | | |
Shares sold | 8,302 | $ 165,765 |
Shares issued to shareholders in reinvestment of distributions | 9 | 152 |
Shares redeemed | (45) | (886) |
Net increase (decrease) | 8,266 | $ 165,031 |
Period ended October 31, 2023:(c) | | |
Shares sold | 1,424 | $ 25,000 |
Net increase (decrease) | 1,424 | $ 25,000 |
(a) | Investor Class converted to Class A on August 25, 2023. |
(b) | The Fund changed its fiscal year end from March 31 to October 31. |
(c) | The inception date of the class was August 28, 2023. |
(d) | Institutional Class converted to Class I on August 25, 2023. |
Note 10–Other Matters
As of the date of this report, the Fund faces a heightened level of risk associated with current uncertainty, volatility and state of economies, financial markets, a high interest rate environment, and labor and health conditions around the world. Events such as war, acts of terrorism, recessions, rapid inflation, the imposition of economic sanctions, earthquakes, hurricanes, epidemics and pandemics and other unforeseen natural or human disasters may have broad adverse social, political and
Notes to Financial Statements (Unaudited) (continued)
economic effects on the global economy, which could negatively impact the value of the Fund's investments. Developments that disrupt global economies and financial markets may magnify factors that affect the Fund's performance.
Note 11–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, 2024, events and transactions subsequent to April 30, 2024, through the date the financial statements were issued, have been evaluated by the Manager for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
26 | MainStay PineStone Global Equity Fund |
Discussion of the Operation and Effectiveness of the Fund's Liquidity Risk Management Program (Unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program (the “Program”), which New York Life Investment Management LLC believes is reasonably designed to assess and manage the Fund's liquidity risk. A Fund's liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The Board of Trustees of MainStay Funds Trust (the "Board") previously approved the designation of New York Life Investment Management LLC as administrator of the Program (the “Administrator”). The Administrator has established a Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on February 27, 2024, the Administrator provided the Board with a written report addressing the Program’s operation and assessing the adequacy and effectiveness of its implementation for the period from January 1, 2023, through December 31, 2023 (the "Review Period"), as required under the Liquidity Rule. The report noted that the Administrator concluded that (i) the Program operated effectively to assess and manage the Fund's liquidity risk, (ii) the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund's liquidity developments and (iii) the Fund's investment strategy continues to be appropriate for an open-end fund. In addition, the report summarized the operation of the Program and the information and factors considered by the Administrator in its assessment of the Program’s implementation, such as the liquidity risk assessment framework and the liquidity classification methodologies, and discussed notable geopolitical, market and other economic events that impacted liquidity risk during the Review Period.
In accordance with the Program, the Fund's liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections, and (iii) holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to the Fund’s subadvisor, subject to appropriate oversight by the Administrator, and liquidity classification determinations are made by taking into account the Fund's reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (an “HLIM”). In addition, the Liquidity Rule limits a fund's investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if, immediately after acquisition, doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.
Proxy Voting Policies and Procedures and Proxy Voting Record
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. A description of the policies and procedures that are used to vote proxies relating to portfolio securities of the Fund is available free of charge upon request by calling 800-624-6782 or visiting the SEC’s website at www.sec.gov. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting newyorklifeinvestments.com; or visiting 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 60 days after its first and third fiscal quarter on Form N-PORT. The Fund's holdings report is available free of charge upon request by calling New York Life Investments at 800-624-6782.
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Equity
U.S. Equity
MainStay Epoch U.S. Equity Yield Fund
MainStay Fiera SMID Growth Fund
MainStay PineStone U.S. Equity Fund
MainStay S&P 500 Index Fund
MainStay Winslow Large Cap Growth Fund
MainStay WMC Enduring Capital Fund
MainStay WMC Growth Fund
MainStay WMC Small Companies Fund
MainStay WMC Value Fund
International Equity
MainStay Epoch International Choice Fund
MainStay PineStone International Equity Fund
MainStay WMC International Research Equity Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
MainStay PineStone Global Equity Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Income Fund
MainStay MacKay Strategic Bond Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund
MainStay Short Term Bond Fund
Tax-Exempt Income
MainStay MacKay Arizona Muni Fund
MainStay MacKay California Tax Free Opportunities Fund1
MainStay MacKay Colorado Muni Fund
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund2
MainStay MacKay Oregon Muni Fund
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Strategic Municipal Allocation Fund
MainStay MacKay Tax Free Bond Fund
MainStay MacKay Utah Muni Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Equity Allocation Fund
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam3
Strassen, Luxembourg
CBRE Investment Management Listed Real Assets LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
Fiera Capital Inc.
New York, New York
IndexIQ Advisors LLC3
New York, New York
MacKay Shields LLC3
New York, New York
NYL Investors LLC3
New York, New York
PineStone Asset Management Inc.
Montreal, Québec
Wellington Management Company LLP
Boston, Massachusetts
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC3
Jersey City, New Jersey
Custodian
JPMorgan Chase Bank, N.A.
New York, New York
1.
This Fund is registered for sale in AZ, CA, NV, OR, TX, UT, WA (all share classes); and MI (Class A and Class I shares only); and CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY (Class I and Class C2 shares only).
2. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY, VT (all share classes) and SD (Class R6 shares only). |
3. | An affiliate of New York Life Investment Management LLC. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2024 NYLIFE Distributors LLC. All rights reserved.
6641752 MS081-24 | MSPGE10-06/24 |
(NYLIM) NL551
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. 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 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. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
(a) Section 302 Certifications are attached.
(b) Section 906 Certifications are attached.
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/ Kirk C. Lehneis |
| | Kirk C. Lehneis |
| | President and Principal Executive Officer |
| |
Date: | | July 5, 2024 |
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/ Kirk C. Lehneis |
| | Kirk C. Lehneis |
| | President and Principal Executive Officer |
| |
Date: | | July 5, 2024 |
| | |
By: | | /s/ Jack Benintende |
| | Jack R. Benintende |
| | Treasurer and Principal Financial and Accounting Officer |
| |
Date: | | July 5, 2024 |