Mainstay Funds N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act File Number 811-04550

THE MAINSTAY FUNDS

(Exact name of Registrant as specified in charter)

51 Madison Avenue, New York, NY 10010

(Address of principal executive offices) (Zip code)

J. Kevin Gao, Esq.

169 Lackawanna Avenue

Parsippany, New Jersey 07054

(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 576-7000

Date of fiscal year end: October 31

Date of reporting period: October 31, 2015

FORM N-CSR

Item 1. Reports to Stockholders.

MainStay Unconstrained Bond Fund

Message from the President and Annual Report

October 31, 2015

This Page Intentionally Left Blank

Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	12
Financial Statements	29
Notes to Financial Statements	35
Report of Independent Registered Public Accounting Firm	47
Federal Income Tax Information	48
Proxy Voting Policies and Procedures and Proxy Voting Record	48
Shareholder Reports and Quarterly Portfolio Disclosure	48
Board of Trustees, Officers and Advisory Board Members	49

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

Investment and Performance Comparison¹(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–7.08 –2.70	%		2.66 3.61	%		4.82 5.31	%		1.04 1.04	%
Investor Class Shares3	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–7.07 –2.70			2.51 3.46			4.71 5.20			1.06 1.06
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–8.15 –3.45			2.37 2.71			4.42 4.42			1.81 1.81
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		–4.40 –3.46			2.69 2.69			4.41 4.41			1.81 1.81
Class I Shares	No Sales Charge			–2.56			3.84			5.61			0.79
Class R2 Shares4	No Sales Charge			–2.81			3.50			5.20			1.14

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class R2 shares, first offered on February 28, 2014, include the historical performance of Class A shares through February 27, 2014, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R2 shares would likely have been different.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
Barclays U.S. Aggregate Bond Index5		1.96	%		3.03	%		4.72	%
BofA Merrill Lynch U.S. Dollar 3-Month LIBOR Constant Maturity Index6		0.26			0.31			1.79
Morningstar Nontraditional Bond Category Average7		–1.19			2.07			3.64

5. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasurys, 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. The Barclays U.S. Aggregate Bond Index is the Fund’s primary broad-based securities market index for comparison purposes. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

6. The BofA Merrill Lynch U.S. Dollar 3-Month LIBOR Constant Maturity Index represents the London InterBank Offered Rate (“LIBOR”) with a constant 3-month average maturity and is the Fund’s secondary benchmark. LIBOR is

a composite of interest rates at which banks borrow from one another in the London market, and it is a widely used benchmark for short-term interest rates. An investment cannot be made directly in an index.

7. The Morningstar Nontraditional Bond Category Average contains funds that pursue strategies divergent in one or more ways from conventional practice in the broader bond-fund universe. Morningstar category averages are equal-weighted returns based on constituents of the category at the end of the period. The Fund has selected the Morningstar nontraditional bond category average as an additional benchmark. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

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 Unconstrained Bond Fund

Cost in Dollars of a $1,000 Investment in MainStay Unconstrained Bond Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	967.10	$	5.06	$	1,020.10	$	5.19
Investor Class Shares	$	1,000.00	$	966.20	$	5.15	$	1,020.00	$	5.30
Class B Shares	$	1,000.00	$	963.20	$	8.86	$	1,016.20	$	9.10
Class C Shares	$	1,000.00	$	963.20	$	8.86	$	1,016.20	$	9.10
Class I Shares	$	1,000.00	$	967.30	$	3.82	$	1,021.30	$	3.92
Class R2 Shares	$	1,000.00	$	966.50	$	5.50	$	1,019.60	$	5.65

1. Expenses are equal to the Fund’s annualized expense ratio of each class (1.02% for Class A, 1.04% for Investor Class, 1.79% for Class B and Class C, 0.77% for Class I and 1.11% for Class R2) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Portfolio Composition as of October 31, 2015 (Unaudited)

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

‡ Less than one-tenth of a percent.

Top Ten Holdings or Issuers Held as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. Bank of America Corp., 3.30%–8.57%, due 6/1/19–12/29/49

2. CITGO Petroleum Corp., 4.50%–6.25%, due 7/29/21–8/15/22

3. Tenet Healthcare Corp., 3.837%–8.125%, due 3/1/19–4/1/22

4. Morgan Stanley, 4.875%–5.45%, due 11/1/22–7/29/49

5. Realogy Corp., 3.75%–4.446%, due 10/10/16–3/5/20

  6. Energy Transfer Equity, L.P., 3.25%–5.875%, due 12/2/19–1/15/24

  7. USAGM HoldCo LLC, 4.75%–9.50%, due 7/28/22–7/28/23

  8. Signode Industrial Group U.S., Inc., 3.75%, due 5/1/21

  9. Ally Financial, Inc., 3.50%–8.00%, due 1/27/19–11/1/31

10. Hilton Worldwide Finance LLC, 3.50%, due 10/26/20

8 MainStay Unconstrained Bond Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Dan Roberts, PhD, Michael Kimble, CFA, Louis N. Cohen, CFA, and Taylor Wagenseil of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay Unconstrained Bond Fund perform relative to its benchmarks and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay Unconstrained Bond Fund returned –2.70% for Class A shares and Investor Class shares, –3.45% for Class B shares and –3.46% for Class C shares for the 12 months ended October 31, 2015. Over the same period, the Fund returned –2.56% for Class I shares and –2.81% for Class R2 shares. For the 12 months ended October 31, 2015, all share classes underperformed the 1.96% return of the Barclays U.S. Aggregate Bond Index,¹ which is the Fund’s primary benchmark. Over the same period, all share classes also underperformed the 0.26% return of the BofA Merrill Lynch U.S. Dollar 3-Month LIBOR Constant Maturity Index,¹ which is the Fund’s secondary benchmark. For the 12 months ended October 31, 2015, all share classes also underperformed the –1.19% return of the Morningstar Nontraditional Bond Category Average,² which is an additional benchmark for the Fund. See page 5 for Fund returns with applicable sales charges.

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

During the reporting period, MacKay Shields announced that effective September 2016, Taylor Wagenseil will no longer serve as a portfolio manager of the Fund. Dan Roberts, Louis Cohen and Michael Kimble will continue to manage the Fund.

During the reporting period, how was the Fund’s performance materially affected by investments in derivatives?

In order to manage the Fund’s duration,³ the Fund held a sizeable short position in two year U.S. Treasury securities through the use of U.S. Treasury futures. This position made a negative contribution to the Fund’s performance. (Contributions take weightings and total returns into account.)

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

Throughout the reporting period, our strategy was to maintain long positions in credit, including high-yield bonds and bank loans, combined with a short duration posture and yield-curve⁴ flattening bias. This positioning hurt relative performance during the second half of the reporting period. U.S. Treasury yields

generally declined during the reporting period; and because the Fund’s duration was shorter than that of the Barclays U.S. Aggregate Bond Index, the Fund was less sensitive to yield changes.

Corporate bonds trailed comparable-duration U.S. Treasury securities during the reporting period, with the performance gap more pronounced for below-investment-grade securities. Corporate-bond underperformance can be explained by dampened investor confidence in light of the sluggish economic recovery and lower commodity prices. The Fund held overweight positions relative to the Barclays U.S. Aggregate Bond Index in investment-grade and high-yield corporate bonds. Hard-asset segments such as energy and metals/mining were among the laggards in the Fund, while the Fund’s higher-quality financials and slightly longer duration bonds performed well. During the reporting period, the Fund slightly reduced its exposure to weaker credit profiles within the energy sector.

The senior loan market was not immune to the problems facing risky assets, including seasonal illiquidity, severe pressure in fixed-rate high-yield bonds and volatile commodity and asset prices globally. Even so, senior loans remained in positive territory as of October 31, 2015. We believed that senior loans were likely to better weather the energy and metals/mining storm that challenged their high-yield bond counterparts from a fundamental credit loss perspective.

We have not observed any meaningful earnings disappointments or economic developments that would force us to change our outlook. We believed that U.S. corporate credit fundamentals were sound and that credit-sensitive bonds continued to offer good relative value. We were constructive on both U.S. growth and valuations within U.S. credit markets. Since we did not believe that the domestic economic cycle had reached a turning point, we were not inclined to reduce the Fund’s overall risk. In fact, we believed that investor angst—reflected in declining prices and widening spreads⁵—may have reflected an overcompensation for fundamentals.

What was the Fund’s duration strategy during the reporting period?

The Fund’s duration was shorter than that of the Barclays U.S. Aggregate Bond Index throughout the reporting period. To reduce the Fund’s duration and minimize sensitivity to a move in

1. See footnote on page 6 for more information on this index.

2. See footnote on page 6 for more information on the Morningstar Nontraditional Bond Category Average.

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

4. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.

5. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time. The term “credit spread” typically refers to the difference in yield between corporate or municipal bonds (or a specific category of these bonds) and comparable U.S. Treasury issues. The term “spread product” refers to asset classes that typically trade at a spread to comparable U.S. Treasury securities.

9

interest rates, we maintained a sizeable short position in two-year U.S. Treasury securities through U.S. Treasury futures and interest-rate swaps. At the end of the reporting period, the Fund’s duration was just above 1.0 year, compared to the 5.6 year duration of the Barclays U.S. Aggregate Bond Index.

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

Throughout the reporting period, we considered a number of factors in positioning the Fund. These factors included inconsistent economic data, global central bank monetary policy, volatility in energy prices, China’s slowing economy and a flattening yield curve. We believed that corporate bonds—investment-grade and high-yield—warranted an overweight position relative to government-related securities because the low-interest-rate environment had sparked healthy demand for higher-yielding products. Additionally, improving profitability signaled that corporations were doing more with

less: less leverage, less short-term debt, and smaller funding gaps. In turn, we believed that strengthening credit fundamentals supported the narrowing of spreads, as did a favorable supply/demand balance for corporate debt. The positive momentum of the stock market could have also tended to strengthen the performance of corporate bonds across the credit-quality spectrum. For these reasons, we did not make any major shifts in the Fund’s positioning during the reporting period and we maintained the Fund’s credit bias. During the reporting period, however, we did reduce our position in emerging-markets because of idiosyncratic risks that bubbled up in that sector.

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

The Fund’s position in bank loans held up well in a volatile market and posted positive returns during the reporting period. Our position in high-yield corporate bonds detracted from performance, as the yield advantage was more than offset by the effects of widening spreads. Within the Fund’s high-yield bond position, our allocation to the energy sector was the largest detractor. The outlook for companies involved in the exploration and production of gas and oil was clouded by an imbalance of supply and demand that led to price declines. Basic Energy Services, Chesapeake Energy and Samson Investment were among the energy positions that performed poorly. Some Fund positions in the basic industry sector were hurt by lower commodity prices.

Positive contributors within the high-yield bond market included homebuilders and related entities, such as KB Homes and

Building Materials Corp., which benefited from an upturn in housing. In the investment-grade bond portion of the Fund, lower interest rates enabled bank holdings to preserve margins and profitability. Among the Fund positions that benefited performance were Goldman Sachs, JPMorgan Chase, Bank of America and Morgan Stanley.

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

During the reporting period, we initiated Fund positions in power generation and utility company IPALCO Enterprises and oil and gas pipeline company Targa Resources Partners. IPALCO Enterprises, a subsidiary of AES Corp., is an Indiana-based utility that had a stable regulated business and strong cash flow. Targa Resources Partners’ bonds declined as energy prices fell. The pipeline operator, however, generally has minimal exposure to oil and gas prices. The company makes its money on the transfer of oil and gas through its network of pipelines.

We sold the Fund’s positions in pipeline company Energy Transfer Partners and insurance company Liberty Mutual. Energy Transfer’s partnership is being liquidated, so we sold the bonds on a relative-value trade and bought the bonds of Targa Resources Partners. We believed that the Fund’s Liberty Mutual bonds might not be called in 2017 as we had previously anticipated. We sold the position, expecting duration to widen and volatility to increase as the call became less likely.

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

During the reporting period, we reduced the Fund’s positon in emerging-market corporate bonds. Despite recent improvements, emerging markets still faced elevated idiosyncratic risk and were subject to weak commodity prices. We selectively increased the Fund’s position in domestic high-yield corporate bonds by paring back exposure to companies with weaker credit profiles and selectively participating in the new issue market. We also moderately increased the Fund’s exposure to investment-grade bonds.

How was the Fund positioned at the end of the reporting period?

In spite market volatility, we did not change our baseline view on Federal Reserve policy, economic fundamentals and valuations within the credit markets. At end of the reporting period, we believed that economic growth would continue to be moderate and that the Federal Reserve would remain highly accommodative. Even so, we believed that it was increasingly likely that the Federal Open Market Committee would raise the federal funds target rate in the coming months. Our central belief is that monetary policy plays a critical role in the creation

10 MainStay Unconstrained Bond Fund

of credit and that the Federal Reserve has the ability to control monetary policy through its influence on short-term interest rates.

As of October 31, 2015, the Fund maintained an overweight position relative to the Barclays U.S. Aggregate Bond Index in

spread product, specifically in high-yield bonds. The increased volatility experienced in the third quarter of 2015 created a wider disparity between spreads and defaults, strengthening our resolve to maintain an overweight position in high-yield securities. As of the same date, the Fund held underweight positions relative to the Index in sectors that tend to be more interest-rate sensitive, such as U.S. Treasury securities and agency securities. As of October 31, 2015, the Fund’s duration remained well below that of the Barclays U.S. Aggregate Bond Index.

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

11

Portfolio of Investments October 31, 2015

	Principal Amount		Value
Long-Term Bonds 92.6%† Asset-Backed Securities 0.2%
Home Equity 0.1%
Carrington Mortgage Loan Trust Series 2006-NC4, Class A5 0.254%, due 10/25/36 (a)	$	296,665	$	280,894
Citigroup Mortgage Loan Trust Series 2007-AHL2, Class A3A 0.264%, due 5/25/37 (a)		150,393		106,322
First NLC Trust Series 2007-1, Class A1 0.264%, due 8/25/37 (a)(b)		398,271		219,417
GSAA Home Equity Trust Series 2006-14, Class A1 0.244%, due 9/25/36 (a)		858,673		450,603
Home Equity Loan Trust Series 2007-FRE1, Class 2AV1 0.324%, due 4/25/37 (a)		112,993		109,057
HSI Asset Securitization Corp. Trust Series 2007-NC1, Class A1 0.294%, due 4/25/37 (a)		51,897		51,379
JPMorgan Mortgage Acquisition Trust Series 2007-HE1, Class AF1 0.294%, due 3/25/47 (a)		152,167		93,277
MASTR Asset Backed Securities Trust Series 2006-HE4, Class A1 0.244%, due 11/25/36 (a)		104,366		47,964
Morgan Stanley ABS Capital I, Inc. Series 2006-HE6, Class A2B 0.294%, due 9/25/36 (a)		364,032		183,279
Series 2006-HE8, Class A2B 0.294%, due 10/25/36 (a)		189,844		110,656
Series 2007-HE4, Class A2A 0.304%, due 2/25/37 (a)		97,878		44,326
Series 2007-NC2, Class A2FP 0.344%, due 2/25/37 (a)		375,477		226,127
Renaissance Home Equity Loan Trust Series 2007-2, Class AF1 5.893%, due 6/25/37 (c)		898,334		459,532
Securitized Asset Backed Receivables LLC Trust Series 2007-BR4, Class A2A 0.284%, due 5/25/37 (a)		454,581		278,290
Soundview Home Equity Loan Trust Series 2007-OPT1, Class 2A1 0.274%, due 6/25/37 (a)		389,619		234,524
Series 2006-EQ2, Class A2 0.304%, due 1/25/37 (a)		247,590		166,231

	Principal Amount		Value
Home Equity (continued)
Specialty Underwriting & Residential Finance Trust Series 2006-BC4, Class A2B 0.304%, due 9/25/37 (a)	$	983,570	$	460,456
				3,522,334
Student Loans 0.1%
KeyCorp Student Loan Trust Series 2000-A, Class A2 0.649%, due 5/25/29 (a)		1,202,848		1,163,768
Total Asset-Backed Securities (Cost $5,955,534)				4,686,102
Convertible Bonds 0.4%
Leisure Time 0.3%
Jarden Corp. 1.125%, due 3/15/34		7,300,000		8,084,750
Transportation 0.1%
Hornbeck Offshore Services, Inc. 1.50%, due 9/1/19		1,900,000		1,409,563
Total Convertible Bonds (Cost $9,379,837)				9,494,313
Corporate Bonds 74.0%
Advertising 0.2%
Lamar Media Corp. 5.00%, due 5/1/23		830,000		852,825
5.375%, due 1/15/24		2,695,000		2,796,063
				3,648,888
Aerospace & Defense 1.5%
KLX, Inc. 5.875%, due 12/1/22 (b)		8,935,000		9,119,284
Moog, Inc. 5.25%, due 12/1/22 (b)		5,505,000		5,615,100
Orbital ATK, Inc. 5.25%, due 10/1/21		4,250,000		4,345,625
5.50%, due 10/1/23 (b)		4,045,000		4,227,025
TransDigm, Inc. 6.00%, due 7/15/22		5,500,000		5,555,000
7.50%, due 7/15/21		4,440,000		4,684,200
				33,546,234
Airlines 1.0%
Continental Airlines, Inc. Series 2007-1, Class A 5.983%, due 10/19/23		3,074,587		3,412,792

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings or issuers held, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

	Principal Amount		Value
Corporate Bonds (continued)
Airlines (continued)
Continental Airlines, Inc. (continued)
Series 2003-ERJ1 7.875%, due 1/2/20	$	291,241	$	303,153
Series 2005-ERJ1 9.798%, due 10/1/22		490,811		542,347
Delta Air Lines, Inc. Series 2011-1 Class A Pass Through Trust 5.30%, due 10/15/20		976,051		1,035,005
U.S. Airways Group, Inc. Class A Series 2012-1 Pass Through Trust 5.90%, due 4/1/26		2,400,938		2,653,036
Class A Series 2010-1 Pass Through Trust 6.25%, due 10/22/24		7,272,221		8,144,887
United Airlines, Inc. Series 2014-2, Class B Pass Through Trust 4.625%, due 3/3/24		6,185,000		6,169,537
				22,260,757
Auto Manufacturers 1.3%
Ford Holdings LLC 9.30%, due 3/1/30 (d)		93,000		130,078
Ford Motor Co. 7.45%, due 7/16/31		39,000		50,058
8.90%, due 1/15/32		3,009,000		3,859,337
Ford Motor Credit Co. LLC 8.00%, due 12/15/16 (d)		22,000		23,536
General Motors Co. 3.50%, due 10/2/18		3,000,000		3,049,830
General Motors Financial Co., Inc. 3.25%, due 5/15/18		670,000		678,144
3.45%, due 4/10/22 (d)		12,950,000		12,645,973
Navistar International Corp. 8.25%, due 11/1/21		12,049,000		9,398,220
				29,835,176
Auto Parts & Equipment 2.5%
Dana Holding Corp. 5.375%, due 9/15/21		9,575,000		9,766,500
Goodyear Tire & Rubber Co. (The) 6.50%, due 3/1/21 (d)		6,977,000		7,413,062
7.00%, due 5/15/22		1,000,000		1,087,500
8.25%, due 8/15/20		3,455,000		3,613,930
MPG Holdco I, Inc. 7.375%, due 10/15/22		12,480,000		13,260,000
Schaeffler Finance B.V. 4.75%, due 5/15/21 (b)		3,475,000		3,535,813
4.75%, due 5/15/23 (b)		6,490,000		6,538,675

	Principal Amount		Value
Auto Parts & Equipment (continued)
ZF North America Capital, Inc. 4.50%, due 4/29/22 (b)	$	10,440,000	$	10,511,723
				55,727,203
Banks 7.2%
¨Bank of America Corp. 3.30%, due 1/11/23		510,000		508,524
4.25%, due 10/22/26		7,260,000		7,281,969
5.125%, due 12/29/49 (a)		8,395,000		8,227,100
5.625%, due 7/1/20		1,720,000		1,937,470
6.11%, due 1/29/37		2,807,000		3,253,526
7.625%, due 6/1/19		420,000		494,779
8.57%, due 11/15/24		1,645,000		2,091,246
Barclays Bank PLC 5.14%, due 10/14/20 (d)		8,037,000		8,810,047
Capital One Financial Corp. 5.55%, due 12/29/49 (a)		14,975,000		15,003,078
CIT Group, Inc. 3.875%, due 2/19/19 (d)		2,037,000		2,067,555
5.00%, due 8/1/23		2,000,000		2,095,000
6.625%, due 4/1/18 (b)		7,100,000		7,650,250
Citigroup, Inc. 6.30%, due 12/29/49 (a)(d)		10,800,000		10,681,740
Citizens Financial Group, Inc. 4.15%, due 9/28/22 (b)		2,270,000		2,306,374
Discover Bank 7.00%, due 4/15/20		3,895,000		4,485,019
Goldman Sachs Group, Inc. (The) 3.625%, due 1/22/23		7,257,000		7,410,014
HSBC Holdings PLC 6.375%, due 12/29/49 (a)(d)		12,615,000		12,495,284
JPMorgan Chase & Co. 6.125%, due 12/29/49 (a)		7,595,000		7,756,773
7.90%, due 4/29/49 (a)		3,650,000		3,792,350
Mellon Capital III 6.369%, due 9/5/66 (a)		GBP 2,950,000		4,597,743
Mizuho Financial Group Cayman 3, Ltd. 4.60%, due 3/27/24 (b)	$	9,300,000		9,538,740
¨Morgan Stanley 4.875%, due 11/1/22		4,287,000		4,622,865
5.00%, due 11/24/25		2,465,000		2,637,587
5.45%, due 7/29/49 (a)		11,425,000		11,239,344
Royal Bank of Scotland Group PLC 5.125%, due 5/28/24		8,746,000		8,967,326
Wells Fargo & Co. 5.90%, due 12/29/49 (a)		10,050,000		10,301,250
				160,252,953
Building Materials 1.3%
Associated Materials LLC / AMH New Finance, Inc. 9.125%, due 11/1/17		1,223,000		975,343

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Building Materials (continued)
Building Materials Corporation of America 5.375%, due 11/15/24 (b)	$	11,150,000	$	11,470,562
Masco Corp. 7.125%, due 3/15/20		2,250,000		2,615,625
USG Corp. 5.875%, due 11/1/21 (b)		6,755,000		7,118,081
6.30%, due 11/15/16		1,245,000		1,285,462
7.875%, due 3/30/20 (b)		4,258,000		4,492,190
9.75%, due 1/15/18		363,000		407,468
				28,364,731
Chemicals 1.3%
Ashland, Inc. 4.75%, due 8/15/22		2,970,000		2,971,634
Axalta Coating Systems U.S. Holdings, Inc. / Axalta Coating Systems Dutch Holding B.V. 7.375%, due 5/1/21 (b)		6,356,000		6,721,470
Dow Chemical Co. (The) 8.55%, due 5/15/19		2,099,000		2,524,381
Hexion, Inc. 6.625%, due 4/15/20		2,385,000		2,021,288
8.875%, due 2/1/18		2,283,000		1,746,495
Huntsman International LLC 5.125%, due 4/15/21		EUR 3,275,000		3,488,812
5.125%, due 11/15/22 (b)	$	3,500,000		3,255,000
WR Grace & Co. 5.125%, due 10/1/21 (b)		6,410,000		6,666,400
				29,395,480
Commercial Services 1.9%
Avis Budget Car Rental LLC / Avis Budget Finance, Inc. 5.125%, due 6/1/22 (b)		5,000,000		5,103,700
5.50%, due 4/1/23		6,282,000		6,509,722
Hertz Corp. (The) 6.25%, due 10/15/22		8,500,000		8,755,000
7.375%, due 1/15/21		1,630,000		1,696,211
Iron Mountain Europe PLC 6.125%, due 9/15/22 (b)		GBP 4,475,000		7,005,586
Service Corporation International 5.375%, due 1/15/22	$	1,835,000		1,935,925
United Rentals North America, Inc. 4.625%, due 7/15/23		5,710,000		5,734,953
5.75%, due 11/15/24		1,750,000		1,776,250
6.125%, due 6/15/23		4,259,000		4,444,266
				42,961,613

	Principal Amount		Value
Computers 0.5%
NCR Corp. 5.00%, due 7/15/22	$	7,215,000	$	7,088,737
6.375%, due 12/15/23		3,350,000		3,450,500
				10,539,237
Cosmetics & Personal Care 0.3%
Albea Beauty Holdings S.A. 8.375%, due 11/1/19 (b)		5,470,000		5,750,338
Diversified Financial Services 0.3%
GE Capital Trust II Series Reg S 5.50%, due 9/15/67 (a)		EUR 2,100,000		2,413,404
GE Capital Trust IV Series Reg S 4.625%, due 9/15/66 (a)		1,223,000		1,357,280
General Electric Capital Corp. Series Reg S 6.50%, due 9/15/67 (a)		GBP 815,000		1,300,378
Peachtree Corners Funding Trust 3.976%, due 2/15/25 (b)	$	1,690,000		1,700,863
				6,771,925
Electric 1.9%
Calpine Corp. 5.75%, due 1/15/25		10,680,000		10,119,300
FirstEnergy Transmission LLC 5.45%, due 7/15/44 (b)		10,815,000		11,114,987
Great Plains Energy, Inc. 4.85%, due 6/1/21 (d)		5,200,000		5,654,147
5.292%, due 6/15/22 (c)		663,000		734,674
IPALCO Enterprises, Inc. 3.45%, due 7/15/20 (b)		8,560,000		8,453,000
WEC Energy Group, Inc. 6.25%, due 5/15/67 (a)		7,793,280		6,526,872
				42,602,980
Engineering & Construction 0.4%
MasTec, Inc. 4.875%, due 3/15/23		1,704,000		1,427,100
SBA Communications Corp. 4.875%, due 7/15/22		6,561,000		6,708,294
				8,135,394
Entertainment 1.5%
Isle of Capri Casinos, Inc. 5.875%, due 3/15/21		485,000		510,462
8.875%, due 6/15/20		6,815,000		7,326,125
Mohegan Tribal Gaming Authority 9.75%, due 9/1/21		5,102,000		5,255,060
Pinnacle Entertainment, Inc. 7.75%, due 4/1/22		11,200,000		12,404,000
Scientific Games International, Inc. 7.00%, due 1/1/22 (b)		1,010,000		1,015,050

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

	Principal Amount		Value
Corporate Bonds (continued)
Entertainment (continued)
Scientific Games International, Inc. (continued)
10.00%, due 12/1/22	$	6,635,000	$	5,871,975
				32,382,672
Finance—Auto Loans 0.7%
¨Ally Financial, Inc. 3.50%, due 1/27/19		7,900,000		7,949,375
8.00%, due 3/15/20		565,000		668,112
8.00%, due 11/1/31		6,360,000		7,711,500
				16,328,987
Finance—Consumer Loans 1.8%
HSBC Finance Capital Trust IX 5.911%, due 11/30/35 (a)(d)		4,575,000		4,579,575
Navient Corp. 5.00%, due 10/26/20		3,210,000		3,005,363
8.00%, due 3/25/20		6,316,000		6,694,960
OneMain Financial Holdings, Inc. 7.25%, due 12/15/21 (b)		11,560,000		12,080,200
Springleaf Finance Corp. 5.25%, due 12/15/19		2,560,000		2,547,200
6.00%, due 6/1/20		5,100,000		5,163,750
7.75%, due 10/1/21		4,850,000		5,219,812
				39,290,860
Finance—Credit Card 0.4%
American Express Co. 6.80%, due 9/1/66 (a)		5,901,000		5,939,356
Capital One Bank USA N.A. 3.375%, due 2/15/23		3,000,000		2,935,581
				8,874,937
Finance—Investment Banker/Broker 0.1%
Jefferies Group LLC 5.125%, due 1/20/23		813,000		813,652
6.45%, due 6/8/27		1,100,000		1,147,123
				1,960,775
Finance—Other Services 0.4%
Icahn Enterprises, L.P. / Icahn Enterprises Finance Corp. 5.875%, due 2/1/22		1,850,000		1,905,500
6.00%, due 8/1/20		6,880,000		7,181,000
				9,086,500
Food 1.1%
Cosan Luxembourg S.A. 5.00%, due 3/14/23 (b)		1,100,000		924,000
Kerry Group Financial Services 3.20%, due 4/9/23 (b)		4,595,000		4,461,024
Premier Foods Finance PLC 6.50%, due 3/15/21 (b)		GBP 4,500,000		6,446,390

	Principal Amount		Value
Food (continued)
Smithfield Foods, Inc. 7.75%, due 7/1/17	$	1,361,000	$	1,473,283
TreeHouse Foods, Inc. 4.875%, due 3/15/22		6,125,000		5,925,937
Tyson Foods, Inc. 3.95%, due 8/15/24		5,450,000		5,563,992
				24,794,626
Food Services 0.3%
Aramark Services, Inc. 5.75%, due 3/15/20		5,475,000		5,714,531
Forest Products & Paper 0.2%
Domtar Corp. 10.75%, due 6/1/17		308,000		347,811
Georgia-Pacific LLC 8.00%, due 1/15/24		2,945,000		3,774,286
International Paper Co. 7.30%, due 11/15/39		693,000		834,108
				4,956,205
Gas 0.2%
AmeriGas Partners, L.P. / AmeriGas Finance Corp. 6.25%, due 8/20/19 (d)		4,467,000		4,567,508
Health Care—Products 1.4%
Alere, Inc. 6.50%, due 6/15/20		475,000		490,437
Hologic, Inc. 5.25%, due 7/15/22 (b)		11,380,000		11,877,875
Kinetic Concepts, Inc. / KCI USA, Inc. 10.50%, due 11/1/18		6,025,000		6,361,797
Mallinckrodt International Finance S.A. 4.75%, due 4/15/23		4,485,000		3,901,950
Mallinckrodt International Finance S.A. / Mallinckrodt CB LLC 4.875%, due 4/15/20 (b)		1,900,000		1,821,625
5.75%, due 8/1/22 (b)		4,485,000		4,263,531
Zimmer Biomet Holdings, Inc. 2.70%, due 4/1/20		1,895,000		1,889,467
				30,606,682
Health Care—Services 2.9%
CHS / Community Health Systems, Inc. 6.875%, due 2/1/22		11,735,000		11,823,012
DaVita HealthCare Partners, Inc. 5.125%, due 7/15/24		1,925,000		1,953,875
5.75%, due 8/15/22		6,825,000		7,166,250
Fresenius Medical Care U.S. Finance II, Inc. 6.50%, due 9/15/18 (b)		2,500,000		2,743,750

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Health Care—Services (continued)
HCA, Inc. 5.00%, due 3/15/24	$	9,645,000	$	9,934,350
5.875%, due 3/15/22		2,500,000		2,750,000
7.50%, due 2/15/22		2,000,000		2,300,000
MPH Acquisition Holdings LLC 6.625%, due 4/1/22 (b)		6,780,000		6,915,600
¨Tenet Healthcare Corp. 3.837%, due 6/15/20 (a)(b)		6,250,000		6,203,125
5.50%, due 3/1/19		3,500,000		3,447,500
6.00%, due 10/1/20		8,000,000		8,640,000
8.125%, due 4/1/22		1,000,000		1,057,500
				64,934,962
Holding Company—Diversified 0.3%
Stena AB 7.00%, due 2/1/24 (b)		8,000,000		7,300,000
Home Builders 4.8%
Beazer Homes USA, Inc. 5.75%, due 6/15/19		4,206,000		4,048,275
7.25%, due 2/1/23 (d)		1,000,000		942,500
CalAtlantic Group, Inc. 6.25%, due 12/15/21		2,875,000		3,112,188
8.375%, due 1/15/21		4,560,000		5,409,528
D.R. Horton, Inc. 3.75%, due 3/1/19		4,750,000		4,880,625
5.75%, due 8/15/23		4,250,000		4,643,125
K Hovnanian Enterprises, Inc. 7.00%, due 1/15/19 (b)		3,100,000		2,464,500
7.25%, due 10/15/20 (b)		8,110,000		7,623,400
KB Home 7.25%, due 6/15/18		3,300,000		3,531,000
8.00%, due 3/15/20		2,250,000		2,446,875
Lennar Corp. 4.50%, due 6/15/19		5,800,000		6,017,500
4.50%, due 11/15/19		7,400,000		7,659,000
MDC Holdings, Inc. 5.50%, due 1/15/24		7,025,000		7,165,500
5.625%, due 2/1/20		1,608,000		1,680,360
Meritage Homes Corp. 7.00%, due 4/1/22		8,800,000		9,636,000
Shea Homes, L.P. / Shea Homes Funding Corp. 5.875%, due 4/1/23 (b)		11,150,000		11,665,687
Toll Brothers Finance Corp. 5.875%, due 2/15/22		5,750,000		6,188,438
6.75%, due 11/1/19		3,850,000		4,350,500
TRI Pointe Holdings, Inc. 4.375%, due 6/15/19		5,871,000		5,834,306

	Principal Amount		Value
Home Builders (continued)
TRI Pointe Holdings, Inc. (continued)
5.875%, due 6/15/24	$	6,950,000	$	6,950,000
				106,249,307
Household Products & Wares 0.2%
Spectrum Brands, Inc. 5.75%, due 7/15/25 (b)		5,085,000		5,421,881
Insurance 4.2%
Allstate Corp. (The) 6.50%, due 5/15/67 (a)		8,525,000		9,420,125
Chubb Corp. (The) 6.375%, due 3/29/67 (a)		9,873,000		9,478,080
Genworth Holdings, Inc. 4.90%, due 8/15/23		4,475,000		3,389,813
6.15%, due 11/15/66 (a)		7,233,000		3,218,685
7.20%, due 2/15/21		1,145,000		1,087,750
Liberty Mutual Group, Inc. 4.25%, due 6/15/23 (b)		390,000		399,718
6.50%, due 3/15/35 (b)		870,000		1,033,877
7.80%, due 3/7/87 (b)		7,453,000		8,738,643
10.75%, due 6/15/88 (a)(b)		938,000		1,407,000
Lincoln National Corp. 7.00%, due 5/17/66 (a)		3,537,000		2,960,027
Oil Insurance, Ltd. 3.309%, due 12/29/49 (a)(b)		8,452,000		7,437,760
Pacific Life Insurance Co. 7.90%, due 12/30/23 (b)		1,150,000		1,437,314
9.25%, due 6/15/39 (b)		504,000		743,902
Progressive Corp. (The) 6.70%, due 6/15/67 (a)		612,000		615,060
Protective Life Corp. 8.45%, due 10/15/39		5,546,000		7,354,462
Provident Cos., Inc. 7.25%, due 3/15/28		5,460,000		6,700,201
Prudential Financial, Inc. 5.625%, due 6/15/43 (a)		3,120,000		3,265,080
Scottish Widows PLC Series Reg S 5.50%, due 6/16/23		GBP 6,500,000		10,357,982
Swiss Re Capital I, L.P. 6.854%, due 5/29/49 (a)(b)	$	571,000		579,137
Validus Holdings, Ltd. 8.875%, due 1/26/40		5,383,000		6,923,539
Voya Financial, Inc. 5.50%, due 7/15/22		3,350,000		3,793,007
XLIT, Ltd. 6.50%, due 10/29/49 (a)		4,116,000		3,283,333
				93,624,495
Iron & Steel 1.2%
AK Steel Corp. 7.625%, due 10/1/21		9,410,000		4,493,275
8.375%, due 4/1/22		2,200,000		1,034,000

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

	Principal Amount		Value
Corporate Bonds (continued)
Iron & Steel (continued)
Allegheny Ludlum Corp. 6.95%, due 12/15/25 (d)	$	693,000	$	638,426
ArcelorMittal 6.125%, due 6/1/18 (d)		2,000,000		2,005,000
7.00%, due 2/25/22		6,175,000		5,850,813
Cliffs Natural Resources, Inc. 5.90%, due 3/15/20		1,140,000		364,800
5.95%, due 1/15/18		2,526,000		1,300,890
Steel Dynamics, Inc. 5.25%, due 4/15/23		7,666,000		7,455,185
United States Steel Corp. 7.375%, due 4/1/20		4,039,000		3,009,055
				26,151,444
Leisure Time 0.5%
NCL Corp., Ltd. 5.25%, due 11/15/19 (b)		4,500,000		4,668,750
Royal Caribbean Cruises, Ltd. 7.25%, due 3/15/18		6,115,000		6,695,925
				11,364,675
Lodging 1.2%
MGM Resorts International 6.00%, due 3/15/23		7,600,000		7,714,000
6.75%, due 10/1/20		2,794,000		2,975,610
Starwood Hotels & Resorts Worldwide, Inc. 6.75%, due 5/15/18		946,000		1,037,160
7.15%, due 12/1/19		2,341,000		2,700,702
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp. 5.375%, due 3/15/22		8,100,000		8,019,000
5.50%, due 3/1/25 (b)		3,600,000		3,378,780
				25,825,252
Machinery—Construction & Mining 0.4%
Terex Corp. 6.00%, due 5/15/21		3,110,000		3,079,522
6.50%, due 4/1/20		5,000,000		5,037,500
				8,117,022
Machinery—Diversified 0.6%
Zebra Technologies Corp. 7.25%, due 10/15/22		11,860,000		12,942,225
Media 2.4%
CCO Holdings LLC / CCO Holdings Capital Corp. 5.25%, due 3/15/21		1,445,000		1,491,963
CCO Safari II LLC 4.464%, due 7/23/22 (b)		13,655,000		13,852,970

	Principal Amount		Value
Media (continued)
Clear Channel Worldwide Holdings, Inc. Series B 6.50%, due 11/15/22	$	7,405,000	$	7,719,712
Series B 7.625%, due 3/15/20		4,270,000		4,430,125
Cox Communications, Inc. 6.95%, due 6/1/38 (b)		2,241,000		2,417,934
DISH DBS Corp. 4.25%, due 4/1/18		7,500,000		7,490,625
6.75%, due 6/1/21		4,265,000		4,403,613
iHeartCommunications, Inc. 9.00%, due 12/15/19		2,600,000		2,200,250
9.00%, due 3/1/21		8,845,000		7,275,012
Time Warner Entertainment Co., L.P. 8.375%, due 3/15/23		1,087,000		1,349,063
				52,631,267
Mining 0.2%
Aleris International, Inc. 7.875%, due 11/1/20		2,057,000		1,933,580
Rio Tinto Finance USA, Ltd. 9.00%, due 5/1/19		1,500,000		1,821,243
				3,754,823
Miscellaneous—Manufacturing 1.3%
Amsted Industries, Inc. 5.00%, due 3/15/22 (b)		10,610,000		10,716,100
Bombardier, Inc. 7.75%, due 3/15/20 (b)		2,445,000		2,133,263
Gates Global LLC / Gates Global Co. 6.00%, due 7/15/22 (b)		9,585,000		7,691,962
Textron Financial Corp. 6.00%, due 2/15/67 (a)(b)		11,250,000		8,325,000
				28,866,325
Oil & Gas 5.7%
Anadarko Petroleum Corp. (zero coupon), due 10/10/36		19,735,000		7,652,049
Berry Petroleum Co., LLC 6.75%, due 11/1/20 (d)		3,523,000		1,373,970
California Resources Corp. 5.00%, due 1/15/20		3,435,000		2,498,962
CHC Helicopter S.A. 9.25%, due 10/15/20		9,714,600		5,537,322
Chesapeake Energy Corp. 4.875%, due 4/15/22		1,411,000		874,820
5.375%, due 6/15/21		1,500,000		971,250
6.625%, due 8/15/20		2,595,000		1,758,113
7.25%, due 12/15/18		2,000,000		1,610,000
¨CITGO Petroleum Corp. 6.25%, due 8/15/22 (b)		10,000,000		9,800,000
Concho Resources, Inc. 5.50%, due 4/1/23		1,014,000		1,019,070
6.50%, due 1/15/22		1,550,000		1,606,188
7.00%, due 1/15/21		316,000		326,270

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Oil & Gas (continued)
Denbury Resources, Inc. 4.625%, due 7/15/23	$	3,635,000	$	2,426,362
6.375%, due 8/15/21		6,630,000		4,839,900
Eni S.p.A. 4.15%, due 10/1/20 (b)		2,000,000		2,102,568
EP Energy LLC / Everest Acquisition Finance, Inc. 9.375%, due 5/1/20		1,300,000		1,131,000
Hilcorp Energy I, L.P. / Hilcorp Finance Co. 5.00%, due 12/1/24 (b)		10,000,000		9,050,000
7.625%, due 4/15/21 (b)		1,823,000		1,854,903
LINN Energy LLC / LINN Energy Finance Corp. 6.50%, due 5/15/19		1,910,000		496,600
6.50%, due 9/15/21		7,250,000		1,595,000
8.625%, due 4/15/20		730,000		189,800
Murphy Oil USA, Inc. 6.00%, due 8/15/23		10,818,000		11,412,990
Precision Drilling Corp. 6.50%, due 12/15/21		1,127,000		980,490
6.625%, due 11/15/20		2,417,000		2,154,151
QEP Resources, Inc. 5.375%, due 10/1/22		3,350,000		3,015,000
Sanchez Energy Corp. 6.125%, due 1/15/23		9,620,000		6,974,500
SM Energy Co. 5.00%, due 1/15/24		1,970,000		1,768,075
6.125%, due 11/15/22		5,385,000		5,223,450
6.50%, due 1/1/23		4,665,000		4,596,872
Sunoco, L.P. / Sunoco Finance Corp. 5.50%, due 8/1/20 (b)		5,635,000		5,775,875
6.375%, due 4/1/23 (b)		6,850,000		6,901,375
Tesoro Corp. 5.125%, due 4/1/24		11,050,000		11,160,500
Whiting Petroleum Corp. 5.00%, due 3/15/19		2,350,000		2,232,500
5.75%, due 3/15/21		6,000,000		5,572,500
				126,482,425
Oil & Gas Services 1.1%
Basic Energy Services, Inc. 7.75%, due 2/15/19		8,717,000		3,508,592
7.75%, due 10/15/22 (d)		3,770,000		1,394,900
Bristow Group, Inc. 6.25%, due 10/15/22		5,390,000		4,689,300
CGG S.A. 6.50%, due 6/1/21		6,150,000		3,536,250
PHI, Inc. 5.25%, due 3/15/19		11,885,000		10,518,225
				23,647,267

	Principal Amount		Value
Packaging & Containers 2.4%
Ardagh Packaging Finance PLC 9.125%, due 10/15/20 (b)	$	1,000,000	$	1,048,760
Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc. 6.75%, due 1/31/21 (b)		6,775,000		6,944,375
7.00%, due 11/15/20 (b)		652,941		654,574
Crown European Holdings S.A. 4.00%, due 7/15/22 (b)		EUR 7,700,000		8,837,752
Kloeckner Pentaplast of America, Inc. 7.125%, due 11/1/20 (b)		3,175,000		3,622,317
MeadWestvaco Corp. 7.375%, due 9/1/19	$	1,800,000		2,072,826
Novelis, Inc. 8.75%, due 12/15/20		4,653,000		4,664,632
Owens-Brockway Glass Container, Inc. 5.00%, due 1/15/22 (b)		5,555,000		5,662,656
Reynolds Group Issuer, Inc. 5.75%, due 10/15/20		925,000		962,000
7.875%, due 8/15/19		1,025,000		1,062,156
9.875%, due 8/15/19		5,714,000		6,013,985
Sealed Air Corp. 4.875%, due 12/1/22 (b)		7,070,000		7,264,425
5.50%, due 9/15/25 (b)		3,315,000		3,497,325
				52,307,783
Pharmaceuticals 0.7%
Endo Ltd. / Endo Finance LLC / Endo Finco, Inc. 6.00%, due 7/15/23 (b)		5,560,000		5,560,000
6.00%, due 2/1/25 (b)		2,375,000		2,357,187
Valeant Pharmaceuticals International, Inc. 5.375%, due 3/15/20 (b)		4,600,000		4,002,000
6.375%, due 10/15/20 (b)		4,800,000		4,296,000
				16,215,187
Pipelines 4.2%
Columbia Pipeline Group, Inc. 3.30%, due 6/1/20 (b)		7,360,000		7,341,526
¨Energy Transfer Equity, L.P. 5.875%, due 1/15/24		1,960,000		1,898,799
Energy Transfer Partners, L.P. 5.20%, due 2/1/22		1,500,000		1,492,440
7.60%, due 2/1/24		662,000		744,013
EnLink Midstream Partners, L.P. 4.40%, due 4/1/24		10,000,000		9,413,980
Holly Energy Partners, L.P. / Holly Energy Finance Corp. 6.50%, due 3/1/20		3,875,000		3,855,625
Kinder Morgan, Inc. 5.625%, due 11/15/23 (b)		2,449,000		2,380,041
7.75%, due 1/15/32 (d)		11,700,000		11,841,839

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

	Principal Amount		Value
Corporate Bonds (continued)
Pipelines (continued)
Panhandle Eastern Pipe Line Co., L.P. 8.125%, due 6/1/19	$	2,037,000	$	2,351,655
Plains All American Pipeline, L.P. / PAA Finance Corp. 4.70%, due 6/15/44		10,475,000		9,021,740
Regency Energy Partners, L.P. / Regency Energy Finance Corp. 5.00%, due 10/1/22		1,550,000		1,506,361
5.50%, due 4/15/23		3,525,000		3,418,545
5.875%, due 3/1/22		50,000		51,348
6.50%, due 7/15/21		2,825,000		2,923,875
Spectra Energy Partners, L.P. 4.75%, due 3/15/24		1,269,000		1,305,264
Targa Resources Partners, L.P. / Targa Resources Partners Finance Corp. 4.125%, due 11/15/19		2,500,000		2,325,000
4.25%, due 11/15/23		5,160,000		4,515,000
5.25%, due 5/1/23		3,725,000		3,464,250
6.375%, due 8/1/22		875,000		848,750
6.625%, due 10/1/20 (b)		1,000		993
Tesoro Logistics, L.P. / Tesoro Logistics Finance Corp. 5.50%, due 10/15/19 (b)		2,915,000		3,017,025
5.875%, due 10/1/20		3,810,000		3,962,400
6.125%, due 10/15/21		3,500,000		3,640,000
Williams Cos., Inc. (The) 3.70%, due 1/15/23		2,000,000		1,632,480
4.55%, due 6/24/24		8,500,000		7,113,982
Williams Partners, L.P. / ACMP Finance Corp. 4.875%, due 5/15/23		3,560,000		3,213,253
6.125%, due 7/15/22		29,000		29,685
				93,309,869
Real Estate Investment Trusts 0.9%
Crown Castle International Corp. 5.25%, due 1/15/23		2,625,000		2,825,156
GEO Group, Inc. (The) 6.625%, due 2/15/21		9,023,000		9,338,805
Host Hotels & Resorts, L.P. 3.75%, due 10/15/23		472,000		456,189
5.25%, due 3/15/22		75,000		80,536
Iron Mountain, Inc. 5.75%, due 8/15/24		4,125,000		4,145,625
6.00%, due 10/1/20 (b)		744,000		788,640
6.00%, due 8/15/23		1,475,000		1,546,906
Ventas Realty, L.P. / Ventas Capital Corp. 2.70%, due 4/1/20		1,421,000		1,409,264
				20,591,121

	Principal Amount		Value
Retail 2.1%
AmeriGas Finance LLC / AmeriGas Finance Corp. 7.00%, due 5/20/22 (d)	$	5,200,000	$	5,486,000
Brinker International, Inc. 2.60%, due 5/15/18 (d)		1,875,000		1,877,582
CVS Pass-Through Trust 5.789%, due 1/10/26 (b)(e)		67,136		74,038
Dollar Tree, Inc. 5.75%, due 3/1/23 (b)		11,670,000		12,297,262
Macy’s Retail Holdings, Inc. 3.875%, due 1/15/22		1,925,000		1,959,194
QVC, Inc. 4.85%, due 4/1/24		6,500,000		6,354,582
Signet UK Finance PLC 4.70%, due 6/15/24		10,160,000		10,190,958
Suburban Propane Partners, L.P. / Suburban Energy Finance Corp. 5.50%, due 6/1/24		8,550,000		8,293,500
				46,533,116
Semiconductors 1.7%
Freescale Semiconductor, Inc. 5.00%, due 5/15/21 (b)		7,050,000		7,279,125
6.00%, due 1/15/22 (b)		6,159,000		6,559,335
NXP B.V. / NXP Funding LLC 4.625%, due 6/15/22 (b)		13,500,000		13,770,000
Sensata Technologies B.V. 5.00%, due 10/1/25 (b)		9,700,000		9,469,625
				37,078,085
Software 0.3%
First Data Corp. 5.375%, due 8/15/23 (b)		1,785,000		1,816,238
6.75%, due 11/1/20 (b)		2,275,000		2,397,281
7.00%, due 12/1/23 (b)		755,000		768,213
10.625%, due 6/15/21		1,137,000		1,269,176
				6,250,908
Telecommunications 4.1%
Bharti Airtel International Netherlands B.V. Series Reg S 5.125%, due 3/11/23		6,500,000		6,895,252
CenturyLink, Inc. 5.80%, due 3/15/22		8,000,000		7,780,000
CommScope Holding Co., Inc. 6.625%, due 6/1/20 (b)(f)		4,350,000		4,524,000
CommScope, Inc. 4.375%, due 6/15/20 (b)		3,700,000		3,774,000
5.00%, due 6/15/21 (b)		4,295,000		4,321,844
Hughes Satellite Systems Corp. 6.50%, due 6/15/19		2,250,000		2,476,688
7.625%, due 6/15/21		3,350,000		3,651,500

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Telecommunications (continued)
Inmarsat Finance PLC 4.875%, due 5/15/22 (b)	$	10,190,000	$	10,113,575
Intelsat Luxembourg S.A. 7.75%, due 6/1/21		5,885,000		3,472,150
8.125%, due 6/1/23		1,573,000		932,003
Sprint Capital Corp. 8.75%, due 3/15/32		2,060,000		1,854,000
Sprint Communications, Inc. 7.00%, due 8/15/20		1,800,000		1,669,500
Sprint Corp. 7.25%, due 9/15/21		4,000,000		3,675,000
7.875%, due 9/15/23		1,650,000		1,526,250
T-Mobile USA, Inc. 6.00%, due 3/1/23		3,000,000		2,990,625
6.125%, due 1/15/22		4,525,000		4,604,187
6.375%, due 3/1/25		3,500,000		3,508,750
6.542%, due 4/28/20		2,000,000		2,050,000
6.625%, due 11/15/20		1,000,000		1,030,000
Telecom Italia Capital S.A. 7.721%, due 6/4/38		1,085,000		1,155,525
Telefonica Emisiones SAU 4.57%, due 4/27/23		2,550,000		2,681,205
5.462%, due 2/16/21		396,000		441,928
Verizon Communications, Inc. 5.15%, due 9/15/23		3,573,000		3,982,487
ViaSat, Inc. 6.875%, due 6/15/20		7,340,000		7,688,650
Virgin Media Secured Finance PLC 5.50%, due 1/15/25 (b)		5,000,000		5,062,500
				91,861,619
Transportation 0.9%
Hapag-Lloyd A.G. 9.75%, due 10/15/17 (b)		2,000,000		2,050,000
Hornbeck Offshore Services, Inc. 5.00%, due 3/1/21		4,255,000		3,255,075
5.875%, due 4/1/20		3,748,000		3,017,140
XPO Logistics, Inc. 6.50%, due 6/15/22 (b)		12,475,000		11,133,937
				19,456,152
Total Corporate Bonds (Cost $1,726,433,229)				1,639,274,402
Foreign Bonds 0.4%
Belgium 0.1%
Belfius Financing Co. 1.289%, due 2/9/17 (a)		GBP 2,000,000		3,044,658

	Principal Amount		Value
Ireland 0.2%
UT2 Funding PLC 5.321%, due 6/30/16		EUR 3,945,000	$	4,385,389
United Kingdom 0.1%
Barclays Bank PLC Series Reg S 10.00%, due 5/21/21		GBP 449,000		887,890
Rexam PLC 6.75%, due 6/29/67 (a)		EUR 978,000		1,075,458
				1,963,348
Total Foreign Bonds (Cost $10,520,320)				9,393,395
Loan Assignments 17.6% (g)
Advertising 1.2%
CBS Outdoor Americas Capital LLC Term Loan B 3.00%, due 1/31/21	$	8,953,125		8,900,901
¨USAGM HoldCo LLC
2015 Delayed Draw Term Loan 4.75%, due 7/28/22		576,347		561,938
2015 Term Loan 4.75%, due 7/28/22		8,173,653		7,969,312
2015 2nd Lien Delayed Draw Term Loan 9.50%, due 7/28/23		535,714		518,750
2015 2nd Lien Term Loan 9.50%, due 7/28/23		8,214,286		7,954,164
				25,905,065
Aerospace & Defense 0.2%
TransDigm, Inc. Term Loan C 3.75%, due 2/28/20		1,747,168		1,724,237
Term Loan D 3.75%, due 6/4/21		1,975,000		1,946,785
				3,671,022
Auto Manufacturers 0.3%
Navistar International Corporation Term Loan B 6.50%, due 8/7/20		7,500,000		7,250,003
Auto Parts & Equipment 1.1%
Allison Transmission, Inc. New Term Loan B3 3.50%, due 8/23/19		7,358,925		7,360,765
MPG Holdco I, Inc. USD Term Loan B 3.75%, due 10/20/21		1,063,594		1,056,567

20 MainStay Unconstrained Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Loan Assignments (continued)
Auto Parts & Equipment (continued)
TI Group Automotive Systems, LLC 2015 Term Loan 4.50%, due 6/30/22	$	11,075,000	$	10,978,094
Visteon Corp. Delayed Draw Term Loan B 3.50%, due 4/9/21		4,068,677		4,046,636
				23,442,062
Building Materials 0.7%
Quikrete Holdings, Inc. 1st Lien Term Loan 4.00%, due 9/28/20		13,486,979		13,442,027
2nd Lien Term Loan 7.00%, due 3/26/21		1,193,684		1,193,684
				14,635,711
Chemicals 1.1%
Axalta Coating Systems U.S. Holdings, Inc. USD Term Loan 3.75%, due 2/1/20		4,497,694		4,481,633
ECO Services Operations LLC Initial Term Loan 4.75%, due 12/4/21		2,630,125		2,600,536
PQ Corp. 2014 Term Loan 4.00%, due 8/7/17		11,306,851		11,267,990
WR Grace & Co. Delayed Draw Term Loan 2.75%, due 2/3/21		1,342,745		1,317,568
USD Exit Term Loan 2.75%, due 2/3/21		3,733,714		3,663,707
				23,331,434
Commercial Services 1.0%
Allied Security Holdings LLC New 2nd Lien Term Loan 8.00%, due 8/13/21		5,808,219		5,532,329
KAR Auction Services, Inc. Term Loan B2 3.50%, due 3/11/21		8,825,744		8,814,712
Neff Rental LLC 2nd Lien Term Loan 7.25%, due 6/9/21		8,872,957		7,985,661
				22,332,702
Containers, Packaging & Glass 0.3%
Milacron LLC Term Loan B 4.50%, due 9/28/20		6,602,740		6,610,993

	Principal Amount		Value
Electric 0.1%
Calpine Corp. Term Loan B5 3.50%, due 5/27/22	$	1,995,000	$	1,970,063
Entertainment 0.9%
Mohegan Tribal Gaming Authority New Term Loan B 5.50%, due 6/15/18		2,947,500		2,915,570
Scientific Games International, Inc. 2014 Term Loan B1 6.00%, due 10/18/20		9,088,125		8,875,126
SeaWorld Parks & Entertainment, Inc. Term Loan B2 3.00%, due 5/14/20		9,473,698		8,865,799
				20,656,495
Environmental Controls 0.0%‡
Filtration Group Corp. 2nd Lien Term Loan 8.25%, due 11/21/21		505,319		502,582
Food Services 0.2%
Aramark Services, Inc. USD Term Loan F 3.25%, due 2/24/21		4,932,406		4,914,935
Health Care—Products 1.0%
Kinetic Concepts, Inc. USD Term Loan E1 4.50%, due 5/4/18		4,937,186		4,934,717
Ortho-Clinical Diagnostics, Inc. Term Loan B 4.75%, due 6/30/21		15,469,187		15,233,283
Sterigenics-Nordion Holdings LLC 2015 Term Loan B 4.25%, due 5/15/22		1,000,000		990,000
				21,158,000
Health Care—Services 1.2%
Amsurg Corp. 1st Lien Term Loan B 3.50%, due 7/16/21		10,961,002		10,888,583
Community Health Systems, Inc. Term Loan F 3.575%, due 12/31/18		46,424		46,206
Term Loan G 3.75%, due 12/31/19		123,733		123,056
DaVita HealthCare Partners, Inc. Term Loan B 3.50%, due 6/24/21		2,468,750		2,466,988

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 October 31, 2015 (continued)

	Principal Amount		Value
Loan Assignments (continued)
Health Care—Services (continued)
MPH Acquisition Holdings LLC Term Loan 3.75%, due 3/31/21	$	6,847,461	$	6,749,029
U.S. Renal Care, Inc. 2013 Term Loan 4.25%, due 7/3/19		6,894,472		6,885,854
				27,159,716
Household Products & Wares 1.0%
KIK Custom Products, Inc. 2015 Term Loan B 6.00%, due 8/26/22		7,750,000		7,560,900
Prestige Brands, Inc. Term Loan B3 3.50%, due 9/3/21		13,556,413		13,547,940
				21,108,840
Iron & Steel 0.8%
¨Signode Industrial Group U.S., Inc. USD Term Loan B 3.75%, due 5/1/21		16,976,904		16,693,950
Leisure Time 0.4%
ClubCorp Club Operations, Inc. 2015 Term Loan 4.25%, due 7/24/20		9,925,000		9,912,594
Lodging 0.9%
Boyd Gaming Corp. Term Loan B 4.00%, due 8/14/20		1,014,931		1,014,455
¨Hilton Worldwide Finance LLC USD Term Loan B2 3.50%, due 10/26/20		15,940,282		15,964,638
MGM Resorts International Term Loan B 3.50%, due 12/20/19		2,687,236		2,680,517
				19,659,610
Machinery—Construction & Mining 0.1%
Terex Corp. 2014 USD Term Loan 3.50%, due 8/13/21		2,574,000		2,566,922
Machinery—Diversified 0.7%
Husky Injection Molding Systems, Ltd. 1st Lien Term Loan 4.25%, due 6/30/21		14,925,000		14,619,037

	Principal Amount		Value
Media 0.7%
Charter Communications Operating LLC Term Loan F 3.00%, due 1/4/21	$	8,879,285	$	8,782,564
iHeartCommunications, Inc. Term Loan D 6.938%, due 1/30/19		1,928,771		1,613,280
Virgin Media Investment Holdings, Ltd. USD Term Loan F 3.50%, due 6/30/23		4,161,125		4,127,965
				14,523,809
Mining 0.0%‡
Oxbow Carbon LLC 2nd Lien Term Loan 8.00%, due 1/17/20		1,000,000		897,500
Miscellaneous—Manufacturing 0.2%
Gates Global, Inc. Initial Dollar Term Loan 4.25%, due 7/5/21		5,747,078		5,392,673
Oil & Gas 0.6%
¨CITGO Petroleum Corp. New Term Loan B 4.50%, due 7/29/21		11,335,000		11,136,637
Fieldwood Energy LLC 2nd Lien Term Loan 8.375%, due 9/30/20		8,400,000		3,053,400
				14,190,037
Pharmaceuticals 0.1%
Valeant Pharmaceuticals International, Inc. Series E Term Loan B 3.75%, due 8/5/20		1,791,442		1,660,667
Pipelines 0.7%
¨Energy Transfer Equity, L.P. New Term Loan 3.25%, due 12/2/19		16,250,000		15,486,250
Printing & Publishing 0.1%
Pilot Travel Centers LLC 2015 Term Loan B 3.75%, due 10/3/21		2,800,000		2,810,500
Real Estate 0.8%
¨Realogy Corp.
New Term Loan B 3.75%, due 3/5/20		17,816,758		17,788,929

22 MainStay Unconstrained Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Loan Assignments (continued)
Real Estate (continued)
Realogy Corp. (continued)
Extended Letter of Credit 4.446%, due 10/10/16	$	45,875	$	45,416
				17,834,345
Retail 0.1%
Dollar Tree, Inc. Term Loan B1 3.50%, due 7/6/22		3,172,050		3,173,750
Software 0.2%
First Data Corp. 2018 New Dollar Term Loan 3.697%, due 3/24/18		5,500,000		5,459,894
Telecommunications 0.9%
Intelsat Jackson Holdings S.A. Term Loan B2 3.75%, due 6/30/19		2,500,000		2,419,532
Level 3 Financing, Inc. 2015 Term Loan B2 3.50%, due 5/31/22		9,000,000		8,984,529
SBA Senior Finance II LLC Term Loan B1 3.25%, due 3/24/21		8,924,387		8,847,691
				20,251,752
Total Loan Assignments (Cost $400,721,824)				389,782,913
Mortgage-Backed Securities 0.0%‡
Commercial Mortgage Loans (Collateralized Mortgage Obligations) 0.0%‡
Banc of America Commercial Mortgage Trust Series 2005-J, Class 1A1 2.704%, due 11/25/35 (h)		232,536		206,132
Bayview Commercial Asset Trust Series 2006-4A, Class A1 0.427%, due 12/25/36 (a)(b)		39,800		35,989
Wells Fargo Mortgage Backed Securities Trust Series 2006-AR10, Class 5A2 2.737%, due 7/25/36 (h)		164,876		159,723
				401,844

	Principal Amount		Value
Residential Mortgages (Collateralized Mortgage Obligations) 0.0%‡
Deutsche Alt-A Securities, Inc. Alternate Loan Trust Series 2005-5, Class 1A3 5.50%, due 11/25/35 (a)	$	97,883	$	93,838
WaMu Mortgage Pass-Through Certificates Series 2006-AR14, Class 1A1 2.025%, due 11/25/36 (h)		155,902		137,977
				231,815
Total Mortgage-Backed Securities (Cost $616,310)				633,659
U.S. Government 0.0%‡
United States Treasury Note 0.0%‡
2.125%, due 8/15/21		70,000		71,531
Total U.S. Government (Cost $71,322)				71,531
Total Long-Term Bonds (Cost $2,153,698,376)				2,053,336,315
	Shares
Common Stocks 0.1%
Auto Manufacturers 0.1%
General Motors Co.		15,078		526,373
Motors Liquidation Co. GUC Trust		11,598		187,888
				714,261
Media 0.0%‡
ION Media Networks, Inc. (e)(i)(j)(k)		22		9,560
Total Common Stocks (Cost $552,418)				723,821
Convertible Preferred Stock 0.0%‡
Iron & Steel 0.0%‡
ArcelorMittal 6.00%		48,000		433,920
Total Convertible Preferred Stock (Cost $1,200,000)				433,920

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 October 31, 2015 (continued)

	Number of Warrants			Value
Warrants 0.0%‡
Auto Manufacturers 0.0%‡
General Motors Co. Strike Price $10.00 Expires 7/10/19 (j)		20,476		$	349,730
Total Warrants (Cost $322,281)					349,730
	Principal Amount
Short-Term Investment 5.7%
Repurchase Agreement 5.7%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $125,007,933 (Collateralized by a United States Treasury Note with a rate of 1.50% and a maturity date of 11/30/19, with a Principal Amount of $125,935,000 and a Market Value of $127,509,188)	$	125,007,933			125,007,933
Total Short-Term Investment (Cost $125,007,933)					125,007,933
Total Investments, Before Investments Sold Short (Cost $2,280,781,008) (l)		98.4	%		2,179,851,719
Long-Term Bonds Sold Short (1.2)% Corporate Bonds Sold Short (1.2%)
Household Products & Wares (0.2%)
ACCO Brands Corp. 6.75%, due 4/30/20		(3,850,000	)		(4,100,250	)
Oil & Gas (1.0%)
Southwestern Energy Co. 4.95%, due 1/23/25		(24,915,000	)		(21,736,020	)
Total Investments Sold Short (Proceeds $26,973,665)		(1.2	)%		(25,836,270	)
Total Investments, Net of Investments Sold Short (Cost $2,253,807,343)		97.2			2,154,015,449
Other Assets, Less Liabilities		2.8			61,489,150
Net Assets		100.0	%	$	2,215,504,599

‡ Less than one-tenth of a percent.

(a) Floating rate—Rate shown was the rate in effect as of October 31, 2015.

(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) Step coupon—Rate shown was the rate in effect as of October 31, 2015.

(d) Security, or a portion thereof, was maintained in a segregated account at the Fund’s custodian as collateral for securities Sold Short (See Note 2(O)).

(e) Fair valued security—Represents fair value as measured in good faith under procedures approved by the Board of Trustees. As of October 31, 2015, the total market value of these securities was $83,598, which represented less than one-tenth of a percent of the Fund’s net assets.

(f) PIK (“Payment-in-Kind”)—issuer may pay interest or dividends with additional securities and/or in cash.

(g) Floating Rate Loan—generally pays interest at rates which are periodically re-determined at a margin above the London InterBank Offered Rate or other short-term rates. The rate shown is the weighted average interest rate of all contracts within the floating rate loan facility as of October 31, 2015.

(h) 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 October 31, 2015.

(i) Illiquid security—As of October 31, 2015, the total market value of this security deemed illiquid under procedures approved by the Board of Trustees was $9,560, which represented less than one-tenth of a percent of the Fund’s net assets.

(j) Non-income producing security.

(k) Restricted security.

(l) As of October 31, 2015, cost was $2,280,819,032 for federal income tax purposes and net unrealized depreciation was as follows:

Gross unrealized appreciation	$	24,307,246
Gross unrealized depreciation		(125,274,559	)
Net unrealized depreciation	$	(100,967,313	)

24 MainStay Unconstrained Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

As of October 31, 2015, the Fund held the following foreign currency forward contracts:

Foreign Currency Buy Contracts	Expiration Date		Counterparty	Contract Amount Purchased			Contract Amount Sold		Unrealized Appreciation (Depreciation)
Euro vs. U.S. Dollar		11/24/15	JPMorgan Chase Bank		EUR	517,000	$	577,779	$	(9,112	)
Foreign Currency Sales Contracts				Contract Amount Sold			Contract Amount Purchased
Euro vs. U.S. Dollar		11/24/15	JPMorgan Chase Bank		EUR	30,004,000		33,690,291		687,840
Pound Sterling vs. U.S. Dollar		11/24/15	JPMorgan Chase Bank		GBP	29,518,000		45,538,895		39,806
Net unrealized appreciation (depreciation) on foreign currency forward contracts									$	718,534

As of October 31, 2015, the Fund held the following futures contracts¹:

Type	Number of Contracts (Short)			Expiration Date		Notional Amount			Unrealized Appreciation (Depreciation)2
2-Year United States Treasury Note		(2,139	)		December 2015	$	(467,705,719	)	$	444,097
Euro-Bund		(441	)		December 2015		(76,238,327	)		(1,586,447	)
						$	(543,944,046	)	$	(1,142,350	)

1. As of October 31, 2015, cash in the amount of $2,674,470 was on deposit with brokers for futures transactions.

2. Represents the difference between the value of the contracts at the time they were opened and the value as of October 31, 2015.

As of October 31, 2015, the Fund held the following centrally cleared interest rate swap agreements¹:

Notional Amount	Currency		Expiration Date		Payments made by Fund			Payments Received by Fund		Upfront Premiums Received/ (Paid)			Value			Unrealized Appreciation/ (Depreciation)
$250,000,000		USD		10/8/2017		Fixed 0.730	%		3-Month USD-LIBOR	$	—		$	504,178		$	504,178
$250,000,000		USD		10/16/2017		Fixed 0.695	%		3-Month USD-LIBOR		—			701,815			701,815
$250,000,000		USD		3/24/2017		Fixed 0.842	%		3-Month USD-LIBOR		(2,177	)		(587,393	)		(585,216	)
$500,000,000		USD		4/7/2017		Fixed 0.790	%		3-Month USD-LIBOR		33,824			(750,015	)		(783,839	)
$350,000,000		USD		4/16/2017		Fixed 0.768	%		3-Month USD-LIBOR		—			(387,593	)		(387,594	)
$500,000,000		USD		4/17/2017		Fixed 0.766	%		3-Month USD-LIBOR		—			(541,295	)		(541,295	)
$500,000,000		USD		4/21/2017		Fixed 0.769	%		3-Month USD-LIBOR		—			(541,890	)		(541,890	)
$125,000,000		USD		4/29/2017		Fixed 0.786	%		3-Month USD-LIBOR		—			(158,614	)		(158,614	)
$350,000,000		USD		5/6/2017		Fixed 0.861	%		3-Month USD-LIBOR		—			(790,776	)		(790,776	)
$273,000,000		USD		7/8/2017		Fixed 0.877	%		3-Month USD-LIBOR		—			(534,100	)		(534,100	)
										$	31,647		$	(3,085,683	)	$	(3,117,331	)

As of October 31, 2015, the Fund held the following centrally cleared credit default swap contract¹:

Reference Entity	Termination Date		Buy/Sell Protection2		Notional Amount (000)3		(Pay)/ Receive Fixed Rate4			Upfront Premiums Received/ (Paid)			Value			Unrealized Appreciation/ (Depreciation)5
Markit iTraxx Europe Crossover Series 24		12/20/2020		Buy	€	19,000		(5.00	)%	$	(1,215,654	)	$	(1,935,024	)	$	(719,370	)

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 October 31, 2015 (continued)

As of October 31, 2015, the Fund held the following OTC credit default swap contract:

Reference Entity	Counterparty		Termination Date		Buy/Sell Protection2		Notional Amount (000)3		(Pay)/ Receive Fixed Rate4			Upfront Premiums Received/ (Paid)			Value		Unrealized Appreciation/ (Depreciation)5
Staples, Inc. 2.75%, 1/12/18		Credit Suisse First Boston		6/20/2019		Buy	$	7,000		(1.00	)%	$	(355,124	)	$	12,210	$	(342,914	)

1. As of October 31, 2015, cash in the amount of $12,986,752 was on deposit with a broker for centrally cleared swap agreements.

2. Buy—Fund pays premium and buys credit protection. If a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

Sell—Fund receives premium and sells credit protection. If a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

3. The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap contract.

4. The annual fixed rate represents the interest received by the Fund (as a seller of protection) or paid by the Fund (as a buyer of protection) annually on the notional amount of the credit default swap contract.

5. Represents the difference between the value of the credit default swap contracts at the time they were opened and the value at October 31, 2015.

The following abbreviations are used in the preceding pages:

EUR—Euro

GBP—British Pound Sterling

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets and liabilities.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Long-Term Bonds
Asset-Backed Securities	$	—	$	4,686,102	$	—	$	4,686,102
Convertible Bonds		—		9,494,313		—		9,494,313
Corporate Bonds		—		1,639,274,402		—		1,639,274,402
Foreign Bonds		—		9,393,395		—		9,393,395
Loan Assignments (b)		—		377,053,836		12,729,077		389,782,913
Mortgage-Backed Securities		—		633,659		—		633,659
U.S. Government		—		71,531		—		71,531
Total Long-Term Bonds		—		2,040,607,238		12,729,077		2,053,336,315
Common Stocks (c)		714,261		—		9,560		723,821
Convertible Preferred Stock		433,920		—		—		433,920
Warrant		349,730		—		—		349,730
Short-Term Investment
Repurchase Agreement		—		125,007,933		—		125,007,933
Total Investments in Securities		1,497,911		2,165,615,171		12,738,637		2,179,851,719
		��
Other Financial Instruments
Foreign Currency Forward Contracts (d)		—		727,646		—		727,646
Futures Contracts Short (d)		444,097		—		—		444,097
Interest Rate Swap Contracts (d)		—		1,205,993		—		1,205,993
Total Other Financial Instruments		444,097		1,933,639		—		2,377,736
Total Investments in Securities and Other Financial Instruments	$	1,942,008	$	2,167,548,810	$	12,738,637	$	2,182,229,455

26 MainStay Unconstrained Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Liability Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Investments in Securities Sold Short (a)
Long-Term Bonds Sold Short
Corporate Bonds Sold Short	$	—		$	(25,836,270	)	$	—	$	(25,836,270	)
Total Investments in Securities Sold Short		—			(25,836,270	)		—		(25,836,270	)
Other Financial Instruments
Credit Default Swap Contracts (d)		—			(1,062,284	)		—		(1,062,284	)
Foreign Currency Forward Contracts (d)		—			(9,112	)		—		(9,112	)
Futures Contracts Short (d)		(1,586,447	)		—			—		(1,586,447	)
Interest Rate Swap Contracts (d)		—			(4,323,324	)		—		(4,323,324	)
Total Other Financial Instruments		(1,586,447	)		(5,394,720	)		—		(6,981,167	)
Total Investments in Securities Sold Short and Other Financial Instruments	$	(1,586,447	)	$	(31,230,990	)	$	—	$	(32,817,437	)

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

(b) The Level 3 securities valued at $7,985,661, $990,000, $897,500, $2,810,500 and $45,416 are held in Commercial Services, Health Care—Products, Mining, Printing & Publishing and Real Estate, respectively, within Loan Assignments whose values were obtained from an independent pricing service which utilized significant unobservable inputs to measure each such value as referenced in the Portfolio of Investments.

(c) The Level 3 security valued at $9,560 is held in Media within the Common Stocks section of the Portfolio of Investments.

(d) The value listed for these securities reflects unrealized appreciation (depreciation) as shown on the Portfolio of Investments.

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, securities with a market value of $19,541,790 transferred from Level 2 to Level 3. The transfer occurred as a result of utilizing significant unobservable inputs. As of October 31, 2014, the fair value obtained for these Loan Assignments, from an independent pricing service, utilized significant observable inputs. (See Note 2)

During the year ended October 31, 2015, a corporate bond with a total value of $80,961 was transferred from Level 3 to Level 2. The transfer occurred as a result of the corporate bond using a observable inputs for valuation measurement at October 31, 2015.

As of October 31, 2015, securities with a market value of $15,817,187 transferred from Level 3 to Level 2. The transfer occurred as a result of utilizing significant observable inputs. As of October 31, 2014, the fair value obtained for these Loan Assignments, from an independent pricing service, utilized significant unobservable inputs. (See Note 2)

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 October 31, 2015 (continued)

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

Investments in Securities	Balance as of October 31, 2014		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases		Sales (a)			Transfers in to Level 3		Transfers out of Level 3			Balance as of October 31, 2015		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at October 31, 2015 (b)
Long-Term Bonds
Corporate Bonds
Entertainment	$	8,923	$	208	$	120		$	3,497		$	—	$	(12,748	)	$	—	$	—		$	—	$	—
Retail		80,961		—		—			—			—		—			—		(80,961	)		—		—
Loan Assignments
Auto Parts & Equipment		26,929,508		1,691		15,597			135,329			—		(15,261,750	)		—		(11,820,375	)		—		—
Building Materials		1,356,750		7,148		(308,668	)		293,161			5,006,250		(17,495,554	)		12,497,663		(1,356,750	)		—		—
Chemicals		2,640,062		—		—			—			—		—			—		(2,640,062	)		—		—
Commercial Services		—		7,987		29,038			(857,407	)		2,962,500		(1,200,584	)		7,044,127		—			7,985,661		(857,407	)
Health Care—Products		—		162		—			(7,662	)	��	997,500		—			—		—			990,000		(7,662	)
Mining		975,000		1,539		—			(79,039	)		—		—			—		—			897,500		(79,039	)
Printing & Publishing		—		11		569			22,355			2,921,924		(134,359	)		—		—			2,810,500		22,355
Real Estate		45,355		790		11			(275	)		—		(465	)		—		—			45,416		(274	)
Common Stocks
Media		8,322		—		—			1,238			—		—			—		—			9,560		1,238
Total	$	32,044,881	$	19,536	$	(263,333	)	$	(488,803	)	$	11,888,174	$	(34,105,460	)	$	19,541,790	$	(15,898,148	)	$	12,738,637	$	(920,789	)

(a) Sales include principal reductions.

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

28 MainStay Unconstrained Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $2,280,781,008)	$	2,179,851,719
Cash denominated in foreign currencies (identified cost $19,238,654)		19,282,445
Cash collateral on deposit at broker		15,661,222
Receivables:
Dividends and interest		26,517,057
Investment securities sold		9,502,527
Fund shares sold		3,454,476
Variation margin on futures contracts		33,278
Premiums paid for OTC swap contract		355,124
Other assets		66,162
Unrealized appreciation on foreign currency forward contracts		727,646
Variation margin on centrally cleared swaps		206,459
Total assets		2,255,658,115
Liabilities
Investments sold short (proceeds $26,973,665)		25,836,270
Payables:
Fund shares redeemed		9,605,674
Manager (See Note 3)		1,045,064
Investment securities purchased		755,338
Transfer agent (See Note 3)		571,276
NYLIFE Distributors (See Note 3)		422,734
Interest on investments sold short		336,452
Broker fees and charges on short sales		114,994
Shareholder communication		77,296
Professional fees		43,667
Custodian		7,997
Trustees		5,763
Accrued expenses		15,177
Interest expense and fees payable		3,007
Dividend payable		960,781
Unrealized depreciation on OTC swap contract		342,914
Unrealized depreciation on foreign currency forward contracts		9,112
Total liabilities		40,153,516
Net assets	$	2,215,504,599
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	2,542,251
Additional paid-in capital		2,378,961,257
		2,381,503,508
Undistributed net investment income		2,622,833
Accumulated net realized gain (loss) on investments, unfunded commitments, investments sold short, futures transactions, swap transactions and foreign currency transactions		(64,073,645	)
Net unrealized appreciation (depreciation) on investments, swap contracts and futures contracts		(106,251,254	)
Net unrealized appreciation (depreciation) on investments sold short		1,137,395
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies and foreign currency forward contracts		565,762
Net assets	$	2,215,504,599

Class A
Net assets applicable to outstanding shares	$	584,184,182
Shares of beneficial interest outstanding		67,025,426
Net asset value per share outstanding	$	8.72
Maximum sales charge (4.50% of offering price)		0.41
Maximum offering price per share outstanding	$	9.13
Investor Class
Net assets applicable to outstanding shares	$	32,497,607
Shares of beneficial interest outstanding		3,701,101
Net asset value per share outstanding	$	8.78
Maximum sales charge (4.50% of offering price)		0.41
Maximum offering price per share outstanding	$	9.19
Class B
Net assets applicable to outstanding shares	$	19,833,352
Shares of beneficial interest outstanding		2,286,072
Net asset value and offering price per share outstanding	$	8.68
Class C
Net assets applicable to outstanding shares	$	315,182,601
Shares of beneficial interest outstanding		36,355,476
Net asset value and offering price per share outstanding	$	8.67
Class I
Net assets applicable to outstanding shares	$	1,263,694,936
Shares of beneficial interest outstanding		144,844,192
Net asset value and offering price per share outstanding	$	8.72
Class R2
Net assets applicable to outstanding shares	$	111,921
Shares of beneficial interest outstanding		12,836
Net asset value and offering price per share outstanding	$	8.72

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Interest	$	123,729,484
Dividends		135,272
Total income		123,864,756
Expenses
Manager (See Note 3)		13,364,070
Distribution/Service—Class A (See Note 3)		1,655,233
Distribution/Service—Investor Class (See Note 3)		80,682
Distribution/Service—Class B (See Note 3)		215,134
Distribution/Service—Class C (See Note 3)		3,447,018
Distribution/Service—Class R2 (See Note 3)		594
Transfer agent (See Note 3)		3,512,714
Interest on investments sold short		803,895
Broker fees and charges on short sales		371,497
Shareholder communication		250,456
Registration		248,782
Professional fees		164,412
Custodian		82,418
Trustees		48,763
Interest expense		4,713
Shareholder service (See Note 3)		237
Miscellaneous		72,471
Total expenses		24,323,089
Net investment income (loss)		99,541,667
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Swap Contracts and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions		(45,655,375	)
Investments sold short		(262,866	)
Futures transactions		(14,121,035	)
Swap transactions		(25,602,918	)
Foreign currency transactions		6,878,899
Net realized gain (loss) on investments, investments sold short, futures transactions, swap transactions and foreign currency transactions		(78,763,295	)
Net change in unrealized appreciation (depreciation) on:
Investments and unfunded commitments		(97,562,713	)
Investments sold short		1,730,181
Futures contracts		1,899,262
Swap contracts		2,608,673
Translation of other assets and liabilities in foreign currencies and foreign currency forward contracts		(1,189,839	)
Net change in unrealized appreciation (depreciation) on investments, unfunded commitments, investments sold short, futures contracts, swap contracts and foreign currency transactions		(92,514,436	)
Net realized and unrealized gain (loss) on investments, unfunded commitments, investments sold short, futures transactions, swap transactions and foreign currency transactions		(171,277,731	)
Net increase (decrease) in net assets resulting from operations	$	(71,736,064	)

30 MainStay Unconstrained Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	99,541,667		$	64,713,405
Net realized gain (loss) on investments, investments sold short, futures transactions, swap transactions and foreign currency transactions		(78,763,295	)		638,332
Net change in unrealized appreciation (depreciation) on investments, unfunded commitments, investments sold short, futures contracts, swap contracts and foreign currency transactions		(92,514,436	)		(27,218,147	)
Net increase (decrease) in net assets resulting from operations		(71,736,064	)		38,133,590
Dividends to shareholders:
From net investment income:
Class A		(22,199,099	)		(18,981,960	)
Investor Class		(1,079,074	)		(1,034,293	)
Class B		(561,584	)		(579,315	)
Class C		(9,024,905	)		(6,463,600	)
Class I		(50,654,929	)		(34,625,108	)
Class R2		(7,479	)		(3,228	)
Total dividends to shareholders		(83,527,070	)		(61,687,504	)
Capital share transactions:
Net proceeds from sale of shares		986,207,670			2,280,510,464
Net asset value of shares issued to shareholders in reinvestment of dividends		70,622,476			51,848,369
Cost of shares redeemed		(1,243,315,257	)		(524,807,424	)
Increase (decrease) in net assets derived from capital share transactions		(186,485,111	)		1,807,551,409
Net increase (decrease) in net assets		(341,748,245	)		1,783,997,495
Net Assets
Beginning of year		2,557,252,844			773,255,349
End of year	$	2,215,504,599		$	2,557,252,844
Undistributed net investment income at end of year	$	2,622,833		$	1,655,631

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	9.27		$	9.28		$	9.22		$	8.73		$	9.06
Net investment income (loss) (a)		0.36			0.36			0.40			0.45			0.45
Net realized and unrealized gain (loss) on investments		(0.63	)		(0.05	)		0.06			0.49			(0.31	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			0.01			(0.01	)		0.01			(0.00	)‡
Total from investment operations		(0.25	)		0.32			0.45			0.95			0.14
Less dividends and distributions:
From net investment income		(0.30	)		(0.33	)		(0.39	)		(0.46	)		(0.47	)
Total dividends		(0.30	)		—			—			—			—
Net asset value at end of year	$	8.72		$	9.27		$	9.28		$	9.22		$	8.73
Total investment return (b)		(2.70	%)		3.48	%		4.96	%		11.26	%		1.54	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		4.01	%		3.81	%		4.25	%		5.08	%		5.04	%
Net expenses (excluding short sale expenses)		0.96	%		0.98	%		1.00	%		1.00	%		1.03	%
Expenses (including short sales expenses, before waiver/reimbursement)		1.01	%		1.04	%		1.12	%		1.33	%		1.22	%
Short sale expenses		0.05	%		0.06	%		0.12	%		0.33	%		0.19	%
Portfolio turnover rate		22	%		19	%		23	%		25	%		26	%
Net assets at end of year (in 000’s)	$	584,184		$	675,552		$	317,917		$	192,009		$	169,649

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	9.33		$	9.34		$	9.28		$	8.78		$	9.12
Net investment income (loss) (a)		0.36			0.36			0.39			0.44			0.43
Net realized and unrealized gain (loss) on investments		(0.63	)		(0.05	)		0.06			0.50			(0.32	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			0.01			(0.01	)		0.01			(0.00	)‡
Total from investment operations		(0.25	)		0.32			0.44			0.95			0.11
From net investment income		(0.30	)		(0.33	)		(0.38	)		(0.45	)		(0.45	)
Net asset value at end of year	$	8.78		$	9.33		$	9.34		$	9.28		$	8.78
Total investment return (b)		(2.70	%)		3.42	%		4.76	%		10.98	%		1.33	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.99	%		3.78	%		4.12	%		4.89	%		4.85	%
Net expenses (excluding short sale expenses)		0.98	%		1.00	%		1.15	%		1.19	%		1.24	%
Expenses (including short sales expenses, before waiver/reimbursement)		1.03	%		1.06	%		1.27	%		1.52	%		1.42	%
Short sale expenses		0.05	%		0.06	%		0.12	%		0.33	%		0.18	%
Portfolio turnover rate		22	%		19	%		23	%		25	%		26	%
Net assets at end of year (in 000’s)	$	32,498		$	31,690		$	28,341		$	24,551		$	20,415

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

32 MainStay Unconstrained Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	9.23		$	9.24		$	9.18		$	8.70		$	9.03
Net investment income (loss) (a)		0.29			0.28			0.31			0.37			0.36
Net realized and unrealized gain (loss) on investments		(0.62	)		(0.04	)		0.07			0.48			(0.31	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			0.01			(0.01	)		0.01			(0.00	)‡
Total from investment operations		(0.31	)		0.25			0.37			0.86			0.05
Less dividends and distributions:
From net investment income		(0.24	)		(0.26	)		(0.31	)		(0.38	)		(0.38	)
Net asset value at end of year	$	8.68		$	9.23		$	9.24		$	9.18		$	8.70
Total investment return (b)		(3.45	%)		2.71	%		4.05	%		10.15	%		0.59	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.24	%		3.03	%		3.38	%		4.14	%		4.10	%
Net expenses (excluding short sales expenses)		1.73	%		1.75	%		1.90	%		1.94	%		1.99	%
Expenses (including short sales expenses, before waiver/reimbursement)		1.78	%		1.81	%		2.02	%		2.27	%		2.16	%
Short sale expenses		0.05	%		0.06	%		0.12	%		0.33	%		0.17	%
Portfolio turnover rate		22	%		19	%		23	%		25	%		26	%
Net assets at end of year (in 000’s)	$	19,833		$	22,460		$	19,254		$	17,591		$	16,754

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	9.22		$	9.23		$	9.18		$	8.69		$	9.03
Net investment income (loss) (a)		0.29			0.28			0.31			0.37			0.36
Net realized and unrealized gain (loss) on investments		(0.62	)		(0.04	)		0.06			0.49			(0.32	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			0.01			(0.01	)		0.01			(0.00	)‡
Total from investment operations		(0.31	)		0.25			0.36			0.87			0.04
Less dividends:
From net investment income		(0.24	)		(0.26	)		(0.31	)		(0.38	)		(0.38	)
Net asset value at end of year	$	8.67		$	9.22		$	9.23		$	9.18		$	8.69
Total investment return (b)		(3.46	%)		2.71	%		4.05	%		10.16	%		0.48	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.24	%		3.05	%		3.34	%		4.14	%		4.09	%
Net expenses (excluding short sale expenses)		1.73	%		1.75	%		1.90	%		1.94	%		1.99	%
Expenses (including short sales expenses, before waiver/reimbursement)		1.78	%		1.81	%		2.02	%		2.27	%		2.19	%
Short sale expenses		0.05	%		0.06	%		0.12	%		0.33	%		0.20	%
Portfolio turnover rate		22	%		19	%		23	%		25	%		26	%
Net assets at end of year (in 000’s)	$	315,183		$	345,900		$	113,183		$	59,159		$	50,280

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	9.28		$	9.29		$	9.23		$	8.73		$	9.07
Net investment income (loss) (a)		0.38			0.38			0.41			0.47			0.46
Net realized and unrealized gain (loss) on investments		(0.63	)		(0.05	)		0.07			0.51			(0.31	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			0.01			(0.01	)		0.01			(0.00	)‡
Total from investment operations		(0.23	)		0.34			0.47			0.99			0.15
Less dividends:
From net investment income		(0.33	)		(0.35	)		(0.41	)		(0.49	)		(0.49	)
Net asset value at end of year	$	8.72		$	9.28		$	9.29		$	9.23		$	8.73
Total investment return (b)		(2.56	%)		3.73	%		5.32	%		11.41	%		1.79	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		4.25	%		4.08	%		4.45	%		5.32	%		5.20	%
Net expenses (excluding short sale expenses)		0.71	%		0.73	%		0.75	%		0.76	%		0.78	%
Expenses (including short sales expenses, before waiver/reimbursement)		0.76	%		0.79	%		0.87	%		1.08	%		1.02	%
Short sale expenses		0.05	%		0.06	%		0.12	%		0.32	%		0.24	%
Portfolio turnover rate		22	%		19	%		23	%		25	%		26	%
Net assets at end of year (in 000’s)	$	1,263,695		$	1,481,314		$	294,560		$	111,435		$	163,356

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(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.

Class R2	Year ended October 31, 2015			February 28, 2014** through October 31, 2014
Net asset value at beginning of period	$	9.27		$	9.39
Net investment income (loss) (a)		0.35			0.23
Net realized and unrealized gain (loss) on investments		(0.63	)		(0.16	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			0.02
Total from investment operations		(0.26	)		0.09
Less dividends:
From net investment income		(0.29	)		(0.21	)
Net asset value at end of period	$	8.72		$	9.27
Total investment return (b)		(2.81	%)		0.99	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.87	%		3.78	%††
Net expenses		1.06	%		1.08	%††
Expenses (including short sales expenses, before waiver/reimbursement)		1.11	%		1.14	%††
Short sale expenses		0.05	%		0.06	%††
Portfolio turnover rate		22	%		19	%
Net assets at end of period (in 000’s)	$	112		$	336

** 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 R2 shares are not subject to sales charges.

(c) Total investment return is not annualized.

34 MainStay Unconstrained Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate only to the MainStay Unconstrained 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 Fund currently offers six classes of shares. Class A and Class B shares commenced operations on February 28, 1997. Class C shares commenced operations on September 1, 1998. Class I shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Class R2 shares commenced operations on February 28, 2014. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 and Class R2 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The six classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A, Investor Class and Class R2 shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee. Class R2 shares are subject to a shareholder service fee. This is in addition to any fees paid under a distribution plan, where applicable.

The Fund’s investment objective is to seek total return by investing primarily in domestic and foreign debt securities.

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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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

35

Notes to Financial Statements (continued)

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 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time

when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, the Fund held securities with a value of $9,560 that were fair valued in such a manner.

Equity securities and Exchange-Traded Funds 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. Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Options contracts are valued at the last posted settlement price on the market where such options are primarily traded. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities (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 Manager, in consultation with the Subadvisor. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean prices are deemed by the Manager, 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 & 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. Other temporary cash investments which 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. These securities are generally categorized as Level 2 in the hierarchy.

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

Loan assignments, participations and commitments are valued at the average of bid quotations obtained from 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.

36 MainStay Unconstrained Bond Fund

As of October 31, 2015, the Fund held Level 3 securities with a value of $12,729,077 that were valued by utilizing significant unobservable inputs.

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.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued within seven days. Illiquidity of a security might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of the Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor measures the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued by methods deemed reasonable in good faith in such a manner as the Board deems appropriate to reflect their fair value. The liquidity of the Fund’s investments, as shown in the accompanying Portfolio of Investments, was measured as of October 31, 2015 and can change at any time in response to, among other relevant factors, market conditions or events or developments with respect to an individual issuer or instrument. As of October 31, 2015, securities deemed to be illiquid under procedures approved by the Board of Trustees are shown in the Portfolio of Investments.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C)  Foreign Taxes.  The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which they invest. A portion of the taxes on gains on investments or currency purchases/repatriation may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

(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 monthly and distributions from net realized capital and currency gains, if any, at least annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(E)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. 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 and includes realized gains and losses from repayments of principal on mortgage-backed securities. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

The Fund may place a debt obligation on non-accrual status and reduce related interest income by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation 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 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.

37

Notes to Financial Statements (continued)

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

(H)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(I)  Futures Contracts.  A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., foreign currency, interest rate, security, or securities index). The Fund is subject to market price risk and/or interest rate risk in the normal course of investing in these transactions. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized 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 may involve a small initial investment relative to the risk assumed, which could result in losses greater than if they had not been used. Futures 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 help manage the duration and yield curve of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAV and may result in a loss to the Fund.

(J)  Loan Assignments, Participations and Commitments.  The Fund may invest in loan assignments and loan 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. Loans are typically senior, secured and collateralized in nature. The Fund records an investment when the borrower withdraws money and records interest as earned. These loans pay interest at rates that are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the London InterBank Offered Rate.

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 enters into bankruptcy, the Fund may incur certain costs and delays in realizing payment, or may suffer a loss of principal and/or interest.

Unfunded commitments represent the remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities. As of October 31, 2015, the Fund did not hold any unfunded commitments.

(K)  Swap Contracts.  The Fund may enter into credit default, interest rate, index and currency exchange rate swap contracts (“swaps”) for the purpose of attempting to obtain a desired return at a lower cost to the Fund, rather than directly investing in an instrument yielding that desired return or to hedge against credit and interest rate risk. In a typical swap transaction, two parties agree to exchange the returns (or differentials in rates of returns) earned or realized on a particular investment or instrument. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount. 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,

38 MainStay Unconstrained Bond Fund

may be required to be held in segregated accounts with the custodian bank or broker in accordance with the terms of the swap. Swaps agreements are privately negotiated in the over the counter market (“OTC swaps”) and may be executed in a multilateral or other trade facilities platform, such as a registered commodities exchange (“centrally cleared swaps”).

Credit default swaps, in particular, are contracts whereby one party makes periodic payments to a counterparty in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Such periodic payments are accrued daily and recorded as a realized gain or loss. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers.

Certain standardized swaps, including certain credit default and interest rate swaps, are subject to mandatory clearing, and more types of standardized swaps are expected to be subject to mandatory clearing in the future. The counterparty risk for 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 Fund 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 Fund’s exposure to the credit risk of its original counterparty. The Fund 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 Fund 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 (“variation margin”) on the Statements of Assets and Liabilities.

The Fund 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 Fund 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 creditworthy party. Swaps are not actively traded on financial markets. Entering into swaps involves elements of credit, market, and 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.

(L)  Foreign Currency Forward Contracts.  The Fund may enter into foreign currency forward contracts, which are agreements to buy or sell foreign currencies on a specified future date at a specified rate. The Fund is subject to foreign currency exchange rate risk in the normal course of investing in these transactions. During the period the forward

contract is open, changes in the value of the contract are recognized as unrealized 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. Cash movement occurs on settlement date. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract. The Fund may purchase and sell foreign currency forward contracts for purposes of seeking to enhance portfolio returns and manage portfolio risk more efficiently. Foreign currency forward contracts may also be used to gain exposure to a particular currency or to hedge against the risk of loss due to changing currency exchange rates. Foreign currency forward contracts to purchase or sell a foreign currency may also be used in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected.

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

(M)  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 gains and losses on foreign currency forward contracts, net currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the Fund’s books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or

39

Notes to Financial Statements (continued)

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.

(N)  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. As of October 31, 2015, the Fund did not hold any rights.

(O)  Securities Sold Short.  The Fund engages in sales of securities it does not own (“short sales”) as part of its investment strategy. When the Fund enters into a short sale, it must segregate or maintain with a broker the cash proceeds from the security sold short or other securities as collateral for its obligation to deliver the security upon conclusion of the sale. 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. Short sales involve risk of loss in excess of the related amounts reflected in the Statement of Assets and Liabilities.

(P)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending

its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

(Q)  Restricted Securities.  Restricted securities, as disclosed in Note 5, are securities which have been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933, as amended. Disposal of these securities may involve time-consuming negotiations and expenses, and it may be difficult to obtain a prompt sale at an acceptable price.

(R)  Concentration of Risk.  The Fund’s principal investments include high-yield debt securities (sometimes called “junk bonds”), which are generally considered speculative because they present a greater risk of loss, including default, than higher quality 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.

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

(S)  Counterparty Credit Risk.  In order to better define its contractual rights and to secure rights that will help a Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs certain OTC derivatives and typically contains collateral posting terms and netting provisions. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels or if the Fund fails to meet the terms of its ISDA Master Agreements. The result would cause the Fund to accelerate payment of any net liability owed to the counterparty. For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.

40 MainStay Unconstrained Bond Fund

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

(U)  Quantitative Disclosure of Derivative Holdings.  The following tables show additional disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash flows. The Fund invested in futures contracts to help manage the duration and yield curve of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. The Fund invested in interest rate and credit default swap contracts in order to obtain a desired return at a lower cost to the Fund, rather than directly investing in an instrument yielding that desired return or to hedge against credit and interest rate risk. The Fund also invested in foreign currency forward contracts to gain exposure to a particular currency or to hedge against the risk of loss due to changing currency exchange rates. These derivatives are not accounted for as hedging instruments.

Fair value of derivative instruments as of October 31, 2015:

Asset Derivatives

	Statement of Assets and Liabilities Location	Credit Contracts Risk		Foreign Exchange Contracts Risk		Interest Rate Contracts Risk		Total
Futures Contracts	Net Assets-Net unrealized appreciation (depreciation) on investments, swap contracts and futures contracts (a)	$	—	$	—	$	444,097	$	444,097
Swap Contracts	Net Assets-Net unrealized appreciation (depreciation) on investments, swap contracts and futures contracts (b)		—		—		1,205,993		1,205,993
Forward Contracts	Unrealized appreciation on foreign currency forward contracts		—		727,646		—		727,646
Total Fair Value		$	—	$	727,646	$	1,650,090	$	2,377,736

Liability Derivatives

	Statement of Assets and Liabilities Location	Credit Contracts Risk			Foreign Exchange Contracts Risk			Interest Rate Contracts Risk			Total
Futures Contracts	Net Assets-Net unrealized appreciation (depreciation) on investments, swap contracts and futures contracts (a)	$	—		$	—		$	(1,586,447	)	$	(1,586,447	)
Swap Contracts	Net Assets-Net unrealized appreciation (depreciation) on investments, swap contracts and futures contracts (b)		(1,062,284	)		—			(4,323,324	)		(5,385,608	)
Forward Contracts	Unrealized depreciation on foreign currency forward contracts		—			(9,112	)		—			(9,112	)
Total Fair Value		$	(1,062,284	)	$	(9,112	)	$	(5,909,771	)	$	(6,981,167	)

(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.

(b) Includes cumulative appreciation (depreciation) of centrally cleared swap agreements as reported in the Portfolio of Investments. Only current day’s variation margin of centrally cleared swaps is reported within the Statement of Assets and Liabilities.

41

Notes to Financial Statements (continued)

The effect of derivative instruments on the Statement of Operations for the year ended October 31, 2015:

Realized Gain (Loss)

	Statement of Operations Location	Credit Contracts Risk			Foreign Exchange Contracts Risk		Interest Rate Contracts Risk			Total
Futures Contracts	Net realized gain (loss) on futures transactions	$	—		$	—	$	(14,121,035	)	$	(14,121,035	)
Swap Contracts	Net realized gain (loss) on swap transactions		(542,690	)		—		(25,060,228	)		(25,602,918	)
Forward Contracts	Net realized gain (loss) on foreign currency transactions		—			7,674,852		—			7,674,852
Total Realized Gain (Loss)		$	(542,690	)	$	7,674,852	$	(39,181,263	)	$	(32,049,101	)

Change in Unrealized Appreciation (Depreciation)

	Statement of Operations Location	Credit Contracts Risk			Foreign Exchange Contracts Risk			Interest Rate Contracts Risk		Total
Futures Contracts	Net change in unrealized appreciation (depreciation) on futures contracts	$	—		$	—		$	1,899,262	$	1,899,262
Swap Contracts	Net change in unrealized appreciation (depreciation) on swap contracts		(803,144	)		—			3,411,817		2,608,673
Forward Contracts	Net change in unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies and foreign currency forward contracts		—			(1,109,603	)		—		(1,109,603	)
Total Change in Unrealized Appreciation (Depreciation)		$	(803,144	)	$	(1,109,603	)	$	5,311,079	$	3,398,332

Average Notional Amount

	Credit Contracts Risk		Foreign Exchange Contracts Risk			Interest Rate Contracts Risk			Total
Futures Contracts Short	$	—	$	—		$	(1,096,942,087	)	$	(1,096,942,087	)
Swap Contracts	$	24,416,667	$	—		$	3,120,916,667		$	3,145,333,334
Forward Contracts Long	$	—	$	28,349,580		$	—		$	28,349,580
Forward Contracts Short	$	—	$	(95,728,572	)	$	—		$	(95,728,572	)

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 a portion of the compensation of the Chief Compliance Officer of 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 Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of the 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.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.60% up to $500 million; 0.55% from $500 million to $1 billion; 0.50% from $1 billion to $5 billion; and 0.475% in excess of $5 billion, plus a fee for fund accounting services previously provided by New York Life Investments under a separate fund accounting agreement furnished at an

42 MainStay Unconstrained Bond Fund

annual rate of the Fund’s average daily net assets as follows: 0.05% up to $20 million; 0.0333% from $20 million to $100 million; and 0.01% in excess of $100 million. During the year ended October 31, 2015, the effective management fee rate was 0.54%, inclusive of a fee for fund accounting services of 0.01% of the Fund’s average daily net assets.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $13,364,070.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly distribution 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 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 Plan 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 a distribution plan, where applicable.

(C)  Sales Charges.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $138,489 and $15,142 respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Class B and Class C shares of $22,102, $48,124 and $128,084, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	926,838
Investor Class		49,848
Class B		33,229
Class C		532,423
Class I		1,970,044
Class R2		332

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

(F)  Capital.  As of October 31, 2015, New York Life and its affiliates beneficially held shares of the Fund with values and percentages of net assets as follows:

Class A $ 12,753,193 2.2 % 

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)			Other Temporary Differences			Unrealized Appreciation (Depreciation)			Total Accumulated Gain (Loss)
$2,556,572	$	(64,494,677	)	$	(960,781	)	$	(103,100,023	)	$	(165,998,909	)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments, mark to market of futures and forward contracts, swap adjustments and deemed dividends. The other temporary differences are primarily due to dividends payable.

43

Notes to Financial Statements (continued)

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments		Additional Paid-In Capital
$(15,047,395)	$	15,047,395	$	—

The reclassifications for the Fund are primarily due foreign currency gain (loss), swap adjustments and defaulted bonds.

Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

As of October 31, 2015, for federal income tax purposes, capital loss carryforwards of $64,494,468 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss Available Through	Short-Term Capital Loss Amounts (000’s)		Long-Term Capital Loss Amounts (000’s)
2017	$	473	$	—
Unlimited		21,290		42,731
Total	$	21,763		42,731

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	83,527,070	$	61,687,504

Note 5–Restricted Securities

As of October 31, 2015, the Fund held the following restricted security:

Security	Date of Acquisition		Number of Shares		Cost		10/31/15 Value		Percent of Net Assets
ION Media Networks, Inc. Common Stock		3/11/14		22	$	34	$	9,560		0.0	‡

‡ Less than one-tenth of a percent.

Note 6–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 7–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain

affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

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

During the year ended October 31, 2015, purchases and sales of securities, other than short-term securities, were $513,506 and $669,511, respectively.

44 MainStay Unconstrained Bond Fund

Note 9–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		28,450,020		$	258,407,016
Shares issued to shareholders in reinvestment of dividends and distributions		2,174,176			19,530,531
Shares redeemed		(36,415,497	)		(326,787,137	)
Net increase (decrease) in shares outstanding before conversion		(5,791,301	)		(48,849,590	)
Shares converted into Class A (See Note 1)		193,550			1,750,177
Shares converted from Class A (See Note 1)		(273,131	)		(2,423,227	)
Net increase (decrease)		(5,870,882	)	$	(49,522,640	)
Year ended October 31, 2014:
Shares sold		64,877,213		$	608,301,886
Shares issued to shareholders in reinvestment of dividends and distributions		1,782,578			16,685,594
Shares redeemed		(28,139,793	)		(263,798,248	)
Net increase (decrease) in shares outstanding before conversion		38,519,998			361,189,232
Shares converted into Class A (See Note 1)		260,569			2,447,351
Shares converted from Class A (See Note 1)		(155,210	)		(1,453,320	)
Net increase (decrease)		38,625,357		$	362,183,263
Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		670,786		$	6,136,874
Shares issued to shareholders in reinvestment of dividends and distributions		115,763			1,046,718
Shares redeemed		(658,661	)		(5,981,986	)
Net increase (decrease) in shares outstanding before conversion		127,888			1,201,606
Shares converted into Investor Class (See Note 1)		351,284			3,153,845
Shares converted from Investor Class (See Note 1)		(173,263	)		(1,578,782	)
Net increase (decrease)		305,909		$	2,776,669
Year ended October 31, 2014:
Shares sold		786,971		$	7,421,132
Shares issued to shareholders in reinvestment of dividends and distributions		106,179			1,000,211
Shares redeemed		(530,130	)		(4,999,578	)
Net increase (decrease) in shares outstanding before conversion		363,020			3,421,765
Shares converted into Investor Class (See Note 1)		240,974			2,273,835
Shares converted from Investor Class (See Note 1)		(242,836	)		(2,297,081	)
Net increase (decrease)		361,158		$	3,398,519

Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		353,620		$	3,182,670
Shares issued to shareholders in reinvestment of dividends and distributions		53,569			479,142
Shares redeemed		(455,330	)		(4,088,289	)
Net increase (decrease) in shares outstanding before conversion		(48,141	)		(426,477	)
Shares converted from Class B (See Note 1)		(100,199	)		(902,013	)
Net increase (decrease)		(148,340	)	$	(1,328,490	)
Year ended October 31, 2014:
Shares sold		761,597		$	7,115,190
Shares issued to shareholders in reinvestment of dividends and distributions		54,949			511,845
Shares redeemed		(362,290	)		(3,376,635	)
Net increase (decrease) in shares outstanding before conversion		454,256			4,250,400
Shares converted from Class B (See Note 1)		(103,975	)		(970,785	)
Net increase (decrease)		350,281		$	3,279,615
Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		10,867,149		$	98,101,445
Shares issued to shareholders in reinvestment of dividends and distributions		789,891			7,057,406
Shares redeemed		(12,819,125	)		(114,653,445	)
Net increase (decrease)		(1,162,085	)	$	(9,494,594	)
Year ended October 31, 2014:
Shares sold		28,008,766		$	261,362,245
Shares issued to shareholders in reinvestment of dividends and distributions		533,786			4,971,089
Shares redeemed		(3,285,094	)		(30,592,136	)
Net increase (decrease)		25,257,458		$	235,741,198
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		68,304,110		$	620,273,431
Shares issued to shareholders in reinvestment of dividends and distributions		4,727,262			42,501,199
Shares redeemed		(87,873,504	)		(791,484,328	)
Net increase (decrease)		(14,842,132	)	$	(128,709,698	)
Year ended October 31, 2014:
Shares sold		148,667,391		$	1,395,958,703
Shares issued to shareholders in reinvestment of dividends and distributions		3,061,206			28,676,402
Shares redeemed		(23,763,683	)		(222,025,672	)
Net increase (decrease)		127,964,914		$	1,202,609,433

45

Notes to Financial Statements (continued)

Class R2	Shares			Amount
Year ended October 31, 2015:
Shares sold		11,624		$	106,234
Shares issued to shareholders in reinvestment of dividends and distributions		828			7,480
Shares redeemed		(35,876	)		(320,072	)
Net increase (decrease)		(23,424	)	$	(206,358	)
Period ended October 31, 2014 (a):
Shares sold		37,547		$	351,308
Shares issued to shareholders in reinvestment of dividends and distributions		346			3,228
Shares redeemed		(1,633	)		(15,155	)
Net increase (decrease)		36,260		$	339,381

(a) Class R2 shares were first offered on February 28, 2014.

Note 10–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase

Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 11–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

46 MainStay Unconstrained Bond Fund

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Unconstrained Bond Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Unconstrained Bond Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

47

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years.

For the fiscal year ended October 31, 2015, the Fund designated approximately $87,446 under the Internal Revenue Code as qualified dividend income eligible for reduced tax rates.

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or subsitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures

and Proxy Voting Record

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

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

Shareholder Reports and Quarterly

Portfolio Disclosure

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

48 MainStay Unconstrained Bond Fund

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

49

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

50 MainStay Unconstrained Bond Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

51

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

52 MainStay Unconstrained Bond Fund

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

53

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MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673514 MS291-15 MSUB11-12/15 (NYLIM) NL217

MainStay Government Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	15
Notes to Financial Statements	21
Report of Independent Registered Public Accounting Firm	29
Federal Income Tax Information	30
Proxy Voting Policies and Procedures and Proxy Voting Record	30
Shareholder Reports and Quarterly Portfolio Disclosure	30
Board of Trustees, Officers and Advisory Board Members	31

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-MAINSTAY (624-6782), by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 169 Lackawanna Avenue, Parsippany, New Jersey 07054 or by sending an

e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at mainstayinvestments.com/documents. Please read the Summary Prospectus and/or Prospectus carefully before investing.

Investment and Performance Comparison¹(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–3.38 1.17	%		0.95 1.89	%		3.29 3.77	%		0.98 0.98	%
Investor Class Shares3	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–3.66 0.88			0.74 1.67			3.15 3.62			1.26 1.26
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–4.79 0.14			0.55 0.92			2.87 2.87			2.01 2.01
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		–0.85 0.14			0.89 0.89			2.86 2.86			2.01 2.01
Class I Shares	No Sales Charge			1.41			2.12			4.14			0.73

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

been lower. For more information on share classes and current fee waivers

and/or expense limitations, please refer to the notes to the financial statements.

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares would likely have been different.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
Barclays U.S. Government Bond Index4		2.36	%		2.41	%		4.31	%
Morningstar Intermediate Government Category Average5		1.52			2.10			3.96

4. The Barclays U.S. Government Bond Index consists of publicly issued debt of the U.S. Treasury and government agencies. The Barclays U.S. Government Bond Index is the Fund’s broad-based securities market index for comparison purposes. Total returns assume the reinvestment of all income and capital gains. An investment cannot be made directly in an Index.

5. The Morningstar Intermediate Government Category Average is representative of funds that have at least 90% of their bond holdings in

bonds backed by U.S. government or by U.S. government-linked agencies. These funds have durations between 3.5 and 6 years and/or average effective maturities between 4 and 10 years. Results are based on total returns 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 Government Fund

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

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	998.10	$	5.04	$	1,020.20	$	5.09
Investor Class Shares	$	1,000.00	$	996.70	$	6.39	$	1,018.80	$	6.46
Class B Shares	$	1,000.00	$	993.00	$	10.20	$	1,015.00	$	10.31
Class C Shares	$	1,000.00	$	993.00	$	10.20	$	1,015.00	$	10.31
Class I Shares	$	1,000.00	$	999.40	$	3.83	$	1,021.40	$	3.87

1. Expenses are equal to the Fund’s annualized expense ratio of each class (1.00% for Class A, 1.27% for Investor Class, 2.03% for Class B and Class C and 0.76% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Portfolio Composition as of October 31, 2015 (Unaudited)

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

‡ Less than one-tenth of a percent.

Top Ten Holdings as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities), 4.00%, due 3/1/41

2. Tennessee Valley Authority, 4.65%, due 6/15/35

3. Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities), 4.00%, due 2/1/41

4. Overseas Private Investment Corporation, 5.142%, due 12/15/23

5. Government National Mortgage Association (Mortgage Pass-Through Securities), 4.00%, due 10/15/41

  6. Federal National Mortgage Association (Mortgage Pass-Through Securities), 4.50%, due 1/1/41

  7. Federal National Mortgage Association (Mortgage Pass-Through Securities), 3.50%, due 11/1/41

  8. Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities), 3.50%, due 8/1/43

  9. Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities), 3.00%, due 6/1/45

10. Federal National Mortgage Association (Mortgage Pass-Through Securities), 3.00%, due 4/1/43

8 MainStay Government Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Dan Roberts, PhD, Louis N. Cohen, CFA, and Steven H. Rich, PhD, of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay Government Fund perform relative to its primary benchmark and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay Government Fund returned 1.17% for Class A shares, 0.88% for Investor Class shares and 0.14% for Class B and Class C shares for the 12 months ended October 31, 2015. Over the same period, the Fund’s Class I shares returned 1.41%. For the 12 months ended October 31, 2015, all share classes underperformed the 2.36% return of the Barclays U.S. Government Bond Index,¹ which is the Fund’s broad-based securities-market index. Over the same period, all share classes also underperformed the 1.52% return of the Morningstar Intermediate Government Category Average.² See page 5 for Fund returns with applicable sales charges.

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

The Fund’s performance relative to the Barclays U.S. Government Bond Index was affected primarily by four factors during the reporting period: duration³ positioning, yield-curve⁴ posture, sector weightings and issue selection.

During the reporting period, the Fund’s duration was shorter than that of the Barclays U.S. Government Bond Index. Having a shorter duration left the Fund less sensitive than the benchmark to changes in U.S. Treasury yields. This positioning detracted from relative performance as yields declined, on average, across the U.S. Treasury yield curve during the reporting period. The spread⁵ between 2- and 30-year U.S. Treasury securities narrowed during the reporting period. This flattening of the yield curve benefited peer Funds that had higher concentrations of longer-duration securities.

During the reporting period, agency mortgage pass-through securities⁶ represented the largest class of securities in the Fund. Our commitment to agency mortgage pass-through securities imparted a yield advantage over lower-yielding government-related securities, such as U.S. Treasury securities and agency debentures. This yield advantage was a positive contributor to the Fund’s relative performance during the reporting period. (Contributions take weightings and total returns into account.) This benefit, however, was partially offset by the underperformance of agency mortgage-backed securities

relative to comparable-duration U.S. Treasury securities. During the reporting period, investors expected a higher federal funds target rate to flow through to mortgage rates, dampening refinancing activity, slowing prepayments and lengthening durations. These factors slowed the Fund’s performance relative to the Barclays U.S. Government Bond Index, which held no mortgage-backed securities, and relative to peers with less exposure to the mortgage sector.

The Fund’s mortgage allocation favored mortgage-backed securities issued by Fannie Mae and Freddie Mac. In light of the outperformance of Fannie Mae and Freddie Mac securities relative to Ginnie Maes, the Fund would have experienced an advantage relative to peers with smaller allocations to Fannie Mae and Freddie Mac securities and larger allocations to Ginnie Mae securities. Ginnie Mae securities underperformed during the reporting period because of an unexpected 0.50% cut in the annual mortgage insurance premium for mortgages originated by the Federal Housing Administration. By lowering the effective rate on new mortgages, the insurance premium reduction opened refinancing opportunities for Federal Housing Administration–eligible borrowers, which in turn made Ginnie Mae mortgage-backed securities more likely to be called. In a market where Ginnie Mae mortgage pass-through securities were trading above par, faster prepayments were not desirable because principal repayments at par (as borrowers refinanced) diminished the total returns of the securities.

Low portfolio turnover benefited the Fund relative to peers with higher turnover by limiting transaction costs. We also sought to preserve yield by keeping the Fund nearly fully invested, avoiding large cash balances.

What was the Fund’s duration strategy during the reporting period?

The Fund’s 3.9-year duration at the end of the reporting period was shorter than the duration of the Barclays U.S. Government Bond Index. During the reporting period, we preferred to keep the Fund’s duration on the shorter side to help the Fund relative to its benchmark and longer-duration peers in the event of a rise in U.S. Treasury yields. During the reporting period we used U.S. Treasury futures to dampen the Fund’s interest-rate sensitivity. The use of these instruments allowed us to offset the risk

1. See footnote on page 6 for more information on the Barclays U.S. Government Bond Index.

2. See footnote on page 6 for more information on the Morningstar Intermediate Government Category Average.

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

4. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.

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

6. Mortgage pass-through securities consist of a pool of residential mortgage loans in which homeowners’ monthly payments of principal, interest and prepayments pass from the original bank through a government agency or an investment bank to investors.

9

that mortgage durations would extend if U.S. Treasury yields rose. Having a shorter duration made the Fund less sensitive than its benchmark to changes in U.S. Treasury yields. Accordingly, the short-duration posture detracted from performance relative to the benchmark and longer-duration peers because, on average, U.S. Treasury yields declined during the reporting period.

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

Most of the Fund’s residential mortgage exposure was in mortgage pass-through securities rather than collateralized mortgage obligations. In our opinion, the compensation demanded by the market during the reporting period for the better predictability of collateralized mortgage obligations was excessive.

The reporting period can be characterized as a period of transition, where the principal driver of the housing market migrated from refinancing to purchase activity as mortgage rates rose and seasonal housing dynamics strengthened, then reverted back to refinancing as mortgage rates declined and the peak summer housing season ended. To mute the impact of these changes, we emphasized mortgage pass-through securities whose underlying loan pools were less sensitive to mortgage rate changes. These “call-protected” pass-through securities presented a source of better value because the loan pools tended to be less responsive to falling mortgage rates, thereby stabilizing prepayment speeds and preserving more of the yield offered by the securities. A loan pool consisting of smaller-balance loans (e.g., a loan pool where no mortgage is larger than $110,000) represented one instance of a mortgage-backed security with superior call protection.

During the reporting period, which aspects of the Fund’s positioning were the strongest positive contributors to the Fund’s performance and which aspects detracted the most?

The Fund’s duration was the primary detractor from performance for the Fund. The Fund was postured to be less sensitive to changes in U.S. Treasury yields than the benchmark. As a result the Fund could not robustly benefit from the decline in yields during the reporting period. A second performance detractor was the Fund’s commitment to mortgage-backed securities, which underperformed comparable-duration

U.S. Treasury securities during the reporting period. The underperformance resulted from investor anticipation of greater market volatility should the Federal Reserve move to increase the federal funds target rate. The Fund offset some of this drag by favoring mortgage-backed securities with stable cash flows, which better positioned the Fund to withstand a backdrop of mortgage rates moving higher with U.S. Treasury yields.

The flattening of the U.S. Treasury yield curve between the 10- and 30-year maturities slowed the Fund’s performance relative to the Barclays U.S. Government Bond Index and relative to peers with a larger concentration of longer-duration securities.

One of the strongest positive contributors during the reporting period was the yield advantage of the Fund’s mortgage-backed securities relative to comparable-duration U.S. Treasury securities. Another contributor to relative performance was issue selection among mortgage-backed securities. Specifically, the Fund benefited from our willingness to underweight Ginnie Mae issues in favor of Fannie Mae and Freddie Mac pass-through securities and from our willingness to favor 30-year loan terms over shorter (15- and 20-year) loan terms.

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

The Fund’s sector weightings remained relatively stable during the reporting period. The majority of the Fund’s trading activity involved the reinvestment of principal prepayments received from mortgage-backed securities. The Fund mostly bought Fannie Mae and Freddie Mac mortgage pass-through securities backed by pools of 30-year mortgages.

How was the Fund positioned at the end of the reporting period?

As of October 31, 2015, the Fund held underweight positions relative to the Barclays U.S. Government Index in U.S. Treasury securities and agency debentures and an overweight position in agency mortgage pass-through securities. As of the same date, the Fund held modestly overweight positions relative to the Index in asset-backed securities and commercial mortgage-backed securities. As of October 31, 2015, the Fund’s collective non-government exposure was about 3% of net assets and the Fund held about 1% in cash or cash equivalents.

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

10 MainStay Government Fund

Portfolio of Investments October 31, 2015

	Principal Amount		Value
Long-Term Bonds 98.7%† Asset-Backed Securities 1.7%
Other ABS 0.2%
Small Business Administration Participation Certificates Series 2015-20G, Class 1 2.88%, due 7/1/35	$	330,000	$	335,118
Utilities 1.5%
Atlantic City Electric Transition Funding LLC Series 2002-1, Class A4 5.55%, due 10/20/23		2,258,751		2,478,094
Total Asset-Backed Securities (Cost $2,608,392)				2,813,212
Mortgage-Backed Securities 1.2%
Commercial Mortgage Loans (Collateralized Mortgage Obligation) 0.4%
Four Times Square Trust Series 2006-4TS, Class A 5.401%, due 12/13/28 (a)		620,000		693,620
Residential Mortgages (Collateralized Mortgage Obligations) 0.8%
Citigroup Mortgage Loan Trust, Inc. Series 2006-AR6, Class 1A1 5.358%, due 8/25/36 (b)		267,118		247,604
Mortgage Equity Conversion Asset Trust Series 2007-FF2, Class A 0.80%, due 2/25/42 (a)(c)(d)(e)		1,158,965		950,544
				1,198,148
Total Mortgage-Backed Securities (Cost $2,009,696)				1,891,768
U.S. Government & Federal Agencies 95.8%
Fannie Mae Strip (Collateralized Mortgage Obligations) 0.0%‡
Series 360, Class 2, IO 5.00%, due 8/25/35 (f)		260,560		51,551
Series 361, Class 2, IO 6.00%, due 10/25/35 (f)		52,962		9,628
				61,179
Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) 31.2%
2.25%, due 3/1/35 (c)		35,133		37,004
2.376%, due 2/1/37 (c)		84,555		90,199
2.50%, due 6/1/35 (c)		188,059		200,916

	Principal Amount		Value
Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) (continued)
3.00%, due 4/1/45	$	2,893,834	$	2,918,486
¨3.00%, due 6/1/45		3,501,520		3,531,349
3.00%, due 7/1/45		1,555,661		1,568,913
3.50%, due 10/1/25		434,897		461,204
3.50%, due 11/1/25		2,758,427		2,927,427
3.50%, due 4/1/42		1,056,318		1,102,564
3.50%, due 5/1/42		865,739		902,576
3.50%, due 7/1/42		429,125		447,376
3.50%, due 6/1/43		1,102,023		1,147,343
¨3.50%, due 8/1/43		3,478,214		3,626,897
3.50%, due 1/1/44		1,179,582		1,229,689
3.50%, due 5/1/44		360,197		376,986
3.50%, due 3/1/45		1,581,008		1,642,899
4.00%, due 3/1/25		1,225,884		1,292,707
4.00%, due 7/1/25		401,899		428,484
4.00%, due 8/1/31		163,641		175,890
4.00%, due 8/1/39		318,024		341,816
4.00%, due 12/1/40		3,135,767		3,363,499
¨4.00%, due 2/1/41		5,124,383		5,520,929
¨4.00%, due 3/1/41		5,940,410		6,407,406
4.00%, due 4/1/41		544,614		583,046
4.00%, due 1/1/42		2,818,524		3,040,540
4.00%, due 12/1/42		830,306		895,730
4.00%, due 11/1/43		330,392		351,156
4.50%, due 3/1/41		874,818		964,990
4.50%, due 8/1/41		1,133,632		1,244,509
5.00%, due 1/1/20		82,623		86,153
5.00%, due 6/1/33		535,112		593,912
5.00%, due 8/1/33		438,320		486,444
5.00%, due 5/1/36		372,905		410,524
5.00%, due 10/1/39		1,009,344		1,126,759
5.50%, due 1/1/21		285,904		308,921
5.50%, due 11/1/35		472,595		534,264
5.50%, due 11/1/36		115,514		130,858
6.50%, due 4/1/37		87,686		100,212
				50,600,577
Federal National Mortgage Association (Mortgage Pass-Through Securities) 46.8%
1.958%, due 11/1/34 (c)		181,707		189,660
2.232%, due 4/1/34 (c)		306,931		327,111
2.50%, due 2/1/43		936,381		914,919
3.00%, due 10/1/32		983,533		1,017,664
¨3.00%, due 4/1/43		3,321,629		3,366,717
3.50%, due 11/1/25		1,270,038		1,350,386
3.50%, due 11/1/32		753,863		794,719
3.50%, due 2/1/41		2,264,349		2,361,813
¨3.50%, due 11/1/41		3,643,158		3,814,259

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Principal Amount		Value
U.S. Government & Federal Agencies (continued)
Federal National Mortgage Association (Mortgage Pass-Through Securities) (continued)
3.50%, due 12/1/41	$	330,551	$	346,129
3.50%, due 1/1/42		1,913,399		2,011,360
3.50%, due 3/1/42		2,545,383		2,655,282
3.50%, due 8/1/42		1,500,718		1,569,667
3.50%, due 12/1/42		830,418		871,622
3.50%, due 2/1/43		1,293,300		1,358,188
3.50%, due 5/1/43		785,410		820,174
3.50%, due 6/1/43		889,641		930,609
4.00%, due 9/1/31		1,600,980		1,721,864
4.00%, due 2/1/41		1,657,305		1,780,911
4.00%, due 3/1/41		2,415,022		2,617,637
4.00%, due 10/1/41		538,987		584,206
4.00%, due 3/1/42		1,663,786		1,788,048
4.00%, due 4/1/42		717,926		771,479
4.00%, due 6/1/42		1,964,366		2,119,139
4.00%, due 7/1/42		1,884,597		2,033,089
4.50%, due 11/1/18		610,019		631,816
4.50%, due 6/1/23		433,625		458,174
4.50%, due 5/1/39		719,452		794,629
4.50%, due 6/1/39		2,376,417		2,625,288
4.50%, due 7/1/39		2,191,337		2,429,948
4.50%, due 8/1/39		1,944,170		2,148,306
4.50%, due 9/1/40		1,434,200		1,583,445
4.50%, due 12/1/40		2,207,640		2,414,253
¨4.50%, due 1/1/41		3,463,966		3,842,897
4.50%, due 2/1/41		1,204,998		1,327,974
4.50%, due 8/1/41		865,570		951,818
4.50%, due 12/1/43		612,975		664,450
5.00%, due 9/1/17		222,587		231,176
5.00%, due 9/1/20		28,364		29,459
5.00%, due 11/1/33		531,095		587,968
5.00%, due 6/1/35		486,741		538,747
5.00%, due 10/1/35		208,103		229,314
5.00%, due 1/1/36		109,031		120,211
5.00%, due 2/1/36		783,534		863,569
5.00%, due 5/1/36		538,628		593,542
5.00%, due 6/1/36		102,376		112,705
5.00%, due 9/1/36		143,599		158,240
5.00%, due 3/1/40		1,310,583		1,474,476
5.00%, due 2/1/41		2,339,918		2,645,805
5.50%, due 1/1/17		10,110		10,271
5.50%, due 2/1/17		218,120		222,159
5.50%, due 6/1/19		350,977		369,989
5.50%, due 11/1/19		415,651		439,166
5.50%, due 4/1/21		592,703		634,647
5.50%, due 6/1/33		1,503,656		1,693,094
5.50%, due 11/1/33		869,380		978,608
5.50%, due 12/1/33		1,048,048		1,183,412
5.50%, due 6/1/34		260,030		293,263

	Principal Amount		Value
Federal National Mortgage Association (Mortgage Pass-Through Securities) (continued)
5.50%, due 12/1/34	$	78,136	$	87,960
5.50%, due 3/1/35		432,932		488,686
5.50%, due 12/1/35		105,871		119,125
5.50%, due 4/1/36		327,873		368,628
5.50%, due 9/1/36		113,246		127,778
5.50%, due 7/1/37		238,899		273,633
6.00%, due 12/1/16		28,630		29,067
6.00%, due 11/1/32		272,389		311,934
6.00%, due 1/1/33		194,580		222,562
6.00%, due 3/1/33		206,348		236,205
6.00%, due 9/1/34		91,004		103,820
6.00%, due 9/1/35		640,769		736,222
6.00%, due 10/1/35		277,560		319,109
6.00%, due 6/1/36		227,139		257,193
6.00%, due 11/1/36		512,504		586,747
6.00%, due 4/1/37		73,324		80,319
6.50%, due 10/1/31		156,529		178,909
6.50%, due 2/1/37		65,331		76,728
				76,004,096
Government National Mortgage Association (Mortgage Pass-Through Securities) 8.1%
4.00%, due 7/15/39		484,346		516,128
4.00%, due 9/20/40		1,997,510		2,152,162
4.00%, due 11/20/40		332,024		360,712
4.00%, due 1/15/41		1,935,795		2,063,467
¨4.00%, due 10/15/41		3,584,433		3,874,933
4.50%, due 5/20/40		2,226,091		2,424,151
5.00%, due 2/20/41		521,912		580,107
6.00%, due 8/15/32		360,136		418,229
6.00%, due 12/15/32		228,016		259,822
6.50%, due 8/15/28		115,041		132,022
6.50%, due 4/15/31		374,314		439,779
				13,221,512
¨Overseas Private Investment Corporation 2.4%
5.142%, due 12/15/23		3,544,690		3,886,636
¨Tennessee Valley Authority 3.9%
4.65%, due 6/15/35		5,605,000		6,384,005
United States Treasury Notes 3.4%
1.75%, due 3/31/22		2,500,000		2,486,328
1.875%, due 11/30/21		3,000,000		3,016,095
				5,502,423
Total U.S. Government & Federal Agencies (Cost $149,157,341)				155,660,428
Total Long-Term Bonds (Cost $153,775,429)				160,365,408

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

	Principal Amount			Value
Short-Term Investment 1.3%
Repurchase Agreement 1.3%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $2,139,920 (Collateralized by a Federal Home Loan Mortgage Corp. security with a rate of 1.70% and a maturity date of 2/26/20, with a Principal Amount of $2,180,000 and a Market Value of $2,186,104)	$	2,139,920		$	2,139,920
Total Short-Term Investment (Cost $2,139,920)					2,139,920
Total Investments (Cost $155,915,349) (g)		100.0	%		162,505,328
Other Assets, Less Liabilities		(0.0	)‡		(14,073	)
Net Assets		100.0	%	$	162,491,255

‡ 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) 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 October 31, 2015.

(c) Floating rate—Rate shown was the rate in effect as of October 31, 2015.

(d) Illiquid security—As of October 31, 2015, the total market value of securities deemed illiquid under procedures approved by the Board of Trustees was $950,544, which represented 0.6% of the Fund’s net assets.

(e) Fair valued security—Represents fair value as measured in good faith under procedures approved by the Board of Trustees. As of October 31, 2015, the total market value of this security was $950,544, which represented 0.6% of the Fund’s net assets.

(f) 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.

(g) As of October 31, 2015, cost was $155,915,349 for federal income tax purposes and net unrealized appreciation was as follows:

Gross unrealized appreciation	$	7,056,861
Gross unrealized depreciation		(466,882	)
Net unrealized appreciation	$	6,589,979

As of October 31, 2015, the Fund held the following futures contracts¹:

Type	Number of Contracts (Short)			Expiration Date		Notional Amount			Unrealized Appreciation (Depreciation)2
5-Year United States Treasury Note		(110	)		December 2015	$	(13,175,078	)	$	27,258
10-Year United States Treasury Note		(8	)		December 2015		(1,021,500	)		3,357
						$	(14,196,578	)	$	30,615

1. As of October 31, 2015, cash in the amount of $109,800 was on deposit with a broker for futures transactions.

2. Represents the difference between the value of the contracts at the time they were opened and the value as of October 31, 2015.

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 October 31, 2015 (continued)

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Long-Term Bonds
Asset-Backed Securities	$	—	$	2,813,212	$	—	$	2,813,212
Mortgage-Backed Securities (b)		—		941,224		950,544		1,891,768
U.S. Government & Federal Agencies		—		155,660,428		—		155,660,428
Total Long-Term Bonds		—		159,414,864		950,544		160,365,408
Short-Term Investment
Repurchase Agreement		—		2,139,920		—		2,139,920
Total Investments in Securities		—		161,554,784		950,544		162,505,328
Other Financial Instruments
Futures Contracts Short (c)		30,615		—		—		30,615
Total Investments in Securities and Other Financial Instruments	$	30,615	$	161,554,784	$	950,544	$	162,535,943

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

(b) The Level 3 security valued at $950,544 is held in Residential Mortgages (Collateralized Mortgage Obligations) within the Mortgage-Backed Securities section of the Portfolio of Investments.

(c) The value listed for these securities reflects unrealized appreciation (depreciation) as shown on the Portfolio of Investments.

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

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

Investments in Securities	Balance as of October 31, 2014		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Purchases		Sales			Transfers in to Level 3		Transfers out of Level 3		Balance as of October 31, 2015		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at October 31, 2015 (a)
Long-Term Bonds
Mortgage-Backed Securities
Residential Mortgages (Collateralized Mortgage Obligations)	$	985,739	$	1,134	$	2,477	$	34,402	$	—	$	(73,208	)(b)	$	—	$	—	$	950,544	$	22,237
Total	$	985,739	$	1,134	$	2,477	$	34,402	$	—	$	(73,208	)	$	—	$	—	$	950,544	$	22,237

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

(b) Sales include principal reductions.

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

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $155,915,349)	$	162,505,328
Cash collateral on deposit at broker		109,800
Cash		4,842
Receivables:
Interest		611,965
Fund shares sold		19,603
Investment securities sold		955
Variation margin on futures contracts		234
Other assets		28,342
Total assets		163,281,069
Liabilities
Payables:
Fund shares redeemed		545,524
Manager (See Note 3)		68,714
Transfer agent (See Note 3)		62,454
NYLIFE Distributors (See Note 3)		50,241
Professional fees		21,111
Shareholder communication		13,663
Custodian		2,102
Trustees		412
Accrued expenses		4,423
Dividend payable		21,170
Total liabilities		789,814
Net assets	$	162,491,255
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	190,737
Additional paid-in capital		156,285,709
		156,476,446
Distributions in excess of net investment income		(2,390	)
Accumulated net realized gain (loss) on investments and futures transactions		(603,395	)
Net unrealized appreciation (depreciation) on investments and futures contracts		6,620,594
Net assets	$	162,491,255

Class A
Net assets applicable to outstanding shares	$	90,119,497
Shares of beneficial interest outstanding		10,592,271
Net asset value per share outstanding	$	8.51
Maximum sales charge (4.50% of offering price)		0.40
Maximum offering price per share outstanding	$	8.91
Investor Class
Net assets applicable to outstanding shares	$	42,444,489
Shares of beneficial interest outstanding		4,968,090
Net asset value per share outstanding	$	8.54
Maximum sales charge (4.50% of offering price)		0.40
Maximum offering price per share outstanding	$	8.94
Class B
Net assets applicable to outstanding shares	$	8,362,631
Shares of beneficial interest outstanding		982,932
Net asset value and offering price per share outstanding	$	8.51
Class C
Net assets applicable to outstanding shares	$	17,072,907
Shares of beneficial interest outstanding		2,007,644
Net asset value and offering price per share outstanding	$	8.50
Class I
Net assets applicable to outstanding shares	$	4,491,731
Shares of beneficial interest outstanding		522,791
Net asset value and offering price per share outstanding	$	8.59

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Interest	$	5,558,708
Expenses
Manager (See Note 3)		823,466
Distribution/Service—Class A (See Note 3)		233,602
Distribution/Service—Investor Class (See Note 3)		109,531
Distribution/Service—Class B (See Note 3)		94,042
Distribution/Service—Class C (See Note 3)		122,628
Transfer agent (See Note 3)		373,018
Registration		75,269
Professional fees		66,070
Shareholder communication		33,704
Custodian		23,580
Trustees		3,236
Miscellaneous		11,280
Total expenses		1,969,426
Net investment income (loss)		3,589,282
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts
Net realized gain (loss) on:
Investment transactions		211,859
Futures transactions		(1,004,717	)
Net realized gain (loss) on investments and futures transactions		(792,858	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,369,417	)
Futures contracts		220,078
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(1,149,339	)
Net realized and unrealized gain (loss) on investments and futures transactions		(1,942,197	)
Net increase (decrease) in net assets resulting from operations	$	1,647,085

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

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	3,589,282		$	4,163,050
Net realized gain (loss) on investments and futures transactions		(792,858	)		(290,890	)
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(1,149,339	)		1,672,621
Net increase (decrease) in net assets resulting from operations		1,647,085			5,544,781
Dividends and distributions to shareholders:
From net investment income:
Class A		(2,214,956	)		(2,643,503	)
Investor Class		(913,904	)		(1,043,137	)
Class B		(126,342	)		(177,433	)
Class C		(167,451	)		(148,250	)
Class I		(143,227	)		(149,197	)
		(3,565,880	)		(4,161,520	)
From net realized gain on investments:
Class A		(174,799	)		(225,506	)
Investor Class		(82,736	)		(103,815	)
Class B		(18,280	)		(29,852	)
Class C		(21,724	)		(24,923	)
Class I		(17,272	)		(7,198	)
		(314,811	)		(391,294	)
Total dividends and distributions to shareholders		(3,880,691	)		(4,552,814	)
Capital share transactions:
Net proceeds from sale of shares		29,631,569			28,682,482
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		3,576,891			4,184,421
Cost of shares redeemed		(46,438,657	)		(80,275,692	)
Increase (decrease) in net assets derived from capital share transactions		(13,230,197	)		(47,408,789	)
Net increase (decrease) in net assets		(15,463,803	)		(46,416,822	)
Net Assets
Beginning of year		177,955,058			224,371,880
End of year	$	162,491,255		$	177,955,058
Distributions in excess of net investment income at end of year	$	(2,390	)	$	(25,597	)

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	8.63		$	8.57		$	9.02		$	8.86		$	9.00
Net investment income (loss) (a)		0.20			0.21			0.19			0.22			0.24
Net realized and unrealized gain (loss) on investments		(0.10	)		0.08			(0.41	)		0.19			(0.01	)
Total from investment operations		0.10			0.29			(0.22	)		0.41			0.23
Less dividends and distributions:
From net investment income		(0.20	)		(0.21	)		(0.20	)		(0.23	)		(0.28	)
From net realized gain on investments		(0.02	)		(0.02	)		(0.03	)		(0.02	)		(0.09	)
Total dividends and distributions		(0.22	)		(0.23	)		(0.23	)		(0.25	)		(0.37	)
Net asset value at end of year	$	8.51		$	8.63		$	8.57		$	9.02		$	8.86
Total investment return (b)		1.17	%		3.46	%		(2.50	%)		4.70	%		2.76	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.38	%		2.47	%		2.17	%		2.46	%		2.74	%
Net expenses		1.00	%		0.98	%		1.03	%		1.03	%		1.03	%
Expenses (before waiver/reimbursement)		1.00	%		0.98	%		1.09	%		1.14	%		1.17	%
Portfolio turnover rate (c)		13	%		14	%		28	%		37	%		62	%
Net assets at end of year (in 000’s)	$	90,119		$	100,212		$	143,234		$	174,621		$	176,253

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

(c) The portfolio turnover rates not including mortgage dollar rolls were 7%, 16% and 43% for the years ended October 31, 2013, 2012, and 2011, respectively.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	8.66		$	8.60		$	9.05		$	8.90		$	9.03
Net investment income (loss) (a)		0.18			0.19			0.18			0.21			0.23
Net realized and unrealized gain (loss) on investments		(0.10	)		0.08			(0.42	)		0.17			(0.00	)‡
Total from investment operations		0.08			0.27			(0.24	)		0.38			0.23
Less dividends and distributions:
From net investment income		(0.18	)		(0.19	)		(0.18	)		(0.21	)		(0.27	)
From net realized gain on investments		(0.02	)		(0.02	)		(0.03	)		(0.02	)		(0.09	)
Total dividends and distributions		(0.20	)		(0.21	)		(0.21	)		(0.23	)		(0.36	)
Net asset value at end of year	$	8.54		$	8.66		$	8.60		$	9.05		$	8.90
Total investment return (b)		0.88	%		3.15	%		(2.66	%)		4.42	%		2.73	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.11	%		2.19	%		2.01	%		2.32	%		2.61	%
Net expenses		1.28	%		1.26	%		1.19	%		1.17	%		1.17	%
Expenses (before waiver/reimbursement)		1.28	%		1.26	%		1.25	%		1.28	%		1.31	%
Portfolio turnover rate (c)		13	%		14	%		28	%		37	%		62	%
Net assets at end of year (in 000’s)	$	42,444		$	45,947		$	50,200		$	57,666		$	59,533

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

(c) The portfolio turnover rates not including mortgage dollar rolls were 7%, 16% and 43% for the years ended October 31, 2013, 2012, and 2011, respectively.

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	8.63		$	8.57		$	9.02		$	8.86		$	9.00
Net investment income (loss) (a)		0.12			0.12			0.11			0.14			0.16
Net realized and unrealized gain (loss) on investments		(0.10	)		0.08			(0.42	)		0.19			(0.00	)‡
Total from investment operations		0.02			0.20			(0.31	)		0.33			0.16
Less dividends and distributions:
From net investment income		(0.12	)		(0.12	)		(0.11	)		(0.15	)		(0.21	)
From net realized gain on investments		(0.02	)		(0.02	)		(0.03	)		(0.02	)		(0.09	)
Total dividends and distributions		(0.14	)		(0.14	)		(0.14	)		(0.17	)		(0.30	)
Net asset value at end of year	$	8.51		$	8.63		$	8.57		$	9.02		$	8.86
Total investment return (b)		0.14	%		2.38	%		(3.40	%)		3.77	%		1.85	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.35	%		1.44	%		1.26	%		1.57	%		1.85	%
Net expenses		2.03	%		2.01	%		1.94	%		1.92	%		1.92	%
Expenses (before waiver/reimbursement)		2.03	%		2.01	%		2.00	%		2.03	%		2.06	%
Portfolio turnover rate (c)		13	%		14	%		28	%		37	%		62	%
Net assets at end of year (in 000’s)	$	8,363		$	10,550		$	14,783		$	21,826		$	25,644

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

(c) The portfolio turnover rates not including mortgage dollar rolls were 7%, 16% and 43% for the years ended October 31, 2013, 2012, and 2011, respectively.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	8.62		$	8.56		$	9.01		$	8.86		$	9.00
Net investment income (loss) (a)		0.12			0.12			0.11			0.14			0.16
Net realized and unrealized gain (loss) on investments		(0.10	)		0.08			(0.42	)		0.18			(0.00	)‡
Total from investment operations		0.02			0.20			(0.31	)		0.32			0.16
Less dividends and distributions:
From net investment income		(0.12	)		(0.12	)		(0.11	)		(0.15	)		(0.21	)
From net realized gain on investments		(0.02	)		(0.02	)		(0.03	)		(0.02	)		(0.09	)
Total dividends and distributions		(0.14	)		(0.14	)		(0.14	)		(0.17	)		(0.30	)
Net asset value at end of year	$	8.50		$	8.62		$	8.56		$	9.01		$	8.86
Total investment return (b)		0.14	%		2.39	%		(3.41	%)		3.66	%		1.85	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.34	%		1.44	%		1.24	%		1.57	%		1.86	%
Net expenses		2.03	%		2.01	%		1.94	%		1.92	%		1.92	%
Expenses (before waiver/reimbursement)		2.03	%		2.01	%		2.00	%		2.03	%		2.06	%
Portfolio turnover rate (c)		13	%		14	%		28	%		37	%		62	%
Net assets at end of year (in 000’s)	$	17,073		$	11,226		$	12,593		$	27,610		$	29,441

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

(c) The portfolio turnover rates not including mortgage dollar rolls were 7%, 16% and 43% for the years ended October 31, 2013, 2012, and 2011, 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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	8.71		$	8.65		$	9.10		$	8.94		$	9.08
Net investment income (loss) (a)		0.22			0.23			0.21			0.24			0.26
Net realized and unrealized gain (loss) on investments		(0.09	)		0.09			(0.41	)		0.19			(0.00	)‡
Total from investment operations		0.13			0.32			(0.20	)		0.43			0.26
Less dividends and distributions:
From net investment income		(0.23	)		(0.24	)		(0.22	)		(0.25	)		(0.31	)
From net realized gain on investments		(0.02	)		(0.02	)		(0.03	)		(0.02	)		(0.09	)
Total dividends and distributions		(0.25	)		(0.26	)		(0.25	)		(0.27	)		(0.40	)
Net asset value at end of year	$	8.59		$	8.71		$	8.65		$	9.10		$	8.94
Total investment return (b)		1.41	%		3.69	%		(2.24	%)		4.92	%		2.99	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.57	%		2.70	%		2.42	%		2.69	%		2.99	%
Net expenses		0.75	%		0.73	%		0.78	%		0.78	%		0.78	%
Expenses (before waiver/reimbursement)		0.75	%		0.73	%		0.84	%		0.89	%		0.92	%
Portfolio turnover rate (c)		13	%		14	%		28	%		37	%		62	%
Net assets at end of year (in 000’s)	$	4,492		$	10,020		$	3,561		$	5,753		$	3,998

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.

(c) The portfolio turnover rates not including mortgage dollar rolls were 7%, 16% and 43% for the years ended October 31, 2013, 2012, and 2011, respectively.

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

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Government 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 currently offers five classes of shares. Class A shares commenced operations on January 3, 1995. Class B shares commenced operations on May 1, 1986. Class C shares commenced operations on September 1, 1998. Class I shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A and Investor Class shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek 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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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 in active markets for an identical asset or liability

21

Notes to Financial Statements (continued)

• 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, the Fund held a security with a value of $950,544 that was fair valued in such a manner.

Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Investments in mutual

funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities (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 Manager, in consultation with the Subadvisor. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean prices are deemed by the Manager, 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 & 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. Other temporary cash investments which 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. These securities are generally categorized as Level 2 in the hierarchy.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued within seven days. Illiquidity of a security might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of the Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor measures the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued by methods deemed reasonable in good faith in such a manner as the Board deems appropriate to reflect their fair value. The liquidity of the Fund’s investments, as shown in the accompanying Portfolio of Investments, was measured as of October 31, 2015 and can change at any time in response to, among other relevant factors, market conditions or events or developments with respect to an individual issuer or instrument. As of October 31, 2015, securities deemed to be illiquid

22 MainStay Government Fund

under procedures approved by the Board of Trustees are shown in the Portfolio of Investments.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

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

(D)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Interest income is accrued as earned using the effective interest rate method and includes realized gains and losses from repayments of principal on mortgage-backed securities. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

The Fund may place a debt obligation on non-accrual status and reduce related interest income by ceasing current accruals and writing off interest

receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation 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, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(H)  Futures Contracts.  A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., foreign currency, interest rate, security, or securities index). The Fund is subject to market price risk and/or interest rate risk in the normal course of investing in these transactions. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized 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.

23

Notes to Financial Statements (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 may involve a small initial investment relative to the risk assumed, which could result in losses greater than if they had not been used. Futures 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 help manage the duration and yield curve of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAV and may result in a loss to the Fund.

(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. 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. The Fund maintains liquid assets from its portfolio having a value not less than the repurchase price, including accrued interest. Dollar roll transactions involve certain risks, including the risk that the security 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)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will

consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

(K)  Concentration of Risk.  The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific country, industry or region.

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

(M)  Quantitative Disclosure of Derivative Holdings.   The following tables show additional disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash flows. The Fund invested in futures contracts to help manage the duration and yield curve of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. These derivatives are not accounted for as hedging instruments.

Fair value of derivative instruments as of October 31, 2015:

Asset Derivatives

	Statement of Assets and Liabilities Location	Interest Rate Contracts Risk		Total
Futures Contracts	Net Assets-Net unrealized appreciation (depreciation) on investments and futures contracts (a)	$	30,615	$	30,615
Total Fair Value		$	30,615	$	30,615

(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.

24 MainStay Government Fund

The effect of derivative instruments on the Statement of Operations for the year ended October 31, 2015:

Realized Gain (Loss)

	Statement of Operations Location	Interest Rate Contracts Risk			Total
Futures Contracts	Net realized gain (loss) on futures transactions	$	(1,004,717	)	$	(1,004,717	)
Total Realized Gain (Loss)		$	(1,004,717	)	$	(1,004,717	)

Change in Unrealized Appreciation (Depreciation)

	Statement of Operations Location	Interest Rate Contracts Risk		Total
Futures Contracts	Net change in unrealized appreciation (depreciation) on futures contracts	$	220,078	$	220,078
Total Change in Unrealized Appreciation (Depreciation)		$	220,078	$	220,078

Average Notional Amount

	Interest Rate Contracts Risk	Total
Futures Contracts Short	$(30,296,168)	$	(30,296,168	)

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 a portion of the compensation of the Chief Compliance Officer of 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 Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of the 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.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual

rate of its average daily net assets as follows: 0.50% up to $500 million; 0.475% from $500 million to $1 billion; and 0.45% in excess of $1 billion.

During the year ended October 31, 2015, the effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.50%.

New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses for the Fund’s Class A shares do not exceed 1.00% of its average daily net assets. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points, to the other share classes of the Fund. This agreement will remain in effect until February 28, 2016, 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 by the Board. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $823,466.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly distribution 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, 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 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.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $7,527 and $2,976, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Class B and Class C shares of $550, $21,396 and $2,553, respectively.

25

Notes to Financial Statements (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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	107,154
Investor Class		173,752
Class B		37,247
Class C		48,245
Class I		6,620

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

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)			Other Temporary Differences			Unrealized Appreciation (Depreciation)		Total Accumulated Gain (Loss)
$18,780	$	(572,780	)	$	(21,170	)	$	6,589,979	$	6,014,809

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to mark to market of futures contracts. The other temporary differences are primarily due to dividends payable.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments		Additional Paid-In Capital
$(195)	$	195	$	—

The reclassifications for the Fund are primarily due to distribution redesignations.

As of October 31, 2015, for federal income tax purposes, capital loss carryforwards of $572,780 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains

of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss Available Through	Short-Term Capital Loss Amounts (000’s)		Long-Term Capital Loss Amounts (000’s)
Unlimited	$	314	$	259

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	3,566,075	$	4,158,989
Long-Term Capital Gain		314,616		393,825
Total	$	3,880,691	$	4,552,814

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 6–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

Note 7–Purchases and Sales of Securities (in 000’s)

During the year ended October 31, 2015, purchases and sales of U.S. government securities were $20,285 and $30,871, respectively. Purchases and sales of securities, other than U.S. government securities and short-term securities, were $330 and $1,560, respectively.

26 MainStay Government Fund

Note 8–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		1,378,750		$	11,850,690
Shares issued to shareholders in reinvestment of dividends and distributions		252,146			2,165,235
Shares redeemed		(2,748,908	)		(23,655,170	)
Net increase (decrease) in shares outstanding before conversion		(1,118,012	)		(9,639,245	)
Shares converted into Class A (See Note 1)		180,941			1,558,245
Shares converted from Class A (See Note 1)		(83,343	)		(716,000	)
Net increase (decrease)		(1,020,414	)	$	(8,797,000	)
Year ended October 31, 2014:
Shares sold		1,672,527		$	14,362,263
Shares issued to shareholders in reinvestment of dividends and distributions		304,535			2,606,787
Shares redeemed		(7,166,019	)		(61,230,211	)
Net increase (decrease) in shares outstanding before conversion		(5,188,957	)		(44,261,161	)
Shares converted into Class A (See Note 1)		177,556			1,518,898
Shares converted from Class A (See Note 1)		(90,733	)		(777,602	)
Net increase (decrease)		(5,102,134	)	$	(43,519,865	)
Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		246,000		$	2,120,044
Shares issued to shareholders in reinvestment of dividends and distributions		110,476			952,264
Shares redeemed		(744,101	)		(6,422,185	)
Net increase (decrease) in shares outstanding before conversion		(387,625	)		(3,349,877	)
Shares converted into Investor Class (See Note 1)		192,597			1,660,405
Shares converted from Investor Class (See Note 1)		(139,902	)		(1,210,648	)
Net increase (decrease)		(334,930	)	$	(2,900,120	)
Year ended October 31, 2014:
Shares sold		153,219		$	1,318,904
Shares issued to shareholders in reinvestment of dividends and distributions		127,068			1,091,666
Shares redeemed		(923,138	)		(7,941,392	)
Net increase (decrease) in shares outstanding before conversion		(642,851	)		(5,530,822	)
Shares converted into Investor Class (See Note 1)		229,888			1,976,072
Shares converted from Investor Class (See Note 1)		(120,214	)		(1,032,674	)
Net increase (decrease)		(533,177	)	$	(4,587,424	)

Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		238,206		$	2,045,118
Shares issued to shareholders in reinvestment of dividends and distributions		15,391			132,174
Shares redeemed		(342,745	)		(2,941,976	)
Net increase (decrease) in shares outstanding before conversion		(89,148	)		(764,684	)
Shares converted from Class B (See Note 1)		(150,508	)		(1,292,002	)
Net increase (decrease)		(239,656	)	$	(2,056,686	)
Year ended October 31, 2014:
Shares sold		126,065		$	1,080,415
Shares issued to shareholders in reinvestment of dividends and distributions		21,564			184,401
Shares redeemed		(453,626	)		(3,882,124	)
Net increase (decrease) in shares outstanding before conversion		(305,997	)		(2,617,308	)
Shares converted from Class B (See Note 1)		(196,953	)		(1,684,694	)
Net increase (decrease)		(502,950	)	$	(4,302,002	)
Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		1,401,812		$	12,001,243
Shares issued to shareholders in reinvestment of dividends and distributions		20,421			175,131
Shares redeemed		(716,200	)		(6,157,680	)
Net increase (decrease)		706,033		$	6,018,694
Year ended October 31, 2014:
Shares sold		397,180		$	3,418,689
Shares issued to shareholders in reinvestment of dividends and distributions		18,041			154,097
Shares redeemed		(584,329	)		(4,995,168	)
Net increase (decrease)		(169,108	)	$	(1,422,382	)
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		186,316		$	1,614,474
Shares issued to shareholders in reinvestment of dividends and distributions		17,516			152,087
Shares redeemed		(830,984	)		(7,261,646	)
Net increase (decrease)		(627,152	)	$	(5,495,085	)
Year ended October 31, 2014:
Shares sold		978,430		$	8,502,211
Shares issued to shareholders in reinvestment of dividends and distributions		17,020			147,470
Shares redeemed		(257,037	)		(2,226,797	)
Net increase (decrease)		738,413		$	6,422,884

Note 9–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning

27

Notes to Financial Statements (continued)

after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

28 MainStay Government Fund

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Government Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Government Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

29

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years. Accordingly, the Fund paid $314,616 as a long term capital gain distribution.

In February 2016 shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

30 MainStay Government Fund

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

31

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

32 MainStay Government Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

33

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

34 MainStay Government Fund

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

35

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MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673266 MS291-15 MSG11-12/15 (NYLIM) NL211

MainStay High Yield Corporate Bond Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	25
Notes to Financial Statements	32
Report of Independent Registered Public Accounting Firm	42
Federal Income Tax Information	43
Proxy Voting Policies and Procedures and Proxy Voting Record	43
Shareholder Reports and Quarterly Portfolio Disclosure	43
Board of Trustees, Officers and Advisory Board Members	44

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

Investment and Performance Comparison¹ (Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–4.44 0.06	%		4.77 5.74	%		5.84 6.33	%		0.99 0.99	%
Investor Class Shares3	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–4.56 –0.07			4.72 5.69			5.81 6.29			1.01 1.01
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–5.30 –0.60			4.62 4.93			5.53 5.53			1.76 1.76
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		–1.54 –0.60			4.93 4.93			5.52 5.52			1.76 1.76
Class I Shares	No Sales Charge			0.32			6.03			6.61			0.74
Class R1 Shares4	No Sales Charge			0.21			5.86			6.47			0.84
Class R2 Shares5	No Sales Charge			–0.04			5.61			6.24			1.09
Class R6 Shares6	No Sales Charge			0.50			6.13			6.66			0.58

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class R1 shares, first offered on June 29, 2012, include the historical performance of Class B shares through June 28, 2012, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Class R1 shares would likely have been different.

5. Class R2 shares were first offered on December 14, 2007, although this class of shares did not commence investment operations until May 1, 2008. Performance figures for Class R2 shares include the historical performance of Class B shares through April 30, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Class R2 shares would likely have been different.

6. Performance figures for Class R6 shares, first offered on June 17, 2013, include the historical performance of Class I shares through June 16, 2013. Performance for Class R6 shares would likely have been different because of differences in expenses attributable to each share class.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
Credit Suisse High Yield Index7		–2.43	%		5.97	%		7.26	%
Average Lipper High Yield Fund8		–2.24			5.17			6.25

7. The Credit Suisse High Yield Index is a market-weighted index that includes publicly traded bonds rated below BBB by Standard & Poor’s and below Baa by Moody’s. The Credit Suisse High Yield Index is the Fund’s broad-based securities market index for comparison purposes. Total returns assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.

8. The Average Lipper High Yield Fund is representative of funds that, by portfolio practice, aim at high (relative) current yield from fixed income

securities, have no quality or maturity restrictions, and tend to invest in lower-grade debt issues. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay High Yield Corporate Bond Fund

Cost in Dollars of a $1,000 Investment in MainStay High Yield Corporate Bond Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	984.20	$	4.70	$	1,020.50	$	4.79
Investor Class Shares	$	1,000.00	$	984.50	$	5.10	$	1,020.10	$	5.19
Class B Shares	$	1,000.00	$	981.70	$	8.84	$	1,016.30	$	9.00
Class C Shares	$	1,000.00	$	981.70	$	8.84	$	1,016.30	$	9.00
Class I Shares	$	1,000.00	$	987.20	$	3.51	$	1,021.70	$	3.57
Class R1 Shares	$	1,000.00	$	986.60	$	3.96	$	1,021.20	$	4.02
Class R2 Shares	$	1,000.00	$	983.70	$	5.20	$	1,020.00	$	5.30
Class R6 Shares	$	1,000.00	$	988.00	$	2.91	$	1,022.30	$	2.96

1. Expenses are equal to the Fund’s annualized expense ratio of each class (0.94% for Class A, 1.02% for Investor Class, 1.77% for Class B and Class C, 0.70% for Class I, 0.79% for Class R1, 1.04% for Class R2 and 0.58% for Class R6) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Portfolio Composition as of October 31, 2015 (Unaudited)

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

Top Ten Holdings or Issuers Held as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. T-Mobile USA, Inc., 6.00%–6.731%,
due 11/15/20–3/1/25

2. Schaeffler Holding Finance B.V., 6.25%–6.875%, due 8/15/18–11/15/22

3. Crown Castle International Corp., 4.875%–5.25%, due 4/15/22–1/15/23

4. Valeant Pharmaceuticals International, Inc.,
5.875%–7.50%, due 8/15/18–4/15/25

5. HCA, Inc., 4.25%–8.36%, due 2/15/16–9/15/25

  6. Exide Technologies, Inc.

  7. CCO Holdings LLC / CCO Holdings Capital Corp., 5.125%–7.00%, due 1/15/19–5/1/27

  8. Virgin Media Secured Finance PLC, 5.25%, due 1/15/21–1/15/26

  9. Nielsen Finance LLC / Nielsen Finance Co.,
4.50%–5.00%, due 10/1/20–4/15/22

10. GenOn Energy, Inc., 7.875%–9.50%,
due 6/15/17–10/15/18

8 MainStay High Yield Corporate Bond Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio manager Andrew Susser of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay High Yield Corporate Bond Fund perform relative to its primary benchmark and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay High Yield Corporate Bond Fund returned 0.06% for Class A shares, –0.07% for Investor Class shares and –0.60% for Class B and Class C shares for the 12 months ended October 31, 2015. Over the same period, Class I shares returned 0.32%, Class R1 shares returned 0.21%, Class R2 shares returned –0.04% and Class R6 shares returned 0.50%. For the 12 months ended October 31, 2015, all share classes outperformed the –2.43% return of the Credit Suisse High Yield Index,¹ which is the Fund’s broad-based securities-market index and the –2.24% return of the Average Lipper² High Yield Fund. See page 5 for Fund returns with applicable sales charges.

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

The Fund is managed in a bottom-up investment style, which focuses on individual credit selection. Positioning and credit selection within the energy and metals/minerals sectors, which experienced increased volatility during the reporting period, were the main contributors to the Fund’s performance relative to the Credit Suisse High Yield Index. (Contributions take weightings and total returns into account.) The Fund’s underweight position in weaker-performing energy companies in advance of the sharp decline in high-yield energy bond prices contributed positively to the Fund’s performance relative to the Index. In the metals/minerals sector, a focus on aluminum and gold mining companies, along with underweight positions in coal and iron ore credits, contributed positively to the Fund’s performance relative to the Credit Suisse High Yield Index. Security selection in the cable/wireless video sector contributed to both absolute and relative performance.

The Fund remained conservatively positioned throughout the reporting period because we found relative valuations (as measured by spreads)³ more attractive and credit profiles more resilient in the higher-quality segment of the market. Our overweight position in the higher-quality segment of the market

contributed positively to the Fund’s performance relative to the Credit Suisse High Yield Index during the reporting period, as credits rated BB outperformed credits rated CCC.⁴

What was the Fund’s duration⁵ strategy during the reporting period?

The Fund is not managed to a duration strategy, and the Fund’s duration positioning resulted from our bottom-up investment process. During the reporting period, the Fund’s duration was slightly shorter than that of the Credit Suisse High Yield Index and had a neutral impact on relative performance. As of October 31, 2015, the Fund’s modified duration⁶ was approximately 3.60 years, compared to 3.92 years for the Index.

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

In late 2014, energy prices and high-yield bond prices in the energy sector fell sharply. Several press reports focused on the possibility of heavy defaults and on size and growth of high-yield issuance in the energy sector. These reports hurt investor sentiment. The Fund invested in select credits in energy—exploration & production at risk-adjusted yields that we found attractive in light of the securities’ margins of safety. The Fund trimmed these positions as the energy sector rebounded somewhat in the beginning of 2015 as oil prices recovered and many high-yield energy companies either issued new stock or engaged in mergers and acquisitions. Iron ore, coal and other commodity-linked bonds also faced pressure during the reporting period because of concerns over Chinese commodities. The Fund held underweight positions in these commodity-linked bonds, focusing instead on aluminum and gold mining companies.

Volatility resurfaced in the summer months, as commodity prices continued to fall, China’s economy slowed and the financial media remained bearish on high-yield bonds. These forces led to poor performance in the third quarter of 2015. Despite these setbacks, the Fund found select opportunities to increase its yield in recent months.

1. See footnote on page 6 for more information on the Credit Suisse High Yield Index.

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

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

4. An obligation rated ‘BB’ by Standard & Poor’s (“S&P”) is deemed by S&P to be less vulnerable to nonpayment than other speculative issues. In the opinion of S&P, however, the obligor faces major ongoing uncertainties or exposure to adverse business, financial or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation. An obligation rated ‘CCC’ by S&P is deemed by S&P to be currently vulnerable to nonpayment and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitment on the obligation. It is the opinion of S&P that in the event of adverse business, financial or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.

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

6. Modified duration is inversely related to the approximate percentage change in price for a given change in yield.

9

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

During the reporting period, credit selection and an underweight position in the energy sector contributed positively to the Fund’s performance relative to the Credit Suisse High Yield Index. Credit selection in the metals/minerals sector also added to the Fund’s relative performance. Positive credit selection also contributed to relative performance in the cable/wireless video sector. On the other hand, credit selection and an underweight position in the food/tobacco segment and an underweight position in gaming/leisure detracted from the Fund’s performance relative to the Credit Suisse High Yield Index.

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

The Fund purchased bonds of discount retailer Dollar Tree during the reporting period. The bonds were issued along with the company’s acquisition of Family Dollar. We expected that the acquisition would create cost savings through synergies. We also believed that lower-producing stores would be divested and that management was committed to returning the company to an investment-grade rating. The Fund purchased newly issued bonds of Internet television network Netflix as the company raised money to build out content. Given the company’s existing subscriber base, we believed that Netflix had a scale advantage that would be very difficult to replicate. The Fund also bought new issue bonds of chemical company Olin. The bonds were used to fund Olin’s acquisition of Dow Chemicals’ U.S. chlor-

alkali and epoxy business. The bonds came to market at a significant discount to existing Olin bonds and the broader chemicals sector.

The bonds of Mueller Water Products were called away (redeemed by the issuer prior to maturity) and refinanced with loans that we added to the Fund. In addition, the Fund sold some of its bonds of wireless telecommunications company Sprint, as we felt that the yield was too low to compensate for the company’s higher risk profile.

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

During the reporting period, there were no material changes to the sector weightings in the Fund. There was a small increase in the Fund’s exposure to information technology, health care and media because of attractive valuations and yields. The Fund reduced its exposure to the energy sector, but continued to focus on exploration & production companies that we believed were attractive. The Fund also reduced its overweight position in the transportation sector.

How was the Fund positioned at the end of the reporting period?

As of October 31, 2015, the Fund held overweight positions relative to the Credit Suisse High Yield Index in transportation, services and housing. As of the same date, the Fund held underweight positions relative to the Index in the energy, utility and information technology sectors.

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

10 MainStay High Yield Corporate Bond Fund

Portfolio of Investments October 31, 2015

	Principal Amount		Value
Long-Term Bonds 92.9%† Convertible Bonds 1.3%
Auto Parts & Equipment 0.6%
¨Exide Technologies, Inc. 7.00%, due 4/30/25 (a)(b)(c)(d)	$	69,215,341	$	53,295,813
Electric 0.0%‡
Upstate New York Power Producers, Inc. 20.00%, due 6/15/17 (a)(b)(c)(d)(e)		4,008,403		4,369,159
Mining 0.5%
Detour Gold Corp. 5.50%, due 11/30/17		44,460,000		42,931,687
Oil & Gas 0.2%
Stone Energy Corp. 1.75%, due 3/1/17		24,295,000		22,229,925
Total Convertible Bonds (Cost $128,414,725)				122,826,584
Corporate Bonds 90.9%
Advertising 0.7%
Lamar Media Corp. 5.00%, due 5/1/23		13,580,000		13,953,450
5.375%, due 1/15/24		3,960,000		4,108,500
5.875%, due 2/1/22		20,500,000		21,730,000
Outfront Media Capital LLC / Outfront Media Capital Corp. 5.25%, due 2/15/22		16,154,000		16,598,235
5.625%, due 2/15/24 (d)		1,500,000		1,560,945
5.625%, due 2/15/24		9,850,000		10,250,205
				68,201,335
Aerospace & Defense 1.9%
Aerojet Rocketdyne Holdings, Inc. 7.125%, due 3/15/21		44,704,000		46,995,080
KLX, Inc. 5.875%, due 12/1/22 (d)		30,765,000		31,399,528
Kratos Defense & Security Solutions, Inc. 7.00%, due 5/15/19		25,293,000		20,105,406
Moog, Inc. 5.25%, due 12/1/22 (d)		4,000,000		4,080,000
Orbital ATK, Inc. 5.25%, due 10/1/21		3,190,000		3,261,775
5.50%, due 10/1/23 (d)		9,170,000		9,582,650
Spirit AeroSystems, Inc. 5.25%, due 3/15/22		27,120,000		28,035,300

	Principal Amount		Value
Aerospace & Defense (continued)
TransDigm, Inc. 5.50%, due 10/15/20	$	4,100,000	$	4,110,250
6.00%, due 7/15/22		5,000,000		5,050,000
6.50%, due 7/15/24		14,596,000		14,851,430
6.50%, due 5/15/25 (d)		14,080,000		14,308,800
				181,780,219
Apparel 0.4%
William Carter Co. (The) 5.25%, due 8/15/21		17,520,000		18,198,900
Wolverine World Wide, Inc. 6.125%, due 10/15/20		16,613,000		17,443,650
				35,642,550
Auto Manufacturers 1.1%
Allied Specialty Vehicles, Inc. 8.50%, due 11/1/19 (d)		32,060,000		33,342,400
Ford Holdings LLC 9.30%, due 3/1/30		18,155,000		25,393,108
9.375%, due 3/1/20		1,695,000		2,074,707
General Motors Financial Co., Inc. 4.75%, due 8/15/17		12,000,000		12,469,020
6.75%, due 6/1/18		18,000,000		19,682,964
Jaguar Land Rover Automotive PLC 4.125%, due 12/15/18 (d)		2,500,000		2,562,500
4.25%, due 11/15/19 (d)		2,500,000		2,543,750
				98,068,449
Auto Parts & Equipment 3.6%
¨Exide Technologies, Inc. 11.00%, due 4/30/20 (b)(c)(d)		63,793,689		54,224,636
¨Exide Technologies, Inc. (Escrow Claim Shares) 8.625%, due 2/1/18 (b)(c)(d)(e)		64,863,000		64,863
International Automotive Components Group S.A. 9.125%, due 6/1/18 (d)		13,960,000		14,099,600
Nexteer Automotive Group, Ltd. 5.875%, due 11/15/21 (d)		23,100,000		23,331,000
Schaeffler Finance B.V. 4.25%, due 5/15/21 (d)		21,610,000		21,718,050
4.75%, due 5/15/21 (d)		32,944,000		33,520,520
4.75%, due 5/15/23 (d)		17,195,000		17,323,962
¨Schaeffler Holding Finance B.V. 6.25%, due 11/15/19 (a)(d)		25,681,000		27,093,455
6.75%, due 11/15/22 (a)(d)		44,360,000		48,463,300
6.875%, due 8/15/18 (a)(d)		61,402,000		63,551,070
Tenneco, Inc. 6.875%, due 12/15/20		11,225,000		11,603,844

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings or issuers held, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Auto Parts & Equipment (continued)
Titan International, Inc. 6.875%, due 10/1/20	$	4,442,000	$	3,753,490
ZF North America Capital, Inc. 4.50%, due 4/29/22 (d)		5,000,000		5,034,350
4.75%, due 4/29/25 (d)		14,025,000		13,762,031
				337,544,171
Banks 0.1%
Provident Funding Associates, L.P. / PFG Finance Corp. 6.75%, due 6/15/21 (d)		8,950,000		8,592,000
Beverages 0.1%
Constellation Brands, Inc. 3.875%, due 11/15/19		3,000,000		3,120,000
4.75%, due 11/15/24		2,498,000		2,616,655
				5,736,655
Biotechnology 0.1%
AMAG Pharmaceuticals, Inc. 7.875%, due 9/1/23 (d)		14,565,000		13,581,863
Building Materials 1.4%
Boise Cascade Co. 6.375%, due 11/1/20		26,940,000		27,882,900
Gibraltar Industries, Inc. 6.25%, due 2/1/21		12,580,000		12,957,400
Griffon Corp. 5.25%, due 3/1/22		12,710,000		12,487,575
Headwaters, Inc. 7.25%, due 1/15/19		21,700,000		22,459,500
Masonite International Corp. 5.625%, due 3/15/23 (d)		5,815,000		6,076,675
Summit Materials LLC / Summit Materials Finance Corp. 6.125%, due 7/15/23		15,710,000		15,631,450
10.50%, due 1/31/20		17,826,000		18,895,560
USG Corp. 7.875%, due 3/30/20 (d)		15,895,000		16,769,225
				133,160,285
Chemicals 1.6%
A. Schulman, Inc. 6.875%, due 6/1/23 (d)		14,805,000		14,693,962
Axiall Corp. 4.875%, due 5/15/23		8,833,000		8,396,871
Blue Cube Spinco, Inc. 9.75%, due 10/15/23 (d)		34,850,000		37,550,875
10.00%, due 10/15/25 (d)		19,250,000		20,886,250
Eagle Spinco, Inc. 4.625%, due 2/15/21		7,014,000		6,829,883

	Principal Amount		Value
Chemicals (continued)
Kraton Polymers LLC / Kraton Polymers Capital Corp. 6.75%, due 3/1/19	$	20,675,000	$	20,985,125
Olin Corp. 5.50%, due 8/15/22		15,084,000		14,103,540
PolyOne Corp. 5.25%, due 3/15/23		25,966,000		26,030,915
7.375%, due 9/15/20		946,000		986,110
				150,463,531
Coal 0.5%
Arch Coal, Inc. 8.00%, due 1/15/19 (d)		21,960,000		1,152,900
CONSOL Energy, Inc. 5.875%, due 4/15/22		62,260,000		39,379,450
8.00%, due 4/1/23 (d)		5,855,000		4,083,863
Peabody Energy Corp. 6.00%, due 11/15/18		11,415,000		1,997,625
6.25%, due 11/15/21		4,720,000		625,400
6.50%, due 9/15/20		8,000,000		1,060,000
10.00%, due 3/15/22 (d)		1,600,000		432,000
				48,731,238
Commercial Services 2.6%
Ashtead Capital, Inc. 5.625%, due 10/1/24 (d)		2,000,000		2,080,000
6.50%, due 7/15/22 (d)		24,862,000		26,664,495
Avis Budget Car Rental LLC / Avis Budget Finance, Inc. 5.25%, due 3/15/25 (d)		14,510,000		14,455,587
5.50%, due 4/1/23		35,196,000		36,471,855
Cimpress N.V. 7.00%, due 4/1/22 (d)		37,800,000		38,083,500
ExamWorks Group, Inc. 5.625%, due 4/15/23		15,745,000		16,374,800
Great Lakes Dredge & Dock Corp. 7.375%, due 2/1/19		40,486,000		39,271,420
7.375%, due 2/1/19 (d)		6,115,000		5,931,550
Hertz Corp. (The) 4.25%, due 4/1/18		2,165,000		2,192,063
Jaguar Holding Co. II / Pharmaceutical Product Development LLC 6.375%, due 8/1/23 (d)		3,000,000		3,003,750
Modular Space Corp. 10.25%, due 1/31/19 (d)		4,270,000		2,551,325
Speedy Cash Intermediate Holdings Corp. 10.75%, due 5/15/18 (d)		12,414,000		8,938,080
United Rentals North America, Inc. 4.625%, due 7/15/23		8,900,000		8,938,893
7.625%, due 4/15/22		18,417,000		19,984,471
8.25%, due 2/1/21		500,000		526,250
WEX, Inc. 4.75%, due 2/1/23 (d)		20,568,000		19,231,080
				244,699,119

12 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Corporate Bonds (continued)
Computers 1.6%
IHS, Inc. 5.00%, due 11/1/22	$	56,655,000	$	57,221,550
NCR Corp. 4.625%, due 2/15/21		13,235,000		13,069,563
5.00%, due 7/15/22		18,900,000		18,569,250
5.875%, due 12/15/21		4,000,000		4,040,000
6.375%, due 12/15/23		35,665,000		36,734,950
Seagate HDD Cayman 4.75%, due 6/1/23		26,180,000		24,291,610
				153,926,923
Cosmetics & Personal Care 0.6%
Edgewell Personal Care Co. 4.70%, due 5/19/21		40,105,000		41,339,552
4.70%, due 5/24/22		8,083,000		8,276,992
First Quality Finance Co., Inc. 4.625%, due 5/15/21 (d)		4,800,000		4,452,000
				54,068,544
Distribution & Wholesale 0.5%
American Tire Distributors, Inc. 10.25%, due 3/1/22 (d)		21,355,000		21,568,550
H&E Equipment Services, Inc. 7.00%, due 9/1/22		6,200,000		6,293,000
LKQ Corp. 4.75%, due 5/15/23		18,980,000		18,647,850
				46,509,400
Diversified Financial Services 0.1%
Community Choice Financial, Inc. 10.75%, due 5/1/19		14,845,000		4,601,950
12.75%, due 5/1/20 (b)(d)		9,500,000		2,660,000
				7,261,950
Electric 1.7%
Calpine Corp. 5.875%, due 1/15/24 (d)		17,041,000		17,807,845
6.00%, due 1/15/22 (d)		34,543,000		36,304,693
¨GenOn Energy, Inc. 7.875%, due 6/15/17		63,317,000		58,726,518
9.50%, due 10/15/18		21,125,000		18,590,000
NRG REMA LLC Series C 9.681%, due 7/2/26		20,225,000		20,326,125
Public Service Co. of New Mexico 7.95%, due 5/15/18		2,927,000		3,312,752
				155,067,933
Electrical Components & Equipment 1.3%
Anixter, Inc. 5.125%, due 10/1/21		2,570,000		2,631,037
5.50%, due 3/1/23 (d)		2,500,000		2,581,250
5.625%, due 5/1/19		8,110,000		8,576,325

	Principal Amount		Value
Electrical Components & Equipment (continued)
Belden, Inc. 5.25%, due 7/15/24 (d)	$	3,000,000	$	2,805,000
5.50%, due 9/1/22 (d)		45,757,000		45,299,430
General Cable Corp. 5.75%, due 10/1/22		44,660,000		38,519,250
WESCO Distribution, Inc. 5.375%, due 12/15/21		22,414,000		21,685,545
				122,097,837
Electronics 0.4%
Allegion PLC 5.875%, due 9/15/23		12,500,000		13,093,750
Kemet Corp. 10.50%, due 5/1/18		27,014,000		24,380,135
				37,473,885
Engineering & Construction 1.3%
AECOM 5.875%, due 10/15/24 (d)		11,485,000		11,858,263
New Enterprise Stone & Lime Co., Inc. 11.00%, due 9/1/18		29,975,000		25,478,750
13.00%, due 3/15/18 (a)		30,405,776		31,622,007
Transfield Services, Ltd. 8.375%, due 5/15/20 (d)		27,490,000		28,039,800
Weekley Homes LLC / Weekley Finance Corp. 6.00%, due 2/1/23		25,099,000		24,095,040
				121,093,860
Entertainment 1.7%
Affinity Gaming / Affinity Gaming Finance Corp. 9.00%, due 5/15/18		49,520,000		50,015,200
Churchill Downs, Inc. 5.375%, due 12/15/21		22,605,000		23,170,125
GLP Capital, L.P. / GLP Financing II, Inc. 4.375%, due 11/1/18		3,500,000		3,622,500
4.875%, due 11/1/20		8,000,000		8,240,000
5.375%, due 11/1/23		3,500,000		3,533,670
NAI Entertainment Holdings / NAI Entertainment Holdings Finance Corp. 5.00%, due 8/1/18 (d)		17,990,000		18,574,675
Rivers Pittsburgh Borrower, L.P. / Rivers Pittsburgh Finance Corp. 9.50%, due 6/15/19 (d)		12,872,000		13,386,880
Sterling Entertainment Enterprises LLC 9.75%, due 12/31/19 (b)(c)(e)		35,000,000		36,312,500
				156,855,550
Finance—Auto Loans 0.2%
Ally Financial, Inc. 3.25%, due 2/13/18		1,000,000		1,005,000

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Finance—Auto Loans (continued)
Credit Acceptance Corp. 7.375%, due 3/15/23 (d)	$	12,825,000	$	13,273,875
				14,278,875
Finance—Consumer Loans 0.2%
OneMain Financial Holdings, Inc. 6.75%, due 12/15/19 (d)		7,645,000		8,113,256
TMX Finance LLC / TitleMax Finance Corp. 8.50%, due 9/15/18 (d)		10,075,000		7,908,875
				16,022,131
Finance—Credit Card 0.5%
Alliance Data Systems Corp. 5.25%, due 12/1/17 (d)		12,590,000		12,967,700
5.375%, due 8/1/22 (d)		13,415,000		13,616,225
6.375%, due 4/1/20 (d)		14,980,000		15,466,850
				42,050,775
Finance—Investment Banker/Broker 0.6%
E*TRADE Financial Corp. 4.625%, due 9/15/23		17,500,000		18,068,750
5.375%, due 11/15/22		20,880,000		22,324,854
KCG Holdings, Inc. 6.875%, due 3/15/20 (d)		20,260,000		19,247,000
				59,640,604
Finance—Leasing Companies 0.4%
AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust 4.625%, due 10/30/20		9,240,000		9,574,950
5.00%, due 10/1/21		16,320,000		17,054,400
Aircastle, Ltd. 5.50%, due 2/15/22		8,295,000		8,771,963
				35,401,313
Finance—Mortgage Loan/Banker 0.4%
Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp. 5.875%, due 8/1/21 (d)		20,530,000		19,195,550
7.375%, due 10/1/17		14,635,000		14,708,175
				33,903,725
Finance—Other Services 0.9%
Cantor Commercial Real Estate Co., L.P. / CCRE Finance Corp. 7.75%, due 2/15/18 (d)		25,340,000		26,416,950
Cogent Communications Finance, Inc. 5.625%, due 4/15/21 (d)		38,970,000		36,924,075
Nationstar Mortgage LLC / Nationstar Capital Corp. 6.50%, due 8/1/18		12,000,000		11,775,000
7.875%, due 10/1/20		9,000,000		8,865,000
				83,981,025

	Principal Amount		Value
Food 1.8%
B&G Foods, Inc. 4.625%, due 6/1/21	$	29,259,000	$	29,149,279
C&S Group Enterprises LLC 5.375%, due 7/15/22 (d)		50,865,000		46,541,475
Ingles Markets, Inc. 5.75%, due 6/15/23		14,100,000		14,382,000
KeHE Distributors LLC / KeHE Finance Corp. 7.625%, due 8/15/21 (d)		18,120,000		19,116,600
Land O’ Lakes, Inc. 6.00%, due 11/15/22 (d)		31,495,000		33,778,387
Wells Enterprises, Inc. 6.75%, due 2/1/20 (d)		21,607,000		22,363,245
				165,330,986
Forest Products & Paper 1.0%
Georgia-Pacific LLC 8.875%, due 5/15/31		19,841,000		28,401,479
Smurfit Kappa Treasury Funding, Ltd. 7.50%, due 11/20/25		51,820,000		63,220,400
				91,621,879
Gas 0.2%
AmeriGas Partners, L.P. / AmeriGas Finance Corp. 6.25%, due 8/20/19		13,025,000		13,318,063
6.50%, due 5/20/21		4,000,000		4,130,000
				17,448,063
Health Care—Products 1.3%
Alere, Inc. 6.375%, due 7/1/23 (d)		13,250,000		13,780,000
ConvaTec Healthcare E S.A. 10.50%, due 12/15/18 (d)		23,509,000		24,302,429
Halyard Health, Inc. 6.25%, due 10/15/22		13,331,000		13,630,948
Hanger, Inc. 7.125%, due 11/15/18		13,535,000		12,452,200
Hill-Rom Holdings, Inc. 5.75%, due 9/1/23 (d)		14,525,000		14,815,500
Hologic, Inc. 5.25%, due 7/15/22 (d)		12,715,000		13,271,281
Sterigenics-Nordion Holdings LLC 6.50%, due 5/15/23 (d)		11,120,000		11,189,500
Universal Hospital Services, Inc. 7.625%, due 8/15/20		21,710,000		20,705,912
				124,147,770
Health Care—Services 3.1%
Acadia Healthcare Co., Inc. 5.625%, due 2/15/23 (d)		3,500,000		3,504,375
5.625%, due 2/15/23		3,485,000		3,489,356
Centene Corp. 5.75%, due 6/1/17		14,370,000		14,980,725

14 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Corporate Bonds (continued)
Health Care—Services (continued)
Fresenius Medical Care U.S. Finance II, Inc. 5.625%, due 7/31/19 (d)	$	11,680,000	$	12,702,000
5.875%, due 1/31/22 (d)		8,100,000		8,829,000
6.50%, due 9/15/18 (d)		4,730,000		5,191,175
Fresenius Medical Care U.S. Finance, Inc. 6.875%, due 7/15/17		130,000		139,750
HCA Holdings, Inc. 6.25%, due 2/15/21		2,375,000		2,594,688
¨HCA, Inc. 4.25%, due 10/15/19		7,890,000		8,126,305
5.00%, due 3/15/24		14,944,000		15,392,320
5.25%, due 4/15/25		16,490,000		17,067,150
5.375%, due 2/1/25		22,495,000		23,085,494
5.875%, due 3/15/22		14,855,000		16,340,500
5.875%, due 5/1/23		6,843,000		7,253,580
6.50%, due 2/15/16		2,000,000		2,026,000
6.50%, due 2/15/20		3,294,000		3,685,163
7.50%, due 2/15/22		9,407,000		10,818,050
7.58%, due 9/15/25		1,920,000		2,092,800
7.69%, due 6/15/25		705,000		779,025
8.00%, due 10/1/18		4,984,000		5,650,610
8.36%, due 4/15/24		2,494,000		2,930,450
HealthSouth Corp. 5.75%, due 11/1/24		11,105,000		11,105,000
5.75%, due 11/1/24 (d)		2,240,000		2,240,000
MPH Acquisition Holdings LLC 6.625%, due 4/1/22 (d)		60,908,000		62,126,160
Tenet Healthcare Corp. 3.837%, due 6/15/20 (d)(f)		9,000,000		8,932,500
6.00%, due 10/1/20		15,000,000		16,200,000
6.75%, due 6/15/23		21,505,000		21,343,712
				288,625,888
Holding Companies—Diversified 1.7%
Alphabet Holding Co., Inc. 7.75%, due 11/1/17 (a)		53,779,000		52,837,867
Carlson Travel Holdings, Inc. 7.50%, due 8/15/19 (a)(d)		65,436,000		65,763,180
CFG Holdings, Ltd. / CFG Finance LLC 11.50%, due 11/15/19 (d)		25,895,000		25,441,838
James Hardie International Finance, Ltd. 5.875%, due 2/15/23 (d)		13,835,000		14,319,225
Nielsen Co. Luxembourg S.A.R.L. (The) 5.50%, due 10/1/21 (d)		4,500,000		4,663,125
				163,025,235

	Principal Amount		Value
Home Builders 2.6%
Allegion U.S. Holding Co., Inc. 5.75%, due 10/1/21	$	19,800,000	$	20,790,000
Ashton Woods USA LLC / Ashton Woods Finance Co. 6.875%, due 2/15/21 (d)		28,985,000		26,811,125
AV Homes, Inc. 8.50%, due 7/1/19		24,860,000		24,860,000
Brookfield Residential Properties, Inc. 6.375%, due 5/15/25 (d)		5,665,000		5,438,400
6.50%, due 12/15/20 (d)		11,305,000		11,333,262
Brookfield Residential Properties, Inc. / Brookfield Residential U.S. Corp. 6.125%, due 7/1/22 (d)		29,141,000		28,631,032
CalAtlantic Group, Inc. 5.375%, due 10/1/22		1,119,000		1,141,380
6.25%, due 12/15/21		10,330,000		11,182,225
6.625%, due 5/1/20		2,897,000		3,208,428
Century Communities, Inc. 6.875%, due 5/15/22		25,336,000		23,834,386
D.R. Horton, Inc. 4.75%, due 2/15/23		4,710,000		4,839,525
5.75%, due 8/15/23		3,605,000		3,938,463
Mattamy Group Corp. 6.50%, due 11/15/20 (d)		36,862,000		36,286,031
Meritage Homes Corp. 7.00%, due 4/1/22		1,500,000		1,642,500
Taylor Morrison Communities, Inc. / Monarch Communities, Inc. 5.25%, due 4/15/21 (d)		5,500,000		5,541,250
Toll Brothers Finance Corp. 4.375%, due 4/15/23		2,500,000		2,484,375
WCI Communities, Inc. 6.875%, due 8/15/21		12,355,000		12,972,750
Woodside Homes Co. LLC / Woodside Homes Finance, Inc. 6.75%, due 12/15/21 (d)		21,521,000		20,014,530
				244,949,662
Household Products & Wares 0.6%
Century Intermediate Holding Co. 2 9.75%, due 2/15/19 (a)(d)		10,120,000		10,461,550
Prestige Brands, Inc. 5.375%, due 12/15/21 (d)		12,996,000		12,996,000
Spectrum Brands, Inc. 5.75%, due 7/15/25 (d)		17,718,000		18,891,817
6.375%, due 11/15/20		6,435,000		6,869,363
6.625%, due 11/15/22		7,535,000		8,231,988
				57,450,718
Housewares 0.4%
American Greetings Corp. 7.375%, due 12/1/21		10,500,000		11,051,250

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Housewares (continued)
RSI Home Products, Inc. 6.50%, due 3/15/23 (d)	$	17,290,000	$	17,851,925
Scotts Miracle-Gro Co. (The) 6.00%, due 10/15/23 (d)		8,990,000		9,461,975
				38,365,150
Insurance 1.4%
American Equity Investment Life Holding Co. 6.625%, due 7/15/21		27,660,000		29,319,600
CNO Financial Group, Inc. 4.50%, due 5/30/20		3,350,000		3,484,000
5.25%, due 5/30/25		3,385,000		3,596,562
Fairfax Financial Holdings, Ltd. 7.375%, due 4/15/18		9,497,000		10,450,803
8.30%, due 4/15/26		5,395,000		6,705,829
Fidelity & Guaranty Life Holdings, Inc. 6.375%, due 4/1/21 (d)		29,513,000		31,062,432
Ironshore Holdings (U.S.), Inc. 8.50%, due 5/15/20 (d)		13,890,000		16,186,517
USI, Inc. 7.75%, due 1/15/21 (d)		29,460,000		29,460,000
				130,265,743
Internet 1.4%
Cogent Communications Group, Inc. 5.375%, due 3/1/22 (d)		3,600,000		3,546,000
IAC / InterActiveCorp. 4.75%, due 12/15/22		67,124,000		63,096,560
4.875%, due 11/30/18		2,243,000		2,304,683
Netflix, Inc. 5.375%, due 2/1/21		10,580,000		11,175,125
5.50%, due 2/15/22 (d)		21,925,000		23,130,875
5.75%, due 3/1/24		12,966,000		13,730,864
5.875%, due 2/15/25 (d)		5,546,000		5,864,895
VeriSign, Inc. 5.25%, due 4/1/25		9,800,000		9,996,000
				132,845,002
Investment Company 0.4%
American Capital, Ltd. 6.50%, due 9/15/18 (d)		33,330,000		34,413,225
Investment Management/Advisory Services 0.6%
Drawbridge Special Opportunities Fund, L.P. / Drawbridge Special Opportunities Finance 5.00%, due 8/1/21 (d)		29,020,000		28,439,600
National Financial Partners Corp. 9.00%, due 7/15/21 (d)		24,082,000		23,600,360
				52,039,960

	Principal Amount		Value
Iron & Steel 1.2%
Allegheny Ludlum Corp. 6.95%, due 12/15/25	$	6,860,000	$	6,319,775
Allegheny Technologies, Inc. 7.375%, due 8/15/23		21,000,000		17,850,000
BlueScope Steel Finance, Ltd. / BlueScope Steel Finance USA LLC 7.125%, due 5/1/18 (d)		37,467,000		36,904,995
Cliffs Natural Resources, Inc. 8.25%, due 3/31/20 (d)		22,055,000		19,739,225
Commercial Metals Co. 4.875%, due 5/15/23		6,866,000		6,076,410
Evraz, Inc. N.A. 7.50%, due 11/15/19 (d)		22,270,000		21,212,175
				108,102,580
Leisure Time 1.0%
Brunswick Corp. 4.625%, due 5/15/21 (d)		19,791,000		20,038,387
Carlson Wagonlit B.V. 6.875%, due 6/15/19 (d)		71,625,000		75,116,719
				95,155,106
Lodging 0.6%
Choice Hotels International, Inc. 5.70%, due 8/28/20		2,000,000		2,147,400
5.75%, due 7/1/22		20,500,000		21,986,250
FelCor Lodging, L.P. 5.625%, due 3/1/23		13,307,000		13,772,745
Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp. 5.625%, due 10/15/21		20,930,000		21,906,803
				59,813,198
Machinery—Construction & Mining 0.3%
BlueLine Rental Finance Corp. 7.00%, due 2/1/19 (d)		18,325,000		18,485,344
Oshkosh Corp. 5.375%, due 3/1/25		8,535,000		8,577,675
Vander Intermediate Holding II Corp. 9.75%, due 2/1/19 (a)(d)		1,740,000		1,505,100
				28,568,119
Machinery—Diversified 0.2%
Briggs & Stratton Corp. 6.875%, due 12/15/20		8,945,000		9,772,413
Zebra Technologies Corp. 7.25%, due 10/15/22		11,165,000		12,183,806
				21,956,219
Media 5.8%
Altice U.S. Finance I Corp. 5.375%, due 7/15/23 (d)		34,500,000		34,914,000
Cablevision Systems Corp. 7.75%, due 4/15/18		25,870,000		27,163,500

16 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Corporate Bonds (continued)
Media (continued)
¨CCO Holdings LLC / CCO Holdings Capital Corp. 5.125%, due 2/15/23	$	23,000,000	$	23,057,500
5.125%, due 5/1/23 (d)		19,528,000		19,576,820
5.25%, due 9/30/22		3,000,000		3,038,718
5.375%, due 5/1/25 (d)		15,335,000		15,181,650
5.75%, due 1/15/24		1,598,000		1,621,970
5.875%, due 5/1/27 (d)		13,195,000		13,195,000
6.50%, due 4/30/21		26,527,000		27,836,771
7.00%, due 1/15/19		8,657,000		8,895,068
CCO Safari II LLC 3.579%, due 7/23/20 (d)		4,000,000		4,015,000
4.464%, due 7/23/22 (d)		6,165,000		6,254,380
Cogeco Cable, Inc. 4.875%, due 5/1/20 (d)		22,360,000		22,695,400
CSC Holdings LLC 7.625%, due 7/15/18		13,740,000		14,581,575
DISH DBS Corp. 4.625%, due 7/15/17		6,000,000		6,165,000
5.125%, due 5/1/20		3,040,000		3,028,600
5.875%, due 7/15/22		7,525,000		7,374,500
5.875%, due 11/15/24		12,210,000		11,678,865
Midcontinent Communications & Midcontinent Finance Corp. 6.25%, due 8/1/21 (d)		1,035,000		1,071,225
6.875%, due 8/15/23 (d)		2,000,000		2,052,500
Neptune Finco Corp. 10.125%, due 1/15/23 (d)		30,685,000		32,449,387
¨Nielsen Finance LLC / Nielsen Finance Co. 4.50%, due 10/1/20		14,665,000		15,082,219
5.00%, due 4/15/22 (d)		80,960,000		82,275,600
Numericable-SFR 4.875%, due 5/15/19 (d)		6,000,000		6,030,000
6.00%, due 5/15/22 (d)		47,825,000		47,944,562
Quebecor Media, Inc. 5.75%, due 1/15/23		51,150,000		52,428,750
Videotron, Ltd. 5.00%, due 7/15/22		21,754,000		22,705,738
5.375%, due 6/15/24 (d)		29,920,000		30,742,800
				543,057,098
Metal Fabricate & Hardware 1.0%
A.M. Castle & Co. 12.75%, due 12/15/16		28,261,000		23,315,325
Optimas OE Solutions Holding LLC / Optimas OE Solutions, Inc. 8.625%, due 6/1/21 (d)		17,235,000		16,373,250
Wise Metals Group LLC / Wise Alloys Finance Corp. 8.75%, due 12/15/18 (d)		56,470,000		53,364,150
				93,052,725

	Principal Amount		Value
Mining 2.6%
Alamos Gold, Inc. 7.75%, due 4/1/20 (d)	$	43,485,000	$	41,123,764
Constellium N.V. 5.75%, due 5/15/24 (d)		26,000,000		18,720,000
First Quantum Minerals, Ltd. 7.25%, due 10/15/19 (d)		22,235,000		17,343,300
Hecla Mining Co. 6.875%, due 5/1/21		46,053,000		39,145,050
Kaiser Aluminum Corp. 8.25%, due 6/1/20		25,000,000		26,687,500
New Gold, Inc. 6.25%, due 11/15/22 (d)		24,995,000		21,433,213
7.00%, due 4/15/20 (d)		39,288,000		36,636,060
Petra Diamonds U.S. Treasury PLC 8.25%, due 5/31/20 (d)		19,480,000		17,804,720
St. Barbara, Ltd. 8.875%, due 4/15/18 (d)		22,325,000		21,208,750
				240,102,357
Miscellaneous—Manufacturing 1.3%
Actuant Corp. 5.625%, due 6/15/22		4,000,000		4,025,000
Amsted Industries, Inc. 5.00%, due 3/15/22 (d)		18,225,000		18,407,250
CTP Transportation Products LLC / CTP Finance, Inc. 8.25%, due 12/15/19 (d)		21,845,000		23,264,925
EnPro Industries, Inc. 5.875%, due 9/15/22		14,325,000		14,432,437
Gates Global LLC / Gates Global Co. 6.00%, due 7/15/22 (d)		19,254,000		15,451,335
Koppers, Inc. 7.875%, due 12/1/19		15,864,000		15,864,000
SPX FLOW, Inc. 6.875%, due 9/1/17		16,960,000		17,977,600
Trinseo Materials Operating SCA / Trinseo Materials Finance, Inc. 6.75%, due 5/1/22 (d)		14,090,000		14,125,225
				123,547,772
Oil & Gas 8.5%
Antero Resources Corp. 5.125%, due 12/1/22		5,000,000		4,487,500
5.375%, due 11/1/21		10,000,000		9,200,000
Atlas Energy Holdings Operating Co. LLC / Atlas Resource Finance Corp. 7.75%, due 1/15/21		2,815,000		1,154,150
9.25%, due 8/15/21		10,705,000		4,389,050
California Resources Corp. 5.00%, due 1/15/20		49,637,000		36,110,917
Calumet Specialty Products Partners, L.P. / Calumet Finance Corp. 6.50%, due 4/15/21		48,915,000		45,490,950

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Oil & Gas (continued)
Calumet Specialty Products Partners, L.P. / Calumet Finance Corp. (continued)
7.625%, due 1/15/22	$	21,180,000	$	20,438,700
7.75%, due 4/15/23 (d)		4,840,000		4,598,000
Carrizo Oil & Gas, Inc. 6.25%, due 4/15/23		8,930,000		8,494,663
7.50%, due 9/15/20		13,920,000		13,885,200
Chesapeake Energy Corp. 6.50%, due 8/15/17		4,715,000		4,331,906
Chesapeake Energy Corp. (Escrow Claim Shares) 6.775%, due 3/15/19 (b)(c)(e)		15,000,000		3,900,000
Comstock Resources, Inc. 7.75%, due 4/1/19		28,693,000		6,025,530
9.50%, due 6/15/20		34,016,000		7,483,520
10.00%, due 3/15/20 (d)		41,160,000		26,856,900
Concho Resources, Inc. 5.50%, due 10/1/22		9,320,000		9,354,950
6.50%, due 1/15/22		24,386,000		25,269,993
7.00%, due 1/15/21		10,325,000		10,660,563
Continental Resources, Inc. 5.00%, due 9/15/22		2,000,000		1,797,500
7.125%, due 4/1/21		6,000,000		6,219,000
7.375%, due 10/1/20		15,775,000		16,169,375
EnQuest PLC 7.00%, due 4/15/22 (d)		40,738,000		25,257,560
Gulfport Energy Corp. 6.625%, due 5/1/23		2,000,000		1,830,000
7.75%, due 11/1/20		13,921,000		13,781,790
Halcon Resources Corp. 8.625%, due 2/1/20 (d)		32,245,000		27,811,312
Jones Energy Holdings LLC / Jones Energy Finance Corp. 6.75%, due 4/1/22		32,905,000		26,406,262
LINN Energy LLC / LINN Energy Finance Corp. 6.25%, due 11/1/19		11,895,000		2,795,325
6.50%, due 5/15/19		15,540,000		4,040,400
8.625%, due 4/15/20		10,430,000		2,711,800
Murphy Oil USA, Inc. 6.00%, due 8/15/23		21,820,000		23,020,100
Newfield Exploration Co. 5.625%, due 7/1/24		17,210,000		17,037,900
Noble Energy, Inc. 5.625%, due 5/1/21		8,280,000		8,395,837
5.875%, due 6/1/22		17,560,000		17,687,784
Oasis Petroleum, Inc. 6.50%, due 11/1/21		14,068,000		11,992,970
6.875%, due 1/15/23		5,000,000		4,325,000
7.25%, due 2/1/19		42,972,000		41,038,260

	Principal Amount		Value
Oil & Gas (continued)
PDC Energy, Inc. 7.75%, due 10/15/22	$	27,545,000	$	27,682,725
PetroQuest Energy, Inc. 10.00%, due 9/1/17		60,090,000		52,278,300
Rex Energy Corp. 6.25%, due 8/1/22		20,540,000		8,421,400
8.875%, due 12/1/20		45,240,000		22,620,000
RSP Permian, Inc. 6.625%, due 10/1/22		17,780,000		17,602,200
Sanchez Energy Corp. 6.125%, due 1/15/23		12,474,000		9,043,650
7.75%, due 6/15/21		4,055,000		3,223,725
SM Energy Co. 5.00%, due 1/15/24		9,940,000		8,921,150
6.125%, due 11/15/22		6,954,000		6,745,380
6.50%, due 11/15/21		7,000,000		6,895,000
6.50%, due 1/1/23		2,535,000		2,497,979
Stone Energy Corp. 7.50%, due 11/15/22		79,053,000		50,989,185
Summit Midstream Holdings LLC / Summit Midstream Finance Corp. 7.50%, due 7/1/21		14,140,000		13,715,800
W&T Offshore, Inc. 8.50%, due 6/15/19		6,800,000		3,060,000
Whiting Petroleum Corp. 5.00%, due 3/15/19		2,000,000		1,900,000
6.25%, due 4/1/23		5,000,000		4,650,000
6.50%, due 10/1/18		13,720,000		13,136,900
WPX Energy, Inc. 6.00%, due 1/15/22		37,300,000		32,824,000
7.50%, due 8/1/20		12,955,000		12,112,925
				792,770,986
Oil & Gas Services 0.5%
CSI Compressco, L.P. / Compressco Finance, Inc. 7.25%, due 8/15/22		16,295,000		13,524,850
Forum Energy Technologies, Inc. 6.25%, due 10/1/21		30,445,000		25,497,688
FTS International, Inc. 6.25%, due 5/1/22		21,340,000		4,908,200
7.837%, due 6/15/20 (d)(f)		10,125,000		7,037,219
				50,967,957
Packaging & Containers 0.9%
AEP Industries, Inc. 8.25%, due 4/15/19		18,194,000		18,739,820
Novelis, Inc. 8.375%, due 12/15/17		26,275,000		26,472,062
8.75%, due 12/15/20		19,470,000		19,518,675
Plastipak Holdings, Inc. 6.50%, due 10/1/21 (d)		16,925,000		16,755,750

18 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Corporate Bonds (continued)
Packaging & Containers (continued)
Silgan Holdings, Inc. 5.00%, due 4/1/20	$	4,000,000	$	4,080,000
				85,566,307
Pharmaceuticals 2.4%
DPx Holdings B.V. 7.50%, due 2/1/22 (d)		19,905,000		20,303,100
Endo Finance LLC 5.75%, due 1/15/22 (d)		2,300,000		2,248,250
Endo Finance LLC / Endo Finco, Inc. 5.375%, due 1/15/23 (d)		7,300,000		7,159,110
Endo Ltd. / Endo Finance LLC / Endo Finco, Inc. 6.00%, due 7/15/23 (d)		14,965,000		14,965,000
6.00%, due 2/1/25 (d)		13,945,000		13,840,413
Grifols Worldwide Operations, Ltd. 5.25%, due 4/1/22		9,626,000		9,962,910
NBTY, Inc. 9.00%, due 10/1/18		20,200,000		20,679,750
Quintiles Transnational Corp. 4.875%, due 5/15/23 (d)		15,575,000		16,012,969
¨Valeant Pharmaceuticals International, Inc. 5.875%, due 5/15/23 (d)		14,940,000		12,577,613
6.125%, due 4/15/25 (d)		33,290,000		28,005,212
6.375%, due 10/15/20 (d)		28,284,000		25,314,180
6.75%, due 8/15/18 (d)		20,775,000		20,049,952
7.00%, due 10/1/20 (d)		2,548,000		2,356,900
7.50%, due 7/15/21 (d)		30,760,000		28,068,500
				221,543,859
Pipelines 2.0%
ANR Pipeline Co. 7.375%, due 2/15/24		2,555,000		3,040,097
9.625%, due 11/1/21		10,349,000		13,669,384
Copano Energy LLC / Copano Energy Finance Corp. 7.125%, due 4/1/21		11,307,000		11,772,769
Genesis Energy, L.P. / Genesis Energy Finance Corp. 6.75%, due 8/1/22		24,110,000		23,507,250
Hiland Partners, L.P. / Hiland Partners Finance Corp. 7.25%, due 10/1/20 (d)		12,375,000		12,931,875
MarkWest Energy Partners, L.P. / MarkWest Energy Finance Corp. 4.875%, due 6/1/25		26,295,000		24,585,825
5.50%, due 2/15/23		5,560,000		5,476,600
NuStar Logistics, L.P. 6.75%, due 2/1/21		10,295,000		10,706,800

	Principal Amount		Value
Pipelines (continued)
Targa Resources Partners, L.P. / Targa Resources Partners Finance Corp. 5.00%, due 1/15/18 (d)	$	11,500,000	$	11,327,500
6.625%, due 10/1/20 (d)		44,686,000		44,350,855
Tesoro Logistics, L.P. / Tesoro Logistics Finance Corp. 5.50%, due 10/15/19 (d)		8,556,000		8,855,460
6.25%, due 10/15/22 (d)		10,655,000		11,081,200
Williams Partners, L.P. / ACMP Finance Corp. 6.125%, due 7/15/22		7,284,000		7,456,099
				188,761,714
Real Estate 1.6%
AAF Holdings LLC / AAF Finance Co. 12.00%, due 7/1/19 (a)(d)		32,276,585		33,809,723
CBRE Services, Inc. 5.00%, due 3/15/23		32,487,000		32,998,183
5.25%, due 3/15/25		9,580,000		9,745,456
Crescent Resources LLC / Crescent Ventures, Inc. 10.25%, due 8/15/17 (d)		6,740,000		6,841,100
Forestar USA Real Estate Group, Inc. 8.50%, due 6/1/22 (d)		13,000,000		13,195,000
Howard Hughes Corp. (The) 6.875%, due 10/1/21 (d)		20,385,000		21,200,400
Rialto Holdings LLC / Rialto Corp. 7.00%, due 12/1/18 (d)		30,115,000		30,867,875
				148,657,737
Real Estate Investment Trusts 3.0%
¨Crown Castle International Corp. 4.875%, due 4/15/22		8,995,000		9,523,456
5.25%, due 1/15/23		101,468,000		109,204,935
DuPont Fabros Technology, L.P. 5.625%, due 6/15/23		17,000,000		17,467,500
Equinix, Inc. 5.375%, due 1/1/22		17,368,000		18,144,350
5.375%, due 4/1/23		22,720,000		23,628,800
5.75%, due 1/1/25		26,337,000		27,456,322
GEO Group, Inc. (The) 6.625%, due 2/15/21		18,300,000		18,940,500
Host Hotels & Resorts, L.P. 5.25%, due 3/15/22		7,000,000		7,516,656
6.00%, due 10/1/21		17,625,000		19,664,160
MPT Operating Partnership, L.P. / MPT Finance Corp. 5.50%, due 5/1/24		8,961,000		9,140,220
Sabra Health Care, L.P. / Sabra Capital Corp. 5.375%, due 6/1/23		5,570,000		5,785,838
5.50%, due 2/1/21		13,635,000		14,244,484
				280,717,221

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Retail 4.8%
AmeriGas Finance LLC / AmeriGas Finance Corp. 6.75%, due 5/20/20	$	8,220,000	$	8,517,975
7.00%, due 5/20/22		9,697,000		10,230,335
Asbury Automotive Group, Inc. 6.00%, due 12/15/24 (d)		7,365,000		7,788,488
6.00%, due 12/15/24		20,673,000		21,861,697
AutoNation, Inc. 6.75%, due 4/15/18		11,000,000		12,181,972
Building Materials Holding Corp. 9.00%, due 9/15/18 (d)		19,420,000		20,573,548
Cash America International, Inc. 5.75%, due 5/15/18		14,455,000		14,563,413
CVS Health Corp. 4.75%, due 12/1/22 (d)		9,335,000		10,174,898
5.00%, due 12/1/24 (d)		6,500,000		7,219,869
Dollar Tree, Inc. 5.75%, due 3/1/23 (d)		38,630,000		40,706,362
DriveTime Automotive Group, Inc. / DT Acceptance Corp. 8.00%, due 6/1/21 (d)		23,189,000		21,565,770
Ferrellgas, L.P. / Ferrellgas Finance Corp. 6.75%, due 6/15/23 (d)		15,865,000		14,635,463
GameStop Corp. 5.50%, due 10/1/19 (d)		10,225,000		10,651,055
Group 1 Automotive, Inc. 5.00%, due 6/1/22		5,665,000		5,721,650
Guitar Center, Inc. 6.50%, due 4/15/19 (d)		7,225,000		6,764,406
L Brands, Inc. 5.625%, due 2/15/22		7,725,000		8,381,625
6.625%, due 4/1/21		13,980,000		15,832,350
6.875%, due 11/1/35 (d)		13,500,000		14,023,125
8.50%, due 6/15/19		3,395,000		4,006,100
Men’s Wearhouse, Inc. (The) 7.00%, due 7/1/22		53,908,000		56,064,320
Outerwall, Inc. 5.875%, due 6/15/21		31,675,000		29,220,187
Penske Automotive Group, Inc. 5.375%, due 12/1/24		7,265,000		7,373,975
5.75%, due 10/1/22		26,025,000		26,870,812
Radio Systems Corp. 8.375%, due 11/1/19 (d)		32,225,000		34,198,781
Sally Holdings LLC / Sally Capital, Inc. 6.875%, due 11/15/19		1,495,000		1,547,325
Sonic Automotive, Inc. 7.00%, due 7/15/22		11,875,000		12,646,875
Yum! Brands, Inc. 3.75%, due 11/1/21		4,710,000		4,439,175
3.875%, due 11/1/20		3,000,000		2,906,844

	Principal Amount		Value
Retail (continued)
Yum! Brands, Inc. (continued)
3.875%, due 11/1/23	$	13,045,000	$	11,784,788
5.30%, due 9/15/19		7,500,000		7,829,258
				450,282,441
Semiconductors 0.6%
Micron Technology, Inc. 5.25%, due 8/1/23 (d)		19,370,000		18,924,296
5.50%, due 2/1/25		26,310,000		25,060,275
Sensata Technologies B.V. 5.00%, due 10/1/25 (d)		12,500,000		12,203,125
				56,187,696
Shipbuilding 0.1%
Huntington Ingalls Industries, Inc. 5.00%, due 12/15/21 (d)		5,000,000		5,200,000
7.125%, due 3/15/21		6,905,000		7,215,725
				12,415,725
Software 1.3%
ACI Worldwide, Inc. 6.375%, due 8/15/20 (d)		43,570,000		45,476,187
Activision Blizzard, Inc. 5.625%, due 9/15/21 (d)		23,860,000		25,236,722
Emdeon, Inc. 6.00%, due 2/15/21 (d)		10,210,000		10,018,563
Italics Merger Sub, Inc. 7.125%, due 7/15/23 (d)		1,105,000		1,096,149
MSCI, Inc. 5.25%, due 11/15/24 (d)		24,537,000		25,825,192
5.75%, due 8/15/25 (d)		10,030,000		10,576,635
				118,229,448
Storage & Warehousing 0.5%
Algeco Scotsman Global Finance PLC 8.50%, due 10/15/18 (d)		44,200,000		38,564,500
10.75%, due 10/15/19 (d)		10,565,000		5,810,750
				44,375,250
Telecommunications 6.4%
Centurylink, Inc. 5.625%, due 4/1/25		21,000,000		18,847,500
CommScope Technologies Finance LLC 6.00%, due 6/15/25 (d)		13,075,000		13,271,125
CommScope, Inc. 4.375%, due 6/15/20 (d)		2,500,000		2,550,000
DigitalGlobe, Inc. 5.25%, due 2/1/21 (d)		28,276,000		25,436,524
Frontier Communications Corp. 6.25%, due 9/15/21		26,410,000		23,584,130
8.875%, due 9/15/20 (d)		9,665,000		10,033,430
10.50%, due 9/15/22 (d)		27,020,000		28,033,250
GCI, Inc. 6.875%, due 4/15/25		5,000,000		5,150,000

20 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Corporate Bonds (continued)
Telecommunications (continued)
Hughes Satellite Systems Corp. 6.50%, due 6/15/19	$	12,627,000	$	13,899,170
7.625%, due 6/15/21		26,500,000		28,885,000
Intelsat Jackson Holdings S.A. 5.50%, due 8/1/23		2,100,000		1,731,188
7.25%, due 4/1/19		17,030,000		15,965,625
7.25%, due 10/15/20		17,800,000		16,242,500
7.50%, due 4/1/21		13,600,000		12,274,000
Sable International Finance, Ltd. 8.75%, due 2/1/20 (d)		12,750,000		13,467,188
Sprint Communications, Inc. 7.00%, due 3/1/20 (d)		3,265,000		3,428,250
9.00%, due 11/15/18 (d)		22,196,000		24,401,617
9.25%, due 4/15/22		13,690,000		14,100,700
Sprint Corp. 7.125%, due 6/15/24		15,335,000		13,466,047
7.875%, due 9/15/23		10,185,000		9,421,125
¨T-Mobile USA, Inc. 6.00%, due 3/1/23		8,504,000		8,477,425
6.125%, due 1/15/22		22,015,000		22,400,262
6.25%, due 4/1/21		20,085,000		20,735,754
6.375%, due 3/1/25		50,822,000		50,949,055
6.50%, due 1/15/24		17,985,000		18,254,775
6.625%, due 11/15/20		1,000,000		1,030,000
6.625%, due 4/1/23		40,925,000		41,807,343
6.731%, due 4/28/22		38,575,000		39,828,687
¨Virgin Media Secured Finance PLC 5.25%, due 1/15/21		83,145,000		88,133,700
5.25%, due 1/15/26 (d)		9,295,000		9,295,000
				595,100,370
Transportation 1.0%
Florida East Coast Holdings Corp. 6.75%, due 5/1/19 (d)		47,999,000		48,346,993
9.75%, due 5/1/20 (d)		24,245,000		22,062,950
XPO Logistics, Inc. 6.50%, due 6/15/22 (d)		20,830,000		18,590,775
7.875%, due 9/1/19 (d)		4,790,000		4,819,937
				93,820,655
Trucking & Leasing 0.3%
Flexi-Van Leasing, Inc. 7.875%, due 8/15/18 (d)		15,865,000		16,221,963
TRAC Intermodal LLC / TRAC Intermodal Corp. 11.00%, due 8/15/19		12,985,000		14,088,725
				30,310,688
Total Corporate Bonds (Cost $8,766,405,381)				8,489,428,254

	Principal Amount		Value
Loan Assignments 0.7% (g)
Building Materials 0.1%
Headwaters, Inc. Term Loan B 4.50%, due 3/24/22	$	8,977,500	$	8,999,944
Household Products & Wares 0.0%‡
Spectrum Brands, Inc. USD Term Loan 3.75%, due 6/23/22		4,230,776		4,244,657
Lodging 0.2%
Cannery Casino Resorts LLC New Term Loan B 7.00%, due 10/2/18		9,709,094		9,393,548
New 2nd Lien Term Loan 11.00%, due 10/2/19		16,950,000		14,619,375
				24,012,923
Metal Fabricate & Hardware 0.2%
Neenah Foundry Co. Term Loan 6.764%, due 4/26/17 (b)(e)		15,230,378		15,001,923
Pharmaceuticals 0.1%
Phibro Animal Health Corp. Term Loan B 4.00%, due 4/16/21		13,331,250		13,172,941
Retail 0.1%
Men’s Wearhouse, Inc. (The) 2015 Term Loan 5.00%, due 6/18/21		6,000,000		6,007,500
Total Loan Assignments (Cost $73,451,611)				71,439,888
Total Long-Term Bonds (Cost $8,968,271,717)				8,683,694,726
	Shares
Common Stocks 0.4%
Auto Parts & Equipment 0.1%
¨Exide Technologies, Inc. (b)(c)(d)(e)		1,416,537		5,666,148
Electric 0.0%‡
Upstate New York Power Producers, Inc. (b)(c)(e)(h)		51,473		2,316,285
Entertainment 0.0%‡
Affinity Gaming LLC (b)(e)(h)		275,000		3,162,500

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 October 31, 2015 (continued)

	Shares			Value
Common Stocks (continued)
Lodging 0.2%
Majestic Star Casino LLC Membership Units (b)(c)(e)(h)		446,020		$	156,107
Starwood Hotels & Resorts Worldwide, Inc.		180,170			14,390,178
					14,546,285
Media 0.0%‡
ION Media Networks, Inc. (b)(c)(e)(h)		2,267			985,125
Metal Fabricate & Hardware 0.1%
Neenah Enterprises, Inc. (b)(c)(e)(h)		717,799			8,728,436
Total Common Stocks (Cost $76,896,043)					35,404,779
Exchange-Traded Fund 0.2% (i)
SPDR Gold Shares (h)		169,400			18,515,420
Total Exchange-Traded Fund (Cost $19,294,653)					18,515,420
Preferred Stock 0.1%
Banks 0.1%
GMAC Capital Trust I 8.125%		209,400			5,408,802
Total Preferred Stock (Cost $5,042,918)					5,408,802
	Principal Amount
Short-Term Investment 5.2%
Repurchase Agreement 5.2%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $485,088,645 (Collateralized by United States Treasury and Government Agency securities with rates between 1.375% and 1.75% and maturity dates between 2/12/20 and 2/29/20, with a Principal Amount of $492,090,000 and a Market Value of $494,793,548)	$	485,088,645			485,088,645
Total Short-Term Investment (Cost $485,088,645)					485,088,645
Total Investments (Cost $9,554,593,976) (j)		98.8	%		9,228,112,372
Other Assets, Less Liabilities		1.2			107,962,029
Net Assets		100.0	%	$	9,336,074,401

‡ Less than one-tenth of a percent.

(a) PIK (“Payment-in-Kind”)—issuer may pay interest or dividends with additional securities and/or in cash.

(b) Illiquid security—As of October 31, 2015, the total market value of these securities deemed illiquid under procedures approved by the Board of Trustees was $190,843,495, which represented 2.0% of the Fund’s net assets.

(c) Fair valued security—Represents fair value as measured in good faith under procedures approved by the Board of Trustees. As of October 31, 2015, the total market value of these securities was $170,019,072, which represented 1.8% of the Fund’s net assets.

(d) 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.

(e) Restricted security.

(f) Floating rate—Rate shown was the rate in effect as of October 31, 2015.

(g) Floating Rate Loan—generally pays interest at rates which are periodically re-determined at a margin above the London InterBank Offered Rate or other short-term rates. The rate shown is the weighted average interest rate of all contracts within the floating rate loan facility as of October 31, 2015.

(h) Non-income producing security.

(i) Exchange-Traded Fund—An investment vehicle that represents a basket of securities that is traded on an exchange.

(j) As of October 31, 2015, cost was $9,556,746,475 for federal income tax purposes and net unrealized depreciation was as follows:

Gross unrealized appreciation	$	178,468,796
Gross unrealized depreciation		(507,102,899	)
Net unrealized depreciation	$	(328,634,103	)

The following abbreviation is used in the preceding pages:

SPDR—Standard & Poor’s Depositary Receipt

22 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Long-Term Bonds
Convertible Bonds (b)	$	—	$	65,161,612	$	57,664,972	$	122,826,584
Corporate Bonds (c)		—		8,394,926,255		94,501,999		8,489,428,254
Loan Assignments (d)		—		50,813,013		20,626,875		71,439,888
Total Long-Term Bonds		—		8,510,900,880		172,793,846		8,683,694,726
Common Stocks (e)		14,390,178		3,162,500		17,852,101		35,404,779
Exchange-Traded Fund		18,515,420		—		—		18,515,420
Preferred Stock		5,408,802		—		—		5,408,802
Short-Term Investment
Repurchase Agreement		—		485,088,645		—		485,088,645
Total Investments in Securities	$	38,314,400	$	8,999,152,025	$	190,645,947	$	9,228,112,372

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

(b) The Level 3 securities valued at $53,295,813 and $4,369,159 are held in Auto Parts & Equipment and Electric, respectively, within the Convertible Bonds section of the Portfolio of Investments.

(c) The Level 3 securities valued at $54,289,499, $36,312,500 and $3,900,000 are held in Auto Parts & Equipment, Entertainment and Oil & Gas, respectively, within the Corporate Bonds section of the Portfolio of Investments.

(d) The Level 3 securities valued at $14,619,375 and $6,007,500 are held in Lodging and Retail, respectively, within Loan Assignments whose values were obtained from an independent pricing service which utilized significant unobservable inputs to measure each such value as referenced in the Portfolio of Investments.

(e) The Level 3 securities valued at $5,666,148, $2,316,285, $156,107, $985,125 and $8,728,436 are held in Auto Parts & Equipment, Electric, Lodging, Media and Metal Fabricate & Hardware, respectively, within the Common Stocks section of the Portfolio of Investments.

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, a security with a market value of $15,255,000 transferred from Level 2 to Level 3. The transfer occurred as a result of utilizing significant unobservable inputs. As of October 31, 2014, the fair value was based on information obtained from an independent pricing service, that utilized significant observable inputs.

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 October 31, 2015 (continued)

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

Investments in Securities	Balance as of October 31, 2014			Accrued Discounts (Premiums)				Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Purchases				Sales (a)				Transfers in to Level 3			Transfers out of Level 3			Balance as of October 31, 2015			Change in Unrealized Appreciation (Depreciation) from Investments Still Held as of October 31, 2015 (b)
Long-Term Bonds
Convertible Bonds
Auto Parts & Equipment		$	—		$	326,246			$	—			$	(5,733,948	)		$	58,703,515	(c)		$	—			$	—		$	—		$	53,295,813		$	(5,733,948	)
Electric			3,610,876			—				—				62,610				695,673	(d)			—				—			—			4,369,159			62,610
Corporate Bonds
Auto Parts & Equipment			—			366,368				—				(4,904,204	)			58,827,335	(c)			—				—			—			54,289,499			(4,904,204	)
Entertainment			36,531,648			6,283				3,742				83,895				—				(313,068	)			—			—			36,312,500			—
Oil & Gas			—			—				—				3,900,000	(e)			—				—				—			—			3,900,000			3,900,000
Loan Assignments
Aerospace & Defense			20,538,525			22,397				134,558				(105,480	)			—				(20,590,000	)			—			—			—			—
Auto Parts & Equipment			84,086,737			221,594				(294,870	)			141,955				—				(84,155,416	)			—			—			—			—
Distribution & Wholesale			26,071,299			(2,194	)			(65,408	)			61,232				—				(26,064,929	)			—			—			—			—
Lodging			—			147,180				—				(782,805	)			—				—				15,255,000			—			14,619,375			(782,805	)
Retail			—			—				—				7,500				6,000,000				—				—			—			6,007,500			7,500
Common Stocks
Auto Parts & Equipment			—			—				—				(47,619,948	)			53,286,096	(c)			—				—			—			5,666,148			(47,619,948	)
Electric			2,316,285			—				—				—				—				—				—			—			2,316,285			—
Lodging			289,913			—				—				(133,806	)			—				—				—			—			156,107			(133,806	)
Media			857,561			—				—				127,564				—				—				—			—			985,125			127,564
Metal, Fabricate & Hardware			9,195,005			—				—				(466,569	)			—				—				—			—			8,728,436			(466,569	)
Warrants
Food			75,060			—				—				(75,060	)			—				—				—			—			—			—
Total		$	183,572,909		$	1,087,874			$	(221,978	)		$	(55,437,064	)		$	177,512,619			$	(131,123,413	)		$	15,255,000		$	—		$	190,645,947		$	(55,543,606	)

(a) Sales include principal reductions.

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

(c) Security received through a restructure.

(d) Purchases include PIK securities.

(e) Fund received the security as part of a class action brought against the issuer.

24 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $9,554,593,976)	$	9,228,112,372
Cash		2,329,231
Receivables:
Dividends and interest		165,675,378
Investment securities sold		47,925,527
Fund shares sold		21,749,800
Other assets		118,571
Total assets		9,465,910,879
Liabilities
Payables:
Investment securities purchased		100,959,725
Fund shares redeemed		15,864,024
Manager (See Note 3)		4,232,964
Transfer agent (See Note 3)		2,016,673
NYLIFE Distributors (See Note 3)		1,454,132
Shareholder communication		315,013
Professional fees		116,850
Trustees		22,592
Custodian		8,009
Accrued expenses		53,463
Dividend payable		4,793,033
Total liabilities		129,836,478
Net assets	$	9,336,074,401
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	16,747,333
Additional paid-in capital		9,741,452,349
		9,758,199,682
Distributions in excess of net investment income		(5,332,816	)
Accumulated net realized gain (loss) on investments		(90,310,861	)
Net unrealized appreciation (depreciation) on investments		(326,481,604	)
Net assets	$	9,336,074,401

Class A
Net assets applicable to outstanding shares	$	3,364,516,647
Shares of beneficial interest outstanding		603,710,949
Net asset value per share outstanding	$	5.57
Maximum sales charge (4.50% of offering price)		0.26
Maximum offering price per share outstanding	$	5.83
Investor Class
Net assets applicable to outstanding shares	$	282,450,630
Shares of beneficial interest outstanding		50,230,179
Net asset value per share outstanding	$	5.62
Maximum sales charge (4.50% of offering price)		0.26
Maximum offering price per share outstanding	$	5.88
Class B
Net assets applicable to outstanding shares	$	139,683,467
Shares of beneficial interest outstanding		25,191,083
Net asset value and offering price per share outstanding	$	5.54
Class C
Net assets applicable to outstanding shares	$	679,391,659
Shares of beneficial interest outstanding		122,478,294
Net asset value and offering price per share outstanding	$	5.55
Class I
Net assets applicable to outstanding shares	$	4,844,891,346
Shares of beneficial interest outstanding		868,613,911
Net asset value and offering price per share outstanding	$	5.58
Class R1
Net assets applicable to outstanding shares	$	39,269
Shares of beneficial interest outstanding		7,049
Net asset value and offering price per share outstanding	$	5.57
Class R2
Net assets applicable to outstanding shares	$	10,084,337
Shares of beneficial interest outstanding		1,809,015
Net asset value and offering price per share outstanding	$	5.57
Class R6
Net assets applicable to outstanding shares	$	15,017,046
Shares of beneficial interest outstanding		2,692,784
Net asset value and offering price per share outstanding	$	5.58

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Interest	$	567,075,302
Dividends		1,104,302
Total income		568,179,604
Expenses
Manager (See Note 3)		48,488,717
Distribution/Service—Class A (See Note 3)		8,730,546
Distribution/Service—Investor Class (See Note 3)		717,270
Distribution/Service—Class B (See Note 3)		1,558,595
Distribution/Service—Class C (See Note 3)		7,303,219
Distribution/Service—Class R2 (See Note 3)		25,110
Transfer agent (See Note 3)		12,415,884
Shareholder communication		1,418,212
Professional fees		491,467
Registration		323,239
Trustees		178,556
Custodian		93,044
Shareholder service (See Note 3)		10,077
Miscellaneous		242,067
Total expenses		81,996,003
Net investment income (loss)		486,183,601
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		(89,213,544	)
Net change in unrealized appreciation (depreciation) on investments		(414,564,174	)
Net realized and unrealized gain (loss) on investments		(503,777,718	)
Net increase (decrease) in net assets resulting from operations	$	(17,594,117	)

26 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	486,183,601		$	491,294,338
Net realized gain (loss) on investments		(89,213,544	)		153,627,787
Net change in unrealized appreciation (depreciation) on investments		(414,564,174	)		(277,508,415	)
Net increase (decrease) in net assets resulting from operations		(17,594,117	)		367,413,710
Dividends to shareholders:
From net investment income:
Class A		(189,879,193	)		(259,359,166	)
Investor Class		(15,560,192	)		(19,682,303	)
Class B		(7,176,004	)		(10,790,345	)
Class C		(33,655,695	)		(47,137,749	)
Class I		(237,966,632	)		(245,198,107	)
Class R1		(1,824	)		(1,952	)
Class R2		(535,413	)		(872,139	)
Class R6		(744,396	)		(180,546	)
		(485,519,349	)		(583,222,307	)
From return of capital:
Class A		(29,948,610	)		—
Investor Class		(2,469,439	)		—
Class B		(1,333,605	)		—
Class C		(6,300,642	)		—
Class I		(37,755,580	)		—
Class R1		(294	)		—
Class R2		(85,939	)		—
Class R6		(119,429	)		—
		(78,013,538	)		—
Total dividends and distributions to shareholders		(563,532,887	)		(583,222,307	)
Capital share transactions:
Net proceeds from sale of shares		3,627,606,451			2,249,951,118
Net asset value of shares issued to shareholders in reinvestment of dividends		503,314,254			512,961,965
Cost of shares redeemed		(2,929,574,034	)		(2,614,781,262	)
Increase (decrease) in net assets derived from capital share transactions		1,201,346,671			148,131,821
Net increase (decrease) in net assets		620,219,667			(67,676,776	)
Net Assets
Beginning of year		8,715,854,734			8,783,531,510
End of year	$	9,336,074,401		$	8,715,854,734
Distributions in excess of net investment income at end of year	$	(5,332,816	)	$	(7,070,181	)

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	5.93		$	6.08		$	6.08		$	5.84		$	5.92
Net investment income (loss) (a)		0.31			0.34			0.36			0.39			0.41
Net realized and unrealized gain (loss) on investments		(0.31	)		(0.09	)		0.06			0.27			(0.07	)
Net realized and unrealized gain (loss) on foreign currency transactions		—			—			—			0.00	‡		0.00	‡
Total from investment operations		0.00	‡		0.25			0.42			0.66			0.34
Less dividends and distributions:
From net investment income		(0.31	)		(0.40	)		(0.42	)		(0.42	)		(0.42	)
From return of capital		(0.05	)		—			—			—			—
Total dividends and distributions		(0.36	)		(0.40	)		(0.42	)		(0.42	)		(0.42	)
Net asset value at end of year	$	5.57		$	5.93		$	6.08		$	6.08		$	5.84
Total investment return (b)		0.06	%		4.14	%		7.15	%		11.76	%		5.94	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.45	%		5.52	%		5.89	%		6.56	%		6.86	%
Net expenses		0.96	%		0.99	%		1.01	%		1.00	%		0.99	%
Portfolio turnover rate		38	%		41	%		40	%		29	%		45	%
Net assets at end of year (in 000’s)	$	3,364,517		$	3,678,466		$	4,055,185		$	4,086,134		$	3,355,007

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	5.99		$	6.14		$	6.13		$	5.88		$	5.97
Net investment income (loss) (a)		0.31			0.34			0.36			0.39			0.41
Net realized and unrealized gain (loss) on investments		(0.31	)		(0.09	)		0.07			0.28			(0.08	)
Net realized and unrealized gain (loss) on foreign currency transactions		—			—			—			0.00	‡		0.00	‡
Total from investment operations		0.00	‡		0.25			0.43			0.67			0.33
Less dividends and distributions:
From net investment income		(0.32	)		(0.40	)		(0.42	)		(0.42	)		(0.42	)
From return of capital		(0.05	)		—			—			—			—
Total dividends and distributions		(0.37	)		(0.40	)		(0.42	)		(0.42	)		(0.42	)
Net asset value at end of year	$	5.62		$	5.99		$	6.14		$	6.13		$	5.88
Total investment return (b)		(0.07	%)		4.13	%		7.24	%		11.82	%		5.69	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.39	%		5.50	%		5.88	%		6.53	%		6.80	%
Net expenses		1.02	%		1.01	%		1.02	%		1.03	%		1.05	%
Portfolio turnover rate		38	%		41	%		40	%		29	%		45	%
Net assets at end of year (in 000’s)	$	282,451		$	296,535		$	307,643		$	301,074		$	285,656

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

28 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013				2012			2011
Net asset value at beginning of year	$	5.90		$	6.05		$	6.05			$	5.81		$	5.90
										��
Net investment income (loss) (a)		0.27			0.29			0.31				0.34			0.36
Net realized and unrealized gain (loss) on investments		(0.32	)		(0.09	)		0.06				0.27			(0.08	)
Net realized and unrealized gain (loss) on foreign currency transactions		—			—			—				0.00	‡		0.00	‡
Total from investment operations		(0.05	)		0.20			0.37				0.61			0.28
Less dividends and distributions:
From net investment income		(0.26	)		(0.35	)		(0.37	)			(0.37	)		(0.37	)
From return of capital		(0.05	)		—			—				—			—
Total dividends and distributions		(0.31	)		(0.35	)		(0.37	)			(0.37	)		(0.37	)
Net asset value at end of year	$	5.54		$	5.90		$	6.05			$	6.05		$	5.81
Total investment return (b)		(0.60	%)		3.35	%		6.36	%			10.94	%		4.95	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		4.64	%		4.75	%		5.13	%			5.78	%		6.05	%
Net expenses		1.77	%		1.76	%		1.77	%			1.78	%		1.80	%
Portfolio turnover rate		38	%		41	%		40	%			29	%		45	%
Net assets at end of year (in 000’s)	$	139,683		$	172,640		$	197,273			$	221,723		$	267,752

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	5.90		$	6.05		$	6.05		$	5.81		$	5.90
Net investment income (loss) (a)		0.27			0.29			0.31			0.34			0.36
Net realized and unrealized gain (loss) on investments		(0.31	)		(0.09	)		0.06			0.27			(0.08	)
Net realized and unrealized gain (loss) on foreign currency transactions		—			—			—			0.00	‡		0.00	‡
Total from investment operations		(0.04	)		0.20			0.37			0.61			0.28
Less dividends and distributions:
From net investment income		(0.26	)		(0.35	)		(0.37	)		(0.37	)		(0.37	)
From return of capital		(0.05	)		—			—			—			—
Total dividends and distributions		(0.31	)		(0.35	)		(0.37	)		(0.37	)		(0.37	)
Net asset value at end of year	$	5.55		$	5.90		$	6.05		$	6.05		$	5.81
Total investment return (b)		(0.60	%)		3.34	%		6.36	%		10.93	%		4.95	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		4.64	%		4.75	%		5.13	%		5.78	%		6.05	%
Net expenses		1.77	%		1.76	%		1.77	%		1.78	%		1.80	%
Portfolio turnover rate		38	%		41	%		40	%		29	%		45	%
Net assets at end of year (in 000’s)	$	679,392		$	785,873		$	814,589		$	819,807		$	654,224

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	5.94		$	6.08		$	6.08		$	5.84		$	5.92
Net investment income (loss) (a)		0.33			0.35			0.37			0.40			0.42
Net realized and unrealized gain (loss) on investments		(0.31	)		(0.08	)		0.07			0.28			(0.06	)
Net realized and unrealized gain (loss) on foreign currency transactions		—			—			—			0.00	‡		0.00	‡
Total from investment operations		0.02			0.27			0.44			0.68			0.36
Less dividends and distributions:
From net investment income		(0.33	)		(0.41	)		(0.44	)		(0.44	)		(0.44	)
From return of capital		(0.05	)		—			—			—			—
Total dividends and distributions		(0.38	)		(0.41	)		(0.44	)		(0.44	)		(0.44	)
Net asset value at end of year	$	5.58		$	5.94		$	6.08		$	6.08		$	5.84
Total investment return (b)		0.32	%		4.58	%		7.40	%		12.02	%		6.19	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.70	%		5.76	%		6.13	%		6.81	%		7.11	%
Net expenses		0.71	%		0.74	%		0.76	%		0.75	%		0.74	%
Portfolio turnover rate		38	%		41	%		40	%		29	%		45	%
Net assets at end of year (in 000’s)	$	4,844,891		$	3,762,169		$	3,393,780		$	2,982,526		$	1,775,230

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(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.

	Year ended October 31,									June 29, 2012** through October 31
Class R1	2015			2014			2013			2012
Net asset value at beginning of period	$	5.93		$	6.08		$	6.08		$	5.92
Net investment income (loss) (a)		0.32			0.34			0.37			0.14
Net realized and unrealized gain (loss) on investments		(0.31	)		(0.08	)		0.06			0.16
Net realized and unrealized gain (loss) on foreign currency transactions		—			—			—			0.00	‡
Total from investment operations		0.01			0.26			0.43			0.30
Less dividends and distributions:
From net investment income		(0.32	)		(0.41	)		(0.43	)		(0.14	)
From return of capital		(0.05	)		—			—			—
Total dividends and distributions		(0.37	)		(0.41	)		(0.43	)		(0.14	)
Net asset value at end of period	$	5.57		$	5.93		$	6.08		$	6.08
Total investment return (b)		0.21	%		4.31	%		7.32	%		5.17	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.60	%		5.66	%		6.03	%		6.49	%††
Net expenses		0.81	%		0.84	%		0.86	%		0.87	%††
Portfolio turnover rate		38	%		41	%		40	%		29	%
Net assets at end of period (in 000’s)	$	39		$	29		$	28		$	26

** Inception date.

†† Annualized.

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the period.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R1 shares are not subject to sales charges.

(c) Total investment return is not annualized.

30 MainStay High Yield Corporate Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class R2	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	5.93		$	6.08		$	6.08		$	5.84		$	5.93
Net investment income (loss) (a)		0.31			0.33			0.35			0.38			0.40
Net realized and unrealized gain (loss) on investments		(0.31	)		(0.09	)		0.07			0.28			(0.07	)
Net realized and unrealized gain (loss) on foreign currency transactions		—	��		—			—			0.00	‡		0.00	‡
Total from investment operations		(0.00	)‡		0.24			0.42			0.66			0.33
Less dividends and distributions:
From net investment income		(0.31	)		(0.39	)		(0.42	)		(0.42	)		(0.42	)
From return of capital		(0.05	)		—			—			—			—
Total dividends and distributions		(0.36	)		(0.39	)		(0.42	)		(0.42	)		(0.42	)
Net asset value at end of year	$	5.57		$	5.93		$	6.08		$	6.08		$	5.84
Total investment return (b)		(0.04	%)		4.04	%		7.06	%		11.66	%		5.67	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.35	%		5.43	%		5.79	%		6.46	%		6.76	%
Net expenses		1.06	%		1.09	%		1.11	%		1.10	%		1.09	%
Portfolio turnover rate		38	%		41	%		40	%		29	%		45	%
Net assets at end of year (in 000’s)	$	10,084		$	11,049		$	15,008		$	14,280		$	9,927

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.

	Year ended October 31,						June 17, 2013** through October 31,
Class R6	2015			2014			2013
Net asset value at beginning of period	$	5.94		$	6.09		$	6.11
Net investment income (loss) (a)		0.34			0.36			0.14
Net realized and unrealized gain (loss) on investments		(0.31	)		(0.08	)		0.03
Total from investment operations		0.03			0.28			0.17
Less dividends and distributions:
From net investment income		(0.34	)		(0.43	)		(0.19	)
From return of capital		(0.05	)		—			—
Total dividends and distributions		(0.39	)		(0.43	)		(0.19	)
Net asset value at end of period	$	5.58		$	5.94		$	6.09
Total investment return (b)		0.50	%		4.60	%		2.79	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.84	%		5.88	%		6.24	%††
Net expenses		0.58	%		0.58	%		0.59	%††
Portfolio turnover rate		38	%		41	%		40	%
Net assets at end of period (in 000’s)	$	15,017		$	9,093		$	26

** 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.

(c) Total investment return is not annualized.

The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements. 31

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay High Yield Corporate 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 Fund currently offers eight classes of shares. Class A shares commenced operations on January 3, 1995. Class B shares commenced operations on May 1, 1986. Class C shares commenced operations on September 1, 1998. Class I shares commenced operations on January 2, 2004. Class R2 shares were first offered to the public on December 14, 2007, but did not commence operations until May 1, 2008. Investor Class shares commenced operations on February 28, 2008. Class R1 shares commenced operations on June 29, 2012. Class R6 shares commenced operations on June 17, 2013. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 R1, Class R2 and Class R6 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The eight classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A, Investor Class and Class R2 shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I, Class R1 and Class R6 shares are not subject to a distribution and/or service fee. Class R1 and Class R2 shares are subject to a shareholder service fee. This is in addition to any fees paid under a distribution plan, where applicable.

The Fund’s investment objective is to seek maximum current income through investment in a diversified portfolio of high-yield debt securities. 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 Standard Codification Topic 946 Financial Services—Investment Companies. The Fund pre-

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

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

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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

32 MainStay High Yield Corporate Bond Fund

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 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing

source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, the Fund held securities with a value of $170,019,072 that were fair valued in such a manner.

Equity securities and Exchange-Traded Funds 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. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities (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 Manager, in consultation with the Subadvisor. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean prices are deemed by the Manager, 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 & 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. Other temporary cash investments which 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. These 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. As of October 31, 2015, the Fund held Level 3 securities with a value of $20,626,875 that were valued by utilizing significant unobservable inputs.

33

Notes to Financial Statements (continued)

The valuation techniques and significant amounts of unobservable inputs used in the fair valuation measurement of the Fund’s Level 3 securities are outlined in the table below. A significant increase or decrease in any of those inputs in isolation would result in a significantly higher or lower fair value measurement.

High Yield Corporate Bond

Asset Class	Fair Value at 10/31/15		Valuation Technique	Unobservable Inputs	Range/ (Weighted Average)
Convertible Bonds (2)	$	57,664,972	Income/Market Approach	Estimated Remaining Value		$118.6M
				Liquidity Discount		20	%
				Discount Rate		6%-9	%
				EBITDA Multiple		5x
Corporate Bonds (4)		94,501,999	Income/Market Approach	Discount Rate		15	%
				Estimated Remaining Claims/Value		$0.10
				Offered Quotes		$26.00–$103.75/($80.425	)
Common Stocks (5)		17,852,101	Income/Market Approach	Estimated Remaining Value		$118.6M
				Liquidity Discount		20	%
				Discount Rate		7%-20	%
				EBITDA Multiple		4.5x-9.5x
				Offered Quote		$0.35/($0.35	)
	$	170,019,072

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued within seven days. Illiquidity of a security might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of the Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor measures the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued by methods deemed reasonable in good faith in such a manner as the Board deems appropriate to reflect their fair value. The liquidity of the Fund’s investments, as shown in the accompanying Portfolio of Investments, was measured as of October 31, 2015 and can change at any time in response to, among other relevant factors, market conditions or events or developments with respect to an individual issuer or instrument. As of October 31, 2015, securities deemed to be illiquid under procedures approved by the Board of Trustees are shown in the Portfolio of Investments.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

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

(D)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the

34 MainStay High Yield Corporate Bond Fund

case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

The Fund may place a debt obligation on non-accrual status and reduce related interest income by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation 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, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(H)  Loan Assignments, Participations and Commitments.  The Fund may invest in loan assignments and loan

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. Loans are typically senior, secured and collateralized in nature. The Fund records an investment when the borrower withdraws money and records interest as earned. These loans pay interest at rates that are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the London InterBank Offered Rate.

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 enters into bankruptcy, the Fund may incur certain costs and delays in realizing payment, or may suffer a loss of principal and/or interest.

Unfunded commitments represent the remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities. As of October 31, 2015, the Fund did not hold any unfunded commitments.

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

35

Notes to Financial Statements (continued)

(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. As of October 31, 2015, the Fund did not hold any rights and warrants.

(K)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

(L)  Restricted Securities.  Restricted securities, as disclosed in Note 5, are securities which have been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933, as amended. Disposal of these securities may involve time-consuming negotiations and expenses, and it may be difficult to obtain a prompt sale at an acceptable price.

(M)  Concentration of Risk.  The Fund’s principal investments include high-yield debt securities (sometimes called ‘‘junk bonds’’), which are generally considered speculative because they present a greater risk of loss, including default, than higher quality 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.

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

The Fund 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 quality debt securities. These securities 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 securities could decline significantly.

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

Note 3–Fees and Related Party Transactions

(A)  Manager and Subadvisor.  New York Life 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 a portion of the compensation of the Chief Compliance Officer of 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 Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of the 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.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual

36 MainStay High Yield Corporate Bond Fund

rate of the Fund’s average daily net assets as follows: 0.60% up to $500 million; 0.55% from $500 million up to $5 billion; 0.525% from $5 billion up to $7 billion; and 0.50% in excess of $7 billion, plus a fee for fund accounting services previously provided by New York Life Investments under a separate fund accounting agreement furnished at an annual rate of the Fund’s average daily net assets as follows: 0.05% up to $20 million; 0.0333% from $20 million to $100 million; and 0.01% in excess of $100 million. During the year ended October 31, 2015, the effective management fee rate was 0.55% inclusive of a fee for fund accounting services of 0.01% of the Fund’s average daily net assets.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $48,488,717.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly distribution 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, Class R1 and 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 and 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 R1and 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 R1 and Class R2 shares. This is in addition to any fees paid under a distribution plan, where applicable.

During the year ended October 31, 2015, shareholder service fees incurred by the Fund were as follows:

Class R1	$	33
Class R2		10,044

(C)  Sales Charges.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $629,691 and $54,832, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares of $21,387, $206, $234,471 and $70,548, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	4,623,143
Investor Class		552,578
Class B		300,147
Class C		1,406,498
Class I		5,520,182
Class R1		43
Class R2		13,293

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

(F)  Capital.  As of October 31, 2015, New York Life and its affiliates beneficially held shares of the Fund with values and percentages of net assets as follows:

Class I	$	4,958,439	0.1	%
Class R1		29,494	75.1

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)			Other Temporary Differences			Unrealized Appreciation (Depreciation)			Total Accumulated Gain (Loss)
$—	$	(88,176,119	)	$	(5,315,059	)	$	(328,634,103	)	$	(422,125,281	)

37

Notes to Financial Statements (continued)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments and adjustments on trust preferred securities. The other temporary differences are primarily due to dividends payable and defaulted bond income accruals.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments			Additional Paid-In Capital
$1,073,113	$	(1,073,113	)	$	—

The reclassifications for the Fund are primarily due to defaulted bonds.

As of October 31, 2015, for federal income tax purposes, capital loss carryforwards of $88,176,119 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these

capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss Available Through	Short-Term Capital Loss Amounts (000’s)		Long-Term Capital Loss Amounts (000’s)
Unlimited	$	49,512	$	38,664

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	485,519,349	$	567,172,426
Long-Term Capital Gain		—		16,049,881
Return of Capital		78,013,538		—
Total	$	563,532,887	$	583,222,307

Note 5–Restricted Securities

As of October 31, 2015, the Fund held the following restricted securities:

Security	Date(s) of Acquisition		Principal Amount/ Shares		Cost		10/31/15 Value		Percent of Net Assets
Affinity Gaming LLC Common Stock		5/4/12		275,000	$	3,093,750	$	3,162,500		0.0	%‡
Chesapeake Energy Corp. (Escrow Claim Shares) Corporate Bond 6.775%, due 3/15/19		11/26/14	$	15,000,000		—		3,900,000		0.1
Exide Technologies, Inc. Common Stock		4/30/15		1,416,537		53,286,096		5,666,148		0.1
Exide Technologies, Inc. (Escrow Claim Shares) Corporate Bond 8.625%, due 2/1/18		8/28/15	$	64,863,000		—		64,863		0.0	‡
ION Media Networks, Inc. Common Stock		3/12/10–12/20/10		2,267		3,435		985,125		0.0	‡
Majestic Star Casino LLC Membership Units Common Stock		12/1/11		446,020		892,040		156,107		0.0	‡
Neenah Enterprises, Inc. Common Stock		7/29/10		717,799		6,079,758		8,728,436		0.1
Neenah Foundry Co. Term Loan Loan Assignment 6.764%, due 4/26/17		5/10/13	$	15,230,378		14,973,662		15,001,923		0.2
Sterling Entertainment Enterprises LLC Corporate Bond 9.75%, due 12/31/19		12/21/12	$	35,000,000		35,000,000		36,312,500		0.4
Upstate New York Power Producers, Inc. Common Stock		5/11/99–2/28/11		51,473		875,042		2,316,285		0.0	‡
Upstate New York Power Producers, Inc. (PIK) Convertible Bond 20.00%, due 6/15/17		12/15/13–6/16/15	$	4,008,403		4,306,549		4,369,159		0.0	‡
Total					$	118,510,332	$	80,663,046		0.9	%

‡ Less than one-tenth of a percent.

38 MainStay High Yield Corporate Bond Fund

Note 6–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 7–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

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

During the year ended October 31, 2015, purchases and sales of securities, other than short-term securities, were $4,217,306 and $3,184,805, respectively.

The Fund may purchase securities from or sell to other funds managed by the Subadvisor. These interportfolio transactions are primarily used for cash management purposes and are made pursuant to Rule 17a-7 of the Investment Company Act of 1940. During the year ended October 31, 2015, such purchases were $22,889.

Note 9–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		145,603,396		$	843,020,988
Shares issued to shareholders in reinvestment of dividends and distributions		32,920,868			188,297,147
Shares redeemed		(196,228,275	)		(1,126,601,715	)
Net increase (decrease) in shares outstanding before conversion		(17,704,011	)		(95,283,580	)
Shares converted into Class A (See Note 1)		3,625,771			20,853,918
Shares converted from Class A (See Note 1)		(2,424,134	)		(13,745,855	)
Net increase (decrease)		(16,502,374	)	$	(88,175,517	)
Year ended October 31, 2014:
Shares sold		110,365,199		$	670,023,112
Shares issued to shareholders in reinvestment of dividends and distributions		36,740,423			222,529,421
Shares redeemed		(198,679,136	)		(1,206,457,547	)
Net increase (decrease) in shares outstanding before conversion		(51,573,514	)		(313,905,014	)
Shares converted into Class A (See Note 1)		6,448,322			39,346,330
Shares converted from Class A (See Note 1)		(1,694,448	)		(10,231,579	)
Net increase (decrease)		(46,819,640	)	$	(284,790,263	)
Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		4,131,903		$	24,025,968
Shares issued to shareholders in reinvestment of dividends and distributions		2,890,081			16,677,878
Shares redeemed		(7,353,027	)		(42,701,530	)
Net increase (decrease) in shares outstanding before conversion		(331,043	)		(1,997,684	)
Shares converted into Investor Class (See Note 1)		3,683,129			21,184,403
Shares converted from Investor Class (See Note 1)		(2,652,860	)		(15,413,711	)
Net increase (decrease)		699,226		$	3,773,008
Year ended October 31, 2014:
Shares sold		5,139,141		$	31,542,310
Shares issued to shareholders in reinvestment of dividends and distributions		2,955,890			18,074,129
Shares redeemed		(6,948,997	)		(42,620,153	)
Net increase (decrease) in shares outstanding before conversion		1,146,034			6,996,286
Shares converted into Investor Class (See Note 1)		3,150,331			19,278,632
Shares converted from Investor Class (See Note 1)		(4,902,041	)		(30,218,654	)
Net increase (decrease)		(605,676	)	$	(3,943,736	)

39

Notes to Financial Statements (continued)

Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		2,303,100		$	13,186,027
Shares issued to shareholders in reinvestment of dividends and distributions		1,331,822			7,582,582
Shares redeemed		(5,447,055	)		(31,118,556	)
Net increase (decrease) in shares outstanding before conversion		(1,812,133	)		(10,349,947	)
Shares converted from Class B (See Note 1)		(2,251,668	)		(12,878,755	)
Net increase (decrease)		(4,063,801	)	$	(23,228,702	)
Year ended October 31, 2014:
Shares sold		3,686,951		$	22,339,318
Shares issued to shareholders in reinvestment of dividends and distributions		1,589,123			9,576,092
Shares redeemed		(5,629,155	)		(34,047,861	)
Net increase (decrease) in shares outstanding before conversion		(353,081	)		(2,132,451	)
Shares converted from Class B (See Note 1)		(3,001,073	)		(18,174,729	)
Net increase (decrease)		(3,354,154	)	$	(20,307,180	)
Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		15,167,686		$	86,868,866
Shares issued to shareholders in reinvestment of dividends and distributions		5,650,404			32,165,255
Shares redeemed		(31,470,366	)		(179,795,494	)
Net increase (decrease)		(10,652,276	)	$	(60,761,373	)
Year ended October 31, 2014:
Shares sold		19,523,977		$	118,252,720
Shares issued to shareholders in reinvestment of dividends and distributions		6,235,668			37,589,928
Shares redeemed		(27,239,768	)		(164,557,932	)
Net increase (decrease)		(1,480,123	)	$	(8,715,284	)
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		457,597,569		$	2,647,544,637
Shares issued to shareholders in reinvestment of dividends and distributions		45,040,797			257,291,267
Shares redeemed		(267,882,426	)		(1,541,389,780	)
Net increase (decrease)		234,755,940		$	1,363,446,124
Year ended October 31, 2014:
Shares sold		229,736,475		$	1,394,593,547
Shares issued to shareholders in reinvestment of dividends and distributions		37,019,295			224,384,770
Shares redeemed		(190,756,413	)		(1,158,534,085	)
Net increase (decrease)		75,999,357		$	460,444,232

Class R1	Shares			Amount
Year ended October 31, 2015:
Shares sold		2,132		$	12,087
Shares issued to shareholders in reinvestment of dividends and distributions		371			2,118
Shares redeemed		(417	)		(2,426	)
Net increase (decrease)		2,086		$	11,779
Year ended October 31, 2014:
Shares issued to shareholders in reinvestment of dividends and distributions		322		$	1,952
Net increase (decrease)		322		$	1,952
Class R2	Shares			Amount
Year ended October 31, 2015:
Shares sold		502,307		$	2,865,187
Shares issued to shareholders in reinvestment of dividends and distributions		75,932			434,182
Shares redeemed		(631,881	)		(3,642,029	)
Net increase (decrease)		(53,642	)	$	(342,660	)
Year ended October 31, 2014:
Shares sold		645,590		$	3,925,578
Shares issued to shareholders in reinvestment of dividends and distributions		103,268			625,983
Shares redeemed		(1,354,297	)		(8,228,181	)
Net increase (decrease)		(605,439	)	$	(3,676,620	)
Class R6	Shares			Amount
Year ended October 31, 2015:
Shares sold		1,759,140		$	10,082,691
Shares issued to shareholders in reinvestment of dividends and distributions		151,151			863,825
Shares redeemed		(749,408	)		(4,322,504	)
Net increase (decrease)		1,160,883		$	6,624,012
Year ended October 31, 2014:
Shares sold		1,553,448		$	9,274,533
Shares issued to shareholders in reinvestment of dividends and distributions		29,775			179,690
Shares redeemed		(55,542	)		(335,503	)
Net increase (decrease)		1,527,681		$	9,118,720

Note 10–Litigation

On December 23, 2014, Cynthia Ann Redus-Tarchis and others filed a complaint against New York Life Investments in the United States District Court for the District of New Jersey. The complaint was brought derivatively on behalf of the MainStay Marketfield Fund, the MainStay Large Cap Growth Fund, and the MainStay High Yield Corporate Bond Fund and alleges that New York Life Investments violated Section 36(b) of the 1940 Act by charging excessive investment management fees. The plaintiffs seek monetary damages and other relief from New York Life Investments. New York Life Investments believes the case has no merit, and intends to vigorously defend the matter.

40 MainStay High Yield Corporate Bond Fund

On May 6, 2015, a second amended complaint was filed which, among other things, added MainStay High Yield Opportunities Fund as an additional Fund on whose behalf the complaint was brought. New York Life Investments filed a motion to dismiss the amended complaint. This motion was denied on October 28, 2015. New York Life Investments filed an answer to the amended complaint on November 30, 2015.

Note 11–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded

disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 12–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

41

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay High Yield Corporate Bond Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay High Yield Corporate Bond Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

42 MainStay High Yield Corporate Bond Fund

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years.

For the fiscal year ended October 31, 2015, the Fund designated approximately $365,221 under the Internal Revenue Code as qualified dividend income eligible for reduced tax rates.

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

43

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

44 MainStay High Yield Corporate Bond Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

45

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

46 MainStay High Yield Corporate Bond Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

47

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

48 MainStay High Yield Corporate Bond Fund

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MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1674518 MS291-15 MSHY11-12/15 (NYLIM) NL212

MainStay Money Market Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	10
Financial Statements	14
Notes to Financial Statements	19
Report of Independent Registered Public Accounting Firm	24
Federal Income Tax Information	25
Proxy Voting Policies and Procedures and Proxy Voting Record	25
Shareholder Reports and Quarterly Portfolio Disclosure	25
Board of Trustees, Officers and Advisory Board Members	26

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

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

Investment and Performance Comparison¹(Unaudited)

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

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

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge	One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares3	No Sales Charge		0.01	%		0.01	%		1.16	%		0.64	%
Investor Class Shares3,4	No Sales Charge		0.01			0.01			1.15			0.89
Class B Shares3	No Sales Charge		0.01			0.01			1.15			0.89
Class C Shares3	No Sales Charge		0.01			0.01			1.15			0.89
7-Day Current Yield: 0.01%

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

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

3. As of October 31, 2015, MainStay Money Market Fund had an effective 7-day yield of 0.01% for Investor Class, Class A, B and C shares. The 7-day current

yield was 0.01% for Class A, Investor Class, Class B and C shares. These yields reflect certain expense limitations. Had these expense limitations not been in effect, the effective 7-day yield would have been –0.46%, –0.67%, –0.67%, and –0.67%, for Class A, Investor Class, Class B and C shares, respectively, and the 7-day current yield would have been –0.46%, –0.67%, –0.67% and –0.67%, for Class A, Investor Class, Class B and C shares, respectively. The current yield reflects the Fund’s earnings better than the Fund’s total return.

4. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares would likely have been different.

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

5

Benchmark Performance	One Year	Five Years			Ten Years
Average Lipper Money Market Fund5	0.01%		0.01	%		1.17	%

5. The Average Lipper Money Market Fund is an equally weighted performance average adjusted for capital gains distributions and income dividends of all of the money market funds in the Lipper Universe. Lipper Inc., a wholly-owned subsidiary of Thomson Reuters, is an independent monitor of mutual

fund performance. Results do not reflect any deduction of sales charges. Lipper averages are not class specific. Lipper returns are unaudited. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay Money Market Fund

Cost in Dollars of a $1,000 Investment in MainStay Money Market Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	1,000.10	$	0.71	$	1,024.50	$	0.71
Investor Class Shares	$	1,000.00	$	1,000.10	$	0.71	$	1,024.50	$	0.71
Class B Shares	$	1,000.00	$	1,000.10	$	0.71	$	1,024.50	$	0.71
Class C Shares	$	1,000.00	$	1,000.10	$	0.71	$	1,024.50	$	0.71

1. Expenses are equal to the Fund’s annualized expense ratio of each class (0.14% for Class A, 0.14% for Investor Class, and 0.14% for Class B and Class C) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Portfolio Composition as of October 31, 2015 (Unaudited)

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

8 MainStay Money Market Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Thomas J. Girard and David E. Clement, CFA, of NYL Investors LLC, the Fund’s Subadvisor.

How did MainStay Money Market Fund perform relative to its peers during the 12 months ended October 31, 2015?

As of October 31, 2015, MainStay Money Market Fund provided a 7-day current yield of 0.01% for Class A, Investor Class, Class B and Class C shares. As of the same date, the Fund provided a 7-day effective yield of 0.01% for all share classes. For the 12 months ended October 31, 2015, all share classes returned 0.01%. All share classes performed in line with the 0.01% return of the Average Lipper¹ Money Market Fund for the 12 months ended October 31, 2015. Performance figures for the Fund reflect certain fee waivers and/or expense limitations without which total returns would have been lower.

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

We found it challenging to replace some floating-rate securities that matured during the reporting period. Floating-rate securities, however, continued to offer solid value relative to other credit securities such as commercial paper. During the reporting period, a cloud of uncertainty hung over the market. Money market fund regulation presented one set of questions. The possibility of an increase in the federal funds target rate presented another. These uncertainties contributed to supply challenges during the reporting period. Meanwhile, asset-backed securities with 13-month legal maturities lost some market support. As a result, the Fund held a smaller position in 13-month asset-backed securities at the end of the reporting period, even though they offered higher yields than commercial paper.

What was the Fund’s duration² strategy during the reporting period?

The Fund had a duration of 46 days as of October 31, 2015. This compares to a duration of 45 days at the end of April 2015 and 50 days at the end of October 2014. During the reporting period, we shortened the Fund’s duration slightly in anticipation of a tightening move by the Federal Reserve. However, the anticipated increase in the federal funds target rate did not occur during the reporting period.

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

The Fund made some adjustments during the reporting period in anticipation of a Federal Reserve tightening move. The first

was a slight reduction in duration from 50 days at the beginning of the reporting period to 46 days at the end of October 2015. With a shorter duration, the Fund was positioned to more quickly respond should the Federal Reserve raise the federal funds target rate. In addition, we reduced the Fund’s holdings in higher-yielding asset-backed securities because they tend to have longer durations.

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

The floating-rate securities sector remained the strongest-contributing sector to the Fund’s performance during the reporting period. (Contributions take weightings and total returns into account.) As the LIBOR³ index crept higher during the reporting period, the coupons on these securities reset with higher yields. The spreads on these securities relative to the LIBOR index remained fairly steady during the reporting period. In addition, U.S. Treasury coupon securities with maturities of 12 or 13 months saw their yields rise significantly during the reporting period. The agency discount note sector was particularly weak during the reporting period. Since the agency discount note sector is closely tied to the performance of U.S. Treasury bills, this sector rallied (had lower yields) along with the bills.

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

Some significant purchases during the reporting period included a Toronto-Dominion Bank certificate of deposit floating-rate security maturing on 2/12/2016, a 0.36% coupon Enterprise Fleet Financing Series 2015-1 Class A1 asset-backed security maturing on 12/20/2015 and a 0.375% coupon U.S. Treasury Note maturing on 10/31/2016. There were no significant sales during the period.

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

During the reporting period, the Fund increased its weightings in the agency and commercial paper sectors. The Fund decreased its weightings in certificates of deposits and repurchase agreements.

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

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

3. London InterBank Offered Rate (LIBOR) is an interest rate that is widely used as a reference rate in bank, corporate and government lending agreements.

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

9

Portfolio of Investments October 31, 2015

	Principal Amount		Amortized Cost
Short-Term Investments 99.1%†
Certificates of Deposit 2.0%
Toronto-Dominion Bank (The) 0.287%, due 11/18/15 (a)	$	3,925,000	$	3,925,000
0.344%, due 2/12/16 (a)		4,045,000		4,045,000
				7,970,000
Financial Company Commercial Paper 14.7%
American Express Credit Corp. 0.20%, due 12/9/15 (b)		3,700,000		3,699,219
Caterpillar Financial Services Corp. 0.17%, due 11/23/15 (b)		2,000,000		1,999,792
0.17%, due 12/1/15 (b)		3,000,000		2,999,575
0.17%, due 1/19/16 (b)		3,100,000		3,098,844
Commonwealth Bank of Australia 0.314%, due 4/29/16 (a)(c)		4,100,000		4,100,000
CPPIB Capital, Inc. 0.15%, due 12/9/15 (b)(c)		3,700,000		3,699,414
John Deere Capital Corp. 0.10%, due 12/4/15 (b)(c)		3,500,000		3,499,679
National Rural Utilities Cooperative Finance Corp. 0.11%, due 11/20/15 (b)		1,850,000		1,849,893
0.13%, due 11/10/15 (b)		1,000,000		999,968
Nationwide Life Insurance Co. 0.17%, due 11/4/15 (b)(c)		6,250,000		6,249,911
0.19%, due 11/16/15 (b)(c)		2,875,000		2,874,772
0.19%, due 11/19/15 (b)(c)		4,400,000		4,399,582
Novartis Finance Corp. 0.10%, due 11/24/15 (b)(c)		1,000,000		999,936
0.11%, due 11/10/15 (b)(c)		2,000,000		1,999,945
PACCAR Financial Corp. 0.11%, due 11/24/15 (b)		5,700,000		5,699,599
Schlumberger Investment S.A. 0.17%, due 12/23/15 (b)(c)		6,000,000		5,998,527
Siemens Capital Co., LLC 0.17%, due 12/29/15 (b)(c)		4,500,000		4,498,768
				58,667,424
Government Agency Debt 8.4%
Federal Farm Credit Bank 0.03%, due 11/2/15		4,200,000		4,199,997
Federal Home Loan Bank 0.025%, due 11/4/15		4,000,000		3,999,992
0.06%, due 12/8/15		3,700,000		3,699,772
0.06%, due 12/18/15		7,500,000		7,499,412
Federal Home Loan Mortgage Corp. 0.03%, due 11/6/15		9,000,000		8,999,962
0.05%, due 12/3/15		5,000,000		4,999,778
				33,398,913

	Principal Amount		Amortized Cost
Other Commercial Paper 54.8%
3M Co. 0.10%, due 11/6/15 (b)(c)	$	5,300,000	$	5,299,926
0.11%, due 11/12/15 (b)(c)		6,000,000		5,999,798
Air Products & Chemicals, Inc. 0.14%, due 11/18/15 (b)(c)		1,000,000		999,934
0.15%, due 11/6/15 (b)(c)		3,700,000		3,699,923
Apple, Inc. 0.09%, due 11/10/15 (b)(c)		4,750,000		4,749,893
Archer-Daniels-Midland Co. 0.11%, due 11/16/15 (b)(c)		3,700,000		3,699,830
Army and Air Force Exchange Service 0.13%, due 12/2/15 (b)(c)		3,700,000		3,699,586
Brown-Forman Corp. 0.145%, due 11/3/15 (b)(c)		2,980,000		2,979,976
Chevron Corp. 0.10%, due 12/8/15 (b)(c)		5,625,000		5,624,422
ConocoPhillips Qatar Funding, Ltd. 0.23%, due 1/21/16 (b)(c)		3,600,000		3,598,137
Danaher Corp. 0.16%, due 11/9/15 (b)(c)		6,000,000		5,999,787
EMC Corp. 0.29%, due 11/16/15 (b)(c)		6,000,000		5,999,600
Emerson Electric Co. 0.18%, due 1/25/16 (b)(c)		2,000,000		1,999,150
Exxon Mobil Corp. 0.10%, due 12/7/15 (b)		4,875,000		4,874,513
General Electric Co. 0.11%, due 12/22/15 (b)		11,250,000		11,248,247
Honeywell International, Inc. 0.12%, due 11/13/15 (b)(c)		5,000,000		4,999,800
0.24%, due 12/7/15 (b)(c)		3,900,000		3,899,064
Illinois Tool Works, Inc. 0.09%, due 11/10/15 (b)(c)		9,500,000		9,499,786
International Business Machines Corp. 0.16%, due 12/22/15 (b)(c)		3,695,000		3,694,162
0.18%, due 12/28/15 (b)(c)		4,500,000		4,498,718
John Deere Canada ULC 0.12%, due 11/19/15 (b)(c)		7,300,000		7,299,562
Kimberly-Clark Corp. 0.11%, due 11/12/15 (b)(c)		2,400,000		2,399,919
Microsoft Corp. 0.15%, due 11/12/15 (b)(c)		6,000,000		5,999,725
PepsiCo, Inc. 0.14%, due 11/17/15 (b)(c)		5,000,000		4,999,689
Pfizer, Inc. 0.11%, due 11/3/15 (b)(c)		1,000,000		999,994
0.14%, due 11/17/15 (b)(c)		5,250,000		5,249,673
Praxair, Inc. 0.13%, due 11/4/15 (b)		1,000,000		999,989
0.13%, due 12/2/15 (b)		5,000,000		4,999,440

† Percentages indicated are based on Fund net assets.

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

	Principal Amount		Amortized Cost
Short-Term Investments (continued)
Other Commercial Paper (continued)
Province of British Columbia 0.14%, due 12/4/15 (b)	$	2,400,000	$	2,399,692
Province of Ontario 0.11%, due 12/1/15 (b)		4,500,000		4,499,588
0.13%, due 11/13/15 (b)		6,000,000		5,999,740
0.13%, due 11/20/15 (b)		1,500,000		1,499,897
Province of Quebec 0.13%, due 12/3/15 (b)(c)		5,250,000		5,249,393
0.14%, due 12/2/15 (b)(c)		4,205,000		4,204,493
QUALCOMM, Inc. 0.14%, due 12/3/15 (b)(c)		5,000,000		4,999,378
0.18%, due 1/20/16 (b)(c)		5,500,000		5,497,800
0.19%, due 12/1/15 (b)(c)		1,000,000		999,867
Roche Holdings, Inc. 0.09%, due 11/24/15 (b)(c)		5,500,000		5,499,684
Sanofi 0.20%, due 12/31/15 (b)(c)		4,000,000		3,998,667
Southern California Edison Co. 0.25%, due 11/6/15 (b)(c)		5,700,000		5,699,802
0.25%, due 11/9/15 (b)(c)		1,900,000		1,899,894
0.30%, due 11/5/15 (b)(c)		4,000,000		3,999,867
United Parcel Service, Inc. 0.10%, due 11/3/15 (b)(c)		6,000,000		5,999,967
0.12%, due 12/2/15 (b)(c)		3,500,000		3,499,638
W.W. Grainger, Inc. 0.10%, due 11/3/15 (b)		6,000,000		5,999,967
0.12%, due 11/17/15 (b)		4,100,000		4,099,781
Wal-Mart Stores, Inc. 0.15%, due 11/16/15 (b)(c)		5,250,000		5,249,672
WGL Holdings, Inc. 0.27%, due 11/6/15 (b)(c)		4,000,000		3,999,850
0.27%, due 12/3/15 (b)(c)		3,500,000		3,499,160
				218,808,040
Other Notes 0.1%
Enterprise Fleet Financing LLC Series 2015-1, Class A1 0.36%, due 3/20/16 (c)		535,177		535,177
				535,177
Treasury Debt 12.8%
United States Treasury Bill 0.02%, due 12/31/15		2,500,000		2,499,917
United States Treasury Notes 0.25%, due 11/30/15		4,000,000		4,000,274
0.25%, due 12/31/15		3,970,000		3,970,421
0.25%, due 2/29/16		4,055,000		4,055,527
0.375%, due 1/31/16		4,125,000		4,125,699
0.375%, due 3/31/16		4,000,000		4,001,508
0.375%, due 4/30/16		4,155,000		4,156,264
0.375%, due 5/31/16		4,110,000		4,111,992

	Principal Amount			Amortized Cost
Treasury Debt (continued)
United States Treasury Notes (continued)
0.375%, due 10/31/16	$	3,900,000		$	3,900,000
0.50%, due 6/30/16		4,090,000			4,094,722
0.50%, due 7/31/16		4,105,000			4,110,258
0.50%, due 8/31/16		4,100,000			4,103,311
0.50%, due 9/30/16		3,900,000			3,902,841
					51,032,734
Treasury Repurchase Agreements 6.3%
Bank of America N.A. 0.07%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $10,000,058 (Collateralized by a United States Treasury Bond with a rate of 3.75% and a maturity date of 11/15/43, with a Principal Amount of $8,654,900 and a Market Value of $10,200,021)		10,000,000			10,000,000
TD Securities (U.S.A.) LLC 0.07%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $15,330,089 (Collateralized by a United States Treasury Note with a rate of 3.125% and a maturity date of 5/15/21, with a Principal Amount of $14,345,300 and a Market Value of $15,636,611)		15,330,000			15,330,000
					25,330,000
Total Short-Term Investments (Amortized Cost $395,742,288) (d)		99.1	%		395,742,288
Other Assets, Less Liabilities		0.9			3,488,730
Net Assets		100.0	%	$	399,231,018

(a) Floating rate—Rate shown was the rate in effect as of October 31, 2015.

(b) Interest rate shown represents yield to maturity.

(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) The amortized cost also represents the aggregate cost for federal income tax purposes.

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 October 31, 2015 (continued)

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Short-Term Investments
Certificates of Deposit	$	—	$	7,970,000	$	—	$	7,970,000
Financial Company Commercial Paper		—		58,667,424		—		58,667,424
Government Agency Debt		—		33,398,913		—		33,398,913
Other Commercial Paper		—		218,808,040		—		218,808,040
Other Notes		—		535,177		—		535,177
Treasury Debt		—		51,032,734		—		51,032,734
Treasury Repurchase Agreements		—		25,330,000		—		25,330,000
Total Investments in Securities	$	—	$	395,742,288	$	—	$	395,742,288

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

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

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

The table below sets forth the diversification of MainStay Money Market Fund investments by industry.

Industry Diversification (Unaudited)

	Amortized Cost		Percent †
Agriculture	$	3,699,830		0.9	%
Auto Manufacturers		5,699,599		1.4
Automobile ABS		535,177		0.1
Banks		22,070,000		5.5
Beverages		7,979,665		2.0
Chemicals		10,699,286		2.7
Computers		18,942,373		4.8
Distribution & Wholesale		10,099,748		2.5
Diversified Financial Services		21,879,080		5.5
Electric		11,599,563		2.9
Electrical Components & Equipment		1,999,150		0.5
Electronics		8,898,864		2.2
Finance—Investment Banker/Broker		3,699,414		0.9
Gas		7,499,010		1.9
Health Care—Products		5,999,787		1.5
Health Care—Services		5,499,684		1.4
Household Products & Wares		2,399,919		0.6
Insurance		13,524,265		3.4
Machinery—Construction & Mining		8,098,211		2.0
Machinery—Diversified		10,799,241		2.7
Miscellaneous—Manufacturing		36,546,525		9.2
Oil & Gas		14,097,072		3.5
Oil & Gas Services		5,998,527		1.5
Pharmaceuticals		13,248,215		3.3
Regional (State & Province)		23,852,803		6.0
Retail		8,949,258		2.2
Semiconductors		11,497,045		2.9
Software		5,999,725		1.5
Sovereign		84,431,647		21.2
Transportation		9,499,605		2.4
		395,742,288		99.1
Other Assets, Less Liabilities		3,488,730		0.9
Net Assets	$	399,231,018		100.0	%

† Percentages indicated are based on Fund net assets.

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

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (amortized cost $395,742,288)	$	395,742,288
Cash		324
Receivables:
Investment securities sold		3,950,000
Fund shares sold		1,587,003
Interest		62,871
Manager (See Note 3)		26,017
Other assets		42,589
Total assets		401,411,092
Liabilities			��
Payables:
Fund shares redeemed		2,006,147
Transfer agent (See Note 3)		128,207
Professional fees		19,378
Shareholder communication		17,792
Custodian		2,520
Trustees		1,031
Accrued expenses		4,929
Dividend payable		70
Total liabilities		2,180,074
Net assets	$	399,231,018
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	3,992,778
Additional paid-in capital		395,234,769
		399,227,547
Undistributed net investment income		3,672
Accumulated net realized gain (loss) on investments		(201	)
Net assets	$	399,231,018

Class A
Net assets applicable to outstanding shares	$	243,516,958
Shares of beneficial interest outstanding		243,544,947
Net asset value and offering price per share outstanding	$	1.00
Investor Class
Net assets applicable to outstanding shares	$	56,512,311
Shares of beneficial interest outstanding		56,521,691
Net asset value and offering price per share outstanding	$	1.00
Class B
Net assets applicable to outstanding shares	$	58,152,226
Shares of beneficial interest outstanding		58,159,403
Net asset value and offering price per share outstanding	$	1.00
Class C
Net assets applicable to outstanding shares	$	41,049,523
Shares of beneficial interest outstanding		41,051,800
Net asset value and offering price per share outstanding	$	1.00

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Interest	$	555,606
Expenses
Manager (See Note 3)		1,801,182
Transfer agent (See Note 3)		757,288
Registration		113,528
Professional fees		64,230
Shareholder communication		47,853
Custodian		22,861
Trustees		7,732
Miscellaneous		13,373
Total expenses before waiver/reimbursement		2,828,047
Expense waiver/reimbursement from Manager (See Note 3)		(2,311,160	)
Net expenses		516,887
Net investment income (loss)		38,719
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		(22	)
Net increase (decrease) in net assets resulting from operations	$	38,697

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 years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	38,719		$	35,950
Net realized gain (loss) on investments		(22	)		(179	)
Net increase (decrease) in net assets resulting from operations		38,697			35,771
Dividends to shareholders:
From net investment income:
Class A		(23,334	)		(24,067	)
Investor Class		(5,446	)		(3,771	)
Class B		(6,058	)		(5,247	)
Class C		(3,881	)		(2,865	)
Total dividends to shareholders		(38,719	)		(35,950	)
Capital share transactions:
Net proceeds from sale of shares		511,947,321			475,869,125
Net asset value of shares issued to shareholders in reinvestment of dividends		33,254			34,606
Cost of shares redeemed		(499,776,922	)		(544,735,300	)
Increase (decrease) in net assets derived from capital share transactions		12,203,653			(68,831,569	)
Net increase (decrease) in net assets		12,203,631			(68,831,748	)
Net Assets
Beginning of year		387,027,387			455,859,135
End of year	$	399,231,018		$	387,027,387
Undistributed net investment income at end of year	$	3,672		$	3,223

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income (loss)		0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Net realized and unrealized gain (loss) on investments		(0.00	)‡		(0.00	)‡		0.00	‡		0.00	‡		0.00	‡
Total from investment operations		0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Less dividends:
From net investment income		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡
Net asset value at end of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Net expenses		0.13	%		0.11	%		0.15	%		0.17	%		0.17	%
Expenses (before waiver/reimbursement)		0.64	%		0.64	%		0.65	%		0.69	%		0.71	%
Net assets at end of year (in 000’s)	$	243,517		$	230,330		$	290,028		$	259,119		$	373,790

‡ Less than one cent per share.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income (loss)		0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Net realized and unrealized gain (loss) on investments		(0.00	)‡		(0.00	)‡		0.00	‡		0.00	‡		0.00	‡
Total from investment operations		0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Less dividends:
From net investment income		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡
Net asset value at end of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.01	%		0.01	%		0.01	%		0.00	%‡		0.01	%
Net expenses		0.14	%		0.11	%		0.16	%		0.18	%		0.18	%
Expenses (before waiver/reimbursement)		0.87	%		0.89	%		0.90	%		0.91	%		0.91	%
Net assets at end of year (in 000’s)	$	56,512		$	56,177		$	58,774		$	59,129		$	63,169

‡ Less than one cent per share.

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

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income (loss)		0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Net realized and unrealized gain (loss) on investments		(0.00	)‡		(0.00	)‡		0.00	‡		0.00	‡		0.00	‡
Total from investment operations		0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Less dividends:
From net investment income		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡
Net asset value at end of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Net expenses		0.14	%		0.11	%		0.16	%		0.18	%		0.18	%
Expenses (before waiver/reimbursement)		0.87	%		0.89	%		0.90	%		0.91	%		0.91	%
Net assets at end of year (in 000’s)	$	58,152		$	63,581		$	73,803		$	84,982		$	102,908

‡ Less than one cent per share.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income (loss)		0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Net realized and unrealized gain (loss) on investments		(0.00	)‡		(0.00	)‡		0.00	‡		0.00	‡		0.00	‡
Total from investment operations		0.00	‡		0.00	‡		0.00	‡		0.00	‡		0.00	‡
Less dividends:
From net investment income		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡
Net asset value at end of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total investment return		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Net expenses		0.13	%		0.11	%		0.15	%		0.18	%		0.18	%
Expenses (before waiver/reimbursement)		0.87	%		0.89	%		0.90	%		0.91	%		0.91	%
Net assets at end of year (in 000’s)	$	41,050		$	36,939		$	33,254		$	28,212		$	33,898

‡ Less than one cent per share.

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

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Money Market 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 currently offers four classes of shares at net asset value (“NAV”) without the imposition of a front-end sales charge or a contingent deferred sales charge (“CDSC”). Class A shares commenced operations on January 3, 1995. Class B shares commenced operations on May 1, 1986. Class C shares commenced operations on September 1, 1998. Investor Class shares commenced operations on February 28, 2008. 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. Additionally, depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The four classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions.

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

(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, as amended. 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.

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The

Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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 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.)

19

Notes to Financial Statements (continued)

• 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 October 31, 2015 the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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 market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund may utilize some of the following fair value techniques: multi-dimensional relational pricing models and option adjusted spread pricing. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

(C)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(D)  Dividends and Distributions to Shareholders.  Dividends and distributions are recorded on the ex-dividend date. Dividends, if

any, are declared daily and paid monthly and distributions from net realized capital and currency gains, if any, are declared and paid at least annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(E)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Interest income is accrued daily and discounts and premiums on securities purchased for the Fund are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

(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, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(H)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

20 MainStay Money Market Fund

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

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

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

Note 3–Fees and Related Party Transactions

(A)  Manager and Subadvisor.  New York Life 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 a portion of the compensation of the Chief Compliance Officer of the Fund. NYL Investors LLC (“NYL Investors” or the “Subadvisor”), a registered investment adviser and a direct, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of the Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and NYL Investors, New York Life Investments pays for the services of the Subadvisor.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.45% up to $500 million; 0.40% from $500 million to $1 billion; and 0.35% in excess of $1 billion, plus a fee for fund accounting services previously provided by New York Life Investments under a separate fund accounting agreement furnished at an annual rate of the Fund’s average

daily net assets as follows: 0.05% up to $20 million; 0.0333% on from $20 million to $100 million; and 0.01% in excess of $100 million. During the year ended October 31, 2015, the effective management fee rate (exclusive of any applicable waivers/reimbursement) was 0.47% inclusive of a fee for fund accounting services of 0.02% 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 do not exceed the following percentages of average daily net assets: Class A, 0.70%; Investor Class, 0.80%; Class B, 0.80%; and Class C, 0.80%. This agreement will remain in effect until February 28, 2016, 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 by the Board.

New York Life Investments may limit expenses of the Fund to the extent it deems appropriate to enhance the yield of the Fund, or a particular class of the Fund, during periods when expenses have a significant impact on the yield of the Fund, or a particular class of the Fund, as applicable, because of low interest rates. This expense limitation policy is voluntary and in addition to any contractual arrangements that may be in place with respect to the Fund and described in the Fund’s prospectus. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $1,801,182 and waived its fees and/or reimbursed expenses in the amount of $107,380. Additionally, New York Life Investments reimbursed fees in the amount of $2,203,780, without these reimbursements, the Fund’s total returns would have been lower.

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

(B)  Sales Charges.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A shares were $105. Although the Fund does not assess a CDSC upon redemption of Class B or Class C shares of the Fund, the applicable CDSC will be assessed when shares are redeemed from the Fund if the shareholder previously exchanged his or her investment into the Fund from another fund within the MainStay Group of Funds. During the year ended October 31, 2015, the Fund was advised that NYLIFE Distributors LLC (the “Distributor”), an indirect wholly owned subsidiary of New York Life, received from shareholders the proceeds from CDSCs of Class A, Investor Class, Class B and Class C of $32,788, $2,854, $78,696 and $40,938, respectively.

(C)  Transfer, Dividend Disbursing and Shareholder Servicing Agent.   NYLIM Service Company LLC, an affiliate of

21

Notes to Financial Statements (continued)

New York Life Investments, is the Fund’s transfer, dividend disbursing and shareholder servicing agent pursuant to an agreement between NYLIM Service Company LLC and the Trust. NYLIM Service Company LLC has entered into an agreement with Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	245,584
Investor Class		181,186
Class B		201,619
Class C		128,899

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

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)			Other Temporary Differences			Unrealized Appreciation (Depreciation)		Total Accumulated Gain (Loss)
$3,742	$	(201	)	$	(70	)	$	—	$	3,471

The other temporary differences are primarily due to dividends payable.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments	Additional Paid-In Capital
$449	$—	$(449)

The reclassifications for the Fund are primarily due to nondeductible expenses.

As of October 31, 2015, for federal income tax purposes, capital loss carryforwards of $201 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No

capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss Available Through	Short-Term Capital Loss Amounts		Long-Term Capital Loss Amounts
Unlimited	$	201	$	—

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	38,719	$	35,950

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 6–Capital Share Transactions

Class A (at $1 per share)	Shares
Year ended October 31, 2015:
Shares sold		383,202,123
Shares issued to shareholders in reinvestment of dividends and distributions		21,773
Shares redeemed		(374,298,971	)
Net increase (decrease) in shares outstanding before conversion		8,924,925
Shares converted into Class A (See Note 1)		8,664,349
Shares converted from Class A (See Note 1)		(4,401,864	)
Net increase (decrease)		13,187,410
Year ended October 31, 2014:
Shares sold		359,031,660
Shares issued to shareholders in reinvestment of dividends and distributions		23,076
Shares redeemed		(424,301,318	)
Net increase (decrease) in shares outstanding before conversion		(65,246,582	)
Shares converted into Class A (See Note 1)		10,053,216
Shares converted from Class A (See Note 1)		(4,504,688	)
Net increase (decrease)		(59,698,054	)

22 MainStay Money Market Fund

Investor Class (at $1 per share)	Shares
Year ended October 31, 2015:
Shares sold		47,654,579
Shares issued to shareholders in reinvestment of dividends and distributions		3,579
Shares redeemed		(43,279,103	)
Net increase (decrease) in shares outstanding before conversion		4,379,055
Shares converted into Investor Class (See Note 1)		4,521,490
Shares converted from Investor Class (See Note 1)		(8,565,508	)
Net increase (decrease)		335,037
Year ended October 31, 2014:
Shares sold		46,827,484
Shares issued to shareholders in reinvestment of dividends and distributions		3,665
Shares redeemed		(43,976,173	)
Net increase (decrease) in shares outstanding before conversion		2,854,976
Shares converted into Investor Class (See Note 1)		4,563,981
Shares converted from Investor Class (See Note 1)		(10,016,128	)
Net increase (decrease)		(2,597,171	)
Class B (at $1 per share)	Shares
Year ended October 31, 2015:
Shares sold		14,563,454
Shares issued to shareholders in reinvestment of dividends and distributions		4,636
Shares redeemed		(19,778,547	)
Net increase (decrease) in shares outstanding before conversion		(5,210,457	)
Shares converted from Class B (See Note 1)		(218,467	)
Net increase (decrease)		(5,428,924	)
Year ended October 31, 2014:
Shares sold		14,408,433
Shares issued to shareholders in reinvestment of dividends and distributions		5,163
Shares redeemed		(24,539,390	)
Net increase (decrease) in shares outstanding before conversion		(10,125,794	)
Shares converted from Class B (See Note 1)		(96,380	)
Net increase (decrease)		(10,222,174	)
Class C (at $1 per share)	Shares
Year ended October 31, 2015:
Shares sold		66,527,165
Shares issued to shareholders in reinvestment of dividends and distributions		3,266
Shares redeemed		(62,420,301	)
Net increase (decrease)		4,110,130
Year ended October 31, 2014:
Shares sold		55,601,428
Shares issued to shareholders in reinvestment of dividends and distributions		2,702
Shares redeemed		(51,918,419	)
Net increase (decrease)		3,685,711

Note 7–Money Market Fund Regulatory Matters

On July 23, 2014, the SEC voted to amend the rules under the 1940 Act that currently govern the operations of the Fund. The majority of these amendments, except for certain disclosure enhancements, will not take effect until October 2016. A significant change resulting from these amendments is a requirement that institutional (i.e., not retail as defined in the amendments) prime, including institutional municipal money market funds, transact fund shares based on a market-based Net Asset Value (NAV), although other types of money market funds may continue to transact fund shares at an NAV calculated using the amortized cost valuation method. Among other requirements, the amendments also will permit a money market fund or, in certain circumstances, require a money market fund (other than a government money market fund which satisfies the requirements of the amended rules) to impose liquidity fees on all redemptions, and permit a money market fund to limit (or gate) redemptions for up to 10 business days in any 90-day period. The degree to which a money market fund will be impacted by the rule amendments will depend upon the type of fund and type of investors (retail or institutional). At this time, Fund management is evaluating the implications of these amendments and their impact on the Fund, including potential effects on the Fund’s operations and returns.

Note 8–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 9–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

23

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Money Market Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Money Market Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

24 MainStay Money Market Fund

Federal Income Tax Information

(Unaudited)

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

25

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

26 MainStay Money Market Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

27

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

28 MainStay Money Market Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

29

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

30 MainStay Money Market Fund

MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673151 MS291-15 MSMM11-12/15 (NYLIM) NL214

MainStay Tax Free Bond Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	23
Notes to Financial Statements	29
Report of Independent Registered Public Accounting Firm	37
Federal Income Tax Information	38
Proxy Voting Policies and Procedures and Proxy Voting Record	38
Shareholder Reports and Quarterly Portfolio Disclosure	38
Board of Trustees, Officers and Advisory Board Members	39

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

Investment and Performance Comparison¹(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–2.04 2.58	%		4.19 5.15	%		4.02 4.50	%		0.78 0.78	%
Investor Class Shares3	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–2.14 2.47			4.12 5.08			3.96 4.44			0.84 0.84
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–2.74 2.21			4.47 4.81			4.17 4.17			1.09 1.09
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		1.32 2.31			4.83 4.83			4.18 4.18			1.09 1.09
Class I Shares4	No Sales Charge			2.83			5.41			4.74			0.53

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class I shares, first offered on December 21, 2009, include the historical performance of Class B shares through December 20, 2009, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Class I shares would likely have been different.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
Barclays Municipal Bond Index5		2.87	%		4.28	%		4.74	%
Average Lipper General & Insured Municipal Debt Fund6		2.48			4.25			4.09

5. The Barclays 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. The Barclays Municipal Bond Index is the Fund’s broad-based securities market index for comparison purposes. Total returns assume the reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

6. The Average Lipper General & Insured Municipal Debt Fund is representative of funds that, by portfolio practice, either invest primarily in municipal debt issues rated in the top four credit ratings or invest primarily in municipal debt issues insured as to timely payment. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay Tax Free Bond Fund

Cost in Dollars of a $1,000 Investment in MainStay Tax Free Bond Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	1,012.50	$	4.26	$	1,021.00	$	4.28
Investor Class Shares	$	1,000.00	$	1,012.70	$	4.16	$	1,021.10	$	4.18
Class B Shares	$	1,000.00	$	1,011.30	$	5.42	$	1,019.80	$	5.45
Class C Shares	$	1,000.00	$	1,011.40	$	5.42	$	1,019.80	$	5.45
Class I Shares	$	1,000.00	$	1,013.80	$	2.99	$	1,022.20	$	3.01

1. Expenses are equal to the Fund’s annualized expense ratio of each class (0.84% for Class A, 0.82% for Investor Class, 1.07% for Class B and Class C and 0.59% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Portfolio Composition as of October 31, 2015 (Unaudited)

California	14.1	%
New York	10.0
Illinois	9.5
Texas	8.6
Michigan	6.9
Puerto Rico	6.5
Ohio	3.5
Florida	2.8
Connecticut	2.6
Pennsylvania	2.6
Louisiana	2.3
U.S. Virgin Islands	2.3
Guam	2.2
New Jersey	2.1
District of Columbia	1.9
Rhode Island	1.9
South Carolina	1.9
Georgia	1.8
Nebraska	1.8
Tennessee	1.4
Hawaii	1.3
Indiana	1.2

Massachusetts	1.1	%
Kansas	0.8
Wisconsin	0.5
Colorado	0.4
North Carolina	0.4
Washington	0.4
Alaska	0.3
Maryland	0.3
North Dakota	0.3
Kentucky	0.2
Idaho	0.2
Arizona	0.1
New Hampshire	0.1
New Mexico	0.1
South Dakota	0.1
Wyoming	0.1
Missouri	0.0	‡
Oklahoma	0.0	‡
Utah	0.0	‡
Other Assets, Less Liabilities	5.4
	100.0	%

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

‡ Less than one-tenth of a percent.

Top Ten Issuers Held as of October 31, 2015 (Unaudited)

1. Puerto Rico Highways & Transportation Authority, Revenue Bonds, 5.00%–5.50%, due 7/1/21–7/1/36

2. North Texas Tollway Authority, Revenue Bonds, 5.00%–6.00%, due 1/1/34–9/1/41

3. Chicago, Wastewater Transmission, Revenue Bonds, 5.00%, due 1/1/28–1/1/44

4. Central Plains Energy, Project No. 3, Revenue Bonds, 5.00%–5.25%, due 9/1/37–9/1/42

5. Tobacco Settlement Financing Corp., Revenue Bonds, 5.00%, due 6/1/35–6/1/40

  6. American Municipal Power, Inc., Prairie Energy Campus, Revenue Bonds, 5.25%, due 2/15/30–2/15/31

  7. Detroit, Michigan Water and Sewerage Department, Senior Lien, Revenue Bonds, 5.25%–7.00%, due 7/1/27–7/1/39

  8. Texas Municipal Gas Acquisition & Supply Corp. III, Revenue Bonds, 5.00%, due 12/15/30–12/15/31

  9. Virgin Islands Public Finance Authority, Revenue Bonds, 5.00%, due 10/1/32–10/1/39

10. Chicago Board of Education, Unlimited General Obligation, 5.50%, due 12/1/39

8 MainStay Tax Free Bond Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers John Loffredo, CFA, Robert DiMella, CFA, Michael Petty, David Dowden, Scott Sprauer and Frances Lewis of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay Tax Free Bond Fund perform relative to its primary benchmark and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay Tax Free Bond Fund returned 2.58% for Class A shares, 2.47% for Investor Class shares, 2.21% for Class B shares and 2.31% for Class C shares for the 12 months ended October 31, 2015. Over the same period, Class I shares returned 2.83%. For the 12 months ended October 31, 2015, all share classes underperformed the 2.87% return of the Barclays Municipal Bond Index,¹ which is the Fund’s broad-based securities-market index. Over the same period, Class A and Class I shares outperformed—and Investor Class, Class B and Class C shares underperformed—the 2.48% return of the Average Lipper² General & Insured Municipal Debt Fund. See page 5 for Fund returns with applicable sales charges.

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

Security selection contributed to the Fund’s underperformance relative to the Barclays Municipal Bond Index, even though spreads³ compressed in many California, Michigan, Puerto Rico and Texas credits across various sectors. (Contributions take weightings and total returns into account.) Spread compression in overweight positions generally tends to help relative performance. The Fund was positioned with a longer-maturity, lower-quality investment-grade rating profile than the Barclays Municipal Bond Index. This strategy contributed positively to the Fund’s relative performance during the reporting period, as credit spreads narrowed and the municipal yield curve⁴ flattened. Detracting from performance relative to the Index was the weakness in certain of the Fund’s Chicago credits, specifically general obligation and public school credits, which were also held in the Index.

What was the Fund’s duration⁵ during the reporting period?

The Fund’s duration during the reporting period remained closely in line with that of the Barclays Municipal Bond Index. We made slight adjustments for favorable technical and other movements relative to U.S. Treasury securities but remained within 10% of the duration of the Index. As of October 31,

2015, the Fund’s modified duration to worst⁶ was approximately 5.1 years.

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

Most of the Fund’s activity during the reporting period stemmed from positive cash flows entering the Fund. We were able to buy securities in the primary market that we felt were attractively priced, and the Fund continued to maintain a high degree of liquidity during the reporting period because of a lack of committed capital from our broker/dealer counterparties.

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

The most substantial positive contributions to the Fund’s performance during the reporting period came from overweight positions among longer-maturity issues and securities with greater credit sensitivity. An overweight position in bonds wrapped (i.e., insured) by insurers also added to performance, as these securities outperformed the Index. Detroit water and sewer bonds, as well as insured Puerto Rico securities, also contributed to performance. Exposure to certain Chicago credits was the most significant detractor from the Fund’s performance.

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

We reduced the Fund’s weightings in several sectors after strong outperformance relative to the Barclays Municipal Bond Index. Sectors that we reduced included local general obligation bonds, transportation bonds and hospital bonds. From a state perspective, we decreased the Fund’s overweight position relative to the Barclays Municipal Bond Index in California in light of the continued strength of the Fund’s California holdings. We increased the Fund’s weight in insured bonds, especially bonds insured by BAM (Build America Mutual).

1. See footnote on page 6 for more information on the Barclays Municipal Bond Index.

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

3. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time. The term “credit spread” typically refers to the difference in yield between corporate or municipal bonds (or a specific category of these bonds) and comparable U.S. Treasury issues.

4. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.

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

6. Modified duration is inversely related to the approximate percentage change in price for a given change in yield. Duration to worst is the duration of a bond computed using the bond’s nearest call date or maturity, whichever comes first. This measure ignores future cash flow fluctuations due to embedded optionality.

9

How was the Fund positioned at the end of the reporting period?

As of October 31, 2015, the Fund was overweight relative to the Barclays Municipal Bond Index in the local general obligation, special tax and hospital sectors. From a quality perspective, the Fund still favored credits rated AA (enhanced), A and BBB⁷ at the end of the reporting period. As of October 31, 2015, the Fund’s duration was slightly longer than that of the Index.

7. An obligation rated ‘AA’ by Standard & Poor’s (“S&P”) is deemed by S&P to differ from the highest-rated obligations only to a small degree. In the opinion of S&P, the obligor’s capacity to meet its financial commitment on the obligation is very strong. An obligation rated ‘A’ by S&P is deemed by S&P to be somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. In the opinion of S&P, however, the obligor’s capacity to meet its financial commitment on the obligation is still strong. An obligation rated ‘BBB’ by S&P is deemed by S&P to exhibit adequate protection parameters. It is the opinion of S&P, however, that adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.

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

10 MainStay Tax Free Bond Fund

Portfolio of Investments October 31, 2015

	Principal Amount		Value
Municipal Bonds 94.6%†
Alaska 0.3%
Alaska Industrial Development & Export Authority, FairBanks Community Hospital, Revenue Bonds 5.00%, due 4/1/32	$	3,550,000	$	3,898,858
Arizona 0.1%
Arizona Health Facilities Authority, Phoenix Children’s Hospital, Revenue Bonds Series A 5.00%, due 2/1/42		1,000,000		1,055,630
California 14.1%
Anaheim Public Financing Authority, Public Improvement Project, Revenue Bonds Series A-1, Insured: NATL-RE 4.75%, due 9/1/33		15,675,000		16,535,244
Anaheim, California, School District, Unlimited General Obligation Insured: AGM 6.25%, due 8/1/40		4,700,000		5,786,687
Antelope Valley Community College District, Unlimited General Obligation 5.00%, due 8/1/39		10,000,000		11,311,500
California Educational Facilities Authority, Revenue Bonds 6.125%, due 10/1/30		1,525,000		1,869,482
California Health Facilities Financing Authority, Catholic Healthcare, Revenue Bonds Series A 6.00%, due 7/1/34		3,000,000		3,439,620
California State Public Works Board, Capital Projects, Revenue Bonds Series I-1 6.625%, due 11/1/34		1,085,000		1,090,848
California State Public Works Revenue, Various Capital Project, Revenue Bonds Series G1 5.75%, due 10/1/30		1,400,000		1,635,830
California State, Unlimited General Obligation
6.00%, due 11/1/35		2,500,000		2,984,925
6.25%, due 11/1/34		4,000,000		4,818,480
California Statewide Communities Development Authority, Aspire Public Schools, Revenue Bonds 6.375%, due 7/1/45		1,530,000		1,633,856

	Principal Amount		Value
California (continued)
California Statewide Communities Development Authority, Revenue Bonds 5.25%, due 11/1/30	$	1,475,000	$	1,672,060
Ceres Unified School District, Unlimited General Obligation Series A (zero coupon), due 8/1/37		4,150,000		1,099,169
City of Escondido, CA, Unlimited General Obligation 5.00%, due 9/1/36		5,000,000		5,740,500
City Of Long Beach, CA, Airport System, Revenue Bonds Series A 5.00%, due 6/1/30		5,000,000		5,663,300
Fontana Public Finance Authority, Revenue Bonds Series A, Insured: BAM 5.00%, due 9/1/32		2,640,000		2,957,803
Fontana Unified School District, Unlimited General Obligation
Series C (zero coupon), due 8/1/35		14,800,000		5,831,644
Series C (zero coupon), due 8/1/36		15,500,000		5,665,870
Fresno, California Unified School District Education, Unlimited General Obligation
Series G (zero coupon), due 8/1/32		6,000,000		2,427,840
Series G (zero coupon), due 8/1/33		10,000,000		3,754,000
Series G (zero coupon), due 8/1/41		23,485,000		5,024,851
Golden State Tobacco Securitization Corp., Asset Backed, Revenue Bonds Series A, Insured: AGM 5.00%, due 6/1/40		20,000,000		22,355,600
Hayward Unified School District, Unlimited General Obligation
Series A, Insured: AGM (zero coupon), due 8/1/36		12,500,000		3,783,500
Series A, Insured: AGM (zero coupon), due 8/1/37		7,000,000		1,970,080
Merced Union High School District, Cabs-Election, Unlimited General Obligation Series C (zero coupon), due 8/1/46		53,000,000		8,162,530

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest issuers held, as of October 31, 2015. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Principal Amount		Value
Municipal Bonds (continued)
California (continued)
Oakland Unified School District, Alameda County, Unlimited General Obligation
Insured: AGM 5.00%, due 8/1/27	$	1,160,000	$	1,361,388
Insured: AGM 5.00%, due 8/1/28		1,755,000		2,042,276
Insured: AGM 5.00%, due 8/1/29		2,535,000		2,930,663
Oceanside, California Unified School District, Capital Appreciation Election, Unlimited General Obligation Series B, Insured: AGM (zero coupon), due 8/1/49		11,555,000		1,337,607
Palomar Pomerado Health Election, Unlimited General Obligation Series A, Insured: AMBAC 5.00%, due 8/1/34		7,500,000		7,511,175
Paramount Unified School District, Unlimited General Obligation Insured: BAM (zero coupon), due 8/1/43		25,000,000		5,041,250
Pomona Unified School District, Election 2008, Unlimited General Obligation Series E, Insured: AGM 5.00%, due 8/1/30		3,285,000		3,703,016
Port of Los Angeles, Harbor Department, Revenue Bonds Series A 5.00%, due 8/1/36 (a)		1,000,000		1,128,270
Riverside County Transportation Commission, Revenue Bonds Series A 5.25%, due 6/1/30		3,000,000		3,585,120
Sacramento Unified School District, General Obligation Insured: AGM 5.00%, due 7/1/31		3,955,000		4,434,821
San Bernardino City Unified School District, Election, Unlimited General Obligation Series A, Insured: AGM 5.00%, due 8/1/30		1,000,000		1,147,070
San Diego Public Facilities Financing Authority, Capital Improvement Projects, Revenue Bonds Series A 5.00%, due 10/15/44		4,000,000		4,394,800
San Lorenzo, California Unified School District, Unlimited General Obligation Series B 6.00%, due 8/1/41		4,535,000		5,470,117

	Principal Amount		Value
California (continued)
San Ysidro School District, Unlimited General Obligation
Insured: AGM (zero coupon), due 8/1/45	$	10,000,000	$	2,229,400
Series F, Insured: AGM (zero coupon), due 8/1/48		25,705,000		3,103,879
Santa Ana Unified School District, Unlimited General Obligation Series B, Insured: GTY (zero coupon), due 8/1/47		50,000,000		12,329,000
Santa Clara Valley Transportation Authority, Revenue Bonds Series A 5.00%, due 4/1/35		3,900,000		4,546,269
Southern California Public Power Authority, Apex Power Project, Revenue Bonds Series A 5.00%, due 7/1/33		5,500,000		6,393,255
Twin Rivers Unified School District, Unlimited General Obligation Insured: AGM (zero coupon), due 8/1/32		5,350,000		2,726,253
Val Verde Unified School District, Election 2012, Unlimited General Obligation Series A, Insured: BAM 5.00%, due 8/1/38		4,890,000		5,497,044
Westminster School District, CABS, Election 2008, Unlimited General Obligation
Series B, Insured: BAM (zero coupon), due 8/1/48		13,900,000		1,916,949
Series B, Insured: BAM (zero coupon), due 8/1/53		6,500,000		596,505
				210,641,346
Colorado 0.4%
Colorado Health Facilities Authority, Evangelical Lutheran Good Sama, Revenue Bonds 5.625%, due 6/1/43		3,280,000		3,613,281
Park Creek Metropolitan District, Revenue Bonds Series A, Insured: AGM 6.125%, due 12/1/41		1,600,000		1,881,616
				5,494,897
Connecticut 2.6%
Connecticut State Health & Educational Facility Authority, Quinnipiac University, Revenue Bonds Series L 5.00%, due 7/1/32		10,425,000		11,716,136

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

	Principal Amount		Value
Municipal Bonds (continued)
Connecticut (continued)
Hartford, CT, Unlimited General Obligation
Series A 5.00%, due 4/1/28	$	2,500,000	$	2,840,325
Series A 5.00%, due 4/1/29		1,250,000		1,438,985
Series A, Insured: AGM 5.00%, due 4/1/32		275,000		314,416
Series C, Insured: AGM 5.00%, due 7/15/32		7,470,000		8,378,651
Series C, Insured: AGM 5.00%, due 7/15/34		2,500,000		2,786,675
State of Connecticut Special Tax Revenue, Transportation Infrastructure, Revenue Bonds Series A 5.00%, due 9/1/30		5,000,000		5,825,800
State of Connecticut, Unlimited General Obligation Series B 5.00%, due 6/15/32		5,000,000		5,785,200
				39,086,188
District of Columbia 1.9%
District of Columbia, Friendship Public Charter School, Inc., Revenue Bonds
5.00%, due 6/1/32		1,125,000		1,185,176
5.00%, due 6/1/42		5,500,000		5,708,560
District of Columbia, KIPP Charter School, Revenue Bonds
6.00%, due 7/1/43		1,000,000		1,143,470
6.00%, due 7/1/48		1,575,000		1,789,767
District of Columbia, Tax Allocation 5.00%, due 6/1/27		525,000		584,073
Metropolitan Washington Airports Authority, Revenue Bonds
Series C, Insured: GTY (zero coupon), due 10/1/41 (c)		8,000,000		9,625,280
Series B (zero coupon), due 10/1/44 (c)		7,140,000		7,663,077
				27,699,403
Florida 2.8%
City of Orlando, Tourist Development Tax Revenue, 3rd Lien, 6th Cent Contract, Revenue Bonds Insured: GTY 5.50%, due 11/1/38		15,000,000		15,741,600
City of Tampa, University of Tampa Project, Revenue Bonds 5.00%, due 4/1/40		2,000,000		2,162,140

	Principal Amount		Value
Florida (continued)
Miami-Dade County Florida Aviation, Miami International Airport, Revenue Bonds Series A, Insured: AGM 5.25%, due 10/1/41 (a)	$	11,000,000	$	11,950,730
Miami-Dade County Florida Solid Waste System, Revenue Bonds Insured: NATL-RE 5.00%, due 10/1/19		1,735,000		1,742,131
Miami-Dade County Florida, Jackson Health System, Revenue Bonds Series A, Insured: BAM 5.00%, due 6/1/33		3,375,000		3,819,926
Miami-Dade County Florida, Revenue Bonds
Series A, Insured: NATL-RE (zero coupon), due 10/1/36		10,000,000		3,395,900
Series A, Insured: NATL-RE (zero coupon), due 10/1/37		10,000,000		3,218,200
Series A, Insured: NATL-RE (zero coupon), due 10/1/38		245,000		74,703
				42,105,330
Georgia 1.8%
Atlanta Development Authority, Revenue Bonds Series A-1 5.25%, due 7/1/44		10,000,000		11,442,300
Atlanta, Georgia Water & Wastewater, Revenue Bonds 5.00%, due 11/1/40		3,000,000		3,405,240
Fulton County Georgia Development Authority, Piedmont Healthcare, Inc., Revenue Bonds Series A 5.00%, due 6/15/32		1,700,000		1,844,517
Heard County Development Authority, Georgia Power Co., Revenue Bonds 0.12%, due 12/1/37 (a)(b)		9,600,000		9,600,000
				26,292,057
Guam 2.2%
Antonio B Won Pat International Airport Authority, Guam Airport, Revenue Bonds
Series C 5.00%, due 10/1/21 (a)		4,500,000		4,984,695
Series C, Insured: AGM 6.125%, due 10/1/43 (a)		5,000,000		5,810,700

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 October 31, 2015 (continued)

	Principal Amount		Value
Municipal Bonds (continued)
Guam (continued)
Guam Government, Revenue Bonds
Series D 5.00%, due 11/15/35	$	8,350,000	$	9,209,215
Series A 5.25%, due 1/1/36		2,000,000		2,193,760
Series A 6.50%, due 11/1/40		2,700,000		3,239,730
Guam Power Authority, Revenue Bonds
Series A, Insured: AGM 5.00%, due 10/1/30		5,610,000		6,518,091
Series A, Insured: AGM 5.00%, due 10/1/44		655,000		739,331
				32,695,522
Hawaii 1.3%
Hawaii State Department of Budget and Finance, Hawaiian Electric Co., Revenue Bonds 6.50%, due 7/1/39		3,000,000		3,404,580
Hawaii State Department of Budget and Finance, Queens Health System, Revenue Bonds Series A 5.00%, due 7/1/35		13,890,000		15,769,039
				19,173,619
Idaho 0.2%
Idaho Health Facilities Authority, Trinity Health, Revenue Bonds Series D 5.50%, due 12/1/29		2,610,000		3,233,503
Illinois 9.5%
¨Chicago Board of Education, Unlimited General Obligation
Series A 5.50%, due 12/1/39		10,000,000		9,235,300
Series A, Insured: AGM 5.50%, due 12/1/39		12,750,000		13,290,727
Chicago, Illinois Motor Fuel Tax, Revenue Bonds Insured: AGM 5.00%, due 1/1/33		4,725,000		4,990,545
Chicago, Illinois O’ Hare International Airport, Revenue Bonds
Series A Insured: NATL-RE 5.00%, due 1/1/31		2,905,000		2,910,549
Series A, Insured: AGM 5.00%, due 1/1/33		7,000,000		7,466,620
Series D 5.25%, due 1/1/29		7,555,000		8,622,975
Series A 5.625%, due 1/1/35		1,950,000		2,259,094

	Principal Amount		Value
Illinois (continued)
¨Chicago, Wastewater Transmission, Revenue Bonds
5.00%, due 1/1/28	$	1,000,000	$	1,087,940
5.00%, due 11/1/29		1,000,000		1,084,420
5.00%, due 1/1/33		2,000,000		2,116,660
5.00%, due 1/1/39		8,420,000		8,815,993
5.00%, due 1/1/44		14,340,000		14,974,258
Cook County Community College District No 508, City College Chicago, Unlimited General Obligation 5.50%, due 12/1/38		5,000,000		5,653,700
Illinois Finance Authority, Rehab Institute of Chicago, Revenue Bonds Series A 6.00%, due 7/1/43		9,600,000		11,268,576
Illinois Finance Authority, Swedish Covenant, Revenue Bonds Series A 5.75%, due 8/15/29		6,175,000		6,868,205
Illinois Sports Facilities Authority, Revenue Bonds Insured: AGM 5.25%, due 6/15/31		5,000,000		5,467,150
Knox & Warren Counties, Illinois Community Unit School District No. 205 Galesburg, Unlimited General Obligation
Series A 4.25%, due 1/1/19		240,000		259,498
Series A 5.00%, due 1/1/20		205,000		231,408
Metropolitan Pier & Exposition Authority, McCormick Place Expansion, Revenue Bonds Series A 5.50%, due 6/15/50		9,730,000		10,185,364
Northern Illinois Municipal Power Agency, Prairie State Project, Revenue Bonds Series A, Insured: NATL-RE 5.00%, due 1/1/37		7,000,000		7,438,900
State of Illinois, Housing & Auxiliary Facilities System, Revenue Bonds
Series B, Insured: BAM 5.00%, due 4/1/26		1,175,000		1,364,492
Series B, Insured: BAM 5.00%, due 4/1/29		1,620,000		1,831,556
Series B, Insured: BAM 5.00%, due 4/1/30		1,000,000		1,120,310
State of Illinois, Unlimited General Obligation 5.00%, due 8/1/20		10,890,000		11,940,232

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

	Principal Amount		Value
Municipal Bonds (continued)
Illinois (continued)
Village of Bellwood IL, Unlimited General Obligation Insured: AGM 5.00%, due 12/1/29	$	1,500,000	$	1,707,555
				142,192,027
Indiana 1.2%
Indiana State Finance Authority, Butler University, Revenue Bonds
Series B 5.00%, due 2/1/24		2,100,000		2,429,805
Series A 5.00%, due 2/1/25		4,425,000		5,098,131
Series B 5.00%, due 2/1/26		2,320,000		2,653,686
Indiana State Finance Authority, Republic Serives, Inc., Revenue Bonds Series B 0.50%, due 5/1/28 (b)		6,000,000		6,000,000
Indianapolis, Indiana Public Improvement Bond Bank, Revenue Bonds Series A, Insured: GTY 5.50%, due 1/1/38		1,100,000		1,244,078
			��
				17,425,700
Kansas 0.8%
University of Kansas Hospital Authority, Revenue Bonds
5.00%, due 9/1/33		2,500,000		2,813,000
5.00%, due 9/1/34		5,000,000		5,617,150
5.00%, due 9/1/35		2,800,000		3,138,184
				11,568,334
Kentucky 0.2%
Kentucky Municipal Power Agency, Revenue Bonds Series A, Insured: NATL-RE 5.00%, due 9/1/42		3,250,000		3,609,710
Louisiana 2.3%
Jefferson Parish, Louisiana Hospital Service District No. 1, West Jefferson Medical Center, Revenue Bonds Series A, Insured: AGM 6.00%, due 1/1/39		3,695,000		4,528,296
Louisiana Local Government Environmental Facilities & Community Development Authority, Local Communities Act 360, Revenue Bonds 5.00%, due 10/1/37		10,000,000		11,132,300
Louisiana Public Facilities Authority, Dynamic Fuels LLC Project, Revenue Bonds 0.01%, due 10/1/33 (b)		7,900,000		7,900,000

	Principal Amount		Value
Louisiana (continued)
Louisiana Public Facilities Authority, Ochsner Clinic, Revenue Bonds 6.25%, due 5/15/31	$	5,690,000	$	6,768,255
Louisiana State Citizens Property Insurance Corp., Revenue Bonds
Series B, Insured: AMBAC 5.00%, due 6/1/20		2,340,000		2,404,748
Series C-3, Insured: GTY 6.125%, due 6/1/25		1,000,000		1,125,840
				33,859,439
Maryland 0.3%
Maryland Health and Higher Educational Facilities Authority, Peninsula Regional Medical Center, Revenue Bonds 5.00%, due 7/1/39		3,600,000		3,959,640
Massachusetts 1.1%
Massachusetts Educational Financing Authority, Revenue Bonds
Series B 5.70%, due 1/1/31 (a)		1,550,000		1,662,483
Series I 6.00%, due 1/1/28		2,080,000		2,209,522
Massachusetts State Health & Educational Facilities Authority, Suffolk University, Revenue Bonds
Series A 6.00%, due 7/1/24		2,000,000		2,296,000
Series A 6.25%, due 7/1/30		6,400,000		7,374,784
Metropolitan Boston Transit Parking Corp., Revenue Bonds 5.25%, due 7/1/36		2,000,000		2,314,600
				15,857,389
Michigan 6.9%
Detroit, Michigan Distribution State Aid, General Obligation Limited 5.25%, due 11/1/35		5,200,000		5,574,868
Detroit, Michigan Sewerage Disposal System, Revenue Bonds Series A, Insured: NATL-RE 5.25%, due 7/1/20		2,000,000		2,097,040
¨Detroit, Michigan Water and Sewerage Department, Senior Lien, Revenue Bonds
Series A 5.25%, due 7/1/39		14,150,000		15,339,307
Series C-1, Insured: AGM 7.00%, due 7/1/27		8,380,000		9,806,360

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 October 31, 2015 (continued)

	Principal Amount		Value
Municipal Bonds (continued)
Michigan (continued)
Detroit, Michigan Water Supply System, Revenue Bonds
Series D, Insured: AGM 4.625%, due 7/1/32	$	1,535,000	$	1,538,085
Series A, Insured: AGM 5.00%, due 7/1/34		1,600,000		1,621,632
Series A 5.25%, due 7/1/41		3,015,000		3,221,648
Series A 5.75%, due 7/1/37		5,550,000		6,132,750
Detroit, Michigan, City School District, Improvement School Building and Site, Unlimited General Obligation
Series A, Insured: Q-SBLF 5.00%, due 5/1/26		750,000		839,130
Series A, Insured: Q-SBLF 5.00%, due 5/1/27		7,500,000		8,327,250
Series A, Insured: Q-SBLF 5.00%, due 5/1/29		3,620,000		3,966,434
Series A, Insured: Q-SBLF 5.00%, due 5/1/33		4,535,000		4,908,367
Michigan Finance Authority Revenue, Local Government Loan Program, Revenue Bonds
Insured: AGM 5.00%, due 7/1/28		500,000		568,255
Series C 5.00%, due 11/1/28		7,290,000		8,064,271
Insured: AGM 5.00%, due 7/1/35		2,000,000		2,203,700
Insured: NATL-RE 5.00%, due 7/1/36		7,400,000		8,027,520
Michigan Finance Authority, Detroit Water and Sewer, Revenue Bonds Insured: AGM 5.00%, due 7/1/33		3,000,000		3,333,870
Michigan Finance Authority, Revenue Bonds
Insured: NATL-RE 5.00%, due 7/1/32		2,500,000		2,746,825
Second Lien—Series C-1 5.00%, due 7/1/44		2,500,000		2,641,950
5.50%, due 6/1/21		5,000,000		5,390,700
Michigan Tobacco Settlement Finance Authority, Revenue Bonds Series A 6.00%, due 6/1/34		250,000		229,500
Wayne County Michigan, Capital Improvement, Limited General Obligation Series A, Insured: AGM 5.00%, due 2/1/38		2,500,000		2,542,950

	Principal Amount		Value
Michigan (continued)
Wayne County Michigan, Detroit Metropolitan Airport, Limited General Obligation Series A, Insured: NATL-RE 5.00%, due 12/1/30	$	4,500,000	$	4,518,900
				103,641,312
Missouri 0.0%‡
Joplin Industrial Development Authority, Freeman Health System, Revenue Bonds 5.00%, due 2/15/35		605,000		659,559
Nebraska 1.8%
¨Central Plains Energy, Project No. 3, Revenue Bonds
5.00%, due 9/1/42		13,590,000		14,673,395
5.25%, due 9/1/37		11,575,000		12,803,918
				27,477,313
New Hampshire 0.1%
Manchester, NH General Airport, Revenue Bonds Series A, Insured: AGM 5.00%, due 1/1/26		1,800,000		1,999,170
New Jersey 2.1%
New Jersey Economic Development Authority, MSU Student Housing Project, Provident Group-Montclair LLC, Revenue Bonds 5.375%, due 6/1/25		4,500,000		5,018,445
New Jersey Economic Development Authority, Revenue Bonds
5.00%, due 1/1/28 (a)		1,000,000		1,106,480
Insured: AGM 5.00%, due 1/1/31 (a)		3,000,000		3,314,970
5.50%, due 1/1/26 (a)		1,000,000		1,161,030
New Jersey Health Care Facilities Financing Authority, Revenue Bonds
Series A 5.25%, due 7/1/26		3,710,000		4,234,520
Insured: GTY 5.25%, due 1/1/31		2,760,000		2,947,597
New Jersey Higher Education Student Assistance Authority, Revenue Bonds Series 1 5.50%, due 12/1/26 (a)		4,130,000		4,572,571
New Jersey State Higher Education Student Assistance Authority, Student Loan, Revenue Bonds Series A, Insured: GTY 6.125%, due 6/1/30 (a)		2,975,000		3,203,807

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

	Principal Amount		Value
Municipal Bonds (continued)
New Jersey (continued)
Newark, New Jersey Housing Authority, South Ward Police Facility, Revenue Bonds
Insured: GTY 5.75%, due 12/1/30	$	1,135,000	$	1,296,295
Insured: GTY 6.75%, due 12/1/38		4,000,000		4,706,080
				31,561,795
New Mexico 0.1%
Farmington Pollution Control, Revenue Bonds 5.90%, due 6/1/40		2,000,000		2,203,020
New York 10.0%
Build NYC Resource Corp., Parking Facility, Revenue Bonds
Insured: AGM 5.00%, due 12/15/19		975,000		1,106,430
Insured: AGM 5.00%, due 12/15/20		1,025,000		1,180,688
Insured: AGM 5.00%, due 12/15/21		1,075,000		1,251,397
Insured: AGM 5.00%, due 12/15/22		740,000		867,931
City of New York, Unlimited General Obligation Series H-5 0.30%, due 3/1/34 (b)		4,685,000		4,685,000
Long Island Power Authority, Eletric System, Revenue Bonds Series A, Insured: BAM 5.00%, due 9/1/44		10,000,000		11,187,600
Long Island Power Authority, Revenue Bonds Series A, Insured: BAM 5.00%, due 9/1/39		10,000,000		11,252,500
New York City Transitional Finance Authority, Building Aid Revenue, Revenue Bonds
Series S-1 5.00%, due 7/15/33		6,060,000		6,968,091
Series S-1 5.00%, due 7/15/36		10,000,000		11,369,800
New York City Transitional Finance Authority, Future Tax Secured, Revenue Bonds
Series 2A 0.30%, due 11/1/22 (b)		3,900,000		3,900,000
Series E-1 5.00%, due 2/1/41		2,500,000		2,835,325

	Principal Amount		Value
New York (continued)
New York City Water & Sewer System, Revenue Bonds Series EE 5.50%, due 6/15/43	$	11,400,000	$	13,375,620
New York Liberty Development Corp., 4 World Trade Center Project, Revenue Bonds 5.75%, due 11/15/51		10,000,000		11,527,000
New York Liberty Development Corp., Bank of America, Revenue Bonds Class 3 6.375%, due 7/15/49		5,000,000		5,643,200
New York Liberty Development Corp., Revenue Bonds 5.00%, due 12/15/41		12,315,000		13,829,868
New York State Dormitory Authority, Revenue Bonds
Series E 5.00%, due 3/15/34		4,190,000		4,891,741
Series A 5.00%, due 7/1/34		5,000,000		5,779,200
Series A 5.00%, due 7/1/35		6,610,000		7,661,056
5.50%, due 7/1/40		465,000		529,407
New York State Urban Development Corp., Personal Income Tax, Revenue Bonds Series A 5.00%, due 3/15/24		13,380,000		16,366,951
Triborough Bridge & Tunnel Authority, Revenue Bonds Series A 5.25%, due 11/15/45		10,820,000		12,636,137
				148,844,942
North Carolina 0.4%
Charlotte-Mecklenburg Hospital Authority, Carolinas Healthcare System, Revenue Bonds Series A 5.00%, due 1/15/31		2,050,000		2,298,747
North Carolina Medical Care Commission, North Carolina Baptist Hospital, Revenue Bonds 5.25%, due 6/1/25		1,000,000		1,141,650
North Carolina Turnpike Authority, Revenue Bonds Series A, Insured: GTY 5.75%, due 1/1/39		3,000,000		3,333,000
				6,773,397

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 October 31, 2015 (continued)

	Principal Amount		Value
Municipal Bonds (continued)
North Dakota 0.3%
Grand Forks Health Care, ND, Altra Health System, Revenue Bonds 5.00%, due 12/1/35	$	4,000,000	$	4,306,920
Ohio 3.5%
¨American Municipal Power, Inc., Prairie Energy Campus, Revenue Bonds
Series A, Insured: BAM 5.25%, due 2/15/30		15,000,000		17,302,200
Series A, Insured: BAM 5.25%, due 2/15/31		7,055,000		8,115,719
City of Cleveland, OH, Airport System Revenue, Revenue Bonds Series A, Insured: AGM 5.00%, due 1/1/30		3,000,000		3,321,270
Clermont County Port Authority, W. Clermont Local School District Project, Revenue Bonds
Insured: BAM 5.00%, due 12/1/31		650,000		738,751
Insured: BAM 5.00%, due 12/1/32		2,200,000		2,478,344
Insured: BAM 5.00%, due 12/1/33		1,335,000		1,499,072
Cleveland-Cuyahoga County Port Authority, Revenue Bonds 6.00%, due 11/15/25		1,980,000		2,293,117
Hamilton County Ohio Health Care Facility, Christ Hospital Project, Revenue Bonds 5.50%, due 6/1/42		2,000,000		2,217,900
Middletown City School District, School Improvement, Unlimited General Obligation 5.25%, due 12/1/48		4,070,000		4,569,918
North Olmsted City School District, Unlimited General Obligation Series A 5.00%, due 12/1/40		7,250,000		8,156,612
State of Ohio, Republic Services, Inc., Revenue Bonds 0.50%, due 11/1/35 (b)		2,000,000		2,000,000
				52,692,903
Oklahoma 0.0%‡
Tulsa Airports Improvement Trust, Revenue Bonds Series D, Insured: BAM 5.00%, due 6/1/28		500,000		541,570

	Principal Amount		Value
Pennsylvania 2.6%
Montgomery County Industrial Development Authority, Revenue Bonds 5.25%, due 8/1/33	$	175,000	$	205,812
Pennsylvania Economic Development Financing Authority, Capitol Region Parking System, Revenue Bonds Series B 6.00%, due 7/1/53		10,950,000		12,912,021
Pennsylvania State Turnpike Commission, Revenue Bonds
Series B, Insured: BAM 5.25%, due 12/1/44		7,500,000		8,501,250
Series B 5.75%, due 6/1/39		4,000,000		4,477,880
Philadelphia, PA, Unlimited General Obligation 6.50%, due 8/1/41		5,125,000		6,098,596
State Public School Building Authority, Philadelphia Community College, Revenue Bonds Insured: BAM 5.00%, due 6/15/28		5,505,000		6,303,996
				38,499,555
Puerto Rico 6.5%
Commonwealth of Puerto Rico, Public Improvement, Unlimited General Obligation
Series A, Insured: AGC 5.00%, due 7/1/26		175,000		175,252
Series A, Insured: AGM 5.00%, due 7/1/35		10,815,000		10,162,964
Series A, Insured: AGM 5.25%, due 7/1/24		255,000		258,448
Series C, Insured: AGM 5.375%, due 7/1/28		280,000		280,106
Series A, Insured: NATL-RE 5.50%, due 7/1/19		400,000		409,628
Series A, Insured: NATL-RE 5.50%, due 7/1/20		1,950,000		1,971,411
Commonwealth of Puerto Rico, Unlimited General Obligation Series C-7, Insured: NATL-RE 6.00%, due 7/1/27		4,000,000		4,025,120
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Revenue Bonds
Series A, Insured: GTY 5.00%, due 7/1/28		100,000		98,381
Series A, Insured: AGC 6.125%, due 7/1/24		1,000,000		1,011,620

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

	Principal Amount		Value
Municipal Bonds (continued)
Puerto Rico (continued)
Puerto Rico Commonwealth, Public Improvement, Unlimited General Obligation
Series A, Insured: NATL-RE 5.50%, due 7/1/20	$	1,180,000	$	1,192,956
Series C, Insured: AGM 5.75%, due 7/1/37		730,000		730,234
Puerto Rico Electric Power Authority, Revenue Bonds
Series UU, Insured: AGC 4.25%, due 7/1/27		1,000,000		922,970
Series RR, Insured: NATL-RE 5.00%, due 7/1/21		1,080,000		1,070,734
Series RR, Insured: NATL-RE 5.00%, due 7/1/22		450,000		443,084
Series PP, Insured: NATL-RE 5.00%, due 7/1/23		1,005,000		981,493
Series SS, Insured: NATL-RE 5.00%, due 7/1/23		800,000		781,288
Series UU, Insured: AGM 5.00%, due 7/1/23		1,225,000		1,220,210
Series UU, Insured: AGM 5.00%, due 7/1/24		985,000		977,484
Series VV, Insured: NATL-RE 5.25%, due 7/1/26		185,000		180,199
Series VV, Insured: NATL-RE 5.25%, due 7/1/32		2,000,000		1,868,100
Puerto Rico Electric Power Authority, Revenue Bonds. Series TT, Insured: AGM 5.00%, due 7/1/18		175,000		177,832
Puerto Rico Highways & Transportation Authority, Commonwealth Highway, Revenue Bonds Series J, Insured: NATL-RE 5.00%, due 7/1/29		490,000		454,838
¨Puerto Rico Highways & Transportation Authority, Revenue Bonds
Series D, Insured: AGM 5.00%, due 7/1/27		465,000		462,331
Series L, Insured: NATL-RE 5.25%, due 7/1/24		1,755,000		1,725,516
Series N, Insured: NATL-RE 5.25%, due 7/1/32		7,975,000		7,457,103
Series CC, Insured: AGM 5.25%, due 7/1/33		800,000		787,728
Series N, Insured: NATL-RE 5.25%, due 7/1/33		5,520,000		5,131,944
Series N, Insured: GTY 5.25%, due 7/1/36		20,000,000		19,421,600

	Principal Amount		Value
Puerto Rico (continued)
Puerto Rico Highways & Transportation Authority, Revenue Bonds (continued)
Series CC, Insured: AGM 5.25%, due 7/1/36	$	275,000	$	267,047
Series E, Insured: AGM 5.50%, due 7/1/21		310,000		324,220
Series N, Insured: AGM, GTY 5.50%, due 7/1/26		160,000		163,000
Series N, Insured: AGM, GTY 5.50%, due 7/1/29		10,000,000		10,148,200
Puerto Rico Municipal Finance Agency, Revenue Bonds
Series A, Insured: AGM 5.00%, due 8/1/30		200,000		191,624
Series C, Insured: AGM 5.25%, due 8/1/19		695,000		717,073
Series C, Insured: AGC 5.25%, due 8/1/20		100,000		101,982
Series C, Insured: AGC 5.25%, due 8/1/23		100,000		101,217
Puerto Rico Municipal Finance Agency, Unlimited General Obligation Series A, Insured: AGM 4.75%, due 8/1/22		80,000		79,903
Puerto Rico Public Buildings Authority, Government Facilities, Revenue Bonds
Series F, Insured: NATL-RE, XLCA 5.25%, due 7/1/23		170,000		171,214
Insured: NATL-RE 6.00%, due 7/1/27		7,410,000		7,453,052
Puerto Rico Sales Tax Financing Corp., Revenue Bonds
Series A, Insured: NATL-RE (zero coupon), due 8/1/45		59,330,000		9,250,140
Series A, Insured: AGM 5.00%, due 8/1/40		2,895,000		2,615,256
Series C, Insured: AGM 5.125%, due 8/1/42		955,000		875,716
				96,840,218
Rhode Island 1.9%
Providence Public Buildings Authority, Revenue Bonds Series A, Insured: AGM 5.875%, due 6/15/26		1,565,000		1,804,007
¨Tobacco Settlement Financing Corp., Revenue Bonds
Series A 5.00%, due 6/1/35		20,000,000		21,202,600
Series A 5.00%, due 6/1/40		4,750,000		4,862,432
				27,869,039

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 October 31, 2015 (continued)

	Principal Amount		Value
Municipal Bonds (continued)
South Carolina 1.9%
Piedmont Municipal Power Agency, Revenue Bonds Series C, Insured: GTY 5.75%, due 1/1/34	$	10,345,000	$	12,216,514
South Carolina Jobs-Economic Development Authority, Palmetto Health, Revenue Bonds
Series A 5.00%, due 8/1/19		420,000		467,145
Series A 5.25%, due 8/1/30		2,955,000		3,330,019
South Carolina State Public Service Authority, Revenue Bonds Series C 5.00%, due 12/1/46		10,865,000		11,845,783
				27,859,461
South Dakota 0.1%
Harrisburg School District No. 41-2, Unlimited General Obligation 5.00%, due 7/15/33		1,370,000		1,541,086
Tennessee 1.4%
City of Memphis, TN, Unlimited General Obligation Series C, Insured: BAM 5.00%, due 4/1/45		8,660,000		9,727,518
Johnson City Health & Educational Facilities Board, Mountain States Health Alliance, Revenue Bonds 6.00%, due 7/1/38		3,605,000		4,061,898
Johnson City Tennessee Health & Educational Facilities Board Hospital, Revenue Bonds Series A 6.50%, due 7/1/38		6,500,000		7,467,265
				21,256,681
Texas 8.6%
Central Texas Regional Mobility Authority, Revenue Bonds 5.75%, due 1/1/31		2,100,000		2,391,795
Central Texas Turnpike System, Revenue Bonds Series C 5.00%, due 8/15/34		5,000,000		5,511,400
Dallas/Fort Worth International Airport, Revenue Bonds Series A 5.00%, due 11/1/38 (a)		10,000,000		10,621,600

	Principal Amount		Value
Texas (continued)
Edinburg Local Government Finance Corp., Revenue Bonds Series A, Insured: AGM 5.00%, due 3/1/45	$	1,000,000	$	1,085,340
Harris County-Houston Sports Authority, Revenue Bonds Series A, Insured: AGM, NATL-RE (zero coupon), due 11/15/40		17,115,000		4,924,157
Houston Higher Education Finance Corp., Revenue Bonds
6.50%, due 5/15/31		1,050,000		1,294,626
Series A 6.875%, due 5/15/41		6,400,000		8,282,432
Houston, TX, Revenue Bonds Series B 5.00%, due 9/1/31		2,000,000		2,071,550
¨North Texas Tollway Authority, Revenue Bonds
Series A 5.00%, due 1/1/34		1,400,000		1,569,274
Series A 5.00%, due 1/1/35		2,950,000		3,294,383
Series A, Insured: BAM 5.00%, due 1/1/38		9,500,000		10,538,255
Series B 5.00%, due 1/1/40		5,500,000		6,007,925
Series A 5.50%, due 9/1/41		6,695,000		7,867,161
Series F 5.75%, due 1/1/38		1,800,000		1,993,086
Series A 6.00%, due 9/1/41		3,500,000		4,239,515
San Juan, Texas Higher Education Finance Authority, Idea Public Schools, Revenue Bonds Series A 6.70%, due 8/15/40		1,275,000		1,481,218
¨Texas Municipal Gas Acquisition & Supply Corp. III, Revenue Bonds
5.00%, due 12/15/30		17,100,000		18,738,351
5.00%, due 12/15/31		4,575,000		4,998,233
Texas Private Activity Bond Surface Transportation Corp., LBJ Infrastructure, Revenue Bonds
7.00%, due 6/30/40		7,500,000		8,904,750
Series Lien-LBG 7.50%, due 6/30/32		4,095,000		4,971,248
7.50%, due 6/30/33		5,500,000		6,674,195
Texas Private Activity Bond Surface Transportation Corp., NTE Mobility, Revenue Bonds 6.875%, due 12/31/39		8,165,000		9,523,983

20 MainStay Tax Free Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Municipal Bonds (continued)
Texas (continued)
Texas State Public Finance Authority, Charter School Finance Corp., Revenue Bonds Series A 6.20%, due 2/15/40	$	1,000,000	$	1,209,350
				128,193,827
U.S. Virgin Islands 2.3%
Virgin Islands Public Finance Authority, Matching Fund Loan Notes, Revenue Bonds Series A 5.00%, due 10/1/32		5,100,000		5,433,999
Virgin Islands Public Finance Authority, Matching Fund Loan, Revenue Bonds Series A 6.75%, due 10/1/37		5,000,000		5,639,150
¨Virgin Islands Public Finance Authority, Revenue Bonds
Series A, Insured: AGM 5.00%, due 10/1/32		15,125,000		16,567,471
Series C, Insured: AGM 5.00%, due 10/1/39		5,800,000		6,423,964
				34,064,584
Utah 0.0%‡
Herriman, Utah, Special Assessment 5.00%, due 11/1/29		425,000		442,956
Washington 0.4%
King County Washington Public Hospital District No. 1, General Obligation Series B 5.25%, due 12/1/37		6,000,000		6,467,880

	Principal Amount			Value
Wisconsin 0.5%
Wisconsin Center District, Junior Dedicated, Revenue Bonds
Series A 5.00%, due 12/15/31	$	3,665,000		$	4,047,809
Series A 5.00%, due 12/15/32		2,850,000			3,136,283
					7,184,092
Wyoming 0.1%
West Park Hospital District, Revenue Bonds Series A 6.375%, due 6/1/26		1,000,000			1,154,340
Total Investments (Cost $1,363,185,605) (d)		94.6	%		1,411,924,212
Other Assets, Less Liabilities		5.4			80,820,883
Net Assets		100.0	%	$	1,492,745,095

‡ Less than one-tenth of a percent.

(a) Interest on these securities was subject to alternative minimum tax.

(b) Variable rate securities that may be tendered back to the issuer at any time prior to maturity at par. Rate shown is the rate in effect as of October 31, 2015.

(c) Step coupon—Rate shown was the rate in effect as of October 31, 2015.

(d) As of October 31, 2015, cost was $1,363,481,277 for federal income tax purposes and net unrealized appreciation was as follows:

Gross unrealized appreciation	$	54,428,219
Gross unrealized depreciation		(5,985,284	)
Net unrealized appreciation	$	48,442,935

As of October 31, 2015, the Fund held the following futures contracts¹:

Type	Number of Contracts (Short)			Expiration Date		Notional Amount			Unrealized Appreciation (Depreciation)2
10-Year United States Treasury Note		(1,555	)		December 2015	$	(198,554,063	)	$	628,298
						$	(198,554,063	)	$	628,298

1. As of October 31, 2015, cash in the amount of $2,099,250 was on deposit with a broker for futures transactions.

2. Represents the difference between the value of the contracts at the time they were opened and the value as of October 31, 2015.

The following abbreviations are used in the preceding pages:

AGC/GTY—Assured Guaranty Corp.

AGM—Assured Guaranty Municipal Corp.

AMBAC—Ambac Assurance Corp.

BAM—Build America Mutual Assurance Co.

NATL-RE—National Public Finance Guarantee Corp.

Q-SBLF—Qualified School Board Loan Fund

XLCA—XL Capital Assurance, Inc.

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 October 31, 2015 (continued)

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Municipal Bonds	$	—	$	1,411,924,212	$	—	$	1,411,924,212
Total Investments in Securities		—		1,411,924,212		—		1,411,924,212
Other Financial Instruments
Futures Contracts Short (b)		628,298		—		—		628,298
Total Investments in Securities and Other Financial Instruments	$	628,298	$	1,411,924,212	$	—	$	1,412,552,510

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

22 MainStay Tax Free Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $1,363,185,605)	$	1,411,924,212
Cash		40,143,003
Cash collateral on deposit at broker		2,099,250
Receivables:
Interest		19,014,181
Fund shares sold		12,622,066
Investment securities sold		11,557,124
Other assets		67,035
Total assets		1,497,426,871
Liabilities
Payables:
Fund shares redeemed		1,627,019
Manager (See Note 3)		542,244
Investment securities purchased		278,702
NYLIFE Distributors (See Note 3)		244,258
Transfer agent (See Note 3)		217,239
Variation margin on futures contracts		121,484
Shareholder communication		33,299
Professional fees		30,408
Trustees		3,612
Custodian		2,613
Accrued expenses		10,678
Dividend payable		1,570,220
Total liabilities		4,681,776
Net assets	$	1,492,745,095
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	1,503,586
Additional paid-in capital		1,483,634,159
		1,485,137,745
Distributions in excess of net investment income		(602,645	)
Accumulated net realized gain (loss) on investments and futures transactions		(41,156,910	)
Net unrealized appreciation (depreciation) on investments and futures contracts		49,366,905
Net assets	$	1,492,745,095

Class A
Net assets applicable to outstanding shares	$	761,277,635
Shares of beneficial interest outstanding		76,695,599
Net asset value per share outstanding	$	9.93
Maximum sales charge (4.50% of offering price)		0.47
Maximum offering price per share outstanding	$	10.40
Investor Class
Net assets applicable to outstanding shares	$	17,258,872
Shares of beneficial interest outstanding		1,730,833
Net asset value per share outstanding	$	9.97
Maximum sales charge (4.50% of offering price)		0.47
Maximum offering price per share outstanding	$	10.44
Class B
Net assets applicable to outstanding shares	$	16,806,312
Shares of beneficial interest outstanding		1,693,678
Net asset value and offering price per share outstanding	$	9.92
Class C
Net assets applicable to outstanding shares	$	183,508,911
Shares of beneficial interest outstanding		18,481,989
Net asset value and offering price per share outstanding	$	9.93
Class I
Net assets applicable to outstanding shares	$	513,893,365
Shares of beneficial interest outstanding		51,756,513
Net asset value and offering price per share outstanding	$	9.93

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 year ended October 31, 2015

Investment Income (Loss)
Income
Interest	$	53,156,566
Expenses
Manager (See Note 3)		5,593,559
Distribution/Service—Class A (See Note 3)		1,516,672
Distribution/Service—Investor Class (See Note 3)		43,214
Distribution/Service—Class B (See Note 3)		73,938
Distribution/Service—Class C (See Note 3)		856,884
Transfer agent (See Note 3)		1,016,035
Registration		153,839
Professional fees		102,659
Shareholder communication		76,003
Custodian		27,977
Trustees		25,409
Miscellaneous		37,959
Total expenses before waiver/reimbursement		9,524,148
Expense waiver/reimbursement from Manager (See Note 3)		(159,912	)
Net expenses		9,364,236
Net investment income (loss)		43,792,330
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts
Net realized gain (loss) on:
Investment transactions		4,148,085
Futures transactions		(12,486,793	)
Net realized gain (loss) on investments and futures transactions		(8,338,708	)
Net change in unrealized appreciation (depreciation) on:
Investments		(10,024,580	)
Futures contracts		3,082,818
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(6,941,762	)
Net realized and unrealized gain (loss) on investments and futures transactions		(15,280,470	)
Net increase (decrease) in net assets resulting from operations	$	28,511,860

24 MainStay Tax Free Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	43,792,330		$	33,403,307
Net realized gain (loss) on investments and futures transactions		(8,338,708	)		(11,634,593	)
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(6,941,762	)		70,501,342
Net increase (decrease) in net assets resulting from operations		28,511,860			92,270,056
Dividends to shareholders:
From net investment income:
Class A		(21,306,149	)		(16,467,002	)
Investor Class		(612,453	)		(737,876	)
Class B		(487,154	)		(443,035	)
Class C		(5,621,984	)		(5,402,513	)
Class I		(15,774,661	)		(10,355,311	)
Total dividends to shareholders		(43,802,401	)		(33,405,737	)
Capital share transactions:
Net proceeds from sale of shares		810,261,947			325,886,328
Net asset value of shares issued to shareholders in reinvestment of dividends		27,314,088			20,965,708
Cost of shares redeemed		(256,696,846	)		(314,870,989	)
Increase (decrease) in net assets derived from capital share transactions		580,879,189			31,981,047
Net increase (decrease) in net assets		565,588,648			90,845,366
Net Assets
Beginning of year		927,156,447			836,311,081
End of year	$	1,492,745,095		$	927,156,447
Distributions in excess of net investment income at end of year	$	(602,645	)	$	(592,574	)

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.03		$	9.33		$	10.04		$	9.26		$	9.44
Net investment income (loss)		0.35			0.39			0.38			0.38	(a)		0.43	(a)
Net realized and unrealized gain (loss) on investments		(0.10	)		0.70			(0.72	)		0.79			(0.18	)
Total from investment operations		0.25			1.09			(0.34	)		1.17			0.25
Less dividends:
From net investment income		(0.35	)		(0.39	)		(0.37	)		(0.39	)		(0.43	)
Net asset value at end of year	$	9.93		$	10.03		$	9.33		$	10.04		$	9.26
Total investment return (b)		2.58	%		11.86	%		(3.52	%)		12.81	%		2.93	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.51	%		3.99	%		3.72	%		3.91	%		4.76	%
Net expenses		0.81	%		0.78	%		0.78	%		0.79	%		0.81	%
Expenses (before waiver/reimbursement)		0.82	%		0.83	%		0.83	%		0.84	%		0.89	%
Portfolio turnover rate		46	%		68	%		111	%		125	%		138	%
Net assets at end of year (in 000’s)	$	761,278		$	427,586		$	417,984		$	424,757		$	258,892

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015				2014			2013			2012			2011
Net asset value at beginning of year	$	10.08			$	9.38		$	10.08		$	9.31		$	9.48
Net investment income (loss)		0.35				0.39			0.36			0.38	(a)		0.42	(a)
Net realized and unrealized gain (loss) on investments		(0.11	)			0.69			(0.70	)		0.77			(0.16	)
Total from investment operations		0.24				1.08			(0.34	)		1.15			0.26
Less dividends:
From net investment income		(0.35	)			(0.38	)		(0.36	)		(0.38	)		(0.43	)
Net asset value at end of year	$	9.97			$	10.08		$	9.38		$	10.08		$	9.31
Total investment return (b)		2.47	%			11.76	%		(3.45	%)		12.58	%		2.93	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.54	%			3.94	%		3.67	%		3.92	%		4.67	%
Net expenses		0.82	%			0.84	%		0.84	%		0.86	%		0.90	%
Expenses (before waiver/reimbursement)		0.83	%			0.89	%		0.89	%		0.91	%		0.98	%
Portfolio turnover rate		46	%			68	%		111	%		125	%		138	%
Net assets at end of year (in 000’s)	$	17,259		��	$	18,264		$	19,094		$	21,437		$	21,547

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

26 MainStay Tax Free Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.03		$	9.33		$	10.03		$	9.26		$	9.44
Net investment income (loss)		0.33			0.35			0.34			0.35	(a)		0.40	(a)
Net realized and unrealized gain (loss) on investments		(0.11	)		0.71			(0.70	)		0.78			(0.18	)
Total from investment operations		0.22			1.06			(0.36	)		1.13			0.22
Less dividends:
From net investment income		(0.33	)		(0.36	)		(0.34	)		(0.36	)		(0.40	)
Net asset value at end of year	$	9.92		$	10.03		$	9.33		$	10.03		$	9.26
Total investment return (b)		2.21	%		11.52	%		(3.73	%)		12.34	%		2.58	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.28	%		3.69	%		3.41	%		3.59	%		4.42	%
Net expenses		1.07	%		1.09	%		1.09	%		1.11	%		1.15	%
Expenses (before waiver/reimbursement)		1.08	%		1.14	%		1.14	%		1.16	%		1.23	%
Portfolio turnover rate		46	%		68	%		111	%		125	%		138	%
Net assets at end of year (in 000’s)	$	16,806		$	12,439		$	12,459		$	13,230		$	9,463

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.03		$	9.34		$	10.04		$	9.27		$	9.44
Net investment income (loss)		0.33			0.36			0.35			0.35	(a)		0.40	(a)
Net realized and unrealized gain (loss) on investments		(0.10	)		0.69			(0.71	)		0.78			(0.17	)
Total from investment operations		0.23			1.05			(0.36	)		1.13			0.23
Less dividends:
From net investment income		(0.33	)		(0.36	)		(0.34	)		(0.36	)		(0.40	)
Net asset value at end of year	$	9.93		$	10.03		$	9.34		$	10.04		$	9.27
Total investment return (b)		2.31	%		11.40	%		(3.72	%)		12.33	%		2.69	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.28	%		3.68	%		3.42	%		3.58	%		4.42	%
Net expenses		1.07	%		1.09	%		1.09	%		1.11	%		1.15	%
Expenses (before waiver/reimbursement)		1.08	%		1.14	%		1.14	%		1.16	%		1.23	%
Portfolio turnover rate		46	%		68	%		111	%		125	%		138	%
Net assets at end of year (in 000’s)	$	183,509		$	154,863		$	150,244		$	142,246		$	81,880

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.03		$	9.34		$	10.04		$	9.27		$	9.44
Net investment income (loss)		0.38			0.41			0.40			0.40	(a)		0.45	(a)
Net realized and unrealized gain (loss) on investments		(0.10	)		0.69			(0.71	)		0.78			(0.16	)
Total from investment operations		0.28			1.10			(0.31	)		1.18			0.29
Less dividends:
From net investment income		(0.38	)		(0.41	)		(0.39	)		(0.41	)		(0.46	)
Net asset value at end of year	$	9.93		$	10.03		$	9.34		$	10.04		$	9.27
Total investment return (b)		2.83	%		12.02	%		(3.18	%)		12.97	%		3.29	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.78	%		4.21	%		4.00	%		4.06	%		4.99	%
Net expenses		0.56	%		0.53	%		0.54	%		0.54	%		0.56	%
Expenses (before waiver/reimbursement)		0.57	%		0.58	%		0.59	%		0.59	%		0.64	%
Portfolio turnover rate		46	%		68	%		111	%		125	%		138	%
Net assets at end of year (in 000’s)	$	513,893		$	314,005		$	236,531		$	142,603		$	33,888

(a) Per share data based on average shares outstanding during the year.

(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.

28 MainStay Tax Free Bond Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Tax Free 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 Fund currently offers five classes of shares. Class A shares commenced operations on January 3, 1995. Class B shares commenced operations on May 1, 1986. Class C shares commenced operations on September 1, 1998. Investor Class shares commenced operations on February 28, 2008. Class I shares commenced operations on December 21, 2009. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 shares are offered at NAV and are not subject to a sales charge. Depending upon eligibility, Class B shares convert to either Investor Class or Class A shares at the end of the calendar quarter eight years after the date they were purchased. Additionally, depending upon eligibility, Investor Class shares may convert to Class A shares and Class A shares may convert to Investor Class shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A and Investor Class shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek current income exempt from regular federal income tax.

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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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 in active markets for an identical asset or liability

29

Notes to Financial Statements (continued)

• 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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 market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, there were no securities held by the Fund that were fair valued in such a manner.

Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. 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 Manager, in consultation with the Subadvisor. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean prices are deemed by the Manager, 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. 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. Other temporary cash investments which 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. These securities are generally categorized as Level 2 in the hierarchy.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued within seven days. Illiquidity of a security might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of the Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor measures the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued by methods deemed reasonable in good faith in such a manner as the Board deems appropriate to reflect their fair value. The liquidity of the Fund’s investments, as shown in the accompanying Portfolio of Investments, was measured as of October 31, 2015 and can change at any time in response, among other relevant factors, to market conditions or events or developments with respect to an individual issuer or instrument. As of October 31, 2015, the Fund did not hold any securities deemed to be illiquid under procedures approved by the Board of Trustees.

30 MainStay Tax Free Bond Fund

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C)  Dividends and Distributions to Shareholders.  Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare 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 the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(D)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

The Fund may place a debt obligation on non-accrual status and reduce related interest income by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation 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, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(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., interest rate, security, or securities index). The Fund is subject to market price risk and/or interest rate risk in the normal course of investing in these transactions. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized 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 may involve a small initial investment relative to the risk assumed, which could result in losses greater than if they had not been used. Futures 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 help manage the duration and yield curve positioning of the portfolio. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAV and may result in a loss to the Fund.

31

Notes to Financial Statements (continued)

(H)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

(I)  Concentration of Risk.  The Fund may invest a substantial amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects. 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. In addition, the Fund may invest more heavily in bonds from certain cities, states or regions than others, which may increase the Fund’s exposure to losses resulting from economic, political, or regulatory occurrences impacting these particular cities, states or regions.

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

(K)  Quantitative Disclosure of Derivative Holdings.  The following tables show additional disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash flows. The Fund invested in 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 October 31, 2015:

Asset Derivatives

	Statement of Assets and Liabilities Location	Interest Rate Contracts Risk		Total
Futures Contracts	Net Assets—Net unrealized appreciation (depreciation) on investments and futures contracts (a)	$	628,298	$	628,298
Total Fair Value		$	628,298	$	628,298

(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 year ended October 31, 2015:

Realized Gain (Loss)

	Statement of Operations Location	Interest Rate Contracts Risk			Total
Futures Contracts	Net realized gain (loss) on futures transactions	$	(12,486,793	)	$	(12,486,793	)
Total Realized Gain (Loss)		$	(12,486,793	)	$	(12,486,793	)

Change in Unrealized Appreciation (Depreciation)

	Statement of Operations Location	Interest Rate Contracts Risk		Total
Futures Contracts	Net change in unrealized appreciation (depreciation) on futures contracts	$	3,082,818	$	3,082,818
Total Change in Unrealized Appreciation (Depreciation)		$	3,082,818	$	3,082,818

Average Notional Amount

	Interest Rate Contracts Risk			Total
Futures Contracts Short	$	(220,048,291	)	$	(220,048,291	)

32 MainStay Tax Free Bond 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 a portion of the compensation of the Chief Compliance Officer of 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 Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of the 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.

Under the Management Agreement, which came into effect on February 28, 2015, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.45% up to $500 million; 0.425% from $500 million to $1 billion; and 0.40% in excess of $1 billion, plus a fee for fund accounting services, previously provided by New York Life Investments under a separate fund accounting agreement, furnished at an annual rate of the Fund’s average daily net assets as follows: 0.05% up to $20 million; 0.0333% from $20 million to $100 million; and 0.01% in excess of $100 million.

Prior to February 28, 2015, the Fund paid the Manager a monthly fee at an annual rate of the Fund’s average daily net assets as follows: 0.50% up to $500 million; 0.475% from $500 million to $1 billion; and 0.45% in excess of $1 billion plus the fund accounting service fee. Prior to February 28, 2015, New York Life Investments had contractually agreed to waive a portion of its management fee so that the management fee did not exceed 0.45% up to $500 million; 0.425% from $500 million to $1 billion; and 0.40% in excess of $1 billion.

During the year ended October 31, 2015, the effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.46% inclusive of a fee for fund accounting services of 0.01% 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 for Class A shares do not exceed 0.82% of its average daily net assets. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points, to the other share classes. This agreement will remain in effect until February 28, 2016. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $5,593,559 and waived its fees and/or reimbursed expenses in the amount of $159,912.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly distribution 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, Class B and 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 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 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.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $74,384 and $3,945, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares of $6,698, $35, $17,840 and $24,675, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	493,589
Investor Class		15,516
Class B		13,456
Class C		153,699
Class I		339,775

33

Notes to Financial Statements (continued)

(E)  Small Account Fee.  Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. Certain

shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations.

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Undistributed Tax Exempt Income	Accumulated Capital and Other Gain (Loss)	Other Temporary Differences	Unrealized Appreciation (Depreciation)	Total Accumulated Gain (Loss)
$—	$967,575	$(40,232,940)	$(1,570,220)	$48,442,935	$7,607,350

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments and mark to market of futures contracts. The other temporary differences are primarily due to dividends payable.

Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

As of October 31, 2015, for federal income tax purposes, capital loss carryforwards of $40,232,940 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss Available Through	Short-Term Capital Loss Amounts (000’s)		Long-Term Capital Loss Amounts (000’s)
2017	$	3,952	$	—
2019		2,136		—
Unllmited		26,867		7,278
Total	$	32,955	$	7,278

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	313,042	$	126,225
Exempt Interest Dividends		43,489,359		33,279,512
Total	$	43,802,401	$	33,405,737

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 6–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

Note 7–Purchases and Sales of Securities (in 000’s)

During the year ended October 31, 2015, purchases and sales of securities, other than short-term securities, were $1,065,166 and $552,789, respectively.

34 MainStay Tax Free Bond Fund

Note 8–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		46,277,057		$	463,456,979
Shares issued to shareholders in reinvestment of dividends and distributions		1,508,116			15,013,515
Shares redeemed		(13,845,124	)		(137,611,020	)
Net increase (decrease) in shares outstanding before conversion		33,940,049			340,859,474
Shares converted into Class A (See Note 1)		204,290			2,047,068
Shares converted from Class A (See Note 1)		(89,249	)		(890,021	)
Net increase (decrease)		34,055,090		$	342,016,521
Year ended October 31, 2014:
Shares sold		10,431,124		$	101,039,238
Shares issued to shareholders in reinvestment of dividends and distributions		1,181,171			11,440,134
Shares redeemed		(13,934,446	)		(133,752,320	)
Net increase (decrease) in shares outstanding before conversion		(2,322,151	)		(21,272,948	)
Shares converted into Class A (See Note 1)		219,259			2,131,052
Shares converted from Class A (See Note 1)		(41,549	)		(404,151	)
Net increase (decrease)		(2,144,441	)	$	(19,546,047	)
Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		164,904		$	1,655,664
Shares issued to shareholders in reinvestment of dividends and distributions		53,875			539,748
Shares redeemed		(214,189	)		(2,144,940	)
Net increase (decrease) in shares outstanding before conversion		4,590			50,472
Shares converted into Investor Class (See Note 1)		100,312			1,004,190
Shares converted from Investor Class (See Note 1)		(186,853	)		(1,882,520	)
Net increase (decrease)		(81,951	)	$	(827,858	)
Year ended October 31, 2014:
Shares sold		129,199		$	1,261,426
Shares issued to shareholders in reinvestment of dividends and distributions		66,650			648,209
Shares redeemed		(275,408	)		(2,675,462	)
Net increase (decrease) in shares outstanding before conversion		(79,559	)		(765,827	)
Shares converted into Investor Class (See Note 1)		61,613			599,448
Shares converted from Investor Class (See Note 1)		(205,324	)		(2,005,301	)
Net increase (decrease)		(223,270	)	$	(2,171,680	)

Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		596,022		$	5,952,848
Shares issued to shareholders in reinvestment of dividends and distributions		42,430			422,592
Shares redeemed		(157,372	)		(1,564,408	)
Net increase (decrease) in shares outstanding before conversion		481,080			4,811,032
Shares converted from Class B (See Note 1)		(27,983	)		(278,717	)
Net increase (decrease)		453,097		$	4,532,315
Year ended October 31, 2014:
Shares sold		140,477		$	1,372,417
Shares issued to shareholders in reinvestment of dividends and distributions		38,330			371,033
Shares redeemed		(239,999	)		(2,296,050	)
Net increase (decrease) in shares outstanding before conversion		(61,192	)		(552,600	)
Shares converted from Class B (See Note 1)		(33,322	)		(321,048	)
Net increase (decrease)		(94,514	)	$	(873,648	)
Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		5,178,766		$	51,727,202
Shares issued to shareholders in reinvestment of dividends and distributions		377,993			3,768,585
Shares redeemed		(2,511,041	)		(25,008,168	)
Net increase (decrease)		3,045,718		$	30,487,619
Year ended October 31, 2014:
Shares sold		3,271,991		$	31,697,232
Shares issued to shareholders in reinvestment of dividends and distributions		367,763			3,563,319
Shares redeemed		(4,294,137	)		(41,049,892	)
Net increase (decrease)		(654,383	)	$	(5,789,341	)
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		28,783,951		$	287,469,254
Shares issued to shareholders in reinvestment of dividends and distributions		759,448			7,569,648
Shares redeemed		(9,089,348	)		(90,368,310	)
Net increase (decrease)		20,454,051		$	204,670,592
Year ended October 31, 2014 :
Shares sold		19,579,990		$	190,516,015
Shares issued to shareholders in reinvestment of dividends and distributions		509,013			4,943,013
Shares redeemed		(14,121,421	)		(135,097,265	)
Net increase (decrease)		5,967,582		$	60,361,763

35

Notes to Financial Statements (continued)

Note 9–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

36 MainStay Tax Free Bond Fund

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Tax Free Bond Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Tax Free Bond Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

37

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years.

For individual federal income tax purposes, the Fund designated 99.3% of the ordinary income dividends paid during the fiscal year ended October 31, 2015 as attributable to interest income from tax exempt municipal bonds. Such dividends are currently exempt from federal income taxes under Section 103 (a) of the Internal Revenue Code.

In February 2016, shareholders will receive an IRS. Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

38 MainStay Tax Free Bond Fund

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

39

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

40 MainStay Tax Free Bond Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

41

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

42 MainStay Tax Free Bond Fund

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

43

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MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673931 MS291-15 MST11-12/15  (NYLIM) NL215

MainStay Convertible Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	15
Notes to Financial Statements	21
Report of Independent Registered Public Accounting Firm	28
Federal Income Tax Information	29
Proxy Voting Policies and Procedures and Proxy Voting Record	29
Shareholder Reports and Quarterly Portfolio Disclosure	29
Board of Trustees, Officers and Advisory Board Members	30

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

Investment and Performance Comparison¹(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–4.95 0.58	%		7.09 8.31	%		6.70 7.30	%		0.97 0.97	%
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–5.12 0.40			6.87 8.09			6.52 7.13			1.16 1.16
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–4.85 –0.36			6.98 7.28			6.35 6.35			1.91 1.91
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		–1.19 –0.30			7.29 7.29			6.34 6.34			1.91 1.91
Class I Shares4	No Sales Charge			0.84			8.58			7.57			0.72

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class I shares, first offered on November 28, 2008, include the historical performance of Class B shares through November 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Class I shares would likely have been different.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
BofA Merrill Lynch All U.S. Convertibles Index5		–0.13	%		9.15	%		7.25	%
Average Lipper Convertible Securities Fund6		–1.57			7.01			5.76

5. The BofA Merrill Lynch All U.S. Convertibles Index is a market-capitalization weighted index of domestic corporate convertible securities. In order to be included in this Index, bonds and preferred stocks must be convertible only to common stock. The BofA Merrill Lynch All U.S. Convertibles Index is the Fund’s broad-based securities market index for comparison purposes. Total returns assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.

6. The Average Lipper Convertible Securities Fund is representative of funds that invest primarily in convertible bonds and/or convertible preferred stock. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay Convertible Fund

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

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	962.60	$	4.90	$	1,020.20	$	5.04
Investor Class Shares	$	1,000.00	$	961.70	$	5.69	$	1,019.40	$	5.85
Class B Shares	$	1,000.00	$	958.00	$	9.38	$	1,015.60	$	9.65
Class C Shares	$	1,000.00	$	958.60	$	9.38	$	1,015.60	$	9.65
Class I Shares	$	1,000.00	$	964.40	$	3.66	$	1,021.50	$	3.77

1. Expenses are equal to the Fund’s annualized expense ratio of each class (0.99% for Class A, 1.15% for Investor Class, 1.90% for Class B and Class C and 0.74% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Portfolio Composition as of October 31, 2015 (Unaudited)

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

‡ Less than one-tenth of a percent.

Top Ten Holdings or Issuers Held as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. Priceline Group, Inc. (The), 0.35%–1.00%, due 3/15/18–6/15/20

2. Stanley Black & Decker, Inc., 4.75%–6.25%

3. Jarden Corp., 1.875%, due 9/15/18

4. Danaher Corp., (zero coupon), due 1/22/21

5. BioMarin Pharmaceutical, Inc., 0.75%, due 10/15/18

  6. Air Lease Corp., 3.875%, due 12/1/18

  7. JPMorgan Chase & Co. (Convertible into Schlumberger, Ltd.), (zero coupon), due 5/3/17

  8. ON Semiconductor Corp., 1.00%–2.625%, due 12/1/20–12/15/26

  9. Teva Pharmaceutical Finance Co. LLC, 0.25%, due 2/1/26

10. Teleflex, Inc., 3.875%, due 8/1/17

8 MainStay Convertible Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio manager Edward Silverstein, CFA, of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay Convertible Fund perform relative to its primary benchmark and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay Convertible Fund returned 0.58% for Class A shares, 0.40% for Investor Class shares, –0.36% for Class B shares and –0.30% for Class C shares for the 12 months ended October 31, 2015. Over the same period, Class I shares returned 0.84%. During the reporting period, Class A, Investor Class and Class I shares outperformed—and Class B and Class C shares underperformed—the –0.13% return of the BofA Merrill Lynch All U.S. Convertibles Index,¹ which is the Fund’s broad-based securities-market index. During the 12 months ended October 31, 2015, all share classes outperformed the –1.57% return of the Average Lipper² Convertible Securities Fund. See page 5 for Fund returns with applicable sales charges.

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

The Fund’s performance relative to the BofA Merrill Lynch All U.S. Convertibles Index was not dictated by any overriding theme. Certain securities in the health care and information technology sectors enhanced the Fund’s performance relative to the BofA Merrill Lynch All U.S. Convertibles Index, while several securities concentrated in the energy and basic materials sectors detracted from relative performance. Similar results were evident in the general market, as numerous biotechnology companies with novel therapies saw their share prices and convertible bonds appreciate. In contrast, nearly all energy-related and basic materials companies saw their share prices and convertible bonds decline, as the glut of commodities such as natural gas, crude oil, coal and metals took a toll on the profitability of these companies. These market trends, along with security selection affected the Fund’s performance relative to the BofA Merrill Lynch All U.S. Convertibles Index.

What was the Fund’s duration³ strategy during the reporting period?

Convertible bond prices tend to vary with changes in the price of the underlying equity security rather than with changes in interest rates. For this reason, duration does not guide our investment decisions. At the end of the reporting period, the effective duration of the Fund was 3.6 years.

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

As convertible bond performance is largely determined by the performance of the underlying equity security, our decision-

making process is guided by our analysis of the underlying equity and whether the convertible security is likely to participate in the equity’s upside and provide some measure of protection on the downside. Our equity analysis looks at the health and prospects of the underlying business, the strength of management, financial stability and valuation.

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

The strongest positive contributions to absolute performance came from the health care and information technology sectors. (Contributions take weightings and total returns into account.) The Fund had large gains in several health care-related holdings. The convertible bonds of medical equipment manufacturer Teleflex, biotechnology company BioMarin and distributor Omnicare were among the best performers in the Fund based on dollar gains during the reporting period. Teleflex, a manufacturer of medical devices such as catheters and breathing masks, continued its strategy of improving operating margins and organic sales growth and delivered solid earnings and free cash flow growth. BioMarin had positive announcements related to drugs in development and sales of existing products. Drug distributor Omnicare benefited from speculation that the company was seeking a buyer and the stock advanced prior to its acquistion by CVS. The convertible bonds of several technology companies were also among the Fund’s strongest contributors during the reporting period. The convertible bonds of Spansion and Proofpoint were among the Fund’s best performers. The common shares and convertible bonds of microcontroller and analog product company Spansion rose sharply after the company announced its intent to merge with Cypress Semiconductor. The shares and convertible bonds of software developer Proofpoint rose as the company continued to report sales and earnings that exceeded investor expectations.

The weakest contributions to the Fund’s absolute performance came from the metals and energy segments. In the diversified metals & mining industry, the convertible bonds of U.S. Steel and the convertible preferred shares of ArcelorMittal and Alcoa were three of the worst-performing securities in the Fund in terms of dollars lost during the reporting period. Diversified metals & mining companies generally performed poorly, as investors were concerned about slowing demand from China, high levels of inventory and cheap steel imports from India and China. In the energy sector, the convertible bonds of Helix Energy, Schlumberger and the convertible preferred shares of Southwestern Energy were among the Fund’s worst-performing holdings during the reporting period. All three companies were

1. See footnote on page 6 for more information on the BofA Merrill Lynch All U.S. Convertibles Index.

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

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

9

negatively affected by the sharp decline in crude oil and natural gas prices. Helix and Schlumberger both supply products and services to energy production companies, and lower commodity prices resulted in less demand for the offerings of both companies.

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

During the reporting period, noteworthy purchases included the convertible preferred shares of specialty chemicals manufacturer A. Schulman and pharmaceuticals company Allergan. We also purchased or increased our positions in the convertible bonds of trucking logistics company Echo Global Logistics, biopharmaceutical company Depomed, airline charter company Atlas Air Worldwide and semiconductor company ON Semiconductor.

During the reporting period several positions matured or converted and were taken out of the Fund. Among these were positions in MGM Resorts International, United Continental Holdings and Host Hotels & Resorts. During the reporting period, we reduced the Fund’s position in metals-related companies by selling the Fund’s entire convertible preferred share holding of ArcelorMittal and the Fund’s convertible bonds of U.S. Steel. We sold the Fund’s convertible bonds of Pacira Pharmaceuticals after the company received warning letters from the Food and

Drug Administration related to its key drug, Experel. We also sold the Fund’s position in Omnicare after the company agreed to be acquired by CVS. In addition, we eliminated the Fund’s position in rooftop solar panel installer SolarCity, as we believed that the company’s fundamentals and financial outlook were deteriorating.

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

During the reporting period, the Fund decreased its weightings in the health care, financials, materials and information technology sectors. Over the same period, the Fund increased its weighting in the industrials sector.

How was the Fund positioned at the end of the reporting period?

As of October 31, 2015, the Fund held overweight positions relative to the BofA Merrill Lynch U.S. All Convertibles Index in the consumer discretionary, energy and industrials sectors. As of the same date, the Fund held underweight positions relative to the Index in the financials, utilities and consumer staples sectors and held neutrally weighted positions in the telecommunication services, information technology, health care and materials sectors.

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

10 MainStay Convertible Fund

Portfolio of Investments October 31, 2015

	Principal Amount		Value
Convertible Securities 87.1%† Convertible Bonds 75.7%
Auto Manufacturers 2.2%
Fiat Chrysler Automobiles N.V. 7.875%, due 12/15/16	$	7,307,800	$	9,481,870
Wabash National Corp. 3.375%, due 5/1/18		8,792,000		10,698,765
				20,180,635
Biotechnology 6.8%
¨BioMarin Pharmaceutical, Inc. 0.75%, due 10/15/18		15,698,000		22,134,180
Gilead Sciences, Inc. 1.625%, due 5/1/16		3,638,000		17,378,289
Illumina, Inc.
(zero coupon), due 6/15/19		4,300,000		4,394,063
0.50%, due 6/15/21		6,977,000		7,513,357
Isis Pharmaceuticals, Inc. 1.00%, due 11/15/21 (a)		4,375,000		4,377,734
Medicines Co. (The) 1.375%, due 6/1/17		4,252,000		5,726,913
				61,524,536
Commercial Services 4.7%
Carriage Services, Inc. 2.75%, due 3/15/21		6,573,000		7,271,381
Live Nation Entertainment, Inc. 2.50%, due 5/15/19		15,125,000		16,391,719
Macquarie Infrastructure Corp. 2.875%, due 7/15/19		15,982,000		18,648,996
				42,312,096
Computers 1.4%
SanDisk Corp. 0.50%, due 10/15/20		11,688,000		12,381,975
Finance—Leasing Companies 2.4%
¨Air Lease Corp. 3.875%, due 12/1/18		15,781,000		21,501,612
Health Care—Products 6.5%
¨Danaher Corp. (zero coupon), due 1/22/21		8,558,000		23,186,831
Hologic, Inc. 2.00%, due 3/1/42 (b)		7,990,000		10,761,531
Insulet Corp. 2.00%, due 6/15/19		3,113,000		2,992,371
¨Teleflex, Inc. 3.875%, due 8/1/17		8,849,000		19,207,861
Wright Medical Group, Inc. 2.00%, due 2/15/20 (a)		3,230,000		3,068,500
				59,217,094

	Principal Amount		Value
Health Care—Services 2.4%
Anthem, Inc. 2.75%, due 10/15/42	$	7,160,000	$	13,501,075
Molina Healthcare, Inc. 1.625%, due 8/15/44		6,753,000		8,306,190
				21,807,265
Home Builders 0.9%
Lennar Corp. 3.25%, due 11/15/21 (a)		3,785,000		8,078,609
Insurance 2.1%
MGIC Investment Corp.
2.00%, due 4/1/20		2,918,000		4,263,928
5.00%, due 5/1/17		8,458,000		9,034,201
Radian Group, Inc. 2.25%, due 3/1/19		4,321,000		6,003,489
				19,301,618
Internet 5.3%
HomeAway, Inc. 0.125%, due 4/1/19		10,022,000		9,646,175
¨Priceline Group, Inc. (The)
0.35%, due 6/15/20		7,782,000		10,116,600
1.00%, due 3/15/18		12,338,000		19,640,554
Twitter, Inc. 0.25%, due 9/15/19		9,161,000		8,164,741
				47,568,070
Leisure Time 2.6%
¨Jarden Corp. 1.875%, due 9/15/18		15,969,000		23,933,539
Machinery—Diversified 1.1%
Chart Industries, Inc. 2.00%, due 8/1/18		11,153,000		9,786,758
Media 0.7%
Liberty Interactive LLC 3.50%, due 1/15/31		425,000		226,312
Liberty Media Corp. 1.375%, due 10/15/23		5,925,000		6,091,641
				6,317,953
Oil & Gas 2.1%
Whiting Petroleum Corp. 1.25%, due 4/1/20 (a)		21,588,000		19,118,873
Oil & Gas Services 4.0%
Helix Energy Solutions Group, Inc. 3.25%, due 3/15/32		11,830,000		9,863,263

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings or issuers held, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Principal Amount		Value
Convertible Bonds (continued)
Oil & Gas Services (continued)
¨JPMorgan Chase & Co. (Convertible into Schlumberger, Ltd.) (zero coupon), due 5/3/17 (a)(c)	$	14,750,000	$	20,611,650
Newpark Resources, Inc. 4.00%, due 10/1/17		3,673,000		3,512,306
SEACOR Holdings, Inc. 2.50%, due 12/15/27		2,507,000		2,416,121
				36,403,340
Pharmaceuticals 3.9%
Array BioPharma, Inc. 3.00%, due 6/1/20		2,799,000		2,905,712
Depomed, Inc. 2.50%, due 9/1/21		7,180,000		8,113,400
Horizon Pharma Investment, Ltd. 2.50%, due 3/15/22 (a)		4,950,000		4,275,563
¨Teva Pharmaceutical Finance Co. LLC 0.25%, due 2/1/26		13,686,000		19,519,657
				34,814,332
Real Estate Investment Trusts 1.5%
SL Green Operating Partnership, L.P. 3.00%, due 10/15/17 (a)		9,324,000		13,898,588
Semiconductors 13.0%
InvenSense, Inc. 1.75%, due 11/1/18		3,946,000		3,810,356
Lam Research Corp. 1.25%, due 5/15/18		6,444,000		9,086,040
Microchip Technology, Inc. 1.625%, due 2/15/25 (a)		17,384,000		18,111,955
Micron Technology, Inc. 3.00%, due 11/15/43		20,445,000		18,604,950
NVIDIA Corp. 1.00%, due 12/1/18		8,101,000		11,883,154
NXP Semiconductors N.V. 1.00%, due 12/1/19 (a)		13,913,000		14,973,866
¨ON Semiconductor Corp.
1.00%, due 12/1/20 (a)		9,913,000		9,789,088
2.625%, due 12/15/26		8,111,000		9,733,200
Rambus, Inc. 1.125%, due 8/15/18		3,292,000		3,592,395
Xilinx, Inc. 2.625%, due 6/15/17		11,102,000		18,359,933
				117,944,937
Software 9.3%
Bottomline Technologies, Inc. 1.50%, due 12/1/17		8,408,000		9,369,665
Citrix Systems, Inc. 0.50%, due 4/15/19		5,382,000		6,148,935

	Principal Amount		Value
Software (continued)
Medidata Solutions, Inc. 1.00%, due 8/1/18	$	16,200,000	$	17,030,250
Proofpoint, Inc.
0.75%, due 6/15/20 (a)		2,051,000		2,309,939
1.25%, due 12/15/18		4,454,000		8,239,900
Red Hat, Inc. 0.25%, due 10/1/19		12,488,000		16,000,250
Salesforce.com, Inc. 0.25%, due 4/1/18		7,673,000		9,970,104
Verint Systems, Inc. 1.50%, due 6/1/21		15,039,000		15,255,186
				84,324,229
Transportation 2.8%
Atlas Air Worldwide Holdings, Inc. 2.25%, due 6/1/22		5,819,000		4,927,966
Echo Global Logistics, Inc. 2.50%, due 5/1/20		6,283,000		5,953,142
XPO Logistics, Inc. 4.50%, due 10/1/17		8,452,000		14,738,175
				25,619,283
Total Convertible Bonds (Cost $630,617,618)				686,035,342
	Shares
Convertible Preferred Stocks 11.4%
Chemicals 1.4%
A. Schulman, Inc. 6.00%		14,423		12,259,550
Food 1.4%
Post Holdings, Inc. 3.75%		39,161		5,546,098
Tyson Foods, Inc. 4.75%		133,648		6,996,473
				12,542,571
Hand & Machine Tools 2.8%
¨Stanley Black & Decker, Inc.
4.75%		113,302		16,457,115
6.25%		75,479		9,062,009
				25,519,124
Insurance 0.4%
Maiden Holdings, Ltd. Series B 7.25%		61,807		3,421,018
Mining 0.3%
Alcoa, Inc. 5.375%		88,185		2,789,292

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

	Shares		Value
Convertible Preferred Stocks (continued)
Oil & Gas 0.6%
Sanchez Energy Corp. Series A 4.875%	35,932	$	531,926
Southwestern Energy Co. Series B 6.25%	184,819		5,182,325
			5,714,251
Pharmaceuticals 1.0%
Allergan PLC Series A 5.50%	8,864		9,277,328
Real Estate Investment Trusts 2.9%
American Tower Corp. Series A 5.25%	109,017		11,599,409
Crown Castle International Corp. Series A 4.50%	109,784		11,666,746
Welltower, Inc. Series I 6.50%	47,800		2,825,458
			26,091,613
Telecommunications 0.6%
T-Mobile U.S., Inc. 5.50%	85,219		5,666,211
Total Convertible Preferred Stocks (Cost $104,457,112)			103,280,958
Total Convertible Securities (Cost $735,074,730)			789,316,300
Common Stocks 5.2%
Aerospace & Defense 1.2%
United Technologies Corp.	110,591		10,883,260
Airlines 1.4%
Delta Air Lines, Inc.	252,338		12,828,864
Auto Manufacturers 0.4%
General Motors Co.	108,269		3,779,671
Banks 0.8%
Bank of America Corp.	398,621		6,688,860
Internet 0.6%
HomeAway, Inc. (d)	160,778		5,074,154

		Shares			Value
Oil & Gas Services 0.8%
Cameron International Corp. (d)		46,635		$	3,171,646
Halliburton Co.		113,326			4,349,452
					7,521,098
Total Common Stocks (Cost $46,850,593)					46,775,907
	Number of Warrants
Warrants 0.0%‡
Auto Manufacturers 0.0%‡
General Motors Co. Strike Price $10.00 Expires 7/10/16 (d)		1,016			25,603
Strike Price $18.33 Expires 7/10/19 (d)		1,016			17,354
Total Warrants (Cost $1,062)					42,957
	Principal Amount
Short-Term Investment 7.3%
Repurchase Agreement 7.3%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $66,619,735 (Collateralized by a United States Treasury Note with a rate of 1.50% and a maturity date of 11/30/19, with a Principal Amount of $67,115,000 and a Market Value of $67,953,938)	$	66,619,735			66,619,735
Total Short-Term Investment (Cost $66,619,735)					66,619,735
Total Investments (Cost $848,546,120) (e)		99.6	%		902,754,899
Other Assets, Less Liabilities		0.4			3,748,706
Net Assets		100.0	%	$	906,503,605

‡ 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) Step coupon—Rate shown was the rate in effect as of October 31, 2015.

(c) Synthetic Convertible Bond—Security structured by an investment bank that provides exposure to a specific company’s stock. As of October 31, 2015, the total market value of this security was $20,611,650, which represented 2.3% of the Fund’s net assets.

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

Portfolio of Investments October 31, 2015 (continued)

(d) Non-income producing security.

(e) As of October 31, 2015, cost was $860,324,759 for federal income tax purposes and net unrealized appreciation was as follows:

Gross unrealized appreciation	$	82,816,708
Gross unrealized depreciation		(40,386,568	)
Net unrealized appreciation	$	42,430,140

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Convertible Securities
Convertible Bonds	$	—	$	686,035,342	$	—	$	686,035,342
Convertible Preferred Stocks (b)		97,202,934		6,078,024		—		103,280,958
Total Convertible Securities		97,202,934		692,113,366		—		789,316,300
Common Stocks		46,775,907		—		—		46,775,907
Warrants		42,957		—		—		42,957
Short-Term Investment
Repurchase Agreement		—		66,619,735		—		66,619,735
Total Investments in Securities	$	144,021,798	$	758,733,101	$	—	$	902,754,899

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

(b) The Level 2 securities valued at $5,546,098 and $531,926 are held in Food and Oil & Gas, respectively, within the Convertible Preferred Stocks section of the Portfolio of Investments.

As of October 31, 2015, a convertible preferred stock with a market value of $1,716,867 transferred from Level 1 to Level 2 as the price of this security was based on an evaluated price. As of October 31, 2014, the fair value obtained for this security was based on an observable quoted price.

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

As of October 31, 2015, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

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

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $848,546,120)	$	902,754,899
Cash		33,586
Receivables:
Dividends and interest		3,385,544
Fund shares sold		2,609,449
Other assets		34,513
Total assets		908,817,991
Liabilities
Payables:
Fund shares redeemed		1,358,978
Manager (See Note 3)		448,110
Transfer agent (See Note 3)		232,654
NYLIFE Distributors (See Note 3)		201,899
Shareholder communication		32,226
Professional fees		28,853
Trustees		2,181
Custodian		1,287
Accrued expenses		8,198
Total liabilities		2,314,386
Net assets	$	906,503,605
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	549,130
Additional paid-in capital		801,695,391
		802,244,521
Undistributed net investment income		12,684,538
Accumulated net realized gain (loss) on investments		37,365,767
Net unrealized appreciation (depreciation) on investments		54,208,779
Net assets	$	906,503,605

Class A
Net assets applicable to outstanding shares	$	408,066,919
Shares of beneficial interest outstanding		24,715,428
Net asset value per share outstanding	$	16.51
Maximum sales charge (5.50% of offering price)		0.96
Maximum offering price per share outstanding	$	17.47
Investor Class
Net assets applicable to outstanding shares	$	82,052,336
Shares of beneficial interest outstanding		4,971,491
Net asset value per share outstanding	$	16.50
Maximum sales charge (5.50% of offering price)		0.96
Maximum offering price per share outstanding	$	17.46
Class B
Net assets applicable to outstanding shares	$	26,536,690
Shares of beneficial interest outstanding		1,613,661
Net asset value and offering price per share outstanding	$	16.45
Class C
Net assets applicable to outstanding shares	$	91,832,685
Shares of beneficial interest outstanding		5,590,199
Net asset value and offering price per share outstanding	$	16.43
Class I
Net assets applicable to outstanding shares	$	298,014,975
Shares of beneficial interest outstanding		18,022,207
Net asset value and offering price per share outstanding	$	16.54

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Interest	$	9,182,489
Dividends		5,469,804
Total income		14,652,293
Expenses
Manager (See Note 3)		5,379,557
Distribution/Service—Class A (See Note 3)		995,226
Distribution/Service—Investor Class (See Note 3)		211,468
Distribution/Service—Class B (See Note 3)		286,928
Distribution/Service—Class C (See Note 3)		933,784
Transfer agent (See Note 3)		1,302,995
Registration		118,317
Professional fees		98,780
Shareholder communication		84,087
Trustees		18,080
Custodian		14,449
Miscellaneous		30,766
Total expenses		9,474,437
Net investment income (loss)		5,177,856
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		69,105,724
Net change in unrealized appreciation (depreciation) on investments		(73,782,641	)
Net realized and unrealized gain (loss) on investments		(4,676,917	)
Net increase (decrease) in net assets resulting from operations	$	500,939

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

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	5,177,856		$	7,393,277
Net realized gain (loss) on investments		69,105,724			79,292,033
Net change in unrealized appreciation (depreciation) on investments		(73,782,641	)		1,794,189
Net increase (decrease) in net assets resulting from operations		500,939			88,479,499
Dividends and distributions to shareholders:
From net investment income:
Class A		(9,959,809	)		(11,173,096	)
Investor Class		(2,048,298	)		(2,364,040	)
Class B		(568,359	)		(792,709	)
Class C		(1,754,966	)		(1,926,640	)
Class I		(8,710,964	)		(8,950,317	)
		(23,042,396	)		(25,206,802	)
From net realized gain on investments:
Class A		(30,640,139	)		(4,954,749	)
Investor Class		(6,815,824	)		(1,129,846	)
Class B		(2,397,415	)		(428,858	)
Class C		(7,371,727	)		(1,042,261	)
Class I		(24,752,815	)		(3,574,274	)
		(71,977,920	)		(11,129,988	)
Total dividends and distributions to shareholders		(95,020,316	)		(36,336,790	)
Capital share transactions:
Net proceeds from sale of shares		331,439,523			342,862,601
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		77,975,989			31,094,534
Cost of shares redeemed		(315,067,713	)		(366,179,649	)
Increase (decrease) in net assets derived from capital share transactions		94,347,799			7,777,486
Net increase (decrease) in net assets		(171,578	)		59,920,195
Net Assets
Beginning of year		906,675,183			846,754,988
End of year	$	906,503,605		$	906,675,183
Undistributed net investment income at end of year	$	12,684,538		$	4,307,859

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	18.33		$	17.33		$	14.79		$	15.12		$	15.13
Net investment income (loss) (a)		0.11			0.15			0.18			0.29			0.33
Net realized and unrealized gain (loss) on investments		(0.00	)‡		1.59			3.29			0.46			(0.02	)
Total from investment operations		0.11			1.74			3.47			0.75			0.31
Less dividends and distributions:
From net investment income		(0.47	)		(0.51	)		(0.31	)		(0.31	)		(0.32	)
From net realized gain on investments		(1.46	)		(0.23	)		(0.62	)		(0.77	)		—
Total dividends and distributions		(1.93	)		(0.74	)		(0.93	)		(1.08	)		(0.32	)
Net asset value at end of year	$	16.51		$	18.33		$	17.33		$	14.79		$	15.12
Total investment return (b)		0.58	%		10.42	%		24.78	%		5.30	%		2.13	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.62	%		0.86	%		1.13	%		1.96	%		2.08	%
Net expenses		0.99	%		0.97	%		0.99	%		1.00	%		0.99	%
Portfolio turnover rate		60	%		59	%		77	%		61	%		80	%
Net assets at end of year (in 000’s)	$	408,067		$	384,987		$	391,577		$	317,267		$	367,398

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	18.33		$	17.32		$	14.79		$	15.11		$	15.12
Net investment income (loss) (a)		0.08			0.12			0.15			0.26			0.30
Net realized and unrealized gain (loss) on investments		(0.01	)		1.60			3.28			0.47			(0.02	)
Total from investment operations		0.07			1.72			3.43			0.73			0.28
Less dividends and distributions:
From net investment income		(0.44	)		(0.48	)		(0.28	)		(0.28	)		(0.29	)
From net realized gain on investments		(1.46	)		(0.23	)		(0.62	)		(0.77	)		—
Total dividends and distributions		(1.90	)		(0.71	)		(0.90	)		(1.05	)		(0.29	)
Net asset value at end of year	$	16.50		$	18.33		$	17.32		$	14.79		$	15.11
Total investment return (b)		0.40	%		10.21	%		24.42	%		5.07	%		1.98	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.45	%		0.67	%		0.93	%		1.74	%		1.89	%
Net expenses		1.15	%		1.16	%		1.22	%		1.22	%		1.19	%
Portfolio turnover rate		60	%		59	%		77	%		61	%		80	%
Net assets at end of year (in 000’s)	$	82,052		$	85,850		$	86,136		$	80,378		$	85,747

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	18.30		$	17.37		$	14.84		$	15.15		$	15.16
Net investment income (loss) (a)		(0.05	)		(0.01	)		0.03			0.15			0.18
Net realized and unrealized gain (loss) on investments		0.01			1.59			3.29			0.47			(0.02	)
Total from investment operations		(0.04	)		1.58			3.32			0.62			0.16
Less dividends and distributions:
From net investment income		(0.35	)		(0.42	)		(0.17	)		(0.16	)		(0.17	)
From net realized gain on investments		(1.46	)		(0.23	)		(0.62	)		(0.77	)		—
Total dividends and distributions		(1.81	)		(0.65	)		(0.79	)		(0.93	)		(0.17	)
Net asset value at end of year	$	16.45		$	18.30		$	17.37		$	14.84		$	15.15
Total investment return (b)		(0.36	%)		9.41	%		23.50	%		4.31	%		1.19	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.30	%)		(0.08	%)		0.19	%		0.99	%		1.13	%
Net expenses		1.90	%		1.91	%		1.97	%		1.97	%		1.94	%
Portfolio turnover rate		60	%		59	%		77	%		61	%		80	%
Net assets at end of year (in 000’s)	$	26,537		$	29,765		$	32,629		$	33,103		$	43,420

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	18.29		$	17.36		$	14.82		$	15.14		$	15.15
Net investment income (loss) (a)		(0.05	)		(0.01	)		0.03			0.15			0.18
Net realized and unrealized gain (loss) on investments		(0.00	)‡		1.59			3.30			0.46			(0.02	)
Total from investment operations		(0.05	)		1.58			3.33			0.61			0.16
Less dividends and distributions:
From net investment income		(0.35	)		(0.42	)		(0.17	)		(0.16	)		(0.17	)
From net realized gain on investments		(1.46	)		(0.23	)		(0.62	)		(0.77	)		—
Total dividends and distributions		(1.81	)		(0.65	)		(0.79	)		(0.93	)		(0.17	)
Net asset value at end of year	$	16.43		$	18.29		$	17.36		$	14.82		$	15.14
Total investment return (b)		(0.30	%)		9.35	%		23.60	%		4.24	%		1.20	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.30	%)		(0.08	%)		0.19	%		0.98	%		1.13	%
Net expenses		1.90	%		1.91	%		1.97	%		1.97	%		1.94	%
Portfolio turnover rate		60	%		59	%		77	%		61	%		80	%
Net assets at end of year (in 000’s)	$	91,833		$	92,118		$	78,135		$	75,372		$	90,273

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	18.36		$	17.35		$	14.81		$	15.13		$	15.15
Net investment income (loss) (a)		0.15			0.20			0.22			0.33			0.38
Net realized and unrealized gain (loss) on investments		(0.00	)‡		1.60			3.29			0.47			(0.04	)
Total from investment operations		0.15			1.80			3.51			0.80			0.34
Less dividends and distributions:
From net investment income		(0.51	)		(0.56	)		(0.35	)		(0.35	)		(0.36	)
From net realized gain on investments		(1.46	)		(0.23	)		(0.62	)		(0.77	)		—
Total dividends and distributions		(1.97	)		(0.79	)		(0.97	)		(1.12	)		(0.36	)
Net asset value at end of year	$	16.54		$	18.36		$	17.35		$	14.81		$	15.13
Total investment return (b)		0.84	%		10.74	%		25.05	%		5.56	%		2.39	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.87	%		1.11	%		1.37	%		2.21	%		2.33	%
Net expenses		0.74	%		0.72	%		0.74	%		0.75	%		0.74	%
Portfolio turnover rate		60	%		59	%		77	%		61	%		80	%
Net assets at end of year (in 000’s)	$	298,015		$	313,955		$	258,279		$	180,257		$	242,147

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(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.

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

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Convertible 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 currently offers five classes of shares. Class A shares commenced operations on January 3, 1995. Class B shares commenced operations on May 1, 1986. Class C shares commenced operations on September 1, 1998. Investor Class shares commenced operations on February 28, 2008. Class I shares commenced operations on November 28, 2008. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A and Investor Class shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek capital appreciation together with 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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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 in active markets for an identical asset or liability

21

Notes to Financial Statements (continued)

• 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, there were no securities held by the Fund that were fair valued in such a manner.

Equity securities and Exchange-Traded Funds 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. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities (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 Manager, in consultation with the Subadvisor. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean prices are deemed by the Manager, 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 & 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. Other temporary cash investments which 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. These securities are generally categorized as Level 2 in the hierarchy.

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

22 MainStay Convertible Fund

methods deemed reasonable in good faith in such a manner as the Board deems appropriate to reflect their fair value. The liquidity of the Fund’s investments, as shown in the accompanying Portfolio of Investments, was measured as of October 31, 2015 and can change at any time in response, among other relevant factors, to market conditions or events or developments with respect to an individual issuer or instrument. As of October 31, 2015, the Fund did not hold any securities deemed to be illiquid under procedures approved by the Board of Trustees.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

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

(D)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

The Fund may place a debt obligation on non-accrual status and reduce related interest income by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation 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, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(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.

23

Notes to Financial Statements (continued)

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. As of October 31, 2015, the Fund did not hold any rights.

(I)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

(J)  Concentration of Risk.  Convertible securities may be subordinate to other securities. In part, the total return for a convertible security depends upon the performance of the underlying stock into which it an be converted. Also, issuers of convertible securities are often not as strong financially as those issuing securities with higher credit ratings, may be more likely to encounter financial difficulties and typically are more vulnerable to changes in the economy, such as a recession or a sustained period of rising interest rates, which could affect their ability to make interest and principal payments.

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

Note 3–Fees and Related Party Transactions

(A)  Manager and Subadvisor.  New York Life 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 a portion of the compensation of the Chief Compliance Officer of 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 Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of the 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.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.60% up to $500 million; 0.55% from $500 million to $1 billion; and 0.50% in excess of $1 billion, plus a fee for fund accounting services, previously provided by New York Life Investments under a separate fund accounting agreement, furnished at an annual rate of the Fund’s average daily net assets as follows: 0.05% up to $20 million; 0.0333% from $20 million to $100 million; and 0.01% in excess of $100 million. During the year ended October 31, 2015, the effective management fee rate was 0.59%, inclusive of a fee for fund accounting services of .01% of the Fund’s average daily net assets.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $5,379,557.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly distribution 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, Class B and Class C shares pay the Distributor a monthly

24 MainStay Convertible Fund

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 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.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $83,300 and $12,932, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares of $2,150, $113, $35,693 and $17,291, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	417,242
Investor Class		231,156
Class B		78,417
Class C		255,184
Class I		320,996

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

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)	Other Temporary Differences	Unrealized Appreciation (Depreciation)	Total Accumulated Gain (Loss)
$32,393,986	$29,434,958	$—	$42,430,140	$104,259,084

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments, deemed dividends and Contingent Payment Debt Instruments (CPDI).

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments	Additional Paid-In Capital
$26,241,219	$(30,243,980)	$4,002,761

The reclassifications for the Fund are primarily due to CPDI adjustments, deemed dividends, adjustments on trust preferred securities and distributions in connection with redemption of fund shares.

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	36,755,541	$	36,336,790
Long-Term Capital Gain		58,264,775		—
Total	$	95,020,316	$	36,336,790

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 6–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

25

Notes to Financial Statements (continued)

Note 7–Purchases and Sales of Securities (in 000’s)

During the year ended October 31, 2015, purchases and sales of securities, other than short-term securities, were $497,472 and $519,316, respectively.

Note 8–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		7,918,892		$	135,337,499
Shares issued to shareholders in reinvestment of dividends and distributions		2,343,504			38,922,718
Shares redeemed		(6,688,098	)		(113,357,313	)
Net increase (decrease) in shares outstanding before conversion		3,574,298			60,902,904
Shares converted into Class A (See Note 1)		373,695			6,443,999
Shares converted from Class A (See Note 1)		(233,476	)		(3,800,236	)
Net increase (decrease)		3,714,517		$	63,546,667
Year ended October 31, 2014:
Shares sold		7,005,532		$	124,184,540
Shares issued to shareholders in reinvestment of dividends and distributions		907,668			15,379,233
Shares redeemed		(9,919,933	)		(174,981,457	)
Net increase (decrease) in shares outstanding before conversion		(2,006,733	)		(35,417,684	)
Shares converted into Class A (See Note 1)		490,601			8,731,428
Shares converted from Class A (See Note 1)		(80,581	)		(1,441,753	)
Net increase (decrease)		(1,596,713	)	$	(28,128,009	)
Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		374,666		$	6,375,908
Shares issued to shareholders in reinvestment of dividends and distributions		531,485			8,827,165
Shares redeemed		(643,508	)		(10,933,067	)
Net increase (decrease) in shares outstanding before conversion		262,643			4,270,006
Shares converted into Investor Class (See Note 1)		349,784			5,751,160
Shares converted from Investor Class (See Note 1)		(325,667	)		(5,629,332	)
Net increase (decrease)		286,760		$	4,391,834
Year ended October 31, 2014:
Shares sold		315,218		$	5,557,655
Shares issued to shareholders in reinvestment of dividends and distributions		205,157			3,469,157
Shares redeemed		(586,573	)		(10,374,212	)
Net increase (decrease) in shares outstanding before conversion		(66,198	)		(1,347,400	)
Shares converted into Investor Class (See Note 1)		221,881			3,940,468
Shares converted from Investor Class (See Note 1)		(443,446	)		(7,898,489	)
Net increase (decrease)		(287,763	)	$	(5,305,421	)

Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		228,782		$	3,884,262
Shares issued to shareholders in reinvestment of dividends and distributions		158,187			2,627,544
Shares redeemed		(234,772	)		(3,951,978	)
Net increase (decrease) in shares outstanding before conversion		152,197			2,559,828
Shares converted from Class B (See Note 1)		(164,819	)		(2,765,591	)
Net increase (decrease)		(12,622	)	$	(205,763	)
Year ended October 31, 2014:
Shares sold		206,556		$	3,642,564
Shares issued to shareholders in reinvestment of dividends and distributions		61,723			1,046,204
Shares redeemed		(331,940	)		(5,878,239	)
Net increase (decrease) in shares outstanding before conversion		(63,661	)		(1,189,471	)
Shares converted from Class B (See Note 1)		(188,299	)		(3,331,654	)
Net increase (decrease)		(251,960	)	$	(4,521,125	)
Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		1,186,806		$	19,988,767
Shares issued to shareholders in reinvestment of dividends and distributions		423,024			7,017,965
Shares redeemed		(1,057,378	)		(17,837,122	)
Net increase (decrease)		552,452		$	9,169,610
Year ended October 31, 2014:
Shares sold		1,162,200		$	20,424,732
Shares issued to shareholders in reinvestment of dividends and distributions		130,856			2,216,706
Shares redeemed		(757,126	)		(13,416,947	)
Net increase (decrease)		535,930		$	9,224,491
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		9,725,437		$	165,853,087
Shares issued to shareholders in reinvestment of dividends and distributions		1,237,516			20,580,597
Shares redeemed		(10,042,852	)		(168,988,233	)
Net increase (decrease)		920,101		$	17,445,451
Year ended October 31, 2014:
Shares sold		10,717,933		$	189,053,110
Shares issued to shareholders in reinvestment of dividends and distributions		528,190			8,983,234
Shares redeemed		(9,028,781	)		(161,528,794	)
Net increase (decrease)		2,217,342		$	36,507,550

Note 9–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The

26 MainStay Convertible Fund

guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and

transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

27

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Convertible Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Convertible Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

28 MainStay Convertible Fund

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years. Accordingly, the Fund paid $61,415,784 as long term capital gain distributions.

For the fiscal year ended October 31, 2015, the Fund designated approximately $7,798,290 under the Internal Revenue Code as qualified dividend income eligible for reduced tax rates.

The dividends paid by the Fund during the fiscal year ended October 31, 2015, should be multiplied by 4.1% to arrive at the amount eligible for the corporate dividends received deduction.

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

29

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

30 MainStay Convertible Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

31

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

32 MainStay Convertible Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

33

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

34 MainStay Convertible Fund

MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673414 MS291-15 MSC11-12/15 (NYLIM) NL210

MainStay Income Builder Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	13
Financial Statements	27
Notes to Financial Statements	33
Report of Independent Registered Public Accounting Firm	44
Federal Income Tax Information	45
Proxy Voting Policies and Procedures and Proxy Voting Record	45
Shareholder Reports and Quarterly Portfolio Disclosure	45
Board of Trustees, Officers and Advisory Board Members	46

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

Investment and Performance Comparison¹(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–6.27 –0.81	%		8.08 9.31	%		5.77 6.37	%		1.01 1.01	%
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–6.42 –0.97			7.81 9.03			5.57 6.17			1.23 1.23
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–6.28 –1.70			7.93 8.22			5.38 5.38			1.98 1.98
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		–2.62 –1.70			8.22 8.22			5.37 5.37			1.98 1.98
Class I Shares	No Sales Charge			–0.51			9.60			6.71			0.76
Class R2 Shares4	No Sales Charge			–1.37			8.83			6.01			1.11

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class R2 shares, first offered on February 27, 2015, include the historical performance of Class B shares through February 26, 2015. The performance for these newer share classes is adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for these newer share classes would likely have been different.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
MSCI World Index5		1.77	%		9.15	%		5.79	%
Russell 1000® Index6		4.86			14.32			7.98
Income Builder Composite Index7		2.12			6.29			5.62
Barclays U.S. Aggregate Bond Index8		1.96			3.03			4.72
Average Lipper Flexible Portfolio Fund9		–2.84			5.61			5.18

5. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index is the Fund’s broad-based securities market index for comparison purposes. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

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

7. The Income Builder Composite Index consists of the MSCI World Index and the Barclays U.S. Aggregate Bond Index weighted 50%/50% respectively. The Fund has selected the Income Builder Composite Index as an additional benchmark. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

8. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasurys, 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. The Fund has selected the Barclays U.S. Aggregate Bond Index as an additional benchmark. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

9. The Average Lipper Flexible Portfolio Fund is representative of funds that allocate their investments across various asset classes, including domestic common stocks, bonds, and money market instruments, with a focus on total return. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital-gain distributions reinvested.

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

6 MainStay Income Builder Fund

Cost in Dollars of a $1,000 Investment in MainStay Income Builder Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	967.60	$	5.11	$	1,020.00	$	5.24
Investor Class Shares	$	1,000.00	$	966.80	$	5.90	$	1,019.20	$	6.06
Class B Shares	$	1,000.00	$	963.30	$	9.60	$	1,015.40	$	9.86
Class C Shares	$	1,000.00	$	963.20	$	9.55	$	1,015.50	$	9.80
Class I Shares	$	1,000.00	$	969.10	$	3.87	$	1,021.30	$	3.97
Class R2 Shares	$	1,000.00	$	967.20	$	5.65	$	1,019.50	$	5.80

1. Expenses are equal to the Fund’s annualized expense ratio of each class (1.03% for Class A, 1.19% for Investor Class, 1.94% for Class B, 1.93% for Class C, 0.78% for Class I and 1.14% for Class R2) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Portfolio Composition as of October 31, 2015 (Unaudited)

See Portfolio of Investments beginning on page 13 for specific holdings within these categories.

‡ Less than one-tenth of a percent.

Top Ten Holdings or Issuers Held as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. Verizon Communications, Inc.

2. Philip Morris International, Inc.

3. National Grid PLC

4. Kinder Morgan, Inc.

5. CenturyLink, Inc.

  6. Iron Mountain, Inc.

  7. AT&T, Inc.

  8. BCE, Inc.

  9. Reynolds American, Inc.

10. Rogers Communications, Inc. Class B

8 MainStay Income Builder Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Dan Roberts, PhD, Michael Kimble, CFA, Louis N. Cohen, CFA, and Taylor Wagenseil of MacKay Shields LLC (“MacKay Shields”), the Subadvisor for the fixed-income portion of the Fund, and Eric Sappenfield, William Priest, CFA, Michael A. Welhoelter, CFA, John Tobin, PhD, CFA, and Kera Van Valen, CFA, of Epoch Investment Partners, Inc. (“Epoch”), the Subadvisor for the equity portion of the Fund.

How did MainStay Income Builder Fund perform relative to its benchmarks and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay Income Builder Fund returned –0.81% for Class A shares, –0.97% for Investor Class shares and –1.70% for Class B and Class C shares for the 12 months ended October 31, 2015. Over the same period, Class I shares returned –0.51% and Class R2 shares¹ returned –1.37%. For the 12 months ended October 31, 2015, all share classes underperformed the 1.77% return of the MSCI World Index,² which is the Fund’s primary benchmark; the 4.86% return of the Russell 1000^® Index,² which is the Fund’s secondary benchmark; and the 2.12% return of the Income Builder Composite Index,² which is an additional benchmark for the Fund. Over the same period, all share classes underperformed the 1.96% return of the Barclays U.S. Aggregate Bond Index,² which is an additional benchmark for the Fund. Over the same period, all share classes outperformed the –2.84% return of the Average Lipper³ Flexible Portfolio Fund. See page 5 for Fund returns with applicable sales charges.

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

During the reporting period, MacKay Shields announced that effective September 2016, Taylor Wagenseil will no longer serve as a portfolio manager of the income portion of the Fund. Dan Roberts, Louis Cohen and Michael Kimble will continue to manage the income portion of the Fund.

During the reporting period, how was the Fund’s performance materially affected by investments in derivatives?

In order to reduce the Fund’s duration,⁴ the fixed-income portion of the Fund had a sizeable short position in two-year U.S. Treasury futures. The Fund also had a position in currency forwards. Together, these positions made a positive contribution to the Fund’s performance. (Contributions take weightings and total returns into account.)

What factors affected the relative performance in the equity portion of the Fund during the reporting period?

The equity portion of the Fund had a positive return for the 12 months ended October 31, 2015, but underperformed the MSCI World Index. This portion of the Fund seeks to invest in a diversified group of companies that achieve growth in free cash flow and provide shareholders with positive returns from cash

dividends, share buybacks and debt reduction. During the reporting period, the most significant detractors from relative performance in the equity portion of the Fund were stock selection and an underweight position relative to the MSCI World Index in the consumer discretionary and information technology sectors. Stock selection and an overweight position in consumer staples was the most significant positive contributor to relative performance. An underweight position relative to the Index in the financials sector and stock selection contributed positively to relative performance. In the utilities sector, stock selection offset the drag that an overweight position in the sector created for the equity portion of the Fund.

Generally, performance in the equity portion of the Fund is dependent upon our ability to find companies that can grow free cash flow and have managements that allocate it effectively to create shareholder value. The vast majority of stocks in the equity portion of the Fund were able to achieve this and increase their dividends during the reporting period. We believe that understanding this “slow and steady” approach is more helpful to understanding relative performance than parsing returns in terms of sector weights and relative returns within those sectors. That said, sector commentary may provide additional insight if it is viewed in the proper context for this strategy.

During the reporting period, which individual stocks made the strongest positive contributions to absolute performance in the equity portion of the Fund and which stocks detracted the most?

Among the stocks that made the strongest positive contributions to absolute performance during the reporting period in the equity portion of the Fund were Reynolds American, TECO Energy and Imperial Tobacco. Reynolds American, a U.S. tobacco company, continued to benefit from its total tobacco portfolio approach. We also noted that management was keenly focused on innovation and building sustainable growth. The company announced its intention to acquire Lorillard in July 2014, and the deal closed in the second quarter of 2015. TECO Energy, a Florida based regulated utility company with a small regulated gas utility in New Mexico, announced that the company was to be acquired by Emera Inc., a Canadian utility company, at a premium. In late September, TECO divested its coal mining unit, which had been its plan since 2014. We expected the transaction to go through and to close around mid-2016. We believed that TECO was committed to paying its dividend until the deal closed. Global tobacco manufacturer

1. See footnote on page 5 for more information on Class R2 shares.

2. See footnote on page 6 for more information on this index.

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

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

9

Imperial Tobacco benefited from consolidation in the U.S. tobacco market. The company acquired the divested assets from the merger between Reynolds American and Lorillard and became the third largest tobacco company in the United States in late June. Despite the difficult global economic environment, Imperial Tobacco continued to drive growth through a combination of pricing, brand migrations and innovation. We believed that management was committed to returning cash to shareholders through an attractive and growing dividend. We also believed that debt reduction was likely to be a priority for cash over the next few years.

Among the stocks that detracted the most from absolute performance in the equity portion of the Fund were Potash Corp., CenturyLink and Royal Dutch Shell. Potash Corp. is one of the world’s largest producers of the crop nutrient potash, as well as a major producer of nitrogen and phosphate fertilizers. The company’s shares traded steadily lower in 2015 on concerns about Chinese demand, industry overcapacity and weak product pricing. Shares of CenturyLink—a provider of fixed-line telephone, Internet, cable TV and IT services—declined as investors grappled with the timing on a return to revenue growth and a poorly received investor day. The company remained on track on its elongated timeline for a return to cash flow growth. Royal Dutch Shell—a global integrated energy company that explores, produces and markets crude oil and natural gas—was hurt by a significant decline in crude oil and natural gas prices during the reporting period. In early 2015, Shell announced that it had entered into an agreement to acquire BG Group, a U.K.-based integrated energy company with a strong focus on natural gas. We believed that the acquisition made strategic sense and could benefit Shell over the long run. The company remained committed to its dividend, and we believed that the company’s scale, balance sheet, integrated business model, and capital efficiency and cost cutting initiatives would provide a variety of ways to weather the commodity price cycle.

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

The equity portion of the Fund made several significant purchases during the reporting period. Among them were positions in semiconductor equipment company Texas Instruments; oil, gas & consumable fuels company Occidental Petroleum; and records management company Iron Mountain. These purchases reflected the favorable shareholder yield attributes of the stocks.

Among the positions eliminated from the equity portion of the Fund were Lorillard and Targa Resources Partners. Tobacco company Lorillard was acquired by Reynolds American. We held

the position until we received a combination of cash and shares of Reynolds American. Targa Resources Partners LP is a U.S. midstream MLP that provides infrastructure services to producers of natural gas, natural gas liquid (NGL), and crude oil. Falling commodity prices increased Targa’s business & financial risks and reduced the company’s cash flow coverage of its dividend. We exited our position in Targa Resources Partners and used the proceeds to pursue other investments that we believed could enhance the Fund’s yield.

How did the sector weightings in the equity portion of the Fund change during the reporting period?

Sector weights are generally a function of our bottom-up stock selection process. During the time period, the equity portion of the Fund reduced its weightings most significantly in the utilities, consumer discretionary and consumer staples sectors. The equity sectors with the most substantial weighting increases were financials, energy and information technology.

How was the equity portion of the Fund positioned at the end of the reporting period?

The equity portion of the Fund continues to seek attractive returns by investing in a diversified group of companies focused on generating significant free cash flow and returning it to shareholders through a combination of dividends, share repurchases and debt reduction. This stock-by-stock process often results in the equity portion of the Fund having a different composition than the MSCI World Index in terms of types of companies held. At the end of the reporting period, the Index contained many companies that either lacked free cash flow or used their free cash flow primarily to reinvest and make acquisitions. The composition of the equity portion of the Fund may also differ in terms of sector weights.

As of October 31, 2015, the most significantly overweight positions relative to the MSCI World Index in the equity portion of the Fund were in the utilities and telecommunication services sectors. As of the same date, the most substantially underweight positions in the equity portion of the Fund were in the information technology and consumer discretionary sectors.

What factors affected the relative performance of the fixed-income portion of the Fund during the reporting period?

Throughout the reporting period, our strategy in the fixed-income portion of the Fund was to maintain long positions in credit, including high-yield and investment-grade corporate bonds and bank loans, combined with a short-duration posture and a yield-curve⁵ flattening bias. This positioning fell out of

5. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.

10 MainStay Income Builder Fund

favor during the second half of the reporting period. Longer-maturity U.S. Treasury yields declined during the reporting period, and with a shorter duration than the Barclays U.S. Aggregate Bond Index, the fixed-income portion of the Fund was less sensitive to yield changes.

Corporate bonds trailed comparable-duration U.S. Treasury securities during the reporting period, with the performance gap more pronounced for below-investment-grade securities. The fixed-income portion of the Fund was overweight in both investment-grade and high-yield corporate bonds relative to the Barclays U.S. Aggregate Bond Index. Hard-asset sectors such as energy and metals/mining, were among the laggards in the fixed-income portion of the Fund, while higher-quality financials and slightly longer-duration bonds performed well. During the reporting period, the fixed-income portion of the Fund slightly reduced its exposure to weaker credit profiles within the energy sector.

The senior loan market also was not immune to the problems facing risky assets, including seasonal illiquidity, severe pressure in fixed-rate high-yield bonds, and volatile commodity and asset prices globally. Even so, senior loans remained in positive territory year-to-date and outperformed the Index during the reporting period. We believed that senior loans were likely to weather the energy and metals/mining storm that had presented default-and-recovery challenges to their high-yield bond counterparts.

We did not observe any meaningful earnings disappointments or economic developments that would force us to change our outlook. We believed that U.S. corporate credit fundamentals were sound and that credit-sensitive bonds continued to offer good relative value. We were constructive on both U.S. growth and valuations within U.S. credit markets. Since we did not believe that the domestic economic cycle had reached a turning point, we were not inclined to reduce overall risk in the fixed-income portion of the Fund. In fact, we believed that investor angst—reflected in declining prices and widening spreads⁶—may have represented an overcompensation for fundamentals.

What was the duration strategy of the fixed-income portion of the Fund during the reporting period?

In order to reduce the duration of the fixed-income portion of the Fund and minimize sensitivity to a move in interest rates, we maintained a meaningful short position in two-year U.S. Treasury securities through the use of U.S. Treasury futures. At the end of the reporting period, the duration of the fixed-income

portion of the Fund was approximately 3.1 years. This was 2.5 years shorter than the 5.6-year duration of the Barclays U.S. Aggregate Bond Index as of October 31, 2015.

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

Throughout the reporting period, we considered a number of factors in positioning the fixed-income portion of the Fund. These factors included inconsistent economic data, global central bank monetary policy, volatility in energy prices, China’s slowing economy and a flattening yield curve. We believed that corporate bonds—investment-grade and high-yield—warranted an overweight position relative to government-related securities because the low-interest-rate environment had sparked healthy demand for higher-yielding products. Additionally, improving profitability had signaled that corporations were doing more with less: less leverage, less short-term debt, and smaller funding gaps. In turn, we believed that strengthening credit fundamentals supported the narrowing of spreads, as did a favorable supply/demand balance for corporate debt. The positive momentum of the stock market could also tend to strengthen the performance of corporate bonds across the credit-quality spectrum. For these reasons, we did not make any major shifts in the Fund’s positioning during the reporting period and we maintained the Fund’s credit bias. During the reporting period, however, we did reduce our position in emerging-markets because of idiosyncratic risks that have bubbled up in that sector.

Which market segments were the strongest contributors to the performance of the fixed-income portion of the Fund and which market segments were particularly weak?

In the fixed-income portion of the Fund, the position in loans held up well in a volatile market and posted positive returns during the reporting period. Our position in high-yield corporate bonds detracted from performance in the fixed-income portion of the Fund, as the yield advantage was more than offset by the effects of widening spreads. Within the high-yield bond position in the fixed-income portion of the Fund, our allocation to the energy sector was the most substantial detractor. The outlook for companies involved in the exploration and production of gas and oil was clouded by an imbalance of supply and demand that led to price declines. Basic Energy Services, Chesapeake

6. The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time. The term “spread product” refers to asset classes that typically trade at a spread to comparable U.S. Treasury securities.

11

Energy, and Samson Investment were among the fixed-income energy positions that performed poorly. Some fixed-income positions within the basic industry sector were hurt by lower commodity prices.

Positive contributors within the high-yield bond market included homebuilders and related entities, such as KB Homes and Building Materials Corporation, which benefited from an upturn in housing. Within the investment-grade bond sector, lower interest rates enabled banks to preserve margins and profitability. Among the positions in the fixed-income portion of the Fund that benefited were Goldman Sachs, JPMorgan Chase, Bank of America, and Morgan Stanley.

Did the fixed-income portion of the Fund make any significant purchases or sales during the reporting period?

During the reporting period, we initiated fixed-income positions in power generation and utility company IPALCO Enterprises and oil and gas pipeline company Targa Resources Partners. IPALCO Enterprises, a subsidiary of AES Corp., is an Indiana-based utility company that has a stable regulated business and strong cash flow. Targa Resources Partners’ bonds declined as energy prices fell. The pipeline operator, however, generally has minimal exposure to oil and gas prices. The company makes its money on the transfer of oil and gas through its network of pipelines.

We sold positions in pipeline company Energy Transfer Partners and insurance company Liberty Mutual. Energy Transfer’s partnership is being liquidated, so we sold the bonds on a relative-value trade and bought the bonds of Targa Resources Partners. We believe that the Fund’s Liberty Mutual bonds may not be called in 2017 as we had previously anticipated. We sold the position, expecting duration to widen and volatility to increase as the call becomes less likely.

How did the sector weightings in the fixed-income portion of the Fund change during the reporting period?

During the reporting period, the fixed-income portion of the Fund reduced its position in emerging-market corporate bonds.

Despite recent improvements, emerging markets still faced elevated idiosyncratic risk and were subject to weak commodity prices. The fixed-income portion of the Fund slightly increased its weight in loans, using the proceeds from emerging-market bond sales. While the fixed-income portion of the Fund maintained its weighting in high-yield corporate bonds, we pared back exposure to companies with weaker credit profiles while selectively participating in the new issue market.

How was the fixed-income portion of the Fund positioned at the end of the reporting period?

In spite of market volatility, we did not change our baseline view on Federal Reserve policy, economic fundamentals and valuations within the credit markets. At the end of the reporting period, we believed that economic growth would continue to be moderate and that the Federal Reserve would remain highly accommodative. Even so, we believed that it was increasingly likely that the Federal Open Market Committee would raise the federal funds target rate in the coming months. Our central belief was that monetary policy played a critical role in the creation of credit and that the Federal Reserve has the ability to control monetary policy through its influence on short-term interest rates.

As of October 31, 2015, the fixed-income portion of the Fund maintained an overweight position relative to the Barclays U.S. Aggregate Bond Index in spread product, specifically in high-yield bonds. The increased volatility experienced in the third quarter of 2015 created a wider disparity between spreads and defaults, strengthening our resolve to maintain an overweight position in high-yield securities. As of the same date, the fixed-income portion of the Fund held underweight positions relative to the Index in sectors that tend to be more interest-rate sensitive, such as U.S. Treasury securities and agency securities. As of October 31, 2015, the Fund’s duration remained 2.5 years below that of the Barclays U.S. Aggregate Bond Index.

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

12 MainStay Income Builder Fund

Portfolio of Investments October 31, 2015

	Principal Amount		Value
Long-Term Bonds 42.0%† Asset-Backed Securities 0.5%
Home Equity 0.5%
Ameriquest Mortgage Securities, Inc. Series 2003-8, Class AF5 5.14%, due 10/25/33 (a)	$	32,264	$	32,643
Carrington Mortgage Loan Trust Series 2006-NC4, Class A5 0.254%, due 10/25/36 (b)		250,316		237,009
Chase Funding Trust Series 2002-2, Class 1A5 6.333%, due 4/25/32 (a)		153,006		155,785
CIT Group Home Equity Loan Trust Series 2003-1, Class A4 3.93%, due 3/20/32 (a)		24,265		24,564
Citigroup Mortgage Loan Trust Series 2007-AHL2, Class A3A 0.264%, due 5/25/37 (b)		582,126		411,539
Countrywide Asset-Backed Certificates Series 2003-5, Class AF5 5.525%, due 2/25/34 (a)		485,496		504,347
Equity One Mortgage Pass-Through Trust
Series 2003-4, Class AF6 5.333%, due 10/25/34 (a)		121,260		122,568
Series 2003-3, Class AF4 5.495%, due 12/25/33 (a)		306,742		305,692
GSAA Home Equity Trust Series 2006-14, Class A1 0.244%, due 9/25/36 (b)		5,814,318		3,051,159
HSI Asset Securitization Corp. Trust Series 2007-NC1, Class A1 0.294%, due 4/25/37 (b)		42,462		42,038
JPMorgan Mortgage Acquisition Trust Series 2007-HE1, Class AF1 0.294%, due 3/25/47 (b)		549,274		336,702
MASTR Asset Backed Securities Trust Series 2006-HE4, Class A1 0.244%, due 11/25/36 (b)		738,968		339,613
RAMP Trust
Series 2003-RS7, Class AI6 5.34%, due 8/25/33 (b)		18,364		18,414
Series 2003-RZ5, Class A7 5.47%, due 9/25/33 (a)		37,783		38,884
RASC Trust Series 2002-KS2, Class AI6 6.228%, due 4/25/32 (b)		32,514		33,063
Saxon Asset Securities Trust Series 2003-1, Class AF5 5.292%, due 6/25/33 (a)		96,707		99,066

	Principal Amount		Value
Home Equity (continued)
Soundview Home Equity Loan Trust Series 2006-EQ2, Class A2 0.304%, due 1/25/37 (b)	$	1,157,582	$	777,198
Specialty Underwriting & Residential Finance Trust Series 2006-BC4, Class A2B 0.304%, due 9/25/37 (b)		772,805		361,787
Terwin Mortgage Trust Series 2005-14HE, Class AF2 4.849%, due 8/25/36 (a)		84,500		86,787
				6,978,858
Student Loans 0.0%‡
KeyCorp Student Loan Trust Series 2000-A, Class A2 0.649%, due 5/25/29 (b)		594,476		575,162
Total Asset-Backed Securities (Cost $8,680,404)				7,554,020
Convertible Bonds 0.2%
Leisure Time 0.2%
Jarden Corp. 1.125%, due 3/15/34		2,650,000		2,934,875
Transportation 0.0%‡
Hornbeck Offshore Services, Inc. 1.50%, due 9/1/19		760,000		563,825
Total Convertible Bonds (Cost $3,481,935)				3,498,700
Corporate Bonds 36.7%
Advertising 0.0%‡
Lamar Media Corp. 5.375%, due 1/15/24		625,000		648,437
Aerospace & Defense 0.7%
KLX, Inc. 5.875%, due 12/1/22 (c)		3,485,000		3,556,878
Spirit AeroSystems, Inc. 6.75%, due 12/15/20		1,000,000		1,038,750
TransDigm, Inc.
6.00%, due 7/15/22		1,100,000		1,111,000
7.50%, due 7/15/21		1,600,000		1,688,000
Triumph Group, Inc. 4.875%, due 4/1/21		3,875,000		3,458,438
				10,853,066

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings or issuers held, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Agriculture 0.0%‡
¨Reynolds American, Inc. 8.125%, due 6/23/19 (c)	$	255,000	$	301,521
Airlines 0.7%
American Airlines Group, Inc. 4.625%, due 3/1/20 (c)		3,700,000		3,667,625
Continental Airlines, Inc.
Series A 7.25%, due 5/10/21		1,667,706		1,877,004
Series 2003-ERJ1 7.875%, due 1/2/20		800,112		832,837
U.S. Airways Group, Inc.
Class A Series 2012-1 Pass Through Trust 5.90%, due 4/1/26		2,038,845		2,252,924
Class A Series 2010-1 Pass Through Trust 6.25%, due 10/22/24		1,064,227		1,191,935
UAL 2009-1 Pass-Through Trust 10.40%, due 5/1/18		417,365		442,657
				10,264,982
Auto Manufacturers 0.8%
FCA U.S. LLC / CG Co-Issuer, Inc. 8.25%, due 6/15/21		2,100,000		2,247,000
Ford Motor Co.
6.625%, due 10/1/28		1,500,000		1,793,646
7.45%, due 7/16/31		450,000		577,589
8.90%, due 1/15/32		215,000		275,759
Ford Motor Credit Co. LLC 5.875%, due 8/2/21		350,000		398,958
General Motors Financial Co., Inc.
3.20%, due 7/13/20		1,800,000		1,785,748
3.25%, due 5/15/18		325,000		328,950
3.45%, due 4/10/22		3,800,000		3,710,787
Navistar International Corp. 8.25%, due 11/1/21		2,425,000		1,891,500
				13,009,937
Auto Parts & Equipment 1.0%
Dana Holding Corp. 5.375%, due 9/15/21		3,780,000		3,855,600
Goodyear Tire & Rubber Co. (The)
6.50%, due 3/1/21		625,000		664,063
8.25%, due 8/15/20		3,030,000		3,169,380
MPG Holdco I, Inc. 7.375%, due 10/15/22		3,655,000		3,883,437
Schaeffler Finance B.V. 4.75%, due 5/15/23 (c)		3,345,000		3,370,087
				14,942,567

	Principal Amount		Value
Banks 3.9%
Bank of America Corp.
5.125%, due 12/29/49 (b)	$	965,000	$	945,700
5.42%, due 3/15/17		135,000		141,646
5.625%, due 7/1/20		645,000		726,551
6.11%, due 1/29/37		980,000		1,135,894
7.625%, due 6/1/19		1,015,000		1,195,717
8.00%, due 7/29/49 (b)		1,500,000		1,563,900
8.57%, due 11/15/24		485,000		616,568
Capital One Financial Corp. 5.55%, due 12/29/49 (b)		4,595,000		4,603,615
CIT Group, Inc.
3.875%, due 2/19/19		1,740,000		1,766,100
4.25%, due 8/15/17		650,000		664,625
5.00%, due 8/15/22		1,175,000		1,238,156
6.625%, due 4/1/18 (c)		750,000		808,125
Citigroup, Inc.
4.05%, due 7/30/22		105,000		107,834
6.30%, due 12/29/49 (b)		2,820,000		2,789,121
6.875%, due 6/1/25		1,715,000		2,119,164
Discover Bank 8.70%, due 11/18/19		1,064,000		1,263,429
Goldman Sachs Group, Inc. (The)
3.625%, due 1/22/23		3,045,000		3,109,204
6.75%, due 10/1/37		2,670,000		3,217,673
HSBC Holdings PLC 6.375%, due 12/29/49 (b)		3,000,000		2,971,530
JPMorgan Chase & Co.
6.125%, due 12/29/49 (b)		3,005,000		3,069,006
7.90%, due 4/29/49 (b)		3,300,000		3,428,700
Mellon Capital III 6.369%, due 9/5/66 (b)		GBP 1,950,000		3,039,186
Mizuho Financial Group Cayman 3, Ltd. 4.60%, due 3/27/24 (c)	$	2,250,000		2,307,760
Morgan Stanley
4.875%, due 11/1/22		1,125,000		1,213,138
5.00%, due 11/24/25		2,535,000		2,712,488
5.45%, due 7/29/49 (b)		2,825,000		2,779,094
Royal Bank of Scotland Group PLC
5.125%, due 5/28/24		800,000		820,245
6.125%, due 12/15/22		1,530,000		1,677,813
Santander Holdings USA, Inc. 2.65%, due 4/17/20		3,875,000		3,832,131
Wells Fargo & Co. 5.90%, due 12/29/49 (b)		3,750,000		3,843,750
				59,707,863
Beverages 0.1%
Constellation Brands, Inc. 4.25%, due 5/1/23		2,100,000		2,149,875

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

	Principal Amount		Value
Corporate Bonds (continued)
Biotechnology 0.2%
Biogen, Inc. 3.625%, due 9/15/22	$	3,480,000	$	3,538,206
Building Materials 1.2%
Building Materials Corporation of America 5.375%, due 11/15/24 (c)		2,940,000		3,024,525
Fortune Brands Home & Security, Inc. 4.00%, due 6/15/25		4,420,000		4,436,548
Masonite International Corp. 5.625%, due 3/15/23 (c)		3,725,000		3,892,625
USG Corp.
6.30%, due 11/15/16		4,695,000		4,847,588
9.75%, due 1/15/18		1,330,000		1,492,925
				17,694,211
Chemicals 0.4%
Ashland, Inc. 4.75%, due 8/15/22		1,890,000		1,891,040
Dow Chemical Co. (The)
4.125%, due 11/15/21		1,605,000		1,696,302
8.55%, due 5/15/19		225,000		270,598
Hexion, Inc. 6.625%, due 4/15/20		870,000		737,325
WR Grace & Co. 5.125%, due 10/1/21 (c)		1,885,000		1,960,400
				6,555,665
Commercial Services 1.0%
Avis Budget Car Rental LLC / Avis Budget Finance, Inc.
5.125%, due 6/1/22 (c)		3,000,000		3,062,220
5.50%, due 4/1/23		725,000		751,281
Hertz Corp. (The)
5.875%, due 10/15/20		450,000		465,750
7.375%, due 1/15/21		2,700,000		2,809,674
Service Corporation International 5.375%, due 1/15/22		3,600,000		3,798,000
United Rentals North America, Inc.
4.625%, due 7/15/23		1,350,000		1,355,900
5.75%, due 11/15/24		1,600,000		1,624,000
6.125%, due 6/15/23		710,000		740,885
				14,607,710
Computers 0.4%
International Business Machines Corp. 7.00%, due 10/30/25		2,050,000		2,651,218
NCR Corp. 5.00%, due 7/15/22		3,530,000		3,468,225
				6,119,443

	Principal Amount		Value
Cosmetics & Personal Care 0.1%
Albea Beauty Holdings S.A. 8.375%, due 11/1/19 (c)	$	1,850,000	$	1,944,812
Diversified Financial Services 0.3%
Alterra Finance LLC 6.25%, due 9/30/20		200,000		228,255
GE Capital Trust II Series Reg S 5.50%, due 9/15/67 (b)		EUR 2,240,000		2,574,298
General Electric Capital Corp. Series Reg S 6.50%, due 9/15/67 (b)		GBP 760,000		1,212,622
Peachtree Corners Funding Trust 3.976%, due 2/15/25 (c)	$	940,000		946,042
				4,961,217
Electric 0.7%
Calpine Corp. 5.75%, due 1/15/25		3,340,000		3,164,650
FirstEnergy Transmission LLC 5.45%, due 7/15/44 (c)		3,405,000		3,499,448
Great Plains Energy, Inc. 5.292%, due 6/15/22 (a)		1,130,000		1,252,160
Puget Energy, Inc. 5.625%, due 7/15/22		815,000		920,802
WEC Energy Group, Inc. 6.25%, due 5/15/67 (b)		1,554,717		1,302,076
				10,139,136
Engineering & Construction 0.1%
MasTec, Inc. 4.875%, due 3/15/23		1,760,000		1,474,000
Entertainment 0.4%
Mohegan Tribal Gaming Authority 9.75%, due 9/1/21		1,935,000		1,993,050
Pinnacle Entertainment, Inc. 7.75%, due 4/1/22		3,500,000		3,876,250
Scientific Games International, Inc. 7.00%, due 1/1/22 (c)		325,000		326,625
				6,195,925
Finance—Auto Loans 0.3%
Ally Financial, Inc.
3.50%, due 1/27/19		3,250,000		3,270,312
8.00%, due 11/1/31		770,000		933,625
				4,203,937
Finance—Consumer Loans 0.8%
HSBC Finance Capital Trust IX 5.911%, due 11/30/35 (b)		2,400,000		2,402,400
Navient Corp. 8.00%, due 3/25/20		2,700,000		2,862,000

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Finance—Consumer Loans (continued)
OneMain Financial Holdings, Inc. 7.25%, due 12/15/21 (c)	$	3,305,000	$	3,453,725
Springleaf Finance Corp.
5.25%, due 12/15/19		700,000		696,500
6.00%, due 6/1/20		775,000		784,688
7.75%, due 10/1/21		1,765,000		1,899,581
				12,098,894
Finance—Credit Card 0.2%
American Express Co. 6.80%, due 9/1/66 (b)		1,600,000		1,610,400
Discover Financial Services 3.85%, due 11/21/22		1,491,000		1,478,890
				3,089,290
Finance—Investment Banker/Broker 0.1%
Jefferies Group LLC
5.125%, due 1/20/23		722,000		722,579
6.45%, due 6/8/27		1,000,000		1,042,839
				1,765,418
Finance—Other Services 0.2%
Icahn Enterprises, L.P. / Icahn Enterprises Finance Corp.
5.875%, due 2/1/22		1,195,000		1,230,850
6.00%, due 8/1/20		2,110,000		2,202,312
				3,433,162
Food 0.9%
Cosan Luxembourg S.A. 5.00%, due 3/14/23 (c)		500,000		420,000
Kerry Group Financial Services 3.20%, due 4/9/23 (c)		2,899,000		2,814,474
Kraft Heinz Foods Co. 4.875%, due 2/15/25 (c)		2,123,000		2,282,463
Pilgrim’s Pride Corp. 5.75%, due 3/15/25 (c)		2,530,000		2,586,925
Smithfield Foods, Inc.
6.625%, due 8/15/22		575,000		615,250
7.75%, due 7/1/17		925,000		1,001,312
Tyson Foods, Inc. 3.95%, due 8/15/24		4,235,000		4,323,579
				14,044,003
Food Services 0.2%
Aramark Services, Inc. 5.75%, due 3/15/20		2,500,000		2,609,375
Hand & Machine Tools 0.2%
Milacron LLC / Mcron Finance Corp. 7.75%, due 2/15/21 (c)		2,950,000		3,023,750

	Principal Amount		Value
Health Care—Products 1.0%
Alere, Inc. 7.25%, due 7/1/18	$	3,300,000	$	3,440,250
Boston Scientific Corp. 2.85%, due 5/15/20		3,740,000		3,737,715
Hologic, Inc. 5.25%, due 7/15/22 (c)		3,545,000		3,700,094
Kinetic Concepts, Inc. / KCI USA, Inc. 10.50%, due 11/1/18		1,300,000		1,372,670
Mallinckrodt International Finance S.A. 4.75%, due 4/15/23		1,125,000		978,750
Mallinckrodt International Finance S.A. / Mallinckrodt CB LLC
4.875%, due 4/15/20 (c)		1,725,000		1,653,844
5.75%, due 8/1/22 (c)		1,120,000		1,064,694
				15,948,017
Health Care—Services 1.0%
CHS / Community Health Systems, Inc. 5.125%, due 8/1/21		3,750,000		3,871,875
Cigna Corp. 4.375%, due 12/15/20		270,000		287,391
Fresenius Medical Care U.S. Finance II, Inc. 5.875%, due 1/31/22 (c)		1,985,000		2,163,650
HCA, Inc. 5.00%, due 3/15/24		3,750,000		3,862,500
Tenet Healthcare Corp.
3.837%, due 6/15/20 (b)(c)		2,950,000		2,927,875
6.00%, due 10/1/20		2,750,000		2,970,000
				16,083,291
Home Builders 1.6%
Beazer Homes USA, Inc.
5.75%, due 6/15/19		885,000		851,813
7.25%, due 2/1/23		1,185,000		1,116,862
CalAtlantic Group, Inc. 8.375%, due 5/15/18		2,000,000		2,300,000
K Hovnanian Enterprises, Inc. 7.25%, due 10/15/20 (c)		5,435,000		5,108,900
Lennar Corp.
4.50%, due 6/15/19		2,400,000		2,490,000
4.50%, due 11/15/19		750,000		776,250
MDC Holdings, Inc. 5.625%, due 2/1/20		2,750,000		2,873,750
Shea Homes, L.P. / Shea Homes Funding Corp. 5.875%, due 4/1/23 (c)		3,320,000		3,473,550
Toll Brothers Finance Corp. 5.875%, due 2/15/22		1,340,000		1,442,175
TRI Pointe Holdings, Inc.
4.375%, due 6/15/19		1,000,000		993,750
5.875%, due 6/15/24		2,935,000		2,935,000
				24,362,050

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

	Principal Amount		Value
Corporate Bonds (continued)
Household Products & Wares 0.1%
Spectrum Brands, Inc. 5.75%, due 7/15/25 (c)	$	1,165,000	$	1,242,181
Insurance 2.7%
Allstate Corp. (The) 6.50%, due 5/15/67 (b)		3,790,000		4,187,950
Chubb Corp. (The) 6.375%, due 3/29/67 (b)		1,660,000		1,593,600
Genworth Holdings, Inc.
4.90%, due 8/15/23		1,910,000		1,446,825
6.15%, due 11/15/66 (b)		1,320,000		587,400
Hartford Financial Services Group, Inc. (The) 6.10%, due 10/1/41		4,100,000		4,913,215
Liberty Mutual Group, Inc.
4.25%, due 6/15/23 (c)		250,000		256,230
6.50%, due 3/15/35 (c)		220,000		261,440
7.80%, due 3/7/87 (c)		1,760,000		2,063,600
10.75%, due 6/15/88 (b)(c)		750,000		1,125,000
Oil Insurance, Ltd. 3.309%, due 12/29/49 (b)(c)		1,320,000		1,161,600
Pacific Life Insurance Co. 7.90%, due 12/30/23 (c)		2,575,000		3,218,333
Progressive Corp. (The) 6.70%, due 6/15/67 (b)		3,700,000		3,718,500
Protective Life Corp. 8.45%, due 10/15/39		1,640,000		2,174,778
Provident Cos., Inc. 7.25%, due 3/15/28		2,115,000		2,595,407
Prudential Financial, Inc. 5.625%, due 6/15/43 (b)		1,760,000		1,841,840
Swiss Re Capital I, L.P. 6.854%, due 5/29/49 (b)(c)		1,350,000		1,369,238
Validus Holdings, Ltd. 8.875%, due 1/26/40		1,690,000		2,173,654
Voya Financial, Inc. 5.50%, due 7/15/22		1,860,000		2,105,968
XLIT, Ltd.
4.45%, due 3/31/25		2,615,000		2,614,524
6.50%, due 10/29/49 (b)		2,120,000		1,691,124
				41,100,226
Iron & Steel 0.6%
AK Steel Corp.
7.625%, due 10/1/21		2,710,000		1,294,025
8.75%, due 12/1/18		1,900,000		1,828,370
ArcelorMittal
7.00%, due 2/25/22		1,500,000		1,421,250
7.75%, due 10/15/39		2,300,000		1,960,750

	Principal Amount		Value
Iron & Steel (continued)
Cliffs Natural Resources, Inc.
5.90%, due 3/15/20	$	1,085,000	$	347,200
5.95%, due 1/15/18		745,000		383,675
United States Steel Corp. 7.375%, due 4/1/20		2,250,000		1,676,250
				8,911,520
Lodging 0.7%
MGM Resorts International
6.75%, due 10/1/20		4,600,000		4,899,000
8.625%, due 2/1/19		80,000		90,400
Starwood Hotels & Resorts Worldwide, Inc.
6.75%, due 5/15/18		265,000		290,536
7.15%, due 12/1/19		1,900,000		2,191,941
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.
4.25%, due 5/30/23 (c)		1,850,000		1,646,500
5.50%, due 3/1/25 (c)		1,905,000		1,787,938
				10,906,315
Machinery—Construction & Mining 0.2%
Terex Corp.
6.00%, due 5/15/21		725,000		717,895
6.50%, due 4/1/20		2,400,000		2,418,000
				3,135,895
Machinery—Diversified 0.2%
Zebra Technologies Corp. 7.25%, due 10/15/22		3,210,000		3,502,912
Media 1.1%
CCO Holdings LLC / CCO Holdings Capital Corp. 5.75%, due 1/15/24		1,555,000		1,578,325
CCO Safari II LLC 4.464%, due 7/23/22 (c)		3,890,000		3,946,397
Clear Channel Worldwide Holdings, Inc. Series B 6.50%, due 11/15/22		3,150,000		3,283,875
DISH DBS Corp.
5.875%, due 7/15/22		2,050,000		2,009,000
7.125%, due 2/1/16		1,400,000		1,417,010
iHeartCommunications, Inc. 9.00%, due 3/1/21		3,070,000		2,525,075
NBC Universal Media LLC 5.15%, due 4/30/20		160,000		180,709
Time Warner Entertainment Co., L.P. 8.375%, due 3/15/23		800,000		992,870
Time Warner, Inc. 7.70%, due 5/1/32		300,000		385,793
				16,319,054

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Mining 0.3%
Aleris International, Inc. 7.875%, due 11/1/20	$	2,338,000	$	2,197,720
Anglo American Capital PLC 9.375%, due 4/8/19 (c)		250,000		269,012
Rio Tinto Finance USA, Ltd. 9.00%, due 5/1/19		1,300,000		1,578,411
				4,045,143
Miscellaneous—Manufacturing 0.7%
Amsted Industries, Inc. 5.00%, due 3/15/22 (c)		3,785,000		3,822,850
Bombardier, Inc. 6.00%, due 10/15/22 (c)		890,000		685,300
Gates Global LLC / Gates Global Co. 6.00%, due 7/15/22 (c)		3,180,000		2,551,950
Siemens Financieringsmaatschappij N.V. 6.125%, due 8/17/26 (c)		300,000		372,065
Textron Financial Corp. 6.00%, due 2/15/67 (b)(c)		3,540,000		2,619,600
				10,051,765
Oil & Gas 1.6%
Berry Petroleum Co. LLC 6.375%, due 9/15/22		1,490,000		536,400
California Resources Corp. 5.00%, due 1/15/20		1,170,000		851,175
CHC Helicopter S.A. 9.25%, due 10/15/20		2,871,000		1,636,470
Chesapeake Energy Corp. 6.625%, due 8/15/20		2,670,000		1,808,925
Cimarex Energy Co. 4.375%, due 6/1/24		1,965,000		1,954,586
CITGO Petroleum Corp. 6.25%, due 8/15/22 (c)		1,980,000		1,940,400
Denbury Resources, Inc. 6.375%, due 8/15/21		2,550,000		1,861,500
Eni S.p.A. 4.15%, due 10/1/20 (c)		1,825,000		1,918,593
EP Energy LLC / Everest Acquisition Finance, Inc. 9.375%, due 5/1/20		1,075,000		935,250
Linn Energy LLC / Linn Energy Finance Corp. 8.625%, due 4/15/20		5,350,000		1,391,000
Precision Drilling Corp.
6.50%, due 12/15/21		1,485,000		1,291,950
6.625%, due 11/15/20		635,000		565,944
SM Energy Co.
5.00%, due 1/15/24		1,970,000		1,768,075
6.125%, due 11/15/22		2,240,000		2,172,800

	Principal Amount		Value
Oil & Gas (continued)
Sunoco, L.P. / Sunoco Finance Corp.
5.50%, due 8/1/20 (c)	$	2,000,000	$	2,050,000
6.375%, due 4/1/23 (c)		2,075,000		2,090,562
				24,773,630
Oil & Gas Services 0.2%
Basic Energy Services, Inc. 7.75%, due 2/15/19		2,520,000		1,014,300
PHI, Inc. 5.25%, due 3/15/19		2,005,000		1,774,425
				2,788,725
Packaging & Containers 1.2%
Ball Corp. 5.00%, due 3/15/22		3,700,000		3,820,250
Crown Americas LLC / Crown Americas Capital Corp. IV 4.50%, due 1/15/23		1,400,000		1,403,500
Crown European Holdings S.A. 4.00%, due 7/15/22 (c)		EUR 2,150,000		2,467,684
Kloeckner Pentaplast of America, Inc. 7.125%, due 11/1/20 (c)	$	1,045,000		1,192,227
Owens-Brockway Glass Container, Inc. 5.00%, due 1/15/22 (c)		3,890,000		3,965,388
Reynolds Group Issuer, Inc.
5.75%, due 10/15/20		2,000,000		2,080,000
9.875%, due 8/15/19		1,110,000		1,168,275
Sealed Air Corp.
4.875%, due 12/1/22 (c)		475,000		488,063
5.50%, due 9/15/25 (c)		1,900,000		2,004,500
				18,589,887
Pharmaceuticals 0.7%
Actavis Funding SCS 3.45%, due 3/15/22		4,050,000		4,023,861
Endo Ltd. / Endo Finance LLC / Endo Finco, Inc. 6.00%, due 2/1/25 (c)		3,798,000		3,769,515
Valeant Pharmaceuticals International, Inc.
5.50%, due 3/1/23 (c)		1,675,000		1,407,000
5.875%, due 5/15/23 (c)		325,000		273,610
7.50%, due 7/15/21 (c)		1,500,000		1,368,750
				10,842,736
Pipelines 2.5%
Columbia Pipeline Group, Inc. 3.30%, due 6/1/20 (c)		3,260,000		3,251,817
Crestwood Midstream Partners, L.P. / Crestwood Midstream Finance Corp. 6.25%, due 4/1/23 (c)		2,710,000		2,303,500
Energy Transfer Equity, L.P. 5.875%, due 1/15/24		2,000,000		1,937,550

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

	Principal Amount		Value
Corporate Bonds (continued)
Pipelines (continued)
Energy Transfer Partners, L.P. 7.60%, due 2/1/24	$	650,000	$	730,526
Hiland Partners, L.P. / Hiland Partners Finance Corp. 5.50%, due 5/15/22 (c)		3,210,000		3,125,657
¨Kinder Morgan, Inc. 7.75%, due 1/15/32		2,950,000		2,985,763
MarkWest Energy Partners, L.P. / MarkWest Energy Finance Corp.
4.875%, due 6/1/25		100,000		93,500
5.50%, due 2/15/23		1,975,000		1,945,375
Plains All American Pipeline, L.P. / PAA Finance Corp. 4.70%, due 6/15/44		3,050,000		2,626,855
Regency Energy Partners, L.P. / Regency Energy Finance Corp.
5.50%, due 4/15/23		775,000		751,595
5.75%, due 9/1/20		1,470,000		1,558,607
5.875%, due 3/1/22		1,350,000		1,386,406
Spectra Energy Partners, L.P. 4.75%, due 3/15/24		1,740,000		1,789,724
Targa Resources Partners, L.P. / Targa Resources Partners Finance Corp.
4.25%, due 11/15/23		2,165,000		1,894,375
5.25%, due 5/1/23		4,240,000		3,943,200
Tesoro Logistics, L.P. / Tesoro Logistics Finance Corp.
5.50%, due 10/15/19 (c)		1,845,000		1,909,575
5.875%, due 10/1/20		1,725,000		1,794,000
Williams Cos., Inc. (The)
3.70%, due 1/15/23		1,900,000		1,550,856
4.55%, due 6/24/24		1,070,000		895,525
Williams Partners, L.P. / ACMP Finance Corp. 4.875%, due 5/15/23		2,745,000		2,477,634
				38,952,040
Real Estate Investment Trusts 0.6%
Corrections Corporation of America 5.00%, due 10/15/22		2,180,000		2,207,250
GEO Group, Inc. (The) 5.875%, due 1/15/22		4,000,000		4,065,000
¨Iron Mountain, Inc. 5.75%, due 8/15/24		3,300,000		3,316,500
Welltower, Inc. 4.70%, due 9/15/17		290,000		304,719
				9,893,469

	Principal Amount		Value
Retail 1.5%
AmeriGas Finance LLC / AmeriGas Finance Corp.
6.75%, due 5/20/20	$	1,140,000	$	1,181,325
7.00%, due 5/20/22		1,400,000		1,477,000
Brinker International, Inc. 2.60%, due 5/15/18		1,885,000		1,887,596
CVS Pass-Through Trust 5.789%, due 1/10/26 (c)(d)		210,563		232,210
Dollar Tree, Inc. 5.75%, due 3/1/23 (c)		3,550,000		3,740,812
Macy’s Retail Holdings, Inc. 3.875%, due 1/15/22		1,750,000		1,781,085
QVC, Inc. 4.85%, due 4/1/24		2,500,000		2,444,070
Signet UK Finance PLC 4.70%, due 6/15/24		3,200,000		3,209,750
Suburban Propane Partners, L.P. / Suburban Energy Finance Corp. 5.50%, due 6/1/24		2,465,000		2,391,050
Tiffany & Co. 3.80%, due 10/1/24		4,715,000		4,665,111
Wal-Mart Stores, Inc. 6.75%, due 10/15/23		314,000		392,853
				23,402,862
Semiconductors 0.7%
Freescale Semiconductor, Inc.
5.00%, due 5/15/21 (c)		400,000		413,000
6.00%, due 1/15/22 (c)		3,200,000		3,408,000
NXP B.V. / NXP Funding LLC 4.625%, due 6/15/22 (c)		4,350,000		4,437,000
Sensata Technologies B.V. 5.00%, due 10/1/25 (c)		2,990,000		2,918,987
				11,176,987
Software 0.1%
First Data Corp. 5.375%, due 8/15/23 (c)		1,150,000		1,170,125
Telecommunications 2.1%
CC Holdings GS V LLC / Crown Castle GS III Corp. 2.381%, due 12/15/17		2,140,000		2,154,978
¨CenturyLink, Inc. 5.80%, due 3/15/22		4,000,000		3,890,000
CommScope Technologies Finance LLC 6.00%, due 6/15/25 (c)		850,000		862,750
CommScope, Inc. 5.00%, due 6/15/21 (c)		3,090,000		3,109,312
Hughes Satellite Systems Corp.
6.50%, due 6/15/19		990,000		1,089,743
7.625%, due 6/15/21		1,200,000		1,308,000

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 October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Telecommunications (continued)
Inmarsat Finance PLC 4.875%, due 5/15/22 (c)	$	2,680,000	$	2,659,900
Intelsat Luxembourg S.A. 8.125%, due 6/1/23		3,200,000		1,896,000
Sprint Communications, Inc. 6.00%, due 11/15/22		1,900,000		1,623,531
Sprint Corp. 7.25%, due 9/15/21		1,300,000		1,194,375
T-Mobile USA, Inc. 6.125%, due 1/15/22		3,515,000		3,576,512
Telecom Italia Capital S.A. 7.721%, due 6/4/38		315,000		335,475
Telefonica Emisiones SAU
4.57%, due 4/27/23		2,552,000		2,683,308
5.462%, due 2/16/21		395,000		440,812
UPCB Finance IV, Ltd. 5.375%, due 1/15/25 (c)		2,050,000		2,052,563
¨Verizon Communications, Inc. 5.15%, due 9/15/23		2,325,000		2,591,459
				31,468,718
Transportation 0.4%
Hapag-Lloyd A.G. 9.75%, due 10/15/17 (c)		375,000		384,375
Hornbeck Offshore Services, Inc.
5.00%, due 3/1/21		215,000		164,475
5.875%, due 4/1/20		1,700,000		1,368,500
XPO Logistics, Inc. 6.50%, due 6/15/22 (c)		3,950,000		3,525,375
				5,442,725
Total Corporate Bonds (Cost $580,697,021)				563,486,675
Foreign Bonds 0.3%
Banks 0.2%
Barclays Bank PLC Series Reg S 10.00%, due 5/21/21		GBP 1,186,000		2,345,295
Packaging & Containers 0.1%
Rexam PLC 6.75%, due 6/29/67 (b)		EUR 1,250,000		1,374,563
Total Foreign Bonds (Cost $3,676,024)				3,719,858
Loan Assignments 4.0% (e)
Airlines 0.1%
U.S. Airways Group, Inc. New Term Loan B1 3.50%, due 5/23/19	$	1,545,000		1,536,954

	Principal Amount		Value
Auto Parts & Equipment 0.1%
Allison Transmission, Inc. New Term Loan B3 3.50%, due 8/23/19	$	1,753,337	$	1,753,775
Commercial Services 0.1%
Allied Security Holdings LLC New 2nd Lien Term Loan 8.00%, due 8/13/21		1,815,068		1,728,853
Entertainment 0.2%
Scientific Games International, Inc. 2014 Term Loan B1 6.00%, due 10/18/20		2,456,250		2,398,683
SeaWorld Parks & Entertainment, Inc. Term Loan B2 3.00%, due 5/14/20		723,552		677,124
				3,075,807
Health Care—Products 0.1%
Ortho-Clinical Diagnostics, Inc. Term Loan B 4.75%, due 6/30/21		2,315,688		2,280,373
Health Care—Services 0.4%
MPH Acquisition Holdings LLC Term Loan 3.75%, due 3/31/21		5,798,883		5,715,524
Household Products & Wares 0.9%
KIK Custom Products, Inc. 2015 Term Loan B 6.00%, due 8/26/22		10,000,000		9,756,000
Prestige Brands, Inc. Term Loan B3 3.50%, due 9/3/21		3,373,768		3,371,659
				13,127,659
Iron & Steel 0.6%
Signode Industrial Group U.S., Inc. USD Term Loan B 3.75%, due 5/1/21		9,607,843		9,447,709
Media 0.2%
iHeartCommunications, Inc. Term Loan D 6.938%, due 1/30/19		1,966,831		1,645,115
Virgin Media Investment Holdings, Ltd. USD Term Loan F 3.50%, due 6/30/23		1,009,982		1,001,933
				2,647,048

20 MainStay Income Builder Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Principal Amount		Value
Loan Assignments (continued)
Packaging & Containers 0.6%
Berry Plastics Holding Corp. Term Loan F 4.00%, due 10/1/22	$	9,000,000	$	9,009,999
Pharmaceuticals 0.1%
Valeant Pharmaceuticals International, Inc. Series E Term Loan B 3.75%, due 8/5/20		1,393,344		1,291,630
Telecommunications 0.6%
Level 3 Financing, Inc. 2015 Term Loan B2 3.50%, due 5/31/22		10,000,000		9,982,810
Total Loan Assignments (Cost $62,454,425)				61,598,141
Mortgage-Backed Securities 0.3%
Commercial Mortgage Loans (Collateralized Mortgage Obligations) 0.2%
Banc of America Commercial Mortgage Trust Series 2007-2, Class A4 5.787%, due 4/10/49 (f)		400,000		414,047
Bayview Commercial Asset Trust Series 2006-4A, Class A1 0.427%, due 12/25/36 (b)(c)		186,334		168,493
Bear Stearns Commercial Mortgage Securities Trust Series 2007-PW16, Class A4 5.912%, due 6/11/40 (f)		324,908		337,724
Citigroup Commercial Mortgage Trust Series 2008-C7, Class A4 6.35%, due 12/10/49 (f)		182,280		193,290
Four Times Square Trust Series 2006-4TS, Class A 5.401%, due 12/13/28 (c)		860,000		962,118
JP Morgan Chase Commercial Mortgage Securities Trust Series 2007-LD12, Class A3 6.137%, due 2/15/51 (f)		20,785		20,793
LB-UBS Commercial Mortgage Trust Series 2006-C7, Class A3 5.347%, due 11/15/38		500,000		512,810
Morgan Stanley Capital I Trust
Series 2007-IQ14, Class AAB 5.654%, due 4/15/49 (b)		148,142		150,015
Series 2006-HQ9, Class AM 5.773%, due 7/12/44 (b)		500,000		511,148

	Principal Amount		Value
Commercial Mortgage Loans (Collateralized Mortgage Obligations) (continued)
TimberStar Trust 1 Series 2006-1A, Class A 5.668%, due 10/15/36 (c)	$	280,000	$	289,422
Wachovia Bank Commercial Mortgage Trust Series 2006-C29, Class AM 5.339%, due 11/15/48		500,000		515,882
				4,075,742
Residential Mortgages (Collateralized Mortgage Obligations) 0.1%
Mortgage Equity Conversion Asset Trust Series 2007-FF2, Class A 0.80%, due 2/25/42 (b)(c)(d)(g)		525,651		431,121
WaMu Mortgage Pass-Through Certificates Series 2006-AR14, Class 1A1 2.025%, due 11/25/36 (f)		549,057		485,929
				917,050
Total Mortgage-Backed Securities (Cost $4,681,268)				4,992,792
U.S. Government & Federal Agencies 0.0%‡
Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) 0.0%‡
6.50%, due 11/1/16		2,347		2,381
6.50%, due 2/1/27		98		112
6.50%, due 5/1/29		28,362		32,413
6.50%, due 6/1/29		8,935		10,211
6.50%, due 7/1/29		44,740		51,130
6.50%, due 8/1/29		9,905		11,319
6.50%, due 9/1/29		944		1,090
6.50%, due 6/1/32		3,650		4,171
6.50%, due 1/1/37		3,254		3,723
7.00%, due 3/1/26		165		169
7.00%, due 9/1/26		6,258		6,999
7.00%, due 7/1/32		15,769		18,555
7.50%, due 1/1/16		30		30
7.50%, due 5/1/32		8,282		9,525
				151,828
Federal National Mortgage Association (Mortgage Pass-Through Securities) 0.0%‡
4.50%, due 7/1/20		2,201		2,309
4.50%, due 3/1/21		4,521		4,685
6.00%, due 4/1/19		799		905
7.00%, due 10/1/37		905		1,022
7.00%, due 11/1/37		21,131		26,046
				34,967

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 October 31, 2015 (continued)

	Principal Amount		Value
U.S. Government & Federal Agencies (continued)
Government National Mortgage Association (Mortgage Pass-Through Securities) 0.0%‡
5.00%, due 12/15/37	$	3,429	$	3,765
5.50%, due 9/15/35		10,930		12,327
6.50%, due 4/15/29		23		26
6.50%, due 8/15/29		19		22
6.50%, due 10/15/31		3,356		3,932
7.00%, due 12/15/25		3,758		3,817
7.00%, due 11/15/27		10,161		11,349
7.00%, due 12/15/27		52,224		58,919
7.00%, due 6/15/28		4,147		4,276
7.50%, due 6/15/26		409		458
7.50%, due 10/15/30		17,994		18,849
8.00%, due 9/15/26		129		131
8.00%, due 10/15/26		7,071		7,909
8.50%, due 11/15/26		20,300		20,724
				146,504
Total U.S. Government & Federal Agencies (Cost $295,228)				333,299
Total Long-Term Bonds (Cost $663,966,305)				645,183,485
	Shares
Common Stocks 44.2%
Aerospace & Defense 0.9%
BAE Systems PLC		1,168,980		7,934,641
Lockheed Martin Corp.		24,200		5,319,886
				13,254,527
Agriculture 3.8%
Altria Group, Inc.		189,613		11,465,898
British American Tobacco PLC		156,297		9,299,363
Imperial Tobacco Group PLC		202,715		10,934,561
¨Philip Morris International, Inc.		166,008		14,675,107
¨Reynolds American, Inc.		245,054		11,841,009
				58,215,938
Auto Manufacturers 0.4%
Daimler A.G. Registered		75,200		6,530,322
Banks 1.5%
Commonwealth Bank of Australia		78,460		4,293,030
Svenska Handelsbanken AB Class A		456,240		6,205,276
Wells Fargo & Co.		107,900		5,841,706
Westpac Banking Corp. Interim Shares (h)		11,598		251,838
Westpac Banking Corp.		266,746		5,968,995
				22,560,845

	Shares		Value
Beverages 0.5%
Coca-Cola Co. (The)		92,300	$	3,908,905
PepsiCo., Inc.		43,360		4,430,958
				8,339,863
Chemicals 1.8%
BASF S.E.		84,314		6,910,117
Dow Chemical Co. (The)		162,955		8,419,885
Potash Corporation of Saskatchewan, Inc.		400,135		8,094,731
Yara International ASA		99,910		4,535,297
				27,960,030
Commercial Services 0.7%
Automatic Data Processing, Inc.		50,420		4,386,036
R.R. Donnelley & Sons Co.		368,580		6,217,944
				10,603,980
Computers 0.4%
Seagate Technology PLC		174,270		6,632,716
Cosmetics & Personal Care 0.8%
Procter & Gamble Co. (The)		67,045		5,120,897
Unilever PLC		152,110		6,783,873
				11,904,770
Electric 5.9%
Ameren Corp.		167,505		7,316,618
Duke Energy Corp.		145,353		10,388,379
Electricite de France S.A.		322,860		6,012,486
Entergy Corp.		126,495		8,621,899
PPL Corp.		306,360		10,538,784
Southern Co. (The)		111,745		5,039,700
SSE PLC		412,765		9,640,221
TECO Energy, Inc.		437,255		11,805,885
Terna Rete Elettrica Nazionale S.p.A.		2,100,570		10,690,182
WEC Energy Group, Inc.		192,241		9,911,946
				89,966,100
Electrical Components & Equipment 0.3%
Emerson Electric Co.		91,720		4,331,936
Engineering & Construction 0.5%
Vinci S.A.		114,295		7,714,517
Entertainment 0.3%
Regal Entertainment Group Class A		246,200		4,771,356
Environmental Controls 0.3%
Waste Management, Inc.		83,720		4,500,787
Finance—Other Services 0.6%
CME Group, Inc.		55,740		5,265,758
Singapore Exchange, Ltd.		706,886		3,723,905
				8,989,663

22 MainStay Income Builder Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

	Shares		Value
Common Stocks (continued)
Food 0.6%
Nestle S.A. Registered		52,015	$	3,978,283
Orkla ASA		678,970		5,773,453
				9,751,736
Gas 1.2%
Gas Natural SDG S.A.		228,230		4,946,682
¨National Grid PLC		954,510		13,608,172
				18,554,854
Health Care—Services 0.2%
Sonic Healthcare, Ltd.		249,720		3,433,292
Household Products & Wares 0.4%
Kimberly-Clark Corp.		57,215		6,849,208
Insurance 2.2%
Allianz S.E. Registered		31,990		5,605,584
Arthur J. Gallagher & Co.		80,190		3,506,709
AXA S.A.		200,350		5,359,161
Muenchener Rueckversicherungs-Gesellschaft A.G. Registered		57,020		11,380,424
SCOR S.E.		227,640		8,478,487
				34,330,365
Investment Management/Advisory Services 0.3%
Aberdeen Asset Management PLC		949,110		5,072,732
Media 0.9%
ION Media Networks, Inc. (d)(g)(h)(i)		12		5,215
Pearson PLC		300,520		3,991,170
Shaw Communications, Inc. Class B		235,920		4,898,461
Vivendi S.A.		200,658		4,835,624
				13,730,470
Mining 0.5%
BHP Billiton, Ltd.		207,140		3,400,319
Rio Tinto PLC		120,720		4,389,213
				7,789,532
Miscellaneous—Manufacturing 0.3%
Siemens A.G. Registered		46,420		4,670,688
Oil & Gas 3.4%
ConocoPhillips		142,420		7,598,107
Exxon Mobil Corp.		69,005		5,709,474
Occidental Petroleum Corp.		125,330		9,342,098
Royal Dutch Shell PLC Class A, Sponsored ADR		177,495		9,311,388
Statoil ASA		601,085		9,635,187
Total S.A.		202,138		9,812,600
				51,408,854

	Shares		Value
Oil & Gas Services 0.3%
Amec Foster Wheeler PLC		415,700	$	4,556,392
Pharmaceuticals 2.4%
AstraZeneca PLC, Sponsored ADR		285,440		9,102,682
GlaxoSmithKline PLC		466,820		10,111,074
Merck & Co., Inc.		89,359		4,884,363
Pfizer, Inc.		124,120		4,197,738
Roche Holding A.G.		17,335		4,705,327
Sanofi		40,575		4,098,192
				37,099,376
Pipelines 1.2%
Enterprise Products Partners, L.P.		271,850		7,511,215
¨Kinder Morgan, Inc.		379,485		10,378,915
				17,890,130
Real Estate Investment Trusts 2.4%
Corrections Corporation of America		242,665		6,915,953
¨Iron Mountain, Inc.		305,455		9,359,141
Unibail-Rodamco S.E.		33,190		9,273,988
Welltower, Inc.		168,650		10,940,325
				36,489,407
Retail 0.5%
McDonald’s Corp.		73,442		8,243,864
Savings & Loans 0.3%
People’s United Financial, Inc.		303,990		4,848,640
Semiconductors 1.1%
Microchip Technology, Inc.		105,580		5,098,458
Taiwan Semiconductor Manufacturing Co., Ltd., Sponsored ADR		237,340		5,211,987
Texas Instruments, Inc.		111,660		6,333,355
				16,643,800
Software 0.3%
Microsoft Corp.		81,668		4,299,003
Telecommunications 6.7%
¨AT&T, Inc.		374,487		12,549,059
¨BCE, Inc.		287,770		12,438,636
¨CenturyLink, Inc.		318,741		8,991,684
Deutsche Telekom A.G. Registered		281,130		5,257,005
¨Rogers Communications, Inc. Class B		297,250		11,827,713
Singapore Telecommunications, Ltd.		1,658,415		4,711,608
Swisscom A.G. Registered		18,513		9,551,955
Telstra Corp., Ltd.		2,061,530		7,938,415
TELUS Corp.		156,246		5,214,573
¨Verizon Communications, Inc.		259,204		12,151,484
Vodafone Group PLC		3,560,098		11,758,564
				102,390,696

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 October 31, 2015 (continued)

	Shares			Value
Common Stocks (continued)
Transportation 0.3%
Deutsche Post A.G. Registered		169,010		$	5,031,011
Total Common Stocks (Cost $667,558,072)					679,361,400
	Principal Amount
Short-Term Investment 11.4%
Repurchase Agreement 11.4%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $174,214,112 (Collateralized by United States Treasury and Government Agency securities with rates between 1.50% and 1.70% and maturity dates between 11/30/19 and 2/26/20, with a Principal Amount of $176,030,000 and a Market Value of $177,707,545)	$	174,214,112			174,214,112
Total Short-Term Investment (Cost $174,214,112)					174,214,112
Total Investments (Cost $1,505,738,489) (j)		97.6	%		1,498,758,997
Other Assets, Less Liabilities		2.4			37,030,132
Net Assets		100.0	%	$	1,535,789,129

‡ Less than one-tenth of a percent.

(a) Step coupon—Rate shown was the rate in effect as of October 31, 2015.

(b) Floating rate—Rate shown was the rate in effect as of October 31, 2015.

(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) Fair valued security—Represents fair value as measured in good faith under procedures approved by the Board of Trustees. As of October 31, 2015, the total market value of these securities was $668,546, which represented less than one-tenth of a percent of the Fund’s net assets.

(e) Floating Rate Loan—generally pays interest at rates which are periodically re-determined at a margin above the London InterBank Offered Rate or other short-term rates. The rate shown is the weighted average interest rate of all contracts within the floating rate loan facility as of October 31, 2015.

(f) 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 October 31, 2015.

(g) Illiquid security—As of October 31, 2015, the total market value of these securities deemed illiquid under procedures approved by the Board of Trustees was $436,336, which represented less than one-tenth of a percent of the Fund’s net assets.

(h) Non-income producing security.

(i) Restricted security.

(j) As of October 31, 2015, cost was $1,504,762,463 for federal income tax purposes and net unrealized depreciation was as follows:

Gross unrealized appreciation	$	77,095,027
Gross unrealized depreciation		(83,098,493	)
Net unrealized depreciation	$	(6,003,466	)

As of October 31, 2015, the Fund held the following foreign currency forward contracts:

Foreign Currency Sales Contracts	Expiration Date		Counterparty	Contract Amount Sold			Contract Amount Purchased		Unrealized Appreciation (Depreciation)
Canadian Dollar vs. U.S. Dollar		11/24/15	JPMorgan Chase Bank		CAD	22,331,000	$	16,841,954	$	(233,451	)
Euro vs. U.S. Dollar		11/24/15	JPMorgan Chase Bank		EUR	76,050,000		85,393,503		1,743,441
Pound Sterling vs. U.S. Dollar		11/24/15	JPMorgan Chase Bank		GBP	34,524,000		53,261,901		46,557
Net unrealized appreciation (depreciation) on foreign currency forward contracts									$	1,556,547

24 MainStay Income Builder Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

As of October 31, 2015, the Fund held the following futures contracts¹:

Type	Number of Contracts Long (Short)			Expiration Date		Notional Amount			Unrealized Appreciation (Depreciation)2
2-Year United States Treasury Note		(1,526	)		December 2015	$	(333,669,437	)	$	192,452
Euro Stoxx 50		2,100			December 2015		78,584,310			5,492,227
Nikkei 225		605			December 2015		47,329,079			2,416,106
Standard & Poor’s 500 Index Mini		1,775			December 2015		184,040,875			10,982,746
United States Treasury Bond		52			December 2015		8,134,750			(61,864	)
						$	(15,580,423	)	$	19,021,667

1. As of October 31, 2015, cash in the amount of $21,613,904 was on deposit with brokers for futures transactions.

2. Represents the difference between the value of the contracts at the time they were opened and the value as of October 31, 2015.

The following abbreviations are used in the preceding pages:

ADR—American Depositary Receipt

CAD—Canadian Dollar

EUR—Euro

GBP—British Pound Sterling

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets and liabilities.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Long-Term Bonds
Asset-Backed Securities	$	—	$	7,554,020	$	—	$	7,554,020
Convertible Bonds		—		3,498,700		—		3,498,700
Corporate Bonds		—		563,486,675		—		563,486,675
Foreign Bonds		—		3,719,858		—		3,719,858
Loan Assignments		—		61,598,141		—		61,598,141
Mortgage-Backed Securities (b)		—		4,561,671		431,121		4,992,792
U.S. Government & Federal Agencies		—		333,299		—		333,299
Total Long-Term Bonds		—		644,752,364		431,121		645,183,485
Common Stocks (c)		679,356,185		—		5,215		679,361,400
Short-Term Investment
Repurchase Agreement		—		174,214,112		—		174,214,112
Total Investments in Securities		679,356,185		818,966,476		436,336		1,498,758,997
Other Financial Instruments
Foreign Currency Forward Contracts (d)		—		1,789,998		—		1,789,998
Futures Contracts Long (d)		18,891,079		—		—		18,891,079
Futures Contracts Short (d)		192,452		—		—		192,452
Total Other Financial Instruments		19,083,531		1,789,998		—		20,873,529
Total Investments in Securities and Other Financial Instruments	$	698,439,716	$	820,756,474	$	436,336	$	1,519,632,526

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 October 31, 2015 (continued)

Liability Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Other Financial Instruments
Foreign Currency Forward Contracts (d)	$	—		$	(233,451	)	$	—	$	(233,451	)
Futures Contracts Long (d)		(61,864	)		—			—		(61,864	)
Total Other Financial Instruments	$	(61,864	)	$	(233,451	)	$	—	$	(295,315	)

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

(b) The Level 3 security valued at $431,121 is held in Residential Mortgages (Collateralized Mortgage Obligations) within the Mortgage-Backed Securities section of the Portfolio of Investments.

(c) The Level 3 security valued at $5,215 is held in Media within the Common Stocks section of the Portfolio of Investments.

(d) The value listed for these securities reflects unrealized appreciation (depreciation) as shown on the Portfolio of Investments.

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

During the year ended October 31, 2015, a corporate bond with a total value of $253,923 was transferred from Level 3 to Level 2. The transfer occurred as a result of the corporate bond using observable inputs for valuation measurement at October 31, 2015.

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

Investments in Securities	Balance as of October 31, 2014		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases		Sales (a)			Transfers in to Level 3		Transfers out of Level 3			Balance as of October 31, 2015		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at October 31, 2015 (b)
Long-Term Bonds
Corporate Bonds
Retail	$	253,923	$	—	$	—		$	—		$	—	$	—		$	—	$	(253,923	)	$	—	$	—
Mortgage-Backed Securities
Residential Mortgages (Collateralized Mortgage Obligations)		447,084		—		—			17,241			—		(33,204	)		—		—			431,121		10,600
Common Stocks
Investment Company		3		—		(2	)(c)		(1	)		—		—			—		—			—		—
Media		4,539		—		—			676			—		—			—		—			5,215		676
Total	$	705,549	$	—	$	(2	)	$	17,916		$	—	$	(33,204	)	$	—	$	(253,923	)	$	436,336	$	11,276

(a) Sales include principal reductions.

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

(c) BGP Holdings PLC was removed from the books and records on July 23, 2015.

26 MainStay Income Builder Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $1,331,524,377)	$	1,324,544,885
Repurchase agreement, at value (identified cost $174,214,112)		174,214,112
Cash collateral on deposit at broker		21,613,904
Cash denominated in foreign currencies (identified cost $2,618,045)		2,374,330
Cash		71,750
Receivables:
Dividends and interest		10,593,617
Fund shares sold		5,734,072
Investment securities sold		462,463
Other assets		58,220
Unrealized appreciation on foreign currency forward contracts		1,789,998
Total assets		1,541,457,351
Liabilities
Payables:
Fund shares redeemed		3,099,781
Manager (See Note 3)		792,535
Variation margin on futures contracts		631,083
NYLIFE Distributors (See Note 3)		389,754
Transfer agent (See Note 3)		368,446
Shareholder communication		68,955
Professional fees		40,152
Custodian		13,647
Trustees		3,702
Accrued expenses		16,111
Interest expense and fees payable		10,605
Unrealized depreciation on foreign currency forward contracts		233,451
Total liabilities		5,668,222
Net assets	$	1,535,789,129
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	814,335
Additional paid-in capital		1,487,284,016
		1,488,098,351
Undistributed net investment income		4,797,693
Accumulated net realized gain (loss) on investments, futures transactions and foreign currency transactions		29,326,724
Net unrealized appreciation (depreciation) on investments and futures contracts		12,042,175
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies and foreign currency forward contracts		1,524,186
Net assets	$	1,535,789,129

Class A
Net assets applicable to outstanding shares	$	581,919,728
Shares of beneficial interest outstanding		30,961,904
Net asset value per share outstanding	$	18.79
Maximum sales charge (5.50% of offering price)		1.09
Maximum offering price per share outstanding	$	19.88
Investor Class
Net assets applicable to outstanding shares	$	159,798,325
Shares of beneficial interest outstanding		8,498,814
Net asset value per share outstanding	$	18.80
Maximum sales charge (5.50% of offering price)		1.09
Maximum offering price per share outstanding	$	19.89
Class B
Net assets applicable to outstanding shares	$	44,441,321
Shares of beneficial interest outstanding		2,352,228
Net asset value and offering price per share outstanding	$	18.89
Class C
Net assets applicable to outstanding shares	$	235,810,666
Shares of beneficial interest outstanding		12,501,404
Net asset value and offering price per share outstanding	$	18.86
Class I
Net assets applicable to outstanding shares	$	513,629,290
Shares of beneficial interest outstanding		27,109,064
Net asset value and offering price per share outstanding	$	18.95
Class R2
Net assets applicable to outstanding shares	$	189,799
Shares of beneficial interest outstanding		10,104
Net asset value and offering price per share outstanding	$	18.78

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Interest	$	35,183,198
Dividends (a)		31,704,878
Total income		66,888,076
Expenses
Manager (See Note 3)		9,151,839
Distribution/Service—Class A (See Note 3)		1,421,764
Distribution/Service—Investor Class (See Note 3)		406,153
Distribution/Service—Class B (See Note 3)		479,531
Distribution/Service—Class C (See Note 3)		2,039,192
Distribution/Service—Class R2 (See Note 3)		127
Transfer agent (See Note 3)		2,080,188
Shareholder communication		204,824
Registration		164,953
Custodian		153,061
Professional fees		140,977
Trustees		29,601
Shareholder service—Class R2 (See Note 3)		51
Miscellaneous		82,256
Total expenses		16,354,517
Net investment income (loss)		50,533,559
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions		38,648,504
Futures transactions		(16,442,696	)
Foreign currency transactions		14,341,274
Net realized gain (loss) on investments, futures transactions and foreign currency transactions		36,547,082
Net change in unrealized appreciation (depreciation) on:
Investments		(121,746,697	)
Futures contracts		17,127,426
Translation of other assets and liabilities in foreign currencies and foreign currency forward contracts		(1,876,870	)
Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency transactions		(106,496,141	)
Net realized and unrealized gain (loss) on investments, futures transactions and foreign currency transactions		(69,949,059	)
Net increase (decrease) in net assets resulting from operations	$	(19,415,500	)

(a) Dividends recorded net of foreign withholding taxes in the amount of $1,545,564.

28 MainStay Income Builder Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	50,533,559		$	43,413,822
Net realized gain (loss) on investments, futures transactions and foreign currency transactions		36,547,082			61,011,634
Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency transactions		(106,496,141	)		(2,898,191	)
Net increase (decrease) in net assets resulting from operations		(19,415,500	)		101,527,265
Dividends and distributions to shareholders:
From net investment income:
Class A		(20,260,907	)		(15,815,869	)
Investor Class		(5,497,054	)		(5,487,828	)
Class B		(1,264,373	)		(1,291,195	)
Class C		(5,462,078	)		(2,185,507	)
Class I		(18,919,025	)		(13,170,530	)
Class R2		(1,946	)		—
		(51,405,383	)		(37,950,929	)
From net realized gain on investments:
Class A		(21,407,906	)		(10,462,255	)
Investor Class		(6,933,839	)		(4,383,814	)
Class B		(2,085,743	)		(1,343,673	)
Class C		(6,203,537	)		(1,586,185	)
Class I		(18,852,587	)		(7,620,793	)
		(55,483,612	)		(25,396,720	)
Total dividends and distributions to shareholders		(106,888,995	)		(63,347,649	)
Capital share transactions:
Net proceeds from sale of shares		665,174,116			389,526,760
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		97,104,538			58,593,814
Cost of shares redeemed		(373,579,040	)		(171,556,347	)
Increase (decrease) in net assets derived from capital share transactions		388,699,614			276,564,227
Net increase (decrease) in net assets		262,395,119			314,743,843
Net Assets
Beginning of year		1,273,394,010			958,650,167
End of year	$	1,535,789,129		$	1,273,394,010
Undistributed net investment income at end of year	$	4,797,693		$	5,131,389

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	20.51		$	19.83		$	17.46		$	15.92		$	15.58
Net investment income (loss) (a)		0.68			0.82			0.69			0.67			0.66
Net realized and unrealized gain (loss) on investments		(0.98	)		0.96			2.43			1.40			0.35
Net realized and unrealized gain (loss) on foreign currency transactions		0.15			0.14			(0.06	)		0.14			(0.05	)
Total from investment operations		(0.15	)		1.92			3.06			2.21			0.96
Less dividends and distributions:
From net investment income		(0.70	)		(0.72	)		(0.69	)		(0.67	)		(0.62	)
From net realized gain on investments		(0.87	)		(0.52	)		—			—			—
Total dividends and distributions		(1.57	)		(1.24	)		(0.69	)		(0.67	)		(0.62	)
Net asset value at end of year	$	18.79		$	20.51		$	19.83		$	17.46		$	15.92
Total investment return (b)		(0.81	%)		10.08	%		17.90	%		14.16	%		6.21	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.49	%		4.06	%		3.71	%		4.03	%		4.05	%
Net expenses		1.02	%		1.01	%		1.04	%		1.06	%		1.08	%
Portfolio turnover rate		30	%		15	%		31	%		25	%		33	%
Net assets at end of year (in 000’s)	$	581,920		$	497,591		$	397,101		$	292,603		$	242,939

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	20.52		$	19.84		$	17.46		$	15.93		$	15.58
Net investment income (loss) (a)		0.65			0.78			0.64			0.62			0.60
Net realized and unrealized gain (loss) on investments		(0.99	)		0.95			2.44			1.39			0.37
Net realized and unrealized gain (loss) on foreign currency transactions		0.15			0.14			(0.06	)		0.14			(0.05	)
Total from investment operations		(0.19	)		1.87			3.02			2.15			0.92
Less dividends and distributions:
From net investment income		(0.66	)		(0.67	)		(0.64	)		(0.62	)		(0.57	)
From net realized gain on investments		(0.87	)		(0.52	)		—			—			—
Total dividends and distributions		(1.53	)		(1.19	)		(0.64	)		(0.62	)		(0.57	)
Net asset value at end of year	$	18.80		$	20.52		$	19.84		$	17.46		$	15.93
Total investment return (b)		(0.97	%)		9.83	%		17.62	%		13.72	%		5.92	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.34	%		3.89	%		3.46	%		3.73	%		3.73	%
Net expenses		1.18	%		1.23	%		1.32	%		1.37	%		1.40	%
Portfolio turnover rate		30	%		15	%		31	%		25	%		33	%
Net assets at end of year (in 000’s)	$	159,798		$	165,088		$	168,097		$	160,758		$	163,168

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

30 MainStay Income Builder Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	20.61		$	19.93		$	17.54		$	15.99		$	15.64
Net investment income (loss) (a)		0.51			0.63			0.51			0.50			0.49
Net realized and unrealized gain (loss) on investments		(0.99	)		0.96			2.44			1.40			0.35
Net realized and unrealized gain (loss) on foreign currency transactions		0.15			0.14			(0.06	)		0.14			(0.05	)
Total from investment operations		(0.33	)		1.73			2.89			2.04			0.79
Less dividends and distributions:
From net investment income		(0.52	)		(0.53	)		(0.50	)		(0.49	)		(0.44	)
From net realized gain on investments		(0.87	)		(0.52	)		—			—			—
Total dividends and distributions		(1.39	)		(1.05	)		(0.50	)		(0.49	)		(0.44	)
Net asset value at end of year	$	18.89		$	20.61		$	19.93		$	17.54		$	15.99
Total investment return (b)		(1.70	%)		8.99	%		16.74	%		12.87	%		5.14	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.60	%		3.14	%		2.73	%		2.99	%		2.98	%
Net expenses		1.93	%		1.98	%		2.07	%		2.12	%		2.15	%
Portfolio turnover rate		30	%		15	%		31	%		25	%		33	%
Net assets at end of year (in 000’s)	$	44,441		$	49,283		$	51,138		$	51,233		$	59,225

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	20.58		$	19.90		$	17.52		$	15.97		$	15.62
Net investment income (loss) (a)		0.50			0.60			0.49			0.49			0.48
Net realized and unrealized gain (loss) on investments		(0.98	)		0.98			2.45			1.41			0.36
Net realized and unrealized gain (loss) on foreign currency transactions		0.15			0.15			(0.06	)		0.14			(0.05	)
Total from investment operations		(0.33	)		1.73			2.88			2.04			0.79
Less dividends and distributions:
From net investment income		(0.52	)		(0.53	)		(0.50	)		(0.49	)		(0.44	)
From net realized gain on investments		(0.87	)		(0.52	)		—			—			—
Total dividends and distributions		(1.39	)		(1.05	)		(0.50	)		(0.49	)		(0.44	)
Net asset value at end of year	$	18.86		$	20.58		$	19.90		$	17.52		$	15.97
Total investment return (b)		(1.70	%)		9.01	%		16.70	%		12.96	%		5.08	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.58	%		3.00	%		2.61	%		2.88	%		2.98	%
Net expenses		1.93	%		1.98	%		2.07	%		2.12	%		2.15	%
Portfolio turnover rate		30	%		15	%		31	%		25	%		33	%
Net assets at end of year (in 000’s)	$	235,811		$	131,023		$	55,889		$	22,444		$	10,899

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	20.66		$	19.97		$	17.57		$	16.02		$	15.67
Net investment income (loss) (a)		0.73			0.87			0.74			0.72			0.70
Net realized and unrealized gain (loss) on investments		(0.98	)		0.96			2.46			1.40			0.36
Net realized and unrealized gain (loss) on foreign currency transactions		0.15			0.15			(0.06	)		0.14			(0.05	)
Total from investment operations		(0.10	)		1.98			3.14			2.26			1.01
Less dividends and distributions:
From net investment income		(0.74	)		(0.77	)		(0.74	)		(0.71	)		(0.66	)
From net realized gain on investments		(0.87	)		(0.52	)		—			—			—
Total dividends and distributions		(1.61	)		(1.29	)		(0.74	)		(0.71	)		(0.66	)
Net asset value at end of year	$	18.95		$	20.66		$	19.97		$	17.57		$	16.02
Total investment return (b)		(0.51	%)		10.33	%		18.25	%		14.41	%		6.50	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		3.75	%		4.29	%		3.97	%		4.28	%		4.30	%
Net expenses		0.77	%		0.76	%		0.79	%		0.81	%		0.83	%
Portfolio turnover rate		30	%		15	%		31	%		25	%		33	%
Net assets at end of year (in 000’s)	$	513,629		$	430,408		$	286,425		$	204,611		$	164,317

(a) Per share data based on average shares outstanding during the year.

(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.

Class R2	February 27, 2015** Through October 31, 2015
Net asset value at beginning of period	$	20.08
Net investment income (loss) (a)		0.36
Net realized and unrealized gain (loss) on investments		(1.35	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.20
Total from investment operations		(0.79	)
Less dividends:
From net investment income		(0.51	)
Net asset value at end of period	$	18.78
Total investment return (b)(c)		(3.92	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		2.90	% ††
Net expenses		1.12	% ††
Portfolio turnover rate		30	%
Net assets at end of period (in 000’s)	$	190

** 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 R2 shares are not subject to sales charges.

(c) Total investment return is not annualized.

32 MainStay Income Builder Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Income Builder 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 currently offers six classes of shares. Class A shares commenced operations on January 3, 1995. Class B shares commenced operations on December 29, 1987. Class C shares commenced operations on September 1, 1998. Class I shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Class R2 shares commenced operations on February 27, 2015. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 and Class R2 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The six classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A, Investor Class and Class R2 shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee. Class R2 shares are subject to a shareholder service fee. This is in addition to any fees paid under a distribution plan, where applicable.

The Fund’s investment objective is to seek current income consistent with reasonable opportunity for future growth of capital and 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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisors (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisors or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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

33

Notes to Financial Statements (continued)

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 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisors reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time

when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, the Fund held securities with a value of $436,336 that were fair valued in such a manner.

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 NAV is calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisors conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Sub-Committee may, pursuant to procedures adopted by the Board, 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 valuation procedures adopted by the Board and are generally categorized as Level 2 in the hierarchy. As of October 31, 2015, no foreign equity securities held by the Fund were fair valued in such a manner.

Equity securities and Exchange-Traded Funds 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. 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 Manager in consultation with the Subadvisors. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean prices are deemed by the Manager, 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 & 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. Other temporary cash investments which 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

34 MainStay Income Builder Fund

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. These securities are generally categorized as Level 2 in the hierarchy.

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

Loan assignments, participations and commitments are valued at the average of bid quotations obtained from 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. As of October 31, 2015, the Fund did not hold any securities that were valued by utilizing significant unobservable inputs.

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued within seven days. Illiquidity of a security might prevent the sale of such security at a time when the Manager or Subadvisors might wish to sell, and these securities 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 securities, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisors measure the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisors may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued by methods deemed reasonable in good faith in such a manner as the Board deems appropriate to reflect their fair value. The liquidity of the Fund’s investments, as shown in the accompanying Portfolio of Investments, was measured as of October 31, 2015 and can change at any time in response to, among other relevant factors, market conditions or events or developments with respect to an individual issuer or instrument. As of October 31, 2015, securities deemed to be illiquid under procedures approved by the Board of Trustees are shown in the Portfolio of Investments.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C)  Foreign Taxes.  The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which they invest. A portion of the taxes on gains on investments or currency purchases/repatriation may be recoverable. The Fund will accrue such taxes and recoveries 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 on 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 during the year ended October 31, 2015, 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 the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(E)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. 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 and includes realized gains and losses from repayments of principal on mortgage-backed securities. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term

35

Notes to Financial Statements (continued)

Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

The Fund may place a debt obligation on non-accrual status and reduce related interest income by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation 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 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.

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

(H)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisors to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisors will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(I)  Loan Assignments, Participations and Commitments.  The Fund may invest in loan assignments and loan 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. Loans are typically senior, secured and collateralized in nature. The Fund records an investment when the borrower withdraws money and records interest as earned. These loans pay interest at rates that are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the London InterBank Offered Rate.

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 enters into bankruptcy, the Fund may incur certain costs and delays in realizing payment, or may suffer a loss of principal and/or interest.

Unfunded commitments represent the remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities. As of October 31, 2015, the Fund did not hold any unfunded commitments.

(J)  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 market price risk and/or interest rate risk in the normal course of investing in these transactions. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized 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

36 MainStay Income Builder Fund

obligated to meet margin requirements until the position is closed. Futures may involve a small initial investment relative to the risk assumed, which could result in losses greater than if they had not been used. Futures 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 in order to hedge against anticipated changes in interest rates that might otherwise have an adverse effect upon the value of the Fund’s securities. The Fund may also use equity index futures contracts to increase the equity sensitivity to the Fund. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAV and may result in a loss to the Fund.

(K)  Foreign Currency Forward Contracts.  The Fund may enter into foreign currency forward contracts, which are agreements to buy or sell foreign currencies on a specified future date at a specified rate. The Fund is subject to foreign currency exchange rate risk in the normal course of investing in these transactions. During the period the forward contract is open, changes in the value of the contract are recognized as unrealized 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. Cash movement occurs on settlement date. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract. The Fund may purchase and sell foreign currency forward contracts for purposes of seeking to enhance portfolio returns and manage portfolio risk more efficiently. Foreign currency forward contracts may also be used to gain exposure to a particular currency or to hedge against the risk of loss due to changing currency exchange rates. Foreign currency forward contracts to purchase or sell a foreign currency may also be used in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected.

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

contracts reflects the Fund’s exposure at the valuation date to credit loss in the event of a counterparty’s failure to perform its obligations.

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

(M)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will

consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

(N)  Restricted Securities.  Restricted securities, as disclosed in Note 5, are securities which have been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933, as amended. Disposal of

37

Notes to Financial Statements (continued)

these securities may involve time-consuming negotiations and expenses, and it may be difficult to obtain a prompt sale at an acceptable price.

(O)  Concentration of Risk.  The Fund may invest in high-yield debt securities (sometimes called ‘‘junk bonds’’), which are generally considered speculative because they present a greater risk of loss, including default, than higher quality 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.

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

The Fund 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 quality debt securities. These securities 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 securities could decline significantly.

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

(Q)  Quantitative Disclosure of Derivative Holdings.  The following tables show additional disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash flows. The Fund invested in Treasury futures contracts in order to hedge against anticipated changes in interest rates that might otherwise have an adverse effect upon the value of the Fund’s securities. The Fund also invested in domestic and foreign equity index futures contracts to increase the equity sensitivity to the Fund. Foreign currency forward contracts were used to gain exposure to a particular currency or to hedge against the risk of loss due to changing currency exchange rates. These derivatives are not accounted for as hedging instruments.

Fair value of derivative instruments as of October 31, 2015:

Asset Derivatives

	Statement of Assets and Liabilities Location	Foreign Exchange Contracts Risk		Equity Contracts Risk		Interest Rate Contracts Risk		Total
Futures Contracts	Net Assets—Net unrealized appreciation (depreciation) on investments and futures contracts (a)	$	—	$	18,891,079	$	192,452	$	19,083,531
Forward Contracts	Unrealized appreciation on foreign currency forward contracts		1,789,998		—		—		1,789,998
Total Fair Value		$	1,789,998	$	18,891,079	$	192,452	$	20,873,529

Liability Derivatives

	Statement of Assets and Liabilities Location	Foreign Exchange Contracts Risk			Equity Contracts Risk		Interest Rate Contracts Risk			Total
Futures Contracts	Net Assets—Net unrealized appreciation (depreciation) on investments and futures contracts (a)	$	—		$	—	$	(61,864	)	$	(61,864	)
Forward Contracts	Unrealized depreciation on foreign currency forward contracts		(233,451	)		—		—			(233,451	)
Total Fair Value		$	(233,451	)	$	—	$	(61,864	)	$	(295,315	)

(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.

38 MainStay Income Builder Fund

The effect of derivative instruments on the Statement of Operations for the year ended October 31, 2015:

Realized Gain (Loss)

	Statement of Operations Location	Foreign Exchange Contracts Risk		Equity Contracts Risk			Interest Rate Contracts Risk			Total
Futures Contracts	Net realized gain (loss) on futures transactions	$	—	$	(11,029,163	)	$	(5,413,533	)	$	(16,442,696	)
Forward Contracts	Net realized gain (loss) on foreign currency transactions		14,660,659		—			—			14,660,659
Total Realized Gain (Loss)		$	14,660,659	$	(11,029,163	)	$	(5,413,533	)	$	(1,782,037	)

Change in Unrealized Appreciation (Depreciation)

	Statement of Operations Location	Foreign Exchange Contracts Risk			Equity Contracts Risk		Interest Rate Contracts Risk		Total
Futures Contracts	Net change in unrealized appreciation (depreciation) on futures contracts	$	—		$	15,529,756	$	1,597,670	$	17,127,426
Forward Contracts	Net change in unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies and foreign currency forward contracts		(1,928,765	)		—		—		(1,928,765	)
Total Change in Unrealized Appreciation (Depreciation)		$	(1,928,765	)	$	15,529,756	$	1,597,670	$	15,198,661

Average Notional Amount

	Foreign Exchange Contracts Risk			Equity Contracts Risk		Interest Rate Contracts Risk			Total
Futures Contracts Long	$	—		$	259,083,343	$	8,134,750		$	267,218,093
Futures Contracts Short	$	—		$	—	$	(402,539,505	)	$	(402,539,505	)
Forward Contracts Long	$	59,517,387		$	—	$	—		$	59,517,387
Forward Contracts Short	$	(191,183,426	)	$	—	$	—		$	(191,183,426	)

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 a portion of the compensation of the Chief Compliance Officer of the Fund. MacKay Shields LLC (“MacKay Shields” or “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as a Subadvisor, pursuant to the terms of an Amended and Restated Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and MacKay Shields, is responsible for the overall asset allocation decisions

of the Fund and is responsible for the day-to-day portfolio management of the fixed-income portion of the Fund. Epoch Investment Partners, Inc. (“Epoch” or “Subadvisor” and, together with MacKay Shields, the “Subadvisors”), a registered investment advisor, also serves as a Subadvisor pursuant to the terms of an Amended and Restated Subadvisory Agreement between New York Life Investments and Epoch and is responsible for the day-to-day portfolio management of the equity portion of the Fund. New York Life Investments pays for the services of the Subadvisors.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.64% up to $500 million; 0.60% from $500 million to $1 billion; and 0.575% in excess of $1 billion, plus a fee for fund accounting services previously provided by New York Life Investments under a separate fund accounting agreement furnished at an annual rate of the Fund’s average daily net assets as follows: 0.05% up to $20 million; 0.0333% from $20 million to $100 million; and 0.01% in excess of $100 million. During the year ended October 31, 2015, the effective management fee

39

Notes to Financial Statements (continued)

rate was 0.62% inclusive of a fee for fund accounting services of 0.01% of the Fund’s average daily net assets.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $9,151,839.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly distribution 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, 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 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 Plan 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 a distribution plan, where applicable.

(C)  Sales Charges.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $299,374 and $22,559, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares of $1,473, $12, $61,341 and $51,515, 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 Boston Financial Data Services, Inc.

(“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	544,529
Investor Class		414,635
Class B		122,349
Class C		520,139
Class I		478,487
Class R2		49

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

(F)  Capital.  As of October 31, 2015, New York Life and its affiliates beneficially held shares of the Fund with values and percentages of net assets as follows:

Class I	$	98,766,712	19.2	%
Class R2		24,021	12.7

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)		Other Temporary Differences		Unrealized Appreciation (Depreciation)			Total Accumulated Gain (Loss)
$5,557,279	$	48,169,328	$	—	$	(6,035,829	)	$	47,690,778

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments, return of capital distributions received and partnership adjustments.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments	Additional Paid-In Capital
$538,128	$(4,314,818)	$3,776,690

The reclassifications for the Fund are primarily due to foreign currency gain (loss), return of capital distributions received and partnership adjustments and distributions in connection with redemption of fund shares.

40 MainStay Income Builder Fund

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	62,132,602	$	37,950,929
Long-Term Capital Gain		44,756,393		25,396,720
Total	$	106,888,995	$	63,347,649

Note 5–Restricted Securities

As of October 31, 2015, the Fund held the following restricted security:

Security	Date of Acquisition		Shares		Cost		10/31/15 Value		Percent of Net Assets
ION Media Networks, Inc. Common Stock		3/11/14		12	$	21	$	5,215		0.0	%‡

‡ Less than one-tenth of a percent.

Note 6–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 7–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

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

During the year ended October 31, 2015, purchases and sales of U.S. government securities were $3,722 and $11,647, respectively.

Purchases and sales of securities, other than U.S. government securities and short-term securities, were $622,701 and $386,176, respectively.

Note 9–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		11,978,815		$	232,564,766
Shares issued to shareholders in reinvestment of dividends and distributions		2,021,817			38,907,148
Shares redeemed		(7,481,252	)		(142,177,899	)
Net increase (decrease) in shares outstanding before conversion		6,519,380			129,294,015
Shares converted into Class A (See Note 1)		449,992			8,798,801
Shares converted from Class A (See Note 1)		(270,070	)		(4,969,208	)
Net increase (decrease)		6,699,302		$	133,123,608
Year ended October 31, 2014:
Shares sold		6,102,756		$	123,159,003
Shares issued to shareholders in reinvestment of dividends and distributions		1,273,777			25,022,265
Shares redeemed		(4,030,407	)		(81,083,512	)
Net increase (decrease) in shares outstanding before conversion		3,346,126			67,097,756
Shares converted into Class A (See Note 1)		991,131			19,926,852
Shares converted from Class A (See Note 1)		(97,668	)		(1,967,214	)
Net increase (decrease)		4,239,589		$	85,057,394

41

Notes to Financial Statements (continued)

Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		597,695		$	11,699,385
Shares issued to shareholders in reinvestment of dividends and distributions		641,610			12,377,490
Shares redeemed		(928,125	)		(17,999,879	)
Net increase (decrease) in shares outstanding before conversion		311,180			6,076,996
Shares converted into Investor Class (See Note 1)		482,009			9,039,006
Shares converted from Investor Class (See Note 1)		(340,710	)		(6,701,508	)
Net increase (decrease)		452,479		$	8,414,494
Year ended October 31, 2014:
Shares sold		464,140		$	9,307,182
Shares issued to shareholders in reinvestment of dividends and distributions		501,246			9,822,500
Shares redeemed		(870,900	)		(17,445,337	)
Net increase (decrease) in shares outstanding before conversion		94,486			1,684,345
Shares converted into Investor Class (See Note 1)		354,529			7,120,150
Shares converted from Investor Class (See Note 1)		(874,995	)		(17,619,193	)
Net increase (decrease)		(425,980	)	$	(8,814,698	)
Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		502,947		$	9,852,271
Shares issued to shareholders in reinvestment of dividends and distributions		160,035			3,114,276
Shares redeemed		(382,243	)		(7,404,379	)
Net increase (decrease) in shares outstanding before conversion		280,739			5,562,168
Shares converted from Class B (See Note 1)		(319,725	)		(6,167,091	)
Net increase (decrease)		(38,986	)	$	(604,923	)
Year ended October 31, 2014:
Shares sold		383,462		$	7,723,640
Shares issued to shareholders in reinvestment of dividends and distributions		128,119			2,518,076
Shares redeemed		(314,990	)		(6,331,970	)
Net increase (decrease) in shares outstanding before conversion		196,591			3,909,746
Shares converted from Class B (See Note 1)		(371,103	)		(7,460,595	)
Net increase (decrease)		(174,512	)	$	(3,550,849	)

Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		8,160,384		$	160,686,108
Shares issued to shareholders in reinvestment of dividends and distributions		495,350			9,573,666
Shares redeemed		(2,521,438	)		(48,605,712	)
Net increase (decrease)		6,134,296		$	121,654,062
Year ended October 31, 2014:
Shares sold		4,052,542		$	82,122,551
Shares issued to shareholders in reinvestment of dividends and distributions		150,396			2,972,747
Shares redeemed		(644,215	)		(12,956,629	)
Net increase (decrease)		3,558,723		$	72,138,669
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		12,690,081		$	250,178,297
Shares issued to shareholders in reinvestment of dividends and distributions		1,709,758			33,131,319
Shares redeemed		(8,122,322	)		(157,391,171	)
Net increase (decrease)		6,277,517		$	125,918,445
Year ended October 31, 2014:
Shares sold		8,231,501		$	167,214,384
Shares issued to shareholders in reinvestment of dividends and distributions		921,093			18,258,226
Shares redeemed		(2,663,218	)		(53,738,899	)
Net increase (decrease)		6,489,376		$	131,733,711
Class R2	Shares			Amount
Period ended October 31, 2015 (a):
Shares sold		10,070		$	193,289
Shares issued to shareholders in reinvestment of dividends and distributions		34			639
Net increase (decrease)		10,104		$	193,928

(a) Inception date was February 27, 2015.

Note 10–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

42 MainStay Income Builder Fund

Note 11–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

43

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Income Builder Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Income Builder Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

44 MainStay Income Builder Fund

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years. Accordingly, the Fund paid $48,533,083 as long term capital distribution.

For the fiscal year ended October 31, 2015, the Fund designated approximately $36,468,337 under the Internal Revenue Code as qualified dividend income eligible for reduced tax rates.

The dividends paid by the Fund during the fiscal year ended October 31, 2015, should be multiplied by 22.3% to arrive at the corporate dividends received deduction.

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures

and Proxy Voting Record

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

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

Shareholder Reports and Quarterly

Portfolio Disclosure

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

45

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

46 MainStay Income Builder Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

47

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

48 MainStay Income Builder Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

49

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

50 MainStay Income Builder Fund

MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673698 MS291-15 MSIB11-12/15 (NYLIM) NL216

MainStay Global High Income Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	16
Notes to Financial Statements	22
Report of Independent Registered Public Accounting Firm	30
Federal Income Tax Information	31
Proxy Voting Policies and Procedures and Proxy Voting Record	31
Shareholder Reports and Quarterly Portfolio Disclosure	31
Board of Trustees, Officers and Advisory Board Members	32

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

Investment and Performance Comparison¹(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–11.70 –7.54	%		1.37 2.31	%		5.40 5.89	%		1.17 1.17	%
Investor Class Shares3	Maximum 4.5% Initial Sales Charge	With sales charges Excluding sales charges		–11.81 –7.66			1.23 2.16			5.28 5.76			1.34 1.34
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–12.57 –8.36			1.09 1.39			4.97 4.97			2.09 2.09
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		–9.28 –8.43			1.39 1.39			4.98 4.98			2.09 2.09
Class I Shares4	No Sales Charge			–7.30			2.56			6.15			0.92

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class I shares, first offered on August 31, 2007, include the historical performance of Class A shares through August 30, 2007 adjusted for certain fees and expenses. Unadjusted, the performance shown for Class I shares would likely have been different.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
JPMorgan EMBI Global Diversified Index5		0.39	%		4.91	%		7.34	%
Average Lipper Emerging Markets Hard Currency Debt Fund6		–4.91			2.85			6.12

5. The JPMorgan EMBI Global Diversified Index is a market-capitalization weighted, total return index tracking the traded market for U.S. dollar-denominated Brady Bonds, Eurobonds, traded loans and local market debt instruments issued by sovereign and quasi-sovereign entities. The JPMorgan EMBI Global Diversified Index is the Fund’s broad-based securities market index for comparison purposes. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an Index.

6. The Average Lipper Emerging Markets Hard Currency Debt Fund is representative of funds that seek either current income or total return by investing at least 65% of total assets in emerging market debt securities, where “emerging market” is defined by a country’s GNP per capita or other economic measures. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay Global High Income Fund

Cost in Dollars of a $1,000 Investment in MainStay Global High Income Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	971.50	$	6.16	$	1,019.00	$	6.31
Investor Class Shares	$	1,000.00	$	970.80	$	7.05	$	1,018.00	$	7.22
Class B Shares	$	1,000.00	$	967.40	$	10.76	$	1,014.30	$	11.02
Class C Shares	$	1,000.00	$	966.40	$	10.76	$	1,014.30	$	11.02
Class I Shares	$	1,000.00	$	972.70	$	4.92	$	1,020.20	$	5.04

1. Expenses are equal to the Fund’s annualized expense ratio of each class (1.24% for Class A, 1.42% for Investor Class, 2.17% for Class B and Class C and 0.99% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Country Composition as of October 31, 2015 (Unaudited)

Russia	8.1	%
Turkey	7.8
Mexico	7.5
Brazil	6.2
Indonesia	5.8
Kazakhstan	5.4
Peru	5.4
Hungary	4.0
Paraguay	3.6
United States	3.6
Venezuela	3.6
Sri Lanka	3.5
India	2.7
Costa Rica	2.2
Georgia	2.2
Dominican Republic	2.0
Panama	2.0
Uruguay	1.9
China	1.6
El Salvador	1.6
Ireland	1.6

United Arab Emirates	1.4	%
Colombia	1.2
Croatia	1.2
Gabon	1.2
Vietnam	1.2
Belarus	1.1
Guatemala	1.1
Nigeria	1.1
Ghana, Africa	0.9
Senegal	0.7
Argentina	0.6
Czech Republic	0.6
France	0.6
Pakistan	0.6
Chile	0.5
Hong Kong	0.5
Kenya	0.5
Jamaica	0.4
Ukraine	0.3
Other Assets, Less Liabilities	2.0
	100.0	%

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

Top Ten Issuers Held as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. KazMunayGas National Co., 4.40%–5.75%, due 4/30/23–4/30/43

2. Republic of Turkey, 6.00%–7.375%, due 2/5/25–1/14/41

3. Hungary Government International Bond, 6.25%–7.625%, due 1/29/20–3/29/41

4. Peruvian Government International Bond, 7.35%, due 7/21/25

5. Republic of Sri Lanka, 6.25%, due 10/4/20

  6. Petroleos Mexicanos, 5.625%–6.50%, due 6/2/41–1/23/46

  7. Pertamina Persero PT, 5.625%, due 5/20/43

  8. Turkey Government Bond, 7.10%–9.00%, due 3/8/17–3/8/23

  9. Republic of Venezuela, 9.25%, due 5/7/28

10. Republic of Paraguay, 6.10%, due 8/11/44

8 MainStay Global High Income Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Dan Roberts, PhD, Michael Kimble, CFA, and Jakob Bak, PhD, CFA, of MacKay Shields LLC, the Fund’s Subadvisor.

How did MainStay Global High Income Fund perform relative to its primary benchmark and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay Global High Income Fund returned –7.54% for Class A shares, –7.66% for Investor Class shares, –8.36% for Class B shares and –8.43% for Class C shares for the 12 months ended October 31, 2015. Over the same period, the Fund’s Class I shares returned –7.30%. For the 12 months ended October 31, 2015, all share classes underperformed the 0.39% return of the JPMorgan EMBI Global Diversified Index,¹ which is the Fund’s broad-based securities-market index, and the –4.91% return of the Average Lipper² Emerging Markets Hard Currency Debt Fund. See page 5 for Fund returns with applicable sales charges.

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

The Fund’s higher beta³ bias, overweight position in emerging-market corporate issues and shorter duration⁴ posture than the JPMorgan EMBI Global Diversified Index negatively affected the Fund’s relative performance during the reporting period. Over the reporting period, lower-quality debt generally underperformed higher-quality debt, and emerging-market corporate bonds generally underperformed emerging-market sovereign bonds.

Price declines in energy and commodities continued to challenge countries that produce oil, gas, coal, iron ore, bauxite, copper and other materials that were previously in high demand by China. This dynamic had a negative effect on select positions held by the Fund in Venezuela and Russia. In Ukraine, a restructuring deal was reached that was much friendlier to creditors than had been anticipated, and the deal provided at least a short-term boost to bond valuations.

Brazilian corporate bonds remained under pressure as the country faced multiple challenges, including lower commodity prices, worsening government finances and the potential for major political upheaval. These concerns resulted in ratings downgrades by the major credit agencies for Brazilian sovereign debt, which detracted from performance.

What was the Fund’s duration strategy during the reporting period?

The Fund’s duration was modestly shorter than that of the JPMorgan EMBI Global Diversified Index, as we sought to

reduce the Fund’s interest-rate sensitivity relative to the Index. This was achieved in part by increasing the Fund’s exposure to lower-quality credits that we felt offered better opportunities for risk-adjusted returns. (Lower-quality credits tend to be less sensitive to interest-rate changes than sovereign bonds.) As of October 31, 2015, the Fund’s effective duration was 6.3 years compared to 6.7 years for the JPMorgan EMBI Global Diversified Index.

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

Throughout the reporting period, there were many events that had to be considered in positioning the Fund. Among these were inconsistent economic data, global central bank monetary policy, volatility in energy prices, China’s slowing economy and a flattening yield curve.⁵ In our opinion, lending growth and improving sentiment pointed toward a sustainable rebound in Europe. On the other hand, we believed that weakness in emerging-market economies—especially among commodity-sensitive companies in Latin America—was likely to continue.

As idiosyncratic risks rose, we made moderate adjustments to the Fund’s positioning. Specifically, we elected to pare back some of the Fund’s higher-beta, weaker credit positions, including applicable issues in developing markets. We also took advantage of an active new-issue calendar while moving up the capital structure on a selective basis.

How was the Fund affected by shifting currency values during the reporting period?

During the reporting period, a substantial portion of the Fund’s assets were invested in dollar-denominated bonds, so the impact of shifting currency values on the Fund was minimal.

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

The strongest positive contributors to the Fund’s absolute performance during the reporting period were long-dated investment-grade securities, such as bonds issued by Indonesian-government-owned company Pertamina Persero maturing in 2043 and Panamanian bonds maturing in 2036. (Contributions take weightings and total returns into account.)

1. See footnote on page 6 for more information on the JPMorgan EMBI Global Diversified Index.

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

3. Beta is a measure of volatility in relation to the market as a whole. A beta higher than 1 indicates that a security or portfolio will tend to exhibit higher volatility than the market. A beta lower than 1 indicates that a security or portfolio will tend to exhibit lower volatility than the market.

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

5. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.

9

The Fund’s Ukrainian sovereign bonds detracted the most from the Fund’s absolute performance during the reporting period, as a restructuring became unavoidable. The Fund’s Venezuelan positions suffered as a result of increasing government dysfunction and a collapse in oil prices.

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

During the reporting period we purchased long-dated bonds from Indonesia, Hungary, Costa Rica, China and Mexico as we sought to increase the Fund’s duration and bring it closer to that of the JPMorgan EMBI Global Diversified Index. These trades detracted slightly from the Fund’s performance; but we believed that they would limit the Fund’s duration risk going forward. We also exited positions in some of the Fund’s oil-related securities, including Colombian producer Pacific Rubiales, Russian producer Lukoil and Georgian oil and gas distributer Georgian Oil and Gas.

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

The Fund’s sector weightings remained largely unchanged during the reporting period. One notable exception was a reduced exposure to commodity-sensitive securities.

How was the Fund positioned at the end of the reporting period?

As of October 31, 2015, the Fund held an overweight position relative to the JPMorgan EMBI Global Diversified Index in corporate bonds and an underweight position relative to the Index in sovereign debt. As of the same date, the Fund held overweight positions relative to the JPMorgan EMBI Global Diversified Index in Europe and Latin America and underweight positions in Asia and the Middle East.

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

10 MainStay Global High Income Fund

Portfolio of Investments October 31, 2015

	Principal Amount		Value
Long-Term Bonds 94.5%† Corporate Bonds 46.7%
Brazil 5.1%
Banco Bradesco S.A. 5.90%, due 1/16/21 (a)	$	2,000,000	$	1,985,000
Banco Do Brasil S.A. 9.25%, due 10/29/49 (a)(b)		1,000,000		708,750
Minerva Luxembourg S.A. 7.75%, due 1/31/23 (a)		2,250,000		2,221,875
Petrobras Global Finance B.V. 6.85%, due 6/5/49		1,000,000		686,200
Petrobras International Finance Co. S.A. 5.375%, due 1/27/21		3,000,000		2,441,250
Vale Overseas, Ltd. 6.875%, due 11/21/36		1,800,000		1,465,380
				9,508,455
Chile 0.5%
VTR Finance B.V. 6.875%, due 1/15/24 (a)		1,000,000		967,500
China 1.6%
Alibaba Group Holding, Ltd. 4.50%, due 11/28/34 (a)		2,000,000		1,907,740
Country Garden Holdings Co., Ltd. 7.50%, due 1/10/23 (a)		1,000,000		1,036,426
				2,944,166
Colombia 1.2%
Colombia Telecomunicaciones S.A. ESP 5.375%, due 9/27/22 (a)		2,500,000		2,231,250
Czech Republic 0.6%
CE Energy A.S. 7.00%, due 2/1/21 (a)		EUR1,000,000		1,131,265
France 0.6%
CGG S.A. 6.875%, due 1/15/22	$	2,000,000		1,130,000
Georgia 1.0%
Georgian Oil & Gas Corp. 6.875%, due 5/16/17 (a)		1,800,000		1,806,120
Guatemala 1.1%
Industrial Senior Trust 5.50%, due 11/1/22 (a)		2,200,000		2,005,025

	Principal Amount		Value
Hong Kong 0.5%
MCE Finance, Ltd. 5.00%, due 2/15/21 (a)	$	1,000,000	$	936,300
India 2.7%
Bharti Airtel International Netherlands B.V. Series Reg S 5.125%, due 3/11/23		2,000,000		2,121,616
Reliance Holding USA, Inc. 5.40%, due 2/14/22 (a)		2,000,000		2,192,972
Vedanta Resources PLC 8.25%, due 6/7/21 (a)		1,005,000		804,000
				5,118,588
Indonesia 4.3%
¨Pertamina Persero PT 5.625%, due 5/20/43 (a)		6,700,000		5,571,050
Perusahaan Listrik Negara PT Series Reg S 5.25%, due 10/24/42		3,000,000		2,467,500
				8,038,550
Ireland 1.6%
UT2 Funding PLC 5.321%, due 6/30/16		EUR2,700,000		3,001,407
Kazakhstan 5.4%
Kazakhstan Temir Zholy Finance B.V. 6.375%, due 10/6/20 (a)	$	1,000,000		977,000
¨KazMunayGas National Co.
4.40%, due 4/30/23 (a)		6,000,000		5,280,000
5.75%, due 4/30/43 (a)		5,000,000		3,848,760
				10,105,760
Mexico 7.5%
Cemex Finance LLC 6.00%, due 4/1/24 (a)		3,000,000		2,865,000
Comision Federal de Electricidad 4.875%, due 1/15/24 (a)		2,000,000		2,045,000
Grupo Bimbo S.A.B. de C.V. 4.50%, due 1/25/22 (a)		2,500,000		2,603,822
¨Petroleos Mexicanos
5.625%, due 1/23/46 (a)		3,000,000		2,586,900
6.50%, due 6/2/41		4,000,000		3,839,200
				13,939,922
Paraguay 1.4%
Banco Continental S.A.E. 8.875%, due 10/15/17 (a)		2,500,000		2,535,963

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest issuers held, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Principal Amount		Value
Corporate Bonds (continued)
Peru 1.4%
BBVA Banco Continental S.A. 5.00%, due 8/26/22 (a)	$	2,500,000	$	2,631,250
Russia 6.4%
ALROSA Finance S.A. 7.75%, due 11/3/20 (a)		3,500,000		3,710,000
Lukoil International Finance B.V. 6.656%, due 6/7/22 (a)		1,000,000		1,050,000
Metalloinvest Finance, Ltd. Series Reg S 5.625%, due 4/17/20		2,000,000		1,905,000
Novatek OAO via Novatek Finance, Ltd. 6.604%, due 2/3/21 (a)		2,000,000		2,045,000
VimpelCom Holdings B.V. 7.504%, due 3/1/22 (a)		3,000,000		3,157,500
				11,867,500
Turkey 0.8%
Arcelik A.S. 5.00%, due 4/3/23 (a)		1,500,000		1,404,300
Ukraine 0.3%
Ukraine Railways via Shortline PLC 9.50%, due 5/21/18 (a)		710,000		566,225
United Arab Emirates 1.4%
Abu Dhabi National Energy Co. 3.625%, due 1/12/23 (a)		2,750,000		2,701,875
Venezuela 1.3%
Petroleos de Venezuela S.A. Series Reg S 12.75%, due 2/17/22		5,000,000		2,487,500
Total Corporate Bonds (Cost $96,347,195)				87,058,921
Government & Federal Agencies 47.7%
Argentina 0.6%
City of Buenos Aires Argentina 8.95%, due 2/19/21 (a)		1,000,000		1,055,000
Belarus 1.1%
Republic of Belarus Series Reg S 8.95%, due 1/26/18		2,000,000		2,061,520

	Principal Amount		Value
Brazil 1.2%
Brazil Notas do Tesouro Nacional Series F 10.00%, due 1/1/23		BRL11,000,000	$	2,178,544
Costa Rica 2.2%
Costa Rica Government International Bond 7.158%, due 3/12/45 (a)	$	2,000,000		1,805,000
Instituto Costarricense de Electricidad 6.375%, due 5/15/43 (a)		3,000,000		2,313,750
				4,118,750
Croatia 1.2%
Republic of Croatia 6.375%, due 3/24/21 (a)		2,000,000		2,152,500
Dominican Republic 2.0%
Dominican Republic Series Reg S 7.50%, due 5/6/21		3,500,000		3,806,250
El Salvador 1.6%
El Salvador Government International Bond 7.75%, due 1/24/23 (a)		3,000,000		3,045,000
Gabon 1.2%
Gabonese Republic 6.375%, due 12/12/24 (a)		2,596,000		2,232,560
Georgia 1.2%
Republic of Georgia Series Reg S 6.875%, due 4/12/21		2,000,000		2,133,500
Ghana 0.9%
Republic of Ghana 7.875%, due 8/7/23 (a)		2,010,344		1,724,513
Hungary 4.0%
¨Hungary Government International Bond
6.25%, due 1/29/20		4,250,000		4,797,867
7.625%, due 3/29/41		2,000,000		2,727,280
				7,525,147
Indonesia 1.5%
Indonesia Government International Bond 5.125%, due 1/15/45 (a)		3,000,000		2,813,235

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

	Principal Amount		Value
Government & Federal Agencies (continued)
Jamaica 0.4%
Jamaica Government 8.00%, due 6/24/19	$	650,000	$	708,500
Kenya 0.5%
Kenya Government International Bond 6.875%, due 6/24/24 (a)		1,000,000		927,250
Nigeria 1.1%
Nigeria Government International Bond Series Reg S 6.75%, due 1/28/21		2,000,000		1,970,500
Pakistan 0.6%
Pakistan Government International Bond 8.25%, due 9/30/25 (a)		1,000,000		1,067,784
Panama 2.0%
Republic of Panama 6.70%, due 1/26/36		3,058,000		3,784,275
Paraguay 2.2%
¨Republic of Paraguay 6.10%, due 8/11/44 (a)		4,000,000		4,060,000
Peru 4.0%
¨Peruvian Government International Bond 7.35%, due 7/21/25		5,800,000		7,482,000
Russia 1.7%
Russian Federal Bond-OFZ 7.00%, due 1/25/23		RUB230,000,000		3,077,451
Senegal 0.7%
Republic of Senegal 8.75%, due 5/13/21 (a)	$	1,250,000		1,342,500
Sri Lanka 3.5%
¨Republic of Sri Lanka 6.25%, due 10/4/20 (a)		6,500,000		6,526,000
Turkey 7.0%
¨Republic of Turkey
6.00%, due 1/14/41		5,000,000		5,256,000
7.375%, due 2/5/25		2,225,000		2,661,256

	Principal Amount			Value
Turkey (continued)
¨Turkey Government Bond
7.10%, due 3/8/23		TRY6,750,000		$	2,009,673
9.00%, due 3/8/17		9,400,000			3,182,342
					13,109,271
Uruguay 1.9%
Republica Orient Uruguay 4.375%, due 12/15/28		UYU117,939,752			3,527,968
Venezuela 2.3%
¨Republic of Venezuela Series Reg S 9.25%, due 5/7/28	$	11,095,000			4,354,788
Vietnam 1.2%
Socialist Republic of Vietnam 6.75%, due 1/29/20 (a)		2,000,000			2,215,568
Total Government & Federal Agencies (Cost $101,161,267)					89,000,374
Total Long-Term Bonds (Cost $197,508,462)					176,059,295
Short-Term Investment 3.6%
Repurchase Agreement 3.6%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $6,724,620 (Collateralized by a United States Treasury Note with a rate of 1.375% and a maturity date of 2/29/20, with a Principal Amount of $6,860,000 and a Market Value of $6,860,000)		6,724,620			6,724,620
Total Short-Term Investment (Cost $6,724,620)					6,724,620
Total Investments (Cost $204,233,082) (c)		98.0	%		182,783,915
Other Assets, Less Liabilities		2.0			3,663,009
Net Assets		100.0	%	$	186,446,924

(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 October 31, 2015.

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 October 31, 2015 (continued)

(c) As of October 31, 2015, cost was $204,233,082 for federal income tax purposes and net unrealized depreciation was as follows:

Gross unrealized appreciation	$	4,228,856
Gross unrealized depreciation		(25,678,023	)
Net unrealized depreciation	$	(21,449,167	)

As of October 31, 2015, the Fund held the following foreign currency forward contracts:

Foreign Currency Buy Contracts	Expiration Date		Counterparty	Contract Amount Purchased			Contract Amount Sold		Unrealized Appreciation (Depreciation)
Brazilian Real vs. U.S. Dollar		12/3/15	Barclays Bank PLC		BRL	10,000,000	$	2,499,750	$	67,460
Euro vs. U.S. Dollar		12/3/15	HSBC Bank USA		EUR	6,000,000		6,772,350		(171,988	)
Indonesian Rupiah vs. U.S. Dollar		12/3/15	HSBC Bank USA		IDR	26,600,000,000		1,938,776		(12,286	)
Polish Zloty vs. Euro		12/3/15	HSBC Bank USA		PLN	11,200,000	EUR	2,667,302		(38,774	)
Foreign Currency Sales Contracts				Contract Amount Sold			Contract Amount Purchased
Brazilian Real vs. U.S. Dollar		12/3/15	Barclays Bank PLC		BRL	10,000,000	$	2,992,668		425,458
Euro vs. U.S. Dollar		12/3/15	HSBC Bank USA		EUR	9,000,000		10,055,610		155,067
Pound Sterling vs. U.S. Dollar		12/3/15	HSBC Bank USA		GBP	2,000,000		3,097,360		14,721
Net unrealized appreciation (depreciation) on foreign currency forward contracts									$	439,658

The following abbreviations are used in the preceding pages:

BRL—Brazilian Real

EUR—Euro

GBP—British Pound Sterling

IDR—Indonesian Rupiah

PLN—Polish Zloty

RUB—New Russian Ruble

TRY—Turkish Lira

UYU—Uruguayam Peso

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets and liabilities.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Long-Term Bonds
Corporate Bonds	$	—	$	87,058,921	$	—	$	87,058,921
Government & Federal Agencies		—		89,000,374		—		89,000,374
Total Long-Term Bonds		—		176,059,295		—		176,059,295
Short-Term Investment
Repurchase Agreement		—		6,724,620		—		6,724,620
Total Investments in Securities		—		182,783,915		—		182,783,915
Other Financial Instruments
Foreign Currency Forward Contract (b)		—		662,706		—		662,706
Total Investments in Securities and Other Financial Instruments	$	—	$	183,446,621	$	—	$	183,446,621

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

Liability Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Other Financial Instruments
Foreign Currency Forward Contract (b)	$	—	$	(223,048	)	$	—	$	(223,048	)
Total Other Financial Instruments	$	—	$	(223,048	)	$	—	$	(223,048	)

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

As of October 31, 2015 the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

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

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $204,233,082)	$	182,783,915
Cash		1,050,911
Cash denominated in foreign currencies (identified cost $275,659)		282,583
Receivables:
Interest		3,428,466
Fund shares sold		326,024
Other assets		29,749
Unrealized appreciation on foreign currency forward contracts		662,706
Total assets		188,564,354
Liabilities
Payables:
Investment securities purchased		1,050,911
Fund shares redeemed		395,705
Manager (See Note 3)		113,800
Transfer agent (See Note 3)		70,715
NYLIFE Distributors (See Note 3)		64,762
Professional fees		24,696
Shareholder communication		14,223
Custodian		3,135
Trustees		453
Accrued expenses		4,638
Dividend payable		151,344
Unrealized depreciation on foreign currency forward contracts		223,048
Total liabilities		2,117,430
Net assets	$	186,446,924
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	194,725
Additional paid-in capital		218,435,497
		218,630,222
Distributions in excess of net investment income		(576,802	)
Accumulated net realized gain (loss) on investments and foreign currency transactions		(10,593,811	)
Net unrealized appreciation (depreciation) on investments		(21,449,167	)
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies and foreign currency forward contracts		436,482
Net assets	$	186,446,924

Class A
Net assets applicable to outstanding shares	$	98,573,268
Shares of beneficial interest outstanding		10,267,839
Net asset value per share outstanding	$	9.60
Maximum sales charge (4.50% of offering price)		0.45
Maximum offering price per share outstanding	$	10.05
Investor Class
Net assets applicable to outstanding shares	$	25,129,872
Shares of beneficial interest outstanding		2,595,539
Net asset value per share outstanding	$	9.68
Maximum sales charge (4.50% of offering price)		0.46
Maximum offering price per share outstanding	$	10.14
Class B
Net assets applicable to outstanding shares	$	8,110,804
Shares of beneficial interest outstanding		859,025
Net asset value and offering price per share outstanding	$	9.44
Class C
Net assets applicable to outstanding shares	$	37,807,622
Shares of beneficial interest outstanding		3,999,264
Net asset value and offering price per share outstanding	$	9.45
Class I
Net assets applicable to outstanding shares	$	16,825,358
Shares of beneficial interest outstanding		1,750,879
Net asset value and offering price per share outstanding	$	9.61

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Interest	$	16,020,581
Expenses
Manager (See Note 3)		1,562,653
Distribution/Service—Class A (See Note 3)		274,337
Distribution/Service—Investor Class (See Note 3)		62,489
Distribution/Service—Class B (See Note 3)		95,263
Distribution/Service—Class C (See Note 3)		440,987
Transfer agent (See Note 3)		445,545
Registration		85,422
Professional fees		76,632
Shareholder communication		42,354
Custodian		36,857
Trustees		4,122
Miscellaneous		12,525
Total expenses		3,139,186
Net investment income (loss)		12,881,395
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions		(13,102,771	)
Foreign currency transactions		184,743
Net realized gain (loss) on investments and foreign currency transactions		(12,918,028	)
Net change in unrealized appreciation (depreciation) on:
Investments		(20,742,177	)
Translation of other assets and liabilities in foreign currencies and foreign currency forward contracts		264,599
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		(20,477,578	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		(33,395,606	)
Net increase (decrease) in net assets resulting from operations	$	(20,514,211	)

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 years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	12,881,395		$	15,881,624
Net realized gain (loss) on investments, futures transactions and foreign currency transactions		(12,918,028	)		6,552,220
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		(20,477,578	)		(10,599,271	)
Net increase (decrease) in net assets resulting from operations		(20,514,211	)		11,834,573
Dividends and distributions to shareholders:
From net investment income:
Class A		(6,877,345	)		(8,048,453	)
Investor Class		(1,500,044	)		(1,483,552	)
Class B		(518,158	)		(637,312	)
Class C		(2,408,638	)		(2,914,424	)
Class I		(1,867,520	)		(2,174,069	)
		(13,171,705	)		(15,257,810	)
From net realized gain on investments:
Class A		(2,501,548	)		(394,186	)
Investor Class		(521,541	)		(73,982	)
Class B		(226,277	)		(39,130	)
Class C		(1,063,929	)		(179,587	)
Class I		(766,119	)		(97,969	)
		(5,079,414	)		(784,854	)
From return of capital:
Class A		(641,964	)		—
Class Inv		(149,976	)		—
Class B		(55,741	)		—
Class C		(257,923	)		—
Class I		(152,478	)		—
		(1,258,082	)		—
Total dividends and distributions to shareholders		(19,509,201	)		(16,042,664	)
Capital share transactions:
Net proceeds from sale of shares		31,891,380			75,401,872
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		15,588,807			12,511,591
Cost of shares redeemed		(90,178,570	)		(122,883,639	)
Increase (decrease) in net assets derived from capital share transactions		(42,698,383	)		(34,970,176	)
Net increase (decrease) in net assets		(82,721,795	)		(39,178,267	)
Net Assets
Beginning of year		269,168,719			308,346,986
End of year	$	186,446,924		$	269,168,719
Undistributed (distributions in excess of) net investment income at end of year	$	(576,802	)	$	1,309,066

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.38		$	11.52		$	12.62		$	11.83		$	12.42
Net investment income (loss) (a)		0.62			0.68			0.68			0.62			0.60
Net realized and unrealized gain (loss) on investments		(1.51	)		(0.14	)		(0.93	)		1.11			(0.41	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.00	)‡		0.01			0.02			0.03
Total from investment operations		(0.87	)		0.54			(0.24	)		1.75			0.22
Less dividends and distributions:
From net investment income		(0.63	)		(0.65	)		(0.86	)		(0.64	)		(0.65	)
From net realized gain on investments		(0.22	)		(0.03	)		—			(0.32	)		(0.16	)
From return of capital		(0.06	)		—			—			—			—
Total dividends and distributions		(0.91	)		(0.68	)		(0.86	)		(0.96	)		(0.81	)
Net asset value at end of year	$	9.60		$	11.38		$	11.52		$	12.62		$	11.83
Total investment return (b)		(7.54	%)		4.85	%		(1.98	%)		15.68	%		1.96	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		6.18	%		5.88	%		5.58	%		5.22	%		5.03	%
Net expenses		1.23	%		1.17	%		1.16	%		1.17	%		1.22	%
Portfolio turnover rate		19	%		20	%		36	%		31	%		65	%
Net assets at end of year (in 000’s)	$	98,573		$	132,654		$	152,832		$	179,430		$	144,272

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.46		$	11.60		$	12.71		$	11.90		$	12.49
Net investment income (loss) (a)		0.61			0.66			0.67			0.61			0.59
Net realized and unrealized gain (loss) on investments		(1.52	)		(0.14	)		(0.94	)		1.12			(0.41	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.00	)‡		0.01			0.02			0.03
Total from investment operations		(0.89	)		0.52			(0.26	)		1.75			0.21
Less dividends and distributions:
From net investment income		(0.61	)		(0.63	)		(0.85	)		(0.62	)		(0.64	)
From net realized gain on investments		(0.22	)		(0.03	)		—			(0.32	)		(0.16	)
From return of capital		(0.06	)		—			—			—			—
Total dividends and distributions		(0.89	)		(0.66	)		(0.85	)		(0.94	)		(0.80	)
Net asset value at end of year	$	9.68		$	11.46		$	11.60		$	12.71		$	11.90
Total investment return (b)		(7.66	%)		4.64	%		(2.18	%)		15.52	%		1.94	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		6.01	%		5.71	%		5.49	%		5.10	%		4.93	%
Net expenses		1.41	%		1.34	%		1.30	%		1.29	%		1.32	%
Portfolio turnover rate		19	%		20	%		36	%		31	%		65	%
Net assets at end of year (in 000’s)	$	25,130		$	27,033		$	27,918		$	27,165		$	23,439

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.20		$	11.35		$	12.45		$	11.68		$	12.28
Net investment income (loss) (a)		0.52			0.56			0.56			0.51			0.49
Net realized and unrealized gain (loss) on investments		(1.48	)		(0.13	)		(0.91	)		1.09			(0.41	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.00	)‡		0.01			0.02			0.03
Total from investment operations		(0.94	)		0.43			(0.34	)		1.62			0.11
Less dividends and distributions:
From net investment income		(0.54	)		(0.55	)		(0.76	)		(0.53	)		(0.55	)
From net realized gain on investments		(0.22	)		(0.03	)		—			(0.32	)		(0.16	)
From return of capital		(0.06	)		—			—			—			—
Total dividends and distributions		(0.82	)		(0.58	)		(0.76	)		(0.85	)		(0.71	)
Net asset value at end of year	$	9.44		$	11.20		$	11.35		$	12.45		$	11.68
Total investment return (b)		(8.36	%)		3.87	%		(2.89	%)		14.60	%		1.13	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.24	%		4.97	%		4.70	%		4.35	%		4.18	%
Net expenses		2.16	%		2.09	%		2.05	%		2.04	%		2.07	%
Portfolio turnover rate		19	%		20	%		36	%		31	%		65	%
Net assets at end of year (in 000’s)	$	8,111		$	12,109		$	15,290		$	20,101		$	21,961

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.22		$	11.37		$	12.46		$	11.69		$	12.29
Net investment income (loss) (a)		0.52			0.56			0.56			0.51			0.49
Net realized and unrealized gain (loss) on investments		(1.49	)		(0.13	)		(0.90	)		1.09			(0.41	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.00	)‡		0.01			0.02			0.03
Total from investment operations		(0.95	)		0.43			(0.33	)		1.62			0.11
Less dividends and distributions:
From net investment income		(0.54	)		(0.55	)		(0.76	)		(0.53	)		(0.55	)
From net realized gain on investments		(0.22	)		(0.03	)		—			(0.32	)		(0.16	)
From return of capital		(0.06	)		—			—			—			—
Total dividends and distributions		(0.82	)		(0.58	)		(0.76	)		(0.85	)		(0.71	)
Net asset value at end of year	$	9.45		$	11.22		$	11.37		$	12.46		$	11.69
Total investment return (b)		(8.43	%)		3.87	%		(2.80	%)		14.59	%		1.13	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		5.24	%		4.97	%		4.69	%		4.35	%		4.18	%
Net expenses		2.16	%		2.09	%		2.05	%		2.04	%		2.07	%
Portfolio turnover rate		19	%		20	%		36	%		31	%		65	%
Net assets at end of year (in 000’s)	$	37,808		$	56,199		$	68,629		$	91,002		$	80,351

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

20 MainStay Global High Income Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.39		$	11.53		$	12.63		$	11.84		$	12.43
Net investment income (loss) (a)		0.65			0.71			0.71			0.66			0.63
Net realized and unrealized gain (loss) on investments		(1.52	)		(0.14	)		(0.93	)		1.10			(0.41	)
Net realized and unrealized gain (loss) on foreign currency transactions		0.02			(0.00	)‡		0.01			0.02			0.03
Total from investment operations		(0.85	)		0.57			(0.21	)		1.78			0.25
Less dividends and distributions:
From net investment income		(0.65	)		(0.68	)		(0.89	)		(0.67	)		(0.68	)
From net realized gain on investments		(0.22	)		(0.03	)		—			(0.32	)		(0.16	)
From return of capital		(0.06	)		—			—			—			—
Total dividends and distributions		(0.93	)		(0.71	)		(0.89	)		(0.99	)		(0.84	)
Net asset value at end of year	$	9.61		$	11.39		$	11.53		$	12.63		$	11.84
Total investment return (b)		(7.30	%)		5.11	%		(1.73	%)		15.95	%		2.22	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		6.38	%		6.13	%		5.86	%		5.47	%		5.31	%
Net expenses		0.98	%		0.92	%		0.91	%		0.92	%		0.97	%
Portfolio turnover rate		19	%		20	%		36	%		31	%		65	%
Net assets at end of year (in 000’s)	$	16,825		$	41,174		$	43,678		$	48,852		$	36,027

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(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.

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

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Global High Income Fund (the “Fund”), a non-diversified fund.

The Fund currently offers five classes of shares. Class A and Class B shares commenced operations on June 1, 1998. Class C shares commenced operations on September 1, 1998. Class I shares commenced operations on August 31, 2007. Investor Class shares commenced operations on February 28, 2008. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The five classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A and Investor Class shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee.

The Fund’s investment objective is to seek maximum current income by investing in high-yield debt securities of non-U.S. issuers. Capital appreciation is a secondary objective.

The Fund is “non-diversified,” which means that it may invest a greater percentage of its assets than diversified funds in a particular issuer. This may make it more susceptible than diversified funds to risks associated with an individual issuer, and to single economic, political or regulatory occurrences.

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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally

4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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

22 MainStay Global High Income Fund

associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time

when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, there were no securities held by the Fund that were fair valued in such a manner.

Options contracts are valued at the last posted settlement price on the market where such options are primarily traded. Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities (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 Manager, in consultation with the Subadvisor. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean prices are deemed by the Manager, 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 & 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. Other temporary cash investments which 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. These securities are generally categorized as Level 2 in the hierarchy.

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

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued within seven days. Illiquidity of a security might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of the Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund.

23

Notes to Financial Statements (continued)

Under the supervision of the Board, the Manager or Subadvisor measures the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued by methods deemed reasonable in good faith in such a manner as the Board deems appropriate to reflect their fair value. The liquidity of the Fund’s investments, as shown in the accompanying Portfolio of Investments, was measured as of October 31, 2015 and can change at any time in response, among other relevant factors, to market conditions or events or developments with respect to an individual issuer or instrument. As of October 31, 2015, the Fund did not hold any securities deemed to be illiquid under procedures approved by the Board of Trustees.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C)  Foreign Taxes.  The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which they invest. A portion of the taxes on gains on investments or currency purchases/repatriation may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

(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 monthly and distributions from net realized capital and currency gains, if any, at least annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(E)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and

losses on security transactions are determined using the identified cost method. Interest income is accrued as earned using the effective interest rate method. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

The Fund may place a debt obligation on non-accrual status and reduce related interest income by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation 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 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.

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

(H)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

When the Fund invests in repurchase agreements, the Fund’s custodian takes possession of the collateral pledged for investments in the repurchase agreement. The underlying collateral is valued daily on a mark to market basis to determine if the value, including accrued interest, exceeds the repurchase price. In the event of the seller’s default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, such as in the event of default or

24 MainStay Global High Income Fund

bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral may be subject to legal proceedings and possible realized loss to the Fund.

(I)  Futures Contracts.  A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., foreign currency, interest rate, security, or securities index). The Fund is subject to market price risk and/or interest rate risk in the normal course of investing in these transactions. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized 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 may involve a small initial investment relative to the risk assumed, which could result in losses greater than if they had not been used. Futures 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 help manage the duration and yield curve of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAV and may result in a loss to the Fund.

(J)  Foreign Currency Forward Contracts.  The Fund may enter into foreign currency forward contracts, which are agreements to buy or sell foreign currencies on a specified future date at a specified rate. The Fund is subject to foreign currency exchange rate risk in the normal course of investing in these transactions. During the period the forward contract is open, changes in the value of the contract are recognized as unrealized 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. Cash movement occurs on settlement date. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost

of) the closing transaction and the Fund’s basis in the contract. The Fund may purchase and sell foreign currency forward contracts for purposes of seeking to enhance portfolio returns and manage portfolio risk more efficiently. Foreign currency forward contracts may also be used to gain exposure to a particular currency or to hedge against the risk of loss due to changing currency exchange rates. Foreign currency forward contracts to purchase or sell a foreign currency may also be used in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected.

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

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

(L)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set

25

Notes to Financial Statements (continued)

forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

(M)  Concentration of Risk.  The Fund’s principal investments include high yield debt securities (sometimes called “junk bonds”), which are generally considered speculative because they present a greater risk of loss, including default, than higher quality 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.

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

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

(O)  Quantitative Disclosure of Derivative Holdings.  The following tables show additional disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash

flows. The Fund invested in futures contracts to help manage the duration and yield curve of the portfolio while minimizing the exposure to wider bid/ask spreads in traditional bonds. The Fund also invested in foreign currency forward contracts to hedge against the risk of loss due to changing currency exchange rates. These derivatives are not accounted for as hedging instruments.

Fair value of derivatives instruments as of October 31, 2015:

Asset Derivatives

	Statement of Assets and Liabilities Location	Foreign Exchange Contracts Risk		Total
Forward Contracts	Unrealized appreciation on foreign currency forward contracts	$	662,706	$	662,706
Total Fair Value		$	662,706	$	662,706

Liability Derivatives

	Statement of Assets and Liabilities Location	Foreign Exchange Contracts Risk			Total
Forward Contracts	Unrealized depreciation on foreign currency forward contracts	$	(223,048	)	$	(223,048	)
Total Fair Value		$	(223,048	)	$	(223,048	)

The effect of derivative instruments on the Statement of Operations for the year ended October 31, 2015:

Realized Gain (Loss)

	Statement of Operations Location	Foreign Exchange Contracts Risk		Total
Forward Contracts	Net realized gain (loss) on foreign currency transactions	$	1,128,588	$	1,128,588
Total Realized Gain (Loss)		$	1,128,588	$	1,128,588

Change in Unrealized Appreciation (Depreciation)

	Statement of Operations Location	Foreign Exchange Contracts Risk		Total
Forward Contracts	Net change in unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies and foreign currency forward contracts	$	206,414	$	206,414
Total Change in Unrealized Appreciation (Depreciation)		$	206,414	$	206,414

26 MainStay Global High Income Fund

Average Notional Amount

	Foreign Exchange Contracts Risk			Total
Forward Contracts Long	$	20,173,069		$	20,173,069
Forward Contracts Short	$	(34,602,116	)	$	(34,602,116	)

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 a portion of the compensation of the Chief Compliance Officer of 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 Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of the 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.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.70% to $500 million and 0.65% in excess of $500 million, plus a fee for fund accounting services previously provided by New York Life Investments under a separate fund accounting agreement furnished at an annual rate of the Fund’s average net assets as follows: 0.05% up to $20 million; 0.0333% from $20 million to $100 million; and 0.01% in excess of $100 million. During the year ended October 31, 2015, the effective management fee rate was 0.72% inclusive of a fee for fund accounting services of 0.02% of the Fund’s average daily net assets.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $1,562,653.

State Street 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, State Street is compensated by New York Life Investments.

(B)  Distribution and Service Fees.  The Trust, on behalf of the Fund, has entered into a distribution agreement with NYLIFE Distributors LLC (the “Distributor”), an indirect, wholly-owned subsidiary of

New York Life. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.

Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly distribution 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, 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 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.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $21,940 and $4,655, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares of $15, $44, $17,774 and $8,058, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	153,495
Investor Class		80,538
Class B		30,657
Class C		141,904
Class I		38,951

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

(F)  Capital.  As of October 31, 2015, New York Life and its affiliates beneficially held shares of the Fund with values and percentages of net assets as follows:

Class A $ 5,725,574 5.8 % 

27

Notes to Financial Statements (continued)

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)			Other Temporary Differences			Unrealized Appreciation (Depreciation)			Total Accumulated Gain (Loss)
$—	$	(10,567,325	)	$	(151,344	)	$	(21,464,629	)	$	(32,183,298	)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to mark to market of foreign forward contracts. The other temporary differences are primarily due to dividends payable.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments		Additional Paid-In Capital
$(1,595,558)	$	1,595,558	$	—

The reclassifications for the Fund are primarily due to foreign currency gain (loss) and defaulted bonds.

As of October 31, 2015, for federal income tax purposes, capital loss carryforwards of $10,567,325 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss Available Through	Short-Term Capital Loss Amounts (000’s)		Long-Term Capital Loss Amounts (000’s)
Unlimited	$	1,345	$	9,222

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	13,171,711	$	15,574,034
Long-Term Capital Gain		5,079,408		468,630
Return of Capital		1,258,082		—
Total	$	19,509,201	$	16,042,664

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 6–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

Note 7–Purchases and Sales of Securities (in 000’s)

During the year ended October 31, 2015, purchases and sales of securities, other than U.S. government securities and short-term securities, were $38,550 and $86,088, respectively.

Note 8–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		1,799,031		$	17,961,990
Shares issued to shareholders in reinvestment of dividends and distributions		893,305			8,785,725
Shares redeemed		(3,940,974	)		(39,369,178	)
Net increase (decrease) in shares outstanding before conversion		(1,248,638	)		(12,621,463	)
Shares converted into Class A (See Note 1)		67,815			673,223
Shares converted from Class A (See Note 1)		(211,447	)		(2,045,040	)
Net increase (decrease)		(1,392,270	)	$	(13,993,280	)
Year ended October 31, 2014:
Shares sold		3,644,311		$	42,186,523
Shares issued to shareholders in reinvestment of dividends and distributions		640,431			7,335,120
Shares redeemed		(6,025,634	)		(69,379,886	)
Net increase (decrease) in shares outstanding before conversion		(1,740,892	)		(19,858,243	)
Shares converted into Class A (See Note 1)		193,471			2,247,327
Shares converted from Class A (See Note 1)		(60,956	)		(694,285	)
Net increase (decrease)		(1,608,377	)	$	(18,305,201	)

28 MainStay Global High Income Fund

Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		232,196		$	2,336,797
Shares issued to shareholders in reinvestment of dividends and distributions		215,625			2,135,643
Shares redeemed		(453,712	)		(4,564,154	)
Net increase (decrease) in shares outstanding before conversion		(5,891	)		(91,714	)
Shares converted into Investor Class (See Note 1)		297,117			2,924,492
Shares converted from Investor Class (See Note 1)		(53,620	)		(537,370	)
Net increase (decrease)		237,606		$	2,295,408
Year ended October 31, 2014:
Shares sold		239,916		$	2,784,358
Shares issued to shareholders in reinvestment of dividends and distributions		132,561			1,528,834
Shares redeemed		(427,542	)		(4,921,196	)
Net increase (decrease) in shares outstanding before conversion		(55,065	)		(608,004	)
Shares converted into Investor Class (See Note 1)		165,726			1,915,727
Shares converted from Investor Class (See Note 1)		(158,833	)		(1,865,702	)
Net increase (decrease)		(48,172	)	$	(557,979	)
Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		108,157		$	1,065,045
Shares issued to shareholders in reinvestment of dividends and distributions		70,065			677,601
Shares redeemed		(296,341	)		(2,928,296	)
Net increase (decrease) in shares outstanding before conversion		(118,119	)		(1,185,650	)
Shares converted from Class B (See Note 1)		(103,561	)		(1,015,305	)
Net increase (decrease)		(221,680	)	$	(2,200,955	)
Year ended October 31, 2014:
Shares sold		95,319		$	1,078,510
Shares issued to shareholders in reinvestment of dividends and distributions		49,394			556,580
Shares redeemed		(269,067	)		(3,026,283	)
Net increase (decrease) in shares outstanding before conversion		(124,354	)		(1,391,193	)
Shares converted from Class B (See Note 1)		(141,633	)		(1,603,067	)
Net increase (decrease)		(265,987	)	$	(2,994,260	)

Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		480,190		$	4,783,294
Shares issued to shareholders in reinvestment of dividends and distributions		302,893			2,932,707
Shares redeemed		(1,794,067	)		(17,761,085	)
Net increase (decrease)		(1,010,984	)	$	(10,045,084	)
Year ended October 31, 2014:
Shares sold		803,844		$	9,154,739
Shares issued to shareholders in reinvestment of dividends and distributions		206,954			2,335,628
Shares redeemed		(2,038,963	)		(22,961,607	)
Net increase (decrease)		(1,028,165	)	$	(11,471,240	)
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		575,348		$	5,744,254
Shares issued to shareholders in reinvestment of dividends and distributions		107,215			1,057,131
Shares redeemed		(2,547,102	)		(25,555,857	)
Net increase (decrease)		(1,864,539	)	$	(18,754,472	)
Year ended October 31, 2014:
Shares sold		1,736,065		$	20,197,742
Shares issued to shareholders in reinvestment of dividends and distributions		65,849			755,429
Shares redeemed		(1,975,023	)		(22,594,667	)
Net increase (decrease)		(173,109	)	$	(1,641,496	)

Note 9–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

29

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Global High Income Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Global High Income Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

30 MainStay Global High Income Fund

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years. Accordingly, the Fund paid $5,079,408 as a long term capital gain distribution.

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

31

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

32 MainStay Global High Income Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

33

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

34 MainStay Global High Income Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

35

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

36 MainStay Global High Income Fund

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MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1674263 MS291-15 MSGH11-12/15 (NYLIM) NL218  

MainStay International Equity Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	14
Notes to Financial Statements	21
Report of Independent Registered Public Accounting Firm	29
Federal Income Tax Information	30
Proxy Voting Policies and Procedures and Proxy Voting Record	30
Shareholder Reports and Quarterly Portfolio Disclosure	30
Board of Trustees, Officers and Advisory Board Members	31

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

Investment and Performance Comparison¹(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–1.93 3.78	%		1.73 2.89	%		3.60 4.18	%		1.34 1.34	%
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–2.26 3.43			1.39 2.54			3.35 3.94			1.67 1.67
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–2.31 2.69			1.41 1.79			3.15 3.15			2.42 2.42
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		1.60 2.60			1.77 1.77			3.15 3.15			2.42 2.42
Class I Shares	No Sales Charge			4.04			3.13			4.54			1.09
Class R1 Shares	No Sales Charge			3.95			3.03			4.44			1.19
Class R2 Shares	No Sales Charge			3.73			2.78			4.18			1.44
Class R3 Shares4	No Sales Charge			3.44			2.52			3.89			1.69

1. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table above, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown above and reflects the deduction of all sales charges that would have applied for the periods of investment. Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations, please refer to the notes to the financial statements. Performance figures shown reflect non-recurring reimbursements from affiliates for professional fees and losses attributable to shareholder trading arrangements. If these non-recurring reimbursements had not been made the total return (excluding sales charges) would have been 4.16% for Class A, 3.12% for Class B, 3.13% for Class C, 4.52% for Class I, 4.41% for Class R1, and 4.16% for Class R2 for the ten-year period

ended October 31, 2015. Investor Class and Class R3 shares were not affected, because the reimbursement occurred prior to the launch of these share classes.

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class R3 shares, which were first offered on April 28, 2006, include the historical performance of Class B shares through April 27, 2006, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R3 shares would likely have been different.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
MSCI ACWI® Ex U.S.5		–4.68	%		2.60	%		4.16	%
MSCI EAFE® Index6		–0.07			4.81			4.05
Average Lipper International Multi-Cap Growth Fund7		0.18			4.35			4.22

5. The MSCI ACWI^® Ex U.S. 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. The Fund has selected the MSCI ACWI^® Ex U.S. as its primary benchmark. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.

6. The MSCI EAFE^® Index consists of international stocks representing the developed world outside of North America. The MSCI EAFE^® Index is the Fund’s secondary benchmark. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.

7. The Average Lipper International Multi-Cap Growth Fund is representative of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. International multi-cap growth funds typically have above-average characteristics compared to the MSCI EAFE^® Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay International Equity Fund

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

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	971.20	$	6.56	$	1,018.60	$	6.72
Investor Class Shares	$	1,000.00	$	969.80	$	8.24	$	1,016.80	$	8.44
Class B Shares	$	1,000.00	$	966.00	$	11.94	$	1,013.10	$	12.23
Class C Shares	$	1,000.00	$	965.30	$	11.94	$	1,013.10	$	12.23
Class I Shares	$	1,000.00	$	972.10	$	5.32	$	1,019.80	$	5.45
Class R1 Shares	$	1,000.00	$	971.90	$	5.82	$	1,019.30	$	5.95
Class R2 Shares	$	1,000.00	$	970.60	$	7.05	$	1,018.00	$	7.22
Class R3 Shares	$	1,000.00	$	969.10	$	8.34	$	1,016.70	$	8.54

1. Expenses are equal to the Fund’s annualized expense ratio of each class (1.32% for Class A, 1.66% for Investor Class, 2.41% for Class B and Class C, 1.07% for Class I, 1.17% for Class R1, 1.42% for Class R2 and 1.68% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Country Composition as of October 31, 2015 (Unaudited)

United Kingdom	16.0	%
United States	13.4
Germany	12.6
Japan	9.6
Switzerland	6.9
China	6.4
Ireland	5.5
Spain	5.2
Sweden	4.8
Israel	3.7
India	3.6
Denmark	1.7

France	1.6	%
Thailand	1.4
Brazil	1.0
Italy	1.0
Panama	1.0
Australia	0.6
Belgium	0.6
United Arab Emirates	0.4
Indonesia	0.0	‡
Other Assets, Less Liabilities	3.0
	100.0	%

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

‡ Less than one-tenth of a percent.

Top Ten Holdings as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. Fresenius Medical Care A.G. & Co. KGaA

2. Perrigo Co. PLC

3. Whitbread PLC

4. TE Connectivity, Ltd. Registered

5. United Internet A.G. Registered

  6. Check Point Software Technologies, Ltd.

  7. Hexagon AB Class B

  8. Wirecard A.G.

  9. CyberAgent, Inc.

10. Grifols S.A.

8 MainStay International Equity Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Edward Ramos, CFA, Carlos Garcia-Tunon, CFA, and Eve Glatt of Cornerstone Capital Management Holdings LLC, the Fund’s Subadvisor.

How did MainStay International Equity Fund perform relative to its benchmarks and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay International Equity Fund returned 3.78% for Class A shares, 3.43% for Investor Class shares, 2.69% for Class B shares and 2.60% for Class C shares for the 12 months ended October 31, 2015. Over the same period, the Fund’s Class I shares returned 4.04%, Class R1 shares returned 3.95%, Class R2 shares returned 3.73% and Class R3 shares returned 3.44%. For the 12 months ended October 31, 2015, all share classes outperformed the –4.68% return of the MSCI ACWI^® Ex U.S.¹ which is the Fund’s primary benchmark. Over the same period, all share classes outperformed the –0.07% return of the MSCI EAFE^® Index,¹ which is the Fund’s secondary benchmark. For the 12 months ended October 31, 2015, all share classes outperformed the 0.18% return of the Average Lipper² International Multi-Cap Growth Fund. See page 5 for Fund returns with sales charges.

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

The Fund’s performance relative to the MSCI ACWI^® Ex U.S. benefited from sector and country allocation and from stock selection. On a country basis, the positive effect of stock selection was driven by notable success in Germany, Japan and Spain. On a sector basis, stock selection was also positive, with information technology and materials being the largest contributors to excess return relative to the MSCI ACWI^® Ex U.S. (Contributions take weightings and total return into account.) The positive effects of sector allocation were driven by an overweight position relative to the MSCI ACWI^® Ex U.S. in health care and an underweight position in energy. The positive effects from country allocation were driven by an overweight position relative to the Index in Ireland and underweight positions in Canada and Australia.

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

The sectors that made the strongest positive contributions to the Fund’s performance relative to the MSCI ACWI^® Ex U.S. were information technology, health care and materials. Information technology and materials benefited mainly from favorable stock selection, while health care benefited from a favorable allocation effect. The Fund held overweight positions in the information technology and health care sectors, which both outperformed the MSCI ACWI^® Ex U.S. The Fund held an underweight position in the materials sector, which underperformed the Index.

The sectors that detracted the most from the Fund’s performance relative to the MSCI ACWI^® Ex U.S. were industrials, consumer staples and telecommunication services. Industrials and telecommunication services suffered from unfavorable stock-selection effects. From an allocation perspective, the Fund held an overweight position in the industrials sector, which outperformed the MSCI ACWI^® Ex U.S. The Fund held underweight positions in the consumer staples and telecommunication services sectors, both of which outperformed the Index.

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

The stocks that made the strongest positive contributions to the Fund’s absolute performance were German Internet payment and processing services company Wirecard, German Internet access provider United Internet and German kidney dialysis equipment and services company Fresenius Medical Care. All three companies outperformed the MSCI ACWI^® Ex U.S. because of strong growth and strategy execution relative to market expectations.

The most significant detractors from the Fund’s absolute performance were Panamanian airline Copa Holdings, Mexican over-the-counter pharmaceutical goods producer Genomma Lab Internacional and Brazilian health insurance and benefits provider Qualicorp. Copa Holdings underperformed because of marked weakness in select Latin American economies where the company operates. Genomma Lab Internacional underperformed after a disappointing quarterly earnings release, and we sold the position during the reporting period. Qualicorp suffered from a weakening Brazilian macro backdrop.

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

Notable purchases during the reporting period included Swiss connectivity and sensor solutions provider TE Connectivity and Japanese e-commerce company CyberAgent. Significant sales during the reporting period included German industrial gas and engineering provider Linde and U.K. temporary power and temperature control solutions company Aggreko.

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

During the reporting period, the Fund increased its exposure to the information technology and consumer discretionary sectors. Over the same period, the Fund reduced its exposure to the materials and industrials sectors.

1. See footnote on page 6 for more information on this index.

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

9

How was the Fund positioned at the end of the reporting period?

As of October 31, 2015, the Fund held overweight positions relative to the MSCI ACWI^® Ex U.S. in the information technology, health care and consumer discretionary sectors. As of the same date, the Fund held underweight positions in the financials, energy and consumer staples sectors.

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

10 MainStay International Equity Fund

Portfolio of Investments October 31, 2015

	Shares		Value
Common Stocks 96.0%†
Australia 0.6%
Gateway Lifestyle (Real Estate Management & Development) (a)		87,236	$	175,427
Veda Group, Ltd. (Professional Services)		910,446		1,701,006
				1,876,433
Belgium 0.6%
Ontex Group N.V. (Personal Products)		64,417		1,981,642
Brazil 1.0%
Qualicorp S.A. (Health Care Providers & Services)		738,805		3,103,458
China 6.4%
Baidu, Inc., Sponsored ADR (Internet Software & Services) (a)		42,587		7,983,785
Mindray Medical International, Ltd., Sponsored ADR (Health Care Equipment & Supplies)		156,831		3,760,807
NetEase, Inc., Sponsored ADR (Internet Software & Services)		63,143		9,126,058
				20,870,650
Denmark 1.7%
Novo Nordisk A/S Class B (Pharmaceuticals)		104,350		5,543,404
France 1.6%
Bureau Veritas S.A. (Professional Services)		224,867		5,086,448
Germany 12.6%
¨Fresenius Medical Care A.G. & Co. KGaA (Health Care Providers & Services)		185,176		16,675,166
¨United Internet A.G. Registered (Internet Software & Services)		252,070		13,098,559
¨Wirecard A.G. (IT Services)		215,942		11,161,840
				40,935,565
India 3.6%
Housing Development Finance Corp., Ltd. (Thrifts & Mortgage Finance)		239,170		4,594,904
Lupin, Ltd. (Pharmaceuticals)		119,164		3,517,750
Yes Bank, Ltd. (Banks)		314,665		3,638,547
				11,751,201
Indonesia 0.0%‡
Media Nusantara Citra Tbk PT (Media)		540,004		70,422
Ireland 5.5%
Experian PLC (Professional Services)		553,171		9,448,670
Paddy Power PLC (Hotels, Restaurants & Leisure)		42,476		4,913,760

	Shares		Value
Ireland (continued)
Shire PLC (Pharmaceuticals)		47,736	$	3,624,297
				17,986,727
Israel 3.7%
¨Check Point Software Technologies, Ltd. (Software) (a)		143,096		12,154,574
Italy 1.0%
DiaSorin S.p.A. (Health Care Equipment & Supplies)		72,651		3,254,747
Japan 9.6%
¨CyberAgent, Inc. (Media)		268,700		11,133,670
Start Today Co., Ltd. (Internet & Catalog Retail)		229,432		7,747,869
Sysmex Corp. (Health Care Equipment & Supplies)		122,374		7,068,425
Tsuruha Holdings, Inc. (Food & Staples Retailing)		68,288		5,444,026
				31,393,990
Panama 1.0%
Copa Holdings S.A. Class A (Airlines)		64,683		3,267,785
Spain 5.2%
Almirall S.A. (Pharmaceuticals)		179,803		3,466,039
Applus Services S.A. (Professional Services)		338,808		3,017,820
¨Grifols S.A. (Biotechnology)		225,538		10,461,185
				16,945,044
Sweden 4.8%
¨Hexagon AB Class B (Electronic Equipment, Instruments & Components)		346,418		12,034,443
Svenska Handelsbanken AB Class A (Banks)		263,985		3,590,434
				15,624,877
Switzerland 6.9%
DKSH Holding A.G. (Professional Services) (a)		55,384		3,375,877
Syngenta A.G. Registered (Chemicals)		12,772		4,300,189
¨TE Connectivity, Ltd. Registered (Electronic Equipment, Instruments & Components)		205,584		13,247,833
Tecan Group A.G. (Life Sciences Tools & Services)		11,746		1,601,862
				22,525,761
Thailand 1.4%
Kasikornbank PCL (Banks)		956,944		4,641,115
United Arab Emirates 0.4%
Al Noor Hospitals Group PLC (Health Care Providers & Services)		68,948		1,249,973

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Shares		Value
Common Stocks (continued)
United Kingdom 16.0%
Abcam PLC (Biotechnology)		349,046	$	3,233,915
ARM Holdings PLC (Semiconductors & Semiconductor Equipment)		621,542		9,821,229
HomeServe PLC (Commercial Services & Supplies)		289,180		1,800,585
Intertek Group PLC (Professional Services)		92,078		3,726,119
Jardine Lloyd Thompson Group PLC (Insurance)		42,526		621,162
Johnson Matthey PLC (Chemicals)		130,998		5,220,315
Prudential PLC (Insurance)		156,944		3,675,141
SABMiller PLC (Beverages)		168,588		10,382,811
¨Whitbread PLC (Hotels, Restaurants & Leisure)		177,771		13,609,405
				52,090,682
United States 12.4%
Accenture PLC Class A (IT Services)		64,541		6,918,795
ICON PLC (Life Sciences Tools & Services) (a)		160,640		10,260,077
¨Perrigo Co. PLC (Pharmaceuticals)		86,360		13,622,426
Samsonite International S.A. (Textiles, Apparel & Luxury Goods)		3,262,200		9,680,618
				40,481,916
Total Common Stocks (Cost $270,807,511)				312,836,414

		Principal Amount			Value
Short-Term Investment 1.0%
Repurchase Agreement 1.0%
United States 1.0%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $3,138,170 (Collateralized by a Federal Home Loan Mortgage Corp. security with a rate of 1.70% and a maturity date of 2/26/20, with a Principal Amount of $3,195,000 and a Market Value of $3,203,946) (Capital Markets)	$	3,138,170		$	3,138,170
Total Short-Term Investment (Cost $3,138,170)					3,138,170
Total Investments (Cost $273,945,681) (b)		97.0	%		315,974,584
Other Assets, Less Liabilities		3.0			9,889,117
Net Assets		100.0	%	$	325,863,701

‡ Less than one-tenth of a percent.

(a) Non-income producing security.

(b) As of October 31, 2015, cost was $275,452,014 for federal income tax purposes and net unrealized appreciation was as follows:

Gross unrealized appreciation	$	54,849,053
Gross unrealized depreciation		(14,326,483	)
Net unrealized appreciation	$	40,522,570

The following abbreviation is used in the preceding pages:

ADR —American Depositary Receipt

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Common Stocks	$	312,836,414	$	—	$	—	$	312,836,414
Short-Term Investment
Repurchase Agreement		—		3,138,170		—		3,138,170
Total Investments in Securities	$	312,836,414	$	3,138,170	$	—	$	315,974,584

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

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

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

The table below sets forth the diversification of MainStay International Equity Fund investments by industry.

Industry Diversification (Unaudited)

	Value		Percent †
Airlines	$	3,267,785		1.0	%
Banks		11,870,096		3.6
Beverages		10,382,811		3.2
Biotechnology		13,695,100		4.2
Capital Markets		3,138,170		1.0
Chemicals		9,520,504		2.9
Commercial Services & Supplies		1,800,585		0.6
Electronic Equipment, Instruments & Components		25,282,276		7.8
Food & Staples Retailing		5,444,026		1.7
Health Care Equipment & Supplies		14,083,979		4.3
Health Care Providers & Services		21,028,597		6.5
Hotels, Restaurants & Leisure		18,523,165		5.7
Insurance		4,296,303		1.3
Internet & Catalog Retail		7,747,869		2.4
Internet Software & Services		30,208,402		9.3
IT Services		18,080,635		5.5
Life Sciences Tools & Services		11,861,939		3.6
Media		11,204,092		3.4
Personal Products		1,981,642		0.6
Pharmaceuticals		29,773,916		9.1
Professional Services		26,355,940		8.1
Real Estate Management & Development		175,427		0.1
Semiconductors & Semiconductor Equipment		9,821,229		3.0
Software		12,154,574		3.7
Textiles, Apparel & Luxury Goods		9,680,618		3.0
Thrifts & Mortgage Finance		4,594,904		1.4
		315,974,584		97.0
Other Assets, Less Liabilities		9,889,117		3.0
Net Assets	$	325,863,701		100.0	%

† Percentages indicated are based on Fund net assets.

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

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $273,945,681)	$	315,974,584
Cash denominated in foreign currencies (identified cost $9,968,901)		9,715,309
Receivables:
Dividends		399,153
Fund shares sold		296,639
Other assets		32,360
Total assets		326,418,045
Liabilities
Payables:
Manager (See Note 3)		243,059
Transfer agent (See Note 3)		77,550
Investment securities purchased		67,818
Foreign capital gains tax (See Note 2(C))		58,792
NYLIFE Distributors (See Note 3)		31,730
Professional fees		25,106
Fund shares redeemed		23,797
Shareholder communication		18,727
Custodian		6,124
Trustees		783
Accrued expenses		858
Total liabilities		554,344
Net assets	$	325,863,701
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	241,670
Additional paid-in capital		369,132,252
		369,373,922
Distributions in excess of net investment income		(613,962	)
Accumulated net realized gain (loss) on investments and foreign currency transactions (a)		(84,595,586	)
Net unrealized appreciation (depreciation) on investments (b)		41,970,111
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies		(270,784	)
Net assets	$	325,863,701

(a) Realized gain (loss) on security transactions recorded net of foreign capital gains tax.

(b) Unrealized appreciation (depreciation) on investments recorded net of foreign capital gains tax in the amount of $58,792.

Class A
Net assets applicable to outstanding shares	$	43,404,695
Shares of beneficial interest outstanding		3,213,172
Net asset value per share outstanding	$	13.51
Maximum sales charge (5.50% of offering price)		0.79
Maximum offering price per share outstanding	$	14.30
Investor Class
Net assets applicable to outstanding shares	$	34,328,949
Shares of beneficial interest outstanding		2,549,449
Net asset value per share outstanding	$	13.47
Maximum sales charge (5.50% of offering price)		0.78
Maximum offering price per share outstanding	$	14.25
Class B
Net assets applicable to outstanding shares	$	8,982,170
Shares of beneficial interest outstanding		734,474
Net asset value and offering price per share outstanding	$	12.23
Class C
Net assets applicable to outstanding shares	$	8,291,927
Shares of beneficial interest outstanding		677,889
Net asset value and offering price per share outstanding	$	12.23
Class I
Net assets applicable to outstanding shares	$	224,306,645
Shares of beneficial interest outstanding		16,507,352
Net asset value and offering price per share outstanding	$	13.59
Class R1
Net assets applicable to outstanding shares	$	3,032,381
Shares of beneficial interest outstanding		224,524
Net asset value and offering price per share outstanding	$	13.51
Class R2
Net assets applicable to outstanding shares	$	2,313,123
Shares of beneficial interest outstanding		170,774
Net asset value and offering price per share outstanding	$	13.54
Class R3
Net assets applicable to outstanding shares	$	1,203,811
Shares of beneficial interest outstanding		89,319
Net asset value and offering price per share outstanding	$	13.48

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Dividends (a)	$	4,978,313
Expenses
Manager (See Note 3)		2,873,163
Transfer agent (See Note 3)		463,745
Distribution/Service—Class A (See Note 3)		113,220
Distribution/Service—Investor Class (See Note 3)		86,488
Distribution/Service—Class B (See Note 3)		101,378
Distribution/Service—Class C (See Note 3)		84,977
Distribution/Service—Class R2 (See Note 3)		7,752
Distribution/Service—Class R3 (See Note 3)		6,013
Registration		99,008
Custodian		91,671
Professional fees		83,275
Shareholder communication		34,635
Shareholder service (See Note 3)		7,656
Trustees		6,319
Miscellaneous		28,524
Total expenses		4,087,824
Net investment income (loss)		890,489
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions (b)		11,651,292
Foreign currency transactions		(644,338	)
Net realized gain (loss) on investments and foreign currency transactions		11,006,954
Net change in unrealized appreciation (depreciation) on:
Investments (c)		1,332,908
Translation of other assets and liabilities in foreign currencies		(170,818	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		1,162,090
Net realized and unrealized gain (loss) on investments and foreign currency transactions		12,169,044
Net increase (decrease) in net assets resulting from operations	$	13,059,533

(a) Dividends recorded net of foreign withholding taxes in the amount of $322,423.

(b) Realized gain (loss) on security transactions recorded net of foreign capital gains tax in the amount of $218,201.

(c) Net change in unrealized appreciation (depreciation) on investments recorded net of change in foreign capital gains tax in the amount of $(552,404).

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 years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	890,489		$	1,985,865
Net realized gain (loss) on investments and foreign currency transactions		11,006,954			18,518,940
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		1,162,090			(26,407,034	)
Net increase (decrease) in net assets resulting from operations		13,059,533			(5,902,229	)
Dividends to shareholders:
From net investment income:
Class A		(317,497	)		(104,575	)
Investor Class		(121,482	)		—
Class I		(2,065,815	)		(888,640	)
Class R1		(30,669	)		(12,291	)
Class R2		(20,968	)		(2,670	)
Class R3		(3,390	)		—
Total dividends to shareholders		(2,559,821	)		(1,008,176	)
Capital share transactions:
Net proceeds from sale of shares		64,841,375			79,283,562
Net asset value of shares issued to shareholders in reinvestment of dividends		2,539,275			998,817
Cost of shares redeemed		(83,909,814	)		(77,096,545	)
Increase (decrease) in net assets derived from capital share transactions		(16,529,164	)		3,185,834
Net increase (decrease) in net assets		(6,029,452	)		(3,724,571	)
Net Assets
Beginning of year		331,893,153			335,617,724
End of year	$	325,863,701		$	331,893,153
Undistributed (distributions in excess of) net investment income at end of year	$	(613,962	)	$	1,077,408

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	13.11		$	13.37		$	11.68		$	10.82		$	12.66
Net investment income (loss) (a)		0.03			0.07			0.05			0.10			0.26
Net realized and unrealized gain (loss) on investments		0.49			(0.26	)		1.75			1.07			(1.63	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.03	)		(0.04	)		(0.01	)		0.00	‡		(0.09	)
Total from investment operations		0.49			(0.23	)		1.79			1.17			(1.46	)
Less dividends:
From net investment income		(0.09	)		(0.03	)		(0.10	)		(0.31	)		(0.38	)
Net asset value at end of year	$	13.51		$	13.11		$	13.37		$	11.68		$	10.82
Total investment return (b)		3.78	%		(1.76	%)		15.43	%		11.27	%		(11.96	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.20	%		0.51	%		0.38	%		0.87	%		2.11	%
Net expenses		1.33	%		1.34	%		1.40	%		1.43	%		1.46	%
Portfolio turnover rate		42	%		37	%		29	%		43	%		80	%
Net assets at end of year (in 000’s)	$	43,405		$	45,882		$	57,948		$	60,303		$	72,699

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	13.07		$	13.35		$	11.66		$	10.81		$	12.66
Net investment income (loss) (a)		(0.02	)		0.03			0.01			0.06			0.21
Net realized and unrealized gain (loss) on investments		0.50			(0.27	)		1.75			1.07			(1.62	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.03	)		(0.04	)		(0.01	)		0.00	‡		(0.09	)
Total from investment operations		0.45			(0.28	)		1.75			1.13			(1.50	)
Less dividends:
From net investment income		(0.05	)		—			(0.06	)		(0.28	)		(0.35	)
Net asset value at end of year	$	13.47		$	13.07		$	13.35		$	11.66		$	10.81
Total investment return (b)		3.43	%		(2.10	%)		15.07	%		10.81	%		(12.19	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.14	%)		0.19	%		0.05	%		0.54	%		1.77	%
Net expenses		1.68	%		1.67	%		1.72	%		1.77	%		1.71	%
Portfolio turnover rate		42	%		37	%		29	%		43	%		80	%
Net assets at end of year (in 000’s)	$	34,329		$	34,377		$	37,457		$	34,822		$	34,895

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.91		$	12.26		$	10.73		$	9.95		$	11.67
Net investment income (loss) (a)		(0.11	)		(0.07	)		(0.08	)		(0.02	)		0.11
Net realized and unrealized gain (loss) on investments		0.46			(0.24	)		1.62			0.99			(1.49	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.03	)		(0.04	)		(0.01	)		0.00	‡		(0.08	)
Total from investment operations		0.32			(0.35	)		1.53			0.97			(1.46	)
Less dividends:
From net investment income		—			—			—			(0.19	)		(0.26	)
Net asset value at end of year	$	12.23		$	11.91		$	12.26		$	10.73		$	9.95
Total investment return (b)		2.69	%		(2.85	%)		14.26	% (c)		10.05	%		(12.81	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.91	%)		(0.57	%)		(0.73	%)		(0.22	%)		1.02	%
Net expenses		2.43	%		2.42	%		2.47	%		2.52	%		2.46	%
Portfolio turnover rate		42	%		37	%		29	%		43	%		80	%
Net assets at end of year (in 000’s)	$	8,982		$	11,058		$	13,981		$	16,186		$	20,509

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

(c) Total investment return may reflect adjustments to conform to generally accepted accounting principles.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.92		$	12.26		$	10.74		$	9.96		$	11.68
Net investment income (loss) (a)		(0.11	)		(0.07	)		(0.08	)		(0.02	)		0.12
Net realized and unrealized gain (loss) on investments		0.45			(0.24	)		1.61			0.99			(1.50	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.03	)		(0.03	)		(0.01	)		0.00	‡		(0.08	)
Total from investment operations		0.31			(0.34	)		1.52			0.97			(1.46	)
Less dividends:
From net investment income		—			—			—			(0.19	)		(0.26	)
Net asset value at end of year	$	12.23		$	11.92		$	12.26		$	10.74		$	9.96
Total investment return (b)		2.60	%		(2.77	%)		14.15	%		10.05	%		(12.88	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.90	%)		(0.57	%)		(0.71	%)		(0.21	%)		1.07	%
Net expenses		2.43	%		2.42	%		2.47	%		2.52	%		2.46	%
Portfolio turnover rate		42	%		37	%		29	%		43	%		80	%
Net assets at end of year (in 000’s)	$	8,292		$	8,383		$	10,088		$	11,111		$	12,960

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	13.19		$	13.45		$	11.75		$	10.89		$	12.75
Net investment income (loss) (a)		0.06			0.11			0.08			0.13			0.26
Net realized and unrealized gain (loss) on investments		0.50			(0.27	)		1.76			1.07			(1.62	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.03	)		(0.04	)		(0.01	)		0.00	‡		(0.09	)
Total from investment operations		0.53			(0.20	)		1.83			1.20			(1.45	)
Less dividends:
From net investment income		(0.13	)		(0.06	)		(0.13	)		(0.34	)		(0.41	)
Net asset value at end of year	$	13.59		$	13.19		$	13.45		$	11.75		$	10.89
Total investment return (b)		4.04	%		(1.49	%)		15.72	%		11.45	%		(11.73	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.46	%		0.79	%		0.62	%		1.15	%		2.16	%
Net expenses		1.08	%		1.09	%		1.14	%		1.18	%		1.21	%
Portfolio turnover rate		42	%		37	%		29	%		43	%		80	%
Net assets at end of year (in 000’s)	$	224,307		$	223,797		$	202,289		$	177,726		$	184,373

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(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.

	Year ended October 31,
Class R1	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	13.11		$	13.37		$	11.67		$	10.82		$	12.67
Net investment income (loss) (a)		0.04			0.09			0.06			0.11			0.26
Net realized and unrealized gain (loss) on investments		0.50			(0.27	)		1.76			1.07			(1.62	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.03	)		(0.04	)		(0.01	)		0.00	‡		(0.09	)
Total from investment operations		0.51			(0.22	)		1.81			1.18			(1.45	)
Less dividends:
From net investment income		(0.11	)		(0.04	)		(0.11	)		(0.33	)		(0.40	)
Net asset value at end of year	$	13.51		$	13.11		$	13.37		$	11.67		$	10.82
Total investment return (b)		3.95	%		(1.63	%)		15.68	%		11.41	%		(11.89	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.33	%		0.66	%		0.49	%		1.04	%		2.12	%
Net expenses		1.18	%		1.19	%		1.25	%		1.28	%		1.31	%
Portfolio turnover rate		42	%		37	%		29	%		43	%		80	%
Net assets at end of year (in 000’s)	$	3,032		$	3,597		$	4,003		$	4,677		$	4,760

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R1 shares are not subject to sales charges.

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

	Year ended October 31,
Class R2	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	13.14		$	13.40		$	11.70		$	10.84		$	12.69
Net investment income (loss) (a)		0.01			0.05			0.03			0.09			0.24
Net realized and unrealized gain (loss) on investments		0.50			(0.26	)		1.76			1.06			(1.63	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.03	)		(0.04	)		(0.01	)		0.00	‡		(0.09	)
Total from investment operations		0.48			(0.25	)		1.78			1.15			(1.48	)
Less dividends:
From net investment income		(0.08	)		(0.01	)		(0.08	)		(0.29	)		(0.37	)
Net asset value at end of year	$	13.54		$	13.14		$	13.40		$	11.70		$	10.84
Total investment return (b)		3.73	%		(1.88	%)		15.34	%		11.12	%		(12.09	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.11	%		0.36	%		0.26	%		0.82	%		2.02	%
Net expenses		1.43	%		1.44	%		1.49	%		1.53	%		1.55	%
Portfolio turnover rate		42	%		37	%		29	%		43	%		80	%
Net assets at end of year (in 000’s)	$	2,313		$	3,509		$	8,487		$	10,545		$	12,176

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.

	Year ended October 31,
Class R3	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	13.07		$	13.35		$	11.64		$	10.79		$	12.64
Net investment income (loss) (a)		(0.02	)		0.02			(0.01	)		0.06			0.24
Net realized and unrealized gain (loss) on investments		0.50			(0.26	)		1.76			1.06			(1.65	)
Net realized and unrealized gain (loss) on foreign currency transactions		(0.03	)		(0.04	)		(0.01	)		0.00	‡		(0.09	)
Total from investment operations		0.45			(0.28	)		1.74			1.12			(1.50	)
Less dividends:
From net investment income		(0.04	)		—			(0.03	)		(0.27	)		(0.35	)
Net asset value at end of year	$	13.48		$	13.07		$	13.35		$	11.64		$	10.79
Total investment return (b)		3.44	%		(2.10	%)		15.02	%		10.82	%		(12.28	%)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.15	%)		0.17	%		(0.05	%)		0.56	%		1.98	%
Net expenses		1.68	%		1.69	%		1.74	%		1.78	%		1.80	%
Portfolio turnover rate		42	%		37	%		29	%		43	%		80	%
Net assets at end of year (in 000’s)	$	1,204		$	1,291		$	1,365		$	2,218		$	1,592

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.

20 MainStay International Equity Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay 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 currently offers eight classes of shares. Class A shares commenced operations on January 3, 1995. Class B shares commenced operations on September 13, 1994. Class C shares commenced operations on September 1, 1998. Class I, Class R1 and Class R2 shares commenced operations on January 2, 2004. Class R3 shares commenced operations on April 28, 2006. Investor Class shares commenced operations on February 28, 2008. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 R1, Class R2 and Class R3 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The eight classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A, Investor Class, Class R2 and Class R3 shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I and Class R1 shares are not subject to a distribution and/or service fee. Class R1, Class R2 and Class R3 shares are subject to a shareholder service fee. This is in addition to any fees paid under a distribution plan, where applicable.

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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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

21

Notes to Financial Statements (continued)

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 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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	•    Reported trades
•    Two-sided markets	•    Issuer spreads
•    Bids/offers	•    Benchmark securities
•    Industry and economic events	•    Reference data (corporate actions or material event notices)
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities for which

market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, there were no securities held by the Fund that were fair valued in such a manner.

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 NAV is calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisor conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Sub-Committee may, pursuant to procedures adopted by the Board, 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 valuation procedures adopted by the Board and are generally categorized as Level 2 in the hierarchy. As of October 31, 2015, no foreign equity securities held by the Fund were fair valued in such a manner.

Equity securities and Exchange-Traded Funds 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. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired 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. Other temporary cash investments which 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. These securities are generally categorized as Level 2 in the hierarchy.

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

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund

22 MainStay International Equity Fund

within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C)  Foreign Taxes.  The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which they invest. A portion of the taxes on gains on investments or currency purchases/repatriation may be recoverable. The Fund will accrue such taxes and recoveries 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 on 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 during the year ended October 31, 2015, 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 the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(E)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. 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. Discounts and

premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

(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.

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

(H)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(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

23

Notes to Financial Statements (continued)

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

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

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

(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. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

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

(L)  Indemnifications.  Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-

party service providers that contain a variety of representations and warranties and which 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. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.

Note 3–Fees and Related Party Transactions

(A)  Manager and Subadvisor.  New York Life 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 a portion of the compensation of the Chief Compliance Officer of the Fund. Cornerstone Capital Management Holdings LLC (“Cornerstone Holdings” or “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and Cornerstone Holdings, New York Life Investments pays for the services of the Subadvisor.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.89% up to $500 million and 0.85% in excess of $500 million.

During the year ended October 31, 2015, the effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.89%.

New York Life Investments has voluntarily agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.85%; Class B, 2.60%; and Class C, 2.60%. These voluntary waivers or reimbursements may be discontinued at any time. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $2,873,163.

State Street 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

24 MainStay International Equity Fund

providing these services to the Fund, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly distribution 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, the Distributor receives a monthly distribution and/or service fee from the Class R3 shares at an annual rate of 0.50% of the average daily net assets of the Class R3 shares. Class I and Class R1 shares are not subject to a distribution 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 a distribution plan, where applicable.

During the year ended October 31, 2015, shareholder service fees incurred by the Fund were as follows:

Class R1	$	3,352
Class R2		3,101
Class R3		1,203

(C)  Sales Charges.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $3,675 and $4,781, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares of $1,208, $71, $11,832 and $1,708, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	39,203
Investor Class		149,922
Class B		43,946
Class C		36,828
Class I		187,185
Class R1		2,912
Class R2		2,709
Class R3		1,040

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

(F)  Capital.  As of October 31, 2015, New York Life and its affiliates beneficially held shares of the Fund with values and percentages of net assets as follows:

Class I $ 78,395,013 34.9 % 

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)			Other Temporary Differences			Unrealized Appreciation (Depreciation)		Total Accumulated Gain (Loss)
$680,143	$	(84,367,024	)	$	(16,323	)	$	40,192,983	$	(43,510,221	)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments and Passive Foreign Investment Company (PFIC) adjustments. The other temporary differences are primarily due to foreign taxes payable.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments		Additional Paid-In Capital
$(22,038)	$	22,038	$	—

25

Notes to Financial Statements (continued)

The reclassifications for the Fund are primarily due to foreign currency transactions and PFIC adjustments.

Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

As of October 31, 2015, for federal income tax purposes, capital loss carryforwards of $84,367,024 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss Available Through	Short-Term Capital Loss Amounts (000’s)		Long-Term Capital Loss Amounts (000’s)
2017 2019	$	48,774 35,593	$	— —
Total	$	84,367	$	—

The Fund utilized $10,984,376 of capital loss carryforwards during the year ended October 31, 2015.

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	2,559,821	$	1,008,176

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 6–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the

syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

Note 7–Purchases and Sales of Securities (in 000’s)

During the year ended October 31, 2015, purchases and sales of securities, other than short-term securities, were $131,902 and $149,978, respectively.

Note 8–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		302,518		$	4,092,444
Shares issued to shareholders in reinvestment of dividends and distributions		23,755			309,772
Shares redeemed		(624,933	)		(8,392,693	)
Net increase (decrease) in shares outstanding before conversion		(298,660	)		(3,990,477	)
Shares converted into Class A (See Note 1)		74,760			1,029,344
Shares converted from Class A (See Note 1)		(63,497	)		(819,811	)
Net increase (decrease)		(287,397	)	$	(3,780,944	)
Year ended October 31, 2014:
Shares sold		333,842		$	4,534,407
Shares issued to shareholders in reinvestment of dividends and distributions		7,789			102,186
Shares redeemed		(1,259,277	)		(17,083,099	)
Net increase (decrease) in shares outstanding before conversion		(917,646	)		(12,446,506	)
Shares converted into Class A (See Note 1)		125,799			1,750,074
Shares converted from Class A (See Note 1)		(41,472	)		(552,930	)
Net increase (decrease)		(833,319	)	$	(11,249,362	)

26 MainStay International Equity Fund

Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		195,518		$	2,668,808
Shares issued to shareholders in reinvestment of dividends and distributions		9,279			120,881
Shares redeemed		(400,764	)		(5,396,160	)
Net increase (decrease) in shares outstanding before conversion		(195,967	)		(2,606,471	)
Shares converted into Investor Class (See Note 1)		176,655			2,322,611
Shares converted from Investor Class (See Note 1)		(62,066	)		(856,812	)
Net increase (decrease)		(81,378	)	$	(1,140,672	)
Year ended October 31, 2014:
Shares sold		157,861		$	2,131,298
Shares redeemed		(378,682	)		(5,130,261	)
Net increase (decrease) in shares outstanding before conversion		(220,821	)		(2,998,963	)
Shares converted into Investor Class (See Note 1)		150,088			2,033,419
Shares converted from Investor Class (See Note 1)		(104,408	)		(1,455,940	)
Net increase (decrease)		(175,141	)	$	(2,421,484	)
Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		108,404		$	1,336,817
Shares redeemed		(164,147	)		(2,014,384	)
Net increase (decrease) in shares outstanding before conversion		(55,743	)		(677,567	)
Shares converted from Class B (See Note 1)		(138,057	)		(1,675,332	)
Net increase (decrease)		(193,800	)	$	(2,352,899	)
Year ended October 31, 2014:
Shares sold		123,984		$	1,532,021
Shares redeemed		(193,820	)		(2,400,177	)
Net increase (decrease) in shares outstanding before conversion		(69,836	)		(868,156	)
Shares converted from Class B (See Note 1)		(142,136	)		(1,774,623	)
Net increase (decrease)		(211,972	)	$	(2,642,779	)
Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		135,870		$	1,677,175
Shares redeemed		(161,511	)		(1,962,676	)
Net increase (decrease)		(25,641	)	$	(285,501	)
Year ended October 31, 2014:
Shares sold		57,318		$	716,501
Shares redeemed		(176,338	)		(2,169,550	)
Net increase (decrease)		(119,020	)	$	(1,453,049	)

Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		4,094,035		$	54,177,807
Shares issued to shareholders in reinvestment of dividends and distributions		157,158			2,057,192
Shares redeemed		(4,713,469	)		(63,115,495	)
Net increase (decrease)		(462,276	)	$	(6,880,496	)
Year ended October 31, 2014:
Shares sold		5,078,358		$	69,369,377
Shares issued to shareholders in reinvestment of dividends and distributions		66,917			881,964
Shares redeemed		(3,210,212	)		(44,019,660	)
Net increase (decrease)		1,935,063		$	26,231,681
Class R1	Shares			Amount
Year ended October 31, 2015:
Shares sold		5,528		$	73,763
Shares issued to shareholders in reinvestment of dividends and distributions		2,356			30,669
Shares redeemed		(57,830	)		(764,078	)
Net increase (decrease)		(49,946	)	$	(659,646	)
Year ended October 31, 2014:
Shares sold		8,640		$	118,132
Shares issued to shareholders in reinvestment of dividends and distributions		937			12,291
Shares redeemed		(34,533	)		(467,134	)
Net increase (decrease)		(24,956	)	$	(336,711	)
Class R2	Shares			Amount
Year ended October 31, 2015:
Shares sold		42,772		$	579,450
Shares issued to shareholders in reinvestment of dividends and distributions		1,329			17,371
Shares redeemed		(140,321	)		(1,905,460	)
Net increase (decrease)		(96,220	)	$	(1,308,639	)
Year ended October 31, 2014:
Shares sold		46,985		$	638,666
Shares issued to shareholders in reinvestment of dividends and distributions		180			2,376
Shares redeemed		(413,545	)		(5,539,777	)
Net increase (decrease)		(366,380	)	$	(4,898,735	)
Class R3	Shares			Amount
Year ended October 31, 2015:
Shares sold		17,470		$	235,111
Shares issued to shareholders in reinvestment of dividends and distributions		260			3,390
Shares redeemed		(27,157	)		(358,868	)
Net increase (decrease)		(9,427	)	$	(120,367	)
Year ended October 31, 2014:
Shares sold		17,913		$	243,160
Shares redeemed		(21,386	)		(286,887	)
Net increase (decrease)		(3,473	)	$	(43,727	)

27

Notes to Financial Statements (continued)

Note 9–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

28 MainStay International Equity Fund

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay International Equity Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay International Equity Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

29

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years.

For the fiscal year ended October 31, 2015, the Fund designated approximately $3,085,842 under the Internal Revenue Code as qualified dividend income eligible for reduced tax rates.

The dividends paid by the Fund during the fiscal year ended October 31, 2015, should be multiplied by 2.9% to arrive at the amount eligible for the corporate dividends received deduction.

In accordance with federal tax law, the Fund elects to provide each shareholder with their portion of the Fund’s foreign taxes paid and the income sourced from foreign countries. Accordingly, the Fund made the following designations regarding its fiscal year ended October 31, 2015:

• the total amount of taxes paid to foreign countries was $526,021

• the total amount of income sourced from foreign countries was $5,300,655

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

30 MainStay International Equity Fund

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

31

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

32 MainStay International Equity Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

33

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

34 MainStay International Equity Fund

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

35

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MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673147 MS291-15 MSIE11-12/15 (NYLIM) NL213

MainStay Common Stock Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	15
Notes to Financial Statements	21
Report of Independent Registered Public Accounting Firm	28
Federal Income Tax Information	29
Proxy Voting Policies and Procedures and Proxy Voting Record	29
Shareholder Reports and Quarterly Portfolio Disclosure	29
Board of Trustees, Officers and Advisory Board Members	30

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

Investment and Performance Comparison^1(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–0.82 4.95	%		13.41 14.70	%		6.26 6.86	%		1.03 1.03	%
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–0.99 4.77			12.97 14.26			5.91 6.51			1.31 1.31
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–0.99 4.01			13.17 13.42			5.71 5.71			2.06 2.06
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		3.01 4.01			13.40 13.40			5.71 5.71			2.06 2.06
Class I Shares	No Sales Charge			5.26			15.00			7.25			0.78
Class R2 Shares4	No Sales Charge			4.85			14.59			6.15			1.13

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for the Investor Class shares would likely have been different.

4. Performance figures for Class R2 shares, first offered on December 14, 2007, include the historical performance of Class A shares through October 31, 2015, adjusted for differences in certain fees and expenses. Unadjusted, the performance shown for Class R2 shares would likely have been different. As of October 31, 2015, Class R2 shares had yet to commence investment operations.

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

5

Benchmark Performance	One Year		Five Years		Ten Years
S&P 500® Index5		5.20%		14.33%		7.85	%
Russell 1000® Index6		4.86		14.32		7.98
Average Lipper Multi-Cap Core Fund7		2.31		12.09		6.87

5. “S&P 500^®” is a trademark of the McGraw-Hill Companies, Inc. The S&P 500^® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500^® Index is the Fund’s broad-based securities market index for comparison purposes. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

6. The Russell 1000^® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000^® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000^® Index is the Fund’s secondary benchmark. Results assume

reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

7. The Average Lipper Multi-Cap Core Fund is representative of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. These funds typically have average characteristics compared to the S&P Super Composite 1500 Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay Common Stock Fund

Cost in Dollars of a $1,000 Investment in MainStay Common Stock Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	1,007.50	$	4.81	$	1,020.40	$	4.84
Investor Class Shares	$	1,000.00	$	1,006.50	$	6.02	$	1,019.20	$	6.06
Class B Shares	$	1,000.00	$	1,002.70	$	9.79	$	1,015.40	$	9.86
Class C Shares	$	1,000.00	$	1,002.70	$	9.79	$	1,015.40	$	9.86
Class I Shares	$	1,000.00	$	1,009.00	$	3.54	$	1,021.70	$	3.57

1. Expenses are equal to the Fund’s annualized expense ratio of each class (0.95% for Class A, 1.19% for Investor Class, 1.94% for Class B and Class C and 0.70% for Class I) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. See page 5 for more information on Class R2 shares.

7

Industry Composition as of October 31, 2015 (Unaudited)

Banks	6.1	%
Insurance	5.8
IT Services	5.8
Oil, Gas & Consumable Fuels	5.8
Health Care Providers & Services	5.5
Pharmaceuticals	4.6
Software	4.6
Technology Hardware, Storage & Peripherals	4.4
Internet Software & Services	4.0
Biotechnology	3.9
Internet & Catalog Retail	3.6
Specialty Retail	3.4
Aerospace & Defense	3.1
Diversified Telecommunication Services	2.6
Food Products	2.5
Hotels, Restaurants & Leisure	2.5
Semiconductors & Semiconductor Equipment	2.5
Airlines	2.4
Beverages	2.4
Media	2.3
Capital Markets	1.8
Tobacco	1.8
Communications Equipment	1.6
Multiline Retail	1.4
Food & Staples Retailing	1.3
Chemicals	1.1
Containers & Packaging	1.1
Health Care Equipment & Supplies	1.0

Electronic Equipment, Instruments & Components	0.9	%
Household Products	0.9
Industrial Conglomerates	0.9
Diversified Financial Services	0.8
Auto Components	0.7
Commercial Services & Supplies	0.7
Electric Utilities	0.7
Household Durables	0.7
Machinery	0.7
Real Estate Investment Trusts	0.6
Consumer Finance	0.5
Diversified Consumer Services	0.4
Energy Equipment & Services	0.4
Textiles, Apparel & Luxury Goods	0.4
Construction & Engineering	0.3
Multi-Utilities	0.3
Thrifts & Mortgage Finance	0.3
Exchange-Traded Fund	0.2
Leisure Products	0.2
Air Freight & Logistics	0.1
Electrical Equipment	0.1
Metals & Mining	0.1
Real Estate Management & Development	0.1
Automobiles	0.0	‡
Trading Companies & Distributors	0.0	‡
Short-Term Investment	0.1
Other Assets, Less Liabilities	–0.0	‡
	100.0	%

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

‡ Less than one-tenth of a percent.

Top Ten Holdings or Issuers as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. Apple, Inc.

2. Microsoft Corp.

3. Exxon Mobil Corp.

4. Alphabet, Inc. (Google)

5. Amazon.com, Inc.

  6. JPMorgan Chase & Co.

  7. Johnson & Johnson

  8. Verizon Communications, Inc.

  9. Gilead Sciences, Inc.

10. Bank of America Corp.

8 MainStay Common Stock Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by Migene Kim, CFA, Andrew Ver Planck, CFA, and Mona Patni of Cornerstone Capital Management Holdings LLC, the Fund’s Subadvisor.

How did MainStay Common Stock Fund perform relative to its benchmarks and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay Common Stock Fund returned 4.95% for Class A shares, 4.77% for Investor Class shares and 4.01% for Class B and Class C shares for the 12 months ended October 31, 2015. Over the same period, the Fund’s Class I shares returned 5.26% and Class R2 shares¹ returned 4.85%. For the 12 months ended October 31, 2015, Class I shares outperformed—and all other share classes underperformed—the 5.20% return of the S&P 500^® Index,² which is the Fund’s primary benchmark. Over the same period, Class A shares and Class I shares outperformed—and all other share classes underperformed—the 4.86% return of the Russell 1000^® Index,² which is the Fund’s secondary benchmark. For the 12 months ended October 31, 2015, all share classes outperformed the 2.31% return of the Average Lipper³ Multi-Cap Core Fund. See page 5 for Fund returns with applicable sales charges.

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

The prospect of a Federal Reserve move to raise the federal funds target rate weighed on the performance of high-yielding stocks that are regarded as bond proxies. Utilities and real estate investment trusts (“REITs”), in particular, significantly underperformed the S&P 500^® Index during the reporting period. The Fund’s underweight exposure to these stocks made a positive contribution to relative performance. Depressed oil prices presented severe headwinds in the energy sector. This was beneficial to the Fund’s performance relative to the S&P 500^® Index, as the Fund generally remained underweight in the energy sector; and it was underweight among upstream energy stocks, which tend to be more sensitive to crude oil prices. Our process noted the underperformance of energy and materials stocks through our momentum factors, although this was of limited benefit in a long-only strategy where we could only attempt to avoid—but could not short—stocks with poor momentum scores. As a result, our momentum factors helped relative performance, but only modestly. The Fund was overweight in metals stocks during the reporting period, which detracted from the Fund’s performance, as metals prices dropped to multiyear lows on weakened demand from China.

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

The strongest positive sector contributions to the Fund’s performance relative to the S&P 500^® Index came from energy, industrials and health care. (Contributions take weightings and

total returns into account.) In each of these sectors, stock selection was the main performance driver. The weakest sector contributions to the Fund’s relative performance came from materials, consumer staples and information technology. Unfavorable stock selection was the primary reason in all three sectors. Some of the negative sector contribution, however, was offset by positive allocation effects from an overweight position relative to the S&P 500^® Index in information technology.

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

During the reporting period, the strongest positive contributor to absolute performance was consumer electronics and computer company Apple. The Fund held an overweight position relative to the S&P 500^® Index in the stock. Despite growth concerns for the company’s iPhone line of smartphones and volatile currency effects, Apple delivered steady financial results. The Fund also held a substantial position in online retailer Amazon.com. The company saw its share price climb as it continued to post strong top- and bottom-line growth. Amazon.com enjoyed margin and market-share advantages from its global scale and technology platform and managed to capitalize on cloud-computing and online-advertising trends. The Fund held a large position in software company Microsoft. The company’s shares appreciated during the reporting period as Microsoft delivered improved gross and operating margins.

The most significant detractors from the Fund’s absolute performance during the reporting period were semiconductor device manufacturer Micron, IT services company IBM and oil & gas exploration & production company ConocoPhillips. Micron’s share performance was hurt by weak personal computer demand, which put downward pressure on DRAM prices. IBM reported weak top- and bottom-line results as it struggled with a difficult multiyear turnaround effort. ConocoPhillips, one of the largest upstream energy companies, saw its share price decline as oil prices remained depressed.

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

The Fund steadily increased its position in online retail company Amazon.com throughout the reporting period, moving from a significantly underweight position to an overweight position relative to the S&P 500^® Index. By the end of the reporting period, the position was as overweight as our process would allow. The purchases were driven by Amazon.com’s improved momentum and sentiment scores. The Fund started to purchase

1. See footnote on page 5 for more information on Class R2 shares.

2. See footnote on page 6 for more information on this index.

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

9

shares of tobacco company Reynolds American in June 2015; and by the end of the reporting period, we had built the position to the maximum overweight our process would allow. Improved sentiment, momentum and credit quality readings were responsible for the return prospect perceived by our model.

The Fund sold large quantities of IBM starting in February 2015. During the reporting period, the Fund moved from a substantially overweight position to a neutral weighting relative to the S&P 500^® Index. IBM reported a string of disappointing quarterly results in 2015, which were reflected in its poor earnings quality, sentiment and momentum scores. The Fund started to sell shares of global construction and mining equipment company Caterpillar during the first quarter of 2015. We completely exited the initially overweight position by September. Caterpillar’s share price suffered from a decline in the mining industry, as sharp declines in global commodity prices weighed on mining companies’ profitability. This caused many mining companies to delay equipment rebuilds and new equipment purchases. Caterpillar’s exposure to emerging markets and a weakening global growth outlook also hurt the company’s financial results, which manifested as weak valuation, momentum and sentiment readings in our model.

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

The Fund saw its most substantial sector-weighting increase in the consumer discretionary sector. During the reporting period, the Fund moved from an underweight position relative to the

S&P 500^® Index to a substantially overweight position in the sector. The increase resulted from purchases of Internet retail and media stocks. Share purchases of data processing and systems software companies increased the degree to which the Fund was overweight in the information technology sector. The Fund also reduced the degree to which it was underweight relative to the S&P 500^® Index in the financials sector, most notably through investments in commercial banks and insurance companies.

The Fund’s largest sector-weighting decrease was in the telecommunication services sector, as we moved from an overweight position relative to the S&P 500^® Index to a neutral position. The Fund also sold shares of some oil & gas drillers and oil field service companies, which caused its exposure to energy stocks to go from a slightly overweight position relative to the S&P 500^® Index to an underweight position. Finally, we decreased the Fund’s overweight exposure to the health care sector to a modest one, driven by sales of stocks in the pharmaceuticals industry.

How was the Fund positioned at the end of the reporting period?

As of October 31, 2015, the Fund’s most substantially overweight sectors relative to the S&P 500^® Index were information technology, consumer discretionary and health care. As of the same date, the Fund held underweight positions relative to the Index in utilities, industrials and energy.

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

10 MainStay Common Stock Fund

Portfolio of Investments October 31, 2015

	Shares		Value
Common Stocks 99.7%†
Aerospace & Defense 3.1%
Boeing Co. (The)		14,921	$	2,209,352
General Dynamics Corp.		11,134		1,654,290
Huntington Ingalls Industries, Inc.		11,461		1,374,632
Orbital ATK, Inc.		8,167		699,259
Textron, Inc.		5,984		252,345
				6,189,878
Air Freight & Logistics 0.1%
United Parcel Service, Inc. Class B		1,037		106,832
Airlines 2.4%
Alaska Air Group, Inc.		13,944		1,063,230
Delta Air Lines, Inc.		17,733		901,546
JetBlue Airways Corp. (a)		48,859		1,213,657
United Continental Holdings, Inc. (a)		25,931		1,563,899
				4,742,332
Auto Components 0.7%
Goodyear Tire & Rubber Co. (The)		43,092		1,415,141
Automobiles 0.0%‡
Ford Motor Co.		381		5,643
Banks 6.1%
¨Bank of America Corp.		182,603		3,064,078
Citigroup, Inc.		55,292		2,939,876
Comerica, Inc.		986		42,792
¨JPMorgan Chase & Co.		59,980		3,853,715
SunTrust Banks, Inc.		201		8,346
Wells Fargo & Co.		42,870		2,320,982
				12,229,789
Beverages 2.4%
Coca-Cola Co. (The)		12,708		538,184
Coca-Cola Enterprises, Inc.		27,356		1,404,457
PepsiCo., Inc.		27,637		2,824,225
				4,766,866
Biotechnology 3.9%
AbbVie, Inc.		8,798		523,921
Amgen, Inc.		15,975		2,526,925
Baxalta, Inc.		5,883		202,728
Biogen, Inc. (a)		860		249,839
Celgene Corp. (a)		1,085		133,140
¨Gilead Sciences, Inc.		28,354		3,065,918
United Therapeutics Corp. (a)		7,458		1,093,567
				7,796,038

	Shares		Value
Capital Markets 1.8%
Ameriprise Financial, Inc.		2,601	$	300,051
Bank of New York Mellon Corp. (The)		42,966		1,789,534
E*TRADE Financial Corp. (a)		28,333		807,774
Legg Mason, Inc.		1,463		65,469
State Street Corp.		9,493		655,017
				3,617,845
Chemicals 1.1%
LyondellBasell Industries N.V. Class A		18,082		1,679,999
Mosaic Co. (The)		13,203		446,129
				2,126,128
Commercial Services & Supplies 0.7%
Waste Management, Inc.		27,640		1,485,926
Communications Equipment 1.6%
Cisco Systems, Inc.		83,398		2,406,032
Juniper Networks, Inc.		25,660		805,468
				3,211,500
Construction & Engineering 0.3%
Jacobs Engineering Group, Inc. (a)		16,086		645,692
Consumer Finance 0.5%
American Express Co.		8,222		602,344
Discover Financial Services		7,151		402,029
				1,004,373
Containers & Packaging 1.1%
Avery Dennison Corp.		11,651		756,966
Sealed Air Corp.		27,936		1,372,216
				2,129,182
Diversified Consumer Services 0.4%
H&R Block, Inc.		19,218		716,063
Diversified Financial Services 0.8%
Berkshire Hathaway, Inc. Class B (a)		11,107		1,510,774
Diversified Telecommunication Services 2.6%
AT&T, Inc.		58,063		1,945,691
¨Verizon Communications, Inc.		67,705		3,174,011
				5,119,702
Electric Utilities 0.7%
Exelon Corp.		49,846		1,391,700
Electrical Equipment 0.1%
Emerson Electric Co.		1,014		47,891
Rockwell Automation, Inc.		1,432		156,317
				204,208

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings or issuers, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Shares		Value
Common Stocks (continued)
Electronic Equipment, Instruments & Components 0.9%
Ingram Micro, Inc. Class A		21,793	$	648,995
Jabil Circuit, Inc.		54,267		1,247,056
				1,896,051
Energy Equipment & Services 0.4%
Schlumberger, Ltd.		10,990		858,978
Food & Staples Retailing 1.3%
CVS Health Corp.		13,863		1,369,387
Kroger Co. (The)		12,559		474,730
Wal-Mart Stores, Inc.		14,400		824,256
				2,668,373
Food Products 2.5%
Archer-Daniels-Midland Co.		34,749		1,586,639
Hormel Foods Corp.		16,901		1,141,663
Ingredion, Inc.		4,016		381,761
Post Holdings, Inc. (a)		11,074		711,726
Tyson Foods, Inc. Class A		25,443		1,128,651
				4,950,440
Health Care Equipment & Supplies 1.0%
Baxter International, Inc.		5,903		220,713
C.R. Bard, Inc.		5,896		1,098,720
Varian Medical Systems, Inc. (a)		8,951		702,922
				2,022,355
Health Care Providers & Services 5.5%
Aetna, Inc.		9,344		1,072,505
AmerisourceBergen Corp.		15,024		1,449,966
Amsurg Corp. (a)		8,113		568,640
Anthem, Inc.		11,488		1,598,555
Cardinal Health, Inc.		14,346		1,179,241
Centene Corp. (a)		19,471		1,158,135
HCA Holdings, Inc. (a)		20,123		1,384,261
UnitedHealth Group, Inc.		13,250		1,560,585
WellCare Health Plans, Inc. (a)		10,838		960,247
				10,932,135
Hotels, Restaurants & Leisure 2.5%
Carnival Corp.		29,547		1,597,902
Cracker Barrel Old Country Store, Inc.		2,044		280,968
Darden Restaurants, Inc.		19,729		1,221,028
Panera Bread Co. Class A (a)		5,339		946,978
Starwood Hotels & Resorts Worldwide, Inc.		6,252		499,347
Yum! Brands, Inc.		6,836		484,741
				5,030,964
Household Durables 0.7%
Leggett & Platt, Inc.		30,414		1,369,542
Household Products 0.9%
Procter & Gamble Co. (The)		24,297		1,855,805

	Shares		Value
Industrial Conglomerates 0.9%
General Electric Co.		63,188	$	1,827,397
Insurance 5.8%
Allstate Corp. (The)		24,739		1,530,850
American International Group, Inc.		35,255		2,223,180
Hanover Insurance Group, Inc. (The)		2,163		182,233
Hartford Financial Services Group, Inc. (The)		31,120		1,439,611
Lincoln National Corp.		28,163		1,507,002
MetLife, Inc.		26,374		1,328,722
Prudential Financial, Inc.		18,416		1,519,320
Travelers Cos., Inc. (The)		15,310		1,728,346
XL Group PLC		2,287		87,089
				11,546,353
Internet & Catalog Retail 3.6%
¨Amazon.com, Inc. (a)		6,456		4,040,811
Expedia, Inc.		11,144		1,518,927
Netflix, Inc. (a)		2,320		251,442
Priceline Group, Inc. (The) (a)		968		1,407,704
				7,218,884
Internet Software & Services 4.0%
¨Alphabet, Inc. (Google)
Class A (a)		3,136		2,312,455
Class C (a)		2,984		2,121,057
eBay, Inc. (a)		12,186		339,989
Facebook, Inc. Class A (a)		24,580		2,506,423
VeriSign, Inc. (a)		9,113		734,508
				8,014,432
IT Services 5.8%
Accenture PLC Class A		3,796		406,931
Automatic Data Processing, Inc.		5,065		440,604
Computer Sciences Corp.		21,141		1,407,779
CoreLogic, Inc. (a)		25,348		988,065
Global Payments, Inc.		4,822		657,769
International Business Machines Corp.		9,805		1,373,484
MasterCard, Inc. Class A		10,854		1,074,438
PayPal Holdings, Inc. (a)		12,067		434,533
Teradata Corp. (a)		22,956		645,293
Total System Services, Inc.		9,550		500,898
Visa, Inc. Class A		21,229		1,646,946
Western Union Co. (The)		71,691		1,380,052
Xerox Corp.		71,918		675,310
				11,632,102
Leisure Products 0.2%
Hasbro, Inc.		5,985		459,828
Machinery 0.7%
AGCO Corp.		11,054		534,903
Dover Corp.		12,151		782,889
				1,317,792

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

	Shares		Value
Common Stocks (continued)
Media 2.3%
Comcast Corp. Class A		44,041	$	2,757,848
News Corp. Class A		77,388		1,191,775
Walt Disney Co. (The)		5,089		578,823
				4,528,446
Metals & Mining 0.1%
Nucor Corp.		3,478		147,119
Multi-Utilities 0.3%
Public Service Enterprise Group, Inc.		14,694		606,715
Multiline Retail 1.4%
Macy’s, Inc.		20,083		1,023,832
Target Corp.		22,235		1,716,097
				2,739,929
Oil, Gas & Consumable Fuels 5.8%
Chevron Corp.		30,654		2,785,835
ConocoPhillips		12,139		647,616
Devon Energy Corp.		1,711		71,742
¨Exxon Mobil Corp.		55,916		4,626,490
Hess Corp.		855		48,060
Marathon Petroleum Corp.		2,646		137,063
Occidental Petroleum Corp.		1,304		97,200
Tesoro Corp.		13,386		1,431,365
Valero Energy Corp.		25,496		1,680,696
				11,526,067
Pharmaceuticals 4.6%
Allergan PLC (a)		1,466		452,217
Bristol-Myers Squibb Co.		8,854		583,921
Eli Lilly & Co.		7,510		612,591
¨Johnson & Johnson		34,704		3,506,145
Merck & Co., Inc.		23,726		1,296,863
Pfizer, Inc.		84,422		2,855,152
				9,306,889
Real Estate Investment Trusts 0.6%
Crown Castle International Corp.		3,401		290,649
Simon Property Group, Inc.		389		78,368
Ventas, Inc.		3,609		193,876
Weyerhaeuser Co.		24,680		723,864
				1,286,757
Real Estate Management & Development 0.1%
CBRE Group, Inc. Class A (a)		4,866		181,405
Semiconductors & Semiconductor Equipment 2.5%
First Solar, Inc. (a)		27,230		1,554,016
Intel Corp.		88,944		3,011,644
Micron Technology, Inc. (a)		22,594		374,156
NVIDIA Corp.		2,786		79,039
				5,018,855

	Shares		Value
Software 4.6%
Citrix Systems, Inc. (a)		18,632	$	1,529,687
¨Microsoft Corp.		113,962		5,998,960
Oracle Corp.		44,613		1,732,769
				9,261,416
Specialty Retail 3.4%
AutoZone, Inc. (a)		167		130,996
Best Buy Co., Inc.		37,617		1,317,724
GameStop Corp. Class A		30,064		1,385,048
Home Depot, Inc. (The)		3,656		452,028
Lowe’s Cos., Inc.		27,485		2,029,218
Signet Jewelers, Ltd.		861		129,959
Staples, Inc.		106,529		1,383,812
TJX Cos., Inc. (The)		691		50,574
				6,879,359
Technology Hardware, Storage & Peripherals 4.4%
¨Apple, Inc.		72,892		8,710,594
NCR Corp. (a)		6,643		176,704
				8,887,298
Textiles, Apparel & Luxury Goods 0.4%
Coach, Inc.		1,524		47,549
NIKE, Inc. Class B		4,250		556,877
Under Armour, Inc. Class A (a)		1,950		185,406
				789,832
Thrifts & Mortgage Finance 0.3%
New York Community Bancorp, Inc.		36,602		604,665
Tobacco 1.8%
Altria Group, Inc.		15,836		957,603
Philip Morris International, Inc.		11,658		1,030,567
Reynolds American, Inc.		33,951		1,640,513
				3,628,683
Trading Companies & Distributors 0.0%‡
United Rentals, Inc. (a)		250		18,715
Total Common Stocks (Cost $183,841,864)				199,429,193
Exchange-Traded Fund 0.2% (b)
SPDR S&P 500 ETF Trust		2,511		522,112
Total Exchange-Traded Fund (Cost $506,779)				522,112

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 October 31, 2015 (continued)

	Principal Amount			Value
Short-Term Investment 0.1%
Repurchase Agreement 0.1%
State Street Bank and Trust Co. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $128,251 (Collateralized by a Federal Home Loan Mortgage Corp. security with a rate of 2.00% and a maturity date of 1/30/23, with a Principal Amount of $135,000 and a Market Value of $132,228)	$	128,251		$	128,251
Total Short-Term Investment (Cost $128,251)					128,251
Total Investments (Cost $184,476,894) (c)		100.0	%		200,079,556
Other Assets, Less Liabilities		(0.0	)‡		(3,238	)
Net Assets		100.0	%	$	200,076,318

‡ Less than one-tenth of a percent.

(a) Non-income producing security.

(b) Exchange-Traded Fund—An investment vehicle that represents a basket of securities that is traded on an exchange.

(c) As of October 31, 2015, cost was $185,511,322 for federal income tax purposes and net unrealized appreciation was as follows:

Gross unrealized appreciation	$	18,825,047
Gross unrealized depreciation		(4,256,813	)
Net unrealized appreciation	$	14,568,234

The following abbreviations are used in the preceding pages:

ETF—Exchange-Traded Fund

SPDR—Standard & Poor’s Depositary Receipt

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Common Stocks	$	199,429,193	$	—	$	—	$	199,429,193
Exchange-Traded Fund		522,112		—		—		522,112
Short-Term Investment
Repurchase Agreement		—		128,251		—		128,251
Total Investments in Securities	$	199,951,305	$	128,251	$	—	$	200,079,556

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

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

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

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $184,476,894)	$	200,079,556
Receivables:
Dividends		194,688
Fund shares sold		80,338
Investment securities sold		35,129
Other assets		32,531
Total assets		200,422,242
Liabilities
Payables:
Fund shares redeemed		96,622
Manager (See Note 3)		91,102
Investment securities purchased		46,153
NYLIFE Distributors (See Note 3)		42,495
Transfer agent (See Note 3)		35,858
Professional fees		16,754
Shareholder communication		9,524
Custodian		2,482
Trustees		472
Accrued expenses		4,462
Total liabilities		345,924
Net assets	$	200,076,318
Composition of Net Assets	��
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	100,347
Additional paid-in capital		217,462,772
		217,563,119
Undistributed net investment income		1,568,829
Accumulated net realized gain (loss) on investments		(34,658,292	)
Net unrealized appreciation (depreciation) on investments		15,602,662
Net assets	$	200,076,318

Class A
Net assets applicable to outstanding shares	$	52,984,794
Shares of beneficial interest outstanding		2,622,720
Net asset value per share outstanding	$	20.20
Maximum sales charge (5.50% of offering price)		1.18
Maximum offering price per share outstanding	$	21.38
Investor Class
Net assets applicable to outstanding shares	$	22,938,920
Shares of beneficial interest outstanding		1,136,280
Net asset value per share outstanding	$	20.19
Maximum sales charge (5.50% of offering price)		1.18
Maximum offering price per share outstanding	$	21.37
Class B
Net assets applicable to outstanding shares	$	6,815,972
Shares of beneficial interest outstanding		368,635
Net asset value and offering price per share outstanding	$	18.49
Class C
Net assets applicable to outstanding shares	$	25,775,485
Shares of beneficial interest outstanding		1,394,815
Net asset value and offering price per share outstanding	$	18.48
Class I
Net assets applicable to outstanding shares	$	91,561,147
Shares of beneficial interest outstanding		4,512,226
Net asset value and offering price per share outstanding	$	20.29

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

Statement of Operations for the year ended October 31, 2015

Investment Income (Loss)
Income
Dividends	$	3,880,223
Expenses
Manager (See Note 3)		1,071,693
Distribution/Service—Class A (See Note 3)		114,741
Distribution/Service—Investor Class (See Note 3)		55,604
Distribution/Service—Class B (See Note 3)		73,052
Distribution/Service—Class C (See Note 3)		253,181
Transfer agent (See Note 3)		211,041
Registration		95,040
Professional fees		55,042
Shareholder communication		26,568
Custodian		21,005
Trustees		3,862
Miscellaneous		12,388
Total expenses		1,993,217
Net investment income (loss)		1,887,006
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		10,462,143
Net change in unrealized appreciation (depreciation) on investments		(2,884,385	)
Net realized and unrealized gain (loss) on investments		7,577,758
Net increase (decrease) in net assets resulting from operations	$	9,464,764

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

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,887,006		$	1,329,863
Net realized gain (loss) on investments		10,462,143			20,830,771
Net change in unrealized appreciation (depreciation) on investments		(2,884,385	)		549,230
Net increase (decrease) in net assets resulting from operations		9,464,764			22,709,864
Dividends to shareholders:
From net investment income:
Class A		(317,306	)		(246,164	)
Investor Class		(124,211	)		(172,898	)
Class B		(14,009	)		(21,616	)
Class C		(42,750	)		(11,954	)
Class I		(951,731	)		(853,508	)
Total dividends to shareholders		(1,450,007	)		(1,306,140	)
Capital share transactions:
Net proceeds from sale of shares		67,834,602			77,236,992
Net asset value of shares issued to shareholders in reinvestment of dividends		1,415,184			1,290,929
Cost of shares redeemed		(64,302,117	)		(37,941,880	)
Increase (decrease) in net assets derived from capital share transactions		4,947,669			40,586,041
Net increase (decrease) in net assets		12,962,426			61,989,765
Net Assets
Beginning of year		187,113,892			125,124,127
End of year	$	200,076,318		$	187,113,892
Undistributed net investment income at end of year	$	1,568,829		$	1,205,572

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	19.39		$	16.59		$	12.90		$	11.34		$	10.79
Net investment income (loss) (a)		0.20			0.18			0.16			0.15			0.13
Net realized and unrealized gain (loss) on investments		0.76			2.83			3.71			1.60			0.53
Total from investment operations		0.96			3.01			3.87			1.75			0.66
Less dividends:
From net investment income		(0.15	)		(0.21	)		(0.18	)		(0.19	)		(0.11	)
Net asset value at end of year	$	20.20		$	19.39		$	16.59		$	12.90		$	11.34
Total investment return (b)		4.95	%		18.30	%		30.35	%		15.64	%		6.10	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.01	%		0.98	%		1.11	%		1.22	%		1.12	%
Net expenses		0.96	%		1.00	%		1.05	%		1.06	%		0.97	%
Portfolio turnover rate		158	%		165	%		150	%		182	%		139	%
Net assets at end of year (in 000’s)	$	52,985		$	34,139		$	19,011		$	12,402		$	10,662

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	19.38		$	16.58		$	12.89		$	11.32		$	10.77
Net investment income (loss) (a)		0.16			0.13			0.10			0.09			0.06
Net realized and unrealized gain (loss) on investments		0.76			2.82			3.70			1.61			0.53
Total from investment operations		0.92			2.95			3.80			1.70			0.59
Less dividends:
From net investment income		(0.11	)		(0.15	)		(0.11	)		(0.13	)		(0.04	)
Net asset value at end of year	$	20.19		$	19.38		$	16.58		$	12.89		$	11.32
Total investment return (b)		4.77	%		17.94	%		29.75	%		15.15	%		5.47	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.82	%		0.71	%		0.72	%		0.72	%		0.56	%
Net expenses		1.17	%		1.28	%		1.46	%		1.56	%		1.52	%
Portfolio turnover rate		158	%		165	%		150	%		182	%		139	%
Net assets at end of year (in 000’s)	$	22,939		$	20,856		$	18,436		$	15,093		$	13,917

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	17.81		$	15.27		$	11.87		$	10.43		$	9.96
Net investment income (loss) (a)		0.02			(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.02	)
Net realized and unrealized gain (loss) on investments		0.69			2.59			3.42			1.48			0.49
Total from investment operations		0.71			2.59			3.42			1.48			0.47
Less dividends:
From net investment income		(0.03	)		(0.05	)		(0.02	)		(0.04	)		(0.00	)‡
Net asset value at end of year	$	18.49		$	17.81		$	15.27		$	11.87		$	10.43
Total investment return (b)		4.01	%		17.00	%		28.87	%		14.23	%		4.75	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.09	%		(0.03	%)		(0.03	%)		(0.02	%)		(0.17	%)
Net expenses		1.92	%		2.03	%		2.21	%		2.31	%		2.27	%
Portfolio turnover rate		158	%		165	%		150	%		182	%		139	%
Net assets at end of year (in 000’s)	$	6,816		$	7,240		$	6,760		$	5,836		$	6,762

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	17.80		$	15.26		$	11.87		$	10.43		$	9.96
Net investment income (loss) (a)		0.01			(0.02	)		(0.01	)		(0.00	)‡		(0.02	)
Net realized and unrealized gain (loss) on investments		0.70			2.61			3.42			1.48			0.49
Total from investment operations		0.71			2.59			3.41			1.48			0.47
Less dividends:
From net investment income		(0.03	)		(0.05	)		(0.02	)		(0.04	)		(0.00	)‡
Net asset value at end of year	$	18.48		$	17.80		$	15.26		$	11.87		$	10.43
Total investment return (b)		4.01	%		17.01	%		28.78	%		14.23	%		4.75	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.06	%		(0.10	%)		(0.10	%)		(0.02	%)		(0.18	%)
Net expenses		1.92	%		2.03	%		2.21	%		2.31	%		2.27	%
Portfolio turnover rate		158	%		165	%		150	%		182	%		139	%
Net assets at end of year (in 000’s)	$	25,775		$	16,536		$	3,441		$	1,575		$	1,221

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	19.45		$	16.64		$	12.94		$	11.38		$	10.82
Net investment income (loss) (a)		0.26			0.22			0.20			0.18			0.16
Net realized and unrealized gain (loss) on investments		0.76			2.83			3.71			1.60			0.53
Total from investment operations		1.02			3.05			3.91			1.78			0.69
Less dividends:
From net investment income		(0.18	)		(0.24	)		(0.21	)		(0.22	)		(0.13	)
Net asset value at end of year	$	20.29		$	19.45		$	16.64		$	12.94		$	11.38
Total investment return (b)		5.26	%		18.55	%		30.65	%		15.89	%		6.43	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.30	%		1.24	%		1.40	%		1.48	%		1.39	%
Net expenses		0.71	%		0.75	%		0.80	%		0.81	%		0.72	%
Portfolio turnover rate		158	%		165	%		150	%		182	%		139	%
Net assets at end of year (in 000’s)	$	91,561		$	108,343		$	77,476		$	75,985		$	112,148

(a) Per share data based on average shares outstanding during the year.

(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.

20 MainStay Common Stock Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Common Stock 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 currently offers six classes of shares. Class A and Class B shares commenced operations on June 1, 1998. Class C shares commenced operations on September 1, 1998. Class I shares commenced operations on December 28, 2004. Class R2 shares were first offered on December 14, 2007. Investor Class shares commenced operations on February 28, 2008. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 and Class R2 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The six classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A, Investor Class and Class R2 shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I shares are not subject to a distribution and/or service fee. Class R2 shares are subject to a shareholder service fee. This is in addition to any fees paid under a distribution plan, where applicable. There were no investment operations for Class R2 during the year ended October 31, 2015.

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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally

4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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

21

Notes to Financial Statements (continued)

investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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	•    Reported trades
•    Two-sided markets	•    Issuer spreads
•    Bids / offers	•    Benchmark securities
•    Industry and economic events	•    Reference data (corporate actions or material event notices)
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are

generally categorized as Level 3 in the hierarchy. As of October 31, 2015, there were no securities held by the Fund that were fair valued in such a manner.

Equity securities and Exchange-Traded Funds 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. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired 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. Other temporary cash investments which 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. These securities are generally categorized as Level 2 in the hierarchy.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

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

22 MainStay Common Stock Fund

(D)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

(E)  Expenses.  Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and/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, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(H)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank

and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

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

Note 3–Fees and Related Party Transactions

(A)  Manager and Subadvisor.  New York Life 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 a portion of the compensation of the Chief Compliance Officer of the Fund. Cornerstone Capital Management Holdings LLC (“Cornerstone Holdings” or “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and Cornerstone Holdings, New York Life Investments pays for the services of the Subadvisor.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual

23

Notes to Financial Statements (continued)

rate of the Fund’s average daily net assets as follows: 0.55% up to $500 million; 0.525% from $500 million to $1 billion; and 0.50% on assets in excess of $1 billion. During the year ended October 31, 2015, the effective management fee rate was 0.55%.

New York Life Investments has voluntarily agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.85%; Class B, 2.60%; and Class C, 2.60%. These voluntary waivers or reimbursements may be discontinued at any time. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $1,071,693.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly distribution 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 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 Plan 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 a distribution plan, where applicable.

(C)  Sales Charges.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $13,031 and $6,907, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Class B and Class C shares of $2,327, $21,138 and $2,645, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	22,363
Investor Class		57,762
Class B		18,941
Class C		65,785
Class I		46,190

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

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary   Income	Accumulated Capital and Other Gain (Loss)			Other Temporary Differences		Unrealized Appreciation (Depreciation)		Total Accumulated Gain (Loss)
$1,568,829	$	(33,623,864	)	$	—	$	14,568,234	$	(17,486,801	)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments and return of capital distributions received.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments		Additional Paid-In Capital
$(73,742)	$	73,742	$	—

24 MainStay Common Stock Fund

The reclassifications for the Fund are primarily due to return of capital distributions received.

Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

As of October 31, 2015, for federal income tax purposes, capital loss carryforwards of $33,623,864 were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund through the years indicated. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expired.

Capital Loss Available Through	Short-Term Capital Loss Amounts (000’s)		Long-Term Capital Loss Amounts (000’s)
2017	$	33,624	$	—

The Fund utilized $11,071,308 of capital loss carryforwards during the year ended October 31, 2015.

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	1,450,007	$	1,306,140

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 6–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors.

Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

Note 7–Purchases and Sales of Securities (in 000’s)

During the year ended October 31, 2015, purchases and sales of securities, other than short-term securities, were $312,324 and $306,130, respectively.

Note 8–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		1,548,299		$	30,351,618
Shares issued to shareholders in reinvestment of dividends and distributions		15,457			306,971
Shares redeemed		(713,232	)		(14,201,162	)
Net increase (decrease) in shares outstanding before conversion		850,524			16,457,427
Shares converted into Class A (See Note 1)		44,372			894,606
Shares converted from Class A (See Note 1)		(33,201	)		(635,327	)
Net increase (decrease)		861,695		$	16,716,706
Year ended October 31, 2014:
Shares sold		845,403		$	15,598,711
Shares issued to shareholders in reinvestment of dividends and distributions		13,981			238,788
Shares redeemed		(333,654	)		(5,975,091	)
Net increase (decrease) in shares outstanding before conversion		525,730			9,862,408
Shares converted into Class A (See Note 1)		95,157			1,723,461
Shares converted from Class A (See Note 1)		(5,603	)		(104,097	)
Net increase (decrease)		615,284		$	11,481,772

25

Notes to Financial Statements (continued)

Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		197,188		$	3,922,117
Shares issued to shareholders in reinvestment of dividends and distributions		6,158			122,419
Shares redeemed		(177,345	)		(3,531,519	)
Net increase (decrease) in shares outstanding before conversion		26,001			513,017
Shares converted into Investor Class (See Note 1)		73,603			1,428,217
Shares converted from Investor Class (See Note 1)		(39,541	)		(799,054	)
Net increase (decrease)		60,063		$	1,142,180
Year ended October 31, 2014:
Shares sold		144,607		$	2,613,092
Shares issued to shareholders in reinvestment of dividends and distributions		9,823			168,174
Shares redeemed		(150,768	)		(2,722,236	)
Net increase (decrease) in shares outstanding before conversion		3,662			59,030
Shares converted into Investor Class (See Note 1)		48,099			875,749
Shares converted from Investor Class (See Note 1)		(87,335	)		(1,583,479	)
Net increase (decrease)		(35,574	)	$	(648,700	)
Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		107,365		$	1,963,256
Shares issued to shareholders in reinvestment of dividends and distributions		718			13,151
Shares redeemed		(96,625	)		(1,755,078	)
Net increase (decrease) in shares outstanding before conversion		11,458			221,329
Shares converted from Class B (See Note 1)		(49,207	)		(888,442	)
Net increase (decrease)		(37,749	)	$	(667,113	)
Year ended October 31, 2014:
Shares sold		94,401		$	1,597,992
Shares issued to shareholders in reinvestment of dividends and distributions		1,333			21,115
Shares redeemed		(77,643	)		(1,287,500	)
Net increase (decrease) in shares outstanding before conversion		18,091			331,607
Shares converted from Class B (See Note 1)		(54,509	)		(911,634	)
Net increase (decrease)		(36,418	)	$	(580,027	)

Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		861,851		$	15,727,727
Shares issued to shareholders in reinvestment of dividends and distributions		1,704			31,194
Shares redeemed		(397,517	)		(7,188,101	)
Net increase (decrease)		466,038		$	8,570,820
Year ended October 31, 2014:
Shares sold		765,326		$	12,987,405
Shares issued to shareholders in reinvestment of dividends and distributions		686			10,858
Shares redeemed		(62,725	)		(1,059,365	)
Net increase (decrease)		703,287		$	11,938,898
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		798,357		$	15,869,884
Shares issued to shareholders in reinvestment of dividends and distributions		47,309			941,449
Shares redeemed		(1,902,965	)		(37,626,257	)
Net increase (decrease)		(1,057,299	)	$	(20,814,924	)
Year ended October 31, 2014:
Shares sold		2,399,369		$	44,439,792
Shares issued to shareholders in reinvestment of dividends and distributions		49,795			851,994
Shares redeemed		(1,534,790	)		(26,897,688	)
Net increase (decrease)		914,374		$	18,394,098

Note 9–Litigation

The Fund has been named as a defendant in the case entitled Kirschner v. FitzSimons, No. 12-2652 (S.D.N.Y.) (the “FitzSimons action”) as a result of its ownership of shares in the Tribune Company (“Tribune”) in 2007 when Tribune effected a leveraged buyout transaction (“LBO”) by which Tribune converted to a privately-held company. In its complaint, the plaintiff asserts claims against certain insiders, shareholders, professional advisers, and others involved in the LBO. Separately, the complaint also seeks to obtain from former Tribune shareholders, including the Fund, any proceeds they received in connection with the LBO. The sole claim and cause of action brought against the Fund is for fraudulent conveyance pursuant to United States Bankruptcy Code Section 548(a)(1)(A).

In June 2011, certain Tribune creditors filed numerous additional actions asserting state law constructive fraudulent conveyance claims (the “SLCFC actions”) against specifically-named former Tribune shareholders and, in some cases, putative defendant classes comprised of former Tribune shareholders. One of the SLCFC actions, entitled Deutsche Bank Trust Co. Americas v. Blackrock Institutional Trust Co., No. 11-9319 (S.D.N.Y.) (the “Deutsche Bank action”), named The MainStay Funds as a defendant.

The FitzSimons action and Deutsche Bank action have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding entitled In re Tribune Co. Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”). On August 2, 2013, the plaintiff in the FitzSimons action filed a Fifth Amended Complaint.

26 MainStay Common Stock Fund

On September 23, 2013, the District Court granted the defendants’ motion to dismiss the SLCFC actions, including the Deutsche Bank action, on the basis that the plaintiffs did not have standing to pursue their claims. On September 30, 2013, the plaintiffs in the SLCFC actions filed a notice of appeal to the United States Court of Appeals for the Second Circuit. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order. On November 5, 2014, the Second Circuit Court of Appeals held an oral argument on appeal. A decision has not been issued.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

The value of the proceeds received by the Fund in connection with the LBO and the Fund’s cost basis in shares of Tribune was as follows:

Fund	Proceeds		Cost Basis
MainStay Common Stock Fund	$	751,774	$	729,369

At this stage of the proceedings, it would be difficult to assess with any reasonable certainty the probable outcome of the pending litigation or the effect, if any, on the Fund’s net asset value.

Note 10–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 11–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

27

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Common Stock Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Common Stock Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

28 MainStay Common Stock Fund

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years.

For the fiscal year ended October 31, 2015, the Fund designated approximately $1,450,007 under the Internal Revenue Code as qualified dividend income eligible for reduced tax rates.

The dividends paid by the Fund during the fiscal year ended October 31, 2015, should be multiplied by 100.0% to arrive at the amount eligible for the corporate dividends received deduction.

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

29

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

30 MainStay Common Stock Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

31

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

32 MainStay Common Stock Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

33

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

34 MainStay Common Stock Fund

MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673405 MS291-15 MSCS11-12/15 (NYLIM) NL219

MainStay Large Cap Growth Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	11
Financial Statements	13
Notes to Financial Statements	21
Report of Independent Registered Public Accounting Firm	28
Federal Income Tax Information	29
Proxy Voting Policies and Procedures and Proxy Voting Record	29
Shareholder Reports and Quarterly Portfolio Disclosure	29
Board of Trustees, Officers and Advisory Board Members	30

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

Investment and Performance Comparison¹(Unaudited)

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

(With sales charges)

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		2.16 8.10	%		12.76 14.04	%		8.49 9.11	%		0.99 0.99	%
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		2.21 8.16			12.73 14.02			8.43 9.05			1.04 1.04
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		2.53 7.34			12.89 13.13			8.23 8.23			1.79 1.79
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		6.39 7.35			13.15 13.15			8.22 8.22			1.79 1.79
Class I Shares	No Sales Charge			8.36			14.32			9.50			0.74
Class R1 Shares	No Sales Charge			8.39			14.22			9.39			0.84
Class R2 Shares	No Sales Charge			8.00			13.93			9.13			1.09
Class R3 Shares4	No Sales Charge			7.79			13.67			8.83			1.34
Class R6 Shares5	No Sales Charge			8.55			14.38			9.53			0.62

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class R3 shares, first offered on April 28, 2006, include the historical performance of Class A shares through April 27, 2006, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R3 shares would likely have been different.

5. Performance figures for Class R6 shares, first offered on June 17, 2013, include the historical performance of Class I shares through June 16, 2013. Performance for Class R6 shares would also likely have been different because of differences in expenses attributable to each share class.

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

5

Benchmark Performance	One Year			Five Years			Ten Years
Russell 1000® Growth Index6		9.18	%		15.30	%		9.09	%
S&P 500® Index7		5.20			14.33			7.85
Average Lipper Large-Cap Growth Fund8		7.90			13.81			8.09

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

7. “S&P 500^®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500^® Index is widely regarded as the standard for measuring large-cap U.S. stock-market performance. The S&P 500^® Index is the Fund’s

secondary benchmark. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.

8. The Average Lipper Large-Cap Growth Fund is representative of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s U.S. Diversified Equity large-cap floor. Large-cap growth funds typically have above-average characteristics compared to the S&P 500^® Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay Large Cap Growth Fund

Cost in Dollars of a $1,000 Investment in MainStay Large Cap Growth Fund (Unaudited)

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	1,034.90	$	5.08	$	1,020.20	$	5.04
Investor Class Shares	$	1,000.00	$	1,036.10	$	5.34	$	1,020.00	$	5.30
Class B Shares	$	1,000.00	$	1,032.00	$	9.17	$	1,016.20	$	9.10
Class C Shares	$	1,000.00	$	1,032.10	$	9.17	$	1,016.20	$	9.10
Class I Shares	$	1,000.00	$	1,036.20	$	3.80	$	1,021.50	$	3.77
Class R1 Shares	$	1,000.00	$	1,036.80	$	4.31	$	1,021.00	$	4.28
Class R2 Shares	$	1,000.00	$	1,034.90	$	5.59	$	1,019.70	$	5.55
Class R3 Shares	$	1,000.00	$	1,033.80	$	6.87	$	1,018.50	$	6.82
Class R6 Shares	$	1,000.00	$	1,037.10	$	3.18	$	1,022.10	$	3.16

1. Expenses are equal to the Fund’s annualized expense ratio of each class (0.99% for Class A, 1.04% for Investor Class, 1.79% for Class B and Class C, 0.74% for Class I, 0.84% for Class R1, 1.09% for Class R2, 1.34% for Class R3 and 0.62% for Class R6) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Industry Composition as of October 31, 2015 (Unaudited)

Internet Software & Services	12.8	%
IT Services	9.4
Software	9.2
Biotechnology	9.1
Internet & Catalog Retail	8.9
Health Care Equipment & Supplies	4.6
Chemicals	4.3
Hotels, Restaurants & Leisure	4.3
Specialty Retail	4.2
Textiles, Apparel & Luxury Goods	4.2
Technology Hardware, Storage & Peripherals	3.6
Food & Staples Retailing	2.8
Health Care Providers & Services	2.8
Pharmaceuticals	2.8
Media	2.7

Industrial Conglomerates	2.5	%
Real Estate Investment Trusts	2.0
Wireless Telecommunication Services	1.7
Airlines	1.6
Life Sciences Tools & Services	1.3
Road & Rail	1.2
Semiconductors & Semiconductor Equipment	1.2
Auto Components	0.7
Automobiles	0.6
Capital Markets	0.3
Oil, Gas & Consumable Fuels	0.3
Short-Term Investment	1.2
Other Assets, Less Liabilities	–0.3
	100.0	%

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

Top Ten Holdings or Issuers as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. Alphabet, Inc. (Google)

2. Amazon.com, Inc.

3. Visa, Inc. Class A

4. Apple, Inc.

5. Facebook, Inc. Class A

  6. NIKE, Inc. Class B

  7. Celgene Corp.

  8. Priceline Group, Inc. (The)

  9. Adobe Systems, Inc.

10. LinkedIn Corp. Class A

8 MainStay Large Cap Growth Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Clark J. Winslow, Justin H. Kelly, CFA, and Patrick M. Burton, CFA, of Winslow Capital Management, LLC, the Fund’s Subadvisor.

How did MainStay Large Cap Growth Fund perform relative to its benchmarks and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay Large Cap Growth Fund returned 8.10% for Class A shares, 8.16% for Investor Class shares, 7.34% for Class B shares and 7.35% for Class C shares for the 12 months ended October 31, 2015. Over the same period, the Fund returned 8.36% for Class I shares, 8.39% for Class R1 shares, 8.00% for Class R2 shares, 7.79% for Class R3 shares and 8.55% for Class R6 shares. For the 12 months ended October 31, 2015, all share classes underperformed the 9.18% return of the Russell 1000^® Growth Index,¹ which is the Fund’s primary benchmark. Over the same period, all share classes outperformed the 5.20% return of the S&P 500^® Index,¹ which is the Fund’s secondary benchmark. For the 12 months ended October 31, 2015, Class A, Investor Class, Class I, Class R1, Class R2 and Class R6 shares outperformed—and all other share classes underperformed—the 7.90% return of the Average Lipper² Large-Cap Growth Fund. See page 5 for Fund returns with applicable sales charges.

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

The Fund’s performance relative to the Russell 1000^® Growth Index resulted primarily from underweight positions in the energy and industrials sectors (which underperformed during the reporting period) and from stock selection, which contributed positively in three sectors and detracted in six sectors. (Contributions take weightings and total returns into account.)

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

Consumer discretionary, energy and telecommunication services made the strongest positive sector contributions to the Fund’s performance relative to the Russell 1000^® Growth Index. The best-performing sector on a relative basis was consumer discretionary, which benefited from favorable stock selection. In the energy sector, an underweight position relative to the Index contributed positively to relative performance. In the telecommunication services sector, stock selection drove relative performance.

Health care, consumer staples and financials were the sectors that detracted the most from the Fund’s performance relative to the Russell 1000^® Growth Index. The worst-performing sector on a relative basis was health care, primarily because of stock selection. In consumer staples, an underweight position drove relative performance. In the financials sector, stock selection hurt relative performance.

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

The strongest positive contributor to the Fund’s absolute performance during the reporting period was online retailer Amazon.com. The company experienced strong revenue growth and upside potential from its web services business. Global payments technology company Visa performed well during the reporting period. The company continued to benefit from the global shift away from cash and checks. Shares of coffee company Starbucks rallied during the reporting period after weak performance in 2014. Investors were attracted by several top-line growth initiatives and the company’s efforts to stabilize pricing.

During the reporting period, the most significant detractor from the Fund’s absolute performance was Chinese-language Internet search company Baidu. While we believed that the company had compelling growth opportunities ahead, it was challenged by near-term issues. The movement from 3G to 4G technology in mobile phones resulted in rapid revenue growth at the company. Baidu’s margins, however, were pressured as the company spent to solidify its lead in key gateways: search, maps and app distribution. The Fund eliminated its position in Baidu during the reporting period. Shares of rail and freight transportation company Union Pacific lagged. Following very strong returns in 2013 and 2014, rail volumes softened in 2015. This was a result of several issues, including the West Coast ports strike (now resolved) that hurt intermodal volumes, the decline in oil prices that hurt crude and fracking volumes, and the mild winter that negatively affected coal volumes. Specialty pharmaceuticals company Mallinckrodt also detracted from the Fund’s performance. We eliminated the Fund’s position in the company after it reported disappointing results from its specialty generics segment.

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

We initiated a position in entertainment streaming and subscriptions company Netflix during the reporting period, as we expected international subscriber growth to propel revenues. We purchased a position in digital media company Adobe Systems because we expected the transition of software users from perpetual licenses to cloud-based subscriptions to positively affect the company’s revenue and earnings growth. We purchased a position in paint and coatings manufacturer Sherwin-Williams because of the improving housing market and our belief that lower oil-related input costs could improve the company’s earnings growth.

1. See footnote on page 6 for more information on this index.

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

9

In addition to eliminating Mallinckrodt, the Fund sold its position in health care information technology and device company Cerner because of the stock’s valuation. Grocery chain Whole Foods Market was sold in an effort to take gains ahead of weakening operating fundamentals. As discussed, we sold the Fund’s position in Chinese-language Internet search company Baidu, as we sought to reduce exposure to a slowing Chinese economy.

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

We increased the Fund’s already overweight position relative to the Russell 1000^® Growth Index in the information technology sector. We increased the Fund’s allocation to the materials sector, moving from an underweight to an overweight position. We also added to the Fund’s energy holdings, reducing the degree to which the Fund was underweight in the energy sector.

During the reporting period, we trimmed industrial holdings, increasing the degree to which the Fund was underweight

relative to the Russell 1000^® Growth Index in the sector. We pared the Fund’s position in the health care sector but remained overweight relative to the Index. In the financials sector, we went from an overweight to an underweight position relative to the Index.

How was the Fund positioned at the end of the reporting period?

Throughout the reporting period, we positioned the Fund for a growth equity environment. We modeled the strong secular growth in the information technology, health care and consumer discretionary sectors, and the Fund held overweight positions relative to the Russell 1000^® Growth Index in all three sectors as of October 31, 2015.

As of the same date, the Fund held underweight positions relative to the Russell 1000^® Growth Index in the industrials and consumer staples sectors. We viewed both sectors as being disproportionately exposed to the strength of the U.S. dollar and to slow global growth.

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

10 MainStay Large Cap Growth Fund

Portfolio of Investments October 31, 2015

	Shares		Value
Common Stocks 99.1%†
Airlines 1.6%
Delta Air Lines, Inc.		5,779,300	$	293,819,612
Auto Components 0.7%
Delphi Automotive PLC		1,474,700		122,680,293
Automobiles 0.6%
Tesla Motors, Inc. (a)		482,100		99,760,953
Biotechnology 9.1%
AbbVie, Inc.		2,492,500		148,428,375
Alexion Pharmaceuticals, Inc. (a)		1,930,150		339,706,400
BioMarin Pharmaceutical, Inc. (a)		580,090		67,893,734
¨Celgene Corp. (a)		4,178,070		512,690,970
Gilead Sciences, Inc.		2,427,000		262,431,510
Regeneron Pharmaceuticals, Inc. (a)		185,415		103,348,467
Vertex Pharmaceuticals, Inc. (a)		1,590,225		198,364,666
				1,632,864,122
Capital Markets 0.3%
Charles Schwab Corp. (The)		1,796,200		54,820,024
Chemicals 4.3%
Ecolab, Inc.		2,478,700		298,311,545
PPG Industries, Inc.		2,352,100		245,229,946
Sherwin-Williams Co. (The)		868,225		231,668,477
				775,209,968
Food & Staples Retailing 2.8%
Costco Wholesale Corp.		1,358,500		214,806,020
CVS Health Corp.		3,010,400		297,367,312
				512,173,332
Health Care Equipment & Supplies 4.6%
Boston Scientific Corp. (a)		13,514,800		247,050,544
DexCom, Inc. (a)		2,125,985		177,137,070
Edwards Lifesciences Corp. (a)		1,239,170		194,735,565
Medtronic PLC		2,952,680		218,262,106
				837,185,285
Health Care Providers & Services 2.8%
Envision Healthcare Holdings, Inc. (a)		5,552,200		156,572,040
UnitedHealth Group, Inc.		3,001,900		353,563,782
				510,135,822
Hotels, Restaurants & Leisure 4.3%
Chipotle Mexican Grill, Inc. (a)		291,100		186,370,953
Hilton Worldwide Holdings, Inc.		10,200,000		254,898,000
Starbucks Corp.		5,264,400		329,393,508
				770,662,461

	Shares		Value
Industrial Conglomerates 2.5%
Danaher Corp.		3,059,000	$	285,435,290
General Electric Co.		5,895,600		170,500,752
				455,936,042
Internet & Catalog Retail 8.9%
¨Amazon.com, Inc. (a)		1,311,680		820,980,512
Ctrip.com International, Ltd., Sponsored ADR (a)		1,601,700		148,910,049
Netflix, Inc. (a)		1,346,720		145,957,514
¨Priceline Group, Inc. (The) (a)		330,600		480,771,744
				1,596,619,819
Internet Software & Services 12.8%
Alibaba Group Holding, Ltd., Sponsored ADR (a)		2,669,100		223,750,653
¨Alphabet, Inc. (Google)
Class A (a)		600,390		442,721,582
Class C (a)		608,601		432,599,677
CoStar Group, Inc. (a)		848,515		172,307,941
¨Facebook, Inc. Class A (a)		6,195,600		631,765,332
¨LinkedIn Corp. Class A (a)		1,668,890		401,985,534
				2,305,130,719
IT Services 9.4%
First Data Corp. Class A (a)		16,551,400		262,174,176
MasterCard, Inc. Class A		3,985,200		394,494,948
PayPal Holdings, Inc. (a)		6,814,650		245,395,546
¨Visa, Inc. Class A		10,320,500		800,664,390
				1,702,729,060
Life Sciences Tools & Services 1.3%
Quintiles Transnational Holdings, Inc. (a)		3,618,200		230,298,430
Media 2.7%
Liberty Global PLC Series C (a)		3,785,250		161,403,060
Walt Disney Co. (The)		2,854,000		324,613,960
				486,017,020
Oil, Gas & Consumable Fuels 0.3%
Concho Resources, Inc. (a)		533,600		61,849,576
Pharmaceuticals 2.8%
Allergan PLC (a)		473,830		146,162,340
Bristol-Myers Squibb Co.		5,554,700		366,332,465
				512,494,805
Real Estate Investment Trusts 2.0%
American Tower Corp.		3,478,500		355,607,055
Road & Rail 1.2%
Union Pacific Corp.		2,434,660		217,536,871

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings or issuers, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Shares		Value
Common Stocks (continued)
Semiconductors & Semiconductor Equipment 1.2%
Avago Technologies, Ltd.		1,813,200	$	223,259,316
Software 9.2%
¨Adobe Systems, Inc. (a)		4,864,500		431,286,570
Intuit, Inc.		2,569,200		250,317,156
Microsoft Corp.		3,157,000		166,184,480
Mobileye N.V. (a)		4,760,400		216,693,408
Salesforce.com, Inc. (a)		3,500,400		272,016,084
ServiceNow, Inc. (a)		2,320,000		189,428,000
Workday, Inc. Class A (a)		1,599,600		126,320,412
				1,652,246,110
Specialty Retail 4.2%
Home Depot, Inc. (The)		2,917,000		360,657,880
L Brands, Inc.		1,869,200		179,405,816
Ulta Salon Cosmetics & Fragrance, Inc. (a)		1,193,670		207,650,833
				747,714,529
Technology Hardware, Storage & Peripherals 3.6%
¨Apple, Inc.		5,400,485		645,357,958
Textiles, Apparel & Luxury Goods 4.2%
Lululemon Athletica, Inc. (a)		2,508,950		123,365,071
¨NIKE, Inc. Class B		4,163,300		545,517,199
Under Armour, Inc. Class A (a)		964,100		91,666,628
				760,548,898
Wireless Telecommunication Services 1.7%
SBA Communications Corp. Class A (a)		2,596,600		309,047,332
Total Common Stocks (Cost $11,600,986,183)				17,871,705,412

	Principal Amount			Value
Short-Term Investment 1.2%
Repurchase Agreement 1.2%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $222,158,333 (Collateralized by United States Treasury and Government Agency securities with rates between 1.25% and 1.96% and maturity dates between 12/11/19 and 1/31/20, with a Principal Amount of $224,640,000 and a Market Value of $226,602,969)	$	222,158,333		$	222,158,333
Total Short-Term Investment (Cost $222,158,333)					222,158,333
Total Investments (Cost $11,823,144,516) (b)		100.3	%		18,093,863,745
Other Assets, Less Liabilities		(0.3	)		(52,718,477	)
Net Assets		100.0	%	$	18,041,145,268

(a) Non-income producing security.

(b) As of October 31, 2015, cost was $11,844,119,094 for federal income tax purposes and net unrealized appreciation was as follows:

Gross unrealized appreciation	$	6,403,650,209
Gross unrealized depreciation		(153,905,558	)
Net unrealized appreciation	$	6,249,744,651

The following abbreviation is used in the preceding pages:

ADR—American Depositary Receipt

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Common Stocks	$	17,871,705,412	$	—	$	—	$	17,871,705,412
Short-Term Investment
Repurchase Agreement		—		222,158,333		—		222,158,333
Total Investments in Securities	$	17,871,705,412	$	222,158,333	$	—	$	18,093,863,745

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

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

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

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $11,823,144,516)	$	18,093,863,745
Receivables:
Investment securities sold		317,674,713
Fund shares sold		34,865,101
Dividends		3,940,505
Other assets		138,247
Total assets		18,450,482,311
Liabilities
Payables:
Investment securities purchased		330,799,963
Fund shares redeemed		64,306,596
Manager (See Note 3)		9,220,342
Transfer agent (See Note 3)		3,515,148
NYLIFE Distributors (See Note 3)		851,040
Shareholder communication		302,200
Professional fees		177,834
Trustees		42,395
Custodian		14,323
Accrued expenses		107,202
Total liabilities		409,337,043
Net assets	$	18,041,145,268
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	16,353,733
Additional paid-in capital		9,722,955,520
		9,739,309,253
Net investment loss		(9,676,580	)
Accumulated net realized gain (loss) on investments		2,040,793,366
Net unrealized appreciation (depreciation) on investments		6,270,719,229
Net assets	$	18,041,145,268

Class A
Net assets applicable to outstanding shares	$	1,202,851,695
Shares of beneficial interest outstanding		112,588,721
Net asset value per share outstanding	$	10.68
Maximum sales charge (5.50% of offering price)		0.62
Maximum offering price per share outstanding	$	11.30
Investor Class
Net assets applicable to outstanding shares	$	180,153,577
Shares of beneficial interest outstanding		16,986,248
Net asset value per share outstanding	$	10.61
Maximum sales charge (5.50% of offering price)		0.62
Maximum offering price per share outstanding	$	11.23
Class B
Net assets applicable to outstanding shares	$	47,778,524
Shares of beneficial interest outstanding		4,942,158
Net asset value and offering price per share outstanding	$	9.67
Class C
Net assets applicable to outstanding shares	$	408,077,929
Shares of beneficial interest outstanding		42,261,794
Net asset value and offering price per share outstanding	$	9.66
Class I
Net assets applicable to outstanding shares	$	12,150,253,222
Shares of beneficial interest outstanding		1,089,466,189
Net asset value and offering price per share outstanding	$	11.15
Class R1
Net assets applicable to outstanding shares	$	1,952,247,592
Shares of beneficial interest outstanding		177,703,988
Net asset value and offering price per share outstanding	$	10.99
Class R2
Net assets applicable to outstanding shares	$	674,630,358
Shares of beneficial interest outstanding		63,178,561
Net asset value and offering price per share outstanding	$	10.68
Class R3
Net assets applicable to outstanding shares	$	114,117,967
Shares of beneficial interest outstanding		10,987,941
Net asset value and offering price per share outstanding	$	10.39
Class R6
Net assets applicable to outstanding shares	$	1,311,034,404
Shares of beneficial interest outstanding		117,257,708
Net asset value and offering price per share outstanding	$	11.18

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 year ended October 31, 2015

Investment Income (Loss)
Income
Dividends (a)	$	144,129,024
Expenses
Manager (See Note 3)		115,165,899
Transfer agent (See Note 3)		21,411,599
Distribution/Service—Class A (See Note 3)		3,126,094
Distribution/Service—Investor Class (See Note 3)		478,668
Distribution/Service—Class B (See Note 3)		504,544
Distribution/Service—Class C (See Note 3)		4,041,692
Distribution/Service—Class R2 (See Note 3)		2,171,060
Distribution/Service—Class R3 (See Note 3)		695,192
Shareholder service (See Note 3)		3,110,558
Professional fees		917,046
Shareholder communication		750,477
Trustees		371,857
Registration		297,141
Custodian		237,781
Miscellaneous		525,996
Total expenses		153,805,604
Net investment income (loss)		(9,676,580	)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		2,381,897,095
Net change in unrealized appreciation (depreciation) on investments		(812,353,846	)
Net realized and unrealized gain (loss) on investments		1,569,543,249
Net increase (decrease) in net assets resulting from operations	$	1,559,866,669

(a) Dividends recorded net of foreign withholding taxes in the amount of $363,495.

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

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(9,676,580	)	$	(11,984,714	)
Net realized gain (loss) on investments		2,381,897,095			1,874,497,628
Net change in unrealized appreciation (depreciation) on investments		(812,353,846	)		924,761,634
Net increase (decrease) in net assets resulting from operations		1,559,866,669			2,787,274,548
Distributions to shareholders:
From net realized gain on investments:
Class A		(125,570,603	)		(79,083,265	)
Investor Class		(19,330,344	)		(10,240,865	)
Class B		(5,511,858	)		(3,166,489	)
Class C		(42,270,495	)		(21,440,854	)
Class I		(1,298,539,884	)		(633,346,919	)
Class R1		(207,982,444	)		(109,832,339	)
Class R2		(92,684,573	)		(50,218,864	)
Class R3		(15,451,512	)		(11,049,456	)
Class R6		(69,346,873	)		(15,500,740	)
Total distributions to shareholders		(1,876,688,586	)		(933,879,791	)
Capital share transactions:
Net proceeds from sale of shares		3,835,563,572			4,672,227,886
Net asset value of shares issued to shareholders in reinvestment of distributions		1,486,839,316			732,634,815
Cost of shares redeemed		(7,392,003,445	)		(6,044,346,268	)
Increase (decrease) in net assets derived from capital share transactions		(2,069,600,557	)		(639,483,567	)
Net increase (decrease) in net assets		(2,386,422,474	)		1,213,911,190
Net Assets
Beginning of year		20,427,567,742			19,213,656,552
End of year	$	18,041,145,268		$	20,427,567,742
Net investment income (loss)	$	(9,676,580	)	$	—

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.91		$	9.98		$	7.55		$	7.24		$	6.58
Net investment income (loss) (a)		(0.02	)		(0.02	)		0.01			(0.02	)		(0.02	)
Net realized and unrealized gain (loss) on investments		0.85			1.45			2.42			0.49			0.68
Total from investment operations		0.83			1.43			2.43			0.47			0.66
Less dividends and distributions:
From net investment income		—			—			(0.00	)‡		—			—
From net realized gain on investments		(1.06	)		(0.50	)		—			(0.16	)		—
Total dividends and distributions		(1.06	)		(0.50	)		(0.00	)‡		(0.16	)		—
Net asset value at end of year	$	10.68		$	10.91		$	9.98		$	7.55		$	7.24
Total investment return (b)		8.10	%		14.95	%		32.09	%		6.79	%		10.03	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.23	%)		(0.22	%)		0.17	%		(0.20	%)		(0.35	%)
Net expenses		0.99	%		0.99	%		1.02	%		1.04	%		1.06	%
Expenses (before waiver/reimbursement)		0.99	%		0.99	%		1.02	%		1.04	%		1.07	%
Portfolio turnover rate		66	%		67	%		74	%		60	%		52	%
Net assets at end of year (in 000’s)	$	1,202,852		$	1,304,641		$	1,615,768		$	1,611,374		$	1,887,326

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.84		$	9.93		$	7.52		$	7.21		$	6.55
Net investment income (loss) (a)		(0.03	)		(0.03	)		0.01			(0.02	)		(0.03	)
Net realized and unrealized gain (loss) on investments		0.86			1.44			2.40			0.49			0.69
Total from investment operations		0.83			1.41			2.41			0.47			0.66
Less dividends and distributions:
From net investment income		—			—			(0.00	)‡		—			—
From net realized gain on investments		(1.06	)		(0.50	)		—			(0.16	)		—
Total dividends and distributions		(1.06	)		(0.50	)		(0.00	)‡		(0.16	)		—
Net asset value at end of year	$	10.61		$	10.84		$	9.93		$	7.52		$	7.21
Total investment return (b)		8.16	%		14.82	%		32.13	%		6.68	%		10.08	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.28	%)		(0.28	%)		0.09	%		(0.28	%)		(0.43	%)
Net expenses		1.04	%		1.04	%		1.08	%		1.10	%		1.15	%
Portfolio turnover rate		66	%		67	%		74	%		60	%		52	%
Net assets at end of year (in 000’s)	$	180,154		$	199,826		$	211,111		$	199,156		$	130,140

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.04		$	9.29		$	7.09		$	6.86		$	6.28
Net investment income (loss) (a)		(0.10	)		(0.10	)		(0.05	)		(0.07	)		(0.08	)
Net realized and unrealized gain (loss) on investments		0.79			1.35			2.25			0.46			0.66
Total from investment operations		0.69			1.25			2.20			0.39			0.58
Less dividends and distributions:
From net investment income		—			—			(0.00	)‡		—			—
From net realized gain on investments		(1.06	)		(0.50	)		—			(0.16	)		—
Total dividends and distributions		(1.06	)		(0.50	)		(0.00	)‡		(0.16	)		—
Net asset value at end of year	$	9.67		$	10.04		$	9.29		$	7.09		$	6.86
Total investment return (b)		7.34	%		14.08	%		30.93	%		5.98	%		9.24	% (c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(1.03	%)		(1.02	%)		(0.65	%)		(1.01	%)		(1.18	%)
Net expenses		1.79	%		1.79	%		1.83	%		1.84	%		1.90	%
Expenses (before waiver/reimbursement)		1.79	%		1.79	%		1.83	%		1.85	%		1.90	%
Portfolio turnover rate		66	%		67	%		74	%		60	%		52	%
Net assets at end of year (in 000’s)	$	47,779		$	52,737		$	59,671		$	58,392		$	72,591

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

(c) Total investment return may reflect adjustments to conform to generally accepted accounting principles.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.03		$	9.29		$	7.09		$	6.85		$	6.28
Net investment income (loss) (a)		(0.10	)		(0.10	)		(0.05	)		(0.07	)		(0.08	)
Net realized and unrealized gain (loss) on investments		0.79			1.34			2.25			0.47			0.65
Total from investment operations		0.69			1.24			2.20			0.40			0.57
Less dividends and distributions:
From net investment income		—			—			(0.00	)‡		—			—
From net realized gain on investments		(1.06	)		(0.50	)		—			(0.16	)		—
Total dividends and distributions		(1.06	)		(0.50	)		(0.00	)‡		(0.16	)		—
Net asset value at end of year	$	9.66		$	10.03		$	9.29		$	7.09		$	6.85
Total investment return (b)		7.35	%		13.96	%		31.12	%		5.99	%		9.08	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(1.04	%)		(1.02	%)		(0.66	%)		(1.02	%)		(1.18	%)
Net expenses		1.79	%		1.79	%		1.83	%		1.85	%		1.89	%
Expenses (before waiver/reimbursement)		1.79	%		1.79	%		1.83	%		1.85	%		1.90	%
Portfolio turnover rate		66	%		67	%		74	%		60	%		52	%
Net assets at end of year (in 000’s)	$	408,078		$	402,714		$	403,968		$	375,521		$	380,186

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.32		$	10.31		$	7.80		$	7.45		$	6.75
Net investment income (loss) (a)		0.00	‡		0.00	‡		0.03			0.00	‡		(0.01	)
Net realized and unrealized gain (loss) on investments		0.89			1.51			2.50			0.51			0.71
Total from investment operations		0.89			1.51			2.53			0.51			0.70
Less dividends and distributions:
From net investment income		—			—			(0.02	)		—			—
From net realized gain on investments		(1.06	)		(0.50	)		—			(0.16	)		—
Total dividends and distributions		(1.06	)		(0.50	)		(0.02	)		(0.16	)		—
Net asset value at end of year	$	11.15		$	11.32		$	10.31		$	7.80		$	7.45
Total investment return (b)		8.36	%		15.26	%		32.41	%		7.15	%		10.37	% (c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.02	%		0.02	%		0.38	%		0.03	%		(0.09	%)
Net expenses		0.74	%		0.74	%		0.77	%		0.79	%		0.81	%
Expenses (before waiver/reimbursement)		0.74	%		0.74	%		0.77	%		0.79	%		0.82	%
Portfolio turnover rate		66	%		67	%		74	%		60	%		52	%
Net assets at end of year (in 000’s)	$	12,150,253		$	14,361,006		$	13,254,459		$	11,215,464		$	8,465,658

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges.

(c) Total investment return may reflect adjustments to conform to generally accepted accounting principles.

	Year ended October 31,
Class R1	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	11.17		$	10.19		$	7.72		$	7.38		$	6.70
Net investment income (loss) (a)		(0.01	)		(0.01	)		0.02			(0.01	)		(0.02	)
Net realized and unrealized gain (loss) on investments		0.89			1.49			2.47			0.51			0.70
Total from investment operations		0.88			1.48			2.49			0.50			0.68
Less dividends and distributions:
From net investment income		—			—			(0.02	)		—			—
From net realized gain on investments		(1.06	)		(0.50	)		—			(0.16	)		—
Total dividends and distributions		(1.06	)		(0.50	)		(0.02	)		(0.16	)		—
Net asset value at end of year	$	10.99		$	11.17		$	10.19		$	7.72		$	7.38
Total investment return (b)		8.39	%		15.14	%		32.27	%		6.94	%		10.15	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.08	%)		(0.08	%)		0.28	%		(0.08	%)		(0.21	%)
Net expenses		0.84	%		0.84	%		0.87	%		0.89	%		0.91	%
Expenses (before waiver/reimbursement)		0.84	%		0.84	%		0.87	%		0.89	%		0.92	%
Portfolio turnover rate		66	%		67	%		74	%		60	%		52	%
Net assets at end of year (in 000’s)	$	1,952,248		$	2,225,940		$	2,287,242		$	1,950,015		$	1,140,164

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R1 shares are not subject to sales charges.

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class R2	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.92		$	9.99		$	7.57		$	7.26		$	6.61
Net investment income (loss) (a)		(0.03	)		(0.03	)		0.00	‡		(0.02	)		(0.03	)
Net realized and unrealized gain (loss) on investments		0.85			1.46			2.42			0.49			0.68
Total from investment operations		0.82			1.43			2.42			0.47			0.65
Less dividends and distributions:
From net investment income		—			—			(0.00	)‡		—			—
From net realized gain on investments		(1.06	)		(0.50	)		—			(0.16	)		—
Total dividends and distributions		(1.06	)		(0.50	)		(0.00	)‡		(0.16	)		—
Net asset value at end of year	$	10.68		$	10.92		$	9.99		$	7.57		$	7.26
Total investment return (b)		8.00	%		14.93	%		31.88	%		6.77	%		9.83	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.32	%)		(0.33	%)		0.03	%		(0.32	%)		(0.46	%)
Net expenses		1.09	%		1.09	%		1.12	%		1.14	%		1.16	%
Expenses (before waiver/reimbursement)		1.09	%		1.09	%		1.12	%		1.14	%		1.17	%
Portfolio turnover rate		66	%		67	%		74	%		60	%		52	%
Net assets at end of year (in 000’s)	$	674,630		$	984,295		$	1,014,655		$	854,119		$	701,183

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.

	Year ended October 31,
Class R3	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	10.67		$	9.80		$	7.45		$	7.16		$	6.53
Net investment income (loss) (a)		(0.06	)		(0.06	)		(0.02	)		(0.04	)		(0.05	)
Net realized and unrealized gain (loss) on investments		0.84			1.43			2.37			0.49			0.68
Total from investment operations		0.78			1.37			2.35			0.45			0.63
Less dividends and distributions:
From net investment income		—			—			(0.00	)‡		—			—
From net realized gain on investments		(1.06	)		(0.50	)		—			(0.16	)		—
Total dividends and distributions		(1.06	)		(0.50	)		(0.00	)‡		(0.16	)		—
Net asset value at end of year	$	10.39		$	10.67		$	9.80		$	7.45		$	7.16
Total investment return (b)		7.79	%		14.59	%		31.63	%		6.44	%		9.65	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.57	%)		(0.57	%)		(0.20	%)		(0.57	%)		(0.70	%)
Net expenses		1.34	%		1.34	%		1.37	%		1.39	%		1.41	%
Expenses (before waiver/reimbursement)		1.34	%		1.34	%		1.37	%		1.39	%		1.42	%
Portfolio turnover rate		66	%		67	%		74	%		60	%		52	%
Net assets at end of year (in 000’s)	$	114,118		$	158,222		$	219,158		$	205,329		$	138,883

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.

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

	Year ended October 31,						June 17, 2013** through October 31,
Class R6	2015			2014			2013
Net asset value at beginning of period	$	11.33		$	10.31		$	9.02
Net investment income (loss) (a)		0.01			0.01			0.00	‡
Net realized and unrealized gain (loss) on investments		0.90			1.51			1.29
Total from investment operations		0.91			1.52			1.29
Less distributions:
From net realized gain on investments		(1.06	)		(0.50	)		—
Net asset value at end of period	$	11.18		$	11.33		$	10.31
Total investment return (b)		8.55	%		15.36	%		14.30	%(c)
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.11	%		0.10	%		0.04	%††
Net expenses		0.62	%		0.62	%		0.62	%††
Portfolio turnover rate		66	%		67	%		74	%
Net assets at end of period (in 000’s)	$	1,311,034		$	738,186		$	147,625

** Inception date.

†† Annualized.

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the period.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R6 shares are not subject to sales charges.

(c) Total investment return is not annualized.

20 MainStay Large Cap Growth Fund The notes to the financial statements are an integral part of,
and should be read in conjunction with, the financial statements.

Notes to Financial Statements

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay Large Cap 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 currently offers nine classes of shares. Class A shares commenced operations on July 1, 1995. Class B, Class C, Class I, Class R1 and Class R2 shares commenced operations on April 1, 2005. Class R3 shares commenced operations on April 28, 2006. Investor Class shares commenced operations on February 28, 2008. Class R6 shares commenced operations on June 17, 2013. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 R1, Class R2, Class R3 and Class R6 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The nine classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A, Investor Class, Class R2 and Class R3 shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I, Class R1 and Class R6 shares are not subject to a distribution and/or service fee. Class R1, Class R2 and Class R3 shares are subject to a shareholder service fee. This is in addition to any fees paid under a distribution plan, where applicable.

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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisor (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisor or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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

21

Notes to Financial Statements (continued)

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 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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	•    Reported trades
•    Two-sided markets	•    Issuer spreads
•    Bids/offers	•    Benchmark securities
•    Industry and economic events	•    Reference data (corporate actions or material event notices)
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisor reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities for which

market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, there were no securities held by the Fund that were fair valued in such a manner.

Equity securities and Exchange-Traded Funds 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. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Temporary cash investments acquired 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. Other temporary cash investments which 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. These securities are generally categorized as Level 2 in the hierarchy.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C)  Dividends and Distributions to Shareholders.  Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income and distributions from net realized capital and currency gains, if any, at least annually. Unless the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in

22 MainStay Large Cap Growth Fund

accordance with federal income tax regulations and may differ from GAAP.

(D)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

(E)  Expenses.  Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and/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, management makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

(G)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisor will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(H)  Securities Lending.  In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set

forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

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

Note 3–Fees and Related Party Transactions

(A)  Manager and Subadvisor.  New York Life 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 a portion of the compensation of the Chief Compliance Officer of the Fund. Winslow Capital Management, LLC (“Winslow” or “Subadvisor”), a registered investment adviser, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of a Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and Winslow, New York Life Investments pays for the services of the Subadvisor.

23

Notes to Financial Statements (continued)

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.75% up to $500 million; 0.725% from $500 million to $750 million; 0.71% from $750 million to $1 billion; 0.70% from $1 billion to $2 billion; 0.66% from $2 billion to $3 billion; 0.61% from $3 billion to $7 billion; 0.585% from $7 billion to $9 billion; and 0.575% in excess of $9 billion.

New York Life Investments has contractually agreed to waive fees and/or reimburse expenses of Class I shares so that Total Annual Fund Operating Expenses of Class I shares do not exceed 0.88% of the Fund’s average daily net assets. This agreement will remain in effect until February 28, 2016, 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 the expenses of Class R1 shares so that Total Annual Fund Operating Expenses do not exceed 0.95% of its average daily net assets. This voluntary waiver or reimbursement may be discontinued at any time. Total Annual Fund Operating Expenses excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses.

During the year ended October 31, 2015, the effective management fee rate was 0.60%.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $115,165,899.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly distribution 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, the Distributor receives a

monthly distribution and/or service fee from the Class R3 shares at an annual rate of 0.50% of the average daily net assets of the Class R3 shares. Class I, 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 a distribution plan, where applicable.

During the year ended October 31, 2015, shareholder service fees incurred by the Fund were as follows:

Class R1	$	2,103,095
Class R2		868,424
Class R3		139,039

(C)  Sales Charges.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $116,960 and $20,577, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares of $3,787, $168, $65,197 and $22,611, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	1,461,378
Investor Class		318,401
Class B		83,929
Class C		672,292
Class I		15,240,491
Class R1		2,458,058
Class R2		1,014,497
Class R3		162,553

(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

24 MainStay Large Cap Growth Fund

implemented a small account fee on certain types of accounts. Certain shareholders with an account balance of less than $1,000 are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations.

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary Income	Accumulated Capital and Other Gain (Loss)		Other Temporary Differences			Unrealized Appreciation (Depreciation)		Total Accumulated Gain (Loss)
$—	$	2,061,767,944	$	(9,676,580	)	$	6,249,744,651	$	8,301,836,015

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments. The other temporary differences are primarily due to late year loss deferrals.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments	Additional Paid-In Capital
$—	$(306,122,367)	$306,122,367

The reclassifications for the Fund are primarily due to distributions in connection with redemption of fund shares.

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	206,173,770	$	—
Long-Term Capital Gain		1,670,514,816		933,879,791
Total	$	1,876,688,586	$	933,879,791

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

Note 6–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment

amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

Note 7–Purchases and Sales of Securities (in 000’s)

During the year ended October 31, 2015, purchases and sales of securities, other than short-term securities, were $12,551,687 and $16,399,015, respectively.

Note 8–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		21,810,581		$	226,524,859
Shares issued to shareholders in reinvestment of dividends and distributions		10,872,016			110,133,517
Shares redeemed		(40,165,642	)		(416,439,846	)
Net increase (decrease) in shares outstanding before conversion		(7,483,045	)		(79,781,470	)
Shares converted into Class A (See Note 1)		813,049			8,547,122
Shares converted from Class A (See Note 1)		(317,270	)		(3,204,527	)
Net increase (decrease)		(6,987,266	)	$	(74,438,875	)
Year ended October 31, 2014:
Shares sold		24,856,559		$	250,626,935
Shares issued to shareholders in reinvestment of dividends and distributions		7,410,104			71,656,098
Shares redeemed		(75,587,837	)		(777,204,305	)
Net increase (decrease) in shares outstanding before conversion		(43,321,174	)		(454,921,272	)
Shares converted into Class A (See Note 1)		1,055,625			10,735,362
Shares converted from Class A (See Note 1)		(74,778	)		(767,973	)
Net increase (decrease)		(42,340,327	)	$	(444,953,883	)

25

Notes to Financial Statements (continued)

Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		2,274,877		$	23,481,303
Shares issued to shareholders in reinvestment of dividends and distributions		1,911,381			19,228,420
Shares redeemed		(5,699,442	)		(58,869,533	)
Net increase (decrease) in shares outstanding before conversion		(1,513,184	)		(16,159,810	)
Shares converted into Investor Class (See Note 1)		792,362			8,017,661
Shares converted from Investor Class (See Note 1)		(718,721	)		(7,522,265	)
Net increase (decrease)		(1,439,543	)	$	(15,664,414	)
Year ended October 31, 2014:
Shares sold		1,918,580		$	19,445,347
Shares issued to shareholders in reinvestment of dividends and distributions		1,060,392			10,190,366
Shares redeemed		(5,626,708	)		(56,267,073	)
Net increase (decrease) in shares outstanding before conversion		(2,647,736	)		(26,631,360	)
Shares converted into Investor Class (See Note 1)		716,347			7,290,183
Shares converted from Investor Class (See Note 1)		(911,204	)		(9,221,550	)
Net increase (decrease)		(2,842,593	)	$	(28,562,727	)
Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		770,715		$	7,275,764
Shares issued to shareholders in reinvestment of dividends and distributions		519,992			4,802,784
Shares redeemed		(974,250	)		(9,169,284	)
Net increase (decrease) in shares outstanding before conversion		316,457			2,909,264
Shares converted from Class B (See Note 1)		(625,907	)		(5,837,991	)
Net increase (decrease)		(309,450	)	$	(2,928,727	)
Year ended October 31, 2014:
Shares sold		557,335		$	5,214,891
Shares issued to shareholders in reinvestment of dividends and distributions		311,947			2,795,210
Shares redeemed		(1,186,253	)		(11,113,025	)
Net increase (decrease) in shares outstanding before conversion		(316,971	)		(3,102,924	)
Shares converted from Class B (See Note 1)		(851,905	)		(8,036,022	)
Net increase (decrease)		(1,168,876	)	$	(11,138,946	)

Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		8,009,787		$	75,101,486
Shares issued to shareholders in reinvestment of dividends and distributions		2,080,388			19,181,176
Shares redeemed		(7,968,035	)		(75,209,893	)
Net increase (decrease)		2,122,140		$	19,072,769
Year ended October 31, 2014:
Shares sold		4,532,756		$	41,998,439
Shares issued to shareholders in reinvestment of dividends and distributions		1,003,771			8,993,784
Shares redeemed		(8,903,835	)		(83,585,192	)
Net increase (decrease)		(3,367,308	)	$	(32,592,969	)
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		217,439,008		$	2,348,916,340
Shares issued to shareholders in reinvestment of dividends and distributions		92,488,739			975,756,195
Shares redeemed		(489,304,127	)		(5,312,636,978	)
Net increase (decrease)		(179,376,380	)	$	(1,987,964,443	)
Year ended October 31, 2014:
Shares sold		302,995,085		$	3,186,848,125
Shares issued to shareholders in reinvestment of dividends and distributions		46,695,836			467,425,319
Shares redeemed		(366,622,694	)		(3,852,410,028	)
Net increase (decrease)		(16,931,773	)	$	(198,136,584	)
Class R1	Shares			Amount
Year ended October 31, 2015:
Shares sold		26,569,433		$	284,821,244
Shares issued to shareholders in reinvestment of dividends and distributions		19,995,031			207,948,321
Shares redeemed		(68,052,816	)		(728,357,325	)
Net increase (decrease)		(21,488,352	)	$	(235,587,760	)
Year ended October 31, 2014:
Shares sold		33,171,094		$	343,915,115
Shares issued to shareholders in reinvestment of dividends and distributions		11,099,576			109,774,812
Shares redeemed		(69,441,414	)		(719,944,817	)
Net increase (decrease)		(25,170,744	)	$	(266,254,890	)

26 MainStay Large Cap Growth Fund

Class R2	Shares			Amount
Year ended October 31, 2015:
Shares sold		15,855,834		$	164,291,461
Shares issued to shareholders in reinvestment of dividends and distributions		6,586,660			66,722,868
Shares redeemed		(49,429,038	)		(520,943,135	)
Net increase (decrease)		(26,986,544	)	$	(289,928,806	)
Year ended October 31, 2014:
Shares sold		17,586,697		$	177,085,796
Shares issued to shareholders in reinvestment of dividends and distributions		3,763,451			36,430,206
Shares redeemed		(32,714,058	)		(332,415,044	)
Net increase (decrease)		(11,363,910	)	$	(118,899,042	)
Class R3	Shares			Amount
Year ended October 31, 2015:
Shares sold		2,585,484		$	26,221,607
Shares issued to shareholders in reinvestment of dividends and distributions		1,388,579			13,719,161
Shares redeemed		(7,816,197	)		(79,215,887	)
Net increase (decrease)		(3,842,134	)	$	(39,275,119	)
Year ended October 31, 2014:
Shares sold		3,264,614		$	32,235,062
Shares issued to shareholders in reinvestment of dividends and distributions		1,039,860			9,868,280
Shares redeemed		(11,834,675	)		(117,401,575	)
Net increase (decrease)		(7,530,201	)	$	(75,298,233	)
Class R6	Shares			Amount
Year ended October 31, 2015:
Shares sold		63,215,922		$	678,929,508
Shares issued to shareholders in reinvestment of dividends and distributions		6,566,938			69,346,874
Shares redeemed		(17,665,445	)		(191,161,564	)
Net increase (decrease)		52,117,415		$	557,114,818
Year ended October 31, 2014:
Shares sold		58,148,183		$	614,858,176
Shares issued to shareholders in reinvestment of dividends and distributions		1,548,526			15,500,740
Shares redeemed		(8,873,853	)		(94,005,209	)
Net increase (decrease)		50,822,856		$	536,353,707

Note 9–Litigation

On December 23, 2014, Cynthia Ann Redus-Tarchis and others filed a complaint against New York Life Investments in the United States District Court for the District of New Jersey. The complaint was brought derivatively on behalf of the MainStay Marketfield Fund, the MainStay Large Cap Growth Fund, and the MainStay High Yield Corporate Bond Fund and alleges that New York Life Investments violated Section 36(b) of the 1940 Act by charging excessive investment management fees. The plaintiffs seek monetary damages and other relief from New York Life Investments. New York Life Investments believes that the case has no merit, and intends to vigorously defend the matter.

On May 6, 2015, a second amended complaint was filed which, among other things, added MainStay High Yield Opportunities Fund as an additional Fund on whose behalf the complaint was brought. New York Life Investments filed a motion to dismiss the amended complaint. This motion was denied on October 28, 2015. New York Life Investments filed an answer to the amended complaint on November 30, 2015.

Note 10–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note 11–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

27

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay Large Cap Growth Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay Large Cap Growth Fund of The MainStay Funds as of October 31, 2015, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

28 MainStay Large Cap Growth Fund

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years. Accordingly, the Fund paid $1,976,637,183 as long term capital distribution.

For the fiscal year ended October 31, 2015 the Fund designated approximately $142,592,605 under the Internal Revenue Code as Qualified dividend Income eligible for reduced tax rates.

The dividends paid by the Fund during the fiscal year ended October 31, 2015, should be multiplied by 65.5% to arrive at the amount eligible for the corporate dividends received deduction.

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

29

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

30 MainStay Large Cap Growth Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

31

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

32 MainStay Large Cap Growth Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

33

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

34 MainStay Large Cap Growth Fund

MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673153 MS291-15 MSLG11-12/15 (NYLIM) NL221

MainStay MAP Fund

Message from the President and Annual Report

October 31, 2015

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Message from the President

The 12-month period ended October 31, 2015, was marked by increased market volatility, particularly after the People’s Bank of China devalued the Chinese yuan on August 11, 2015. Following the devaluation, many stock markets around the world dropped substantially. Some took months to recover.

U.S. large-cap stocks were able to end the reporting period in positive territory. Concerns that the Federal Reserve might raise the federal funds target rate weighed on many investors during the reporting period. Successive developments in employment, inflation and the stock market, however, led the Federal Reserve to repeatedly postpone a tightening move. According to Russell data, U.S. growth stocks outperformed U.S. value stocks at all capitalization levels during the reporting period.

Not all market segments were as fortunate. Emerging-market stocks saw double-digit declines during the reporting period, as slowing growth in China, low oil and gas prices, and slack demand for metals led to fewer exports. International markets overall were somewhat better, but also slightly negative. Some European markets, however, delivered positive returns for the reporting period.

The U.S. bond market saw mixed results. Yields on most short-term U.S. Treasury securities rose, while yields on U.S. Treasury securities of five years and longer declined. High-yield corporate bonds and convertible securities generally declined during the reporting period, while leveraged loans showed positive overall performance. Additionally, municipal bonds generally advanced during the reporting period.

The stock and bond markets are constantly changing, often in unexpected ways. That’s why at MainStay, we encourage investors to view short-term performance in light of their long-term financial goals.

Rather than shifting investments every time the market moves or interest rates change, the portfolio managers of the MainStay Funds seek to pursue the investment objectives of their respective Funds. They may draw upon time-tested investment strategies, risk-management techniques and their own market experience as they seek to position their Funds for the long-term benefit of our shareholders.

The following pages provide more detailed information about the specific markets, securities and investment decisions that most affected your MainStay Fund during the 12 months ended October 31, 2015. We hope that you will carefully review this report and use it as you consider ways to pursue your personal financial goals and objectives.

Sincerely,

Stephen P. Fisher

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 Annual Report

Table of Contents

Annual Report
Investment and Performance Comparison	5
Portfolio Management Discussion and Analysis	9
Portfolio of Investments	13
Financial Statements	17
Notes to Financial Statements	24
Report of Independent Registered Public Accounting Firm	32
Federal Income Tax Information	33
Proxy Voting Policies and Procedures and Proxy Voting Record	33
Shareholder Reports and Quarterly Portfolio Disclosure	33
Board of Trustees, Officers and Advisory Board Members	34

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

Investment and Performance Comparison¹(Unaudited)

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

Average Annual Total Returns for the Year Ended October 31, 2015

Class	Sales Charge		One Year			Five Years			Ten Years			Gross Expense Ratio2
Class A Shares	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–3.80 1.80	%		9.98 11.23	%		6.25 6.85	%		1.11 1.11	%
Investor Class Shares3	Maximum 5.5% Initial Sales Charge	With sales charges Excluding sales charges		–3.96 1.63			9.78 11.03			6.10 6.70			1.26 1.26
Class B Shares	Maximum 5% CDSC if Redeemed Within the First Six Years of Purchase	With sales charges Excluding sales charges		–3.70 0.89			9.93 10.20			5.90 5.90			2.01 2.01
Class C Shares	Maximum 1% CDSC if Redeemed Within One Year of Purchase	With sales charges Excluding sales charges		–0.03 0.89			10.20 10.20			5.90 5.90			2.01 2.01
Class I Shares	No Sales Charge			2.06			11.51			7.14			0.86
Class R1 Shares	No Sales Charge			1.94			11.39			7.02			0.96
Class R2 Shares	No Sales Charge			1.68			11.11			6.77			1.21
Class R3 Shares4	No Sales Charge			1.42			10.84			6.49			1.46

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

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

3. Performance figures for Investor Class shares, first offered on February 28, 2008, include the historical performance of Class A shares through February 27, 2008, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Investor Class shares would likely have been different.

4. Performance figures for Class R3 shares, which were first offered on April 28, 2006, include the historical performance of Class A shares through April 27, 2006, adjusted for differences in certain expenses and fees. Unadjusted, the performance shown for Class R3 shares would likely have been different.

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

5

Benchmark Performance	One Year		FIve Years			Ten Years
Russell 3000® Index5		4.49%		14.14	%		7.94	%
S&P 500® Index6		5.20		14.33			7.85
Average Lipper Large-Cap Core Fund7		3.35		12.68			7.02

5. The Russell 3000^® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000^® Index is the Fund’s broad-based securities market index for comparison purposes. Total returns assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index.

6. “S&P 500^®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500^® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. The S&P 500^® Index is the Fund’s secondary benchmark. Results assume reinvestment of all income and capital gains. An investment cannot be made directly in an index.

7. The Average Lipper Large-Cap Core Fund is representative of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s U.S. Diversified Equity large-cap floor. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have average characteristics compared to the S&P 500^® Index. This benchmark is a product of Lipper Inc. Lipper Inc. is an independent monitor of fund performance. Results are based on average total returns of similar funds with all dividend and capital gain distributions reinvested.

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

6 MainStay MAP Fund

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

The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2015, to October 31, 2015, 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 May 1, 2015, to October 31, 2015.

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 October 31, 2015. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then

multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

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

Share Class	Beginning Account Value 5/1/15		Ending Account Value (Based on Actual Returns and Expenses) 10/31/15		Expenses Paid During Period1		Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/15		Expenses Paid During Period1
Class A Shares	$	1,000.00	$	971.50	$	5.52	$	1,019.60	$	5.65
Investor Class Shares	$	1,000.00	$	970.60	$	6.21	$	1,018.90	$	6.36
Class B Shares	$	1,000.00	$	967.10	$	9.92	$	1,015.10	$	10.16
Class C Shares	$	1,000.00	$	967.10	$	9.97	$	1,015.10	$	10.21
Class I Shares	$	1,000.00	$	972.80	$	4.28	$	1,020.90	$	4.38
Class R1 Shares	$	1,000.00	$	972.30	$	4.77	$	1,020.40	$	4.89
Class R2 Shares	$	1,000.00	$	970.90	$	6.01	$	1,019.10	$	6.16
Class R3 Shares	$	1,000.00	$	969.90	$	7.25	$	1,017.80	$	7.43

1. Expenses are equal to the Fund’s annualized expense ratio of each class (1.11% for Class A, 1.25% for Investor Class, 2.00% for Class B, 2.01% for Class C, 0.86% for Class I, 0.96% for Class R1, 1.21% for Class R2 and 1.46% for Class R3) multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period.

7

Industry Composition as of October 31, 2015 (Unaudited)

Media	9.2	%
Oil, Gas & Consumable Fuels	7.0
Capital Markets	6.6
Pharmaceuticals	6.4
Chemicals	5.9
Technology Hardware, Storage & Peripherals	5.0
Aerospace & Defense	4.6
Consumer Finance	4.1
Health Care Providers & Services	3.9
Banks	3.8
Software	3.2
Insurance	3.1
Health Care Equipment & Supplies	3.0
Internet Software & Services	2.8
Hotels, Restaurants & Leisure	2.1
Industrial Conglomerates	2.0
Real Estate Investment Trusts	2.0
Beverages	1.9
Food & Staples Retailing	1.8
Biotechnology	1.7
IT Services	1.7
Auto Components	1.6
Machinery	1.6
Specialty Retail	1.5
Diversified Financial Services	1.4

Household Durables	1.4	%
Road & Rail	1.2
Semiconductors & Semiconductor Equipment	1.0
Wireless Telecommunication Services	0.8
Electronic Equipment, Instruments & Components	0.7
Internet & Catalog Retail	0.7
Real Estate Management & Development	0.7
Diversified Telecommunication Services	0.5
Commercial Services & Supplies	0.4
Electrical Equipment	0.4
Multi-Utilities	0.4
Tobacco	0.4
Trading Companies & Distributors	0.4
Construction Materials	0.3
Energy Equipment & Services	0.3
Construction & Engineering	0.2
Household Products	0.2
Food Products	0.1
Communications Equipment	0.0	‡
Electric Utilities	0.0	‡
Gas Utilities	0.0	‡
Short-Term Investment	1.7
Other Assets, Less Liabilities	0.3
	100.0	%

See Portfolio of Investments beginning on page 13 for specific holdings within these categories.

‡ Less than one-tenth of a percent.

Top Ten Holdings or issuers held as of October 31, 2015 (excluding short-term investment) (Unaudited)

1. Apple, Inc.

2. Liberty Media Corp.

3. Medtronic PLC

4. American Express Co.

5. Allergan PLC

  6. Monsanto Co.

  7. Chevron Corp.

  8. Comcast Corp. Class A

  9. Boeing Co. (The)

10. Alphabet, Inc. (Google)

8 MainStay MAP Fund

Portfolio Management Discussion and Analysis (Unaudited)

Questions answered by portfolio managers Roger Lob, Christopher Mullarkey and James Mulvey of the Fund’s Subadvisor Markston International LLC (“Markston International”) and by portfolio managers Jerrold K. Senser, CFA, Thomas M. Cole, CFA, Andrew P. Starr, CFA, Matthew T. Swanson, CFA, and J. Christian Kirtley, CFA, of the Fund’s Subadvisor Institutional Capital LLC (“ICAP”).

How did MainStay MAP Fund perform relative to its benchmarks and peers during the 12 months ended October 31, 2015?

Excluding all sales charges, MainStay MAP Fund returned 1.80% for Class A shares, 1.63% for Investor Class shares and 0.89% for Class B and Class C shares for the 12 months ended October 31, 2015. Over the same period, Class I shares returned 2.06%, Class R1 shares returned 1.94%, Class R2 shares returned 1.68% and Class R3 shares returned 1.42%. For the 12 months ended October 31, 2015, all share classes underperformed the 4.49% return of the Russell 3000^® Index,¹ which is the Fund’s primary benchmark, and the 5.20% return of the S&P 500^® Index,¹ which is the Fund’s secondary benchmark. For the 12 months ended October 31, 2015, all share classes underperformed the 3.35% return of the Average Lipper² Large-Cap Core Fund. See page 5 for Fund returns with applicable sales charges.

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

Effective September 29, 2015, J. Christian Kirtley became a portfolio manager of the ICAP portion of the Fund. During the reporting period, ICAP also announced that effective September 30, 2016, Jerrold K. Senser will no longer serve as a portfolio manager of the Fund. Thomas M. Cole, Andrew P. Starr, Matthew T. Swanson and J. Christian Kirtley will continue to manage the ICAP portion of the Fund.

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

Markston International

The performance of our portion of the Fund relative to the Russell 3000^® Index was primarily a result of strong stock selection. Three large holdings in our portion of the Fund were acquired at a premium, which helped relative performance.

ICAP

In our portion of the Fund that invests in U.S. equities, a number of key drivers affected performance relative to the S&P 500^® Index. Favorable stock selection in the health care and industrials sectors added to relative performance. Stock selection in the consumer discretionary and materials sectors, however, detracted from relative performance. Our portion of the Fund that invests in U.S. equities benefited from an underweight position relative to the S&P 500^® Index in the energy sector (which underperformed the Index during the reporting period). On the other hand, an underweight position in the

information technology sector (which outperformed the Index during the reporting period) detracted from relative performance.

In our portion of the Fund that invests in global equities, consumer staples, health care and information technology were the best performing sectors on an absolute basis. In this portion of the Fund, the weakest-performing sectors on an absolute basis were utilities, energy and consumer discretionary.

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

Markston International

During the reporting period, the strongest positive contributions to relative performance in our portion of the Fund came from the health care, industrials and information technology sectors. (Contributions take weightings and total returns into account.) In each case, the performance was driven by stock selection. This was particularly true in health care, where our portion of the Fund held an underweight position relative to the Russell 3000^® Index. The sectors that detracted the most from relative performance in our portion of the Fund were energy and materials, along with our allocation to cash. In each case, our portion of the Fund held overweight positions relative to Index, and these weightings detracted from performance.

ICAP

In our portion of the Fund that invests in U.S. equities, the sectors that made the strongest positive contributions to performance relative to the S&P 500^® Index were health care, industrials and energy. Favorable stock selection was the primary driver in the health care and industrials sectors, while an underweight position in the energy sector added value. The sectors that detracted the most from relative performance were consumer discretionary, materials and information technology. Stock selection was the primary driver for consumer discretionary and materials, while an underweight position in information technology detracted from relative performance.

In our portion of the Fund that invests in global equities, the top contributing sectors on an absolute basis were health care, information technology and consumer staples. The sectors that detracted the most from absolute performance were consumer discretionary, materials and utilities.

1. See footnote on page 6 for more information on this index.

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

9

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

Markston International

In our portion of the Fund, the strongest positive contributors to absolute performance were Aetna, Apple and Boeing. Shares of health care insurer Aetna performed well as the industry benefited from the increasing number of insured that resulted from health care reform. In addition, there was significant consolidation within the health care insurance sector that drove the stock’s valuation higher. Shares of Apple, a leading consumer electronics and computer company, performed well after concerns abated that its product cycle and innovation had stalled. The company continued to experience strong revenue growth and announced that it would introduce an electric car in 2019. Shares of aircraft manufacturer Boeing performed well as global demand for aircraft remained strong. In addition, the company exceeded its 2014 free cash flow targets by roughly $2 billion and reaffirmed 2015 guidance for more than $9 billion in operating cash flow.

The stocks that detracted the most from absolute performance in our portion of the Fund were American Express, Union Pacific and Monsanto. Credit card issuer American Express detracted from performance after its exclusive co-brand relationship with Costco Wholesale ended in March 2015. The company also received an unfavorable antitrust ruling in the Justice Department’s case against American Express. The company had allegedly sought to prevent merchants from steering customers toward lower-cost cards. Railroad company Union Pacific detracted from performance because of declining volumes that led to operational inefficiencies. The drop in energy prices also hurt Union Pacific, as demand for coal (a substitute for oil and gas) and sand (a key ingredient in hydraulic fracking) declined. Agricultural chemical and seed company Monsanto detracted from performance as its revenues contracted from the prior fiscal year. In an effort to boost growth, Monsanto made an unsolicited bid for Sygentia AG, which was rejected.

ICAP

In our portion of the Fund that invests in U.S. equities, the stocks that made the strongest positive contributions to the Fund’s absolute performance were health care company Valeant Pharmaceuticals International, aerospace manufacturer Boeing and Alphabet (previously Google), the dominant provider of Internet search services. We viewed Valeant Pharmaceuticals International as a company with a unique, shareholder-friendly approach. The stock benefited from the integration of recent acquisition Bausch & Lomb, along with the market perception that Valeant had additional targets for the coming year. We sold the position from our portion of the Fund as it neared our price

target. Boeing saw strong delivery growth and production-cost improvement on the 787 Dreamliner, which enabled the company to generate dramatically higher free cash flow. Boeing was planning to return 80% of free cash flow to shareholders. The company increased its dividend by 25% and initiated a $12 billion share buyback program during the reporting period. With a free cash flow yield estimated around 9%, we viewed the stock as attractively valued. Alphabet showed accelerating growth in its core businesses and a new focus on maximizing shareholder value voiced by the company’s new chief financial officer. YouTube, a subsidiary of Alphabet, saw its revenue grow 40% year-over-year and its operating margins improve. We sold the position in Alphabet from our portion of the Fund following a period of strength.

Primary detractors from absolute performance in our portion of the Fund that invests in U.S. equities included cable network operator Viacom, appliance manufacturer Whirlpool and seed technology company Monsanto. Viacom suffered from declining advertising revenue and ratings. In addition, risks to affiliate-fee growth increased. We sold the position from our portion of the Fund during the reporting period. Whirlpool faced weaker-than-expected Brazilian demand and was hurt by the strength of the U.S. dollar. Regions outside Latin America, including North America, Europe and Asia, continued to do well. We believed that the stock could benefit if synergies materialized and raw material costs declined. Weak conditions in Latin America and a decline in the Brazilian real weighed on Monsanto. We did not sell the stock because we anticipated that growth in seeds and traits (modifications for crop enhancement) could exceed expectations, led by new product launches, improved product mix and trait upgrades.

In our portion of the Fund that invests in global equities, the stocks that made the strongest positive contributions to the Fund’s absolute performance were Boeing and Alphabet, along with Japanese tire manufacturer Bridgestone. Falling costs for raw materials and a weaker yen helped margins and profits at Bridgestone, and we viewed the company as committed to increasing its dividend payout.

Primary detractors from absolute performance in our portion of the Fund that invests in global equities included German power provider E.ON, French manufacturer of steel tubing for the oil & gas industry Vallourec and previously discussed Viacom. E.ON’s stock was pressured by low power prices. The company also decided to retain its nuclear business and take an impairment charge rather than transfer the charge to Uniper, a company spin-off. Importantly, the corporate split is moving forward as planned, leading us to believe that the split may unlock substantial value. We anticipated that management’s initiatives to pursue more asset sales and debt reduction could ultimately

10 MainStay MAP Fund

generate higher returns for shareholders. Vallourec’s results and outlook were hindered primarily by the company’s exposure to the energy sector. We sold the position from our portion of the Fund to pursue other stocks that we viewed as more attractive because they had stronger investment catalysts. We also sold our position in Viacom during the reporting period.

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

Markston International

During the reporting period, our portion of the Fund purchased shares of diversified media company Twentieth Century Fox and Swiss agribusiness company Sygenta. We sold our stake in Cablevision Systems after the company agreed to be bought by French company Altice. Our portion of the Fund also sold its position in pharmaceuticals company Hospira after Pfizer agreed to purchase the company at a substantial premium.

ICAP

We continued to look for stocks with attractive valuations and specific catalysts that we believed could trigger appreciation over a 12- to 18-month time frame.

In both our domestic and global equity portions of the Fund, we added a position in Ally Financial. Formerly a part of General Motors, Ally Financial now operates as an independent entity focused exclusively on U.S. auto lending. During the reporting period, the company’s returns were hampered by very high-cost financing that the company took out in the midst of the financial crisis. As the company continued to scale its online banking franchise, we believed that the company was progressing toward finalizing the cleanup of its capital structure. If so, the move could enhance Ally Financial’s return on equity. We also added a position in integrated energy company Chevron. The stock had lagged because of low energy prices and a related projected free cash flow deficit. The company also faced risks to production volume growth associated with several large projects. With valuation near all-time lows on a number of metrics, we believed that Chevron could rein in capital expenditures and operating costs to improve its position.

In our portion of the Fund that invests in global equities, a position was initiated in Royal Bank of Scotland. The company has been streamlining itself to become a U.K.-focused retail and commercial bank. We believed that management’s cost-reduction and restructuring initiatives could free up significant levels of excess capital, which could ultimately be returned to shareholders.

In addition to the stocks previously mentioned, data storage provider NetApp and automaker Ford Motor were sold from both our domestic and global equity portions of the Fund in favor of

stocks that we believed had greater potential upside and stronger catalysts. In both portions of the Fund we also sold pharmaceutical company Bristol-Myers Squibb and managed health care company UnitedHealth Group as they neared their respective price targets and showed limited upside potential.

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

Markston International

During the reporting period, our portion of the Fund reduced its weightings in the energy sector and cash relative to the Russell 3000^® Index. We increased our sector weightings relative to the Index in consumer discretionary and information technology.

ICAP

In our portion of the Fund that invests in U.S. equities, we increased sector exposure relative to the S&P 500^® Index in energy and financials. In the energy sector, we moved from an underweight position relative to the Index to an overweight position. In the financials sector, we increased our overweight position relative to the Index. We decreased our sector weightings relative to the S&P 500^® Index in information technology and utilities. In each case, we moved to a position that was more substantially underweight relative to the Index.

In our portion of the Fund that invests in global equities, we increased our absolute weightings in the materials and health care sectors, and we decreased our weightings in the industrials and utilities sectors.

How was the Fund positioned at the end of the reporting period?

Markston International

As of October 31, 2015, our portion of the Fund held overweight positions relative to the Russell 3000^® Index in the consumer discretionary and financials sectors. As of the same date, our portion of the Fund held underweight positions relative to the Index in the health care and utilities sectors.

ICAP

As of October 31, 2015, our portion of the Fund that invests in U.S. equities was most significantly overweight relative to the S&P 500^® Index in the consumer discretionary and financials sectors. As of the same date, our domestic equity portion of the Fund was most significantly underweight relative to Index in the consumer staples and information technology sectors.

In our portion of the Fund that invests in global equities, the largest weightings were in the financials and health care sectors as of October 31, 2015. On the same date, the smallest weightings were in the consumer staples and utilities sectors.

11

This positioning reflected our view on the prospects for economic growth and the relative attractiveness of individual holdings in these sectors.

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

12 MainStay MAP Fund

Portfolio of Investments October 31, 2015

	Shares		Value
Common Stocks 98.0%†
Aerospace & Defense 4.6%
Aerojet Rocketdyne Holdings, Inc. (a)		131,418	$	2,226,221
¨Boeing Co. (The)		252,478		37,384,417
Honeywell International, Inc.		163,600		16,896,608
Northrop Grumman Corp.		32,413		6,085,541
Orbital ATK, Inc.		51,965		4,449,243
Raytheon Co.		85,590		10,048,266
United Technologies Corp.		49,970		4,917,548
				82,007,844
Auto Components 1.6%
Bridgestone Corp.		172,100		6,383,688
Johnson Controls, Inc.		490,555		22,163,275
				28,546,963
Banks 3.8%
Banco Popular Espanol S.A.		1,477,666		5,631,958
Bank of America Corp.		544,409		9,135,183
Citigroup, Inc.		322,985		17,173,112
JPMorgan Chase & Co.		148,070		9,513,498
Royal Bank of Scotland Group PLC (a)		1,475,590		7,224,665
U.S. Bancorp		224,522		9,470,338
Wells Fargo & Co.		203,680		11,027,235
				69,175,989
Beverages 1.9%
Coca-Cola Co. (The)		192,393		8,147,844
PepsiCo., Inc.		150,328		15,362,018
Pernod Ricard S.A.		86,700		10,220,414
				33,730,276
Biotechnology 1.7%
AbbVie, Inc.		105,813		6,301,164
Baxalta, Inc.		78,508		2,705,386
Celgene Corp. (a)		113,400		13,915,314
Genmab A/S (a)		73,400		7,240,057
				30,161,921
Capital Markets 6.6%
Ameriprise Financial, Inc.		230,229		26,559,218
Bank of New York Mellon Corp. (The)		86,871		3,618,177
Daiwa Securities Group, Inc.		1,384,750		9,548,773
Deutsche Bank A.G. Registered		367,730		10,299,416
Goldman Sachs Group, Inc. (The)		93,324		17,498,250
Julius Baer Group, Ltd. (a)		215,850		10,726,442
Northern Trust Corp.		344,976		24,282,861
State Street Corp.		227,899		15,725,031
				118,258,168
Chemicals 5.9%
Akzo Nobel N.V.		149,470		10,593,307

	Shares		Value
Chemicals (continued)
E.I. du Pont de Nemours & Co.		305,649	$	19,378,147
FMC Corp.		55,330		2,252,484
Koninklijke DSM N.V.		127,682		6,818,094
¨Monsanto Co.		458,029		42,697,463
Mosaic Co. (The)		490,420		16,571,292
Syngenta A.G., Sponsored ADR		23,951		1,611,663
Syngenta A.G. Registered		18,720		6,302,813
				106,225,263
Commercial Services & Supplies 0.4%
Covanta Holding Corp.		210,354		3,525,533
Tyco International PLC		95,991		3,497,912
				7,023,445
Communications Equipment 0.0%‡
Infinera Corp. (a)		27,667		546,700
Construction & Engineering 0.2%
Jacobs Engineering Group, Inc. (a)		86,901		3,488,206
Construction Materials 0.3%
LafargeHolcim, Ltd. Registered (a)		102,615		5,787,633
Consumer Finance 4.1%
Ally Financial, Inc. (a)		1,064,750		21,209,820
¨American Express Co.		604,766		44,305,157
Discover Financial Services		139,649		7,851,067
				73,366,044
Diversified Financial Services 1.4%
Berkshire Hathaway, Inc. Class B (a)		24,249		3,298,349
Intercontinental Exchange, Inc.		89,640		22,625,136
				25,923,485
Diversified Telecommunication Services 0.5%
AT&T, Inc.		149,075		4,995,503
Verizon Communications, Inc.		67,100		3,145,648
				8,141,151
Electric Utilities 0.0%‡
Duke Energy Corp.		8,500		607,495
Electrical Equipment 0.4%
Rockwell Automation, Inc.		72,747		7,941,063
Electronic Equipment, Instruments & Components 0.7%
Corning, Inc.		166,347		3,094,054
TE Connectivity, Ltd.		146,573		9,445,164
				12,539,218

† Percentages indicated are based on Fund net assets.

¨ Among the Fund’s 10 largest holdings or issuers held, as of October 31, 2015, excluding short-term investment. May be subject to change daily.

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

Portfolio of Investments October 31, 2015 (continued)

	Shares		Value
Common Stocks (continued)
Energy Equipment & Services 0.3%
Schlumberger, Ltd.		78,338	$	6,122,898
Food & Staples Retailing 1.8%
CVS Health Corp.		161,221		15,925,410
Wal-Mart Stores, Inc.		104,922		6,005,735
Walgreens Boots Alliance, Inc.		132,930		11,256,513
				33,187,658
Food Products 0.1%
Mondelez International, Inc. Class A		40,518		1,870,311
Gas Utilities 0.0%‡
National Fuel Gas Co.		14,370		754,856
Health Care Equipment & Supplies 3.0%
Abbott Laboratories		89,832		4,024,474
Baxter International, Inc.		42,750		1,598,423
¨Medtronic PLC		651,832		48,183,421
				53,806,318
Health Care Providers & Services 3.9%
Aetna, Inc.		252,939		29,032,339
Express Scripts Holding Co. (a)		267,780		23,130,836
McKesson Corp.		104,820		18,741,816
				70,904,991
Hotels, Restaurants & Leisure 2.1%
Las Vegas Sands Corp.		241,610		11,962,111
McDonald’s Corp.		66,610		7,476,973
Sands China, Ltd.		2,496,800		9,068,320
Starwood Hotels & Resorts Worldwide, Inc.		122,946		9,819,697
				38,327,101
Household Durables 1.4%
Whirlpool Corp.		159,190		25,492,687
Household Products 0.2%
Procter & Gamble Co. (The)		55,183		4,214,878
Industrial Conglomerates 2.0%
3M Co.		24,041		3,779,485
General Electric Co.		1,080,454		31,246,730
				35,026,215
Insurance 3.1%
Allstate Corp. (The)		66,028		4,085,813
American International Group, Inc.		122,145		7,702,464
Chubb Corp. (The)		102,001		13,193,829
MetLife, Inc.		93,598		4,715,467
Travelers Cos., Inc. (The)		187,388		21,154,231
W.R. Berkley Corp.		91,943		5,133,178
				55,984,982

	Shares		Value
Internet & Catalog Retail 0.7%
Liberty Interactive Corp. QVC Group Class A (a)		341,424	$	9,344,775
Liberty TripAdvisor Holdings, Inc. Class A (a)		43,215		1,347,876
Liberty Ventures (a)		56,501		2,461,748
				13,154,399
Internet Software & Services 2.8%
Alibaba Group Holding, Ltd., Sponsored ADR (a)		14,900		1,249,067
¨Alphabet, Inc. (Google)
Class A (a)		17,139		12,638,127
Class C (a)		32,229		22,908,696
eBay, Inc. (a)		206,041		5,748,544
VeriSign, Inc. (a)		77,035		6,209,021
Yahoo!, Inc. (a)		45,000		1,602,900
				50,356,355
IT Services 1.7%
Automatic Data Processing, Inc.		134,243		11,677,799
International Business Machines Corp.		68,544		9,601,643
PayPal Holdings, Inc. (a)		274,997		9,902,642
				31,182,084
Machinery 1.6%
Caterpillar, Inc.		93,445		6,820,550
Pentair PLC		380,140		21,257,429
				28,077,979
Media 9.2%
¨Comcast Corp. Class A		621,778		38,935,738
Discovery Communications, Inc. Class C (a)		183,450		5,048,544
Grupo Televisa S.A.B., Sponsored ADR		578,300		16,851,662
Liberty Broadband Corp.
Class A (a)		34,379		1,875,718
Class C (a)		138,119		7,426,659
¨Liberty Media Corp.
Class A (a)		244,530		9,967,043
Class C (a)		1,010,336		39,554,654
Madison Square Garden Co. (The) Class A (a)		47,877		8,546,045
MSG Networks, Inc. Class A (a)		155,603		3,192,974
Omnicom Group, Inc.		160,240		12,005,181
Pearson PLC		192,300		2,553,913
Starz Class A (a)		84,177		2,820,771
Time Warner, Inc.		115,772		8,722,262
Twenty-First Century Fox, Inc. Class A		176,810		5,426,299
Walt Disney Co. (The)		32,100		3,651,054
				166,578,517
Multi-Utilities 0.4%
E.ON S.E.		695,850		7,343,544

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

	Shares		Value
Common Stocks (continued)
Oil, Gas & Consumable Fuels 7.0%
Anadarko Petroleum Corp.		78,663	$	5,260,981
Apache Corp.		93,273		4,395,957
Chesapeake Energy Corp.		320,384		2,284,338
¨Chevron Corp.		436,630		39,680,934
ConocoPhillips		115,281		6,150,241
Devon Energy Corp.		71,585		3,001,559
EOG Resources, Inc.		80,092		6,875,898
Hess Corp.		84,520		4,750,869
Marathon Oil Corp.		142,404		2,617,386
Marathon Petroleum Corp.		209,075		10,830,085
Occidental Petroleum Corp.		221,340		16,498,684
Phillips 66		32,453		2,889,940
Spectra Energy Corp.		256,276		7,321,805
Total S.A.		201,500		9,781,629
Williams Cos., Inc. (The)		105,996		4,180,482
				126,520,788
Pharmaceuticals 6.4%
¨Allergan PLC (a)		140,635		43,381,678
Johnson & Johnson		82,325		8,317,295
Mallinckrodt PLC (a)		173,650		11,403,595
Merck & Co., Inc.		89,415		4,887,424
Merck KGaA		115,900		11,321,337
Novartis A.G., Sponsored ADR		148,060		13,389,066
Novartis A.G. Registered		122,100		11,098,877
Pfizer, Inc.		132,550		4,482,841
Teva Pharmaceutical Industries, Ltd., Sponsored ADR		114,299		6,765,358
				115,047,471
Real Estate Investment Trusts 2.0%
American Tower Corp.		133,660		13,664,062
HCP, Inc.		231,136		8,598,259
UDR, Inc.		343,124		11,824,053
Weyerhaeuser Co.		50,725		1,487,764
				35,574,138
Real Estate Management & Development 0.7%
Mitsubishi Estate Co., Ltd.		567,550		12,261,563
Road & Rail 1.2%
CSX Corp.		229,725		6,200,278
Union Pacific Corp.		168,935		15,094,342
				21,294,620
Semiconductors & Semiconductor Equipment 1.0%
ASML Holding N.V.		96,150		8,945,932
Intel Corp.		178,976		6,060,127
Texas Instruments, Inc.		58,778		3,333,888
				18,339,947
Software 3.2%
Microsoft Corp.		446,763		23,517,604

	Shares			Value
Software (continued)
Oracle Corp.		853,358		$	33,144,425
					56,662,029
Specialty Retail 1.5%
Home Depot, Inc. (The)		85,038			10,514,098
Lowe’s Cos., Inc.		199,897			14,758,396
Outerwall, Inc.		35,813			2,148,780
					27,421,274
Technology Hardware, Storage & Peripherals 5.0%
¨Apple, Inc.		630,248			75,314,636
Samsung Electronics Co., Ltd., GDR		23,530			14,082,705
					89,397,341
Tobacco 0.4%
Philip Morris International, Inc.		77,694			6,868,150
Trading Companies & Distributors 0.4%
Mitsubishi Corp.		423,500			7,764,927
Wireless Telecommunication Services 0.8%
Intouch Holdings PCL, NVDR		945,700			1,994,166
Vodafone Group PLC, Sponsored ADR		367,468			12,115,420
					14,109,586
Total Common Stocks (Cost $1,404,297,957)					1,767,118,471
	Principal Amount
Short-Term Investment 1.7%
Repurchase Agreement 1.7%
Fixed Income Clearing Corp. 0.00%, dated 10/30/15 due 11/2/15 Proceeds at Maturity $30,924,856 (Collateralized by United States Treasury and Government Agency securities with rates between 1.375% and 1.70% and maturity dates between 2/26/20 and 2/29/20, with a Principal Amount of $31,485,000 and a Market Value of $31,552,382)	$	30,924,856			30,924,856
Total Short-Term Investment (Cost $30,924,856)					30,924,856
Total Investments (Cost $1,435,222,813) (b)		99.7	%		1,798,043,327
Other Assets, Less Liabilities		0.3			4,961,090
Net Assets		100.0	%	$	1,803,004,417

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 October 31, 2015 (continued)

‡ Less than one-tenth of a percent.

(a) Non-income producing security.

(b) As of October 31, 2015, cost was $1,446,452,436 for federal income tax purposes and net unrealized appreciation was as follows:

Gross unrealized appreciation	$	429,554,794
Gross unrealized depreciation		(77,963,903	)
Net unrealized appreciation	$	351,590,891

The following abbreviations are used in the preceding pages:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

NVDR—Non-Voting Depositary Receipt

The following is a summary of the fair valuations according to the inputs used as of October 31, 2015, for valuing the Fund’s assets.

Asset Valuation Inputs

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investments in Securities (a)
Common Stocks	$	1,767,118,471	$	—	$	—	$	1,767,118,471
Short-Term Investment
Repurchase Agreement		—		30,924,856		—		30,924,856
Total Investments in Securities	$	1,767,118,471	$	30,924,856	$	—	$	1,798,043,327

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

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

For the year ended October 31, 2015, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements. (See Note 2)

As of October 31, 2015, the Fund did not hold any investments with significant unobservable inputs (Level 3). (See Note 2)

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

Investments in Securities	Balance as of October 31, 2014		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases		Sales			Transfers in to Level 3		Transfers out of Level 3		Balance as of October 31, 2015		Change in Unrealized Appreciation (Depreciation) from Investments Still Held as of October 31, 2015 (a)
Convertible Bond
Oil, Gas & Consumable Fuels	$	300	$	1	$	65	$	(66	)	$	—	$	(300	)	$	—	$	—	$	—	$	—
Total	$	300	$	1	$	65	$	(66	)	$	—	$	(300	)	$	—	$	—	$	—	$	—

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

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

Statement of Assets and Liabilities as of October 31, 2015

Assets
Investment in securities, at value (identified cost $1,435,222,813)	$	1,798,043,327
Cash denominated in foreign currencies (identified cost $141)		137
Receivables:
Investment securities sold		26,603,605
Dividends and interest		2,124,676
Fund shares sold		437,497
Other assets		36,839
Total assets		1,827,246,081
Liabilities
Payables:
Investment securities purchased		20,906,812
Fund shares redeemed		1,453,747
Manager (See Note 3)		1,109,956
Transfer agent (See Note 3)		412,988
NYLIFE Distributors (See Note 3)		253,966
Shareholder communication		44,743
Professional fees		36,683
Custodian		7,404
Trustees		4,232
Accrued expenses		11,133
Total liabilities		24,241,664
Net assets	$	1,803,004,417
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.01 per share) unlimited number of shares authorized	$	413,997
Additional paid-in capital		1,162,648,410
		1,163,062,407
Undistributed net investment income		17,020,980
Accumulated net realized gain (loss) on investments and foreign currency transactions		260,126,440
Net unrealized appreciation (depreciation) on investments		362,820,514
Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies		(25,924	)
Net assets	$	1,803,004,417

Class A
Net assets applicable to outstanding shares	$	336,811,905
Shares of beneficial interest outstanding		7,774,635
Net asset value per share outstanding	$	43.32
Maximum sales charge (5.50% of offering price)		2.52
Maximum offering price per share outstanding	$	45.84
Investor Class
Net assets applicable to outstanding shares	$	151,582,170
Shares of beneficial interest outstanding		3,502,878
Net asset value per share outstanding	$	43.27
Maximum sales charge (5.50% of offering price)		2.52
Maximum offering price per share outstanding	$	45.79
Class B
Net assets applicable to outstanding shares	$	54,422,727
Shares of beneficial interest outstanding		1,369,640
Net asset value and offering price per share outstanding	$	39.74
Class C
Net assets applicable to outstanding shares	$	125,641,559
Shares of beneficial interest outstanding		3,162,174
Net asset value and offering price per share outstanding	$	39.73
Class I
Net assets applicable to outstanding shares	$	1,119,883,901
Shares of beneficial interest outstanding		25,252,971
Net asset value and offering price per share outstanding	$	44.35
Class R1
Net assets applicable to outstanding shares	$	3,606,510
Shares of beneficial interest outstanding		82,773
Net asset value and offering price per share outstanding	$	43.57
Class R2
Net assets applicable to outstanding shares	$	9,993,196
Shares of beneficial interest outstanding		230,027
Net asset value and offering price per share outstanding	$	43.44
Class R3
Net assets applicable to outstanding shares	$	1,062,449
Shares of beneficial interest outstanding		24,581
Net asset value and offering price per share outstanding	$	43.22

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 year ended October 31, 2015

Investment Income (Loss)
Income
Dividends (a)	$	41,019,347
Interest		7
Total income		41,019,354
Expenses
Manager (See Note 3)		15,364,404
Distribution/Service—Class A (See Note 3)		902,772
Distribution/Service—Investor Class (See Note 3)		382,238
Distribution/Service—Class B (See Note 3)		634,444
Distribution/Service—Class C (See Note 3)		1,376,092
Distribution/Service—Class R2 (See Note 3)		34,078
Distribution/Service—Class R3 (See Note 3)		6,548
Transfer agent (See Note 3)		2,517,707
Professional fees		151,505
Shareholder communication		124,093
Registration		113,881
Custodian		88,576
Trustees		39,723
Shareholder service (See Note 3)		19,007
Miscellaneous		77,652
Total expenses		21,832,720
Net investment income (loss)		19,186,634
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions		314,571,617
Foreign currency transactions		(18,822	)
Net realized gain (loss) on investments and foreign currency transactions		314,552,795
Net change in unrealized appreciation (depreciation) on:
Investments		(294,100,990	)
Translation of other assets and liabilities in foreign currencies		4,252
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		(294,096,738	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		20,456,057
Net increase (decrease) in net assets resulting from operations	$	39,642,691

(a) Dividends recorded net of foreign withholding taxes in the amount of $590,624.

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

Statements of Changes in Net Assets

for the years ended October 31, 2015 and October 31, 2014

	2015			2014
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	19,186,634		$	35,456,858
Net realized gain (loss) on investments and foreign currency transactions		314,552,795			175,637,060
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		(294,096,738	)		39,930,661
Net increase (decrease) in net assets resulting from operations		39,642,691			251,024,579
Dividends and distributions to shareholders:
From net investment income:
Class A		(5,197,213	)		(3,679,349	)
Investor Class		(1,972,392	)		(1,282,822	)
Class B		(450,841	)		(155,595	)
Class C		(903,543	)		(276,902	)
Class I		(24,145,735	)		(18,234,812	)
Class R1		(56,485	)		(79,038	)
Class R2		(200,863	)		(185,472	)
Class R3		(14,757	)		(11,404	)
		(32,941,829	)		(23,905,394	)
From net realized gain on investments:
Class A		(28,567,209	)		(7,353,614	)
Investor Class		(11,968,176	)		(3,038,070	)
Class B		(6,073,597	)		(1,778,836	)
Class C		(12,124,005	)		(3,153,772	)
Class I		(113,212,950	)		(29,691,451	)
Class R1		(285,824	)		(139,803	)
Class R2		(1,208,532	)		(410,736	)
Class R3		(111,793	)		(34,875	)
		(173,552,086	)		(45,601,157	)
Total dividends and distributions to shareholders		(206,493,915	)		(69,506,551	)
Capital share transactions:
Net proceeds from sale of shares		177,192,328			324,386,662
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions		201,308,974			67,826,212
Cost of shares redeemed		(670,919,606	)		(483,714,819	)
Increase (decrease) in net assets derived from capital share transactions		(292,418,304	)		(91,501,945	)
Net increase (decrease) in net assets		(459,269,528	)		90,016,083
Net Assets
Beginning of year		2,262,273,945			2,172,257,862
End of year	$	1,803,004,417		$	2,262,273,945
Undistributed net investment income at end of year	$	17,020,980		$	31,056,031

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

	Year ended October 31,
Class A	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	46.81		$	43.28		$	34.07		$	30.47		$	29.79
Net investment income (loss) (a)		0.38			0.67			0.41			0.40			0.37
Net realized and unrealized gain (loss) on investments		0.50			4.21			9.19			3.56			0.63
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.06	)
Total from investment operations		0.88			4.88			9.60			3.96			0.94
Less dividends and distributions:
From net investment income		(0.67	)		(0.45	)		(0.39	)		(0.36	)		(0.26	)
From net realized gain on investments		(3.70	)		(0.90	)		—			—			—
Total dividends and distributions		(4.37	)		(1.35	)		(0.39	)		(0.36	)		(0.26	)
Net asset value at end of year	$	43.32		$	46.81		$	43.28		$	34.07		$	30.47
Total investment return (b)		1.80	%		11.55	%		28.47	%		13.14	%		3.16	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.85	%		1.49	%		1.07	%		1.24	%		1.18	%
Net expenses		1.11	%		1.11	%		1.11	%		1.14	%		1.14	%
Portfolio turnover rate		51	%		32	%��		29	%		40	%		44	%
Net assets at end of year (in 000’s)	$	336,812		$	364,162		$	356,657		$	294,247		$	296,453

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Investor Class	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	46.77		$	43.24		$	34.04		$	30.44		$	29.76
Net investment income (loss) (a)		0.31			0.60			0.34			0.34			0.31
Net realized and unrealized gain (loss) on investments		0.50			4.21			9.18			3.55			0.63
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.06	)
Total from investment operations		0.81			4.81			9.52			3.89			0.88
Less dividends and distributions:
From net investment income		(0.61	)		(0.38	)		(0.32	)		(0.29	)		(0.20	)
From net realized gain on investments		(3.70	)		(0.90	)		—			—			—
Total dividends and distributions		(4.31	)		(1.28	)		(0.32	)		(0.29	)		(0.20	)
Net asset value at end of year	$	43.27		$	46.77		$	43.24		$	34.04		$	30.44
Total investment return (b)		1.63	%		11.38	%		28.26	%		12.88	%		2.96	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.71	%		1.34	%		0.88	%		1.04	%		0.98	%
Net expenses		1.25	%		1.26	%		1.30	%		1.34	%		1.34	%
Portfolio turnover rate		51	%		32	%		29	%		40	%		44	%
Net assets at end of year (in 000’s)	$	151,582		$	152,202		$	144,892		$	120,771		$	114,786

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class B	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	43.25		$	40.08		$	31.55		$	28.21		$	27.63
Net investment income (loss) (a)		(0.01	)		0.26			0.06			0.10			0.07
Net realized and unrealized gain (loss) on investments		0.48			3.89			8.54			3.29			0.58
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.05	)
Total from investment operations		0.47			4.15			8.60			3.39			0.60
Less dividends and distributions:
From net investment income		(0.28	)		(0.08	)		(0.07	)		(0.05	)		(0.02	)
From net realized gain on investments		(3.70	)		(0.90	)		—			—			—
Total dividends and distributions		(3.98	)		(0.98	)		(0.07	)		(0.05	)		(0.02	)
Net asset value at end of year	$	39.74		$	43.25		$	40.08		$	31.55		$	28.21
Total investment return (b)		0.89	%		10.55	%		27.30	%		12.04	%		2.18	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.03	%)		0.63	%		0.16	%		0.33	%		0.24	%
Net expenses		2.00	%		2.01	%		2.05	%		2.09	%		2.09	%
Portfolio turnover rate		51	%		32	%		29	%		40	%		44	%
Net assets at end of year (in 000’s)	$	54,423		$	71,195		$	82,695		$	86,613		$	110,794

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

	Year ended October 31,
Class C	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	43.25		$	40.08		$	31.56		$	28.21		$	27.63
Net investment income (loss) (a)		(0.02	)		0.25			0.05			0.09			0.07
Net realized and unrealized gain (loss) on investments		0.48			3.90			8.54			3.31			0.58
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.05	)
Total from investment operations		0.46			4.15			8.59			3.40			0.60
Less dividends and distributions:
From net investment income		(0.28	)		(0.08	)		(0.07	)		(0.05	)		(0.02	)
From net realized gain on investments		(3.70	)		(0.90	)		—			—			—
Total dividends and distributions		(3.98	)		(0.98	)		(0.07	)		(0.05	)		(0.02	)
Net asset value at end of year	$	39.73		$	43.25		$	40.08		$	31.56		$	28.21
Total investment return (b)		0.89	%		10.55	%		27.26	%		12.07	%		2.18	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		(0.04	%)		0.60	%		0.14	%		0.31	%		0.23	%
Net expenses		2.00	%		2.01	%		2.05	%		2.09	%		2.09	%
Portfolio turnover rate		51	%		32	%		29	%		40	%		44	%
Net assets at end of year (in 000’s)	$	125,642		$	143,427		$	141,628		$	125,700		$	136,274

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions.

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

	Year ended October 31,
Class I	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	47.82		$	44.18		$	34.77		$	31.10		$	30.39
Net investment income (loss) (a)		0.50			0.80			0.52			0.49			0.45
Net realized and unrealized gain (loss) on investments		0.52			4.29			9.37			3.62			0.66
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.06	)
Total from investment operations		1.02			5.09			9.89			4.11			1.05
Less dividends and distributions:
From net investment income		(0.79	)		(0.55	)		(0.48	)		(0.44	)		(0.34	)
From net realized gain on investments		(3.70	)		(0.90	)		—			—			—
Total dividends and distributions		(4.49	)		(1.45	)		(0.48	)		(0.44	)		(0.34	)
Net asset value at end of year	$	44.35		$	47.82		$	44.18		$	34.77		$	31.10
Total investment return (b)		2.06	%		11.82	%		28.79	%		13.40	%		3.43	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.10	%		1.76	%		1.33	%		1.48	%		1.42	%
Net expenses		0.86	%		0.86	%		0.86	%		0.89	%		0.89	%
Portfolio turnover rate		51	%		32	%		29	%		40	%		44	%
Net assets at end of year (in 000’s)	$	1,119,884		$	1,506,564		$	1,417,814		$	1,358,999		$	1,188,911

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(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.

	Year ended October 31,
Class R1	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	47.05		$	43.49		$	34.23		$	30.63		$	29.93
Net investment income (loss) (a)		0.45			0.73			0.54			0.44			0.31
Net realized and unrealized gain (loss) on investments		0.50			4.24			9.14			3.58			0.77
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.07	)
Total from investment operations		0.95			4.97			9.68			4.02			1.01
Less dividends and distributions:
From net investment income		(0.73	)		(0.51	)		(0.42	)		(0.42	)		(0.31	)
From net realized gain on investments		(3.70	)		(0.90	)		—			—			—
Total dividends and distributions		(4.43	)		(1.41	)		(0.42	)		(0.42	)		(0.31	)
Net asset value at end of year	$	43.57		$	47.05		$	43.49		$	34.23		$	30.63
Total investment return (b)		1.94	%		11.71	%		28.63	%		13.26	%		3.35	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		1.02	%		1.63	%		1.43	%		1.37	%		1.02	%
Net expenses		0.96	%		0.96	%		0.96	%		0.99	%		0.99	%
Portfolio turnover rate		51	%		32	%		29	%		40	%		44	%
Net assets at end of year (in 000’s)	$	3,607		$	7,368		$	6,737		$	21,761		$	17,611

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R1 shares are not subject to sales charges.

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

Financial Highlights selected per share data and ratios

	Year ended October 31,
Class R2	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	46.92		$	43.38		$	34.12		$	30.53		$	29.85
Net investment income (loss) (a)		0.34			0.63			0.38			0.38			0.34
Net realized and unrealized gain (loss) on investments		0.49			4.22			9.21			3.54			0.63
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.06	)
Total from investment operations		0.83			4.85			9.59			3.92			0.91
Less dividends and distributions:
From net investment income		(0.61	)		(0.41	)		(0.33	)		(0.33	)		(0.23	)
From net realized gain on investments		(3.70	)		(0.90	)		—			—			—
Total dividends and distributions		(4.31	)		(1.31	)		(0.33	)		(0.33	)		(0.23	)
Net asset value at end of year	$	43.44		$	46.92		$	43.38		$	34.12		$	30.53
Total investment return (b)		1.68	%		11.43	%		28.36	%		12.99	%		3.05	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.76	%		1.42	%		0.98	%		1.16	%		1.08	%
Net expenses		1.21	%		1.21	%		1.21	%		1.24	%		1.24	%
Portfolio turnover rate		51	%		32	%		29	%		40	%		44	%
Net assets at end of year (in 000’s)	$	9,993		$	15,956		$	20,140		$	19,072		$	22,733

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R2 shares are not subject to sales charges.

	Year ended October 31,
Class R3	2015			2014			2013			2012			2011
Net asset value at beginning of year	$	46.68		$	43.16		$	33.94		$	30.38		$	29.71
Net investment income (loss) (a)		0.22			0.54			0.29			0.30			0.25
Net realized and unrealized gain (loss) on investments		0.51			4.17			9.16			3.53			0.64
Net realized and unrealized gain (loss) on foreign currency transactions		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.00	)‡		(0.06	)
Total from investment operations		0.73			4.71			9.45			3.83			0.83
Less dividends and distributions:
From net investment income		(0.49	)		(0.29	)		(0.23	)		(0.27	)		(0.16	)
From net realized gain on investments		(3.70	)		(0.90	)		—			—			—
Total dividends and distributions		(4.19	)		(1.19	)		(0.23	)		(0.27	)		(0.16	)
Net asset value at end of year	$	43.22		$	46.68		$	43.16		$	33.94		$	30.38
Total investment return (b)		1.42	%		11.18	%		28.03	%		12.72	%		2.79	%
Ratios (to average net assets)/Supplemental Data:
Net investment income (loss)		0.51	%		1.20	%		0.74	%		0.94	%		0.80	%
Net expenses		1.46	%		1.46	%		1.46	%		1.49	%		1.49	%
Portfolio turnover rate		51	%		32	%		29	%		40	%		44	%
Net assets at end of year (in 000’s)	$	1,062		$	1,400		$	1,696		$	1,809		$	2,380

‡ Less than one cent per share.

(a) Per share data based on average shares outstanding during the year.

(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges.

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

Note 1–Organization and Business

The MainStay Funds (the “Trust”) was organized on January 9, 1986, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of twelve funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MAP 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 currently offers eight classes of shares. Class A, Class B and Class C shares commenced operations on June 9, 1999. Class I shares commenced operations in 1970 (under a former class designation) and were redesignated as Class I shares on June 9, 1999. Class R1 and Class R2 shares commenced operations on January 2, 2004. Class R3 shares commenced operations on April 28, 2006. Investor Class shares commenced operations on February 28, 2008. Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares, but a contingent deferred sales charge (“CDSC”) is imposed on certain redemptions of such shares made within one year of the date of purchase. 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 has 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 R1, Class R2 and Class R3 shares are offered at NAV and are not subject to 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. Additionally, depending upon eligibility, Class A shares may convert to Investor Class shares and Investor Class shares may convert to Class A shares. The eight classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that Class B and Class C shares are subject to higher distribution and/or service fee rates than Class A, Investor Class, Class R2 and Class R3 shares under a distribution plan pursuant to Rule 12b-1 under the 1940 Act. Class I and Class R1 shares are not subject to a distribution and/or service fee. Class R1, Class R2 and Class R3 shares are subject to a shareholder service fee. This is in addition to any fees paid under a distribution plan, where applicable.

The Fund’s investment objective is to seek long-term appreciation 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 Standard 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 valued as of the close of regular trading on the New York Stock Exchange (“Exchange”) (generally 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).

The Board of Trustees (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the “Valuation Committee”). The Board authorized the Valuation Committee to appoint a Valuation Sub-Committee (the “Sub-Committee”) to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Sub-Committee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund’s assets and liabilities) rests with New York Life Investment Management LLC (“New York Life Investments” or the “Manager”), aided to whatever extent necessary by the Subadvisors (as defined in Note 3(A)) to the Fund.

To assess the appropriateness of security valuations, the Manager, Subadvisors or the Fund’s third party service provider, who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and the sale prices to the prior and current day prices and challenges prices with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Sub-Committee deals in the first instance with such valuation and the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering all relevant information that is reasonably available. Any action taken by the Sub-Committee with respect to the valuation of a portfolio security is submitted by the Valuation Committee to the Board for its review and ratification, if appropriate, at its next regularly scheduled meeting.

“Fair value” is defined as the price the Fund would 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 which 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

24 MainStay MAP Fund

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 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. As of October 31, 2015, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s 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
•    Equity and credit default swap curves	•    Monthly payment information

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund 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 Fund 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. Due to the inherent uncertainty of such assets or liabilities, fair values may differ significantly from values that would have been used had an active market existed. During the year ended October 31, 2015, there were no material changes to the fair value methodologies.

Equity and non-equity 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; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security

that has been de-listed from a national exchange; (v) a security for which the market price is not readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or Subadvisors reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time

when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of October 31, 2015, there were no securities held by the Fund that were fair valued in such a manner.

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 NAV is calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or Subadvisors conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Sub-Committee may, pursuant to procedures adopted by the Board, 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 valuation procedures adopted by the Board and are generally categorized as Level 2 in the hierarchy. As of October 31, 2015, no foreign equity securities held by the Fund were fair valued in such a manner.

Equity securities and Exchange-Traded Funds 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. Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

Debt securities (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 Manager, in consultation with the Subadvisors. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean prices are deemed by the Manager, 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 & 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. Other temporary cash investments which mature in 60 days or less at the time of purchase (“Short-Term Investments”) are valued using the amortized cost method of valuation,

25

Notes to Financial Statements (continued)

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. These securities are generally categorized as Level 2 in the hierarchy.

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

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued within seven days. Illiquidity of a security might prevent the sale of such security at a time when the Manager or Subadvisors might wish to sell, and these securities 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 securities, requiring the Fund to rely on judgments that may be somewhat subjective in measuring value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisors measure the liquidity of the Fund’s investments; in doing so, the Manager or Subadvisors may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued by methods deemed reasonable in good faith in such a manner as the Board deems appropriate to reflect their fair value. The liquidity of the Fund’s investments, as shown in the accompanying Portfolio of Investments, was measured as of October 31, 2015 and can change at any time in response to, among other relevant factors, market conditions or events or developments with respect to an individual issuer or instrument. As of October 31, 2015, the Fund did not hold any securities deemed to be illiquid under procedures approved by the Board of Trustees.

(B)  Income Taxes.  The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of the taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no federal, state and local income tax provisions are required.

Management 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 required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The

Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not

expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.

(C)  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 recoverable. The Fund will accrue such taxes and recoveries 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 on 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 during the year ended October 31, 2015, 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 the shareholder elects otherwise, all dividends and distributions are reinvested in the same class of shares of the Fund, at NAV. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from GAAP.

(E)  Security Transactions and Investment Income.  The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. 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. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities or, in the case of a callable security, over the period to the first date of call. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for short-term investments. Income from payment-in-kind securities is recorded daily based on the effective interest method of accrual.

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

26 MainStay MAP Fund

(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.

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

(H)  Repurchase Agreements.  The Fund may enter into repurchase agreements to earn income. The Fund may enter into repurchase agreements only with financial institutions that are deemed by the Manager or Subadvisors to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or Subadvisors will continue to monitor the creditworthiness of the seller. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the seller secured by the securities transferred to the Fund.

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

(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. As of October 31, 2015, the Fund did not hold any rights or warrants.

(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. In the event the Fund does engage in securities lending, the Fund will lend through its custodian, State Street Bank and Trust Company (“State Street”). State Street will manage the Fund’s

cash collateral in accordance with the lending agreement between the Fund and State Street, and indemnify the Fund against counterparty

risk. The loans will be collateralized by cash or securities at least equal at all times to the market value of the securities loaned. Collateral will consist of U.S. government securities, cash equivalents or irrevocable letters of credit. The Fund may bear the risk of delay in recovery of, or loss of rights in, the securities loaned should the borrower of the securities experience financial difficulty. The Fund may also record 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 the collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest on the investment of any cash received as 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. During the year ended October 31, 2015, the Fund did not have any portfolio securities on loan.

(K)  Foreign Currency Forward Contracts.  The Fund may enter into foreign currency forward contracts, which are agreements to buy or sell foreign currencies on a specified future date at a specified rate. The Fund is subject to foreign currency exchange rate risk in the normal course of investing in these transactions. During the period the forward contract is open, changes in the value of the contract are recognized as unrealized 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. Cash movement occurs on settlement date. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract. The Fund may purchase and sell foreign currency forward contracts for purposes of seeking to enhance portfolio returns and manage portfolio risk more efficiently. Foreign currency forward contracts may also be used to gain exposure to a particular currency or to hedge against the risk of loss due to changing currency exchange rates. Foreign currency forward contracts to purchase or sell a foreign currency may also be used in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected.

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

27

Notes to Financial Statements (continued)

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

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

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

Note 3–Fees and Related Party Transactions

(A)  Manager and 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 a portion of the compensation of the Chief Compliance Officer of the Fund. Markston International LLC (“Markston” or “Subadvisor”) and Institutional Capital LLC (“ICAP” or “Subadvisor”), each registered investment advisers, serve as Subadvisors to the Fund and manage a portion of the Fund’s assets, as designated by New York Life Investments from time to time, subject to the oversight of New York Life Investments. ICAP is a wholly-owned subsidiary of New York Life. Each Subadvisor is responsible for the day-to-day portfolio management of the Fund with respect to its allocated portion of the Fund’s assets. Pursuant to the terms of an Amended and Restated Subadvisory Agreement between New York Life Investments and ICAP, and pursuant to the terms of a Subadvisory Agreement between New York Life Investments and Markston (“Subadvisory Agreements”), New York Life Investments pays for the services of the Subadvisors.

Under the Management Agreement, the Fund pays the Manager a monthly fee for services performed and facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.75% up to $1 billion; 0.70% from $1 billion to $3 billion; and 0.675% in excess of $3 billion, plus a fee for fund accounting services previously provided by New York Life Investments under a separate fund accounting agreement furnished at an annual rate of the Fund’s average daily net assets as follows: 0.05% up to $20 million; 0.0333% from $20 million to $100 million; and 0.01% in excess of $100 million.

During the year ended October 31, 2015, the effective management fee rate (exclusive of any applicable waivers/reimbursements) was 0.73% inclusive of a fee for fund accounting services of 0.01% of the Fund’s average daily net assets.

During the year ended October 31, 2015, New York Life Investments earned fees from the Fund in the amount of $15,364,404.

State Street 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, State Street is compensated by New York Life Investments.

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

Pursuant to the Class A, Investor Class and Class R2 Plans, the Distributor receives a monthly distribution 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.

28 MainStay MAP Fund

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, the Distributor receives a monthly distribution and/or service fee from the Class R3 shares at an annual rate of 0.50% of the average daily net assets of the Class R3 shares. Class I and Class R1 shares are not subject to a distribution 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 a distribution plan, where applicable.

During the year ended October 31, 2015, shareholder service fees incurred by the Fund were as follows:

Class R1	$	4,066
Class R2		13,631
Class R3		1,310

(C)  Sales Charges.  During the year ended October 31, 2015, the Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares were $35,131 and $24,832, respectively. During the year ended October 31, 2015, the Fund was also advised that the Distributor retained CDSCs on redemptions of Class A, Investor Class, Class B and Class C shares of $550, $63, $50,670 and $5,744, 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 Boston Financial Data Services, Inc. (“BFDS”) pursuant to which BFDS performs certain transfer agent services on behalf of NYLIM Service Company LLC. During the year ended October 31, 2015, transfer agent expenses incurred by the Fund were as follows:

Class A	$	344,860
Investor Class		372,176
Class B		154,380
Class C		334,948
Class I		1,293,184
Class R1		3,889
Class R2		13,020
Class R3		1,250

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

(F)  Capital.  As of October 31, 2015, New York Life and its affiliates beneficially held shares of the Fund with values and percentages of net assets as follows:

Class I $ 130,489,290 11.7 % 

Note 4–Federal Income Tax

As of October 31, 2015, the components of accumulated gain (loss) on a tax basis were as follows:

Ordinary   Income	Accumulated Capital and Other Gain (Loss)		Other Temporary Differences		Unrealized Appreciation (Depreciation)		Total Accumulated Gain (Loss)
$39,744,545	$	248,632,498	$	—	$	351,564,967	$	639,942,010

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is primarily due to wash sale adjustments and return of capital distributions received.

The following table discloses the current year reclassifications between undistributed net investment income (loss), accumulated net realized gain (loss) on investments, and additional paid-in capital arising from permanent differences; net assets as of October 31, 2015 were not affected.

Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss) on Investments	Additional Paid-In Capital
$(279,856)	$(46,656,830)	$46,936,686

The reclassifications for the Fund are primarily due to return of capital distributions, capital gain distributions from Real Estate Investment Trusts (REITs) and distributions in connection with redemption of fund shares.

During the years ended October 31, 2015 and October 31, 2014, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:

	2015		2014
Distributions paid from:
Ordinary Income	$	42,577,199	$	23,905,394
Long-Term Capital Gain		163,916,716		45,601,157
Total	$	206,493,915	$	69,506,551

Note 5–Custodian

State Street 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 cash transactions incurred by the Fund.

29

Notes to Financial Statements (continued)

Note 6–Line of Credit

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

Effective August 4, 2015, under a second amended and restated credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an optional maximum aggregate amount of $700,000,000. The commitment fee is an annual rate of 0.10% of the average commitment amount payable quarterly, regardless of usage, to Bank of New York Mellon, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain affiliated funds based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Advances Rate or the one month London InterBank Offered Rate, whichever is higher. The Credit Agreement expires on August 2, 2016, although the Fund, certain affiliated funds and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms. Prior to August 4, 2015, the aggregate commitment amount was $600,000,000 with an optional maximum of $700,000,000, and the commitment fee was at an annual rate of 0.08% of the average commitment amount. During the year ended October 31, 2015, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement.

Note 7–Purchases and Sales of Securities (in 000’s)

During the year ended October 31, 2015, purchases and sales of securities, other than short-term securities, were $1,044,323 and $1,532,884, respectively.

Note 8–Capital Share Transactions

Class A	Shares			Amount
Year ended October 31, 2015:
Shares sold		564,044		$	24,857,281
Shares issued to shareholders in reinvestment of dividends and distributions		742,410			32,465,588
Shares redeemed		(1,406,032	)		(61,791,301	)
Net increase (decrease) in shares outstanding before conversion		(99,578	)		(4,468,432	)
Shares converted into Class A (See Note 1)		232,747			10,333,172
Shares converted from Class A (See Note 1)		(138,252	)		(5,611,127	)
Net increase (decrease)		(5,083	)	$	253,613
Year ended October 31, 2014:
Shares sold		723,948		$	32,252,647
Shares issued to shareholders in reinvestment of dividends and distributions		246,104			10,570,171
Shares redeemed		(1,714,222	)		(76,884,046	)
Net increase (decrease) in shares outstanding before conversion		(744,170	)		(34,061,228	)
Shares converted into Class A (See Note 1)		316,863			14,209,670
Shares converted from Class A (See Note 1)		(33,426	)		(1,510,228	)
Net increase (decrease)		(460,733	)	$	(21,361,786	)

Investor Class	Shares			Amount
Year ended October 31, 2015:
Shares sold		211,158		$	9,286,777
Shares issued to shareholders in reinvestment of dividends and distributions		318,159			13,916,248
Shares redeemed		(425,477	)		(18,734,580	)
Net increase (decrease) in shares outstanding before conversion		103,840			4,468,445
Shares converted into Investor Class (See Note 1)		324,377			13,698,186
Shares converted from Investor Class (See Note 1)		(179,819	)		(8,030,386	)
Net increase (decrease)		248,398		$	10,136,245
Year ended October 31, 2014:
Shares sold		243,750		$	10,842,608
Shares issued to shareholders in reinvestment of dividends and distributions		100,360			4,312,444
Shares redeemed		(411,502	)		(18,379,886	)
Net increase (decrease) in shares outstanding before conversion		(67,392	)		(3,224,834	)
Shares converted into Investor Class (See Note 1)		238,280			10,746,722
Shares converted from Investor Class (See Note 1)		(267,328	)		(11,985,059	)
Net increase (decrease)		(96,440	)	$	(4,463,171	)
Class B	Shares			Amount
Year ended October 31, 2015:
Shares sold		127,959		$	5,186,970
Shares issued to shareholders in reinvestment of dividends and distributions		156,623			6,332,294
Shares redeemed		(301,739	)		(12,195,306	)
Net increase (decrease) in shares outstanding before conversion		(17,157	)		(676,042	)
Shares converted from Class B (See Note 1)		(259,251	)		(10,389,845	)
Net increase (decrease)		(276,408	)	$	(11,065,887	)
Year ended October 31, 2014:
Shares sold		153,842		$	6,361,272
Shares issued to shareholders in reinvestment of dividends and distributions		46,868			1,874,219
Shares redeemed		(343,591	)		(14,245,668	)
Net increase (decrease) in shares outstanding before conversion		(142,881	)		(6,010,177	)
Shares converted from Class B (See Note 1)		(274,391	)		(11,461,105	)
Net increase (decrease)		(417,272	)	$	(17,471,282	)

30 MainStay MAP Fund

Class C	Shares			Amount
Year ended October 31, 2015:
Shares sold		275,014		$	11,149,629
Shares issued to shareholders in reinvestment of dividends and distributions		260,869			10,546,917
Shares redeemed		(689,780	)		(27,913,347	)
Net increase (decrease)		(153,897	)	$	(6,216,801	)
Year ended October 31, 2014:
Shares sold		219,674		$	9,097,184
Shares issued to shareholders in reinvestment of dividends and distributions		69,242			2,769,667
Shares redeemed		(506,113	)		(20,990,573	)
Net increase (decrease)		(217,197	)	$	(9,123,722	)
Class I	Shares			Amount
Year ended October 31, 2015:
Shares sold		2,796,007		$	124,713,395
Shares issued to shareholders in reinvestment of dividends and distributions		3,050,915			136,253,853
Shares redeemed		(12,097,821	)		(537,781,237	)
Net increase (decrease)		(6,250,899	)	$	(276,813,989	)
Year ended October 31, 2014:
Shares sold		5,831,385		$	262,909,083
Shares issued to shareholders in reinvestment of dividends and distributions		1,084,485			47,478,737
Shares redeemed		(7,502,846	)		(343,603,054	)
Net increase (decrease)		(586,976	)	$	(33,215,234	)
Class R1	Shares			Amount
Year ended October 31, 2015:
Shares sold		16,703		$	732,583
Shares issued to shareholders in reinvestment of dividends and distributions		7,794			342,310
Shares redeemed		(98,330	)		(4,612,672	)
Net increase (decrease)		(73,833	)	$	(3,537,779	)
Year ended October 31, 2014:
Shares sold		23,761		$	1,067,601
Shares issued to shareholders in reinvestment of dividends and distributions		5,075			218,841
Shares redeemed		(27,127	)		(1,227,313	)
Net increase (decrease)		1,709		$	59,129

Class R2	Shares			Amount
Year ended October 31, 2015:
Shares sold		25,166		$	1,118,113
Shares issued to shareholders in reinvestment of dividends and distributions		30,194			1,325,214
Shares redeemed		(165,432	)		(7,381,264	)
Net increase (decrease)		(110,072	)	$	(4,937,937	)
Year ended October 31, 2014:
Shares sold		38,870		$	1,730,213
Shares issued to shareholders in reinvestment of dividends and distributions		12,900			555,854
Shares redeemed		(175,965	)		(7,799,791	)
Net increase (decrease)		(124,195	)	$	(5,513,724	)
Class R3	Shares			Amount
Year ended October 31, 2015:
Shares sold		3,330		$	147,580
Shares issued to shareholders in reinvestment of dividends and distributions		2,892			126,550
Shares redeemed		(11,622	)		(509,899	)
Net increase (decrease)		(5,400	)	$	(235,769	)
Year ended October 31, 2014:
Shares sold		2,828		$	126,054
Shares issued to shareholders in reinvestment of dividends and distributions		1,077			46,279
Shares redeemed		(13,216	)		(584,488	)
Net increase (decrease)		(9,311	)	$	(412,155	)

Note 9–Recent Accounting Pronouncement

In June 2014, FASB issued ASU 2014-11, Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which addresses the financial reporting of repurchase agreements and other similar transactions. The guidance classifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, as well as require expanded disclosure of these types of transactions. The guidance is effective for financial statements with fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Fund’s financial statement disclosures.

Note10–Subsequent Events

In connection with the preparation of the financial statements of the Fund as of and for the fiscal year ended October 31, 2015, events and transactions subsequent to October 31, 2015, through the date the financial statements were issued have been evaluated by the Fund’s management for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.

31

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The MainStay Funds:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the MainStay MAP Fund (the “Fund”), one of the funds constituting The MainStay Funds, as of October 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MainStay MAP Fund of The MainStay Funds as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

December 23, 2015

32 MainStay MAP Fund

Federal Income Tax Information

(Unaudited)

The Fund is required under the Internal Revenue Code to advise shareholders in a written statement as to the federal tax status of dividends paid by the Fund during such fiscal years. Accordingly, the Fund paid $206,922,822 as long term capital gain distributions.

For the fiscal year ended October 31, 2015, the Fund designated approximately $42,292,255 under the Internal Revenue Code as qualified dividend income eligible for reduced tax rates.

The dividends paid by the Fund during the fiscal year ended October 31, 2015, should be multiplied by 79.0% to arrive at the amount eligible for the corporate dividends received deduction.

In February 2016, shareholders will receive an IRS Form 1099-DIV or substitute Form 1099 which will show the federal tax status of the distributions received by shareholders in calendar year 2015. The amounts that will be reported on such 1099-DIV or substitute Form 1099 will be the amounts you are to use on your federal income tax return and will differ from the amounts which we must report for the Fund’s fiscal year ended October 31, 2015.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

Shareholder Reports and Quarterly Portfolio Disclosure

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

33

Board of Trustees, Officers and Advisory Board Members (Unaudited)

The Trustees, officers and Advisory Board members of the Fund are listed below. The Board oversees the MainStay Group of Funds, (which is comprised of Funds that are series of the MainStay Funds, MainStay Funds Trust, MainStay VP Funds Trust, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund) (collectively the “Fund Complex”), the Manager and, when applicable, the Subadvisor(s), and other service providers to the Fund Complex and elects the officers of the Funds who are responsible for the day-to-day operations of the Funds. The Board has selected two individuals to serve on the Advisory Board. The Advisory Board assists the Board in a non-voting capacity in its oversight of the Funds. Information pertaining to the Trustees,

officers and Advisory Board members is set forth below. Each Trustee serves until his or her successor is elected and qualified or until his or her resignation, death or removal. Each Advisory Board member serves until his or her resignation, death or removal. Under the Retirement Policy, a Trustee must tender his or her resignation by the end of the calendar year during which he or she reaches the age of 75. Officers serve a term of one year and are elected annually by the Board of Trustees. The business address of each Trustee, Advisory Board member, and officer listed below is 51 Madison Avenue, New York, New York 10010. A majority of the Trustees and all of the members of the Advisory Board are not “interested persons” (as defined by the 1940 Act) of the Funds (“Independent Trustees”)

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Interested Trustee	John Y. Kim* 9/24/60	Indefinite; MainStay Funds: Trustee since 2008; MainStay Funds Trust: Trustee since 2008.***	President (since May 2015), Vice Chairman (2014 to 2015), President, Investments Group (2012 to 2015) and Chief Investment Officer (since 2011), New York Life Insurance Company; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2015), New York Life Investment Management Holdings LLC; Chairman of the Board of Managers (2008 to 2015) and Chief Executive Officer (2008 to 2014), New York Life Investment Management LLC; Member of the Board, NYL Investors LLC, Ausbil Investment Management Limited, Candriam Belgium S.A., Candriam France S.A.S., and Candriam Luxembourg S.C.A. (2014 to 2015); Madison Capital Funding LLC, GoldPoint Partners (fka NYLCAP Manager LLC) and MacKay Shields LLC (2008 to 2014); MCF Capital Management LLC (2012 to 2014); Private Advisors, L.L.C. (2010 to 2014); and McMorgan and Company LLC (2008 to 2012)	83	MainStay VP Funds Trust: Trustee since 2008 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

* This Trustee is considered to be an “interested person” of the MainStay Group of Funds within the meaning of the 1940 Act because of his affiliation with New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S., Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail above in the column entitled “Principal Occupation(s) During Past Five Years.” Mr. Kim has resigned from the Board, effective December 31, 2015. Effective on that date, the Board has appointed Christopher O. Blunt to become an interested Trustee.

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

34 MainStay MAP Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non- Interested Trustees	Susan B. Kerley 8/12/51	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 1990.***	President, Strategic Management Advisors LLC (since 1990)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; and Legg Mason Partners Equity Trust: Trustee since 1991 (53 portfolios).
	Alan R. Latshaw 3/27/51	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2006; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	Retired; Partner, Ernst & Young LLP (2002 to 2003); Partner, Arthur Andersen LLP (1989 to 2002); Consultant to the MainStay Funds Audit and Compliance Committee (2004 to 2006)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011; State Farm Associates Funds Trusts: Trustee since 2005 (4 portfolios); State Farm Mutual Fund Trust: Trustee since 2005 (15 portfolios); and State Farm Variable Product Trust: Trustee since 2005 (9 portfolios).
	Peter Meenan 12/5/41	Indefinite; MainStay Funds: Chairman since 2013 and Trustee since 2007; MainStay Funds Trust: Chairman since 2013 and Trustee since 2002.***	Retired; Independent Consultant (2004 to 2013); President and Chief Executive Officer, Babson—United, Inc. (financial services firm) (2000 to 2004); Independent Consultant (1999 to 2000); Head of Global Funds, Citicorp (1995 to 1999)	83	MainStay VP Funds Trust: Chairman since 2013 and Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Chairman since 2013 and Trustee since 2011; Private Advisors Alternative Strategies Fund: Chairman since 2013 and Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Chairman since 2013 and Trustee since 2011.
	Richard H. Nolan, Jr. 11/16/46	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Managing Director, ICC Capital Management (since 2004); President—Shields/ Alliance, Alliance Capital Management (1994 to 2004)	83	MainStay VP Funds Trust: Trustee since 2006 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.
	Richard S. Trutanic 2/13/52	Indefinite; MainStay Funds: Trustee since 1994; MainStay Funds Trust: Trustee since 2007.***	Chairman and Chief Executive Officer, Somerset & Company (financial advisory firm) (since 2004); Managing Director, The Carlyle Group (private investment firm) (2002 to 2004); Senior Managing Director, Partner and Board Member, Groupe Arnault S.A. (private investment firm) (1999 to 2002)	83	MainStay VP Funds Trust: Trustee since 2007 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011.

35

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Non-Interested Trustees	Roman L. Weil**** 5/22/40	Indefinite; MainStay Funds: Trustee and Audit Committee Financial Expert since 2007; MainStay Funds Trust: Trustee and Audit Committee Financial Expert since 2007.***	President, Roman L. Weil Associates, Inc. (consulting firm) (since 1981); V. Duane Rath Professor Emeritus of Accounting, Chicago Booth School of Business, University of Chicago (since 2008); Visiting Professor, Johns Hopkins University (2013); Visiting Professor, University of California—San Diego (since 2012); Visiting Professor, Southern Methodist University (2011); Visiting Professor, NYU Stern School of Business, New York University (2011)	83	MainStay VP Funds Trust: Trustee and Audit Committee Financial Expert since 1994 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee and Audit Committee Financial Expert since 2011; Private Advisors Alternative Strategies Fund: Trustee and Audit Committee Financial Expert since 2011; and MainStay DefinedTerm Municipal Opportunities Fund: Trustee and Audit Committee Financial Expert since 2011
	John A. Weisser 10/22/41	Indefinite; MainStay Funds: Trustee since 2007; MainStay Funds Trust: Trustee since 2007.***	Retired; Managing Director of Salomon Brothers, Inc. (1971 to 1995)	83	MainStay VP Funds Trust: Trustee since 1997 (30 portfolios)**; Private Advisors Alternative Strategies Master Fund: Trustee since 2011; Private Advisors Alternative Strategies Fund: Trustee since 2011; MainStay DefinedTerm Municipal Opportunities Fund: Trustee since 2011; Direxion Insurance Trust: Trustee since 2007 (1 portfolio); Direxion Funds: Trustee since 2007 (18 portfolios); and Direxion Shares ETF Trust: Trustee since 2008 (52 portfolios).

** Includes prior service as a Director of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

*** Includes prior service as a Director/Trustee of certain predecessor entities to MainStay Funds Trust.

**** Pursuant to the Board’s retirement policy, Mr. Weil will retire on or about December 31, 2015.

36 MainStay MAP Fund

	Name and Date of Birth	Term of Office, Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen by Board Member	Other Directorships Held by Board Member
Advisory Board Members	David H. Chow 12/29/57*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Member, Governing Council (the board) of the Independent Directors Council (since 2012); President and Member of the Board, CFA Society of Stamford (since 2009); Member of the Board, Forward Management, LLC (since 2008); Trustee, Berea College of Kentucky (since 2009); Founder and CEO, DanCourt Management, LLC (since 1999).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015; and Market Vectors ETF Trust: Independent Chairman of the Board of Trustees since 2008 and Trustee since 2006 (55 portfolios).
	Jacques P. Perold 5/12/58*****	Indefinite; MainStay Funds: Advisory Board member since June 4, 2015; MainStay Funds Trust: Advisory Board member since June 4, 2015.	Retired; Trustee, Boston University (since 2014); President, Fidelity Management & Research Company (2009 to 2014); Founder, President and Chief Executive Officer, Geode Capital Management, LLC (2001 to 2009).	83	MainStay VP Funds Trust: Advisory Board Member since June 4, 2015 (30 portfolios); Private Advisors Alternative Strategies Fund: Advisory Board Member since June 4, 2015; Private Advisors Alternative Strategies Master Fund: Advisory Board Member since June 4, 2015; and MainStay DefinedTerm Municipal Opportunities Fund: Advisory Board Member since June 4, 2015.

***** Effective January 1, 2016, Messrs. Chow and Perold will serve as Trustees.

37

	Name and Date of Birth	Position(s) Held and Length of Service	Principal Occupation(s) During Past Five Years
Officers (Who Are Not Board Members)*	Stephen P. Fisher 2/22/59	President, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Chairman and Chief Executive Officer (since 2014), President and Chief Operating Officer (2008 to 2013), NYLIFE Distributors LLC; Chairman of the Board, NYLIM Service Company LLC (since 2008); President (since May 2015), Co-President (2014 to 2015) and Senior Managing Director (since 2005), New York Life Investment Management LLC; President, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**
	Jack R. Benintende 5/12/64	Treasurer and Principal Financial and Accounting Officer, MainStay Funds (since 2007), MainStay Funds Trust (since 2009)	Managing Director, New York Life Investment Management LLC (since 2007); Treasurer and Principal Financial and Accounting Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2007)**; and Assistant Treasurer, New York Life Investment Management Holdings LLC (2008 to 2012)
	Kevin M. Bopp 2/24/69	Vice President and Chief Compliance Officer, MainStay Funds and MainStay Funds Trust (since October 2014)	Vice President and Chief Compliance Officer, MainStay VP Funds Trust, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2014); Director and Associate General Counsel (2011 to 2014) and Vice President and Assistant General Counsel (2010 to 2011), New York Life Investment Management LLC; Assistant Secretary, MainStay Funds, MainStay Funds Trust and MainStay VP Funds Trust (2010 to 2014)**, Private Advisors Alternative Strategies Fund, Private Advisors Alternative Strategies Master Fund and MainStay DefinedTerm Municipal Opportunities Fund (2011 to 2014)
	J. Kevin Gao 10/13/67	Secretary and Chief Legal Officer, MainStay Funds and MainStay Funds Trust (since 2010)	Managing Director and Associate General Counsel, New York Life Investment Management LLC (since 2010); Secretary and Chief Legal Officer, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2010)**
	Scott T. Harrington 2/8/59	Vice President— Administration, MainStay Funds (since 2005), MainStay Funds Trust (since 2009)	Director, New York Life Investment Management LLC (including predecessor advisory organizations) (since 2000); Member of the Board of Directors, New York Life Trust Company (since 2009); Vice President—Administration, Private Advisors Alternative Strategies Master Fund, Private Advisors Alternative Strategies Fund and MainStay DefinedTerm Municipal Opportunities Fund (since 2011) and MainStay VP Funds Trust (since 2005)**

* The Officers listed above are considered to be “interested persons” of the MainStay Group of Funds within the meaning of the 1940 Act because of their affiliations with the MainStay Group of Funds, New York Life Insurance Company, New York Life Investment Management LLC, Candriam Belgium S.A., Candriam France S.A.S, Cornerstone Capital Management Holdings LLC, Cornerstone Capital Management LLC, MacKay Shields LLC, Institutional Capital LLC, NYL Investors LLC, NYLIFE Securities LLC and/or NYLIFE Distributors LLC, as described in detail in the column captioned “Principal Occupation(s) During Past Five Years.” Officers are elected annually by the Board to serve a one year term.

** Includes prior service as an Officer of MainStay VP Series Fund, Inc., the predecessor to MainStay VP Funds Trust.

38 MainStay MAP Fund

MainStay Funds

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

Equity

U.S. Equity

MainStay Common Stock Fund

MainStay Cornerstone Growth Fund

MainStay Epoch U.S. All Cap Fund

MainStay Epoch U.S. Equity Yield Fund

MainStay ICAP Equity Fund

MainStay ICAP Select Equity Fund

MainStay Large Cap Growth Fund

MainStay MAP Fund

MainStay S&P 500 Index Fund

MainStay U.S. Equity Opportunities Fund

MainStay U.S. Small Cap Fund

International/Global Equity

MainStay Emerging Markets Opportunities Fund

MainStay Epoch Global Choice Fund

MainStay Epoch Global Equity Yield Fund

MainStay Epoch International Small Cap Fund

MainStay ICAP International Fund

MainStay International Equity Fund

MainStay International Opportunities Fund

Income

Taxable Bond

MainStay Floating Rate Fund

MainStay Global High Income Fund

MainStay Government Fund

MainStay High Yield Corporate Bond Fund

MainStay High Yield Opportunities Fund

MainStay Indexed Bond Fund

MainStay Short Duration High Yield Fund

MainStay Total Return Bond Fund

MainStay Unconstrained Bond Fund

Municipal/Tax Advantaged Bond

MainStay California Tax Free Opportunities Fund¹

MainStay High Yield Municipal Bond Fund

MainStay New York Tax Free Opportunities Fund²

MainStay Tax Advantaged Short Term Bond Fund

MainStay Tax Free Bond Fund

Money Market

MainStay Money Market Fund

Mixed Asset

MainStay Balanced Fund

MainStay Convertible Fund

MainStay Income Builder Fund

Alternative

MainStay Absolute Return Multi-Strategy Fund

MainStay Cushing MLP Premier Fund

MainStay Cushing Renaissance Advantage Fund

MainStay Cushing Royalty Energy Income Fund

MainStay Marketfield Fund

Asset Allocation/Target Date

MainStay Conservative Allocation Fund

MainStay Growth Allocation Fund

MainStay Moderate Allocation Fund

MainStay Moderate Growth Allocation Fund

MainStay Retirement 2010 Fund

MainStay Retirement 2020 Fund

MainStay Retirement 2030 Fund

MainStay Retirement 2040 Fund

MainStay Retirement 2050 Fund

Manager

New York Life Investment Management LLC

New York, New York

Subadvisors

Candriam France S.A.S.³

Paris, France

Cornerstone Capital Management Holdings LLC³

New York, New York

Cornerstone Capital Management LLC³

Bloomington, Minnesota

Cushing Asset Management, LP

Dallas, Texas

Epoch Investment Partners, Inc.

New York, New York

Institutional Capital LLC³

Chicago, Illinois

MacKay Shields LLC³

New York, New York

Marketfield Asset Management LLC

New York, New York

Markston International LLC

White Plains, New York

NYL Investors LLC³

New York, New York

Winslow Capital Management LLC

Minneapolis, Minnesota

Legal Counsel

Dechert LLP

Independent Registered Public Accounting Firms

KPMG LLP⁴

PricewaterhouseCoopers LLP⁵

1. This Fund is only registered for sale in AZ, CA, NV, OR, UT, and WA.

2. This Fund is only registered for sale in CT, DE, FL, MA, NJ, NY, and VT.

3. An affiliate of New York Life Investment Management LLC.

4. For all Funds listed above except MainStay Marketfield Fund.

5. For MainStay Marketfield Fund only.

Not part of the Annual Report

For more information

800-MAINSTAY (624-6782)

mainstayinvestments.com

MainStay Investments^® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds^® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

©2015 NYLIFE Distributors LLC. All rights reserved.

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

1673827 MS291-15 MSMP11-12/15 (NYLIM) NL220

Item 2. Code of Ethics.

As of the end of the period covered by this report, the Registrant has adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer (“PEO”) and principal financial officer (“PFO”). A copy of the Code is filed herewith. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.

Item 3. Audit Committee Financial Expert.

The Board of Trustees has determined that the Registrant has two audit committee financial experts serving on its Audit Committee. The Audit Committee financial experts are Alan R. Latshaw and Roman L. Weil. Messrs. Latshaw and Weil are “independent” within the meaning of that term under the Investment Company Act of 1940.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees

The aggregate fees billed for the fiscal year ended October 31, 2015 for professional services rendered by KPMG for the audit of the Registrant’s annual financial statements or services that are normally provided by KPMG in connection with statutory and regulatory filings or engagements for that fiscal year were $656,500.

The aggregate fees billed for the fiscal year ended October 31, 2014 for professional services rendered by KPMG LLP (“KPMG”) for the audit of the Registrant’s annual financial statements or services that are normally provided by KPMG in connection with statutory and regulatory filings or engagements for that fiscal year were $650,150.

(b) Audit-Related Fees

The aggregate fees billed for assurance and related services by KPMG that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item were: (i) $0 for the fiscal year ended October 31, 2015, and (ii) $0 for the fiscal year ended October 31, 2014. These audit-related services include review of financial highlights for Registrant’s registration statements and issuance of consents to use the auditor’s reports.

(c) Tax Fees

The aggregate fees billed for professional services rendered by KPMG for tax compliance, tax advice, and tax planning were: (i) $0 during the fiscal year ended October 31, 2015, and (ii) $0 during the fiscal year ended October 31, 2014. These services primarily included preparation of federal, state and local income tax returns and excise tax returns, as well as services relating to excise tax distribution requirements.

(d) All Other Fees

The aggregate fees billed for products and services provided by KPMG, other than the services reported in paragraphs (a) through (c) of this Item were: (i) $0 during the fiscal year ended October 31, 2015, and (ii) $0 during the fiscal year ended October 31, 2014.

(e) Pre-Approval Policies and Procedures

(1) The Registrant’s Audit and Compliance Committee has adopted pre-approval policies and procedures (the “Procedures”) to govern the Committee’s pre-approval of (i) all audit services and permissible non-audit services to be provided to the Registrant by its independent accountant, and (ii) all permissible non-audit services to be provided by such independent accountant to the Registrant’s investment adviser and to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant (collectively, the “Service Affiliates”) if the services directly relate to the Registrant’s operations and financial reporting. In accordance with the Procedures, the Audit and Compliance Committee is responsible for the engagement of the independent accountant to certify the Registrant’s financial statements for each fiscal year. With respect to the pre-approval of non-audit services provided to the Registrant and its Service Affiliates, the Procedures provide that the Audit and Compliance Committee may annually pre-approve a list of the types of services that may be provided to the Registrant or its Service Affiliates, or the Audit and Compliance Committee may pre-approve such services on a project-by-project basis as they arise. Unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit and Compliance Committee if it is to be provided by the independent accountant. The Procedures also permit the Audit and Compliance Committee to delegate authority to one or more of its members to pre-approve any proposed non-audit services that have not been previously pre-approved by the Audit and Compliance Committee, subject to the ratification by the full Audit and Compliance Committee no later than its next scheduled meeting. To date, the Audit and Compliance Committee has not delegated such authority.

(2) With respect to the services described in paragraphs (b) through (d) of this Item 4, no amount was approved by the Audit and Compliance Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) There were no hours expended on KPMG’s engagement to audit the Registrant’s financial statements for the most recent fiscal year attributable to work performed by persons other than KPMG’s full-time, permanent employees.

(g) All non-audit fees billed by KPMG for services rendered to the Registrant for the fiscal years ended October 31, 2015 and October 31, 2014 are disclosed in 4(b)-(d) above.

The aggregate non-audit fees billed by KPMG for services rendered to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant were approximately: (i) 0 for the fiscal year ended October 31, 2015, and (ii) $0 for the fiscal year ended October 31, 2014.

(h) The Registrant’s Audit and Compliance Committee has determined that the non-audit services rendered by KPMG for the fiscal year ended October 31, 2015 to the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the Registrant’s investment adviser that provides ongoing services to the Registrant that were not required to be pre-approved by the Audit and

Compliance Committee because they did not relate directly to the operations and financial reporting of the registrant were compatible with maintaining the respective independence of KPMG during the relevant time period.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments

The Schedule of Investments is included as part of Item 1 of this report.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not Applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Since the Registrant’s last response to this Item, there have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) Based on an evaluation of the Registrant’s Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) (the “Disclosure Controls”), as of a date within 90 days prior to the filing date (the “Filing Date”) of this Form N-CSR (the “Report”), the Registrant’s principal executive officer and principal financial officer have concluded that the Disclosure Controls are reasonably designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the Filing Date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d)) under the Investment Company Act of 1940 that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Code of Ethics

(a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940.

(b) Certifications of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

THE MAINSTAY FUNDS

By:	/s/ Stephen P. Fisher
	Stephen P. Fisher
	President and Principal Executive Officer
Date: January 8, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Stephen P. Fisher
	Stephen P. Fisher
	President and Principal Executive Officer
Date: January 8, 2016
By:	/s/ Jack R. Benintende
	Jack R. Benintende
	Treasurer and Principal Financial
	and Accounting Officer
Date: January 8, 2016

EXHIBIT INDEX

(a)(1) Code of Ethics

(a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940.

(b) Certification of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002.