[EX-99.CERT]
Exhibit (a)
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
THE MAINSTAY FUNDS
Approved by the Board of Trustees
of The MainStay Funds
as of December 8, 2003
Pursuant to the Sarbanes-Oxley Act of 2002
I. Introduction and Application
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The MainStay Funds (the "Trust") recognizes the importance of high ethical
standards in the conduct of its business and requires this Code of Ethics
("Code") be observed by its principal executive officers (each, a "Covered
Officer") (defined below). In accordance with the Sarbanes-Oxley Act of 2002
(the "Act") and the rules promulgated thereunder by the U.S. Securities and
Exchange Commission ("SEC") the Trust is required to file reports pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended ("1934
Act"), and must disclose whether it has adopted a code of ethics applicable to
the principal executive officers. The Trust's Board of Trustees ("Board"),
including a majority of its Independent Trustees (defined below), has approved
this Code as compliant with the requirements of the Act and related SEC rules.
All recipients of the Code are directed to read it carefully, retain it for
future reference, and abide by the rules and policies set forth herein. Any
questions concerning the applicability or interpretation of such rules and
policies, and compliance therewith, should be directed to the relevant
Compliance Officer (defined below).
II. Purpose
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This Code has been adopted by the Board in accordance with the Act and the rules
promulgated by the SEC in order to deter wrongdoing and promote:
o honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
o full, fair, accurate, timely and understandable disclosure in reports
and documents filed by the Trust with the SEC or made in other public
communications by the Trust;
o compliance with applicable governmental laws, rules and regulations;
o prompt internal reporting to an appropriate person or persons of
violations of the Code to an appropriate person or personsidentified
in the Code; and
o accountability for adherence to the Code.
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III. Definitions
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(A) "Covered Officer" means the principal executive officer and senior
financial officers, including the principal financial officer, controller or
principal accounting officer, or persons performing similar functions. The
Covered Officers of the Trust shall be identified in Schedule I, as amended from
time to time.
(B) "Compliance Officer" means the person appointed by the Trust's Board of
Trustees to administer the Code. The Compliance Officer of the Trust shall be
identified in Schedule II, as amended from time to time.
(C) "Trustee" means a trustee of the Trust, as applicable.
(D) "Executive Officer" shall have the same meaning as set forth in Rule
3b-7 of the 1934 Act. Subject to any changes in the Rule, an Executive Officer
means the president, any vice president, any officer who performs a policy
making function, or any other person who performs similar policy making
functions for the Trust.
(E) "Independent Trustee" means a trustee of the Trust who is not an
"interested person" of the Trust within the meaning of Section 2(a)(19) of the
Investment Company Act of 1940, as amended ("Investment Company Act").
(F) "Implicit Waiver" means the Compliance Officer failed to take action
within a reasonable period of time regarding a material departure from a
provision of the Code that has been made known to an Executive Officer.
(G) "Restricted List" means that listing of securities maintained by the
Compliance Officer in which trading by certain individuals subject to the
Trust's 17j-1 code of ethics is generally prohibited.
(H) "Waiver" means the approval by the Compliance Officer of a material
departure from a provision of the Code.
IV. Honest and Ethical Conduct
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(A) Overview. A "conflict of interest" occurs when a Covered Officer's
personal interest interferes with the interests of, or his or her service to,
the Trust. For example, a conflict of interest would arise if a Covered Officer,
or a member of his or her family, receives improper personal benefits as a
result of his or her position with the Trust.
Certain conflicts of interest arise out of the relationships between Covered
Officers and the Trust and already are subject to conflict of interest
provisions in the Investment Company Act and the Investment Advisers Act of
1940, as amended (the "Advisers Act"). For example, Covered Officers may not
individually engage in certain transactions (such as the purchase or sale of
securities or other property) with the Trust because of their status as
"affiliated persons" of the Trust. The Trust's and certain of its service
providers' compliance policies, programs and procedures are designed to prevent,
or identify and correct, violations of these provisions. This Code does not, and
is not intended to, restate or replace these programs and procedures, and such
conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit,
conflicts may arise or result from the contractual relationship between the
Trust and New York Life Investment Management LLC (the "Adviser"). The Covered
Officers may be officers or employees of the Adviser. As a result,
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this Code recognizes that the Covered Officers will, in the normal course of
their duties (whether formally for the Trust or the Adviser), be involved in
establishing policies and implementing decisions that will have different
effects on the Adviser and the Trust. The participation of the Covered Officers
in such activities is inherent in the contractual relationships between the
Trust and the Adviser and is consistent with the performance by the Covered
Officers of their duties as officers of the Trust. Thus, if performed in
conformity with the provisions of the Investment Company Act and the Advisers
Act, such activities normally will be deemed to have been handled ethically. In
addition, it is recognized by the Board that the Covered Officers may also be
officers or employees of one or more other investment companies covered by this
or other codes.
(B) General Policy. Each Covered Officer shall adhere to high standards of
honest and ethical conduct. Each Covered Officer has a duty to exercise his or
her authority and responsibility for the benefit of the Trust and its
shareholders, to place the interests of the shareholders first, and to refrain
from having outside interests that conflict with the interests of the Trust and
its shareholders. Each such person must avoid any circumstances that might
adversely affect, or appear to affect, his or her duty of loyalty to the Trust
and its shareholders in discharging his or her responsibilities, including the
protection of confidential information and corporate integrity.
(C) Conflicts of Interest. Other conflicts of interest are covered by the
Code, even if such conflicts of interest are not subject to provisions of the
Investment Company Act. The following list provides examples of conflicts of
interest under the Code, but Covered Officers should keep in mind that these
examples are not exhaustive. The overarching principle is that the personal
interest of a Covered Officer should not be placed improperly before the
interest of the Trust.
(1) Prohibited Conflicts of Interest. Each Covered Officer must:
--------------------------------
o not use his or her personal influence or personal relationships improperly
to influence decisions or financial reporting by the Trust whereby the
Covered Officer would benefit personally to the detriment of the Trust;
o not cause the Trust to take action, or fail to take action, for the
individual personal benefit of the Covered Officer rather than benefit the
Trust;
o not use material non-public knowledge of portfolio transactions made or
contemplated for the Trust to trade personally or cause others to trade
personally in contemplation of the market effect of such transactions; or
o report at least annually the information elicited in the Trust's Trustee's
and Officer's Questionnaire relating to potential conflicts of interest.
(2) Duty to Disclose Conflicts. Each Covered Officer has the duty to
disclose to the Compliance Officer any interest that he or she may have in any
firm, corporation or business entity that is not affiliated or participating in
any joint venture or partnership with the Trust or its affiliates and that does
business with the Trust or that otherwise presents a possible conflict of
interest. Disclosure must be timely so that the Trust may take action concerning
any possible conflict as it deems appropriate. It is recognized, however, that
the Trust or its affiliates may have business relationships with many
organizations and that a relatively small interest in publicly traded securities
of an organization does not necessarily give rise to a prohibited conflict of
interest. Therefore, the following procedures have been adopted.
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(3) Conflicts of Interest that may be Waived. There are some conflict of
interest situations for which a Covered Officer may seek a Waiver from a
provision(s) of the Code. Waivers must be sought in accordance with Section VII
of the Code. Examples of these include:
o Board Memberships. Except as described below, it is considered generally
incompatible with the duties of a Covered Officer to assume the position of
director of a corporation not affiliated with the Trust. A report should be
made by a Covered Officer to the Compliance Officer of any invitation to
serve as a director of a corporation that is not an affiliate and the
person must receive the approval of the Compliance Officer prior to
accepting any such directorship. In the event that approval is given, the
Compliance Officer shall immediately determine whether the corporation in
question is to be placed on the Trust's Restricted List.
o "Other" Business Interests. Except as described below, it is considered
generally incompatible with the duties of a Covered Officer to act as an
officer, general partner, consultant, agent, representative or employee of
any business other than an affiliate. A report should be made of any
invitation to serve as an officer, general partner, consultant, agent,
representative or employee of any business that is not an affiliate for the
approval of the Compliance Officer prior to accepting any such position. In
the event that approval is given, the Compliance Officer shall immediately
determine whether the business in question is to be placed on the Trust's
Restricted List.
o Gifts, Entertainment, Favors or Loans. Covered Officers are subject to the
NYLIM Gift and Entertainment Policy and should refer to that Policy for
guidance with respect to the limits on giving and receiving
gifts/entertainment to and from third parties that do business with the
Trust.
o Permissible Outside Activities. Covered Officers who, in the regular course
of their duties relating to the Trust's private equity/venture capital
advisory and investment activities, are asked to serve as the director,
officer, general partner, consultant, agent, representative or employee of
a privately-held business may do so with the prior written approval of the
Compliance Officer.
o Doing Business with the Trust. Except as approved by the Compliance
Officer, Covered Officers may not have a monetary interest, as principal,
co-principal, agent or beneficiary, directly or indirectly, or through any
substantial interest in any other corporation or business unit, in any
transaction involving the Trust, subject to such exceptions as are
specifically permitted under law.
V. Full, Fair, Accurate, Timely and Understandable Disclosure and Compliance
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Covered Officers shall:
o be familiar with the disclosure requirements generally applicable to
the Trust;
o not knowingly misrepresent, or cause others to misrepresent, facts
about the Trust to others, whether within or outside the Trust,
including the Trust's Trustees and auditors, governmental regulators
and self-regulatory organizations;
o to the extent appropriate within his or her area of responsibility,
consult with other officers and employees of the Trust, the Adviser
and other Trust service providers with the goal of promoting full,
fair, accurate, timely and understandable disclosure in the reports
and documents the Trust files with, or submits to, the SEC and in
other public communications made by the Trust; and
o promote compliance with the standards and restrictions imposed by
applicable laws, rules and regulations.
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VI. Internal Reporting by Covered Persons
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(A) Certifications and Accountability. Each Covered Officer shall:
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(1) upon adoption of the Code (or thereafter as applicable upon
becoming a Covered Officer), affirm in writing on Schedule A
hereto that the Covered Officer has received, read, and
understands the Code;
(2) annually thereafter affirm on Schedule A hereto that the Covered
Officer has complied with the requirements of the Code; and
(3) not retaliate against any other Covered Officer or employee of
the Trust or their affiliated persons for reports of potential
violations that are made in good faith.
(B) Reporting. A Covered Officer shall promptly report any knowledge of a
material violation of this Code to the Compliance Officer. Failure to do so is
itself a violation of the Code.
VII. Waivers of Provisions of the Code
---------------------------------
(A) Application of the Code. The Compliance Officer is responsible for
applying this Code to specific situations in which questions are presented under
it and has the authority to interpret this Code in any particular situation. The
Compliance Officer is authorized to consult, as appropriate, with counsel to the
Trust/counsel to the Independent Trustees. However, any approvals or Waivers
sought by and/or granted to a Covered Officer will be reported to the Board in
accordance with Section VIII, below.
(B) Waivers. The Compliance Officer may grant Waivers to the Code in
circumstances that present special hardship. Waivers shall be structured to be
as narrow as is reasonably practicable with appropriate safeguards designed to
prevent abuse of the Waiver. To request a Waiver from the Code, the Covered
Officer shall submit to the Compliance Officer a written request describing the
transaction, activity or relationship for which a Waiver is sought. The request
shall briefly explain the reason for engaging in the transaction, activity or
relationship. Notwithstanding the foregoing, no exception will be granted where
such exception would result in a violation of SEC rules or other applicable
laws.
(C) Documentation. The Compliance Officer shall document all Waivers
(including Implicit Waivers). If a Waiver is granted, the Compliance Officer
shall prepare a brief description of the nature of the Waiver, the name of the
Covered Officer and the date of the Waiver so that this information may be
disclosed in the next Form N-CSR to be filed on behalf of the Trust or posted on
the Trust's internet website within five business days following the date of the
Waiver. All Waivers must be reported to the Board at each quarterly meeting as
set forth in Section VIII below.
VIII. Board Reporting
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The Compliance Officer shall report any violations of the Code to the Board for
its consideration on a quarterly basis. At a minimum, the report shall:
o describe the violation under the Code and any sanctions imposed;
o identify and describe any Waivers sought or granted under the Code;
and
o identify any recommended changes to the Code.
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IX. Amendments
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The Covered Officers and the Compliance Officer may recommend amendments to the
Code for the consideration and approval of the Board. In connection with any
amendment to the Code, the Compliance Officer shall prepare a brief description
of the amendment so that the necessary disclosure may be made with the next Form
N-CSR to be filed on behalf of the Trust, or posted on the Trust's internet
website within five business days following the date of the amendment.
X. Sanctions
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Compliance by Covered Officers with the provisions of the Code is required.
Covered Officers should be aware that in response to any violation, the Trust
will take whatever action is deemed necessary under the circumstances,
including, but not limited to, the imposition of appropriate sanctions. These
sanctions may include, among others, the reversal of trades, reallocation of
trades to client accounts, fines, disgorgement of profits, suspension or
termination.
XI. Record-keeping
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The Compliance Officer shall maintain all records, including any internal
memoranda, relating to compliance with the Code or Waivers of a provision(s) of
the Code, for a period of 7 years from the end of the fiscal year in which such
document was created, 2 years in an accessible place.
XII. Other Policies and Procedures
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This Code shall be the sole code of ethics adopted by the Trust for purposes of
Section 406 of the Act and the rules and forms applicable to registered
investment companies thereunder. Insofar as other policies or procedures of the
Trust, the Adviser, and NYLIFE Distributors LLC (the "Underwriter"), or other
service providers govern or purport to govern the behavior or activities of the
Covered Officers who are subject to this Code, they are superseded by this Code
to the extent that they overlap or conflict with the provisions of this Code.
The Trust's, the Adviser's and the Underwriter's codes of ethics under Rule
17j-1 under the Investment Company Act are separate requirements applying to the
Covered Officers and others, and are not part of this Code.
XIII. Confidentiality
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All reports and records prepared or maintained pursuant to this Code will be
considered confidential and shall be maintained and protected accordingly.
Except as otherwise required by law or this Code, such matters shall not be
disclosed to anyone other than the Board, the Adviser and the Compliance
Officer, and their respective counsels.
XIV. Internal Use
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The Code is intended solely for the internal use by the Trust and does not
constitute an admission, by or on behalf of the Trust, as to any fact,
circumstance, or legal conclusion.
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SCHEDULE I
COVERED OFFICERS
Christopher O. Blunt, President
Jeffrey J. Gaboury, Vice President, Treasurer and Chief Financial Officer
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SCHEDULE II
COMPLIANCE OFFICER
Alison Micucci
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EXHIBIT A
The MainStay Funds
Code of Ethics for
Principal Executive and Senior Financial Officers
INITIAL AND ANNUAL CERTIFICATION OF
COMPLIANCE WITH THE
MAINSTAY FUNDS CODE OF ETHICS FOR
PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
I hereby certify that I have received the MainStay Funds Code of Ethics for
Principal Executive and Senior Financial Officers adopted pursuant to the
Sarbanes-Oxley Act of 2002 (the "Code") and that I have read and understood the
Code. I further certify that I am subject to the Code and will comply with each
of the Code's provisions to which I am subject.
I hereby certify that I have received the MainStay Funds Code of Ethics for
Principal Executive and Senior Financial Officers adopted pursuant to the
Sarbanes-Oxley Act of 2002 (the "Code") and that I have read and understood the
Code. I further certify that I have complied with and will continue to comply
with each of the provisions of the Code to which I am subject.
/s/ Christopher O. Blunt
-------------------------------------
(Signature)
Name: Christopher O. Blunt
Title/Department: President, The MainStay Funds
Date: September 2, 2005
/s/ Jeffrey J. Gaboury
-------------------------------------
(Signature)
Name: Jeffrey J. Gaboury
Title/Department: Vice President, Treasurer
and Chief Financial Officer, The MainStay Funds
Date: September 2, 2005
Received By: Michael Hession
Signature: /s/ Michael Hession
----------------------
Date: September 2, 2005
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[EX-99.CERT]
Exhibit (b)(1)
SECTION 302 CERTIFICATIONS
I, Christopher O. Blunt, President of The MainStay Funds, certify that:
1. I have reviewed this report on Form N-CSR of The MainStay Funds;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report based on such
evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting 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; and
5. The registrant's other certifying officer and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
trustees (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
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