UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act File Number 811-22321
MAINSTAY FUNDS TRUST
(Exact name of Registrant as specified in charter)
51 Madison Avenue, New York, NY 10010
(Address of principal executive offices) (Zip code)
J. Kevin Gao, Esq.
30 Hudson Street
Jersey City, New Jersey 07302
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 576-7000
Date of fiscal year end: April 30
(MainStay CBRE Global Infrastructure Fund, MainStay CBRE Real Estate Fund, MainStay Conservative ETF Allocation Fund, MainStay Defensive ETF Allocation Fund, MainStay Equity ETF Allocation Fund, MainStay Growth ETF Allocation Fund, MainStay Moderate ETF Allocation Fund, MainStay MacKay Intermediate Tax Free Bond Fund and MainStay MacKay Short Term Municipal Fund)
Date of reporting period: October 31, 2020
FORM N-CSR
The information presented in this Form N-CSR relates solely to the
MainStay CBRE Global Infrastructure Fund, MainStay CBRE Real Estate Fund, MainStay Conservative
ETF Allocation Fund, MainStay Defensive ETF Allocation Fund, MainStay Equity ETF Allocation Fund,
MainStay Growth ETF Allocation Fund, MainStay Moderate ETF Allocation Fund, MainStay MacKay
Intermediate Tax Free Bond Fund and MainStay MacKay Short Term Municipal Fund
series of the Registrant.
Item 1. | Reports to Stockholders. |
MainStay CBRE Global Infrastructure Fund
Message from the President and Semiannual Report
Unaudited | October 31, 2020
Beginning on January 1, 2021, paper copies of each MainStay Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from MainStay Funds or from your financial intermediary. Instead, the reports will be made available on the MainStay Funds’ website. You will be notified by mail and provided with a website address to access the report each time a new report is posted to the website.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from MainStay Funds electronically by calling toll-free 800-624-6782, by sending an e-mail to MainStayShareholderServices@nylim.com, or by contacting your financial intermediary.
You may elect to receive all future shareholder reports in paper form free of charge. If you hold shares of a MainStay Fund directly, you can inform MainStay Funds that you wish to receive paper copies of reports by calling toll-free 800-624-6782 or by sending an e-mail to MainStayShareholderServices@nylim.com. If you hold shares of a MainStay Fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper form will apply to all MainStay Funds in which you are invested and may apply to all funds held with your financial intermediary.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Although the global coronavirus pandemic continued to afflict populations and economies around the world, most broad U.S. stock and bond markets gained ground, rebounding from earlier pandemic-related declines to rise during the six-month reporting period ended October 31, 2020.
The backdrop for the reporting period was set in February and March 2020 as COVID-19 spread worldwide. Governments struggled to support overburdened health care systems by issuing “stay-at-home” orders and placing restrictions on nonessential activity. These responses slowed global economic activity, driving stock and bond indices sharply lower. Emergency monetary and fiscal measures promised economic relief, and by early April, market sentiment began to improve. Unemployment remained high, some sectors of the global economy remained depressed and many questions surrounding the pandemic had yet to be answered. Nevertheless, investors looked forward to a gradual lessening of restrictions on nonessential businesses, the possibility of additional stimulus and apparent progress in the development of a vaccine.
As the reporting period began on May 1, 2020, the S&P 500® Index, a widely regarded benchmark of U.S. equity market performance, had already recovered much of the ground it lost in February and March 2020. By late-August, the S&P 500® Index had reached new record levels. However, a resurgence of coronavirus cases in many parts of the country and uncertainties related to the November 3, 2020, U.S. election caused the rally to falter as the reporting period drew to a close.
Nevertheless, for the reporting period as a whole, U.S. equity indices generally produced strong gains. Returns proved most robust among small- to mid-cap stocks and growth-oriented stocks, while large-cap and value-oriented issues posted slightly milder gains. Within the S&P 500® Index, the consumer discretionary sector generated the strongest returns buoyed by better-than-expected levels of consumer spending. The materials, information technology, industrials and communication services sectors all outperformed the S&P 500® Index. The utilities, financials, consumer staples, health care and real estate sectors generated positive returns but lagged the Index. Only the energy sector ended the reporting period in negative
territory, experiencing sharp losses due to low petroleum prices and weak global demand. International equities rose, but tended to trail their U.S. counterparts due to weaker underlying economic growth and somewhat less aggressive monetary and fiscal stimulus. Emerging-market equities tracked the performance of U.S. equity markets more closely, led by relatively strong returns in Asian markets, including China and South Korea.
Risk-on conditions prevailed for fixed-income markets as well, favoring lower credit quality and longer duration securities. Corporate bonds generally gained ground, with high-yield securities tending to outperform investment-grade instruments. Similarly, among municipal bond issues, high-yield securities outperformed. Recognized safe havens, such as long-term U.S. government bonds, which had attracted risk-averse investors during the height of the market sell-off in early 2020, experienced declining prices. Emerging-market debt, on the other hand, outperformed most other bond types as investors overlooked risk in pursuit of higher return potential.
Although the ongoing pandemic continues to change the way that many of us work and live our lives, at New York Life Investments, we remain dedicated to providing you, as a MainStay investor, with products, information and services to help you to navigate today’s rapidly changing investment environment. By taking appropriate steps to minimize community spread of COVID-19 within our organization and despite the challenges posed by the coronavirus pandemic, we continue to innovate with you in mind, introducing new suites of Funds and providing continuous insights into ever-evolving markets and investment strategies. Our goal is to give you the tools you need to build a resilient portfolio in the face of uncertain times.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Past performance is no guarantee of future results.
Not part of the Semiannual Report
Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at newyorklifeinvestments.com. 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 and other factors, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class 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 800-624-6782 or visit newyorklifeinvestments.com.
Average Annual Total Returns for the Period-Ended October 31, 2020
Class | Sales Charge | Inception Date | Six Months | One Year* | Five Years | Since Inception | Gross Expense Ratio2 | |||||||||||||||||||||
Class A Shares3 | Maximum 5.5% Initial Sales Charge | With sales charges Excluding sales charges | 10/16/2013 | | –1.09 4.67 | %
| | –11.78 –6.40 | %
| | 5.55 6.80 | %
| | 6.22 7.12 | %
| | 1.32 1.32 | %
| ||||||||||
Investor Class Shares4 | Maximum 5% Initial Sales Charge | With sales charges Excluding sales charges | 2/24/2020 | | –1.25 4.50 |
| | N/A N/A |
| | N/A N/A |
| | –17.70 –12.91 |
| | 1.79 1.79 |
| ||||||||||
Class C Shares3 | Maximum 1% CDSC if Redeemed Within One Year of Purchase | With sales charges Excluding sales charges | 2/28/2019 | | 3.23 4.23 |
| | –8.02 –7.13 |
| | N/A N/A |
| | 2.20 2.20 |
| | 2.54 2.54 |
| ||||||||||
Class I Shares3 | No Sales Charge | 6/28/2013 | 4.80 | –6.16 | 7.11 | 8.19 | 1.07 | |||||||||||||||||||||
Class R6 Shares | No Sales Charge | 2/24/2020 | 4.82 | N/A | N/A | –12.63 | 0.98 |
* | Effective at the close of business on February 21, 2020, the Fund changed its fiscal and tax year end from October 31 to April 30. |
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, if any, 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 may reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations (if any), please refer to the Notes to Financial Statements. |
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 Class A shares, Class C shares and Class I shares reflect the historical performance of the then-existing Class A shares, Class C shares and Class I shares, respectively, of the Voya CBRE Global Infrastructure Fund (the predecessor to the Fund, which was subject to a different fee structure) for periods prior to February 21, 2020. The MainStay CBRE Global Infrastructure Fund commenced operations on February 24, 2020. |
4. | Prior to June 30, 2020, the maximum initial sales charge for Investor Class shares was 5.5%, which is reflected in the average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
5 |
Benchmark Performance | Six Months | One Year | Five Years | Since Inception | ||||||||||||
FTSE Global Core Infrastructure 50/50 Index5 | 3.38 | % | –9.65 | % | 5.71 | % | 6.25 | % | ||||||||
Morningstar Infrastructure Category Average6 | 5.75 | –7.69 | 4.71 | 5.63 |
5. | The FTSE Global Core Infrastructure 50/50 Index is the Fund’s primary broad-based securities market index for comparison purposes. The FTSE Global Core Infrastructure 50/50 Index gives participants an industry-defined interpretation of infrastructure and adjusts the exposure to certain infrastructure sub-sectors. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
6. | The Morningstar Infrastructure Category Average is representative of funds that invest more than 60% of their assets in stocks of companies engaged in infrastructure activities. Industries considered to be part of the infrastructure sector include: oil & gas midstream; waste management; airports; integrated shipping; railroads; shipping & ports; trucking; engineering & construction; infrastructure operations; and the utilities sector. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.
6 | MainStay CBRE Global Infrastructure Fund |
Cost in Dollars of a $1,000 Investment in MainStay CBRE Global Infrastructure Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2020, to October 31, 2020, 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, 2020, to October 31, 2020.
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, 2020. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Share Class | Beginning Account Value 5/1/20 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/20 | Expenses Paid During Period1 | Net Expense Ratio During Period2 | ||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,046.70 | $ | 6.50 | $ | 1,018.85 | $ | 6.41 | 1.26% | |||||||||||
Investor Class Shares | $ | 1,000.00 | $ | 1,045.00 | $ | 7.47 | $ | 1,017.90 | $ | 7.38 | 1.45% | |||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,042.30 | $ | 10.71 | $ | 1,014.72 | $ | 10.56 | 2.08% | |||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,048.00 | $ | 5.01 | $ | 1,020.32 | $ | 4.94 | 0.97% | |||||||||||
Class R6 Shares | $ | 1,000.00 | $ | 1,048.20 | $ | 4.90 | $ | 1,020.42 | $ | 4.84 | 0.95% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. |
2. | Expenses are equal to the Fund’s annualized expense ratio to reflect the six-month period. |
7 |
Country Composition as of October 31, 2020 (Unaudited)
United States | 56.0 | % | ||
Italy | 8.0 | |||
United Kingdom | 6.0 | |||
Spain | 5.7 | |||
France | 5.4 | |||
Canada | 4.4 | |||
Australia | 3.5 | |||
Portugal | 2.6 | |||
Mexico | 1.7 |
Japan | 1.4 | % | ||
Hong Kong | 1.2 | |||
Germany | 1.1 | |||
New Zealand | 1.0 | |||
Singapore | 0.8 | |||
China | 0.5 | |||
Other Assets, Less Liabilities | 0.7 | |||
|
| |||
100.0 | % | |||
|
|
See Portfolio of Investments beginning on page 11 for specific holdings within these categories. The Fund’s holdings are subject to change.
Top Ten Holdings as of October 31, 2020 (excluding short-term investment) (Unaudited)
1. | American Electric Power Co., Inc. |
2. | Crown Castle International Corp. |
3. | American Tower Corp. |
4. | Enel S.p.A. |
5. | NextEra Energy, Inc. |
6. | Cellnex Telecom S.A. |
7. | Vinci S.A. |
8. | Ameren Corp. |
9. | National Grid PLC |
10. | Union Pacific Corp. |
8 | MainStay CBRE Global Infrastructure Fund |
Portfolio Management Discussion and Analysis (Unaudited)
Questions answered by portfolio managers T. Ritson Ferguson, CFA, Jeremy Anagnos, CFA, Daniel Foley, CFA, and Hinds Howard of CBRE Clarion Securities LLC, the Fund’s Subadvisor.
How did MainStay CBRE Global Infrastructure Fund perform relative to its benchmark and peer group during the six months ended October 31, 2020?
For the six months ended October 31, 2020, Class I shares of MainStay CBRE Global Infrastructure Fund returned 4.80%, outperforming the 3.38% return of the Fund’s primary benchmark, the FTSE Global Core Infrastructure 50/50 Index. Over the same period, Class I shares underperformed the 5.75% return of the Morningstar Infrastructure Category Average.1
What factors affected the Fund’s relative performance during the reporting period?
Relative to the FTSE Global Core Infrastructure 50/50 Index, the Fund benefited from both stock selection and sector allocation. The Fund’s thematic positioning toward communications stocks in the United States and Europe, and toward renewable-focused utilities both made positive contributions to relative performance. (Contributions take weightings and total returns into account.) A cautious outlook and position toward the midstream energy subsector further bolstered relative returns. We believe that our success in underwriting stable earnings outlooks for these stocks in volatile times, confirmed by earnings releases during the reporting period, along with discussions with management teams and interaction with private market infrastructure colleagues at CBRE provided the foundation for the Fund’s outperformance.
During the reporting period, which sectors and subsectors were the strongest positive contributors to the Fund’s relative performance and which sectors and subsectors were particularly weak?
Significantly underweight exposure to emerging-markets equities—at a time when such stocks returned negative performance—provided the largest positive contribution to the Fund’s relative outperformance. Overweight exposure to the communication services sector further enhanced relative performance, primarily due to gains in European communications stocks. Communications companies benefited from expectations that demand will continue to increase as the COVID-19 pandemic requires additional remote working and investment in network connectivity and data growth. The Fund’s underweight exposure to U.S.-based utilities and to North American rail stocks, both of which performed well during the reporting period, were the most significant detractors from 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 largest positive contributors to absolute performance included holdings in Spanish tower operator Cellnex Telecom,
U.S. utility NextEra Energy and Italian utility Enel. Cellnex Telecom continued to grow by acquiring tower assets in Europe and benefited from secular growth in data usage. NextEra Energy and Enel are two of the leading global developers of renewable assets. Both benefited from the increasing global focus on decarbonization and from their scale in that area.
The most significant detractor from absolute performance during the reporting period was the Fund’s position in Ohio-based utility operator FirstEnergy. The stock underperformed on news of a federal investigation into lobbying activities related to state legislation benefiting nuclear power plants that the company formerly owned. The Fund retained a reduced position in FirstEnergy, reflecting our assessment of the stock’s value in the event of a punitive outcome, and continued monitoring the ongoing investigation. Another significant detractor from absolute performance was the Fund’s position in U.S. natural gas pipeline and midstream operator Kinder Morgan. The stock declined after the company reduced earnings guidance due to an uncertain outlook for the return of demand across its refined products pipeline system. The Fund retained a position in Kinder Morgan in light of the company’s large natural gas pipeline footprint, which we believe is likely to continue providing stable cash flow in an otherwise volatile subsector. We also believe that Kinder Morgan management has executed well, reducing the company’s leverage and positioning it well for a cyclical rebound in energy demand.
What were some of the Fund’s largest purchases and sales during the reporting period?
During the reporting period, the Fund’s largest purchases included new positions in utility operators Alliant Energy and Public Service Enterprise Group, and in natural gas pipeline operator TC Energy. In our view, discounted regulated utility Alliant Energy presents growing opportunities to invest in renewables. New Jersey-based utility Public Service Enterprise Group operates power generation assets. We believe the stock is heavily discounted by the market, with strong decarbonization-led rate base growth, and opportunities to recognize value through the disposal of power assets, as part of an ongoing strategic review process. Canadian natural gas pipeline operator TC Energy has highly contracted and regulated cash flow that enabled it to maintain 2020 guidance during a particularly volatile time for midstream assets. We believe TC Energy is well managed and trades at a discount, due to its association with the broader midstream sector.
The Fund’s largest sales during the reporting period included its entire position in large midstream operator Enbridge and California-based utility Edison International. We expect Enbridge to face ongoing regulatory scrutiny related to a large pipeline
1. | See page 5 for other share class returns, which may be higher or lower than Class I share returns. See page 6 for more information on benchmark and peer group returns. |
9 |
development the company is pursuing. Edison International is exposed to the continued threat of wildfires and unknown outcomes regarding related future costs.
How did the Fund’s sector and subsector weightings change during the reporting period?
The Fund’s most notable change in subsector exposure during the reporting period was an increase in North American rail exposure. In our view, rail stocks have very strong balance sheets and flexible operating models that have proved resilient in the face of virus-driven economic uncertainty. Furthermore, the subsector trades at a discount to historical valuations compared with the broader equity market. The Fund also increased its utility exposure in the United States and Europe as utility valuations in those regions grew increasingly attractive relative to their stable outlooks and renewable development opportunities.
We trimmed the Fund’s overweight communication services exposure after strong performance elevated the subsector’s valuations; however, we continued to maintain an overweight position in light of our positive outlook for communications stocks. We reduced the Fund’s Asian utility exposure during the reporting period in favor of increased exposure to U.S. and
European utilities, which our analysis found more attractive. We also reduced the Fund’s transportation subsector exposure, particularly among toll roads in Europe, Australia and Mexico.
How was the Fund positioned at the end of the reporting period?
As of October 31, 2020, the Fund held overweight exposure to the communication services and utilities subsectors, both of which we believe are well positioned to continue benefiting from stable earnings, driven by secular themes facing minimal impact from the COVID-19 demand declines affecting other subsectors. Communication services infrastructure provides the necessary assets to support secular data growth. The utilities sector is investing significant amounts to facilitate the world’s transition to cleaner energy and decarbonization through renewable generation. The Fund’s key overweight positions within communication services and utilities include Cellnex Telecom and Enel.
As of the same date, the Fund held relatively underweight exposure to airports and passenger transportation-related stocks. Within these subsectors, the Fund’s most significant underweight positions include Australian toll road operator Transurban Group and Canadian midstream operator Enbridge.
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 CBRE Global Infrastructure Fund |
Portfolio of Investments October 31, 2020 (Unaudited)
Shares | Value | |||||||
Common Stocks 98.0%† |
| |||||||
Australia 3.5% |
| |||||||
APA Group (Utilities) | 246,742 | $ | 1,819,333 | |||||
Atlas Arteria, Ltd. (Transportation) | 1,788,755 | 7,091,264 | ||||||
|
| |||||||
8,910,597 | ||||||||
|
| |||||||
Canada 4.4% |
| |||||||
Fortis, Inc. (Utilities) | 115,100 | 4,546,809 | ||||||
Pembina Pipeline Corp. (Midstream / Pipelines) | 95,200 | 1,992,891 | ||||||
TC Energy Corp. (Midstream / Pipelines) | 117,800 | 4,636,667 | ||||||
|
| |||||||
11,176,367 | ||||||||
|
| |||||||
China 0.5% |
| |||||||
China Resources Gas Group, Ltd. (Utilities) | 284,000 | 1,230,880 | ||||||
|
| |||||||
France 5.4% |
| |||||||
Engie S.A. (Utilities) (a) | 335,304 | 4,055,465 | ||||||
Vinci S.A. (Transportation) | 121,748 | 9,616,457 | ||||||
|
| |||||||
13,671,922 | ||||||||
|
| |||||||
Germany 1.1% |
| |||||||
Fraport A.G. Frankfurt Airport Services Worldwide (Transportation)(a) | 76,935 | 2,779,465 | ||||||
|
| |||||||
Hong Kong 1.2% |
| |||||||
CK Infrastructure Holdings, Ltd. (Utilities) | 620,897 | 2,923,282 | ||||||
|
| |||||||
Italy 8.0% |
| |||||||
Atlantia S.p.A. (Transportation) (a) | 240,538 | 3,685,276 | ||||||
Enel S.p.A. (Utilities) | 1,302,538 | 10,367,185 | ||||||
Infrastrutture Wireless Italiane S.p.A (Communications) | 215,669 | 2,330,940 | ||||||
Terna Rete Elettrica Nazionale S.p.A. (Utilities) | 586,651 | 3,965,543 | ||||||
|
| |||||||
20,348,944 | ||||||||
|
| |||||||
Japan 1.4% |
| |||||||
Chubu Electric Power Co., Inc. (Utilities) | 322,234 | 3,605,684 | ||||||
|
| |||||||
Mexico 1.7% |
| |||||||
Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (Transportation)(a) | 282,600 | 1,276,340 | ||||||
Promotora Y Operadora de Infraestructura S.A.B. de C.V. (Transportation) | 457,795 | 3,020,456 | ||||||
|
| |||||||
4,296,796 | ||||||||
|
| |||||||
New Zealand 1.0% |
| |||||||
Infratil, Ltd. (Diversified Property Holdings) | 733,435 | 2,628,413 | ||||||
|
| |||||||
Portugal 2.6% |
| |||||||
EDP—Energias de Portugal S.A. (Utilities) | 1,307,967 | 6,446,707 | ||||||
|
| |||||||
Singapore 0.8% |
| |||||||
NetLink NBN Trust (Communications) | 2,982,073 | 2,095,824 | ||||||
|
|
Shares | Value | |||||||
Spain 5.7% |
| |||||||
Cellnex Telecom S.A. (Communications) | 153,560 | $ | 9,857,863 | |||||
Iberdrola S.A. (Utilities) | 202,294 | 2,385,467 | ||||||
Red Electrica Corp. S.A. (Utilities) | 122,049 | 2,149,934 | ||||||
|
| |||||||
14,393,264 | ||||||||
|
| |||||||
United Kingdom 6.0% |
| |||||||
National Grid PLC (Utilities) | 724,120 | 8,621,113 | ||||||
United Utilities Group PLC (Utilities) | 574,644 | 6,427,590 | ||||||
|
| |||||||
15,048,703 | ||||||||
|
| |||||||
United States 54.7% |
| |||||||
AES Corp. (Utilities) | 281,700 | 5,493,150 | ||||||
Alliant Energy Corp. (Utilities) | 129,800 | 7,175,344 | ||||||
Ameren Corp. (Utilities) | 108,700 | 8,817,744 | ||||||
American Electric Power Co., Inc. (Utilities) | 124,900 | 11,232,257 | ||||||
American Tower Corp. (Communications) | 46,530 | 10,685,615 | ||||||
Atmos Energy Corp. (Utilities) | 21,700 | 1,989,239 | ||||||
Cheniere Energy, Inc. (Midstream / Pipelines) (a) | 125,937 | 6,028,604 | ||||||
CMS Energy Corp. (Utilities) | 79,910 | 5,060,700 | ||||||
Crown Castle International Corp. (Communications) | 69,897 | 10,917,911 | ||||||
Equinix, Inc. (Communications) | 7,049 | 5,154,511 | ||||||
Essential Utilities, Inc. (Utilities) | 184,350 | 7,595,220 | ||||||
Exelon Corp. (Utilities) | 148,107 | 5,907,988 | ||||||
FirstEnergy Corp. (Utilities) | 186,000 | 5,527,920 | ||||||
Kansas City Southern (Transportation) | 26,100 | 4,597,254 | ||||||
Kinder Morgan, Inc. (Midstream / Pipelines) | 340,300 | 4,049,570 | ||||||
Legacy Reserves, Inc. (Midstream / Pipelines) (a)(b)(c) | 32,997 | 92,062 | ||||||
NextEra Energy, Inc. (Utilities) | 141,480 | 10,357,751 | ||||||
NiSource, Inc. (Utilities) | 186,300 | 4,279,311 | ||||||
Norfolk Southern Corp. (Transportation) | 31,800 | 6,650,016 | ||||||
Public Service Enterprise Group, Inc. (Utilities) | 97,600 | 5,675,440 | ||||||
Sempra Energy (Utilities) | 27,900 | 3,497,544 | ||||||
Union Pacific Corp. (Transportation) | 44,600 | 7,902,674 | ||||||
|
| |||||||
138,687,825 | ||||||||
|
| |||||||
Total Common Stocks | 248,244,673 | |||||||
|
| |||||||
Short-Term Investment 1.3% |
| |||||||
Affiliated Investment Company 1.3% |
| |||||||
United States 1.3% |
| |||||||
MainStay U.S. Government Liquidity Fund, 0.02% (d) | 3,274,106 | 3,274,106 | ||||||
|
| |||||||
Total Short-Term Investment | 3,274,106 | |||||||
|
| |||||||
Total Investments | 99.3 | % | 251,518,779 | |||||
Other Assets, Less Liabilities | 0.7 | 1,882,438 | ||||||
Net Assets | 100.0 | % | $ | 253,401,217 |
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, 2020 (Unaudited) (continued)
† | Percentages indicated are based on Fund net assets. |
(a) | Non-income producing security. |
(b) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(c) | Illiquid security—As of October 31, 2020, the total market value of these securities deemed illiquid under procedures approved by the Board of Trustees was $92,062, which represented less than one-tenth of a percent of the Fund’s net assets. |
(d) | Current yield as of October 31, 2020. |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2020, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Asset Valuation Inputs | ||||||||||||||||
Investments in Securities (a) | ||||||||||||||||
Common Stocks (b) | $ | 248,152,611 | $ | — | $ | 92,062 | $ | 248,244,673 | ||||||||
Short-Term Investment | ||||||||||||||||
Affiliated Investment Company | 3,274,106 | — | — | 3,274,106 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 251,426,717 | $ | — | $ | 92,062 | $ | 251,518,779 | ||||||||
|
|
|
|
|
|
|
|
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
(b) | The Level 3 security valued at $92,062 is held in Oil, Gas & Consumable Fuels within the Common Stocks section of the Portfolio of Investments. |
The table below sets forth the diversification of the Fund’s investments by sector.
Sector Diversification
Value | Percent † | |||||||
Diversified Property Holdings | $ | 2,628,413 | 1.0 | % | ||||
Communications | 41,042,664 | 16.2 | ||||||
Utilities | 141,154,600 | 55.8 | ||||||
Midstream / Pipelines | 16,799,794 | 6.6 | ||||||
Transportation | 46,619,202 | 18.4 | ||||||
|
|
|
| |||||
248,244,673 | 98.0 | |||||||
Short-Term Investment | 3,274,106 | 1.3 | ||||||
Other Assets, Less Liabilities | 1,882,438 | 0.7 | ||||||
|
|
|
| |||||
Net Assets | $ | 253,401,217 | 100.0 | % | ||||
|
|
|
|
† | Percentages indicated are based on Fund net assets. |
12 | MainStay CBRE Global Infrastructure 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, 2020 (Unaudited)
Assets | ||||
Investment in unaffiliated securities, at value | $ | 248,244,673 | ||
Investment in affiliated investment company, at value (identified cost $3,274,106) | 3,274,106 | |||
Cash denominated in foreign currencies | 59,223 | |||
Receivables: | ||||
Fund shares sold | 3,343,224 | |||
Investment securities sold | 879,647 | |||
Dividends | 431,241 | |||
Other assets | 117,814 | |||
|
| |||
Total assets | 256,349,928 | |||
|
| |||
Liabilities | ||||
Payables: | ||||
Investment securities purchased | 2,524,315 | |||
Fund shares redeemed | 153,441 | |||
Manager (See Note 3) | 139,730 | |||
Transfer agent (See Note 3) | 87,148 | |||
NYLIFE Distributors (See Note 3) | 12,539 | |||
Professional fees | 11,134 | |||
Trustees | 2,230 | |||
Accrued expenses | 18,174 | |||
|
| |||
Total liabilities | 2,948,711 | |||
|
| |||
Net assets | $ | 253,401,217 | ||
|
| |||
Composition of Net Assets | ||||
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ | 23,509 | ||
Additional paid-in capital | 257,271,785 | |||
|
| |||
257,295,294 | ||||
Total distributable earnings (loss) | (3,894,077 | ) | ||
|
| |||
Net assets | $ | 253,401,217 | ||
|
|
Class A | ||||
Net assets applicable to outstanding shares | $ | 28,115,183 | ||
|
| |||
Shares of beneficial interest outstanding | 2,609,103 | |||
|
| |||
Net asset value per share outstanding | $ | 10.78 | ||
Maximum sales charge (5.50% of offering price) | 0.63 | |||
|
| |||
Maximum offering price per share outstanding | $ | 11.41 | ||
|
| |||
Investor Class | ||||
Net assets applicable to outstanding shares | $ | 1,850,104 | ||
|
| |||
Shares of beneficial interest outstanding | 171,929 | |||
|
| |||
Net asset value per share outstanding | $ | 10.76 | ||
Maximum sales charge (5.00% of offering price) | 0.57 | |||
|
| |||
Maximum offering price per share outstanding | $ | 11.33 | ||
|
| |||
Class C | ||||
Net assets applicable to outstanding shares | $ | 6,865,149 | ||
|
| |||
Shares of beneficial interest outstanding | 640,011 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.73 | ||
|
| |||
Class I | ||||
Net assets applicable to outstanding shares | $ | 216,362,320 | ||
|
| |||
Shares of beneficial interest outstanding | 20,068,209 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.78 | ||
|
| |||
Class R6 | ||||
Net assets applicable to outstanding shares | $ | 208,461 | ||
|
| |||
Shares of beneficial interest outstanding | 19,339 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.78 | ||
|
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 13 |
Statement of Operations for the six months ended October 31, 2020 (Unaudited)
Investment Income (Loss) | ||||
Income | ||||
Dividends-unaffiliated (a) | $ | 3,943,588 | ||
Securities lending | 30,231 | |||
Dividends-affiliated | 484 | |||
|
| |||
Total income | 3,974,303 | |||
|
| |||
Expenses | ||||
Manager (See Note 3) | 1,053,947 | |||
Transfer agent (See Note 3) | 129,582 | |||
Registration | 77,442 | |||
Distribution/Service—Class A (See Note 3) | 32,519 | |||
Distribution/Service—Investor Class (See Note 3) | 2,221 | |||
Distribution/Service—Class C (See Note 3) | 31,595 | |||
Professional fees | 48,275 | |||
Shareholder communication | 39,636 | |||
Custodian | 29,372 | |||
Trustees | 2,355 | |||
Miscellaneous | 6,425 | |||
|
| |||
Total expenses before waiver/reimbursement | 1,453,369 | |||
Expense waiver/reimbursement from Manager (See Note 3) | (173,937 | ) | ||
|
| |||
Net expenses | 1,279,432 | |||
|
| |||
Net investment income (loss) | 2,694,871 | |||
|
| |||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) on: | ||||
Unaffiliated investment transactions | (775,878 | ) | ||
Foreign currency transactions | 31,625 | |||
|
| |||
Net realized gain (loss) | (744,253 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Unaffiliated investments | 10,206,667 | |||
Translation of other assets and liabilities in foreign currencies | 10,176 | |||
|
| |||
Net change in unrealized appreciation (depreciation) | 10,216,843 | |||
|
| |||
Net realized and unrealized gain (loss) | 9,472,590 | |||
|
| |||
Net increase (decrease) in net assets resulting from operations | $ | 12,167,461 | ||
|
|
(a) | Dividends recorded net of foreign withholding taxes in the amount of $231,225. |
14 | MainStay CBRE Global Infrastructure Fund | The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. |
Statements of Changes in Net Assets
for the six months ended October 31, 2020 (Unaudited), the period November 1, 2019 through April 30, 2020 (a) and the year ended October 31, 2019
2020 | 2020 (a) | 2019 | ||||||||||
Increase (Decrease) in Net Assets |
| |||||||||||
Operations: | ||||||||||||
Net investment income (loss) | $ | 2,694,871 | $ | 1,997,640 | $ | 2,833,074 | ||||||
Net realized gain (loss) | (744,253 | ) | (12,458,756 | ) | 5,836,501 | |||||||
Net change in unrealized appreciation (depreciation) | 10,216,843 | (18,493,973 | ) | 21,235,465 | ||||||||
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | 12,167,461 | (28,955,089 | ) | 29,905,040 | ||||||||
|
| |||||||||||
Distributions to shareholders: | ||||||||||||
Class A | (226,863 | ) | (365,628 | ) | (169,569 | ) | ||||||
Investor Class | (15,698 | ) | (123 | ) | — | |||||||
Class C | (51,162 | ) | (29,836 | ) | (3,391 | ) | ||||||
Class I | (2,039,471 | ) | (7,127,573 | ) | (3,968,511 | ) | ||||||
Class W | — | (282,475 | ) | (68,056 | ) | |||||||
Class R6 | (455 | ) | (55 | ) | — | |||||||
|
| |||||||||||
(2,333,649 | ) | (7,805,690 | ) | (4,209,527 | ) | |||||||
|
| |||||||||||
Distributions to shareholders from return of capital: | ||||||||||||
Class A | — | (19,173 | ) | — | ||||||||
Investor Class | — | (33 | ) | — | ||||||||
Class C | — | (739 | ) | — | ||||||||
Class I | — | (427,284 | ) | — | ||||||||
Class W | — | (10,235 | ) | — | ||||||||
Class R6 | — | (15 | ) | — | ||||||||
|
| |||||||||||
— | (457,479 | ) | — | |||||||||
|
| |||||||||||
Total distributions to shareholders | (2,333,649 | ) | (8,263,169 | ) | (4,209,527 | ) | ||||||
|
| |||||||||||
Capital share transactions: | ||||||||||||
Net proceeds from sale of shares | 59,810,972 | 75,154,395 | 178,838,093 | |||||||||
Net asset value of shares issued in connection with the acquisition of MainStay Cushing Energy Income Fund | 13,886,106 | — | — | |||||||||
Net asset value of shares issued in connection with the acquisition of MainStay Cushing Renaissance Advantage Fund | 13,689,513 | — | — | |||||||||
Net asset value of shares issued to shareholders in reinvestment of distributions | 2,279,411 | 8,254,361 | 4,202,175 | |||||||||
Cost of shares redeemed | (66,745,654 | ) | (73,000,657 | ) | (34,984,660 | ) | ||||||
|
| |||||||||||
Increase (decrease) in net assets derived from capital share transactions | 22,920,348 | 10,408,099 | 148,055,608 | |||||||||
|
| |||||||||||
Net increase (decrease) in net assets | 32,754,160 | (26,810,159 | ) | 173,751,121 |
2020 | 2020 (a) | 2019 | ||||||||||
Net Assets | ||||||||||||
Beginning of period | $ | 220,647,057 | $ | 247,457,216 | $ | 73,706,095 | ||||||
|
| |||||||||||
End of period | $ | 253,401,217 | $ | 220,647,057 | $ | 247,457,216 | ||||||
|
|
(a) | The Fund changed its fiscal year end from October 31 to April 30. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 15 |
Financial Highlights selected per share data and ratios
Six months 2020* | November 1, 2019 through April 30, 2020# | Year ended October 31, | ||||||||||||||||||||||||||
Class A | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.39 | $ | 11.99 | $ | 10.04 | $ | 11.40 | $ | 10.78 | $ | 10.68 | $ | 12.72 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 0.10 | (a) | 0.07 | (a) | 0.16 | 0.19 | 0.17 | (a) | 0.15 | (a) | 0.16 | (a) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.38 | (1.29 | ) | 2.12 | (0.51 | ) | 1.30 | 0.66 | (0.59 | ) | ||||||||||||||||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.01 | ) | — | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | 0.48 | (1.23 | ) | 2.28 | (0.32 | ) | 1.47 | 0.81 | (0.43 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.09 | ) | (0.06 | ) | (0.17 | ) | (0.25 | ) | (0.12 | ) | (0.20 | ) | (0.13 | ) | ||||||||||||||
From net realized gain on investments | — | (0.29 | ) | (0.16 | ) | (0.79 | ) | (0.73 | ) | (0.51 | ) | (1.49 | ) | |||||||||||||||
Return of capital | — | (0.02 | ) | — | — | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total distributions | (0.09 | ) | (0.37 | ) | (0.33 | ) | (1.04 | ) | (0.85 | ) | (0.71 | ) | (1.62 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Redemption fee | — | — | — | — | — | — | 0.01 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value at end of period | $ | 10.78 | $ | 10.39 | $ | 11.99 | $ | 10.04 | $ | 11.40 | $ | 10.78 | $ | 10.68 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total investment return (b) | 4.67 | % | (10.57 | %) | 23.24 | % | (3.16 | %) | 14.96 | % | 8.21 | % | (3.45 | %) | ||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 1.75 | %†† | 1.32 | % †† | 1.51 | % | 1.89 | % | 1.59 | % | 1.44 | % | 1.37 | % | ||||||||||||||
Net expenses | 1.26 | %††(c) | 1.32 | % ††(c)(d) | 1.35 | % | 1.35 | % | 1.53 | % | 1.60 | % | 1.60 | % | ||||||||||||||
Expenses (before waiver/reimbursement) | 1.36 | %††(c) | 1.54 | % ††(c)(d) | 1.56 | % | 1.83 | % | 2.36 | % | 2.15 | % | 1.76 | % | ||||||||||||||
Portfolio turnover rate | 38 | % | 49 | % | 53 | % | 61 | % | 85 | % | 88 | % | 97 | % | ||||||||||||||
Net assets at end of period (in 000’s) | $ | 28,115 | $ | 11,237 | $ | 11,700 | $ | 1,787 | $ | 1,146 | $ | 526 | $ | 178 |
* | Unaudited. |
# | The Fund changed its fiscal year end from October 31 to April 30. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | Net of interest expense of less than 0.01%. (See Note 6) |
16 | MainStay CBRE Global Infrastructure Fund | The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. |
Financial Highlights selected per share data and ratios
Investor Class | Six months ended October 31, 2020* | February 24, 2020^ through April 30, 2020 | ||||||
Net asset value at beginning of period | $ | 10.38 | $ | 12.50 | ||||
|
|
|
| |||||
Net investment income (loss) (a) | 0.08 | (0.00 | )‡ | |||||
Net realized and unrealized gain (loss) on investments | 0.39 | (2.06 | ) | |||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.02 | ) | ||||
|
|
|
| |||||
Total from investment operations | 0.47 | (2.08 | ) | |||||
|
|
|
| |||||
Less distributions: | ||||||||
From net investment income | (0.09 | ) | (0.03 | ) | ||||
Return of capital | — | (0.01 | ) | |||||
|
|
|
| |||||
Total distributions | (0.09 | ) | (0.04 | ) | ||||
|
|
|
| |||||
Net asset value at end of period | $ | 10.76 | $ | 10.38 | ||||
|
|
|
| |||||
Total investment return (b) | 4.50 | % | (16.66 | %) | ||||
Ratios (to average net assets)/Supplemental Data: | ||||||||
Net investment income (loss) †† | 1.41 | % | (0.12 | %) | ||||
Net expenses (c)†† | 1.45 | % | 1.45 | % | ||||
Expenses (before waiver/reimbursement) (c)†† | 1.80 | % | 1.67 | % | ||||
Portfolio turnover rate | 38 | % | 49 | % | ||||
Net assets at end of period (in 000’s) | $ | 1,850 | $ | 106 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 17 |
Financial Highlights selected per share data and ratios
Class C | Six months ended October 31, 2020* | November 1, 2019 through April 30, 2020# | February 28, 2019^ through October 31, 2019 | |||||||||
Net asset value at beginning of period | $ | 10.37 | $ | 11.96 | $ | 10.82 | ||||||
|
|
|
|
|
| |||||||
Net investment income (loss) (a) | 0.05 | 0.03 | 0.04 | |||||||||
Net realized and unrealized gain (loss) on investments | 0.39 | (1.28 | ) | 1.22 | ||||||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.01 | ) | — | |||||||
|
|
|
|
|
| |||||||
Total from investment operations | 0.44 | (1.26 | ) | 1.26 | ||||||||
|
|
|
|
|
| |||||||
Less distributions: | ||||||||||||
From net investment income | (0.08 | ) | (0.03 | ) | (0.12 | ) | ||||||
From net realized gain on investments | — | (0.29 | ) | — | ||||||||
Return of capital | — | (0.01 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions | (0.08 | ) | (0.33 | ) | (0.12 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value at end of period | $ | 10.73 | $ | 10.37 | $ | 11.96 | ||||||
|
|
|
|
|
| |||||||
Total investment return (b) | 4.23 | % | (10.89 | %) | 11.67 | % | ||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||
Net investment income (loss) †† | 0.84 | % | 0.58 | % | 0.46 | % | ||||||
Net expenses †† | 2.08 | %(c) | 2.09 | % (c)(d) | 2.10 | % | ||||||
Expenses (before waiver/reimbursement) †† | 2.55 | %(c) | 2.36 | % (c)(d) | 2.31 | % | ||||||
Portfolio turnover rate | 38 | % | 49 | % | 53 | % | ||||||
Net assets at end of period (in 000’s) | $ | 6,865 | $ | 992 | $ | 1,048 |
* | Unaudited. |
# | The Fund changed its fiscal year end from October 31 to April 30. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | Net of interest expense of less than 0.01%. (See Note 6) |
18 | MainStay CBRE Global Infrastructure 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
Six months 2020* | November 1, 2019 through April 30, 2020# | Year ended October 31, | ||||||||||||||||||||||||||
Class I | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.39 | $ | 11.99 | $ | 10.04 | $ | 11.40 | $ | 10.78 | $ | 10.67 | $ | 12.72 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 0.13 | (a) | 0.09 | (a) | 0.20 | 0.23 | 0.20 | 0.21 | (a) | 0.19 | (a) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.37 | (1.29 | ) | 2.11 | (0.52 | ) | 1.30 | 0.64 | (0.57 | ) | ||||||||||||||||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.01 | ) | — | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | 0.50 | (1.21 | ) | 2.31 | (0.29 | ) | 1.50 | 0.85 | (0.38 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.11 | ) | (0.08 | ) | (0.20 | ) | (0.28 | ) | (0.15 | ) | (0.23 | ) | (0.18 | ) | ||||||||||||||
From net realized gain on investments | — | (0.29 | ) | (0.16 | ) | (0.79 | ) | (0.73 | ) | (0.51 | ) | (1.49 | ) | |||||||||||||||
Return of capital | — | (0.02 | ) | — | — | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
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|
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Total distributions | (0.11 | ) | (0.39 | ) | (0.36 | ) | (1.07 | ) | (0.88 | ) | (0.74 | ) | (1.67 | ) | ||||||||||||||
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Net asset value at end of period | $ | 10.78 | $ | 10.39 | $ | 11.99 | $ | 10.04 | $ | 11.40 | $ | 10.78 | $ | 10.67 | ||||||||||||||
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Total investment return (b) | 4.80 | % | (10.46 | %) | 23.52 | % | (2.88 | %) | 15.25 | % | 8.66 | % | (3.10 | %) | ||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 2.27 | %†† | 1.59 | % †† | 1.83 | % | 2.14 | % | 1.83 | % | 2.05 | % | 1.66 | % | ||||||||||||||
Net expenses | 0.97 | %††(c) | 1.05 | % ††(c)(d) | 1.10 | % | 1.10 | % | 1.21 | % | 1.25 | % | 1.25 | % | ||||||||||||||
Expenses (before waiver/reimbursement) | 1.10 | %††(c) | 1.18 | % ††(c)(d) | 1.14 | % | 1.41 | % | 1.61 | % | 1.60 | % | 1.43 | % | ||||||||||||||
Portfolio turnover rate | 38 | % | 49 | % | 53 | % | 61 | % | 85 | % | 88 | % | 97 | % | ||||||||||||||
Net assets at end of period (in 000’s) | $ | 216,362 | $ | 208,291 | $ | 225,176 | $ | 71,919 | $ | 36,755 | $ | 22,569 | $ | 40,069 |
* | Unaudited. |
# | The Fund changed its fiscal year end from October 31 to April 30. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | Net of interest expense of less than 0.01%. (See Note 6) |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 19 |
Financial Highlights selected per share data and ratios
Class R6 | Six months ended October 31, 2020* | February 24, 2020^ through April 30, 2020 | ||||||
Net asset value at beginning of period | $ | 10.39 | $ | 12.51 | ||||
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Net investment income (loss) (a) | 0.08 | 0.02 | ||||||
Net realized and unrealized gain (loss) on investments | 0.42 | (2.09 | ) | |||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.02 | ) | ||||
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Total from investment operations | 0.50 | (2.09 | ) | |||||
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Less distributions: | ||||||||
From net investment income | (0.11 | ) | (0.02 | ) | ||||
Return of capital | — | (0.01 | ) | |||||
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Total distributions | (0.11 | ) | (0.03 | ) | ||||
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Net asset value at end of period | $ | 10.78 | $ | 10.39 | ||||
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Total investment return (b) | 4.82 | % | (16.65 | %) | ||||
Ratios (to average net assets)/Supplemental Data: | ||||||||
Net investment income (loss) †† | 1.45 | % | 0.85 | % | ||||
Net expenses (c)†† | 0.95 | % | 0.95 | % | ||||
Expenses (before waiver/reimbursement) (c)†† | 1.05 | % | 1.13 | % | ||||
Portfolio turnover rate | 38 | % | 49 | % | ||||
Net assets at end of period (in 000’s) | $ | 208 | $ | 21 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. Class R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
20 | MainStay CBRE Global Infrastructure Fund | The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. |
Notes to Financial Statements (Unaudited)
Note 1–Organization and Business
MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of thirty-four funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay CBRE Global Infrastructure Fund (the “Fund”), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The Fund is successor to the Voya CBRE Global Infrastructure Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Voya Investments, LLC (“Voya”), an Arizona limited liability company served as investment adviser and CBRE Clarion Securities LLC (“CBRE Clarion” or the “Subadvisor”) served as subadvisor. The financial statements of the Fund reflect the historical results of corresponding shares of the Predecessor Fund through its reorganization on February 21, 2020. Upon completion of the reorganization, the Class A, Class C and Class I shares of the Fund assumed the performance, financial and other information of the corresponding shares of the Predecessor Fund. All information provided for prior to February 21, 2020, refers to the Predecessor Fund.
Effective at the close of business on May 22, 2020, the Fund acquired the assets and liabilities of MainStay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund (the “Reorganization”), which were separate series of the Trust. The Reorganization was approved by the Board of Trustees of the Trust (the “Board”) and shareholders pursuant to an Agreement and Plan of Reorganization (the “Reorganization Agreement”). See Note 10 for additional information.
The Fund currently has six classes of shares registered for sale. Class I shares commenced operations on June 28, 2013. Class A shares commenced operations on October 16, 2013. Class C shares commenced operations on February 28, 2019. Investor Class and Class R6 shares commenced operations on February 24, 2020. SIMPLE Class shares were registered for sale effective as of August 31, 2020. As of October 31, 2020, SIMPLE Class shares were not yet offered for sale.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are offered at NAV without a sales charge. SIMPLE Class shares are currently expected to be offered at NAV without a sales charge. In addition, depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter ten years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, speci-
fied share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A, Investor Class and SIMPLE Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund’s investment objective is to seek total return.
Effective at the close of business on February 21, 2020, the Fund changed its fiscal and tax year end from October 31 to April 30.
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 usually valued as of the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).
The Board adopted procedures establishing methodologies for the valuation of the Fund’s securities and other assets and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Trust (the “Valuation Committee”). The procedures state 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. To assess the appropriateness of security valuations, the Manager, the 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.
The Board authorized the Valuation Committee to appoint a Valuation Subcommittee (the “Subcommittee”) to establish the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under the procedures. The Subcommittee meets (in person, via electronic mail or via teleconference) on an as-needed basis. The Valuation Committee meets to ensure that actions taken by the Subcommittee were appropriate.
For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Subcommittee deals with such valuation and the Valuation Committee reviews and affirms, if appropriate, the reasonableness of the valuation based on such
21 |
Notes to Financial Statements (Unaudited) (continued)
methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. Any action taken by the Subcommittee with respect to the valuation of a portfolio security or other asset is submitted for review and ratification (if appropriate) to the Valuation Committee and the Board at the next regularly scheduled meeting.
“Fair value” is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of October 31, 2020, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities | |
• Two-sided markets | • Reference data (corporate actions or material event notices) | |
• Bids/offers | • Monthly payment information | |
• Industry and economic events | • Reported trades |
An asset or liability for which 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. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Fund’s valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Fund’s valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security’s sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended October 31, 2020, 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 delisted 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 the 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 valued in this manner are generally categorized as Level 3 in the hierarchy. As of October 31, 2020, securities that were fair valued in such manner are shown in the Portfolio of Investments.
Certain securities held by the Fund may principally trade in foreign markets. Events may occur between the time the foreign markets close and the time at which the Fund’s NAVs are calculated. These events may include, but are not limited to, situations relating to a single issuer in a market sector, significant fluctuations in U.S. or foreign markets, natural disasters, armed conflicts, governmental actions or other developments not tied directly to the securities markets. Should the Manager or the Subadvisor conclude that such events may have affected the accuracy of the last price of such securities reported on the local foreign market, the Subcommittee 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
22 | MainStay CBRE Global Infrastructure Fund |
the hierarchy. No foreign equity securities held by the Fund as of October 31, 2020 were valued in such a manner.
Equity securities are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
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. Temporary cash investments that mature in 60 days or less at the time of purchase (“Short-Term Investments”) are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between such cost and the value on maturity date. Amortized cost approximates the current fair value of a security. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The valuation procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years) and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income tax and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.
(C) Foreign Taxes. The Fund may be subject to foreign taxes on income and other transaction-based taxes imposed by certain countries in which it invests. A portion of the taxes on gains on investments or currency purchases/repatriation may be reclaimable. The Fund will accrue such taxes and reclaims as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
The Fund may be subject to taxation on realized capital gains, repatriation proceeds and other transaction-based taxes imposed by certain countries in which it invests. The Fund will accrue such taxes as applicable based upon its current interpretation of tax rules and regulations that exist in the market in which it invests. Capital gains taxes relating to positions still held are reflected as a liability in the Statement of Assets and Liabilities, as well as an adjustment to the Fund’s net unrealized appreciation (depreciation). Taxes related to capital gains realized, if any, are reflected as part of net realized gain (loss) in the Statement of Operations. Changes in tax liabilities related to capital gains taxes on unrealized investment gains, if any, are reflected as part of the change in net unrealized appreciation (depreciation) on investments in the Statement of Operations. Transaction-based charges are generally assessed as a percentage of the transaction amount.
(D) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income, if any, at least quarterly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using GAAP.
(E) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital.
The Fund may invest up to 25% of its net assets in master limited partnerships (“MLPs”). Distributions on a MLP are generally recorded based on the characterization reported on the Fund’s Form 1065, Schedule K-1, received from the MLP. The Fund records its pro rata share of the income and deductions, and capital gains and losses allocated from each MLP on the Statement of Operations, as well as adjusting the cost basis of each MLP accordingly, as reported on the Portfolio of Investments.
Distributions received from investments in energy related U.S. and Canadian royalty trusts and exploration and production companies (collectively, “Energy Trusts”) and MLPs generally are comprised of ordinary income, capital gains and return of capital from the Energy Trusts and MLPs. The Fund records its investment income on the ex-date of the distributions from Energy Trusts and MLPs. For financial statement purposes, the Fund uses return of capital and income estimates to allocate the distributions received. Such estimates are based
23 |
Notes to Financial Statements (Unaudited) (continued)
on historical information available from each Energy Trust, MLP and other industry sources.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
(F) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and/or the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(G) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) Repurchase Agreements. The Fund may enter into repurchase agreements (i.e., buy a security from another party with the agreement that it will be sold back in the future) to earn income. The Fund may enter into repurchase agreements only with counterparties, usually financial institutions, that are deemed by the Manager or the Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or the Subadvisor will continue to monitor the creditworthiness of the counterparty. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the counterparty secured by the securities transferred to the Fund.
Repurchase agreements are subject to counterparty risk, meaning the Fund could lose money by the counterparty’s failure to perform under the terms of the agreement. The Fund mitigates this risk by ensuring the repurchase agreement is collateralized by cash, U.S. government securities, fixed income securities and/or other securities. The collateral is held by the Fund’s custodian and 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 counterparty’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, realization and/or retention of the collateral may be limited or subject to delay, to legal proceedings and possible realized loss to the Fund. As of October 31, 2020, the Fund did not hold any repurchase agreements.
(I) Foreign Currency Transactions. The Fund’s books and records are maintained in U.S. dollars. Prices of securities denominated
in foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling rates last quoted by any major U.S. bank at the following dates:
(i) | market value of investment securities, other assets and liabilities—at the valuation date; and |
(ii) | purchases and sales of investment securities, income and expenses—at the date of such transactions. |
The assets and liabilities that are denominated in foreign currency amounts are presented at the exchange rates and market values at the close of the period. The realized and unrealized changes in net assets arising from fluctuations in exchange rates and market prices of securities are not separately presented.
Net realized gain (loss) on foreign currency transactions represents net currency gains or losses realized as a result of differences between the amounts of securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the Fund’s books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or losses from valuing such foreign currency denominated assets and liabilities, other than investments at valuation date exchange rates, are reflected in unrealized foreign exchange gains or losses.
(J) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, currently State Street Bank and Trust Company (“State Street”), acting as securities lending agent on behalf of the Fund. Under the current arrangement, State Street will manage the Fund’s collateral in accordance with the securities lending agency agreement between the Fund and State Street, and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund. Income earned from securities lending activities, if any, is reflected in the Statement of Operations. As of October 31, 2020, the Fund did not have any portfolio securities on loan.
(K) Foreign Securities Risk. The Fund invests in foreign securities, which carry certain risks that are in addition to the usual risks inherent in domestic securities. 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
24 | MainStay CBRE Global Infrastructure Fund |
emerging markets than in developed markets. The ability of issuers of securities held by the Fund to meet their obligations may be affected by, among other things, economic or political developments in a specific country, industry or region.
(L) MLP Risk. MLPs carry many of the risks inherent in investing in a partnership. State law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded investors in a MLP. Limited partners may also have more limited control and limited rights to vote on matters affecting the MLP.
(M) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that may provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Manager believes that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.
Note 3–Fees and Related Party Transactions
(A) Manager and Subadvisor. New York Life Investments, a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to an Amended and Restated Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. CBRE Clarion 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 CBRE Clarion, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.85% of the Fund’s average daily net assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 1.33%; Investor Class, 1.45%; Class C, 2.08%; Class I, 0.97%; and Class R6, 0.95%. This agreement will remain in effect until February 28, 2022, and shall renew automatically for one-year terms
unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended October 31, 2020, New York Life Investments earned fees from the Fund in the amount of $1,053,947 and waived fees and/or reimbursed certain class specific expenses in the amount of $173,937 and paid the Subadvisor in the amount of $439,718.
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.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a distribution agreement with NYLIFE Distributors LLC (the “Distributor”), an affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly 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 C Plan, Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares, for a total 12b-1 fee of 1.00%. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended October 31, 2020, were $7,171 and $178, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class C shares during the six-month period ended October 31, 2020, of $390.
(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 DST Asset Manager Solutions, Inc.
25 |
Notes to Financial Statements (Unaudited) (continued)
(“DST”), pursuant to which DST performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until August 31, 2021, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended October 31, 2020, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived | ||||||
Class A | $ | 11,743 | $ | — | ||||
Investor Class | 4,750 | — | ||||||
Class C | 16,850 | — | ||||||
Class I | 96,237 | — | ||||||
Class R6 | 2 | — |
(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. As described in the Fund’s prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Investments in Affiliates (in 000’s). During the six-month period ended October 31, 2020, purchases and sales transactions, income earned from investments and shares held of investment companies managed by New York Life Investments or its affiliates were as follows:
Affiliated Investment Company | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period | |||||||||||||||||||||||||||
MainStay U.S. Government Liquidity Fund | $ | 376 | $ | 81,947 | $ | (79,049 | ) | $ | — | $ | — | $ | 3,274 | $ | 0 | (a) | $ | — | 3,274 |
(a) | Less than $500 |
(G) Capital. As of October 31, 2020, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Investor Class | $ | 21,767 | 1.2 | % | ||||
Class R6 | $ | 21,844 | 10.5 | % |
Note 4–Federal Income Tax
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Investments in Securities | $ | 247,836,899 | $ | 25,148,445 | $ | (21,466,565 | ) | $ | 3,681,880 |
As of April 30, 2020, for federal income tax purposes, capital loss carryforwards of $7,193,176, 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 have expired.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) | ||
Unlimited | $7,193 | $ — |
During the period ended April 30, 2020 and the years ended October 31, 2019 and October 31, 2018, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
2020 | 2019 | 2018 | ||||||||||
Distributions paid from: | ||||||||||||
Ordinary Income | $ | 3,660,947 | $ | 2,910,254 | $ | 2,447,295 | ||||||
Long-Term Capital Gain | 4,144,743 | 1,299,273 | 1,781,308 | |||||||||
Return of Capital | 457,479 | — | — | |||||||||
Total | $ | 8,263,169 | $ | 4,209,527 | $ | 4,228,603 |
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 transactions incurred by the Fund.
26 | MainStay CBRE Global Infrastructure Fund |
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.
Effective July 28, 2020, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JP Morgan Chase Bank NA, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate or the one-month London Interbank Offered Rate (“LIBOR”), whichever is higher. The Credit Agreement expires on July 27, 2021, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 28, 2020, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement, but State Street served as agent to the syndicate. During the six-month period ended October 31, 2020, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement or the credit agreement for which State Street served as agent.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another subject to the conditions of the exemptive order. During the six-month period ended October 31, 2020, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended October 31, 2020, purchases and sales of securities, other than short-term securities, were $93,209 and $96,246, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended October 31, 2020, the period ended April 30, 2020 and the year ended October 31, 2019, were as follows:
Class A | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 662,525 | $ | 7,248,073 | |||||
Shares issued in connection with the acquisition of MainStay Cushing Energy Income Fund | 601,016 | 6,193,827 | ||||||
Shares issued in connection with the acquisition of MainStay Cushing Renaissance Advantage Fund | 528,902 | 5,450,653 | ||||||
Shares issued to shareholders in reinvestment of distributions | 20,855 | 224,108 | ||||||
Shares redeemed | (303,723 | ) | (3,336,811 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 1,509,575 | 15,779,850 | ||||||
Shares converted into Class A (See Note 1) | 17,730 | 193,113 | ||||||
|
| |||||||
Net increase (decrease) | 1,527,305 | $ | 15,972,963 | |||||
|
| |||||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 280,921 | $ | 3,178,261 | |||||
Shares issued to shareholders in reinvestment of distributions | 33,172 | 384,614 | ||||||
Shares redeemed | (208,401 | ) | (2,229,848 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 105,692 | 1,333,027 | ||||||
Shares converted from Class A (See Note 1) | (80 | ) | (832 | ) | ||||
|
| |||||||
Net increase (decrease) | 105,612 | $ | 1,332,195 | |||||
|
| |||||||
Year ended October 31, 2019: | ||||||||
Shares sold | 868,313 | $ | 9,653,435 | |||||
Shares issued to shareholders in reinvestment of distributions | 15,513 | 169,519 | ||||||
Shares redeemed | (85,561 | ) | (957,531 | ) | ||||
|
| |||||||
Net increase (decrease) | 798,265 | $ | 8,865,423 | |||||
|
| |||||||
Investor Class | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 4,201 | $ | 45,453 | |||||
Shares issued in connection with the acquisition of MainStay Cushing Energy Income Fund | 91,365 | 940,483 | ||||||
Shares issued in connection with the acquisition of MainStay Cushing Renaissance Advantage Fund | 92,315 | 950,261 | ||||||
Shares issued to shareholders in reinvestment of distributions | 1,427 | 15,297 | ||||||
Shares redeemed | (17,974 | ) | (199,404 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 171,334 | 1,752,090 | ||||||
Shares converted into Investor Class (See Note 1) | 51 | 554 | ||||||
Shares converted from Investor Class (See Note 1) | (9,648 | ) | (105,486 | ) | ||||
|
| |||||||
Net increase (decrease) | 161,737 | $ | 1,647,158 | |||||
|
| |||||||
Period ended April 30, 2020 (b): | ||||||||
Shares sold | 10,096 | $ | 106,183 | |||||
Shares issued to shareholders in reinvestment of distributions | 16 | 156 | ||||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 10,112 | 106,339 | ||||||
Shares converted into Investor Class (See Note 1) | 80 | 832 | ||||||
|
| |||||||
Net increase (decrease) | 10,192 | $ | 107,171 | |||||
|
|
27 |
Notes to Financial Statements (Unaudited) (continued)
Class C | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 124,649 | $ | 1,370,095 | |||||
Shares issued in connection with the acquisition of MainStay Cushing Energy Income Fund | 307,263 | 3,159,121 | ||||||
Shares issued in connection with the acquisition of MainStay Cushing Renaissance Advantage Fund | 269,210 | 2,767,878 | ||||||
Shares issued to shareholders in reinvestment of distributions | 4,605 | 49,315 | ||||||
Shares redeemed | (153,232 | ) | (1,688,725 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 552,495 | 5,657,684 | ||||||
Shares converted from Class C (See Note 1) | (8,173 | ) | (88,181 | ) | ||||
|
| |||||||
Net increase (decrease) | 544,322 | $ | 5,569,503 | |||||
|
| |||||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 11,275 | $ | 131,035 | |||||
Shares issued to shareholders in reinvestment of distributions | 2,613 | 30,575 | ||||||
Shares redeemed | (5,862 | ) | (66,601 | ) | ||||
|
| |||||||
Net increase (decrease) | 8,026 | $ | 95,009 | |||||
|
| |||||||
Period ended October 31, 2019 (c): | ||||||||
Shares sold | 89,275 | $ | 1,031,473 | |||||
Shares issued to shareholders in reinvestment of distributions | 289 | 3,391 | ||||||
Shares redeemed | (1,901 | ) | (21,916 | ) | ||||
|
| |||||||
Net increase (decrease) | 87,663 | $ | 1,012,948 | |||||
|
| |||||||
Class I | Shares | Amount | ||||||
Six-month period ended October 31, 2020 : | ||||||||
Shares sold | 4,622,059 | $ | 50,944,539 | |||||
Shares issued in connection with the acquisition of MainStay Cushing Energy Income Fund | 348,425 | 3,592,675 | ||||||
Shares issued in connection with the acquisition of MainStay Cushing Renaissance Advantage Fund | 438,428 | 4,520,721 | ||||||
Shares issued to shareholders in reinvestment of distributions | 185,133 | 1,990,236 | ||||||
Shares redeemed | (5,571,187 | ) | (61,511,795 | ) | ||||
|
| |||||||
Net increase (decrease) | 22,858 | $ | (463,624 | ) | ||||
|
| |||||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 6,223,447 | $ | 69,833,031 | |||||
Shares issued to shareholders in reinvestment of distributions | 653,378 | 7,546,236 | ||||||
Shares redeemed | (6,544,949 | ) | (70,138,992 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 331,876 | 7,240,275 | ||||||
Shares converted into Class I (See Note 1) (d) | 930,648 | 11,641,536 | ||||||
|
| |||||||
Net increase (decrease) | 1,262,524 | $ | 18,881,811 | |||||
|
| |||||||
Year ended October 31, 2019: | ||||||||
Shares sold | 14,200,545 | $ | 158,999,775 | |||||
Shares issued to shareholders in reinvestment of distributions | 362,521 | 3,961,209 | ||||||
Shares redeemed | (2,941,969 | ) | (33,873,492 | ) | ||||
|
| |||||||
Net increase (decrease) | 11,621,097 | $ | 129,087,492 | |||||
|
| |||||||
Class W | Shares | Amount | ||||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 157,430 | $ | 1,880,885 | |||||
Shares issued to shareholders in reinvestment of distributions | 24,765 | 292,710 | ||||||
Shares redeemed | (47,136 | ) | (565,216 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 135,059 | 1,608,379 | ||||||
Shares converted from Class W (See Note 1) (d) | (930,098 | ) | (11,641,536 | ) | ||||
|
| |||||||
Net increase (decrease) | (795,039 | ) | $ | (10,033,157 | ) | |||
|
| |||||||
Period ended October 31, 2019 (c): | ||||||||
Shares sold | 800,304 | $ | 9,153,410 | |||||
Shares issued to shareholders in reinvestment of distributions | 5,805 | 68,056 | ||||||
Shares redeemed | (11,070 | ) | (131,721 | ) | ||||
|
| |||||||
Net increase (decrease) | 795,039 | $ | 9,089,745 | |||||
|
| |||||||
Class R6 | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 18,087 | $ | 202,812 | |||||
Shares issued to shareholders in reinvestment of distributions | 42 | 455 | ||||||
Shares redeemed | (796 | ) | (8,919 | ) | ||||
|
| |||||||
Net increase (decrease) | 17,333 | $ | 194,348 | |||||
|
| |||||||
Period ended April 30, 2020 (b): | ||||||||
Shares sold | 1,999 | $ | 25,000 | |||||
Shares issued to shareholders in reinvestment of distributions | 7 | 70 | ||||||
|
| |||||||
Net increase (decrease) | 2,006 | $ | 25,070 | |||||
|
|
(a) | The Fund changed its fiscal year end from October 31 to April 30. |
(b) | The inception date of the class was February 24, 2020. |
(c) | The inception date of the class was February 28, 2019. |
(d) | Class W converted to Class I on February 21, 2020. |
Note 10–Fund Acquisition
At special meetings held on May 15, 2020, the shareholders of Main-Stay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund each approved the acquisition of the assets and assumption of liabilities of the MainStay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund, respectively, in exchange for shares of the Fund, followed by the complete liquidation of the MainStay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund (the “Reorganizations”). The Reorganizations were completed on May 22, 2020. The shareholders of MainStay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund received the same class of shares of the Fund in a tax-free transaction. The shares were issued at NAV on May 22, 2020.
New York Life Investments believes that the shareholders of the MainStay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund will benefit from the opportunity to participate in an investment option that is more focused on portfolio holdings consisting of securities issued by small capitalization companies with the potential for improved performance relative to the MainStay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund and
28 | MainStay CBRE Global Infrastructure Fund |
lower net expenses after fee waivers and/or expense reimbursements with improved potential for economies of scale. The aggregate net assets of the Fund immediately before the Reorganization were
$216,261,572, and the combined net assets after the Reorganization were $243,837,191.
The chart below shows a summary of net assets, shares outstanding, net asset value per share outstanding and total distributable earnings (loss), before and after the Reorganization:
Before Reorganization | After Reorganization | |||||||||||||||
MainStay Cushing Energy Income Fund | MainStay Cushing Renaissance Advantage Fund | MainStay CBRE Global Infrastructure Fund | MainStay CBRE Global Infrastructure Fund | |||||||||||||
Net Assets: | ||||||||||||||||
Class A | $ | 6,193,827 | $ | 5,450,653 | $ | 11,134,876 | $ | 22,779,356 | ||||||||
Investor Class | $ | 940,483 | $ | 950,261 | $ | 109,563 | $ | 2,000,307 | ||||||||
Class C | $ | 3,159,121 | $ | 2,767,878 | $ | 957,457 | $ | 6,884,456 | ||||||||
Class I | $ | 3,592,675 | $ | 4,520,721 | $ | 204,038,989 | $ | 212,152,385 | ||||||||
Class R6 | $ | — | $ | — | $ | 20,687 | $ | 20,687 | ||||||||
Shares Outstanding: | ||||||||||||||||
Class A | 3,445,944 | 625,287 | 1,080,471 | 2,210,389 | ||||||||||||
Investor Class | 524,975 | 109,803 | 10,644 | 194,323 | ||||||||||||
Class C | 1,831,130 | 339,427 | 93,124 | 669,596 | ||||||||||||
Class I | 1,972,096 | 508,945 | 19,788,177 | 20,575,030 | ||||||||||||
Class R6 | — | — | 2,006 | 2,006 | ||||||||||||
Net Asset Value Per Share Outstanding: | ||||||||||||||||
Class A | $ | 1.80 | $ | 8.72 | $ | 10.31 | $ | 10.31 | ||||||||
Investor Class | $ | 1.79 | $ | 8.65 | $ | 10.29 | $ | 10.29 | ||||||||
Class C | $ | 1.73 | $ | 8.15 | $ | 10.28 | $ | 10.28 | ||||||||
Class I | $ | 1.82 | $ | 8.88 | $ | 10.31 | $ | 10.31 | ||||||||
Class R6 | $ | — | $ | — | $ | 10.31 | $ | 10.31 | ||||||||
|
| |||||||||||||||
Total distributable earnings (loss) | $ | (248,267,119 | ) | $ | (84,368,759 | ) | $ | (14,398,971 | ) | $ | (15,483,333 | ) | ||||
|
|
Assuming the Reorganization had been completed on May 1, 2020, the beginning of the annual reporting period of the Fund, the Fund’s pro forma results of operations for the six-month period ended October 31, 2020, are as follows:
Net investment income (loss) | $ | 3,044,822 | ||
Net realized and unrealized gain (loss) | (16,104,243 | ) | ||
Net change in net assets resulting from operations | $ | (13,059,421 | ) |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the MainStay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund that have been included in the Fund’s Statement of Operations since May 22, 2020.
For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from MainStay Cushing Energy Income Fund and MainStay Cushing Renaissance Advantage Fund, in the amount of $15,298,435 and $12,595,451, respectively, were carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
Note 11–Recent Accounting Pronouncement
To improve the effectiveness of fair value disclosure requirements, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13, Fair Value Measurement Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which adds, removes, and modifies certain fair value measurement disclosure requirements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019. The Manager evaluated the implications of certain provisions of ASU 2018-13 and determined to early adopt aspects related to the removal and modifications of certain fair value measurement disclosures, which are currently in place as of October 31, 2020. The Manager is evaluating the implications of certain other provisions of ASU 2018-13 related to new disclosure requirements and has not yet determined the impact of those provisions on the financial statement disclosures, if any.
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-04 (“ASU 2020-04”), which provides optional guidance to ease the potential accounting burden
29 |
Notes to Financial Statements (Unaudited) (continued)
associated with transitioning away from LIBOR and other reference rates that are expected to be discontinued. ASU 2020-04 is effective immediately upon release of the update on March 12, 2020, through December 31, 2022. At this time, the Manager is evaluating the implications of certain other provisions of ASU 2020-04 related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
Note 12–Other Matters
An outbreak of COVID-19, first detected in December 2019, has developed into a global pandemic and has resulted in travel restrictions, closure of international borders, certain businesses and securities markets, restrictions on securities trading activities, prolonged quarantines, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The continued impact of COVID-19
is uncertain and could further adversely affect the global economy, national economies, individual issuers and capital markets in unforeseeable ways and result in a substantial and extended economic downturn. Developments that disrupt global economies and financial markets, such as COVID-19, may magnify factors that affect the Fund’s performance.
Note 13–Subsequent Events
In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended October 31, 2020, events and transactions subsequent to October 31, 2020, through the date the financial statements were issued have been evaluated by the Manager, for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
30 | MainStay CBRE Global Infrastructure Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available free of charge upon request, by visiting the MainStay Funds’ website at newyorklifeinvestments.com or visiting the SEC’s website at www.sec.gov.
The Fund is required to file with the SEC its proxy voting records for the 12-month period ending June 30 on Form N-PX. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting the MainStay Funds’ website at newyorklifeinvestments.com; or visiting the SEC’s website at www.sec.gov.
Shareholder Reports and Quarterly Portfolio Disclosure
The Fund is required to file its complete schedule of portfolio holdings with the SEC 60 days after its first and third fiscal quarter on Form N-PORT. The Fund’s holdings report is available free of charge by visiting the SEC’s website at www.sec.gov or upon request by calling New York Life Investments at 800-624-6782.
31 |
MainStay Funds
Equity
U.S. Equity
MainStay Epoch U.S. All Cap Fund
MainStay Epoch U.S. Equity Yield Fund
MainStay MacKay Common Stock Fund
MainStay MacKay Growth Fund
MainStay MacKay S&P 500 Index Fund
MainStay MacKay Small Cap Core Fund
MainStay MacKay U.S. Equity Opportunities Fund
MainStay MAP Equity Fund
MainStay Winslow Large Cap Growth Fund1
International Equity
MainStay Epoch International Choice Fund
MainStay MacKay International Equity Fund
MainStay MacKay International Opportunities Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Yield Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay Unconstrained Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund2
MainStay Short Term Bond Fund3
Tax-Exempt Income
MainStay MacKay California Tax Free Opportunities Fund4
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay Intermediate Tax Free Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund5
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Tax Free Bond Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Defensive ETF Allocation Fund
MainStay Equity Allocation Fund6
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund7
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam Belgium S.A.8
Brussels, Belgium
Candriam Luxembourg S.C.A.8
Strassen, Luxembourg
CBRE Clarion Securities LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
MacKay Shields LLC8
New York, New York
Markston International LLC
White Plains, New York
NYL Investors LLC8
New York, New York
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC8
Jersey City, New Jersey
Custodian9
State Street Bank and Trust Company
Boston, Massachusetts
1. | Formerly known as MainStay Large Cap Growth Fund. |
2. | Formerly known as MainStay MacKay Infrastructure Bond Fund. |
3. | Formerly known as MainStay Indexed Bond Fund. |
4. | This Fund is registered for sale in AZ, CA, NV, OR, TX, UT and WA. Class A and Class I shares are registered for sale in MI. Class I and Class C2 shares are registered for sale in CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY. |
5. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY and VT. |
6. | Formerly known as MainStay Growth Allocation Fund. |
7. | Formerly known as MainStay Moderate Growth Allocation Fund. |
8. | An affiliate of New York Life Investment Management LLC. |
9. | The custodian for MainStay Cushing MLP Premier Fund is U.S. Bank National Association, Milwaukee, Wisconsin and the custodian for the MainStay ETF Asset Allocation Funds is JPMorgan Chase Bank, N.A., New York, New York. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2020 NYLIFE Distributors LLC. All rights reserved.
1878524 MS203-20 | MSCBGI10-12/20 (NYLIM) NL479 |
MainStay CBRE Real Estate Fund
Message from the President and Semiannual Report
Unaudited | October 31, 2020
Beginning on January 1, 2021, paper copies of each MainStay Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from MainStay Funds or from your financial intermediary. Instead, the reports will be made available on the MainStay Funds’ website. You will be notified by mail and provided with a website address to access the report each time a new report is posted to the website.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from MainStay Funds electronically by calling toll-free 800-624-6782, by sending an e-mail to MainStayShareholderServices@nylim.com, or by contacting your financial intermediary.
You may elect to receive all future shareholder reports in paper form free of charge. If you hold shares of a MainStay Fund directly, you can inform MainStay Funds that you wish to receive paper copies of reports by calling toll-free 800-624-6782 or by sending an e-mail to MainStayShareholderServices@nylim.com. If you hold shares of a MainStay Fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper form will apply to all MainStay Funds in which you are invested and may apply to all funds held with your financial intermediary.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Although the global coronavirus pandemic continued to afflict populations and economies around the world, most broad U.S. stock and bond markets gained ground, rebounding from earlier pandemic-related declines to rise during the six-month reporting period ended October 31, 2020.
The backdrop for the reporting period was set in February and March 2020 as COVID-19 spread worldwide. Governments struggled to support overburdened health care systems by issuing “stay-at-home” orders and placing restrictions on nonessential activity. These responses slowed global economic activity, driving stock and bond indices sharply lower. Emergency monetary and fiscal measures promised economic relief, and by early April, market sentiment began to improve. Unemployment remained high, some sectors of the global economy remained depressed and many questions surrounding the pandemic had yet to be answered. Nevertheless, investors looked forward to a gradual lessening of restrictions on nonessential businesses, the possibility of additional stimulus and apparent progress in the development of a vaccine.
As the reporting period began on May 1, 2020, the S&P 500® Index, a widely regarded benchmark of U.S. equity market performance, had already recovered much of the ground it lost in February and March 2020. By late-August, the S&P 500® Index had reached new record levels. However, a resurgence of coronavirus cases in many parts of the country and uncertainties related to the November 3, 2020, U.S. election caused the rally to falter as the reporting period drew to a close.
Nevertheless, for the reporting period as a whole, U.S. equity indices generally produced strong gains. Returns proved most robust among small- to mid-cap stocks and growth-oriented stocks, while large-cap and value-oriented issues posted slightly milder gains. Within the S&P 500® Index, the consumer discretionary sector generated the strongest returns buoyed by better-than-expected levels of consumer spending. The materials, information technology, industrials and communication services sectors all outperformed the S&P 500® Index. The utilities, financials, consumer staples, health care and real estate sectors generated positive returns but lagged the Index. Only the energy sector ended the reporting period in negative
territory, experiencing sharp losses due to low petroleum prices and weak global demand. International equities rose, but tended to trail their U.S. counterparts due to weaker underlying economic growth and somewhat less aggressive monetary and fiscal stimulus. Emerging-market equities tracked the performance of U.S. equity markets more closely, led by relatively strong returns in Asian markets, including China and South Korea.
Risk-on conditions prevailed for fixed-income markets as well, favoring lower credit quality and longer duration securities. Corporate bonds generally gained ground, with high-yield securities tending to outperform investment-grade instruments. Similarly, among municipal bond issues, high-yield securities outperformed. Recognized safe havens, such as long-term U.S. government bonds, which had attracted risk-averse investors during the height of the market sell-off in early 2020, experienced declining prices. Emerging-market debt, on the other hand, outperformed most other bond types as investors overlooked risk in pursuit of higher return potential.
Although the ongoing pandemic continues to change the way that many of us work and live our lives, at New York Life Investments, we remain dedicated to providing you, as a MainStay investor, with products, information and services to help you to navigate today’s rapidly changing investment environment. By taking appropriate steps to minimize community spread of COVID-19 within our organization and despite the challenges posed by the coronavirus pandemic, we continue to innovate with you in mind, introducing new suites of Funds and providing continuous insights into ever-evolving markets and investment strategies. Our goal is to give you the tools you need to build a resilient portfolio in the face of uncertain times.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Past performance is no guarantee of future results.
Not part of the Semiannual Report
Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at newyorklifeinvestments.com. 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 and other factors, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class 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 800-624-6782 or visit newyorklifeinvestments.com.
Average Annual Total Returns for the Period-Ended October 31, 2020
Class | Sales Charge | Inception Date | Six Months | One Year or Since Inception* | Five Years | Ten Years or Since Inception | Gross Expense Ratio2 | |||||||||||||||||||||
Class A Shares3 | Maximum 5.5% Initial Sales Charge | With sales charges Excluding sales charges | | 12/20/2002 | | | –3.32 2.31 | %
| | –24.89 –20.30 | %
| | –0.39 0.79 | %
| | 5.56 6.18 | %
| | 1.42 1.42 | %
| ||||||||
Investor Class Shares4 | Maximum 5% Initial Sales Charge | With sales charges Excluding sales charges | | 2/24/2020 | | | –3.50 2.11 |
| | –28.34 –24.17 |
| | N/A N/A |
| | N/A N/A |
| | 1.32 1.32 |
| ||||||||
Class C Shares3 | Maximum 1% CDSC If Redeemed Within One Year of Purchase | With sales charges Excluding sales charges |
| 1/17/2003 |
| | 0.93 1.93 | �� | | –21.60 –20.92 |
| | 0.08 0.08 |
| | 5.35 5.35 |
| | 2.07 2.07 |
| ||||||||
Class I Shares3 | No Sales Charge | 12/31/1996 | 2.44 | –20.08 | 1.20 | 6.49 | 1.17 | |||||||||||||||||||||
Class R3 Shares3 | No Sales Charge | 8/5/2011 | 2.25 | –20.53 | 0.54 | 6.24 | 1.67 | |||||||||||||||||||||
Class R6 Shares3 | No Sales Charge | 7/3/2014 | 2.47 | –20.02 | 1.27 | 2.92 | 0.83 |
* | Effective at the close of business on February 21, 2020, the Fund changed its fiscal and tax year end from May 31 to April 30. |
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, if any, 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 may reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations (if any), please refer to the Notes to Financial Statements. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Performance figures for Class A shares, Class C shares, Class I shares, Class R3 shares and Class R6 shares, reflect the historical performance of the then-existing Class A shares, Class C shares, Class I shares, Class R and Class R6 shares of the Voya Real Estate Fund (the predecessor to the Fund, which was subject to a different fee structure) for periods prior to February 21, 2020. The MainStay CBRE Real Estate Fund commenced operations on February 24, 2020. |
4. | Prior to June 30, 2020, the maximum initial sales charge for Investor Class shares was 5.5%, which is reflected in the average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
5 |
Benchmark Performance | Six Months | One Year | Five Years | Ten Years | ||||||||||||
MSCI U.S. REIT® Index5 | 2.18 | % | –21.01 | % | 2.29 | % | 7.11 | % | ||||||||
Morningstar Real Estate Category Average6 | 4.28 | –17.05 | 2.65 | 7.05 |
5. | The MSCI U.S. REIT® Index is the Fund’s primary broad-based securities market index for comparison purposes. The MSCI U.S. REIT® Index is a free float-adjusted market capitalization weighted index that is comprised of equity real estate investment trusts. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
6. | The Morningstar Real Estate Category Average is representative of funds that invest primarily in real estate investment trusts of various types. REITs |
are companies that develop and manage real estate properties. There are several different types of REITs, including apartment, factory-outlet, health-care, hotel, industrial, mortgage, office, and shopping center REITs. Some portfolios in this category also invest in real estate operating companies. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.
6 | MainStay CBRE Real Estate Fund |
Cost in Dollars of a $1,000 Investment in MainStay CBRE Real Estate Fund (Unaudited) |
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2020, to October 31, 2020, 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, 2020, to October 31, 2020.
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, 2020. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Share Class | Beginning Account Value 5/1/20 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/20 | Expenses Paid During Period1 | Net Expense Ratio During Period2 | ||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,023.10 | $ | 6.02 | $ | 1,019.26 | $ | 6.01 | 1.18% | |||||||||||
Investor Class Shares | $ | 1,000.00 | $ | 1,021.10 | $ | 6.47 | $ | 1,018.80 | $ | 6.46 | 1.27% | |||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,019.30 | $ | 9.82 | $ | 1,015.48 | $ | 9.80 | 1.93% | |||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,024.40 | $ | 4.24 | $ | 1,021.02 | $ | 4.23 | 0.83% | |||||||||||
Class R3 Shares | $ | 1,000.00 | $ | 1,022.50 | $ | 7.29 | $ | 1,018.00 | $ | 7.27 | 1.43% | |||||||||||
Class R6 Shares | $ | 1,000.00 | $ | 1,024.70 | $ | 3.78 | $ | 1,021.48 | $ | 3.77 | 0.74% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. |
2. | Expenses are equal to the Fund’s annualized expense ratio to reflect the six-month period. |
7 |
Sector Composition as of October 31, 2020 (Unaudited)
Residential | 16.5 | % | ||
Industrial Properties | 15.2 | |||
Technology Real Estate | 15.0 | |||
Healthcare Facilities | 14.1 | |||
Net Leased Properties | 13.9 | |||
Self Storage Property | 7.7 | |||
Office Buildings | 6.5 | |||
Community Shopping Centers | 4.1 |
Enclosed Malls | 3.4 | % | ||
Hotels | 2.5 | |||
Timber | 0.8 | |||
Short-Term Investment | 0.5 | |||
Other Assets, Less Liabilities | –0.2 | |||
|
| |||
100.0 | % | |||
|
|
See Portfolio of Investments beginning on page 10 for specific holdings within these categories. The Fund’s holdings are subject to change.
Top Ten Holdings as of October 31, 2020 (excluding short-term investment) (Unaudited)
1. | Prologis, Inc. |
2. | Equinix, Inc. |
3. | Invitation Homes, Inc. |
4. | Duke Realty Corp. |
5. | Alexandria Real Estate Equities, Inc. |
6. | VEREIT, Inc. |
7. | CubeSmart |
8. | Healthcare Trust of America, Inc., Class A |
9. | CyrusOne, Inc. |
10. | Simon Property Group, Inc. |
8 | MainStay CBRE Real Estate Fund |
Portfolio Management Discussion and Analysis (Unaudited)
Questions answered by portfolio managers T. Ritson Ferguson, CFA, Joseph P. Smith, CFA, Jonathan Miniman, CFA, and Kenneth S. Weinberg, CFA, of CBRE Clarion Securities LLC, the Fund’s Subadvisor.
How did MainStay CBRE Real Estate Fund perform relative to its benchmark and peer group during the six months ended October 31, 2020?
For the six months ended October 31, 2020, Class I shares of MainStay CBRE Real Estate Fund returned 2.44%, outperforming the 2.18% return of the Fund’s primary benchmark, the MSCI U.S. REIT® Index. Over the same period, Class I shares underperformed the 4.28% return of the Morningstar Real Estate Category Average.1
What factors affected the Fund’s relative performance during the reporting period?
During the reporting period, the Fund’s performance, relative to the MSCI U.S. REIT® Index, benefited from positive stock selection in seven out of the ten property sectors in the benchmark. The three sectors in which the Fund produced the strongest relative stock selection included the residential, net lease and self-storage sectors. Conversely, sector allocation produced a modest drag on relative performance during the same period, with the technology sector detracting most significantly from relative returns, largely due to the Fund’s overweight exposure to two underperforming tower stocks.
During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?
Relatively underweight exposure to three real estate investment trust (“REIT”) sectors—mall, office and residential—made the strongest positive contributions to the Fund’s performance, relative to the MSCI U.S. REIT® Index, during the reporting period. (Contributions take weightings and total returns into account.) The most significant detractors from the Fund’s relative performance included the technology, shopping center and industrial sectors. The Fund’s technology sector underperformance was driven by overweight exposure to two relatively weak performing tower stocks. In the case of the industrials, the Fund suffered from underweight exposure to an outperforming sector, while in the case of the shopping centers sector, relative performance was hurt by the Fund’s overweight exposure to an underperforming sector.
During the reporting period, which individual stocks made the strongest positive contributions to the Fund’s absolute performance and which stocks detracted the most?
The strongest positive contributions to the Fund’s absolute performance came from investments in the net lease and residential sectors. In the net lease sector, top performers included positions in Vici Properties and STAG Industrial. In the residential sector, leading contributors included positions in Invitation Homes and Front Yard Residential.
The most significant detractors from the Fund’s absolute performance were holdings in the health care, hotel and office sectors, including health care REIT Welltower; office REITs Hudson Pacific, Highwoods and Brandywine; and hotel & resort REITs Sunstone and Host Hotels.
What were some of the Fund’s largest purchases and sales during the reporting period?
The Fund’s largest purchases during the reporting period included shares in health care REIT Welltower; shopping center REIT Regency; mall REIT Simon Property Trust; hotel REIT Host Hotels; and data center REIT CyrusOne. The Fund’s largest sales during the same period included shares in data center REIT Equinix; health care REIT HealthPeak; apartment REIT AvalonBay; tower REIT Crown Castle; and manufactured housing REIT Sun Communities.
How did the Fund’s sector weightings change during the reporting period?
During the reporting period, the Fund increased its exposure to the health care, industrial, net lease, hotel, shopping center, mall and timber REIT sectors. During the same period, the Fund reduced its exposure to the office, residential, storage and technology REIT sectors.
How was the Fund positioned at the end of the reporting period?
As of October 31, 2020, the Fund held overweight exposure relative to the MSCI U.S. REIT® Index in the industrial, net lease, shopping center and mall sectors. As of the same date, the Fund held approximately market-weight exposure to the health care and technology sectors, and relatively underweight exposure to the office, residential, hotel and storage sectors.
1. | See page 5 for other share class returns, which may be higher or lower than Class I share returns. See page 6 for more information on benchmark and peer group returns. |
The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any 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, 2020 (Unaudited)
Shares | Value | |||||||
Common Stocks 99.7%† |
| |||||||
Community Shopping Centers 4.1% |
| |||||||
Acadia Realty Trust | 352,600 | $ | 3,289,758 | |||||
Brixmor Property Group, Inc. | 234,126 | 2,566,021 | ||||||
Regency Centers Corp. | 175,139 | 6,233,197 | ||||||
Retail Properties of America, Inc., Class A | 780,062 | 4,087,525 | ||||||
|
| |||||||
16,176,501 | ||||||||
|
| |||||||
Enclosed Mall 3.4% |
| |||||||
Simon Property Group, Inc. | 217,899 | 13,686,236 | ||||||
|
| |||||||
Healthcare Facilities 14.1% |
| |||||||
Alexandria Real Estate Equities, Inc. | 105,984 | 16,058,696 | ||||||
Healthcare Trust of America, Inc., Class A | 573,695 | 13,940,788 | ||||||
Ventas, Inc. | 318,631 | 12,576,366 | ||||||
Welltower, Inc. | 248,091 | 13,339,853 | ||||||
|
| |||||||
55,915,703 | ||||||||
|
| |||||||
Hotels 2.5% |
| |||||||
Apple Hospitality REIT, Inc. | 308,200 | 3,051,180 | ||||||
Host Hotels & Resorts, Inc. | 452,410 | 4,741,257 | ||||||
Marriott International, Inc., Class A | 23,786 | 2,209,243 | ||||||
|
| |||||||
10,001,680 | ||||||||
|
| |||||||
Industrial Properties 15.2% |
| |||||||
Duke Realty Corp. | 462,734 | 17,579,265 | ||||||
Prologis, Inc. | 428,835 | 42,540,432 | ||||||
|
| |||||||
60,119,697 | ||||||||
|
| |||||||
Net Leased Properties 13.9% |
| |||||||
MGM Growth Properties LLC, Class A | 368,496 | 9,746,719 | ||||||
NETSTREIT Corp. | 141,441 | 2,480,875 | ||||||
Spirit Realty Capital, Inc. | 321,623 | 9,664,771 | ||||||
STAG Industrial, Inc. | 263,914 | 8,213,004 | ||||||
VEREIT, Inc. | 2,344,354 | 14,534,995 | ||||||
VICI Properties, Inc. | 448,880 | 10,301,796 | ||||||
|
| |||||||
54,942,160 | ||||||||
|
| |||||||
Office Buildings 6.5% |
| |||||||
Brandywine Realty Trust | 507,515 | 4,445,831 | ||||||
Columbia Property Trust, Inc. | 366,425 | 3,876,777 | ||||||
Cousins Properties, Inc. | 166,762 | 4,249,096 | ||||||
Highwoods Properties, Inc. | 170,268 | 5,068,878 | ||||||
Hudson Pacific Properties, Inc. | 155,800 | 3,000,708 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 449,175 | 5,129,579 | ||||||
|
| |||||||
25,770,869 | ||||||||
|
| |||||||
Residential 16.5% |
| |||||||
American Campus Communities, Inc. | 130,099 | 4,873,509 | ||||||
American Homes 4 Rent, Class A | 134,400 | 3,799,488 | ||||||
Apartment Investment & Management Co., Class A | 250,098 | 7,978,126 | ||||||
Camden Property Trust | 84,371 | 7,782,381 | ||||||
Equity Residential | 227,930 | 10,708,151 |
Shares | Value | |||||||
Residential (continued) |
| |||||||
Invitation Homes, Inc. | 699,076 | $ | 19,056,812 | |||||
Mid-America Apartment Communities, Inc. | 77,791 | 9,072,764 | ||||||
Sun Communities, Inc. | 15,684 | 2,158,589 | ||||||
|
| |||||||
65,429,820 | ||||||||
|
| |||||||
Self Storage Property 7.7% |
| |||||||
CubeSmart | 426,928 | 14,485,667 | ||||||
Extra Space Storage, Inc. | 27,855 | 3,229,787 | ||||||
Life Storage, Inc. | 114,065 | 13,020,520 | ||||||
|
| |||||||
30,735,974 | ||||||||
|
| |||||||
Technology Real Estate 15.0% |
| |||||||
American Tower Corp. | 34,290 | 7,874,699 | ||||||
Crown Castle International Corp. | 18,955 | 2,960,771 | ||||||
CyrusOne, Inc. | 192,761 | 13,695,669 | ||||||
Equinix, Inc. | 35,892 | 26,245,666 | ||||||
QTS Realty Trust, Inc., Class A | 143,189 | 8,807,555 | ||||||
|
| |||||||
59,584,360 | ||||||||
|
| |||||||
Timber 0.8% |
| |||||||
Weyerhaeuser Co. | 110,800 | 3,023,732 | ||||||
|
| |||||||
Total Common Stocks | 395,386,732 | |||||||
|
| |||||||
Short-Term Investment 0.5% |
| |||||||
Affiliated Investment Company 0.5% |
| |||||||
MainStay U.S. Government Liquidity Fund, 0.02% (a) | 1,790,725 | 1,790,725 | ||||||
|
| |||||||
Total Short-Term Investment | 1,790,725 | |||||||
|
| |||||||
Total Investments | 100.2 | % | 397,177,457 | |||||
Other Assets, Less Liabilities | (0.2 | ) | (664,748 | ) | ||||
Net Assets | 100.0 | % | $ | 396,512,709 |
† | Percentages indicated are based on Fund net assets. |
(a) | Current yield as of October 31, 2020. |
10 | MainStay CBRE Real Estate 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, 2020, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Assets (Level 1) | Significant Other Inputs (Level 2) | Significant Inputs (Level 3) | Total | ||||||||||||
Asset Valuation Inputs | ||||||||||||||||
Investments in Securities (a) | ||||||||||||||||
Common Stocks | $ | 395,386,732 | $ | — | $ | — | $ | 395,386,732 | ||||||||
Short-Term Investment | ||||||||||||||||
Affiliated Investment Company | 1,790,725 | — | — | 1,790,725 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 397,177,457 | $ | — | $ | — | $ | 397,177,457 | ||||||||
|
|
|
|
|
|
|
|
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 11 |
Statement of Assets and Liabilities as of October 31, 2020 (Unaudited)
Assets | ||||
Investment in unaffiliated securities, at value | $ | 395,386,732 | ||
Investment in affiliated investment company, at value | 1,790,725 | |||
Receivables: | ||||
Investment securities sold | 882,300 | |||
Dividends | 254,078 | |||
Fund shares sold | 134,218 | |||
Other assets | 81,342 | |||
|
| |||
Total assets | 398,529,395 | |||
|
| |||
Liabilities | ||||
Payables: | ||||
Investment securities purchased | 1,015,354 | |||
Fund shares redeemed | 494,138 | |||
Transfer agent (See Note 3) | 224,053 | |||
Manager (See Note 3) | 175,452 | |||
Shareholder communication | 47,059 | |||
NYLIFE Distributors (See Note 3) | 45,197 | |||
Professional fees | 15,365 | |||
Trustees | 68 | |||
|
| |||
Total liabilities | 2,016,686 | |||
|
| |||
Net assets | $ | 396,512,709 | ||
|
| |||
Composition of Net Assets | ||||
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ | 39,765 | ||
Additional paid-in capital | 376,424,724 | |||
|
| |||
376,464,489 | ||||
Total distributable earnings (loss) | 20,048,220 | |||
|
| |||
Net assets | $ | 396,512,709 | ||
|
|
Class A | ||||
Net assets applicable to outstanding shares | $ | 139,139,176 | ||
|
| |||
Shares of beneficial interest outstanding | 15,380,125 | |||
|
| |||
Net asset value per share outstanding | $ | 9.05 | ||
Maximum sales charge (5.50% of offering price) | 0.53 | |||
|
| |||
Maximum offering price per share outstanding | $ | 9.58 | ||
|
| |||
Investor Class | ||||
Net assets applicable to outstanding shares | $ | 135,159 | ||
|
| |||
Shares of beneficial interest outstanding | 14,950 | |||
|
| |||
Net asset value per share outstanding | $ | 9.04 | ||
Maximum sales charge (5.00% of offering price) | 0.48 | |||
|
| |||
Maximum offering price per share outstanding | $ | 9.52 | ||
|
| |||
Class C | ||||
Net assets applicable to outstanding shares | $ | 13,881,937 | ||
|
| |||
Shares of beneficial interest outstanding | 1,379,152 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.07 | ||
|
| |||
Class I | ||||
Net assets applicable to outstanding shares | $ | 198,397,621 | ||
|
| |||
Shares of beneficial interest outstanding | 18,717,091 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.60 | ||
|
| |||
Class R3 | ||||
Net assets applicable to outstanding shares | $ | 1,993,891 | ||
|
| |||
Shares of beneficial interest outstanding | 222,377 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 8.97 | ||
|
| |||
Class R6 | ||||
Net assets applicable to outstanding shares | $ | 42,964,925 | ||
|
| |||
Shares of beneficial interest outstanding | 4,051,762 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.60 | ||
|
|
12 | MainStay CBRE Real Estate Fund | The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. |
Statement of Operations for the six months ended October 31, 2020 (Unaudited)
Investment Income (Loss) | ||||
Income | ||||
Dividends-unaffiliated (a) | $ | 8,258,390 | ||
Interest | 430 | |||
Dividends-affiliated | 245 | |||
Other | 62 | |||
|
| |||
Total income | 8,259,127 | |||
|
| |||
Expenses | ||||
Manager (See Note 3) | 1,685,738 | |||
Transfer agent (See Note 3) | 704,650 | |||
Distribution/Service—Class A (See Note 3) | 188,631 | |||
Distribution/Service—Investor Class (See Note 3) | 168 | |||
Distribution/Service—Class C (See Note 3) | 95,912 | |||
Distribution/Service—Class R3 (See Note 3) | 6,240 | |||
Registration | 65,436 | |||
Professional fees | 57,164 | |||
Shareholder communication | 28,584 | |||
Custodian | 7,452 | |||
Trustees | 5,315 | |||
Shareholder service (See Note 3) | 1,248 | |||
Miscellaneous | 12,802 | |||
|
| |||
Total expenses before waiver/reimbursement | 2,859,340 | |||
Expense waiver/reimbursement from Manager (See Note 3) | (639,862 | ) | ||
|
| |||
Net expenses | 2,219,478 | |||
|
| |||
Net investment income (loss) | 6,039,649 | |||
|
| |||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) on: | ||||
Unaffiliated investment transactions | 3,450,943 | |||
Foreign currency transactions | (20 | ) | ||
|
| |||
Net realized gain (loss) | 3,450,923 | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Unaffiliated investments | 3,561,173 | |||
Translation of other assets and liabilities in foreign currencies | 8,202 | |||
|
| |||
Net change in unrealized appreciation (depreciation) | 3,569,375 | |||
|
| |||
Net realized and unrealized gain (loss) | 7,020,298 | |||
|
| |||
Net increase (decrease) in net assets resulting from operations | $ | 13,059,947 | ||
|
|
(a) | Dividends recorded net of foreign withholding taxes in the amount of $204. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 13 |
Statements of Changes in Net Assets
for the six months ended October 31, 2020 (Unaudited), the period June 1, 2019 through April 30, 2020 and the year ended May 31, 2019
2020 | 2020 (a) | 2019 | ||||||||||
Increase (Decrease) in Net Assets |
| |||||||||||
Operations: | ||||||||||||
Net investment income (loss) | $ | 6,039,649 | $ | 7,084,131 | $ | 8,015,600 | ||||||
Net realized gain (loss) | 3,450,923 | (21,476,089 | ) | 77,720,621 | ||||||||
Net change in unrealized appreciation (depreciation) | 3,569,375 | (119,436,877 | ) | (34,171,729 | ) | |||||||
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | 13,059,947 | (133,828,835 | ) | 51,564,492 | ||||||||
|
| |||||||||||
Distributions to shareholders: | ||||||||||||
Class A | (2,067,953 | ) | (10,726,973 | ) | (23,301,564 | ) | ||||||
Investor Class | (1,833 | ) | (232 | ) | — | |||||||
Class C | (144,759 | ) | (1,107,782 | ) | (2,530,548 | ) | ||||||
Class I | (2,986,346 | ) | (18,890,608 | ) | (44,863,260 | ) | ||||||
Class O (b) | — | — | (548,382 | ) | ||||||||
Class P3 (c) | — | — | (676 | ) | ||||||||
Class W (d) | — | (1,387,751 | ) | (4,230,510 | ) | |||||||
Class R3 (e) | (32,599 | ) | (265,293 | ) | (686,264 | ) | ||||||
Class R6 | (710,845 | ) | (9,536,377 | ) | (17,279,132 | ) | ||||||
|
| |||||||||||
(5,944,335 | ) | (41,915,016 | ) | (93,440,336 | ) | |||||||
|
| |||||||||||
Distributions to shareholders from return of capital: | ||||||||||||
Class A | — | (2,926,262 | ) | — | ||||||||
Class C | — | (304,652 | ) | — | ||||||||
Class I | — | (5,156,796 | ) | — | ||||||||
Class W (d) | — | (383,611 | ) | — | ||||||||
Class R3 (e) | — | (72,878 | ) | — | ||||||||
Class R6 | — | (2,615,230 | ) | — | ||||||||
|
| |||||||||||
— | (11,459,429 | ) | — | |||||||||
|
| |||||||||||
Total distributions to shareholders | (5,944,335 | ) | (53,374,445 | ) | (93,440,336 | ) | ||||||
|
| |||||||||||
Capital share transactions: | ||||||||||||
Net proceeds from sale of shares | 48,080,281 | 70,022,959 | 90,734,349 | |||||||||
Net asset value of shares issued in connection with the acquisition of Voya Global Real Estate Fund | — | 376,491,739 | — | |||||||||
Net asset value of shares issued to shareholders in reinvestment of distributions | 5,596,273 | 50,822,483 | 84,453,212 | |||||||||
Cost of shares redeemed | (126,800,600 | ) | (213,904,174 | ) | (311,372,429 | ) | ||||||
|
| |||||||||||
Increase (decrease) in net assets derived from capital share transactions | (73,124,046 | ) | 283,433,007 | (136,184,868 | ) | |||||||
|
| |||||||||||
Net increase (decrease) in net assets | (66,008,434 | ) | 96,229,727 | (178,060,712 | ) |
2020 | 2020 (a) | 2019 | ||||||||||
Net Assets | ||||||||||||
Beginning of period | $ | 462,521,143 | $ | 366,291,416 | $ | 544,352,128 | ||||||
|
| |||||||||||
End of period | $ | 396,512,709 | $ | 462,521,143 | $ | 366,291,416 | ||||||
|
|
(a) | The Fund changed its fiscal year end from May 31 to April 30. |
(b) | Class O converted to Class A on November 22, 2019. |
(c) | Class P3 liquidated on November 22, 2019. |
(d) | Class W converted to Class I on February 21, 2020. |
(e) | Prior to February 24, 2020, known as Class R. |
14 | MainStay CBRE Real Estate 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
Six months ended October 31, | June 1, 2019 through April 30, | Year ended May 31, | ||||||||||||||||||||||||||
Class A | 2020* | 2020# | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Net asset value at beginning of period | $ | 8.97 | $ | 12.32 | $ | 14.43 | $ | 17.81 | $ | 19.40 | $ | 19.25 | $ | 18.65 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 0.12 | (a) | 0.18 | (a) | 0.21 | (a) | 0.28 | (a) | 0.19 | (a) | 0.34 | 0.22 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.09 | (1.52 | ) | 1.29 | (0.07 | ) | (0.26 | ) | 1.36 | 1.52 | ||||||||||||||||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.00 | )‡ | — | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | 0.21 | (1.34 | ) | 1.50 | 0.21 | (0.07 | ) | 1.70 | 1.74 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.13 | ) | (0.26 | ) | (0.21 | ) | (0.28 | ) | (0.27 | ) | (0.41 | ) | (0.26 | ) | ||||||||||||||
From net realized gain on investments | — | (1.32 | ) | (3.40 | ) | (3.31 | ) | (1.25 | ) | (1.14 | ) | (0.87 | ) | |||||||||||||||
Return of capital | — | (0.43 | ) | — | — | — | — | (0.01 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total distributions | (0.13 | ) | (2.01 | ) | (3.61 | ) | (3.59 | ) | (1.52 | ) | (1.55 | ) | (1.14 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value at end of period | $ | 9.05 | $ | 8.97 | $ | 12.32 | $ | 14.43 | $ | 17.81 | $ | 19.40 | $ | 19.25 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total investment return (b) | 2.31 | % | (13.80 | %) | 12.73 | % | 0.23 | % | (0.36 | %) | 9.24 | % | 9.36 | % | ||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 2.51 | %†† | 1.69 | % †† | 1.58 | % | 1.69 | % | 1.02 | % | 1.75 | % | 1.14 | % | ||||||||||||||
Net expenses | 1.18 | %††(c) | 1.17 | % ††(c)(d) | 1.24 | % | 1.29 | % | 1.27 | % | 1.29 | % | 1.28 | % | ||||||||||||||
Expenses (before waiver/reimbursement) | 1.44 | %††(c) | 1.36 | % ††(c)(d) | 1.31 | % | 1.31 | % | 1.27 | % | 1.29 | % | 1.28 | % | ||||||||||||||
Portfolio turnover rate | 40 | % | 88 | % | 82 | % | 102 | % | 53 | % | 37 | % | 38 | % | ||||||||||||||
Net assets at end of period (in 000’s) | $ | 139,139 | $ | 149,970 | $ | 89,037 | $ | 81,475 | $ | 136,095 | $ | 188,970 | $ | 225,232 |
* | Unaudited. |
# | The Fund changed its fiscal year end from May 31 to April 30. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | Net of interest expense of less than 0.01%. (See Note 6) |
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
Investor Class | Six months ended October 31, 2020* | February 24, 2020^ through April 30, 2020 | ||||||
Net asset value at beginning of period | $ | 8.97 | $ | 12.17 | ||||
|
|
|
| |||||
Net investment income (loss) (a) | 0.12 | (0.04 | ) | |||||
Net realized and unrealized gain (loss) on investments | 0.07 | (3.10 | ) | |||||
Net realized and unrealized gain (loss) on foreign currency transactions ‡ | 0.00 | (0.00 | ) | |||||
|
|
|
| |||||
Total from investment operations | 0.19 | (3.14 | ) | |||||
|
|
|
| |||||
Less distributions: | ||||||||
From net investment income | (0.12 | ) | (0.06 | ) | ||||
|
|
|
| |||||
Net asset value at end of period | $ | 9.04 | $ | 8.97 | ||||
|
|
|
| |||||
Total investment return (b) | 2.11 | % | (25.74 | %) | ||||
Ratios (to average net assets)/Supplemental Data: | ||||||||
Net investment income (loss)†† | 2.48 | % | (2.55 | %) | ||||
Net expenses (c)†† | 1.27 | % | 1.35 | % | ||||
Expenses (before waiver/reimbursement) (c)†† | 1.36 | % | 1.56 | % | ||||
Portfolio turnover rate | 40 | % | 88 | % | ||||
Net assets at end of period (in 000’s) | $ | 135 | $ | 103 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
16 | MainStay CBRE Real Estate 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
Six months ended October 31, | June 1, 2019 through April 30, | Year ended May 31, | ||||||||||||||||||||||||||
Class C | 2020* | 2020# | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Net asset value at beginning of period | $ | 9.96 | $ | 13.47 | $ | 15.44 | $ | 18.80 | $ | 20.38 | $ | 20.14 | $ | 19.54 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 0.09 | (a) | 0.11 | (a) | 0.11 | 0.16 | (a) | 0.05 | (a) | 0.18 | 0.06 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.10 | (1.71 | ) | 1.42 | (0.08 | ) | (0.28 | ) | 1.46 | 1.53 | ||||||||||||||||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.00 | )‡ | — | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | 0.19 | (1.60 | ) | 1.53 | 0.08 | (0.23 | ) | 1.64 | 1.59 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.08 | ) | (0.18 | ) | (0.10 | ) | (0.13 | ) | (0.10 | ) | (0.26 | ) | (0.11 | ) | ||||||||||||||
From net realized gain on investments | — | (1.32 | ) | (3.40 | ) | (3.31 | ) | (1.25 | ) | (1.14 | ) | (0.87 | ) | |||||||||||||||
Return of capital | — | (0.41 | ) | — | — | — | — | (0.01 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total distributions | (0.08 | ) | (1.91 | ) | (3.50 | ) | (3.44 | ) | (1.35 | ) | (1.40 | ) | (0.99 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value at end of period | $ | 10.07 | $ | 9.96 | $ | 13.47 | $ | 15.44 | $ | 18.80 | $ | 20.38 | $ | 20.14 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total investment return (b) | 1.93 | % | (14.44 | %) | 11.90 | % | (0.50 | %) | (1.10 | %) | 8.44 | % | 8.13 | % | ||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 1.68 | %†† | 1.00 | % †��� | 0.85 | % | 0.90 | % | 0.27 | % | 0.89 | % | 0.25 | % | ||||||||||||||
Net expenses | 1.93 | %††(c) | 1.92 | % ††(c)(d) | 1.99 | % | 2.04 | % | 2.02 | % | 2.04 | % | 2.03 | % | ||||||||||||||
Expenses (before waiver/reimbursement) | 2.11 | %††(c) | 2.13 | % ††(c)(d) | 2.06 | % | 2.06 | % | 2.02 | % | 2.04 | % | 2.03 | % | ||||||||||||||
Portfolio turnover rate | 40 | % | 88 | % | 82 | % | 102 | % | 53 | % | 37 | % | 38 | % | ||||||||||||||
Net assets at end of period (in 000’s) | $ | 13,882 | $ | 20,942 | $ | 11,216 | $ | 13,449 | $ | 22,084 | $ | 29,550 | $ | 31,612 |
* | Unaudited. |
# | The Fund changed its fiscal year end from May 31 to April 30. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | Net of interest expense of less than 0.01%. (See Note 6) |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 17 |
Financial Highlights selected per share data and ratios
Six months ended October 31, | June 1, 2019 through April 30, | Year ended May 31, | ||||||||||||||||||||||||||
Class I | 2020* | 2020# | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Net asset value at beginning of period | $ | 10.49 | $ | 14.08 | $ | 15.99 | $ | 19.36 | $ | 20.95 | $ | 20.67 | $ | 20.06 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 0.16 | (a) | 0.24 | (a) | 0.30 | (a) | 0.37 | (a) | 0.28 | (a) | 0.41 | 0.28 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.10 | (1.79 | ) | 1.45 | (0.09 | ) | (0.28 | ) | 1.49 | 1.54 | ||||||||||||||||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.00 | )‡ | — | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | 0.26 | (1.55 | ) | 1.75 | 0.28 | 0.00 | 1.90 | 1.82 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.15 | ) | (0.28 | ) | (0.26 | ) | (0.34 | ) | (0.34 | ) | (0.48 | ) | (0.33 | ) | ||||||||||||||
From net realized gain on investments | — | (1.32 | ) | (3.40 | ) | (3.31 | ) | (1.25 | ) | (1.14 | ) | (0.87 | ) | |||||||||||||||
Return of capital | — | (0.44 | ) | — | — | — | — | (0.01 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total distributions | (0.15 | ) | (2.04 | ) | (3.66 | ) | (3.65 | ) | (1.59 | ) | (1.62 | ) | (1.21 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value at end of period | $ | 10.60 | $ | 10.49 | $ | 14.08 | $ | 15.99 | $ | 19.36 | $ | 20.95 | $ | 20.67 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total investment return (b) | 2.44 | % | (13.54 | %) | 13.08 | % | 0.63 | % | 0.04 | % | 9.64 | % | 9.12 | % | ||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 2.85 | %†† | 2.01 | % †† | 1.95 | % | 2.02 | % | 1.37 | % | 1.97 | % | 1.30 | % | ||||||||||||||
Net expenses | 0.83 | %††(c) | 0.84 | % ††(c)(d) | 0.91 | % | 0.91 | % | 0.90 | % | 0.90 | % | 0.91 | % | ||||||||||||||
Expenses (before waiver/reimbursement) | 1.19 | %††(c) | 1.04 | % ††(c)(d) | 0.97 | % | 0.92 | % | 0.90 | % | 0.90 | % | 0.91 | % | ||||||||||||||
Portfolio turnover rate | 40 | % | 88 | % | 82 | % | 102 | % | 53 | % | 37 | % | 38 | % | ||||||||||||||
Net assets at end of period (in 000’s) | $ | 198,398 | $ | 232,730 | $ | 166,056 | $ | 311,814 | $ | 723,538 | $ | 1,003,433 | $ | 1,046,021 |
* | Unaudited. |
# | The Fund changed its fiscal year end from May 31 to April 30. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | Net of interest expense of less than 0.01%. (See Note 6) |
18 | MainStay CBRE Real Estate 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
Six months ended October 31, | June 1, 2019 through April 30, | Year ended May 31, | ||||||||||||||||||||||||||
Class R3 | 2020* | 2020# | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Net asset value at beginning of period | $ | 8.89 | $ | 12.23 | $ | 14.35 | $ | 17.73 | $ | 19.33 | $ | 19.19 | $ | 18.59 | ||||||||||||||
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Net investment income (loss) | 0.11 | (a) | 0.15 | (a) | 0.18 | 0.23 | (a) | 0.15 | 0.30 | (a) | 0.17 | (a) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.09 | (1.51 | ) | 1.28 | (0.06 | ) | (0.27 | ) | 1.35 | 1.53 | ||||||||||||||||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.00 | )‡ | — | — | — | — | — | |||||||||||||||||||
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Total from investment operations | 0.20 | (1.36 | ) | 1.46 | 0.17 | (0.12 | ) | 1.65 | 1.70 | |||||||||||||||||||
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Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.12 | ) | (0.23 | ) | (0.18 | ) | (0.24 | ) | (0.23 | ) | (0.37 | ) | (0.22 | ) | ||||||||||||||
From net realized gain on investments | — | (1.32 | ) | (3.40 | ) | (3.31 | ) | (1.25 | ) | (1.14 | ) | (0.87 | ) | |||||||||||||||
Return of capital | — | (0.43 | ) | — | — | — | — | (0.01 | ) | |||||||||||||||||||
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Total distributions | (0.12 | ) | (1.98 | ) | (3.58 | ) | (3.55 | ) | (1.48 | ) | (1.51 | ) | (1.10 | ) | ||||||||||||||
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Net asset value at end of period | $ | 8.97 | $ | 8.89 | $ | 12.23 | $ | 14.35 | $ | 17.73 | $ | 19.33 | $ | 19.19 | ||||||||||||||
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Total investment return (b) | 2.25 | % | (14.04 | %) | 12.43 | % | — | (0.63 | %) | 9.00 | % | 9.13 | % | |||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 2.27 | %†† | 1.42 | % †† | 1.36 | % | 1.43 | % | 0.77 | % | 1.59 | % | 0.84 | % | ||||||||||||||
Net expenses | 1.43 | %††(c) | 1.42 | % ††(c)(d) | 1.49 | % | 1.54 | % | 1.52 | % | 1.54 | % | 1.53 | % | ||||||||||||||
Expenses (before reimbursement/waiver) | 1.79 | %††(c) | 1.61 | % ††(c)(d) | 1.56 | % | 1.56 | % | 1.52 | % | 1.54 | % | 1.53 | % | ||||||||||||||
Portfolio turnover rate | 40 | % | 88 | % | 82 | % | 102 | % | 53 | % | 37 | % | 38 | % | ||||||||||||||
Net assets at end of period (in 000’s) | $ | 1,994 | $ | 2,527 | $ | 2,454 | $ | 2,965 | $ | 4,448 | $ | 4,353 | $ | 2,801 |
* | Unaudited. |
# | The Fund changed its fiscal year end from May 31 to April 30. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. Class R3 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | Net of interest expense of less than 0.01%. (See Note 6) |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 19 |
Financial Highlights selected per share data and ratios
Six months ended October 31, | June 1, 2019 through April 30, | Year ended May 31, | July 3, through | |||||||||||||||||||||||||
Class R6 | 2020* | 2020# | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Net asset value at beginning of period | $ | 10.49 | $ | 14.09 | $ | 15.99 | $ | 19.36 | $ | 20.96 | $ | 20.67 | $ | 20.11 | ||||||||||||||
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Net investment income (loss) | 0.16 | (a) | 0.26 | (a) | 0.32 | 0.37 | (a) | 0.30 | (a) | 0.42 | 0.17 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.10 | (1.80 | ) | 1.45 | (0.08 | ) | (0.30 | ) | 1.51 | 1.49 | ||||||||||||||||||
Net realized and unrealized gain (loss) on foreign currency transactions | 0.00 | ‡ | (0.00 | )‡ | — | — | — | — | — | |||||||||||||||||||
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Total from investment operations | 0.26 | (1.54 | ) | 1.77 | 0.29 | 0.00 | ‡ | 1.93 | 1.66 | |||||||||||||||||||
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Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.15 | ) | (0.30 | ) | (0.27 | ) | (0.35 | ) | (0.35 | ) | (0.50 | ) | (0.29 | ) | ||||||||||||||
From net realized gain on investments | — | (1.32 | ) | (3.40 | ) | (3.31 | ) | (1.25 | ) | (1.14 | ) | (0.80 | ) | |||||||||||||||
Return of capital | — | (0.44 | ) | — | — | — | — | (0.01 | ) | |||||||||||||||||||
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Total distributions | (0.15 | ) | (2.06 | ) | (3.67 | ) | (3.66 | ) | (1.60 | ) | (1.64 | ) | (1.10 | ) | ||||||||||||||
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Net asset value at end of period | $ | 10.60 | $ | 10.49 | $ | 14.09 | $ | 15.99 | $ | 19.36 | $ | 20.96 | $ | 20.67 | ||||||||||||||
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Total investment return (b) | 2.47 | % | (13.53 | %) | 13.24 | % | 0.69 | % | 0.03 | % | 9.76 | % | 8.21 | % | ||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 2.92 | %†† | 2.06 | % †† | 2.05 | % | 2.12 | % | 1.47 | % | 2.05 | % | 0.86 | % | ||||||||||||||
Net expenses | 0.74 | %††(c) | 0.76 | % ††(c)(d) | 0.83 | % | 0.86 | % | 0.86 | % | 0.85 | % | 0.86 | % | ||||||||||||||
Expenses (before waiver/reimbursement) | 0.83 | %††(c) | 0.88 | % ††(c)(d) | 0.89 | % | 0.86 | % | 0.86 | % | 0.85 | % | 0.88 | % | ||||||||||||||
Portfolio turnover rate | 40 | % | 88 | % | 82 | % | 102 | % | 53 | % | 37 | % | 38 | % | ||||||||||||||
Net assets at end of period (in 000’s) | $ | 42,965 | $ | 56,250 | $ | 79,327 | $ | 79,646 | $ | 42,574 | $ | 20,345 | $ | 13,575 |
* | Unaudited. |
# | The Fund changed its fiscal year end from May 31 to April 30. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. Class R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | Net of interest expense of less than 0.01%. (See Note 6) |
20 | MainStay CBRE Real Estate Fund | The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. |
Notes to Financial Statements (Unaudited)
Note 1–Organization and Business
MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of thirty-four funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay CBRE Real Estate Fund (the “Fund”), a “non-diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The Fund is successor to the Voya Real Estate Fund (the “Predecessor Fund”), which was a series of a different registered investment company for which Voya Investments, LLC (“Voya”), an Arizona limited liability company served as investment adviser and CBRE Clarion Securities LLC (“CBRE Clarion” or the “Subadvisor”), served as subadvisor. The financial statements of the Fund reflect the historical results of corresponding shares of the Predecessor Fund through its reorganization on February 21, 2020. Upon the completion of reorganization, the Class A, Class C, Class I, Class R3 and Class R6 shares of the Fund assumed the performance, financial and other information of the Predecessor Fund. All information regarding and references to periods through February 21, 2020, refer to the Predecessor Fund.
The Fund currently has seven classes of shares registered for sale. Class I shares commenced operations on December 31, 1996. Class A shares commenced operations on December 20, 2002. Class C shares commenced operations on January 17, 2003. Class R6 shares commenced operations on July 3, 2014. Investor Class and Class R3 shares commenced operations on February 24, 2020. Effective at the close of business on November 22, 2019, all outstanding Class O shares merged into Class A shares and Class P3 shares were liquidated. Effective at the close of business on February 21, 2020, Class R shares merged into Class R3 shares and Class W shares merged into Class I shares. SIMPLE Class shares were registered for sale effective as of August 31, 2020. As of October 31, 2020, SIMPLE Class shares were not yet offered for sale.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $1 million or more (and certain other qualified purchases) in Class A and Investor Class shares. A contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions of Class A and Investor Class shares made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I, Class R3 and Class R6 shares are offered at NAV without a sales charge. SIMPLE Class shares are currently expected to be offered at NAV without a sales charge. Depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter ten years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions. See
Note 9 for additional information. 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 under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A, Investor Class, Class R3 and SIMPLE Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund’s investment objective is to seek total return.
Effective at the close of business on February 21, 2020, the Fund changed its fiscal and tax year end from May 31 to April 30.
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 usually valued as of the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).
The Board of Trustees of the Trust (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and other assets and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Trust (the “Valuation Committee”). The procedures state 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 assess the appropriateness of security valuations, the Manager, the 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.
The Board authorized the Valuation Committee to appoint a Valuation Subcommittee (the “Subcommittee”) to establish the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under the procedures. The Subcommittee meets (in person, via electronic mail or via teleconference) on an as-needed basis. The Valuation Committee meets to ensure that actions taken by the Subcommittee were appropriate.
For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Subcommittee deals with such valuation and the Valuation Committee reviews and affirms, if appropriate, the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the
21 |
Notes to Financial Statements (Unaudited) (continued)
Valuation Committee. Any action taken by the Subcommittee with respect to the valuation of a portfolio security or other asset is submitted for review and ratification (if appropriate) to the Valuation Committee and the Board at the next regularly scheduled meeting.
“Fair value” is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.
• | Level 1—quoted prices in active markets for an identical asset or liability |
• | Level 2—other significant observable inputs (including quoted prices for a similar asset or liability in active markets, interest rates and yield curves, prepayment speeds, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of October 31, 2020, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Broker/dealer quotes | • Benchmark securities | |
• Two-sided markets | • Reference data (corporate actions or material event notices) | |
• Bids/offers | • Monthly payment information | |
• Industry and economic events | • Reported trades |
An asset or liability for which 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 trans-
actions, 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. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Fund’s valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Fund’s valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security’s sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended October 31, 2020, 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 delisted 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 the 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 valued in this manner are generally categorized as Level 3 in the hierarchy. No securities held by the Fund as of October 31, 2020, were fair valued in such a manner.
Equity securities are valued at the last quoted sales prices as of the close of regular trading on the relevant exchange on each valuation date. Securities that are not traded on the valuation date are valued at the mean of the last quoted bid and ask prices. Prices are normally taken from the principal market in which each security trades. These securities are generally categorized as Level 1 in the hierarchy.
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. Temporary cash investments that mature in 60 days or less at the time of purchase (“Short-Term Investments”) are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference
22 | MainStay CBRE Real Estate Fund |
between such cost and the value on maturity date. Amortized cost approximates the current fair value of a security. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The valuation procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years) and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income tax and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.
(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare and pay dividends from net investment income, if any, at least quarterly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using GAAP.
(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Dividend income is recognized on the ex-dividend date, net of any foreign tax withheld at the source, and interest income is accrued as earned using the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred. Distributions received from real estate investment trusts (“REITs”) may be classified as dividends, capital gains and/or return of capital.
(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and/or the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.
Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Fund’s Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) Repurchase Agreements. The Fund may enter into repurchase agreements (i.e., buy a security from another party with the agreement that it will be sold back in the future) to earn income. The Fund may enter into repurchase agreements only with counterparties, usually financial institutions, that are deemed by the Manager or the Subadvisor to be creditworthy, pursuant to guidelines established by the Board. During the term of any repurchase agreement, the Manager or the Subadvisor will continue to monitor the creditworthiness of the counterparty. Under the 1940 Act, repurchase agreements are considered to be collateralized loans by the Fund to the counterparty secured by the securities transferred to the Fund.
Repurchase agreements are subject to counterparty risk, meaning the Fund could lose money by the counterparty’s failure to perform under the terms of the agreement. The Fund mitigates this risk by ensuring the repurchase agreement is collateralized by cash, U.S. government securities, fixed income securities and/or other securities. The collateral is held by the Fund’s custodian and 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 counterparty’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, realization and/or retention of the collateral may be limited or subject to delay, to legal proceedings and possible realized loss to the Fund. As of October 31, 2020, the Fund did not hold any repurchase agreements.
(H) Securities Lending. In order to realize additional income, the Fund may engage in securities lending, subject to the limitations set forth in the 1940 Act and relevant guidance by the staff of the Securities and Exchange Commission (“SEC”). If the Fund engages in securities lending, the Fund will lend through its custodian, currently State Street Bank and Trust Company (“State Street”), acting as securities lending agent on behalf of the Fund. Under the current arrangement, State Street will manage the Fund’s collateral in accordance with the securities lending agency agreement between the Fund and State Street,
23 |
Notes to Financial Statements (Unaudited) (continued)
and indemnify the Fund against counterparty risk. The loans will be collateralized by cash (which may be invested in a money market fund) and/or non-cash collateral (which may include U.S. Treasury securities and/or U.S. government agency securities issued or guaranteed by the United States government or its agencies or instrumentalities) at least equal at all times to the market value of the securities loaned. The Fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned. The Fund may also record a realized gain or loss on securities deemed sold due to a borrower’s inability to return securities on loan. The Fund bears the risk of any loss on investment of cash collateral. The Fund will receive compensation for lending its securities in the form of fees or it will retain a portion of interest earned on the investment of any cash collateral. The Fund will also continue to receive interest and dividends on the securities loaned and any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the Fund. Income earned from securities lending activities, if any, is reflected in the Statement of Operations. As of October 31, 2020, the Fund did not have any portfolio securities on loan.
(I) Real Estate Investments. The Fund’s investments in the real estate sector have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. These risks include, among others, declines in the value of real estate, changes in local and general economic conditions, supply and demand, interest rates, changes in zoning laws, overbuilding, extended vacancies of properties, regulatory limitations on rents, losses due to environmental liabilities, property taxes and operating expenses. The Fund’s investments in real estate companies are particularly sensitive to economic downturns. The Funds may invest in mortgage pass-through securities. Mortgage pass-through securities are interests in pools of mortgage-related securities. Unlike interests in other forms of debt securities, which normally provide for periodic payment of interest in fixed amounts with the payment of principal being made at maturity or specified call dates, these securities provide a monthly payment that consists of both interest and principal payments. In June 2019, under the direction of the Federal Housing Finance Agency (“FHFA”), FNMA and Federal Home Loan Mortgage Corporation (“FHLMC”) launched the common securitization platform (“CSP”) and began the issuance of a uniform mortgage-backed security (“UMBS”) (the “Single Security Initiative”) that aligns the characteristics of FNMA and FHLMC certificates. The Single Security Initiative is intended to maximize liquidity for both FNMA and FHLMC MBS in the “to-be-announced” (“TBA”) market. The CSP began issuing UMBS in June 2019. The initial effects of the issuance of UMBS on the market for mortgage-related securities have been relatively minimal, however the long-term effects are still uncertain.
(J) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that may provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Manager believes that the risk of loss in
connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.
Note 3–Fees and Related Party Transactions
(A) Manager and Subadvisor. New York Life Investments, a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to an Amended and Restated Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. CBRE Clarion 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 CBRE Clarion, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of 0.75% of the Fund’s average daily net assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase and sale of portfolio investments, and acquired (underlying) fund fees and expenses) do not exceed the following percentages of average daily net assets: Class A, 1.18%; Investor Class, 1.35%; Class C, 1.93%; Class I, 0.83%; Class R3, 1.43% and Class R6, 0.74%. This agreement will remain in effect until February 28, 2022, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended October 31, 2020, New York Life Investments earned fees from the Fund in the amount of $1,685,738 and voluntarily waived and/or reimbursed certain class specific expenses in the amount of $639,862 and paid the Subadvisor in the amount of $523,151.
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.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or
24 | MainStay CBRE Real Estate Fund |
procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a distribution agreement with NYLIFE Distributors LLC (the “Distributor”), an affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly 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 C Plan, Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.75% of the average daily net assets of the Class C shares along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares, for a total 12b-1 fee of 1.00%. Pursuant to the Class R3 Plan, 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 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 Plan for the 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 R3 shares. For its services, the Manager, its affiliates or independent third-party service providers are entitled to a shareholder service fee accrued daily and paid monthly at an annual rate of 0.10% of the average daily net assets of the Class R3 shares. This is in addition to any fees paid under the Class R3 Plan.
During the six-month period ended October 31, 2020, shareholder service fees incurred by the Fund were as follows:
Class R3 | $ | 1,248 |
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A shares during the six-month period ended October 31, 2020 were $699.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class C shares during the six-month period ended October 31, 2020, of $308.
(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 DST Asset Manager Solutions, Inc. (“DST”), pursuant to which DST performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until August 31, 2021, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended October 31, 2020, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived | ||||||
Class A | $ | 269,844 | $ | — | ||||
Investor Class | 187 | — | ||||||
Class C | 27,060 | — | ||||||
Class I | 402,054 | — | ||||||
Class R3 | 4,463 | — | ||||||
Class R6 | 1,042 | — |
(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. As described in the Fund’s prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Investments in Affiliates (in 000’s). During the six-month period ended October 31, 2020, purchases and sales transactions, income earned from investments and shares held of investment companies managed by New York Life Investments or its affiliates were as follows:
Affiliated Investment Company | Value, Beginning of Period | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) on Sales | Change in Unrealized Appreciation/ (Depreciation) | Value, End of Period | Dividend Income | Other Distributions | Shares End of Period | |||||||||||||||||||||||||||
MainStay U.S. Government Liquidity Fund | $ | 1,483 | $ | 52,062 | $ | (51,754 | ) | $ | — | $ | — | $ | 1,791 | $ | 0 | (a) | $ | — | 1,791 |
(a) | Less than $500. |
25 |
Notes to Financial Statements (Unaudited) (continued)
(G) Capital. As of October 31, 2020, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Investor Class | $ | 18,952 | 14.0 | % |
Note 4–Federal Income Tax
As of October 31, 2020, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Investments in Securities | $ | 351,148,516 | $ | 96,494,969 | $ | (50,466,028 | ) | $ | 46,028,941 |
As of April 30, 2020, for federal income tax purposes, capital loss carryforwards of $21,121,106, were available as shown in the table below, to the extent provided by the regulations to offset future realized gains of the Fund. 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 have expired.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) | ||
Unlimited | $21,121 | $ — |
During the period ended April 30, 2020 and the years ended May 31, 2019 and May 31, 2018, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets was as follows:
2020 | 2019 (a) | 2018 (b) | ||||||||||
Distributions paid from: | ||||||||||||
Ordinary Income | $ | 8,694,492 | $ | 7,797,337 | $ | 16,954,703 | ||||||
Long-Term Capital Gain | 33,220,524 | 109,707,907 | 181,262,103 | |||||||||
Return of Capital | 11,459,429 | — | — | |||||||||
Total | $ | 53,374,445 | $ | 117,505,244 | $ | 198,216,806 |
(a) | Reflects the period January 1, 2018 to May 31, 2019. |
(b) | Reflects the period January 1, 2017 to December 31, 2017. |
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 transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.
Effective July 28, 2020, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JP Morgan Chase Bank NA, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate or the one-month London Interbank Offered Rate (“LIBOR”), whichever is higher. The Credit Agreement expires on July 27, 2021, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 28, 2020, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement, but State Street served as agent to the syndicate. During the six-month period ended October 31, 2020, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement or the credit agreement for which State Street served as agent.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. During the six-month period ended October 31, 2020, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended October 31, 2020, purchases and sales of securities, other than short-term securities, were $174,321 and $245,910, respectively.
26 | MainStay CBRE Real Estate Fund |
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended October 31, 2020 and period ended April 30, 2020 and year May 31, 2019, were as follows:
Class A | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 926,814 | $ | 15,413,842 | |||||
Shares issued to shareholders in reinvestment of distributions | 208,894 | 1,946,888 | ||||||
Shares redeemed | (2,482,199 | ) | (30,110,091 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | (1,346,491 | ) | (12,749,361 | ) | ||||
Shares converted into Class A (See Note 1) | 8,056 | 76,462 | ||||||
Shares converted from Class A (See Note 1) | (2,312 | ) | (21,604 | ) | ||||
|
| |||||||
Net increase (decrease) | (1,340,747 | ) | $ | (12,694,503 | ) | |||
|
| |||||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 1,279,592 | $ | 14,459,791 | |||||
Shares issued in connection with the acquisition of Voya Global Real Estate Fund | 10,862,553 | 132,240,719 | ||||||
Shares issued to shareholders in reinvestment of distributions | 1,170,854 | 12,886,821 | ||||||
Shares redeemed | (3,865,185 | ) | (42,186,914 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 9,447,814 | 117,400,417 | ||||||
Shares converted into Class A (See Note 1) | 76,971 | 986,054 | ||||||
Shares converted from Class A (See Note 1) | (28,491 | ) | (250,924 | ) | ||||
|
| |||||||
Net increase (decrease) | 9,496,294 | $ | 118,135,547 | |||||
|
| |||||||
Year ended May 31, 2019: | ||||||||
Shares sold | 2,965,027 | $ | 40,136,779 | |||||
Shares issued to shareholders in reinvestment of distributions | 1,832,255 | 21,201,439 | ||||||
Shares redeemed | (3,217,267 | ) | (42,408,705 | ) | ||||
|
| |||||||
Net increase (decrease) | 1,580,015 | $ | 18,929,513 | |||||
|
| |||||||
Investor Class | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 3,019 | $ | 29,878 | |||||
Shares issued to shareholders in reinvestment of distributions | 194 | 1,810 | ||||||
Shares redeemed | (1,124 | ) | (12,838 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 2,089 | 18,850 | ||||||
Shares converted into Investor Class (See Note 1) | 1,365 | 13,142 | ||||||
|
| |||||||
Net increase (decrease) | 3,454 | $ | 31,992 | |||||
|
| |||||||
Period ended April 30, 2020 (b): | ||||||||
Shares sold | 5,227 | $ | 55,122 | |||||
Shares issued to shareholders in reinvestment of distributions | 28 | 232 | ||||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 5,255 | 55,354 | ||||||
Shares converted into Investor Class (See Note 1) | 6,241 | 55,033 | ||||||
|
| |||||||
Net increase (decrease) | 11,496 | $ | 110,387 | |||||
|
|
Class C | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 8,134 | $ | 904,178 | |||||
Shares issued to shareholders in reinvestment of distributions | 12,107 | 125,521 | ||||||
Shares redeemed | (735,603 | ) | (8,491,058 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | (715,362 | ) | (7,461,359 | ) | ||||
Shares converted from Class C (See Note 1) | (8,490 | ) | (89,606 | ) | ||||
|
| |||||||
Net increase (decrease) | (723,852 | ) | $ | (7,550,965 | ) | |||
|
| |||||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 53,330 | $ | 700,758 | |||||
Shares issued in connection with the acquisition of Voya Global Real Estate Fund | 1,778,849 | 24,032,600 | ||||||
Shares issued to shareholders in reinvestment of distributions | 91,984 | 1,119,154 | ||||||
Shares redeemed | (646,944 | ) | (7,571,941 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 1,277,219 | 18,280,571 | ||||||
Shares converted from Class C (See Note 1) | (6,901 | ) | (72,969 | ) | ||||
|
| |||||||
Net increase (decrease) | 1,270,318 | $ | 18,207,602 | |||||
|
| |||||||
Year ended May 31, 2019: | ||||||||
Shares sold | 150,093 | $ | 1,909,696 | |||||
Shares issued to shareholders in reinvestment of distributions | 162,526 | 2,050,944 | ||||||
Shares redeemed | (351,064 | ) | (4,983,427 | ) | ||||
|
| |||||||
Net increase (decrease) | (38,445 | ) | $ | (1,022,787 | ) | |||
|
| |||||||
Class I | Shares | Amount | ||||||
Six-month period ended October 31, 2020 : | ||||||||
Shares sold | 1,107,085 | $ | 24,186,742 | |||||
Shares issued to shareholders in reinvestment of distributions | 256,375 | 2,798,268 | ||||||
Shares redeemed | (4,838,798 | ) | (64,687,972 | ) | ||||
|
| |||||||
Net increase in shares outstanding before conversion | (3,475,338 | ) | (37,702,962 | ) | ||||
Shares converted into Class I (See Note 1) | 1,977 | 21,606 | ||||||
|
| |||||||
Net increase (decrease) | (3,473,361 | ) | $ | (37,681,356 | ) | |||
|
| |||||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 2,855,713 | $ | 38,263,825 | |||||
Shares issued in connection with the acquisition of Voya Global Real Estate Fund | 14,928,722 | 212,295,388 | ||||||
Shares issued to shareholders in reinvestment of distributions | 1,766,919 | 22,773,079 | ||||||
Shares redeemed | (10,196,442 | ) | (126,175,668 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 9,354,912 | 147,156,624 | ||||||
Shares converted into Class I (See Note 1) | 1,044,599 | 14,780,362 | ||||||
|
| |||||||
Net increase (decrease) | 10,399,511 | $ | 161,936,986 | |||||
|
| |||||||
Year ended May 31, 2019: | ||||||||
Shares sold | 2,221,379 | $ | 32,219,821 | |||||
Shares issued to shareholders in reinvestment of distributions | 2,956,600 | 39,218,327 | ||||||
Shares redeemed | (12,890,706 | ) | (199,210,519 | ) | ||||
|
| |||||||
Net increase (decrease) | (7,712,727 | ) | $ | (127,772,371 | ) | |||
|
|
27 |
Notes to Financial Statements (Unaudited) (continued)
Class O (c) | Shares | Amount | ||||||
Period ended April 30, 2020: | ||||||||
Shares sold | 574 | $ | 7,701 | |||||
Shares issued to shareholders in reinvestment of distributions | 901 | 11,489 | ||||||
Shares redeemed | (1,541 | ) | (19,997 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | (66 | ) | (807 | ) | ||||
Shares converted from Class O (See Note 1) | (69,360 | ) | (913,477 | ) | ||||
|
| |||||||
Net increase (decrease) | (69,426 | ) | $ | (914,284 | ) | |||
|
| |||||||
Year ended May 31, 2019: | ||||||||
Shares sold | 24,037 | $ | 359,109 | |||||
Shares issued to shareholders in reinvestment of distributions | 16,489 | 191,373 | ||||||
Shares redeemed | (1,979,386 | ) | (27,747,247 | ) | ||||
|
| |||||||
Net increase (decrease) | (1,938,860 | ) | $ | (27,196,765 | ) | |||
|
| |||||||
Class P3 (d) | Shares | Amount | ||||||
Period ended April 30, 2020 : | ||||||||
Shares sold | — | ^ | $ | (3,282 | ) | |||
Shares issued to shareholders in reinvestment of distributions | 1 | (676 | ) | |||||
Shares redeemed | (238 | ) | — | * | ||||
|
| |||||||
Net increase (decrease) | (237 | ) | $ | (3,958 | ) | |||
|
| |||||||
Period ended May 31, 2019 (e): | ||||||||
Shares sold | 186 | $ | 3,000 | |||||
Shares issued to shareholders in reinvestment of distributions | 51 | 676 | ||||||
|
| |||||||
Net increase (decrease) | 237 | $ | 3,676 | |||||
|
| |||||||
Class W (f) | Shares | Amount | ||||||
Period ended April 30, 2020: | ||||||||
Shares sold | 104,784 | $ | 1,872,287 | |||||
Shares issued to shareholders in reinvestment of distributions | 106,712 | 1,769,915 | ||||||
Shares redeemed | (401,959 | ) | (7,007,707 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | (190,463 | ) | (3,365,505 | ) | ||||
Shares converted from Class W (See Note 1) | (813,053 | ) | (14,584,079 | ) | ||||
|
| |||||||
Net increase (decrease) | (1,003,516 | ) | $ | (17,949,584 | ) | |||
|
| |||||||
Year ended May 31, 2019: | ||||||||
Shares sold | 175,673 | $ | 3,030,565 | |||||
Shares issued to shareholders in reinvestment of distributions | 260,533 | 4,210,664 | ||||||
Shares redeemed | (819,733 | ) | (14,017,042 | ) | ||||
|
| |||||||
Net increase (decrease) | (383,527 | ) | $ | (6,775,813 | ) | |||
|
|
Class R3 (g) | Shares | Amount | ||||||
Six-month period ended October 31, 2020 : | ||||||||
Shares sold | 19,418 | $ | 331,422 | |||||
Shares issued to shareholders in reinvestment of distributions | 2,871 | 26,531 | ||||||
Shares redeemed | (84,034 | ) | (942,580 | ) | ||||
|
| |||||||
Net increase (decrease) | (61,745 | ) | $ | (584,627 | ) | |||
|
| |||||||
Period ended April 30, 2020: | ||||||||
Shares sold | 52,424 | $ | 597,248 | |||||
Shares issued in connection with the acquisition of Voya Global Real Estate Fund | 123,116 | 1,486,187 | ||||||
Shares issued to shareholders in reinvestment of distributions | 20,361 | 223,752 | ||||||
Shares redeemed | (112,370 | ) | (1,269,388 | ) | ||||
|
| |||||||
Net increase (decrease) | 83,531 | $ | 1,037,799 | |||||
|
| |||||||
Year ended May 31, 2019: | ||||||||
Shares sold | 94,242 | $ | 1,190,537 | |||||
Shares issued to shareholders in reinvestment of distributions | 30,817 | 355,082 | ||||||
Shares redeemed | (131,034 | ) | (1,687,215 | ) | ||||
|
| |||||||
Net increase (decrease) | (5,975 | ) | $ | (141,596 | ) | |||
|
| |||||||
Class R6 | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 177,758 | $ | 7,214,219 | |||||
Shares issued to shareholders in reinvestment of distributions | 63,885 | 697,255 | ||||||
Shares redeemed | (1,551,991 | ) | (22,556,061 | ) | ||||
|
| |||||||
Net increase (decrease) | (1,310,348 | ) | $ | (14,644,587 | ) | |||
|
| |||||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 1,023,400 | $ | 14,069,509 | |||||
Shares issued in connection with the acquisition of Voya Global Real Estate Fund | 452,467 | 6,436,845 | ||||||
Shares issued to shareholders in reinvestment of distributions | 924,406 | 12,038,717 | ||||||
Shares redeemed | (2,668,546 | ) | (29,672,559 | ) | ||||
|
| |||||||
Net increase (decrease) | (268,273 | ) | $ | 2,872,512 | ||||
|
| |||||||
Year ended May 31, 2019: | ||||||||
Shares sold | 813,449 | $ | 11,884,842 | |||||
Shares issued to shareholders in reinvestment of distributions | 1,300,167 | 17,224,707 | ||||||
Shares redeemed | (1,463,528 | ) | (21,318,274 | ) | ||||
|
| |||||||
Net increase (decrease) | 650,088 | $ | 7,791,275 | |||||
|
|
^ | Less than one cent per share. |
* | Less than one dollar. |
(a) | The Fund changed its fiscal year end from May 31 to April 30. |
(b) | The inception date of the class was February 24, 2020. |
(c) | Class O converted to Class A on November 22, 2019. |
(d) | Class P3 liquidated on November 22, 2019. |
(e) | The inception date of the class was June 4, 2018. |
(f) | Class W converted to Class I on February 21, 2020. |
(g) | Prior to February 24, 2020, known as Class R. |
28 | MainStay CBRE Real Estate Fund |
Note 10–Fund Acquisition
At a special meeting held on February 6, 2020, the shareholders approved the Reorganization providing for the acquisition of the assets and liabilities of the Voya Global Real Estate Fund in exchange for shares of the Fund, followed by the complete liquidation of the Voya Global Real Estate Fund. The Reorganization was completed on February 21, 2020. The shareholders of Voya Global Real Estate Fund received the same class of shares of the Fund in a tax-free transaction. The shares were issued at NAV on February 21, 2020.
Additionally, at a special meeting held on February 6, 2020, the shareholders approved the Reorganization providing for the acquisition of the assets and liabilities of the Voya Real Estate Fund in exchange for shares of the Fund, followed by the complete liquidation of the Voya Real Estate Fund. The Reorganization was completed on February 21,
2020. The shareholders of Voya Real Estate Fund received the same class of shares of the Fund in a tax-free transaction. The shares were issued at NAV on February 21, 2020.
As described in Note 1, the Fund is successor to the Voya Real Estate Fund, therefore the financial statements of the Fund reflect the historical results of the Predecessor Fund through its reorganization. As such, the acquisition of the Predecessor Fund is not reflected in the Statements of Changes in Net Assets and not presented in the chart below. Refer to the Statements of Changes in Net Assets and Note 9 for details of the capital transactions in relation to the acquisition of Voya Global Real Estate Fund. The aggregate net assets of the Fund immediately before the Reorganization were $348,527,828 and the combined net assets after the Reorganization were $725,019,567.
The chart below shows a summary of net assets, shares outstanding, net asset value per share outstanding and total distributable earnings (loss), before and after the Reorganization:
Before Reorganization | After Reorganization | |||||||||||
Voya Global Real Estate Fund | MainStay | MainStay CBRE Real Estate Fund | ||||||||||
Net Assets: | ||||||||||||
Class A | $ | 132,240,719 | $ | 86,912,500 | $ | 219,153,219 | ||||||
Class C | $ | 24,032,600 | $ | 8,188,352 | $ | 32,220,952 | ||||||
Class I | $ | 164,108,502 | $ | 145,142,140 | $ | 309,250,642 | ||||||
Class R3* | $ | 1,486,187 | $ | 2,116,508 | $ | 3,602,695 | ||||||
Class R6 | $ | 6,436,845 | $ | 91,584,249 | $ | 98,021,094 | ||||||
Class W** | $ | 48,186,886 | $ | 14,584,079 | $ | 62,770,965 | ||||||
Shares Outstanding: | ||||||||||||
Class A | 9,990,267 | 7,139,167 | 18,001,720 | |||||||||
Class C | 2,489,035 | 606,085 | 2,384,934 | |||||||||
Class I | 12,426,651 | 10,206,418 | 21,746,614 | |||||||||
Class R3* | 113,055 | 175,332 | 298,448 | |||||||||
Class R6 | 487,598 | 6,437,756 | 6,890,223 | |||||||||
Class W** | 3,634,262 | 813,054 | 4,414,087 | |||||||||
Net Asset Value Per Share Outstanding: | ||||||||||||
Class A | $ | 13.24 | $ | 12.17 | $ | 12.17 | ||||||
Class C | $ | 9.66 | $ | 13.51 | $ | 13.51 | ||||||
Class I | $ | 13.21 | $ | 14.22 | $ | 14.22 | ||||||
Class R3* | $ | 13.15 | $ | 12.07 | $ | 12.07 | ||||||
Class R6 | $ | 13.20 | $ | 14.23 | $ | 14.23 | ||||||
Class W** | $ | 13.26 | $ | 17.94 | $ | 14.22 | ||||||
|
| |||||||||||
Total distributable earnings (loss) | $ | 74,730,316 | $ | 127,231,327 | $ | 201,764,866 | ||||||
|
|
* | Prior to February 24, 2020, known as Class R. |
** | Class W converted to Class I on February 21, 2020. |
Assuming the Reorganization had been completed on May 1, 2019, the beginning of the annual reporting period of the Fund, the Fund’s pro forma results of operations for the six-month period ended April 30, 2020, are as follows (Unaudited):
Net investment income (loss) | $ | 9,786,523 | ||
Net realized and unrealized gain (loss) | (1,586,749 | ) | ||
Net change in net assets resulting from operations | $ | 8,199,774 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not
practicable to separate the amounts of revenue and earnings of the Voya Global Real Estate Fund that have been included in the Fund’s Statement of Operations since February 21, 2020.
For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Voya Global Real Estate Fund, in the amount of $299,158,351 was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
29 |
Notes to Financial Statements (Unaudited) (continued)
Note 11–Recent Accounting Pronouncement
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-04 (“ASU 2020-04”), which provides optional guidance to ease the potential accounting burden associated with transitioning away from LIBOR and other reference rates that are expected to be discontinued. ASU 2020-04 is effective immediately upon release of the update on March 12, 2020, through December 31, 2022. At this time, the Manager is evaluating the implications of certain other provisions of ASU 2020-04 related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
Note 12–Other Matters
An outbreak of COVID-19, first detected in December 2019, has developed into a global pandemic and has resulted in travel restrictions, closure of international borders, certain businesses and securities markets, restrictions on securities trading activities, prolonged
quarantines, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The continued impact of COVID-19 is uncertain and could further adversely affect the global economy, national economies, individual issuers and capital markets in unforeseeable ways and result in a substantial and extended economic downturn. Developments that disrupt global economies and financial markets, such as COVID-19, may magnify factors that affect the Fund’s performance.
Note 13–Subsequent Events
In connection with the preparation of the financial statements of the Fund as of and for the six-month period ended October 31, 2020, events and transactions subsequent to October 31, 2020, through the date the financial statements were issued have been evaluated by the Manager, for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
30 | MainStay CBRE Real Estate Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available free of charge upon request, by visiting the MainStay Funds’ website at newyorklifeinvestments.com or visiting the SEC’s website at www.sec.gov.
The Fund is required to file with the SEC its proxy voting records for the 12-month period ending June 30 on Form N-PX. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting the MainStay Funds’ website at newyorklifeinvestments.com; or visiting the SEC’s website at www.sec.gov.
Shareholder Reports and Quarterly Portfolio Disclosure
The Fund is required to file its complete schedule of portfolio holdings with the SEC 60 days after its first and third fiscal quarter on Form N-PORT. The Fund’s holdings report is available free of charge by visiting the SEC’s website at www.sec.gov or upon request by calling New York Life Investments at 800-624-6782.
31 |
MainStay Funds
Equity
U.S. Equity
MainStay Epoch U.S. All Cap Fund
MainStay Epoch U.S. Equity Yield Fund
MainStay MacKay Common Stock Fund
MainStay MacKay Growth Fund
MainStay MacKay S&P 500 Index Fund
MainStay MacKay Small Cap Core Fund
MainStay MacKay U.S. Equity Opportunities Fund
MainStay MAP Equity Fund
MainStay Winslow Large Cap Growth Fund1
International Equity
MainStay Epoch International Choice Fund
MainStay MacKay International Equity Fund
MainStay MacKay International Opportunities Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Yield Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay Unconstrained Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund2
MainStay Short Term Bond Fund3
Tax-Exempt Income
MainStay MacKay California Tax Free Opportunities Fund4
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay Intermediate Tax Free Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund5
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Tax Free Bond Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Defensive ETF Allocation Fund
MainStay Equity Allocation Fund6
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund7
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam Belgium S.A.8
Brussels, Belgium
Candriam Luxembourg S.C.A.8
Strassen, Luxembourg
CBRE Clarion Securities LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
MacKay Shields LLC8
New York, New York
Markston International LLC
White Plains, New York
NYL Investors LLC8
New York, New York
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC8
Jersey City, New Jersey
Custodian9
State Street Bank and Trust Company
Boston, Massachusetts
1. | Formerly known as MainStay Large Cap Growth Fund. |
2. | Formerly known as MainStay MacKay Infrastructure Bond Fund. |
3. | Formerly known as MainStay Indexed Bond Fund. |
4. | This Fund is registered for sale in AZ, CA, NV, OR, TX, UT and WA. Class A and Class I shares are registered for sale in MI. Class I and Class C2 shares are registered for sale in CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY. |
5. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY and VT. |
6. | Formerly known as MainStay Growth Allocation Fund. |
7. | Formerly known as MainStay Moderate Growth Allocation Fund. |
8. | An affiliate of New York Life Investment Management LLC. |
9. | The custodian for MainStay Cushing MLP Premier Fund is U.S. Bank National Association, Milwaukee, Wisconsin and the custodian for the MainStay ETF Asset Allocation Funds is JPMorgan Chase Bank, N.A., New York, New York. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2020 NYLIFE Distributors LLC. All rights reserved.
1878525 MS203-20 | MSCBRE10-12/20 (NYLIM) NL480 |
MainStay Defensive ETF Allocation Fund |
MainStay Conservative ETF Allocation Fund |
MainStay Moderate ETF Allocation Fund |
MainStay Growth ETF Allocation Fund |
MainStay Equity ETF Allocation Fund |
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
President
Average Annual Total Returns for the Period-Ended October 31, 2020 | |||||
Class | Sales Charge | Inception Date | Since Inception | Gross Expense Ratio1 | |
Class A Shares | Maximum 3% Initial Sales Charge | With sales charges | 6/30/2020 | -2.23% | 1.33% |
Excluding sales charges | 0.80 | 1.33 | |||
Class C Shares | Maximum 1% CDSC | With sales charges | 6/30/2020 | -0.49 | 2.08 |
Excluding sales charges | 0.51 | 2.08 | |||
Class I Shares | No Sales Charge | 6/30/2020 | 0.86 | 1.08 | |
Class R3 Shares | No Sales Charge | 6/30/2020 | 0.61 | 1.68 | |
SIMPLE Class Shares | No Sales Charge | 8/31/2020 | -1.82 | 1.58 |
1. | 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. |
Benchmark Performance | Since Inception |
S&P 500® Index1 | 6.03% |
MSCI EAFE® Index2 | 0.61 |
Bloomberg Barclays U.S. Aggregate Bond Index3 | 0.17 |
Defensive Allocation Composite Index4 | 1.12 |
Morningstar Allocation - 15% to 30% Equity Category Average5 | 2.23 |
1. | The S&P 500® Index is the Fund's primary broad-based securities market index for comparison purposes. “S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
2. | The MSCI EAFE® Index is the Fund's secondary benchmark. The MSCI EAFE® Index consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
3. | The Fund has selected the Bloomberg Barclays U.S. Aggregate Bond Index as an additional benchmark. The Bloomberg 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. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
4. | The Fund has selected the Defensive Allocation Composite Index as an additional benchmark. The Defensive Allocation Composite Index consists of the S&P 500® Index, the MSCI EAFE® Index and the Bloomberg Barclays U.S. Aggregate Bond Index weighted 15%, 5% and 80%, respectively. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
5. | The Morningstar Allocation – 15% to 30% Equity Category Average is representative of funds that seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 15% and 30%. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
6 | MainStay Defensive ETF Allocation Fund |
Share Class | Beginning Account Value 6/30/201 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period2 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/203 | Expenses Paid During Period2, 3 | Net Expense Ratio During Period4 |
Class A Shares | $1,000.00 | $1,008.00 | $2.71 | $1,014.15 | $2.71 | 0.80% |
Class C Shares | $1,000.00 | $1,005.10 | $5.24 | $1,011.63 | $5.25 | 1.55% |
Class I Shares | $1,000.00 | $1,008.60 | $1.86 | $1,015.00 | $1.87 | 0.55% |
Class R3 Shares | $1,000.00 | $1,006.10 | $3.89 | $1,012.97 | $3.90 | 1.15% |
SIMPLE Class Shares 5 | $1,000.00 | $ 981.80 | $1.74 | $1,006.60 | $1.76 | 1.05% |
1. | The inception date of the Fund. |
2. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 123 (to reflect the since-inception period) and 61 days for SIMPLE Class (to reflect the since-inception period). The table above represents the actual expenses incurred during the period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. |
3. | Expenses paid during the period reflect ongoing costs for the period from inception through October 31, 2020. Had these shares been offered for the full six-month period ended October 31, 2020, and had the Fund provided a hypothetical 5% annualized return, expenses paid during the period would have been $4.08 for Class A shares, $7.88 for Class C shares, $2.80 for Class I shares, $5.85 for Class R3 shares and $5.35 for SIMPLE Class shares. The ending account values would have been $1,021.17 for Class A shares, $1,017.39 for Class C shares, $1,022.43 for Class I shares, $1,019.41 for Class R3 shares and $1,019.91 for SIMPLE Class shares. |
4. | Expenses are equal to the Fund's annualized expense ratio to reflect the period. |
5. | The inception date was August 31, 2020. |
Fixed Income Funds | 80.5% |
Equity Funds | 18.3 |
Other Assets, Less Liabilities | 1.2 |
8 | MainStay Defensive ETF Allocation Fund |
1. | See page 5 for other share class returns, which may be higher or lower than Class I share returns. See page 6 for more information on benchmark and peer group returns. |
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 a more accurate sensitivity gauge than average maturity. |
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. |
10 | MainStay Defensive ETF Allocation Fund |
Shares | Value | ||
Investment Companies 98.8%† | |||
Equity Funds 18.3% | |||
iShares Core MSCI EAFE ETF | 7,053 | $ 410,202 | |
Schwab U.S. Small-Cap ETF | 565 | 39,448 | |
VanEck Vectors Gold Miners ETF | 3,016 | 113,070 | |
Vanguard Mega Cap ETF | 4,947 | 574,940 | |
Vanguard Mega Cap Value ETF | 4,125 | 308,303 | |
Total Equity Funds (Cost $1,470,357) | 1,445,963 | ||
Fixed Income Funds 80.5% | |||
Invesco Senior Loan ETF | 18,794 | 404,071 | |
iShares 0-5 Year High Yield Corporate Bond ETF | 17,075 | 749,593 | |
iShares Broad USD High Yield Corporate Bond ETF | 2,108 | 83,308 | |
iShares Core U.S. Aggregate Bond ETF | 21,839 | 2,559,531 | |
Schwab U.S. Aggregate Bond ETF | 45,996 | 2,558,757 | |
Total Fixed Income Funds (Cost $6,403,027) | 6,355,260 | ||
Total Investment Companies (Cost $7,873,384) | 98.8% | 7,801,223 | |
Other Assets, Less Liabilities | 1.2 | 91,516 | |
Net Assets | 100.0% | $7,892,739 |
† | Percentages indicated are based on Fund net assets. |
The following abbreviations are used in the preceding pages: |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
MSCI—Morgan Stanley Capital International |
USD—United States Dollar |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||
Asset Valuation Inputs | |||||||
Investments in Securities (a) | |||||||
Investment Companies | |||||||
Equity Funds | $1,445,963 | $— | $— | $1,445,963 | |||
Fixed Income Funds | 6,355,260 | — | — | 6,355,260 | |||
Total Investments in Securities | $7,801,223 | $— | $— | $7,801,223 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
Assets | |
Investment in securities, at value (identified cost $7,873,384) | $7,801,223 |
Cash | 18,191 |
Receivables: | |
Fund shares sold | 31,640 |
Manager (See Note 3) | 10,238 |
Other assets | 57,070 |
Total assets | 7,918,362 |
Liabilities | |
Payables: | |
Professional fees | 7,577 |
Investment securities purchased | 6,154 |
Transfer agent (See Note 3) | 2,854 |
Shareholder communication | 1,450 |
NYLIFE Distributors (See Note 3) | 1,222 |
Trustees | 211 |
Accrued expenses | 6,155 |
Total liabilities | 25,623 |
Net assets | $7,892,739 |
Composition of Net Assets | |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 785 |
Additional paid-in-capital | 7,961,995 |
7,962,780 | |
Total distributable earnings (loss) | (70,041) |
Net assets | $7,892,739 |
Class A | |
Net assets applicable to outstanding shares | $5,683,461 |
Shares of beneficial interest outstanding | 565,123 |
Net asset value per share outstanding | $ 10.06 |
Maximum sales charge (3.00% of offering price) | 0.31 |
Maximum offering price per share outstanding | $ 10.37 |
Class C | |
Net assets applicable to outstanding shares | $ 223,193 |
Shares of beneficial interest outstanding | 22,204 |
Net asset value and offering price per share outstanding | $ 10.05 |
Class I | |
Net assets applicable to outstanding shares | $1,936,412 |
Shares of beneficial interest outstanding | 192,500 |
Net asset value and offering price per share outstanding | $ 10.06 |
Class R3 | |
Net assets applicable to outstanding shares | $ 25,136 |
Shares of beneficial interest outstanding | 2,500 |
Net asset value and offering price per share outstanding | $ 10.05 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 24,537 |
Shares of beneficial interest outstanding | 2,440 |
Net asset value and offering price per share outstanding | $ 10.06 |
12 | MainStay Defensive ETF Allocation Fund |
Investment Income (Loss) | |
Income | |
Dividends | $ 29,190 |
Expenses | |
Offering (See Note 2) | 26,373 |
Registration | 12,007 |
Professional fees | 7,599 |
Manager (See Note 3) | 3,145 |
Transfer agent (See Note 3) | 3,145 |
Distribution/Service—Class A (See Note 3) | 2,098 |
Distribution/Service—Class C (See Note 3) | 592 |
Distribution/Service—Class R3 (See Note 3) | 43 |
Distribution/Service—SIMPLE Class (See Note 3) | 21 |
Shareholder communication | 1,450 |
Custodian | 881 |
Trustees | 228 |
Shareholder service (See Note 3) | 9 |
Miscellaneous | 393 |
Total expenses before waiver/reimbursement | 57,984 |
Expense waiver/reimbursement from Manager (See Note 3) | (46,575) |
Net expenses | 11,409 |
Net investment income (loss) | 17,781 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on investments | (3,348) |
Net change in unrealized appreciation (depreciation) on investments | (72,161) |
Net realized and unrealized gain (loss) | (75,509) |
Net increase (decrease) in net assets resulting from operations | $(57,728) |
for the period June 30, 2020 (inception date) through October 31, 2020 (Unaudited)
2020 | |
Increase (Decrease) in Net Assets | |
Operations: | |
Net investment income (loss) | $ 17,781 |
Net realized gain (loss) | (3,348) |
Net change in unrealized appreciation (depreciation) | (72,161) |
Net increase (decrease) in net assets resulting from operations | (57,728) |
Distributions to shareholders: | |
Class A | (7,135) |
Class C | (16) |
Class I | (5,101) |
Class R3 | (28) |
SIMPLE Class | (33) |
Total distributions to shareholders | (12,313) |
Capital share transactions: | |
Net proceeds from sales of shares | 8,459,208 |
Net asset value of shares issued to shareholder in reinvestment of distributions | 7,129 |
Cost of shares redeemed | (503,557) |
Increase (decrease) in net assets derived from capital share transactions | 7,962,780 |
Net increase (decrease) in net assets | 7,892,739 |
Net Assets | |
Beginning of period | — |
End of period | $7,892,739 |
14 | MainStay Defensive ETF Allocation Fund |
June 30, 2020^ through October 31, | |
Class A | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.03 |
Net realized and unrealized gain (loss) on investments | 0.05(b) |
Total from investment operations | 0.08 |
Less distributions: | |
From net investment income | (0.02) |
Net asset value at end of period | $ 10.06 |
Total investment return (c) | 0.80% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.78% |
Net expenses†† (d) | 0.80% |
Expenses (before waiver/reimbursement)†† (d) | 3.35% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 5,683 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class C | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | 0.04(b) |
Total from investment operations | 0.05 |
Less distributions: | |
From net investment income | (0.00)‡ |
Net asset value at end of period | $ 10.05 |
Total investment return (c) | 0.51% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.27% |
Net expenses†† (d) | 1.55% |
Expenses (before waiver/reimbursement)†† (d) | 4.81% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 223 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class I | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.06 |
Net realized and unrealized gain (loss) on investments | 0.03(b) |
Total from investment operations | 0.09 |
Less distributions: | |
From net investment income | (0.03) |
Net asset value at end of period | $ 10.06 |
Total investment return (c) | 0.86% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 1.66% |
Net expenses†† (d) | 0.55% |
Expenses (before waiver/reimbursement)†† (d) | 4.00% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 1,936 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class R3 | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.04 |
Net realized and unrealized gain (loss) on investments | 0.02(b) |
Total from investment operations | 0.06 |
Less distributions: | |
From net investment income | (0.01) |
Net asset value at end of period | $ 10.05 |
Total investment return (c) | 0.61% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 1.06% |
Net expenses†† (d) | 1.15% |
Expenses (before waiver/reimbursement)†† (d) | 4.60% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 25 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
16 | MainStay Defensive ETF Allocation Fund |
August 31, 2020^ through October 31, | |
SIMPLE Class | 2020* |
Net asset value at beginning of period | $ 10.26 |
Net investment income (loss) (a) | 0.02 |
Net realized and unrealized gain (loss) on investments | (0.21) |
Total from investment operations | (0.19) |
Less distributions: | |
From net investment income | (0.01) |
Net asset value at end of period | $ 10.06 |
Total investment return (b) | (1.82)% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 1.24% |
Net expenses†† (c) | 1.05% |
Expenses (before waiver/reimbursement)†† (c) | 3.34% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 25 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
Average Annual Total Returns for the Period-Ended October 31, 2020 | |||||
Class | Sales Charge | Inception Date | Since Inception | Gross Expense Ratio1 | |
Class A Shares | Maximum 3% Initial Sales Charge | With sales charges | 6/30/2020 | -1.19% | 1.33% |
Excluding sales charges | 1.87 | 1.33 | |||
Class C Shares | Maximum 1% CDSC | With sales charges | 6/30/2020 | 0.60 | 2.08 |
Excluding sales charges | 1.60 | 2.08 | |||
Class I Shares | No Sales Charge | 6/30/2020 | 2.03 | 1.08 | |
Class R3 Shares | No Sales Charge | 6/30/2020 | 1.78 | 1.68 | |
SIMPLE Class Shares | No Sales Charge | 8/31/2020 | -2.67 | 1.58 |
1. | 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. |
18 | MainStay Conservative ETF Allocation Fund |
Benchmark Performance | Since Inception |
S&P 500® Index1 | 6.03% |
MSCI EAFE® Index2 | 0.61 |
Bloomberg Barclays U.S. Aggregate Bond Index3 | 0.17 |
Conservative Allocation Composite Index4 | 2.05 |
Morningstar Allocation - 30% to 50% Equity Category Average5 | 2.84 |
1. | The S&P 500® Index is the Fund's primary broad-based securities market index for comparison purposes. “S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
2. | The MSCI EAFE® Index is the Fund's secondary benchmark. The MSCI EAFE® Index consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
3. | The Fund has selected the Bloomberg Barclays U.S. Aggregate Bond Index as an additional benchmark. The Bloomberg 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. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
4. | The Fund has selected the Conservative Allocation Composite Index as an additional benchmark. The Conservative Allocation Composite Index consists of the S&P 500® Index, the MSCI EAFE® Index and the Bloomberg Barclays U.S. Aggregate Bond Index weighted 30%, 10% and 60%, respectively. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
5. | The Morningstar Allocation – 30% to 50% Equity Category Average is representative of funds that seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 30% and 50%. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
Share Class | Beginning Account Value 6/30/201 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period2 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/203 | Expenses Paid During Period2, 3 | Net Expense Ratio During Period4 |
Class A Shares | $1,000.00 | $1,018.70 | $2.72 | $1,014.15 | $2.71 | 0.80% |
Class C Shares | $1,000.00 | $1,016.00 | $5.27 | $1,011.63 | $5.25 | 1.55% |
Class I Shares | $1,000.00 | $1,020.30 | $1.87 | $1,015.00 | $1.87 | 0.55% |
Class R3 Shares | $1,000.00 | $1,017.80 | $3.91 | $1,012.97 | $3.90 | 1.15% |
SIMPLE Class Shares 5 | $1,000.00 | $ 973.30 | $1.73 | $1,006.60 | $1.76 | 1.05% |
1. | The inception date of the Fund. |
2. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 123 (to reflect the since-inception period) and 61 days for SIMPLE Class (to reflect the since-inception period). The table above represents the actual expenses incurred during the period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. |
3. | Expenses paid during the period reflect ongoing costs for the period from inception through October 31, 2020. Had these shares been offered for the full six-month period ended October 31, 2020, and had the Fund provided a hypothetical 5% annualized return, expenses paid during the period would have been $4.08 for Class A shares, $7.88 for Class C shares, $2.80 for Class I shares, $5.85 for Class R3 shares and $5.35 for SIMPLE Class shares. The ending account values would have been $1,021.17 for Class A shares, $1,017.39 for Class C shares, $1,022.43 for Class I shares, $1,019.41 for Class R3 shares and $1,019.91 for SIMPLE Class shares. |
4. | Expenses are equal to the Fund's annualized expense ratio to reflect the period. |
5. | The inception date was August 31, 2020. |
20 | MainStay Conservative ETF Allocation Fund |
Fixed Income Funds | 59.8% |
Equity Funds | 38.0 |
Other Assets, Less Liabilities | 2.2 |
1. | See page 18 for other share class returns, which may be higher or lower than Class I share returns. See page 19 for more information on benchmark and peer group returns. |
22 | MainStay Conservative ETF Allocation Fund |
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 a more accurate sensitivity gauge than average maturity. |
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. |
24 | MainStay Conservative ETF Allocation Fund |
Shares | Value | ||
Investment Companies 97.8%† | |||
Equity Funds 38.0% | |||
iShares Core MSCI EAFE ETF | 22,687 | $ 1,319,476 | |
Schwab U.S. Mid-Cap ETF | 3,670 | 206,144 | |
Schwab U.S. Small-Cap ETF | 942 | 65,770 | |
VanEck Vectors Gold Miners ETF | 5,305 | 198,885 | |
Vanguard Mega Cap ETF | 19,836 | 2,305,340 | |
Vanguard Mega Cap Value ETF | 7,107 | 531,177 | |
Vanguard Mid-Cap ETF | 2,572 | 453,032 | |
Total Equity Funds (Cost $5,156,978) | 5,079,824 | ||
Fixed Income Funds 59.8% | |||
Invesco Senior Loan ETF | 17,958 | 386,097 | |
iShares 0-5 Year High Yield Corporate Bond ETF | 20,983 | 921,154 | |
iShares Broad USD High Yield Corporate Bond ETF | 3,418 | 135,079 | |
iShares Core U.S. Aggregate Bond ETF | 27,991 | 3,280,545 | |
Schwab U.S. Aggregate Bond ETF | 58,952 | 3,279,500 | |
Total Fixed Income Funds (Cost $8,082,161) | 8,002,375 | ||
Total Investment Companies (Cost $13,239,139) | 97.8% | 13,082,199 | |
Other Assets, Less Liabilities | 2.2 | 294,811 | |
Net Assets | 100.0% | $13,377,010 |
† | Percentages indicated are based on Fund net assets. |
The following abbreviations are used in the preceding pages: |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
MSCI—Morgan Stanley Capital International |
USD—United States Dollar |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||
Asset Valuation Inputs | |||||||
Investments in Securities (a) | |||||||
Investment Companies | |||||||
Equity Funds | $ 5,079,824 | $— | $— | $ 5,079,824 | |||
Fixed Income Funds | 8,002,375 | — | — | 8,002,375 | |||
Total Investments in Securities | $13,082,199 | $— | $— | $13,082,199 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
Assets | |
Investment in securities, at value (identified cost $13,239,139) | $13,082,199 |
Cash | 35,839 |
Receivables: | |
Fund shares sold | 213,780 |
Manager (See Note 3) | 8,843 |
Other assets | 58,625 |
Total assets | 13,399,286 |
Liabilities | |
Payables: | |
Professional fees | 7,575 |
Transfer agent (See Note 3) | 4,575 |
NYLIFE Distributors (See Note 3) | 2,207 |
Shareholder communication | 1,449 |
Trustees | 210 |
Accrued expenses | 6,260 |
Total liabilities | 22,276 |
Net assets | $13,377,010 |
Composition of Net Assets | |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 1,315 |
Additional paid-in-capital | 13,508,896 |
13,510,211 | |
Total distributable earnings (loss) | (133,201) |
Net assets | $13,377,010 |
Class A | |
Net assets applicable to outstanding shares | $11,133,503 |
Shares of beneficial interest outstanding | 1,094,568 |
Net asset value per share outstanding | $ 10.17 |
Maximum sales charge (3.00% of offering price) | 0.31 |
Maximum offering price per share outstanding | $ 10.48 |
Class C | |
Net assets applicable to outstanding shares | $ 234,829 |
Shares of beneficial interest outstanding | 23,109 |
Net asset value and offering price per share outstanding | $ 10.16 |
Class I | |
Net assets applicable to outstanding shares | $ 1,958,867 |
Shares of beneficial interest outstanding | 192,500 |
Net asset value and offering price per share outstanding | $ 10.18 |
Class R3 | |
Net assets applicable to outstanding shares | $ 25,427 |
Shares of beneficial interest outstanding | 2,500 |
Net asset value and offering price per share outstanding | $ 10.17 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 24,384 |
Shares of beneficial interest outstanding | 2,398 |
Net asset value and offering price per share outstanding | $ 10.17 |
26 | MainStay Conservative ETF Allocation Fund |
Investment Income (Loss) | |
Income | |
Dividends | $ 44,291 |
Expenses | |
Offering (See Note 2) | 24,657 |
Registration | 13,723 |
Professional fees | 7,599 |
Distribution/Service—Class A (See Note 3) | 4,752 |
Distribution/Service—Class C (See Note 3) | 545 |
Distribution/Service—Class R3 (See Note 3) | 44 |
Distribution/Service—SIMPLE Class (See Note 3) | 21 |
Manager (See Note 3) | 5,276 |
Transfer agent (See Note 3) | 5,276 |
Shareholder communication | 1,450 |
Custodian | 881 |
Trustees | 228 |
Shareholder service (See Note 3) | 9 |
Miscellaneous | 394 |
Total expenses before waiver/reimbursement | 64,855 |
Expense waiver/reimbursement from Manager (See Note 3) | (44,979) |
Net expenses | 19,876 |
Net investment income (loss) | 24,415 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on investments | 17,419 |
Net change in unrealized appreciation (depreciation) on investments | (156,940) |
Net realized and unrealized gain (loss) | (139,521) |
Net increase (decrease) in net assets resulting from operations | $(115,106) |
for the period June 30, 2020 (inception date) through October 31, 2020 (Unaudited)
2020 | |
Increase (Decrease) in Net Assets | |
Operations: | |
Net investment income (loss) | $ 24,415 |
Net realized gain (loss) | 17,419 |
Net change in unrealized appreciation (depreciation) | (156,940) |
Net increase (decrease) in net assets resulting from operations | (115,106) |
Distributions to shareholders: | |
Class A | (13,526) |
Class I | (4,524) |
Class R3 | (20) |
SIMPLE Class | (25) |
Total distributions to shareholders | (18,095) |
Capital share transactions: | |
Net proceeds from sales of shares | 13,954,988 |
Net asset value of shares issued to shareholder in reinvestment of distributions | 13,509 |
Cost of shares redeemed | (458,286) |
Increase (decrease) in net assets derived from capital share transactions | 13,510,211 |
Net increase (decrease) in net assets | 13,377,010 |
Net Assets | |
Beginning of period | — |
End of period | $13,377,010 |
28 | MainStay Conservative ETF Allocation Fund |
June 30, 2020^ through October 31, | |
Class A | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.03 |
Net realized and unrealized gain (loss) on investments | 0.16(b) |
Total from investment operations | 0.19 |
Less distributions: | |
From net investment income | (0.02) |
Net asset value at end of period | $ 10.17 |
Total investment return (c) | 1.87% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.82% |
Net expenses†† (d) | 0.80% |
Expenses (before waiver/reimbursement)†† (d) | 2.29% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 11,134 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class C | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | 0.15(b) |
Total from investment operations | 0.16 |
Net asset value at end of period | $ 10.16 |
Total investment return (c) | 1.60% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.22% |
Net expenses†† (d) | 1.55% |
Expenses (before waiver/reimbursement)†† (d) | 3.29% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 235 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class I | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.04 |
Net realized and unrealized gain (loss) on investments | 0.16(b) |
Total from investment operations | 0.20 |
Less distributions: | |
From net investment income | (0.02) |
Net asset value at end of period | $ 10.18 |
Total investment return (c) | 2.03% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 1.28% |
Net expenses†† (d) | 0.55% |
Expenses (before waiver/reimbursement)†† (d) | 2.85% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 1,959 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class R3 | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.02 |
Net realized and unrealized gain (loss) on investments | 0.16(b) |
Total from investment operations | 0.18 |
Less distributions: | |
From net investment income | (0.01) |
Net asset value at end of period | $ 10.17 |
Total investment return (c) | 1.78% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.68% |
Net expenses†† (d) | 1.15% |
Expenses (before waiver/reimbursement)†† (d) | 3.45% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 25 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
30 | MainStay Conservative ETF Allocation Fund |
August 31, 2020^ through October 31, | |
SIMPLE Class | 2020* |
Net asset value at beginning of period | $ 10.46 |
Net investment income (loss) (a) | 0.02 |
Net realized and unrealized gain (loss) on investments | (0.30) |
Total from investment operations | (0.28) |
Less distributions: | |
From net investment income | (0.01) |
Net asset value at end of period | $ 10.17 |
Total investment return (b) | (2.67)% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 1.05% |
Net expenses†† (c) | 1.05% |
Expenses (before waiver/reimbursement)†† (c) | 2.30% |
Portfolio turnover rate | 10% |
Net assets at end of period (in 000’s) | $ 24 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
Average Annual Total Returns for the Period-Ended October 31, 2020 | |||||
Class | Sales Charge | Inception Date | Since Inception | Gross Expense Ratio1 | |
Class A Shares | Maximum 3% Initial Sales Charge | With sales charges | 6/30/2020 | -0.09% | 1.33% |
Excluding sales charges | 3.00 | 1.33 | |||
Class C Shares | Maximum 1% CDSC | With sales charges | 6/30/2020 | 1.80 | 2.08 |
Excluding sales charges | 2.80 | 2.08 | |||
Class I Shares | No Sales Charge | 6/30/2020 | 3.10 | 1.08 | |
Class R3 Shares | No Sales Charge | 6/30/2020 | 2.90 | 1.68 | |
SIMPLE Class Shares | No Sales Charge | 8/31/2020 | -3.38 | 1.58 |
1. | 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. |
32 | MainStay Moderate ETF Allocation Fund |
Benchmark Performance | Since Inception |
S&P 500® Index1 | 6.03% |
MSCI EAFE® Index2 | 0.61 |
Bloomberg Barclays U.S. Aggregate Bond Index3 | 0.17 |
Moderate Allocation Composite Index4 | 2.95 |
Morningstar Allocation - 50% to 70% Equity Category Average5 | 3.53 |
1. | The S&P 500® Index is the Fund's primary broad-based securities market index for comparison purposes. “S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
2. | The MSCI EAFE® Index is the Fund's secondary benchmark. The MSCI EAFE® Index consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
3. | The Fund has selected the Bloomberg Barclays U.S. Aggregate Bond Index as an additional benchmark. The Bloomberg 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. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
4. | The Fund has selected the Moderate Allocation Composite Index as an additional benchmark. The Moderate Allocation Composite Index consists of the S&P 500® Index, the MSCI EAFE® Index and the Bloomberg Barclays U.S. Aggregate Bond Index weighted 45%, 15% and 40%, respectively. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
5. | The Morningstar Allocation – 50% to 70% Equity Category Average is representative of funds that seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 50% and 70%. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
Share Class | Beginning Account Value 6/30/201 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period2 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/203 | Expenses Paid During Period2, 3 | Net Expense Ratio During Period4 |
Class A Shares | $1,000.00 | $1,030.00 | $2.74 | $1,014.15 | $2.71 | 0.80% |
Class C Shares | $1,000.00 | $1,028.00 | $5.30 | $1,011.63 | $5.25 | 1.55% |
Class I Shares | $1,000.00 | $1,031.00 | $1.88 | $1,015.00 | $1.87 | 0.55% |
Class R3 Shares | $1,000.00 | $1,029.00 | $3.93 | $1,012.97 | $3.90 | 1.15% |
SIMPLE Class Shares 5 | $1,000.00 | $ 966.20 | $1.73 | $1,006.60 | $1.76 | 1.05% |
1. | The inception date of the Fund. |
2. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 123 (to reflect the since-inception period) and 61 days for SIMPLE Class (to reflect the since-inception period). The table above represents the actual expenses incurred during the period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. |
3. | Expenses paid during the period reflect ongoing costs for the period from inception through October 31, 2020. Had these shares been offered for the full six-month period ended October 31, 2020, and had the Fund provided a hypothetical 5% annualized return, expenses paid during the period would have been $4.08 for Class A shares, $7.88 for Class C shares, $2.80 for Class I shares, $5.85 for Class R3 shares and $5.35 for SIMPLE Class shares. The ending account values would have been $1,021.17 for Class A shares, $1,017.39 for Class C shares, $1,022.43 for Class I shares, $1,019.41 for Class R3 shares and $1,019.91 for SIMPLE Class shares. |
4. | Expenses are equal to the Fund's annualized expense ratio to reflect the period. |
5. | The inception date was August 31, 2020. |
34 | MainStay Moderate ETF Allocation Fund |
Equity Funds | 58.1% |
Fixed Income Funds | 40.7 |
Other Assets, Less Liabilities | 1.2 |
1. | See page 32 for other share class returns, which may be higher or lower than Class I share returns. See page 33 for more information on benchmark and peer group returns. |
36 | MainStay Moderate ETF Allocation Fund |
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 a more accurate sensitivity gauge than average maturity. |
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. |
38 | MainStay Moderate ETF Allocation Fund |
Shares | Value | ||
Investment Companies 98.8%† | |||
Equity Funds 58.1% | |||
iShares Core MSCI EAFE ETF | 61,658 | $ 3,586,029 | |
iShares Core MSCI Emerging Markets ETF | 2,258 | 120,735 | |
Schwab U.S. Mid-Cap ETF | 13,971 | 784,751 | |
Schwab U.S. Small-Cap ETF | 2,031 | 141,805 | |
VanEck Vectors Gold Miners ETF | 10,273 | 385,135 | |
Vanguard Mega Cap ETF | 58,716 | 6,823,974 | |
Vanguard Mega Cap Value ETF | 13,492 | 1,008,392 | |
Vanguard Mid-Cap ETF | 9,729 | 1,713,666 | |
Total Equity Funds (Cost $14,756,312) | 14,564,487 | ||
Fixed Income Funds 40.7% | |||
Invesco Senior Loan ETF | 5,764 | 123,926 | |
iShares 0-5 Year High Yield Corporate Bond ETF | 25,404 | 1,115,236 | |
iShares Broad USD High Yield Corporate Bond ETF | 6,267 | 247,672 | |
iShares Core U.S. Aggregate Bond ETF | 37,262 | 4,367,106 | |
Schwab U.S. Aggregate Bond ETF | 78,485 | 4,366,120 | |
Total Fixed Income Funds (Cost $10,319,648) | 10,220,060 | ||
Total Investment Companies (Cost $25,075,960) | 98.8% | 24,784,547 | |
Other Assets, Less Liabilities | 1.2 | 313,376 | |
Net Assets | 100.0% | $25,097,923 |
† | Percentages indicated are based on Fund net assets. |
The following abbreviations are used in the preceding pages: |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
MSCI—Morgan Stanley Capital International |
USD—United States Dollar |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||
Asset Valuation Inputs | |||||||
Investments in Securities (a) | |||||||
Investment Companies | |||||||
Equity Funds | $14,564,487 | $— | $— | $14,564,487 | |||
Fixed Income Funds | 10,220,060 | — | — | 10,220,060 | |||
Total Investments in Securities | $24,784,547 | $— | $— | $24,784,547 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
Assets | |
Investment in securities, at value (identified cost $25,075,960) | $24,784,547 |
Cash | 240,385 |
Receivables: | |
Fund shares sold | 177,823 |
Manager (See Note 3) | 5,950 |
Other assets | 56,611 |
Total assets | 25,265,316 |
Liabilities | |
Payables: | |
Investment securities purchased | 133,605 |
Fund shares redeemed | 8,316 |
Transfer agent (See Note 3) | 8,290 |
Professional fees | 7,550 |
NYLIFE Distributors (See Note 3) | 4,254 |
Shareholder communication | 1,451 |
Trustees | 192 |
Accrued expenses | 3,735 |
Total liabilities | 167,393 |
Net assets | $25,097,923 |
Composition of Net Assets | |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 2,437 |
Additional paid-in-capital | 25,329,102 |
25,331,539 | |
Total distributable earnings (loss) | (233,616) |
Net assets | $25,097,923 |
Class A | |
Net assets applicable to outstanding shares | $22,822,297 |
Shares of beneficial interest outstanding | 2,216,066 |
Net asset value per share outstanding | $ 10.30 |
Maximum sales charge (3.00% of offering price) | 0.32 |
Maximum offering price per share outstanding | $ 10.62 |
Class C | |
Net assets applicable to outstanding shares | $ 194,789 |
Shares of beneficial interest outstanding | 18,946 |
Net asset value and offering price per share outstanding | $ 10.28 |
Class I | |
Net assets applicable to outstanding shares | $ 1,995,928 |
Shares of beneficial interest outstanding | 193,547 |
Net asset value and offering price per share outstanding | $ 10.31 |
Class R3 | |
Net assets applicable to outstanding shares | $ 41,486 |
Shares of beneficial interest outstanding | 4,031 |
Net asset value and offering price per share outstanding | $ 10.29 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 43,423 |
Shares of beneficial interest outstanding | 4,218 |
Net asset value and offering price per share outstanding (a) | $ 10.30 |
(a) | The difference between the recalculated and stated NAV was caused by rounding. |
40 | MainStay Moderate ETF Allocation Fund |
Investment Income (Loss) | |
Income | |
Dividends | $ 66,477 |
Expenses | |
Offering (See Note 2) | 26,672 |
Registration | 11,708 |
Distribution/Service—Class A (See Note 3) | 10,316 |
Distribution/Service—Class C (See Note 3) | 341 |
Distribution/Service—Class R3 (See Note 3) | 50 |
Distribution/Service—SIMPLE Class (See Note 3) | 22 |
Manager (See Note 3) | 9,707 |
Transfer agent (See Note 3) | 9,707 |
Professional fees | 7,599 |
Shareholder communication | 1,450 |
Custodian | 881 |
Trustees | 228 |
Shareholder service (See Note 3) | 10 |
Miscellaneous | 394 |
Total expenses before waiver/reimbursement | 79,085 |
Expense waiver/reimbursement from Manager (See Note 3) | (41,661) |
Net expenses | 37,424 |
Net investment income (loss) | 29,053 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on investments | 28,744 |
Net change in unrealized appreciation (depreciation) on investments | (291,413) |
Net realized and unrealized gain (loss) | (262,669) |
Net increase (decrease) in net assets resulting from operations | $(233,616) |
for the period June 30, 2020 (inception date) through October 31, 2020 (Unaudited)
2020 | |
Increase (Decrease) in Net Assets | |
Operations: | |
Net investment income (loss) | $ 29,053 |
Net realized gain (loss) | 28,744 |
Net change in unrealized appreciation (depreciation) | (291,413) |
Net increase (decrease) in net assets resulting from operations | (233,616) |
Capital share transactions: | |
Net proceeds from sales of shares | 26,304,129 |
Cost of shares redeemed | (972,590) |
Increase (decrease) in net assets derived from capital share transactions | 25,331,539 |
Net increase (decrease) in net assets | 25,097,923 |
Net Assets | |
Beginning of period | — |
End of period | $25,097,923 |
42 | MainStay Moderate ETF Allocation Fund |
June 30, 2020^ through October 31, | |
Class A | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.02 |
Net realized and unrealized gain (loss) on investments | 0.28(b) |
Total from investment operations | 0.30 |
Net asset value at end of period | $ 10.30 |
Total investment return (c) | 3.00% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.57% |
Net expenses†† (d) | 0.80% |
Expenses (before waiver/reimbursement)†† (d) | 1.59% |
Portfolio turnover rate | 11% |
Net assets at end of period (in 000’s) | $ 22,822 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class C | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | (0.01) |
Net realized and unrealized gain (loss) on investments | 0.29(b) |
Total from investment operations | 0.28 |
Net asset value at end of period | $ 10.28 |
Total investment return (c) | 2.80% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | (0.39)% |
Net expenses†† (d) | 1.55% |
Expenses (before waiver/reimbursement)†† (d) | 2.46% |
Portfolio turnover rate | 11% |
Net assets at end of period (in 000’s) | $ 195 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class I | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.03 |
Net realized and unrealized gain (loss) on investments | 0.28(b) |
Total from investment operations | 0.31 |
Net asset value at end of period | $ 10.31 |
Total investment return (c) | 3.10% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.84% |
Net expenses†† (d) | 0.55% |
Expenses (before waiver/reimbursement)†† (d) | 1.82% |
Portfolio turnover rate | 11% |
Net assets at end of period (in 000’s) | $ 1,996 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class R3 | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.00‡ |
Net realized and unrealized gain (loss) on investments | 0.29(b) |
Total from investment operations | 0.29 |
Net asset value at end of period | $ 10.29 |
Total investment return (c) | 2.90% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.08% |
Net expenses†† (d) | 1.15% |
Expenses (before waiver/reimbursement)†† (d) | 2.33% |
Portfolio turnover rate | 11% |
Net assets at end of period (in 000’s) | $ 41 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
44 | MainStay Moderate ETF Allocation Fund |
August 31, 2020^ through October 31, | |
SIMPLE Class | 2020* |
Net asset value at beginning of period | $ 10.66 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | (0.37) |
Total from investment operations | (0.36) |
Net asset value at end of period | $ 10.30 |
Total investment return (b) | (3.38)% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.74% |
Net expenses†† (c) | 1.05% |
Expenses (before waiver/reimbursement)†† (c) | 1.64% |
Portfolio turnover rate | 11% |
Net assets at end of period (in 000’s) | $ 43 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
Average Annual Total Returns for the Period-Ended October 31, 2020 | |||||
Class | Sales Charge | Inception Date | Since Inception | Gross Expense Ratio1 | |
Class A Shares | Maximum 3% Initial Sales Charge | With sales charges | 6/30/2020 | 1.17% | 1.35% |
Excluding sales charges | 4.30 | 1.35 | |||
Class C Shares | Maximum 1% CDSC | With sales charges | 6/30/2020 | 3.00 | 2.10 |
Excluding sales charges | 4.00 | 2.10 | |||
Class I Shares | No Sales Charge | 6/30/2020 | 4.40 | 1.10 | |
Class R3 Shares | No Sales Charge | 6/30/2020 | 4.10 | 1.70 | |
SIMPLE Class Shares | No Sales Charge | 8/31/2020 | -4.05 | 1.60 |
1. | 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. |
46 | MainStay Growth ETF Allocation Fund |
Benchmark Performance | Since Inception |
S&P 500® Index1 | 6.03% |
MSCI EAFE® Index2 | 0.61 |
Bloomberg Barclays U.S. Aggregate Bond Index3 | 0.17 |
Growth Allocation Composite Index4 | 3.82 |
Morningstar Allocation - 70% to 85% Equity Category Average5 | 4.13 |
1. | The S&P 500® Index is the Fund's primary broad-based securities market index for comparison purposes. “S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
2. | The MSCI EAFE® Index is the Fund's secondary benchmark. The MSCI EAFE® Index consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
3. | The Fund has selected the Bloomberg Barclays U.S. Aggregate Bond Index as an additional benchmark. The Bloomberg 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. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
4. | The Fund has selected the Growth Allocation Composite Index as an additional benchmark. The Growth Allocation Composite Index consists of the S&P 500® Index, the MSCI EAFE®Index and the Bloomberg Barclays U.S. Aggregate Bond Index weighted 60%, 20% and 20%, respectively. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
5. | The Morningstar Allocation – 70% to 85% Equity Category Average is representative of funds that seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 70% and 85%. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
Share Class | Beginning Account Value 6/30/201 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period2 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/203 | Expenses Paid During Period2, 3 | Net Expense Ratio During Period4 |
Class A Shares | $1,000.00 | $1,043.00 | $2.75 | $1,014.15 | $2.71 | 0.80% |
Class C Shares | $1,000.00 | $1,040.00 | $5.33 | $1,011.63 | $5.25 | 1.55% |
Class I Shares | $1,000.00 | $1,044.00 | $1.89 | $1,015.00 | $1.87 | 0.55% |
Class R3 Shares | $1,000.00 | $1,042.00 | $3.96 | $1,012.97 | $3.90 | 1.15% |
SIMPLE Class Shares 5 | $1,000.00 | $ 959.50 | $1.72 | $1,006.60 | $1.76 | 1.05% |
1. | The inception date of the Fund. |
2. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 123 (to reflect the since-inception period) and 61 days for SIMPLE Class (to reflect the since-inception period). The table above represents the actual expenses incurred during the period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. |
3. | Expenses paid during the period reflect ongoing costs for the period from inception through October 31, 2020. Had these shares been offered for the full six-month period ended October 31, 2020, and had the Fund provided a hypothetical 5% annualized return, expenses paid during the period would have been $4.08 for Class A shares, $7.88 for Class C shares, $2.80 for Class I shares, $5.85 for Class R3 shares and $5.35 for SIMPLE Class shares. The ending account values would have been $1,021.17 for Class A shares, $1,017.39 for Class C shares, $1,022.43 for Class I shares, $1,019.41 for Class R3 shares and $1,019.91 for SIMPLE Class shares. |
4. | Expenses are equal to the Fund's annualized expense ratio to reflect the period. |
5. | The inception date was August 31, 2020. |
48 | MainStay Growth ETF Allocation Fund |
Equity Funds | 77.9% |
Fixed Income Funds | 20.9 |
Other Assets, Less Liabilities | 1.2 |
1. | See page 46 for other share class returns, which may be higher or lower than Class I share returns. See page 47 for more information on benchmark and peer group returns. |
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 a more accurate sensitivity gauge than average maturity. |
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. |
50 | MainStay Growth ETF Allocation Fund |
Shares | Value | ||
Investment Companies 98.8%† | |||
Equity Funds 77.9% | |||
iShares Core MSCI EAFE ETF | 38,101 | $ 2,215,954 | |
iShares Core MSCI Emerging Markets ETF | 3,378 | 180,622 | |
iShares Core S&P Small-Cap ETF | 2,411 | 173,640 | |
Schwab U.S. Mid-Cap ETF | 9,945 | 558,611 | |
Schwab U.S. Small-Cap ETF | 6,401 | 446,918 | |
VanEck Vectors Gold Miners ETF | 4,935 | 185,013 | |
Vanguard Mega Cap ETF | 33,229 | 3,861,875 | |
Vanguard Mega Cap Value ETF | 6,446 | 481,774 | |
Vanguard Mid-Cap ETF | 6,980 | 1,229,457 | |
Vanguard Small-Cap ETF | 212 | 33,307 | |
Total Equity Funds (Cost $9,370,653) | 9,367,171 | ||
Fixed Income Funds 20.9% | |||
Invesco Senior Loan ETF | 2,768 | 59,512 | |
iShares 0-5 Year High Yield Corporate Bond ETF | 12,353 | 542,297 | |
iShares Broad USD High Yield Corporate Bond ETF | 3,053 | 120,654 | |
iShares Core U.S. Aggregate Bond ETF | 7,677 | 899,744 | |
Schwab U.S. Aggregate Bond ETF | 16,168 | 899,426 | |
Total Fixed Income Funds (Cost $2,537,813) | 2,521,633 | ||
Total Investment Companies (Cost $11,908,466) | 98.8% | 11,888,804 | |
Other Assets, Less Liabilities | 1.2 | 139,100 | |
Net Assets | 100.0% | $12,027,904 |
† | Percentages indicated are based on Fund net assets. |
The following abbreviations are used in the preceding pages: |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
MSCI—Morgan Stanley Capital International |
USD—United States Dollar |
52 | MainStay Growth ETF Allocation Fund |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||
Asset Valuation Inputs | |||||||
Investments in Securities (a) | |||||||
Investment Companies | |||||||
Equity Funds | $ 9,367,171 | $— | $— | $ 9,367,171 | |||
Fixed Income Funds | 2,521,633 | — | — | 2,521,633 | |||
Total Investments in Securities | $11,888,804 | $— | $— | $11,888,804 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
Assets | |
Investment in securities, at value (identified cost $11,908,466) | $11,888,804 |
Cash | 269,099 |
Receivables: | |
Fund shares sold | 49,048 |
Manager (See Note 3) | 8,898 |
Other assets | 54,661 |
Total assets | 12,270,510 |
Liabilities | |
Payables: | |
Investment securities purchased | 206,722 |
Fund shares redeemed | 17,256 |
Professional fees | 7,562 |
Transfer agent (See Note 3) | 4,125 |
NYLIFE Distributors (See Note 3) | 2,064 |
Shareholder communication | 1,447 |
Trustees | 201 |
Accrued expenses | 3,229 |
Total liabilities | 242,606 |
Net assets | $12,027,904 |
Composition of Net Assets | |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 1,153 |
Additional paid-in-capital | 12,021,677 |
12,022,830 | |
Total distributable earnings (loss) | 5,074 |
Net assets | $12,027,904 |
Class A | |
Net assets applicable to outstanding shares | $9,785,815 |
Shares of beneficial interest outstanding | 938,249 |
Net asset value per share outstanding | $ 10.43 |
Maximum sales charge (3.00% of offering price) | 0.32 |
Maximum offering price per share outstanding | $ 10.75 |
Class C | |
Net assets applicable to outstanding shares | $ 31,494 |
Shares of beneficial interest outstanding | 3,027 |
Net asset value and offering price per share outstanding | $ 10.40 |
Class I | |
Net assets applicable to outstanding shares | $2,016,699 |
Shares of beneficial interest outstanding | 193,175 |
Net asset value and offering price per share outstanding | $ 10.44 |
Class R3 | |
Net assets applicable to outstanding shares | $ 128,057 |
Shares of beneficial interest outstanding | 12,294 |
Net asset value and offering price per share outstanding | $ 10.42 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 65,839 |
Shares of beneficial interest outstanding | 6,319 |
Net asset value and offering price per share outstanding | $ 10.42 |
54 | MainStay Growth ETF Allocation Fund |
Investment Income (Loss) | |
Income | |
Dividends | $ 31,985 |
Expenses | |
Offering (See Note 2) | 28,622 |
Registration | 9,758 |
Professional fees | 7,599 |
Manager (See Note 3) | 5,334 |
Transfer agent (See Note 3) | 5,334 |
Distribution/Service—Class A (See Note 3) | 4,802 |
Distribution/Service—Class C (See Note 3) | 99 |
Distribution/Service—Class R3 (See Note 3) | 211 |
Distribution/Service—SIMPLE Class (See Note 3) | 22 |
Shareholder communication | 1,450 |
Custodian | 881 |
Trustees | 228 |
Shareholder service (See Note 3) | 42 |
Miscellaneous | 394 |
Total expenses before waiver/reimbursement | 64,776 |
Expense waiver/reimbursement from Manager (See Note 3) | (44,934) |
Net expenses | 19,842 |
Net investment income (loss) | 12,143 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on investments | 12,593 |
Net change in unrealized appreciation (depreciation) on investments | (19,662) |
Net realized and unrealized gain (loss) | (7,069) |
Net increase (decrease) in net assets resulting from operations | $ 5,074 |
for the period June 30, 2020 (inception date) through October 31, 2020 (Unaudited)
2020 | |
Increase (Decrease) in Net Assets | |
Operations: | |
Net investment income (loss) | $ 12,143 |
Net realized gain (loss) | 12,593 |
Net change in unrealized appreciation (depreciation) | (19,662) |
Net increase (decrease) in net assets resulting from operations | 5,074 |
Capital share transactions: | |
Net proceeds from sales of shares | 12,609,413 |
Cost of shares redeemed | (586,583) |
Increase (decrease) in net assets derived from capital share transactions | 12,022,830 |
Net increase (decrease) in net assets | 12,027,904 |
Net Assets | |
Beginning of period | — |
End of period | $12,027,904 |
56 | MainStay Growth ETF Allocation Fund |
June 30, 2020^ through October 31, | |
Class A | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | 0.42(b) |
Total from investment operations | 0.43 |
Net asset value at end of period | $ 10.43 |
Total investment return (c) | 4.30% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.41% |
Net expenses†† (d) | 0.80% |
Expenses (before waiver/reimbursement)†† (d) | 2.35% |
Portfolio turnover rate | 15% |
Net assets at end of period (in 000’s) | $ 9,786 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class C | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | (0.01) |
Net realized and unrealized gain (loss) on investments | 0.41(b) |
Total from investment operations | 0.40 |
Net asset value at end of period | $ 10.40 |
Total investment return (c) | 4.00% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | (0.36)% |
Net expenses†† (d) | 1.55% |
Expenses (before waiver/reimbursement)†† (d) | 3.54% |
Portfolio turnover rate | 15% |
Net assets at end of period (in 000’s) | $ 31 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class I | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.02 |
Net realized and unrealized gain (loss) on investments | 0.42(b) |
Total from investment operations | 0.44 |
Net asset value at end of period | $ 10.44 |
Total investment return (c) | 4.40% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.62% |
Net expenses†† (d) | 0.55% |
Expenses (before waiver/reimbursement)†† (d) | 2.61% |
Portfolio turnover rate | 15% |
Net assets at end of period (in 000’s) | $ 2,017 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class R3 | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | (0.00)‡ |
Net realized and unrealized gain (loss) on investments | 0.42(b) |
Total from investment operations | 0.42 |
Net asset value at end of period | $ 10.42 |
Total investment return(c) (d) | 4.20% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | (0.03)% |
Net expenses†† (e) | 1.15% |
Expenses (before waiver/reimbursement)†† (e) | 3.05% |
Portfolio turnover rate | 15% |
Net assets at end of period (in 000’s) | $ 128 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(e) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
58 | MainStay Growth ETF Allocation Fund |
August 31, 2020^ through October 31, | |
SIMPLE Class | 2020* |
Net asset value at beginning of period | $ 10.86 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | (0.45) |
Total from investment operations | (0.44) |
Net asset value at end of period | $ 10.42 |
Total investment return (b) | (4.05)% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.60% |
Net expenses†† (c) | 1.05% |
Expenses (before waiver/reimbursement)†† (c) | 2.31% |
Portfolio turnover rate | 15% |
Net assets at end of period (in 000’s) | $ 66 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
Average Annual Total Returns for the Period-Ended October 31, 2020 | |||||
Class | Sales Charge | Inception Date | Since Inception | Gross Expense Ratio1 | |
Class A Shares | Maximum 3% Initial Sales Charge | With sales charges | 6/30/2020 | 2.43% | 1.33% |
Excluding sales charges | 5.60 | 1.33 | |||
Class C Shares | Maximum 1% CDSC | With sales charges | 6/30/2020 | 4.30 | 2.08 |
Excluding sales charges | 5.30 | 2.08 | |||
Class I Shares | No Sales Charge | 6/30/2020 | 5.70 | 1.08 | |
Class R3 Shares | No Sales Charge | 6/30/2020 | 5.50 | 1.68 | |
SIMPLE Class Shares | No Sales Charge | 8/31/2020 | -4.78 | 1.58 |
1. | 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. |
60 | MainStay Equity ETF Allocation Fund |
Benchmark Performance | Since Inception |
S&P 500® Index1 | 6.03% |
MSCI EAFE® Index2 | 0.61 |
Equity Allocation Composite Index3 | 4.67 |
Morningstar Allocation - 85%+ Equity Category Allocation4 | 5.04 |
1. | The S&P 500® Index is the Fund's primary broad-based securities market index for comparison purposes. “S&P 500®” is a trademark of The McGraw-Hill Companies, Inc. The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
2. | The MSCI EAFE® Index is the Fund's secondary benchmark. The MSCI EAFE® Index consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
3. | The Fund has selected the Equity Allocation Composite Index as an additional benchmark. The Equity Allocation Composite Index consists of the S&P 500® Index and the MSCI EAFE® Index weighted 75% and 25%, respectively. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. |
4. | The Morningstar Allocation – 85%+ Equity Category Average is representative of funds that seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures of over 85%. These funds typically allocate at least 10% to equities of foreign companies and do not exclusively allocate between cash and equities. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
Share Class | Beginning Account Value 6/30/201 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period2 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/203 | Expenses Paid During Period2, 3 | Net Expense Ratio During Period4 |
Class A Shares | $1,000.00 | $1,056.00 | $2.77 | $1,014.15 | $2.71 | 0.80% |
Class C Shares | $1,000.00 | $1,053.00 | $5.36 | $1,011.63 | $5.25 | 1.55% |
Class I Shares | $1,000.00 | $1,057.00 | $1.91 | $1,015.00 | $1.87 | 0.55% |
Class R3 Shares | $1,000.00 | $1,055.00 | $3.98 | $1,012.97 | $3.90 | 1.15% |
SIMPLE Class Shares 5 | $1,000.00 | $ 952.20 | $1.71 | $1,006.60 | $1.76 | 1.05% |
1. | The inception date of the Fund. |
2. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 123 (to reflect the since-inception period) and 61 days for SIMPLE Class (to reflect the since-inception period). The table above represents the actual expenses incurred during the period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. |
3. | Expenses paid during the period reflect ongoing costs for the period from inception through October 31, 2020. Had these shares been offered for the full six-month period ended October 31, 2020, and had the Fund provided a hypothetical 5% annualized return, expenses paid during the period would have been $4.08 for Class A shares, $7.88 for Class C shares, $2.80 for Class I shares, $5.85 for Class R3 shares and $5.35 for SIMPLE Class shares. The ending account values would have been $1,021.17 for Class A shares, $1,017.39 for Class C shares, $1,022.43 for Class I shares, $1,019.41 for Class R3 shares and $1,019.91 for SIMPLE Class shares. |
4. | Expenses are equal to the Fund's annualized expense ratio to reflect the period. |
5. | The inception date was August 31, 2020. |
62 | MainStay Equity ETF Allocation Fund |
Equity Funds | 95.7% |
Other Assets, Less Liabilities | 4.3 |
1. | See page 60 for other share class returns, which may be higher or lower than Class I share returns. See page 61 for more information on benchmark and peer group returns. |
64 | MainStay Equity ETF Allocation Fund |
Shares | Value | ||
Investment Companies 95.7%† | |||
Equity Funds 95.7% | |||
iShares Core MSCI EAFE ETF | 26,345 | $1,532,225 | |
iShares Core MSCI Emerging Markets ETF | 3,911 | 209,121 | |
iShares Core S&P Small-Cap ETF | 2,829 | 203,745 | |
Schwab U.S. Mid-Cap ETF | 5,818 | 326,797 | |
Schwab U.S. Small-Cap ETF | 6,988 | 487,902 | |
VanEck Vectors Gold Miners ETF | 2,972 | 111,421 | |
Vanguard Mega Cap ETF | 25,453 | 2,958,148 | |
Vanguard Mega Cap Value ETF | 3,749 | 280,200 | |
Vanguard Mid-Cap ETF | 4,072 | 717,242 | |
Vanguard Small-Cap ETF | 248 | 38,963 | |
Total Equity Funds (Cost $6,898,284) | 6,865,764 | ||
Total Investment Companies (Cost $6,898,284) | 95.7% | 6,865,764 | |
Other Assets, Less Liabilities | 4.3 | 305,196 | |
Net Assets | 100.0% | $7,170,960 |
† | Percentages indicated are based on Fund net assets. |
The following abbreviations are used in the preceding pages: |
EAFE—Europe, Australasia and Far East |
ETF—Exchange-Traded Fund |
MSCI—Morgan Stanley Capital International |
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||
Asset Valuation Inputs | |||||||
Investments in Securities (a) | |||||||
Investment Companies | |||||||
Equity Funds | $6,865,764 | $— | $— | $6,865,764 | |||
Total Investments in Securities | $6,865,764 | $— | $— | $6,865,764 |
(a) | For a complete listing of investments, see the Portfolio of Investments. |
66 | MainStay Equity ETF Allocation Fund |
Assets | |
Investment in securities, at value (identified cost $6,898,284) | $6,865,764 |
Cash | 76,297 |
Receivables: | |
Fund shares sold | 184,398 |
Manager (See Note 3) | 10,388 |
Other assets | 55,360 |
Total assets | 7,192,207 |
Liabilities | |
Payables: | |
Professional fees | 7,578 |
Fund shares redeemed | 2,954 |
Transfer agent (See Note 3) | 2,651 |
Shareholder communication | 1,450 |
NYLIFE Distributors (See Note 3) | 1,021 |
Trustees | 212 |
Accrued expenses | 5,381 |
Total liabilities | 21,247 |
Net assets | $7,170,960 |
Composition of Net Assets | |
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ 679 |
Additional paid-in-capital | 7,190,510 |
7,191,189 | |
Total distributable earnings (loss) | (20,229) |
Net assets | $7,170,960 |
Class A | |
Net assets applicable to outstanding shares | $4,799,161 |
Shares of beneficial interest outstanding | 454,445 |
Net asset value per share outstanding | $ 10.56 |
Maximum sales charge (3.00% of offering price) | 0.33 |
Maximum offering price per share outstanding | $ 10.89 |
Class C | |
Net assets applicable to outstanding shares | $ 95,384 |
Shares of beneficial interest outstanding | 9,057 |
Net asset value and offering price per share outstanding | $ 10.53 |
Class I | |
Net assets applicable to outstanding shares | $2,034,447 |
Shares of beneficial interest outstanding | 192,500 |
Net asset value and offering price per share outstanding | $ 10.57 |
Class R3 | |
Net assets applicable to outstanding shares | $ 214,989 |
Shares of beneficial interest outstanding | 20,376 |
Net asset value and offering price per share outstanding | $ 10.55 |
SIMPLE Class | |
Net assets applicable to outstanding shares | $ 26,979 |
Shares of beneficial interest outstanding | 2,558 |
Net asset value and offering price per share outstanding | $ 10.55 |
Investment Income (Loss) | |
Income | |
Dividends | $ 13,600 |
Expenses | |
Offering (See Note 2) | 27,922 |
Registration | 10,457 |
Professional fees | 7,599 |
Manager (See Note 3) | 3,060 |
Transfer agent (See Note 3) | 3,060 |
Distribution/Service—Class A (See Note 3) | 1,938 |
Distribution/Service—Class C (See Note 3) | 133 |
Distribution/Service—Class R3 (See Note 3) | 203 |
Distribution/Service—SIMPLE Class (See Note 3) | 21 |
Shareholder communication | 1,450 |
Custodian | 881 |
Trustees | 228 |
Shareholder service (See Note 3) | 40 |
Miscellaneous | 394 |
Total expenses before waiver/reimbursement | 57,386 |
Expense waiver/reimbursement from Manager (See Note 3) | (46,639) |
Net expenses | 10,747 |
Net investment income (loss) | 2,853 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) on investments | 9,438 |
Net change in unrealized appreciation (depreciation) on investments | (32,520) |
Net realized and unrealized gain (loss) | (23,082) |
Net increase (decrease) in net assets resulting from operations | $(20,229) |
68 | MainStay Equity ETF Allocation Fund |
for the period June 30, 2020 (inception date) through October 31, 2020 (Unaudited)
2020 | |
Increase (Decrease) in Net Assets | |
Operations: | |
Net investment income (loss) | $ 2,853 |
Net realized gain (loss) | 9,438 |
Net change in unrealized appreciation (depreciation) | (32,520) |
Net increase (decrease) in net assets resulting from operations | (20,229) |
Capital share transactions: | |
Net proceeds from sales of shares | 7,266,845 |
Cost of shares redeemed | (75,656) |
Increase (decrease) in net assets derived from capital share transactions | 7,191,189 |
Net increase (decrease) in net assets | 7,170,960 |
Net Assets | |
Beginning of period | — |
End of period | $7,170,960 |
June 30, 2020^ through October 31, | |
Class A | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | 0.55(b) |
Total from investment operations | 0.56 |
Net asset value at end of period | $ 10.56 |
Total investment return (c) | 5.60% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.17% |
Net expenses†† (d) | 0.80% |
Expenses (before waiver/reimbursement)†† (d) | 3.49% |
Portfolio turnover rate | 9% |
Net assets at end of period (in 000’s) | $ 4,799 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class C | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | (0.02) |
Net realized and unrealized gain (loss) on investments | 0.55(b) |
Total from investment operations | 0.53 |
Net asset value at end of period | $ 10.53 |
Total investment return (c) | 5.30% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | (0.70)% |
Net expenses†† (d) | 1.55% |
Expenses (before waiver/reimbursement)†† (d) | 4.84% |
Portfolio turnover rate | 9% |
Net assets at end of period (in 000’s) | $ 95 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
70 | MainStay Equity ETF Allocation Fund |
June 30, 2020^ through October 31, | |
Class I | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | 0.56(b) |
Total from investment operations | 0.57 |
Net asset value at end of period | $ 10.57 |
Total investment return (c) | 5.70% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.22% |
Net expenses†† (d) | 0.55% |
Expenses (before waiver/reimbursement)†† (d) | 4.02% |
Portfolio turnover rate | 9% |
Net assets at end of period (in 000’s) | $ 2,034 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
June 30, 2020^ through October 31, | |
Class R3 | 2020* |
Net asset value at beginning of period | $ 10.00 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | 0.54(b) |
Total from investment operations | 0.55 |
Net asset value at end of period | $ 10.55 |
Total investment return (c) | 5.50% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.25% |
Net expenses†† (d) | 1.15% |
Expenses (before waiver/reimbursement)†† (d) | 3.73% |
Portfolio turnover rate | 9% |
Net assets at end of period (in 000’s) | $ 215 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund's net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund's investments. |
(c) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. Class R3 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
August 31, 2020^ through October 31, | |
SIMPLE Class | 2020* |
Net asset value at beginning of period | $ 11.08 |
Net investment income (loss) (a) | 0.01 |
Net realized and unrealized gain (loss) on investments | (0.54) |
Total from investment operations | (0.53) |
Net asset value at end of period | $ 10.55 |
Total investment return (b) | (4.78)% |
Ratios (to average net assets)/Supplemental Data: | |
Net investment income (loss)†† | 0.45% |
Net expenses†† (c) | 1.05% |
Expenses (before waiver/reimbursement)†† (c) | 3.40% |
Portfolio turnover rate | 9% |
Net assets at end of period (in 000’s) | $ 27 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. SIMPLE Class shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
72 | MainStay Equity ETF Allocation Fund |
Fund | Share Classes Commenced Operations1 |
MainStay Defensive ETF Allocation Fund | Class A, Class C, Class I, Class R3, SIMPLE Class |
MainStay Conservative ETF Allocation Fund | Class A, Class C, Class I, Class R3, SIMPLE Class |
MainStay Moderate ETF Allocation Fund | Class A, Class C, Class I, Class R3, SIMPLE Class |
MainStay Growth ETF Allocation Fund | Class A, Class C, Class I, Class R3, SIMPLE Class |
MainStay Equity ETF Allocation Fund | Class A, Class C, Class I, Class R3, SIMPLE Class |
1. | For each ETF Allocation Fund, Investor Class and Class R6 shares were registered for sale as of June 30, 2020, but as of October 31, 2020 were not yet offered for sale. |
• | 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 each ETF Allocation Fund's own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
74 | Mainstay ETF Asset Allocation Funds |
Fund | Class A | Class C | Class I | Class R3 | SIMPLE Class |
MainStay Defensive ETF Allocation Fund | 0.80% | 1.55% | 0.55% | 1.15% | 1.05% |
MainStay Conservative ETF Allocation Fund | 0.80 | 1.55 | 0.55 | 1.15 | 1.05 |
MainStay Moderate ETF Allocation Fund | 0.80 | 1.55 | 0.55 | 1.15 | 1.05 |
MainStay Growth ETF Allocation Fund | 0.80 | 1.55 | 0.55 | 1.15 | 1.05 |
MainStay Equity ETF Allocation Fund | 0.80 | 1.55 | 0.55 | 1.15 | 1.05 |
Fund | Total |
MainStay Defensive ETF Allocation Fund | $(46,575) |
MainStay Conservative ETF Allocation Fund | (44,979) |
MainStay Moderate ETF Allocation Fund | (41,661) |
MainStay Growth ETF Allocation Fund | (44,934) |
MainStay Equity ETF Allocation Fund | (46,639) |
MainStay Defensive ETF Allocation Fund | |
Class A | $ 3,772 |
MainStay Conservative ETF Allocation Fund | |
Class A | $ 5,554 |
MainStay Moderate ETF Allocation Fund | |
Class A | $ 9,669 |
76 | Mainstay ETF Asset Allocation Funds |
MainStay Growth ETF Allocation Fund | |
Class A | $ 6,272 |
MainStay Equity ETF Allocation Fund | |
Class A | $ 2,351 |
MainStay Moderate ETF Allocation Fund | |
Class A | $ 9 |
Class C | 65 |
MainStay Growth ETF Allocation Fund | |
Class A | $ 1,677 |
MainStay Defensive ETF Allocation Fund | Expense | Waived |
Class A | $ 1,679 | $ — |
Class C | 118 | — |
Class I | 1,322 | — |
Class R3 | 17 | — |
SIMPLE Class | 9 | — |
MainStay Conservative ETF Allocation Fund | Expense | Waived |
Class A | $ 3,802 | $ — |
Class C | 109 | — |
Class I | 1,340 | — |
Class R3 | 17 | — |
SIMPLE Class | 8 | — |
MainStay Moderate ETF Allocation Fund | Expense | Waived |
Class A | $ 8,253 | $ — |
Class C | 68 | — |
Class I | 1,357 | — |
Class R3 | 20 | — |
SIMPLE Class | 9 | — |
MainStay Growth ETF Allocation Fund | Expense | Waived |
Class A | $ 3,842 | $ — |
Class C | 20 | — |
Class I | 1,379 | — |
Class R3 | 84 | — |
SIMPLE Class | 9 | — |
MainStay Equity ETF Allocation Fund | Expense | Waived |
Class A | $ 1,550 | $ — |
Class C | 27 | — |
Class I | 1,394 | — |
Class R3 | 81 | — |
SIMPLE Class | 8 | — |
MainStay Defensive ETF Allocation Fund | ||
Class A | $ 25,150 | 0.4% |
Class C | 25,125 | 11.3 |
Class I | 1,936,550 | 100.0 |
Class R3 | 25,125 | 100.0 |
SIMPLE Class | 24,545 | 100.0 |
MainStay Conservative ETF Allocation Fund | ||
Class A | $ 25,425 | 0.2% |
Class C | 25,400 | 10.8 |
Class I | 1,959,650 | 100.0 |
Class R3 | 25,425 | 100.0 |
SIMPLE Class | 24,332 | 99.8 |
MainStay Moderate ETF Allocation Fund | ||
Class A | $ 25,750 | 0.1% |
Class C | 25,700 | 13.2 |
Class I | 1,984,675 | 99.4 |
Class R3 | 25,725 | 62.0 |
SIMPLE Class | 24,156 | 55.6 |
MainStay Growth ETF Allocation Fund | ||
Class A | $ 26,075 | 0.3% |
Class C | 26,000 | 82.6 |
Class I | 2,009,700 | 99.7 |
Class R3 | 26,025 | 20.3 |
SIMPLE Class | 23,987 | 36.4 |
MainStay Equity ETF Allocation Fund | ||
Class A | $ 26,400 | 0.6% |
Class C | 26,325 | 27.6 |
Class I | 2,034,725 | 100.0 |
Class R3 | 26,375 | 12.3 |
SIMPLE Class | 23,804 | 88.2 |
MainStay Defensive ETF Allocation Fund | ||||
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |
Investments | $7,873,384 | $2,796 | $(74,957) | $(72,161) |
MainStay Conservative ETF Allocation Fund | ||||
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |
Investments | $13,239,139 | $529 | $(157,469) | $(156,940) |
MainStay Moderate ETF Allocation Fund | ||||
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |
Investments | $25,075,960 | $5,473 | $(296,886) | $(291,413) |
MainStay Growth ETF Allocation Fund | ||||
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |
Investments | $11,908,466 | $71,166 | $(90,828) | $(19,662) |
MainStay Equity ETF Allocation Fund | ||||
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |
Investments | $6,898,284 | $27,617 | $(60,137) | $(32,520) |
78 | Mainstay ETF Asset Allocation Funds |
Other | ||
Fund | Purchases | Sales |
MainStay Defensive ETF Allocation Fund | $ 8,301 | $ 424 |
MainStay Conservative ETF Allocation Fund | 13,982 | 760 |
MainStay Moderate ETF Allocation Fund | 26,545 | 1,498 |
MainStay Growth ETF Allocation Fund | 12,975 | 1,079 |
MainStay Equity ETF Allocation Fund | 7,262 | 373 |
Class A | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 603,319 | $6,153,318 |
Shares issued to shareholders in reinvestment of distributions | 697 | 7,083 |
Shares redeemed | (38,893) | (395,949) |
Net increase (decrease) | 565,123 | $5,764,452 |
Class C | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 32,717 | $ 330,813 |
Shares issued to shareholders in reinvestment of distributions | 1 | 13 |
Shares redeemed | (10,514) | (107,608) |
Net increase (decrease) | 22,204 | $ 223,218 |
Class I | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 192,500 | $1,925,076 |
Net increase (decrease) | 192,500 | $1,925,076 |
Class R3 | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 2,500 | $ 25,001 |
Net increase (decrease) | 2,500 | $ 25,001 |
SIMPLE Class | Shares | Amount |
Period ended October 31, 2020 (b): | ||
Shares sold | 2,436 | $ 25,000 |
Shares issued to shareholders in reinvestment of distributions | 4 | 33 |
Net increase (decrease) | 2,440 | $ 25,033 |
(a) | The inception date of the class was June 30, 2020. |
(b) | The inception date of the class was August 31, 2020. |
Class A | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 1,137,463 | $11,743,463 |
Shares issued to shareholders in reinvestment of distributions | 1,308 | 13,484 |
Shares redeemed | (44,203) | (458,286) |
Net increase (decrease) | 1,094,568 | $11,298,661 |
Class C | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 23,109 | $ 236,471 |
Net increase (decrease) | 23,109 | $ 236,471 |
Class I | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 192,500 | $ 1,925,000 |
Net increase (decrease) | 192,500 | $ 1,925,000 |
Class R3 | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 2,500 | $ 25,000 |
Net increase (decrease) | 2,500 | $ 25,000 |
SIMPLE Class | Shares | Amount |
Period ended October 31, 2020 (b): | ||
Shares sold | 2,396 | $ 25,054 |
Shares issued to shareholders in reinvestment of distributions | 2 | 25 |
Net increase (decrease) | 2,398 | $ 25,079 |
(a) | The inception date of the class was June 30, 2020. |
(b) | The inception date of the class was August 31, 2020. |
Class A | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 2,308,511 | $24,078,620 |
Shares redeemed | (92,445) | (965,167) |
Net increase (decrease) | 2,216,066 | $23,113,453 |
Class C | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 19,652 | $ 203,809 |
Shares redeemed | (706) | (7,423) |
Net increase (decrease) | 18,946 | $ 196,386 |
Class I | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 193,547 | $ 1,936,000 |
Net increase (decrease) | 193,547 | $ 1,936,000 |
Class R3 | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 4,031 | $ 41,164 |
Net increase (decrease) | 4,031 | $ 41,164 |
SIMPLE Class | Shares | Amount |
Period ended October 31, 2020 (b): | ||
Shares sold | 4,218 | $ 44,536 |
Net increase (decrease) | 4,218 | $ 44,536 |
(a) | The inception date of the class was June 30, 2020. |
(b) | The inception date of the class was August 31, 2020. |
Class A | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 991,898 | $10,447,188 |
Shares redeemed | (53,649) | (579,361) |
Net increase (decrease) | 938,249 | $ 9,867,827 |
Class C | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 3,027 | $ 30,671 |
Net increase (decrease) | 3,027 | $ 30,671 |
Class I | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 193,850 | $ 1,939,316 |
Shares redeemed | (675) | (7,222) |
Net increase (decrease) | 193,175 | $ 1,932,094 |
Class R3 | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 12,294 | $ 125,001 |
Net increase (decrease) | 12,294 | $ 125,001 |
SIMPLE Class | Shares | Amount |
Period ended October 31, 2020 (b): | ||
Shares sold | 6,319 | $ 67,237 |
Net increase (decrease) | 6,319 | $ 67,237 |
(a) | The inception date of the class was June 30, 2020. |
(b) | The inception date of the class was August 31, 2020. |
Class A | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 461,509 | $4,992,241 |
Shares redeemed | (7,064) | (75,656) |
Net increase (decrease) | 454,445 | $4,916,585 |
Class C | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 9,057 | $ 94,386 |
Net increase (decrease) | 9,057 | $ 94,386 |
Class I | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 192,500 | $1,925,000 |
Net increase (decrease) | 192,500 | $1,925,000 |
Class R3 | Shares | Amount |
Period ended October 31, 2020 (a): | ||
Shares sold | 20,376 | $ 227,000 |
Net increase (decrease) | 20,376 | $ 227,000 |
80 | Mainstay ETF Asset Allocation Funds |
SIMPLE Class | Shares | Amount |
Period ended October 31, 2020 (b): | ||
Shares sold | 2,558 | $ 28,218 |
Net increase (decrease) | 2,558 | $ 28,218 |
(a) | The inception date of the class was June 30, 2020. |
(b) | The inception date of the class was August 31, 2020. |
82 | Mainstay ETF Asset Allocation Funds |
84 | Mainstay ETF Asset Allocation Funds |
86 | Mainstay ETF Asset Allocation Funds |
1. | Formerly known as MainStay Large Cap Growth Fund. |
2. | Formerly known as MainStay MacKay Infrastructure Bond Fund. |
3. | Formerly known as MainStay Indexed Bond Fund. |
4. | This Fund is registered for sale in AZ, CA, NV, OR, TX, UT and WA. Class A and Class I shares are registered for sale in MI. Class I and Class C2 shares are registered for sale in CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY. |
5. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY and VT. |
6. | Formerly known as MainStay Growth Allocation Fund. |
7. | Formerly known as MainStay Moderate Growth Allocation Fund. |
8. | An affiliate of New York Life Investment Management LLC. |
9. | JPMorgan Chase Bank, N.A., New York, New York is the custodian for the MainStay ETF Asset Allocation Funds and effective at the close of business on November 20, 2020, became the custodian for other MainStay Funds. The custodian for MainStay Cushing MLP Premier Fund is U.S. Bank National Association, Milwaukee, Wisconsin. |
1879610MS203-20 | MSAAETF10-12/20 |
MainStay MacKay Intermediate
Tax Free Bond Fund
Message from the President and Semiannual Report
Unaudited I October 31, 2020
Beginning on January 1, 2021, paper copies of each MainStay Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from MainStay Funds or from your financial intermediary. Instead, the reports will be made available on the MainStay Funds’ website. You will be notified by mail and provided with a website address to access the report each time a new report is posted to the website.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from MainStay Funds electronically by calling toll-free 800-624-6782, by sending an e-mail to MainStayShareholderServices@ nylim.com, or by contacting your financial intermediary.
You may elect to receive all future shareholder reports in paper form free of charge. If you hold shares of a MainStay Fund directly, you can inform MainStay Funds that you wish to receive paper copies of reports by calling toll-free 800-624-6782 or by sending an e-mail to MainStayShareholderServices@nylim.com. If you hold shares of a MainStay Fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper form will apply to all MainStay Funds in which you are invested and may apply to all funds held with your financial intermediary.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Although the global coronavirus pandemic continued to afflict populations and economies around the world, most broad U.S. stock and bond markets gained ground, rebounding from earlier pandemic-related declines to rise during the six-month reporting period ended October 31, 2020.
The backdrop for the reporting period was set in February and March 2020 as COVID-19 spread worldwide. Governments struggled to support overburdened health care systems by issuing “stay-at-home” orders and placing restrictions on nonessential activity. These responses slowed global economic activity, driving stock and bond indices sharply lower. Emergency monetary and fiscal measures promised economic relief, and by early April, market sentiment began to improve. Unemployment remained high, some sectors of the global economy remained depressed and many questions surrounding the pandemic had yet to be answered. Nevertheless, investors looked forward to a gradual lessening of restrictions on nonessential businesses, the possibility of additional stimulus and apparent progress in the development of a vaccine.
As the reporting period began on May 1, 2020, the S&P 500® Index, a widely regarded benchmark of U.S. equity market performance, had already recovered much of the ground it lost in February and March 2020. By late-August, the S&P 500® Index had reached new record levels. However, a resurgence of coronavirus cases in many parts of the country and uncertainties related to the November 3, 2020, U.S. election caused the rally to falter as the reporting period drew to a close.
Nevertheless, for the reporting period as a whole, U.S. equity indices generally produced strong gains. Returns proved most robust among small- to mid-cap stocks and growth-oriented stocks, while large-cap and value-oriented issues posted slightly milder gains. Within the S&P 500® Index, the consumer discretionary sector generated the strongest returns buoyed by better-than-expected levels of consumer spending. The materials, information technology, industrials and communication services sectors all outperformed the S&P 500® Index. The utilities, financials, consumer staples, health care and real estate sectors generated positive returns but lagged the Index. Only the energy sector ended the reporting period in negative
territory, experiencing sharp losses due to low petroleum prices and weak global demand. International equities rose, but tended to trail their U.S. counterparts due to weaker underlying economic growth and somewhat less aggressive monetary and fiscal stimulus. Emerging-market equities tracked the performance of U.S. equity markets more closely, led by relatively strong returns in Asian markets, including China and South Korea.
Risk-on conditions prevailed for fixed-income markets as well, favoring lower credit quality and longer duration securities. Corporate bonds generally gained ground, with high-yield securities tending to outperform investment-grade instruments. Similarly, among municipal bond issues, high-yield securities outperformed. Recognized safe havens, such as long-term U.S. government bonds, which had attracted risk-averse investors during the height of the market sell-off in early 2020, experienced declining prices. Emerging-market debt, on the other hand, outperformed most other bond types as investors overlooked risk in pursuit of higher return potential.
Although the ongoing pandemic continues to change the way that many of us work and live our lives, at New York Life Investments, we remain dedicated to providing you, as a MainStay investor, with products, information and services to help you to navigate today’s rapidly changing investment environment. By taking appropriate steps to minimize community spread of COVID-19 within our organization and despite the challenges posed by the coronavirus pandemic, we continue to innovate with you in mind, introducing new suites of Funds and providing continuous insights into ever-evolving markets and investment strategies. Our goal is to give you the tools you need to build a resilient portfolio in the face of uncertain times.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Past performance is no guarantee of future results.
Not part of the Semiannual Report
Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at newyorklifeinvestments.com. 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 and other factors, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-624-6782 or visit newyorklifeinvestments.com.
Average Annual Total Returns for the Period-Ended October 31, 2020
Class | Sales Charge | Inception Date | Six Months | One Year | Since Inception | Gross Expense Ratio2 | ||||||||||||||||||
Class A Shares | Maximum 4.5% Initial Sales Charge | With sales charges Excluding sales charges | 6/28/2019 | | 1.02 5.78 | %
| | –2.18 2.43 | %
| | –0.33 3.14 | %
| | 1.12 1.12 | %
| |||||||||
Investor Class Shares3 | Maximum 4% Initial Sales Charge | With sales charges Excluding sales charges | 6/28/2019 | | 1.03 5.79 |
| | –2.24 2.37 |
| | –0.40 3.06 |
| | 1.13 1.13 |
| |||||||||
Class C Shares | Maximum 1% CDSC if Redeemed Within One Year of Purchase | With sales charges Excluding sales charges | 6/28/2019 | | 4.67 5.67 |
| | 1.12 2.12 |
| | 2.81 2.81 |
| | 1.38 1.38 |
| |||||||||
Class I Shares | No Sales Charge | 6/28/2019 | 6.01 | 2.68 | 3.39 | 0.87 | ||||||||||||||||||
Class R6 Shares | No Sales Charge | 6/28/2019 | 6.01 | 2.69 | 3.41 | 0.86 |
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, if any, 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 may reflect certain fee waivers and/or expense limitations, without which total returns may have |
been lower. For more information on share classes and current fee waivers and/or expense limitations (if any), please refer to the Notes to Financial Statements. |
2. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
3. | Prior to June 30, 2020, the maximum initial sales charge for Investor Class shares was 4.5%, which is reflected in the average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
5 |
Benchmark Performance | Six Months | One Year | Since Inception | |||||||||
Bloomberg Barclays Municipal 1-15 Yr Blend Index4 | 4.35 | % | 3.66 | % | 3.79 | % | ||||||
Morningstar Municipal National Intermediate Category Average5 | 5.35 | 2.79 | 3.21 |
4. | The Bloomberg Barclays Municipal 1-15 Yr Blend Index is the Fund’s primary broad-based securities-market index for comparison purposes. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly into an index. |
5. | The Morningstar Municipal National Intermediate Category Average is representative of funds that invest in bonds issued by various state and local |
governments to fund public projects. The income from these bonds is generally free from federal taxes. To lower risk, these portfolios spread their assets across many states and sectors. These portfolios have durations of 4.0 to 6.0 years (or average maturities of five to 12 years). Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.
6 | MainStay MacKay Intermediate Tax Free Bond Fund |
Cost in Dollars of a $1,000 Investment in MainStay MacKay Intermediate 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, 2020, to October 31, 2020, 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, 2020, to October 31, 2020.
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, 2020. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Share Class | Beginning Account Value 5/1/20 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/20 | Expenses Paid During Period1 | Net Expense Ratio During Period2 | ||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,057.80 | $ | 3.73 | $ | 1,021.58 | $ | 3.67 | 0.72% | |||||||||||
Investor Class Shares | $ | 1,000.00 | $ | 1,057.90 | $ | 4.72 | $ | 1,020.62 | $ | 4.63 | 0.91% | |||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,056.70 | $ | 6.01 | $ | 1,019.36 | $ | 5.90 | 1.16% | |||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,060.10 | $ | 2.60 | $ | 1,022.68 | $ | 2.55 | 0.50% | |||||||||||
Class R6 Shares | $ | 1,000.00 | $ | 1,060.10 | $ | 2.60 | $ | 1,022.68 | $ | 2.55 | 0.50% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. |
2. | Expenses are equal to the Fund’s annualized expense ratio to reflect the six-month period. |
7 |
Portfolio Composition as of October 31, 2020 (Unaudited)
Illinois | 14.6 | % | ||
California | 8.6 | |||
New York | 8.6 | |||
Pennsylvania | 5.2 | |||
Florida | 3.9 | |||
Connecticut | 3.8 | |||
Georgia | 3.8 | |||
New Jersey | 3.7 | |||
Utah | 3.7 | |||
Washington | 3.4 | |||
Michigan | 2.8 | |||
Minnesota | 2.6 | |||
Nevada | 2.5 | |||
Guam | 2.3 | |||
Texas | 2.3 | |||
Louisiana | 1.8 | |||
Colorado | 1.7 | |||
Mississippi | 1.7 | |||
Nebraska | 1.7 | |||
New Mexico | 1.7 |
Arizona | 1.6 | % | ||
Alabama | 1.5 | |||
Idaho | 1.5 | |||
Missouri | 1.4 | |||
Indiana | 1.3 | |||
Maryland | 1.0 | |||
Puerto Rico | 1.0 | |||
Kentucky | 0.9 | |||
New Hampshire | 0.9 | |||
North Carolina | 0.9 | |||
Ohio | 0.9 | |||
Wisconsin | 0.8 | |||
Kansas | 0.7 | |||
Alaska | 0.5 | |||
South Carolina | 0.5 | |||
West Virginia | 0.5 | |||
Virginia | 0.2 | |||
Other Assets, Less Liabilities | 3.5 | |||
|
| |||
100.0 | % | |||
|
|
See Portfolio of Investments beginning on page 11 for specific holdings within these categories. The Fund’s holdings are subject to change.
Top Ten Holdings as of October 31, 2020 (excluding short-term investment) (Unaudited)
1. | State of Minnesota, Unlimited General Obligation, 5.00%, due 10/1/29 |
2. | Shenandoah Valley School District, Limited General Obligation, 4.00%, due 8/1/27 |
3. | Village of Mundelein IL, Unlimited General Obligation, 4.00%, due 12/15/25–12/15/39 |
4. | Cook County Township High School District No. 220 Reavis, Unlimited General Obligation, 5.00%, due 12/1/29 |
5. | California Municipal Finance Authority, CHF Davis I LLC, Revenue Bonds, 5.00%, due 5/15/36 |
6. | Etowah Water & Sewer Authority, Revenue Bonds, 4.00%, due 3/1/34 |
7. | City of Shreveport LA, Water & Sewer, Revenue Bonds, 5.00%, due 12/1/32 |
8. | Washington State Convention Center Public Facilities District, Lodging Tax, Revenue Bonds, 5.00%, due 7/1/37 |
9. | Mississippi Hospital Equipment & Facilities Authority, Forrest County General Hospital Refunding Project, Revenue Bonds, 5.00%, due 1/1/34 |
10. | Great Lakes Water Authority, Water Supply System, Revenue Bonds, 5.00%, due 7/1/28 |
8 | MainStay MacKay Intermediate 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, Frances Lewis and John Lawlor of MacKay Shields LLC, the Fund’s Subadvisor.
How did MainStay MacKay Intermediate Tax Free Bond Fund perform relative to its benchmark and peer group during the six months ended October 31, 2020?
For the six months ended October 31, 2020, Class I shares of MainStay MacKay Intermediate Tax Free Bond Fund returned 6.01%, outperforming the 4.35% return of the Fund’s primary benchmark, the Bloomberg Barclays Municipal Index 1–15 Year Blend. Over the same period, Class I shares also outperformed the 5.35% return of the Morningstar Muni National Intermediate Category Average.1
What factors affected the Fund’s relative performance during the reporting period?
During the reporting period, the Fund outperformed the Bloomberg Barclays Municipal Index 1–15 Year Blend primarily due to advantageous credit selection and yield curve2 positioning. Specifically, security selection within the local general obligation and education sectors enhanced relative performance, although an underweight allocation to the appropriation and state general obligation sectors detracted. From a credit quality perspective, selection among bonds rated AA and A—most of them insured—bolstered returns, while underweight exposure to bonds rated AAA detracted.3
During the reporting period, were there any market events that materially impacted the Fund’s performance or liquidity?
The COVID-19 pandemic continued to impact the municipal market throughout the reporting period. After the initial decline in prices and widening in credit spreads4 that affected the entire municipal market in March 2020, medium- to higher-quality bonds recovered relatively quickly. However, due to the economic impact of the pandemic, more credit-sensitive bonds in the municipal market were slower to bounce back. For those issuers and sectors considered to have direct ‘front line’ exposure to the economic shutdown, performance was mixed as the market sought to delineate the severity of the impact on an issuer-by-issuer basis. In this environment, more credit-
sensitive bonds underperformed. By contrast, insured bonds performed relatively well due to their perceived credit attributes, thereby bolstering the Fund’s returns relative to the Bloomberg Barclays Municipal Index 1–15 Year Blend.
During the reporting period, how was the Fund’s performance materially affected by investments in derivatives?
During the reporting period, the Fund used U.S. Treasury futures to maintain a neutral duration relative to the Bloomberg Barclays Municipal Index 1–15 Year Blend. This hedge did not have a material impact on the Fund’s relative performance.
What was the Fund’s duration5 strategy during the reporting period?
The Fund targeted a neutral duration relative to the benchmark. As of October 31, 2020, the Fund’s modified duration to worst6 was 5.32 years while the benchmark’s modified duration to worst was 4.24 years.
During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?
During the reporting period, bonds in the local general obligation and education sectors made positive contributions to the Fund’s performance relative to the Bloomberg Barclays Municipal Bond 1–15 Year Blend. (Contributions take weightings and total returns into account.) Conversely, investments in the appropriation-backed and state general obligation sectors detracted from relative returns. Among states, the Fund’s relatively overweight exposure to bonds from Illinois contributed positively to performance, while holdings of bonds from New York, New Jersey and Texas weakened relative returns. From a credit perspective, selection among bonds rated AA and A enhanced returns, while underweight exposure to bonds rated AAA weighed on those results. Lastly, performance benefited from selection among bonds maturing in seven or more years.
1. | See page 5 for other share class returns, which may be higher or lower than Class I share returns. See page 6 for more information on benchmark and peer group returns. |
2. | 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. |
3. | An obligation rated ‘AAA’ has the highest rating assigned by Standard & Poor’s (“S&P”), and in the opinion of S&P, the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. An obligation rated ‘AA’ by 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. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund. |
4. | 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. |
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 |
What were some of the Fund’s largest purchases and sales during the reporting period?
The Fund remained focused on diversification and liquidity, so no individual transaction was considered significant.
How did the Fund’s sector weighting change during the reporting period?
The Fund made no significant sector weighting changes during the reporting period. Minor changes included increased exposure to the transportation sector and decreased exposure to the housing sector. Among ratings, the Fund increased its exposure to credits rated BBB,7 and decreased its exposure to credits rated AAA. Across states, the Fund increased its exposure to bonds from New York and Illinois, and trimmed its exposure to bonds from Texas, Massachusetts and New Mexico.
How was the Fund positioned at the end of the reporting period?
As of October 31, 2020, the Fund held overweight positions relative to the Bloomberg Barclays Municipal Index 1–15 Year Blend in the local general obligation and other revenue sectors, and underweight positions in the state general obligation and prerefunded/ETM (escrowed to maturity) sectors. Across states, the Fund held overweight exposure to bonds from Illinois and Utah, and was underweight in bonds from California and Texas. Regarding credit quality, the Fund held modest exposure to bonds rated below investment grade and underweight to bonds rated AAA. Finally, the Fund held greater-than-benchmark weights at both the short end of the maturity spectrum and beyond seven years, while holding less-than-benchmark exposure to bonds maturing between three and seven years.
7. | An obligation rated ‘BBB’ by S&P is deemed by S&P to exhibit adequate protection parameters. In the opinion of S&P, however, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund. |
The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.
10 | MainStay MacKay Intermediate Tax Free Bond Fund |
Portfolio of Investments October 31, 2020 (Unaudited)
Principal Amount | Value | |||||||
Municipal Bonds 96.5% † Long-Term Municipal Bonds 96.5% |
| |||||||
Alabama 1.5% | ||||||||
Birmingham Airport Authority, Revenue Bonds Insured: BAM | $ | 500,000 | $ | 645,110 | ||||
Chilton County Health Care Authority, Chilton County Hospital Project, Revenue Bonds | 200,000 | 234,916 | ||||||
|
| |||||||
880,026 | ||||||||
|
| |||||||
Alaska 0.5% | ||||||||
Alaska Industrial Development & Export Authority, Interior Gas Utility Project, Revenue Bonds | 250,000 | 285,468 | ||||||
|
| |||||||
Arizona 1.6% | ||||||||
Arizona Industrial Development Authority, Equitable School Revolving Fund, Revenue Bonds | ||||||||
Series A | 250,000 | 289,635 | ||||||
Series A | 250,000 | 281,998 | ||||||
Series A | 340,000 | 409,302 | ||||||
|
| |||||||
980,935 | ||||||||
|
| |||||||
California 8.6% | ||||||||
ABAG Finance Authority for Nonprofit Corp., Windemere Ranch Infrastructure Financing Program, Special Tax | 70,000 | 85,751 | ||||||
California County Tobacco Securitization Agency, Revenue Bonds | 250,000 | 330,668 | ||||||
California Municipal Finance Authority, CHF Davis I LLC, Revenue Bonds | 1,000,000 | 1,200,520 | ||||||
California Municipal Finance Authority, UCR North District Phase 1 Student Housing Project, Revenue Bonds | 500,000 | 597,340 | ||||||
City of Los Angeles, Department of Airports, Los Angeles International Airport, Revenue Bonds | 650,000 | 806,780 |
Principal Amount | Value | |||||||
California (continued) | ||||||||
Ripon Redevelopment Agency Successor Agency, Tax Allocation | $ | 550,000 | $ | 660,181 | ||||
Roseville Joint Union High School District, School Financing Project, Certificate of Participation | 500,000 | 500,400 | ||||||
South Bay Union School District / San Diego County, Unlimited General Obligation | 1,000,000 | 989,950 | ||||||
|
| |||||||
5,171,590 | ||||||||
|
| |||||||
Colorado 1.7% | ||||||||
Colorado Health Facilities Authority, CommonSpirit Health Obligated Group, Revenue Bonds | ||||||||
5.00%, due 8/1/32 | 110,000 | 136,245 | ||||||
Series A-2 | 90,000 | 110,893 | ||||||
Series A-1 | 75,000 | 92,137 | ||||||
Series A-1 | 105,000 | 128,523 | ||||||
Crystal Valley Metropolitan District No. 2, Limited General Obligation | 500,000 | 585,580 | ||||||
|
| |||||||
1,053,378 | ||||||||
|
| |||||||
Connecticut 3.8% | ||||||||
City of Waterbury CT, Unlimited General Obligation | 500,000 | 649,555 | ||||||
State of Connecticut, Special Tax, Revenue Bonds | 500,000 | 580,245 | ||||||
State of Connecticut, Unlimited General Obligation | 500,000 | 629,950 | ||||||
University of Connecticut, Revenue Bonds | 385,000 | 460,418 | ||||||
|
| |||||||
2,320,168 | ||||||||
|
|
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Florida 3.9% | ||||||||
County of Osceola FL, Transportation, Revenue Bonds | $ | 350,000 | $ | 428,691 | ||||
Harbor Bay Community Development District, Special Assessment | ||||||||
Series A-1 | 445,000 | 451,025 | ||||||
Series A-2 | 295,000 | 299,012 | ||||||
Pinellas County Industrial Development Authority, Foundation for Global Understanding Project, Revenue Bonds | 600,000 | 664,548 | ||||||
State of Florida, State Board Of Education, Public Education Capital Outlay, Unlimited General Obligation | 500,000 | 526,990 | ||||||
|
| |||||||
2,370,266 | ||||||||
|
| |||||||
Georgia 3.8% | ||||||||
Brookhaven Development Authority, Children’s Healthcare of Atlanta, Revenue Bonds | 500,000 | 538,735 | ||||||
Etowah Water & Sewer Authority, Revenue Bonds | 1,000,000 | 1,157,750 | ||||||
Municipal Electric Authority of Georgia, Revenue Bonds | 500,000 | 610,165 | ||||||
|
| |||||||
2,306,650 | ||||||||
|
| |||||||
Guam 2.3% |
| |||||||
Guam Government, Business Privilege Tax, Revenue Bonds | 365,000 | 410,939 | ||||||
Guam Government, Waterworks Authority, Revenue Bonds | 500,000 | 564,695 | ||||||
Guam Power Authority, Revenue Bonds | 385,000 | 403,299 | ||||||
|
| |||||||
1,378,933 | ||||||||
|
|
Principal Amount | Value | |||||||
Idaho 1.5% |
| |||||||
Idaho Health Facilities Authority, Ada County Coroner Project, Revenue Bonds | $ | 400,000 | $ | 465,480 | ||||
Idaho Health Facilities Authority, Madison Memorial Hospital, Revenue Bonds | 370,000 | 411,181 | ||||||
|
| |||||||
876,661 | ||||||||
|
| |||||||
Illinois 14.6% |
| |||||||
Chicago O’Hare International Airport, Revenue Bonds | ||||||||
Series C | 200,000 | 237,920 | ||||||
Series C | 250,000 | 286,943 | ||||||
Chicago Park District, Limited General Obligation | 500,000 | 538,855 | ||||||
Chicago Park District, Limited Tax, Limited General Obligation | 500,000 | 556,300 | ||||||
City of Chicago IL, Unlimited General Obligation | 500,000 | 500,865 | ||||||
City of Chicago IL, Wastewater Transmission, Revenue Bonds | 500,000 | 557,620 | ||||||
City of Monmouth IL, Unlimited General Obligation | 300,000 | 316,107 | ||||||
Cook County Township High School District No. 220 Reavis, Unlimited General Obligation | 1,000,000 | 1,272,340 | ||||||
Kankakee County School District No. 111, Limited General Obligation | 265,000 | 282,077 | ||||||
Peoria County Community Unit School District No. 323, Unlimited General Obligation | 250,000 | 296,950 | ||||||
Regional Transportation Authority, Revenue Bonds | 160,000 | 186,822 |
12 | MainStay MacKay Intermediate 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Illinois (continued) |
| |||||||
Sales Tax Securitization Corp., Revenue Bonds | $ | 500,000 | $ | 619,970 | ||||
Sangamon County School District No. 186 Springfield, Unlimited General Obligation | 555,000 | 711,138 | ||||||
Sangamon Logan & Menard Counties Community Unit School District No. 15 Williamsville, Unlimited General Obligation | 250,000 | 309,737 | ||||||
Southwestern Illinois Development Authority, Revenue Bonds | 250,000 | 298,002 | ||||||
State of Illinois, Unlimited General Obligation | 500,000 | 551,740 | ||||||
Village of Mundelein IL, Unlimited General Obligation | ||||||||
Insured: AGM | 210,000 | 244,348 | ||||||
Insured: AGM | 345,000 | 408,497 | ||||||
Insured: AGM | 300,000 | 361,335 | ||||||
Insured: AGM | 250,000 | 290,638 | ||||||
|
| |||||||
8,828,204 | ||||||||
|
| |||||||
Indiana 1.3% |
| |||||||
City of Fort Wayne IN, Waterworks Utility Revenue, Revenue Bonds | 1,275,000 | 810,364 | ||||||
|
| |||||||
Kansas 0.7% | ||||||||
Wichita Health Care Facilities, Presbyterian Manors Obligated Group, Revenue Bonds | 450,000 | 450,536 | ||||||
|
| |||||||
Kentucky 0.9% | ||||||||
Kentucky Economic Development Finance Authority, Revenue Bonds | 500,000 | 554,115 | ||||||
|
| |||||||
Louisiana 1.8% | ||||||||
City of Shreveport LA, Water & Sewer, Revenue Bonds | 920,000 | 1,113,007 | ||||||
|
|
Principal Amount | Value | |||||||
Maryland 1.0% | ||||||||
County of Frederick Maryland, Urbana Community Development Authority, Special Tax | $ | 500,000 | $ | 582,000 | ||||
|
| |||||||
Michigan 2.8% | ||||||||
Great Lakes Water Authority, Water Supply System, Revenue Bonds | 800,000 | 1,011,776 | ||||||
Michigan Finance Authority, Local Government Loan Program, Revenue Bonds | 100,000 | 109,035 | ||||||
Michigan Finance Authority, Revenue Bonds | 500,000 | 585,380 | ||||||
|
| |||||||
1,706,191 | ||||||||
|
| |||||||
Minnesota 2.6% | ||||||||
State of Minnesota, Unlimited General Obligation | 1,220,000 | 1,559,794 | ||||||
|
| |||||||
Mississippi 1.7% | ||||||||
Mississippi Hospital Equipment & Facilities Authority, Forrest County General Hospital Refunding Project, Revenue Bonds | 810,000 | 1,015,254 | ||||||
|
| |||||||
Missouri 1.4% | ||||||||
St. Louis Airport Revenue, St. Louis Lambert International Airport, Revenue Bonds | 725,000 | 860,763 | ||||||
|
| |||||||
Nebraska 1.7% | ||||||||
Central Plains Energy, Project No. 4, Revenue Bonds | 900,000 | 1,008,522 | ||||||
|
| |||||||
Nevada 2.5% | ||||||||
Clark County School District, Limited General Obligation | 500,000 | 639,900 | ||||||
Las Vegas Convention & Visitors Authority, Convention Center Expansion, Revenue Bonds | 250,000 | 287,520 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Nevada (continued) | ||||||||
Sparks Tourism Improvement District No. 1, Revenue Bonds | $ | 600,000 | $ | 585,840 | ||||
|
| |||||||
1,513,260 | ||||||||
|
| |||||||
New Hampshire 0.9% |
| |||||||
New Hampshire Business Finance Authority, Pennichuck Water Works, Inc. Project, Revenue Bonds | 500,000 | 548,740 | ||||||
|
| |||||||
New Jersey 3.7% | ||||||||
City of Newark NJ, Unlimited General Obligation | 250,000 | 312,442 | ||||||
Essex County Improvement Authority, North Star Academy Charter School, Revenue Bonds | 250,000 | 283,760 | ||||||
New Jersey Economic Development Authority, School Facilities Construction, Revenue Bonds | 750,000 | 753,900 | ||||||
Passaic Valley Sewerage Commission, Revenue Bonds | 250,000 | 276,450 | ||||||
State of New Jersey, Unlimited General Obligation | 500,000 | 595,510 | ||||||
|
| |||||||
2,222,062 | ||||||||
|
| |||||||
New Mexico 1.7% | ||||||||
New Mexico Hospital Equipment Loan Council, First Mortgage Entrance Fee, La Vida Expansion Project, Revenue Bonds | 750,000 | 730,455 | ||||||
Santa Fe Retirement Facilities Revenue, El Castillo Retirement Project, Revenue Bonds | 300,000 | 291,429 | ||||||
|
| |||||||
1,021,884 | ||||||||
|
| |||||||
New York 8.6% | ||||||||
Albany Capital Resource Corp., Albany Leadership Charter School for Girls Project, Revenue Bonds | 445,000 | 469,697 |
Principal Amount | Value | |||||||
New York (continued) | ||||||||
Metropolitan Transportation Authority, Green Bond, Revenue Bonds | $ | 500,000 | $ | 534,405 | ||||
Metropolitan Transportation Authority, Transportation, Revenue Bonds | ||||||||
Series C | 250,000 | 256,328 | ||||||
Series C | 500,000 | 512,775 | ||||||
Monroe County Industrial Development Corp., Rochester Regional Health Project, Revenue Bonds | 375,000 | 418,804 | ||||||
New York Liberty Development Corp., Bank of America Tower at One Bryant Park Project, Revenue Bonds | 500,000 | 490,680 | ||||||
New York State Thruway Authority, Revenue Bonds | 250,000 | 308,087 | ||||||
New York State Urban Development Corp., Revenue Bonds | 750,000 | 957,690 | ||||||
Niagara Falls City School District, Unlimited General Obligation | 500,000 | 590,935 | ||||||
Port Authority of New York & New Jersey, Consolidated 211th, Revenue Bonds | 400,000 | 441,704 | ||||||
Port Authority of New York & New Jersey, Revenue Bonds (a) | ||||||||
Series 197 | 100,000 | 117,460 | ||||||
Series 197 | 100,000 | 117,211 | ||||||
|
| |||||||
5,215,776 | ||||||||
|
| |||||||
North Carolina 0.9% |
| |||||||
North Carolina Turnpike Authority, Revenue Bonds | 500,000 | 565,400 | ||||||
|
| |||||||
Ohio 0.9% | ||||||||
Ohio Air Quality Development Authority, Ohio Valley Electric Corp. Project, Revenue Bonds | 250,000 | 252,872 |
14 | MainStay MacKay Intermediate 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Ohio (continued) | ||||||||
West Carrollton City School District, Unlimited General Obligation | $ | 250,000 | $ | 260,055 | ||||
|
| |||||||
512,927 | ||||||||
|
| |||||||
Pennsylvania 5.2% | ||||||||
City of Philadelphia PA, Airport, Revenue Bonds | 500,000 | 572,875 | ||||||
North Pocono School District, Limited General Obligation | 500,000 | 587,075 | ||||||
Shenandoah Valley School District, Limited General Obligation | 1,185,000 | 1,410,209 | ||||||
Stroudsburg Area School District, Limited General Obligation | 250,000 | 291,240 | ||||||
Warrior Run School District, Montour Northumberland Union County, Limited General Obligation | 255,000 | 279,445 | ||||||
|
| |||||||
3,140,844 | ||||||||
|
| |||||||
Puerto Rico 1.0% | ||||||||
Commonwealth of Puerto Rico, Public Improvement, Unlimited General Obligation | 100,000 | 104,760 | ||||||
Puerto Rico Sales Tax Financing Corp., Revenue Bonds | 500,000 | 523,500 | ||||||
|
| |||||||
628,260 | ||||||||
|
| |||||||
South Carolina 0.5% | ||||||||
South Carolina Public Service Authority, Revenue Bonds | 250,000 | 287,770 | ||||||
|
| |||||||
Texas 2.3% | ||||||||
City of Irving TX, Hotel Occupancy Tax, Revenue Bonds | 110,000 | 117,512 |
Principal Amount | Value | |||||||
Texas (continued) | ||||||||
City of San Antonio Electric & Gas Systems, Revenue Bonds | $ | 250,000 | $ | 288,233 | ||||
Houston Hotel Occupancy Tax & Special Revenue, Convention & Entertainment Facilities Department, Revenue Bonds | 365,000 | 407,453 | ||||||
Texas Private Activity Bond Surface Transportation Corp., LBJ Infrastructure Group LLC, Revenue Bonds | 500,000 | 577,935 | ||||||
|
| |||||||
1,391,133 | ||||||||
|
| |||||||
Utah 3.7% | ||||||||
Utah Charter School Finance Authority, North Star Academy, Revenue Bonds | 100,000 | 119,239 | ||||||
Utah Charter School Finance Authority, Spectrum Academy Project, Revenue Bonds Insured: UT CSCE | 250,000 | 285,945 | ||||||
Utah Charter School Finance Authority, Summit Academy, Inc., Revenue Bonds | ||||||||
Series A, Insured: UT CSCE | 135,000 | 158,547 | ||||||
Series A, Insured: UT CSCE | 200,000 | 250,678 | ||||||
Series A, Insured: UT CSCE | 185,000 | 234,909 | ||||||
Utah Infrastructure Agency, Revenue Bonds | 460,000 | 528,006 | ||||||
Utah Infrastructure Agency, Telecommunication, Revenue Bonds | 250,000 | 289,043 | ||||||
Utah Transit Authority, Sales Tax, Revenue Bonds | 300,000 | 379,560 | ||||||
|
| |||||||
2,245,927 | ||||||||
|
| |||||||
Virginia 0.2% | ||||||||
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue Bonds | 100,000 | 107,246 | ||||||
|
| |||||||
Washington 3.4% | ||||||||
Lewis County School District No. 226, Unlimited General Obligation | 390,000 | 450,684 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Washington (continued) | ||||||||
Washington State Convention Center Public Facilities District, Lodging Tax, Revenue Bonds | $ | 1,000,000 | $ | 1,111,940 | ||||
Washington State Housing Finance Commission, Transforming Age Projects, Revenue Bonds | 500,000 | 481,200 | ||||||
|
| |||||||
2,043,824 | ||||||||
|
| |||||||
West Virginia 0.5% | ||||||||
Morgantown Utility Board, Inc., Revenue Bonds | 250,000 | 297,405 | ||||||
|
|
Principal Amount | Value | |||||||
Wisconsin 0.8% | ||||||||
Wisconsin Health & Educational Facilities Authority, Marshfield Clinic Health System, Revenue Bonds | $ | 400,000 | $ | 507,812 | ||||
|
| |||||||
Total Investments | 96.5 | % | 58,363,095 | |||||
Other Assets, Less Liabilities | 3.5 | 2,129,086 | ||||||
Net Assets | 100.0 | % | $ | 60,492,181 |
† | Percentages indicated are based on Fund net assets. |
(a) | Interest on these securities was subject to alternative minimum tax. |
(b) | Floating rate—Rate shown was the rate in effect as of October 31, 2020. |
(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. |
Futures Contracts
As of October 31, 2020, the Portfolio held the following futures contracts1:
Type | Number of Contracts | Expiration Date | Value at Trade Date | Current Notional Amount | Unrealized Appreciation (Depreciation)2 | |||||||||||||||
Short Contracts | ||||||||||||||||||||
10-Year United States Treasury Note | (40 | ) | December 2020 | $ | (5,565,214 | ) | $ | (5,528,750 | ) | $ | 36,464 | |||||||||
|
|
|
|
|
|
1. | As of October 31, 2020, cash in the amount of $62,000 was on deposit with a broker or futures commission merchant for futures transactions. |
2. | Represents the difference between the value of the contracts at the time they were opened and the value as of October 31, 2020. |
The following abbreviations are used in the preceding pages:
AGM—Assured Guaranty Municipal Corp.
AMBAC—Ambac Assurance Corp.
BAM—Build America Mutual Assurance Co.
CHF—Collegiate Housing Foundation
NATL-RE—National Public Finance Guarantee Corp.
UT CSCE—Utah Charter School Credit Enhancement Program
The following is a summary of the fair valuations according to the inputs used as of October 31, 2020, for valuing the Fund’s assets and liabilities:
Description | Quoted (Level 1) | Significant (Level 2) | Significant (Level 3) | Total | ||||||||||||
Asset Valuation Inputs | ||||||||||||||||
Investments in Securities (a) | ||||||||||||||||
Municipal Bonds | $ | — | $ | 58,363,095 | $ | — | $ | 58,363,095 | ||||||||
|
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|
| |||||||||
Total Investments in Securities | — | 58,363,095 | — | 58,363,095 | ||||||||||||
|
|
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|
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|
| |||||||||
Other Financial Instruments | ||||||||||||||||
Futures Contracts (b) | 36,464 | — | — | 36,464 | ||||||||||||
|
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|
|
|
|
|
| |||||||||
Total Investments in Securities and Other Financial Instruments | $ | 36,464 | $ | 58,363,095 | $ | — | $ | 58,399,559 | ||||||||
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(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. |
16 | MainStay MacKay Intermediate 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, 2020 (Unaudited)
Assets |
| |||
Investment in securities, at value | $ | 58,363,095 | ||
Cash | 2,707,060 | |||
Cash collateral on deposit at broker for futures contracts | 62,000 | |||
Receivables: | ||||
Interest | 624,689 | |||
Fund shares sold | 42,753 | |||
Variation margin on futures contracts | 7,500 | |||
Other assets | 32,531 | |||
|
| |||
Total assets | 61,839,628 | |||
|
| |||
Liabilities | ||||
Payables: | ||||
Investment securities purchased | 1,285,580 | |||
Professional fees | 32,450 | |||
Shareholder communication | 11,903 | |||
Manager (See Note 3) | 7,963 | |||
Transfer agent (See Note 3) | 5,239 | |||
Custodian | 3,199 | |||
Fund shares redeemed | 740 | |||
Trustees | 238 | |||
NYLIFE Distributors (See Note 3) | 135 | |||
|
| |||
Total liabilities | 1,347,447 | |||
|
| |||
Net assets | $ | 60,492,181 | ||
|
| |||
Composition of Net Assets | ||||
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ | 5,978 | ||
Additional paid-in capital | 59,861,663 | |||
|
| |||
59,867,641 | ||||
Total distributable earnings (loss) | 624,540 | |||
|
| |||
Net assets | $ | 60,492,181 | ||
|
|
Class A | ||||
Net assets applicable to outstanding shares | $ | 2,107,967 | ||
|
| |||
Shares of beneficial interest outstanding | 208,267 | |||
|
| |||
Net asset value per share outstanding | $ | 10.12 | ||
Maximum sales charge (4.50% of offering price) | 0.48 | |||
|
| |||
Maximum offering price per share outstanding | $ | 10.60 | ||
|
| |||
Investor Class | ||||
Net assets applicable to outstanding shares | $ | 29,383 | ||
|
| |||
Shares of beneficial interest outstanding | 2,904 | |||
|
| |||
Net asset value per share outstanding | $ | 10.12 | ||
Maximum sales charge (4.00% of offering price) | 0.42 | |||
|
| |||
Maximum offering price per share outstanding | $ | 10.54 | ||
|
| |||
Class C | ||||
Net assets applicable to outstanding shares | $ | 128,804 | ||
|
| |||
Shares of beneficial interest outstanding | 12,726 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.12 | ||
|
| |||
Class I | ||||
Net assets applicable to outstanding shares | $ | 58,199,876 | ||
|
| |||
Shares of beneficial interest outstanding | 5,751,213 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.12 | ||
|
| |||
Class R6 | ||||
Net assets applicable to outstanding shares | $ | 26,151 | ||
|
| |||
Shares of beneficial interest outstanding | 2,584 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 10.12 | ||
|
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 17 |
Statement of Operations for the six months ended October 31, 2020 (Unaudited)
Investment Income (Loss) |
| |||
Income |
| |||
Interest | $ | 621,286 | ||
|
| |||
Expenses | ||||
Manager (See Note 3) | 109,827 | |||
Registration | 37,971 | |||
Professional fees | 33,804 | |||
Offering (See Note 2) | 16,423 | |||
Custodian | 10,026 | |||
Shareholder communication | 7,533 | |||
Trustees | 689 | |||
Distribution/Service—Class A (See Note 3) | 272 | |||
Distribution/Service—Investor Class (See Note 3) | 37 | |||
Distribution/Service—Class C (See Note 3) | 225 | |||
Transfer agent (See Note 3) | 100 | |||
Miscellaneous | 5,760 | |||
|
| |||
Total expenses before waiver/reimbursement | 222,667 | |||
Expense waiver/reimbursement from Manager (See Note 3) | (86,153 | ) | ||
|
| |||
Net expenses | 136,514 | |||
|
| |||
Net investment income (loss) | 484,772 | |||
|
| |||
Realized and Unrealized Gain (Loss) |
| |||
Net realized gain (loss) on: |
| |||
Investment transactions | 23,128 | |||
Futures transactions | (273,795 | ) | ||
|
| |||
Net realized gain (loss) | (250,667 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 2,531,244 | |||
Futures contracts | 290,306 | |||
|
| |||
Net change in unrealized appreciation (depreciation) | 2,821,550 | |||
|
| |||
Net realized and unrealized gain (loss) | 2,570,883 | |||
|
| |||
Net increase (decrease) in net assets resulting from operations | $ | 3,055,655 | ||
|
|
18 | MainStay MacKay Intermediate 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 six months ended October 31, 2020 (Unaudited) and the period June 28, 2019 (inception date) through April 30, 2020
2020 | 2020 (a) | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations: | ||||||||
Net investment income (loss) | $ | 484,772 | $ | 672,272 | ||||
Net realized gain (loss) | (250,667 | ) | 97,052 | |||||
Net change in unrealized appreciation (depreciation) | 2,821,550 | (1,467,627 | ) | |||||
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 3,055,655 | (698,303 | ) | |||||
|
| |||||||
Distributions to shareholders: | ||||||||
Class A | (2,077 | ) | (902 | ) | ||||
Investor Class | (260 | ) | (515 | ) | ||||
Class C | (675 | ) | (599 | ) | ||||
Class I | (588,682 | ) | (1,138,280 | ) | ||||
Class R6 | (282 | ) | (568 | ) | ||||
|
| |||||||
Total distributions to shareholders | (591,976 | ) | (1,140,864 | ) | ||||
|
| |||||||
Capital share transactions: | ||||||||
Net proceeds from sale of shares | 6,642,766 | 52,586,140 | ||||||
Net asset value of shares issued to shareholders in reinvestment of distributions | 591,608 | 1,140,649 | ||||||
Cost of shares redeemed | (537,578 | ) | (555,916 | ) | ||||
|
| |||||||
Increase (decrease) in net assets derived from capital share transactions | 6,696,796 | 53,170,873 | ||||||
|
| |||||||
Net increase (decrease) in net assets | 9,160,475 | 51,331,706 | ||||||
Net Assets | ||||||||
Beginning of period | 51,331,706 | — | ||||||
|
| |||||||
End of period | $ | 60,492,181 | $ | 51,331,706 | ||||
|
|
(a) | The inception date of the Fund was June 28, 2019. |
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
Class A | Six months ended October 31, 2020* | June 28, 2019^ through April 30, 2020 | ||||||
Net asset value at beginning of period | $ | 9.65 | $ | 10.00 | ||||
|
|
|
| |||||
Net investment income (loss) | 0.11 | 0.14 | ||||||
Net realized and unrealized gain (loss) on investments | 0.46 | (0.29 | ) | |||||
|
|
|
| |||||
Total from investment operations | 0.57 | (0.15 | ) | |||||
|
|
|
| |||||
Less distributions: | ||||||||
From net investment income | (0.10 | ) | (0.14 | ) | ||||
From net realized gain on investments | — | (0.06 | ) | |||||
|
|
|
| |||||
Total distributions | (0.10 | ) | (0.20 | ) | ||||
|
|
|
| |||||
Net asset value at end of period | $ | 10.12 | $ | 9.65 | ||||
|
|
|
| |||||
Total investment return (a) | 5.78 | % | (1.44 | %) | ||||
Ratios (to average net assets)/Supplemental Data: | ||||||||
Net investment income (loss)†† | 1.53 | % | 1.39 | % | ||||
Net expenses†† | 0.72 | % | 0.77 | % | ||||
Expenses (before waiver/reimbursement)†† | 1.04 | % | 1.12 | % | ||||
Portfolio turnover rate (b) | 37 | % | 108 | % | ||||
Net assets at end of period (in 000’s) | $ | 2,108 | $ | 136 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(b) | The portfolio turnover rate includes variable rate demand notes. |
Investor Class | Six months ended October 31, 2020* | June 28, 2019^ through April 30, 2020 | ||||||
Net asset value at beginning of period | $ | 9.65 | $ | 10.00 | ||||
|
|
|
| |||||
Net investment income (loss) | 0.07 | 0.14 | ||||||
Net realized and unrealized gain (loss) on investments | 0.49 | (0.29 | ) | |||||
|
|
|
| |||||
Total from investment operations | 0.56 | (0.15 | ) | |||||
|
|
|
| |||||
Less distributions: | ||||||||
From net investment income | (0.09 | ) | (0.14 | ) | ||||
From net realized gain on investments | — | (0.06 | ) | |||||
|
|
|
| |||||
Total distributions | (0.09 | ) | (0.20 | ) | ||||
|
|
|
| |||||
Net asset value at end of period | $ | 10.12 | $ | 9.65 | ||||
|
|
|
| |||||
Total investment return (a) | 5.79 | % | (1.56 | %) | ||||
Ratios (to average net assets)/Supplemental Data: | ||||||||
Net investment income (loss)†† | 1.36 | % | 1.30 | % | ||||
Net expenses†† | 0.91 | % | 0.79 | % | ||||
Expenses (before waiver/reimbursement)†† | 1.23 | % | 1.14 | % | ||||
Portfolio turnover rate (b) | 37 | % | 108 | % | ||||
Net assets at end of period (in 000’s) | $ | 29 | $ | 34 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(b) | The portfolio turnover rate includes variable rate demand notes. |
20 | MainStay MacKay Intermediate 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
Class C | Six months ended October 31, 2020* | June 28, 2019^ through April 30, 2020 | ||||||
Net asset value at beginning of period | $ | 9.65 | $ | 10.00 | ||||
|
|
|
| |||||
Net investment income (loss) | 0.07 | 0.12 | ||||||
Net realized and unrealized gain (loss) on investments | 0.48 | (0.29 | ) | |||||
|
|
|
| |||||
Total from investment operations | 0.55 | (0.17 | ) | |||||
|
|
|
| |||||
Less distributions: | ||||||||
From net investment income | (0.08 | ) | (0.12 | ) | ||||
From net realized gain on investments | — | (0.06 | ) | |||||
|
|
|
| |||||
Total distributions | (0.08 | ) | (0.18 | ) | ||||
|
|
|
| |||||
Net asset value at end of period | $ | 10.12 | $ | 9.65 | ||||
|
|
|
| |||||
Total investment return (a) | 5.67 | % | (1.76 | %) | ||||
Ratios (to average net assets)/Supplemental Data: | ||||||||
Net investment income (loss)†† | 1.11 | % | 1.11 | % | ||||
Net expenses†† | 1.16 | % | 1.03 | % | ||||
Expenses (before waiver/reimbursement)†† | 1.48 | % | 1.38 | % | ||||
Portfolio turnover rate (b) | 37 | % | 108 | % | ||||
Net assets at end of period (in 000’s) | $ | 129 | $ | 79 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(b) | The portfolio turnover rate includes variable rate demand notes. |
Class I | Six months ended October 31, 2020* | June 28, 2019^ through April 30, 2020 | ||||||
Net asset value at beginning of period | $ | 9.65 | $ | 10.00 | ||||
|
|
|
| |||||
Net investment income (loss) | 0.09 | 0.16 | ||||||
Net realized and unrealized gain (loss) on investments | 0.49 | (0.29 | ) | |||||
|
|
|
| |||||
Total from investment operations | 0.58 | (0.13 | ) | |||||
|
|
|
| |||||
Less distributions: | ||||||||
From net investment income | (0.11 | ) | (0.16 | ) | ||||
From net realized gain on investments | — | (0.06 | ) | |||||
|
|
|
| |||||
Total distributions | (0.11 | ) | (0.22 | ) | ||||
|
|
|
| |||||
Net asset value at end of period | $ | 10.12 | $ | 9.65 | ||||
|
|
|
| |||||
Total investment return (a) | 6.01 | % | (1.35 | %) | ||||
Ratios (to average net assets)/Supplemental Data: | ||||||||
Net investment income (loss) | 1.77 | % | 1.57 | % | ||||
Net expenses | 0.50 | % | 0.53 | % | ||||
Expenses (before waiver/reimbursement) | 0.82 | % | 0.88 | % | ||||
Portfolio turnover rate (b) | 37 | % | 108 | % | ||||
Net assets at end of period (in 000’s) | $ | 58,200 | $ | 51,059 |
* | Unaudited. |
^ | Inception date. |
(a) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(b) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 21 |
Financial Highlights selected per share data and ratios
Class R6 | Six months ended October 31, 2020* | June 28, 2019^ through April 30, 2020 | ||||||
Net asset value at beginning of period | $ | 9.65 | $ | 10.00 | ||||
|
|
|
| |||||
Net investment income (loss) | 0.09 | 0.17 | ||||||
Net realized and unrealized gain (loss) on investments | 0.49 | (0.29 | ) | |||||
|
|
|
| |||||
Total from investment operations | 0.58 | (0.12 | ) | |||||
|
|
|
| |||||
Less distributions: | ||||||||
From net investment income | (0.11 | ) | (0.17 | ) | ||||
From net realized gain on investments | — | (0.06 | ) | |||||
|
|
|
| |||||
Total distributions | (0.11 | ) | (0.23 | ) | ||||
|
|
|
| |||||
Net asset value at end of period | $ | 10.12 | $ | 9.65 | ||||
|
|
|
| |||||
Total investment return (a) | 6.01 | % | (1.32 | %) | ||||
Ratios (to average net assets)/Supplemental Data: | ||||||||
Net investment income (loss)†† | 1.76 | % | 1.60 | % | ||||
Net expenses†† | 0.50 | % | 0.50 | % | ||||
Expenses (before waiver/reimbursement)†† | 0.81 | % | 0.86 | % | ||||
Portfolio turnover rate (b) | 37 | % | 108 | % | ||||
Net assets at end of period (in 000’s) | $ | 26 | $ | 25 |
* | Unaudited. |
^ | Inception date. |
†† | Annualized. |
(a) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. Class R6 shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(b) | The portfolio turnover rate includes variable rate demand notes. |
22 | MainStay MacKay Intermediate 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 (Unaudited)
Note 1–Organization and Business
MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of thirty-four funds (collectively referred to as the “Funds”). These financial statements and notes relate to the MainStay MacKay Intermediate 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 has six classes of shares registered for sale. Class A, Investor Class, Class C, Class I and Class R6 shares commenced operations on June 28, 2019. SIMPLE Class shares were registered for sale effective as of August 31, 2020. As of October 31, 2020, SIMPLE Class shares were not yet offered for sale.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. A contingent deferred sales charge (“CDSC”) of 1.00% may be imposed on certain redemptions of Class A and Investor Class shares made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Class C shares are offered at NAV without an initial sales charge, although a 1.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class C shares. Class I and Class R6 shares are offered at NAV without a sales charge. SIMPLE Class shares are currently expected to be offered at NAV without a sales charge. Depending upon eligibility, Class C shares convert to either Class A or Investor Class shares at the end of the calendar quarter ten years after the date they were purchased. Additionally, Investor Class shares may convert automatically to Class A shares based on a shareholder’s account balance as described in the Fund’s prospectus. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class C shares are subject to higher distribution and/or service fees than Class A, Investor Class and SIMPLE Class shares. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund’s investment objective is to seek 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 usually valued as of the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).
The Board of Trustees of the Trust (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and other assets and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Trust (the “Valuation Committee”). The procedures state 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 assess the appropriateness of security valuations, the Manager, the 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.
The Board authorized the Valuation Committee to appoint a Valuation Subcommittee (the “Subcommittee”) to establish the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under the procedures. The Subcommittee meets (in person, via electronic mail or via teleconference) on an as-needed basis. The Valuation Committee meets to ensure that actions taken by the Subcommittee were appropriate.
For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Subcommittee deals with such valuation and the Valuation Committee reviews and affirms, if appropriate, the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. Any action taken by the Subcommittee with respect to the valuation of a portfolio security or other asset is submitted for review and ratification (if appropriate) to the Valuation Committee and the Board at the next regularly scheduled meeting.
“Fair value” is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or
23 |
Notes to Financial Statements (Unaudited) (continued)
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. The aggregate value by input level of the Fund’s assets and liabilities as of October 31, 2020, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades | |
• Broker/dealer quotes | • Issuer spreads | |
• Two-sided markets | • Benchmark securities | |
• Bids/offers | • Reference data (corporate actions or material event notices) | |
• Industry and economic events | • Comparable bonds | |
• Monthly payment information |
An asset or liability for which 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. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Fund’s valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Fund’s valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security’s sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period
ended October 31, 2020, 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 delisted 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 the 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 valued in this manner are generally categorized as Level 3 in the hierarchy. No securities held by the Fund as of October 31, 2020 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. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent’s good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants’ assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the 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 are generally categorized as Level 2 in the hierarchy.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Temporary cash investments that mature in 60 days or less at the time of purchase (“Short-Term Investments”) are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. These securities are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The valuation procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
24 | MainStay MacKay Intermediate 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 its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager have analyzed the Fund’s tax positions taken at the Fund’s first fiscal period end of April 30, 2020, and has concluded that no provision for federal, state, and local income tax are requited in the Fund’s financial statement. The Fund’s federal, state and local income tax and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired will be subject to examination by the Internal Revenue Service and state and local departments of revenue.
(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare dividends from net investment income, if any, daily and intends to pay them at least monthly and declares and pays distributions from net realized capital gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using GAAP.
(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Distributions received from real estate investment trusts may be classified as dividends, capital gains and/or return of capital. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and/or the distribution plans further discussed in Note 3(B)) are allocated to separate classes of
shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations.
(F) Offering Costs. Costs were incurred by the Fund in connection with the commencement of the Fund’s operations. These costs are being amortized on a straight line basis over 12 months.
(G) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(H) 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 risks such as market price risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation by marking to market such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. The Fund agrees to receive from or pay to the broker or futures commission merchant an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin.” When the futures contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.
The use of futures contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract or notional amounts and variation margin reflect the extent of the Fund’s involvement in open futures positions. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. The Fund’s activities in futures contracts have minimal counterparty risk as they are conducted through regulated exchanges that guarantee the futures against default by the counterparty. In the event of a bankruptcy or insolvency of a futures commission merchant that holds margin on behalf of the Fund, the Fund may not be entitled to the return of the entire margin owed to the Fund, potentially resulting in a loss. The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAVs and may result in a loss to the Fund. Open futures contracts held as of October 31, 2020, are shown in the Portfolio of Investments.
25 |
Notes to Financial Statements (Unaudited) (continued)
(I) Municipal Bond Risk. The Fund may invest more heavily in municipal bonds from certain cities, states or regions than others, which may increase the Fund’s exposure to losses resulting from economic, political, regulatory occurrences, or declines in tax revenue impacting these particular cities, states or regions. In addition, many state and municipal governments that issue securities are under significant economic and financial stress and may not be able to satisfy their obligations, and these events may be made worse due to economic challenges posed by COVID-19. The Fund may invest a substantial amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects, such as tobacco settlement bonds. If the Fund concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and this may have a significant impact on the Fund’s investment performance.
Certain of the issuers in which the Fund may invest have recently experienced, or may experience, significant financial difficulties and repeated credit rating downgrades. On May 3, 2017, the Commonwealth of Puerto Rico began proceedings pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) to seek bankruptcy-type protections from approximately $74 billion in debt and approximately $48 billion in unfunded pension obligations. In addition, the economic downturn following the outbreak of COVID-19 and the resulting pressure on Puerto Rico’s budget have further contributed to its financial challenges. Puerto Rico has reached agreements with certain bondholders to restructure outstanding debt issued by certain of Puerto Rico’s instrumentalities and is negotiating the restructuring of its debt with certain other bondholders. Any agreement to restructure such outstanding debt must be approved by the judge overseeing the debt restructuring. Puerto Rico’s debt restructuring process and other economic, political, social, environmental or health factors or developments could occur rapidly and may significantly affect the value of municipal securities of Puerto Rico. Due to the ongoing budget impact from Covid-19 on the Commonwealth’s finances, the Federal Oversight and Management Board or the Commonwealth could seek to revise or even terminate earlier agreements reached with certain creditors prior to the outbreak of COVID-19. Any agreement between the Federal Oversight and Management Board and creditors is subject to approval by the judge overseeing the Title III proceedings. The composition of the Federal Oversight and Management Board is changing significantly due to existing members either stepping down or being replaced as the current board’s term has expired. There is no assurance that newly appointed board members will approve the restructuring agreements the prior board had negotiated.
The Fund’s vulnerability to potential losses associated with such developments may be reduced through investing in municipal securities that feature credit enhancements (such as bond insurance). The bond insurance provider pays both principal and interest when due to the bond holder. The magnitude of Puerto Rico’s debt restructuring or other adverse economic developments could pose significant strains on the ability of municipal securities insurers to meet all future claims. As of October 31, 2020, 50.0% of the Puerto Rico municipal securities held by the Fund were insured.
(J) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the
normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that may provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Manager believes that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.
(K) Quantitative Disclosure of Derivative Holdings. The following tables show additional disclosures related to the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial positions, performance and cash flows. The Fund entered into futures contracts to help manage the duration and yield curve positioning of the portfolio. These derivatives are not accounted for as hedging instruments.
Fair value of derivative instruments as of October 31, 2020:
Asset Derivatives
Interest Rate Contracts Risk | Total | |||||||
Futures Contracts—Net Assets—Net unrealized appreciation on investments and futures contracts (a) | $ | 36,464 | $ | 36,464 | ||||
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|
|
| |||||
Total Fair Value | $ | 36,464 | $ | 36,464 | ||||
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|
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(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 period ended October 31, 2020:
Net Realized Gain (Loss) from:
Interest Rate Contracts Risk | Total | |||||||
Futures Contracts | $ | (273,795 | ) | $ | (273,795 | ) | ||
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|
|
| |||||
Total Net Realized Gain (Loss) | $ | (273,795 | ) | $ | (273,795 | ) | ||
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|
|
|
Net Change in Unrealized Appreciation (Depreciation) from:
Interest Rate Contracts Risk | Total | |||||||
Futures Contracts | $ | 290,306 | $ | 290,306 | ||||
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|
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| |||||
Total Net Change in Unrealized Appreciation (Depreciation) | $ | 290,306 | $ | 290,306 | ||||
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26 | MainStay MacKay Intermediate Tax Free Bond Fund |
Average Notional Amount
Interest Rate Contracts Risk | Total | |||||||
Futures Contracts Short | $ | (5,568,750 | ) | $ | (5,568,750 | ) | ||
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Note 3–Fees and Related Party Transactions
(A) Manager and Subadvisor. New York Life Investments, a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to an Amended and Restated Management Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC (“MacKay Shields” or the “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.40% on all assets.
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed: Class A, 0.77% and Class R6, 0.50% of its average daily net assets. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points of the Class A shares waiver/reimbursement, to Investor Class, Class C and Class I shares. This agreement will remain in effect until August 31, 2021, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended October 31, 2020, New York Life Investments earned fees from the Fund in the amount of $109,827 and waived fees and/or reimbursed certain class specific expenses in the amount of $86,153 and paid the Subadvisor in the amount of $11,837.
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.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a distribution agreement with NYLIFE Distributors LLC (the “Distributor”), an affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Investor Class Plans, the Distributor receives a monthly distribution fee from Class A and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A and Investor Class shares for distribution and/or service activities as designated by the Distributor. Pursuant to the Class C Plan, Class C shares pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the average daily net assets of the Class C shares, along with a service fee at an annual rate of 0.25% of the average daily net assets of the Class C shares, for a total 12b-1 fee of 0.50%. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Investor Class shares during the six month period ended October 31, 2020, was $84.
(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 DST Asset Manager Solutions, Inc. (“DST”), pursuant to which DST performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until August 31, 2021, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During the six-month period ended October 31, 2020, transfer agent expenses incurred by the Fund and any reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, were as follows:
Class | Expense | Waived | ||||||
Investor Class | $ | 25 | $ | — | ||||
Class C | 75 | — |
27 |
Notes to Financial Statements (Unaudited) (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. As described in the Fund’s prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of October 31, 2020, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class A | $ | 26,022 | 1.2 | % | ||||
Investor Class | 26,002 | 88.5 | ||||||
Class C | 25,921 | 20.1 | ||||||
Class I | 52,097,614 | 89.5 | ||||||
Class R6 | 26,107 | 99.8 |
Note 4–Federal Income Tax
As of October 31, 2020, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Investments in Securities | $ | 57,179,392 | $ | 1,592,138 | $ | (408,435 | ) | $ | 1,183,703 |
During the period ended April 30, 2020, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets were as follows:
2020 | ||||
Distributions paid from: | ||||
Ordinary Income | $ | 261,895 | ||
Exempt Interest Dividends | 850,822 | |||
Long-Term Capital Gain | 28,147 | |||
Total | $ | 1,140,864 |
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 transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.
Effective July 28, 2020, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan Chase Bank NA, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate or the one-month London Interbank Offered Rate (“LIBOR”), whichever is higher. The Credit Agreement expires on July 27, 2021, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 28, 2020, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement, but State Street served as agent to the syndicate. During the six-month period ended October 31, 2020, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement or the credit agreement for which State Street served as agent.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another subject to the conditions of the exemptive order. During the six-month period ended October 31, 2020, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended October 31, 2020, purchases and sales of securities, other than short-term securities, were $26,559 and $19,270, respectively.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended October 31, 2020 and the period ended April 30, 2020, were as follows:
Class A | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 194,007 | $ | 1,964,300 | |||||
Shares issued to shareholders in reinvestment of distributions | 205 | 2,077 | ||||||
Shares redeemed | (11 | ) | (109 | ) | ||||
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| |||||
Net increase (decrease) | 194,201 | $ | 1,966,268 | |||||
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| |||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 16,092 | $ | 158,821 | |||||
Shares issued to shareholders in reinvestment of distributions | 90 | 894 | ||||||
Shares redeemed | (2,116 | ) | (20,465 | ) | ||||
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Net increase (decrease) | 14,066 | $ | 139,250 | |||||
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28 | MainStay MacKay Intermediate Tax Free Bond Fund |
Investor Class | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 1,694 | $ | 17,001 | |||||
Shares issued to shareholders in reinvestment of distributions | 25 | 259 | ||||||
Shares redeemed | (2,288 | ) | (22,792 | ) | ||||
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| |||||
Net increase (decrease) | (569 | ) | $ | (5,532 | ) | |||
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| |||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 3,423 | $ | 33,850 | |||||
Shares issued to shareholders in reinvestment of distributions | 51 | 515 | ||||||
Shares redeemed | (1 | ) | (10 | ) | ||||
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| |||||
Net increase (decrease) | 3,473 | $ | 34,355 | |||||
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Class C | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 4,502 | $ | 45,616 | |||||
Shares issued to shareholders in reinvestment of distributions | 67 | 675 | ||||||
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| |||||
Net increase (decrease) | 4,569 | $ | 46,291 | |||||
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| |||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 10,042 | $ | 102,660 | |||||
Shares issued to shareholders in reinvestment of distributions | 60 | 599 | ||||||
Shares redeemed | (1,945 | ) | (20,010 | ) | ||||
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| |||||
Net increase (decrease) | 8,157 | $ | 83,249 | |||||
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Class I | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 454,435 | $ | 4,615,849 | |||||
Shares issued to shareholders in reinvestment of distributions | 58,185 | 588,315 | ||||||
Shares redeemed | (52,121 | ) | (514,677 | ) | ||||
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| |||||
Net increase (decrease) | 460,499 | $ | 4,689,487 | |||||
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| |||||
Period ended April 30, 2020 (a): | ||||||||
Shares sold | 5,228,676 | $ | 52,265,799 | |||||
Shares issued to shareholders in reinvestment of distributions | 112,987 | 1,138,073 | ||||||
Shares redeemed | (50,949 | ) | (515,421 | ) | ||||
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| |||||
Net increase (decrease) | 5,290,714 | $ | 52,888,451 | |||||
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Class R6 | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares issued to shareholders in reinvestment of distributions | 28 | 282 | ||||||
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| |||||
Net increase (decrease) | 28 | $ | 282 | |||||
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Period ended April 30, 2020 (a): | ||||||||
Shares sold | 2,501 | $ | 25,010 | |||||
Shares issued to shareholders in reinvestment of distributions | 56 | 568 | ||||||
Shares redeemed | (1 | ) | (10 | ) | ||||
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| |||||
Net increase (decrease) | 2,556 | $ | 25,568 | |||||
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(a) The inception date of the Fund was June 28, 2019. |
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Note 10–Recent Accounting Pronouncement
To improve the effectiveness of fair value disclosure requirements, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13, Fair Value Measurement Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which adds, removes, and modifies certain fair value measurement disclosure requirements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019. The Manager evaluated the implications of certain provisions of ASU 2018-13 and determined to early adopt aspects related to the removal and modifications of certain fair value measurement disclosures, which are currently in place as of October 31, 2020. The Manager is evaluating the implications of certain other provisions of ASU 2018-13 related to new disclosure requirements and has not yet determined the impact of those provisions on the financial statement disclosures, if any.
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-04 (“ASU 2020-04”), which provides optional guidance to ease the potential accounting burden associated with transitioning away from LIBOR and other reference rates that are expected to be discontinued. ASU 2020-04 is effective immediately upon release of the update on March 12, 2020, through December 31, 2022. At this time, the Manager is evaluating the implications of certain other provisions of ASU 2020-04 related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
Note 11–Other Matters
An outbreak of COVID-19, first detected in December 2019, has developed into a global pandemic and has resulted in travel restrictions, closure of international borders, certain businesses and securities markets, restrictions on securities trading activities, prolonged quarantines, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The continued impact of COVID-19 is uncertain and could further adversely affect the global economy, national economies, individual issuers and capital markets in unforeseeable ways and result in a substantial and extended economic downturn. Developments that disrupt global economies and financial markets, such as COVID-19, may magnify factors that affect the Fund’s performance.
Note 12–Subsequent Events
In connection with the preparation of the financial statements of the Fund as of and for the year ended October 31, 2020, events and transactions subsequent to October 31, 2020, through the date the financial statements were issued have been evaluated by the Manager, for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
29 |
Proxy Voting Policies and Procedures and Proxy Voting Record
A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available free of charge upon request, by visiting the MainStay Funds’ website at newyorklifeinvestments.com or visiting the SEC’s website at www.sec.gov.
The Fund is required to file with the SEC its proxy voting records for the 12-month period ending June 30 on Form N-PX. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting the MainStay Funds’ website at newyorklifeinvestments.com; or visiting the SEC’s website at www.sec.gov.
Shareholder Reports and Quarterly Portfolio Disclosure
The Fund is required to file its complete schedule of portfolio holdings with the SEC 60 days after its first and third fiscal quarter on Form N-PORT. The Fund’s holdings report is available free of charge by visiting the SEC’s website at www.sec.gov or upon request by calling New York Life Investments at 800-624-6782.
30 | MainStay MacKay Intermediate Tax Free Bond Fund |
MainStay Funds
Equity
U.S. Equity
MainStay Epoch U.S. All Cap Fund
MainStay Epoch U.S. Equity Yield Fund
MainStay MacKay Common Stock Fund
MainStay MacKay Growth Fund
MainStay MacKay S&P 500 Index Fund
MainStay MacKay Small Cap Core Fund
MainStay MacKay U.S. Equity Opportunities Fund
MainStay MAP Equity Fund
MainStay Winslow Large Cap Growth Fund1
International Equity
MainStay Epoch International Choice Fund
MainStay MacKay International Equity Fund
MainStay MacKay International Opportunities Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Yield Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay Unconstrained Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund2
MainStay Short Term Bond Fund3
Tax-Exempt Income
MainStay MacKay California Tax Free Opportunities Fund4
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay Intermediate Tax Free Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund5
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Tax Free Bond Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Defensive ETF Allocation Fund
MainStay Equity Allocation Fund6
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund7
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam Belgium S.A.8
Brussels, Belgium
Candriam Luxembourg S.C.A.8
Strassen, Luxembourg
CBRE Clarion Securities LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
MacKay Shields LLC8
New York, New York
Markston International LLC
White Plains, New York
NYL Investors LLC8
New York, New York
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC8
Jersey City, New Jersey
Custodian9
State Street Bank and Trust Company
Boston, Massachusetts
1. | Formerly known as MainStay Large Cap Growth Fund. |
2. | Formerly known as MainStay MacKay Infrastructure Bond Fund. |
3. | Formerly known as MainStay Indexed Bond Fund. |
4. | This Fund is registered for sale in AZ, CA, NV, OR, TX, UT and WA. Class A and Class I shares are registered for sale in MI. Class I and Class C2 shares are registered for sale in CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY. |
5. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY and VT. |
6. | Formerly known as MainStay Growth Allocation Fund. |
7. | Formerly known as MainStay Moderate Growth Allocation Fund. |
8. | An affiliate of New York Life Investment Management LLC. |
9. | The custodian for MainStay Cushing MLP Premier Fund is U.S. Bank National Association, Milwaukee, Wisconsin and the custodian for the MainStay ETF Asset Allocation Funds is JPMorgan Chase Bank, N.A., New York, New York. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2020 NYLIFE Distributors LLC. All rights reserved.
1838250 MS203-20 | MSITFB10-12/20 (NYLIM) NL466 |
MainStay MacKay Short Term
Municipal Fund
Message from the President and Semiannual Report
Unaudited | October 31, 2020
Beginning on January 1, 2021, paper copies of each MainStay Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from MainStay Funds or from your financial intermediary. Instead, the reports will be made available on the MainStay Funds’ website. You will be notified by mail and provided with a website address to access the report each time a new report is posted to the website.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from MainStay Funds electronically by calling toll-free 800-624-6782, by sending an e-mail to MainStayShareholderServices@nylim.com, or by contacting your financial intermediary.
You may elect to receive all future shareholder reports in paper form free of charge. If you hold shares of a MainStay Fund directly, you can inform MainStay Funds that you wish to receive paper copies of reports by calling toll-free 800-624-6782 or by sending an e-mail to MainStayShareholderServices@nylim.com. If you hold shares of a MainStay Fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper form will apply to all MainStay Funds in which you are invested and may apply to all funds held with your financial intermediary.
Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Government Agency |
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Message from the President
Although the global coronavirus pandemic continued to afflict populations and economies around the world, most broad U.S. stock and bond markets gained ground, rebounding from earlier pandemic-related declines to rise during the six-month reporting period ended October 31, 2020.
The backdrop for the reporting period was set in February and March 2020 as COVID-19 spread worldwide. Governments struggled to support overburdened health care systems by issuing “stay-at-home” orders and placing restrictions on nonessential activity. These responses slowed global economic activity, driving stock and bond indices sharply lower. Emergency monetary and fiscal measures promised economic relief, and by early April, market sentiment began to improve. Unemployment remained high, some sectors of the global economy remained depressed and many questions surrounding the pandemic had yet to be answered. Nevertheless, investors looked forward to a gradual lessening of restrictions on nonessential businesses, the possibility of additional stimulus and apparent progress in the development of a vaccine.
As the reporting period began on May 1, 2020, the S&P 500® Index, a widely regarded benchmark of U.S. equity market performance, had already recovered much of the ground it lost in February and March 2020. By late-August, the S&P 500® Index had reached new record levels. However, a resurgence of coronavirus cases in many parts of the country and uncertainties related to the November 3, 2020, U.S. election caused the rally to falter as the reporting period drew to a close.
Nevertheless, for the reporting period as a whole, U.S. equity indices generally produced strong gains. Returns proved most robust among small- to mid-cap stocks and growth-oriented stocks, while large-cap and value-oriented issues posted slightly milder gains. Within the S&P 500® Index, the consumer discretionary sector generated the strongest returns buoyed by better-than-expected levels of consumer spending. The materials, information technology, industrials and communication services sectors all outperformed the S&P 500® Index. The utilities, financials, consumer staples, health care and real estate sectors generated positive returns but lagged the Index. Only the energy sector ended the reporting period in negative
territory, experiencing sharp losses due to low petroleum prices and weak global demand. International equities rose, but tended to trail their U.S. counterparts due to weaker underlying economic growth and somewhat less aggressive monetary and fiscal stimulus. Emerging-market equities tracked the performance of U.S. equity markets more closely, led by relatively strong returns in Asian markets, including China and South Korea.
Risk-on conditions prevailed for fixed-income markets as well, favoring lower credit quality and longer duration securities. Corporate bonds generally gained ground, with high-yield securities tending to outperform investment-grade instruments. Similarly, among municipal bond issues, high-yield securities outperformed. Recognized safe havens, such as long-term U.S. government bonds, which had attracted risk-averse investors during the height of the market sell-off in early 2020, experienced declining prices. Emerging-market debt, on the other hand, outperformed most other bond types as investors overlooked risk in pursuit of higher return potential.
Although the ongoing pandemic continues to change the way that many of us work and live our lives, at New York Life Investments, we remain dedicated to providing you, as a MainStay investor, with products, information and services to help you to navigate today’s rapidly changing investment environment. By taking appropriate steps to minimize community spread of COVID-19 within our organization and despite the challenges posed by the coronavirus pandemic, we continue to innovate with you in mind, introducing new suites of Funds and providing continuous insights into ever-evolving markets and investment strategies. Our goal is to give you the tools you need to build a resilient portfolio in the face of uncertain times.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Past performance is no guarantee of future results.
Not part of the Semiannual Report
Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at newyorklifeinvestments.com. 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 and other factors, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-624-6782 or visit newyorklifeinvestments.com.
Average Annual Total Returns for the Period-Ended October 31, 20202
Class | Sales Charge | Inception Date | Six | One Year | Five Years | Ten Years | Gross Expense Ratio3 | |||||||||||||||||||||
Class A Shares4 | Maximum 1% Initial Sales Charge | With sales charges Excluding sales charges | | 1/2/2004 | | | 0.96 1.98 | %
| | 0.75 1.77 | %
| | 1.12 1.32 | %
| | 0.63 0.93 | %
| | 0.70 0.70 | %
| ||||||||
Class A2 Shares | Maximum 2% Initial Sales Charge | With sales charges Excluding sales charges | 9/30/2020 | | –2.05 –0.05 |
| | N/A N/A |
| | N/A N/A |
| | N/A N/A |
| | 0.70 0.70 |
| ||||||||||
Investor Class Shares4,5 | Maximum .50% Initial Sales Charge | With sales charges Excluding sales charges | | 2/28/2008 | | | 0.90 1.92 |
| | 0.59 1.61 |
| | 0.73 0.93 |
| | 0.24 0.55 |
| | 1.28 1.28 |
| ||||||||
Class I Shares | No Sales Charge | 1/2/1991 | 2.12 | 2.15 | 1.61 | 1.20 | 0.45 |
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, if any, 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 may reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations (if any), please refer to the Notes to Financial Statements. |
2. | Effective June 1, 2015, the Fund changed, among other things, its investment objective and principal investment strategies. Effective May 22, 2018, the Fund made further changes to, among other things, its principal |
investment strategies. Effective February 28, 2019, the Fund further changed its investment objective. The performance information shown in this report reflects the Fund’s prior investment objectives and principal investment strategies, as applicable. |
3. | The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report. |
4. | Prior to June 1, 2015, the maximum initial sales charge for Investor Class shares was 3.0%, which is reflected in the average annual total return figures shown. |
5. | Prior to June 30, 2020, the maximum initial sales charge for Investor Class shares was 1.0%, which is reflected in the average annual total return figures shown. |
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
5 |
Benchmark Performance | Six Months | One Year | Five Years | Ten Years | ||||||||||||
Bloomberg Barclays 3-Year Municipal Bond Index6 | 2.70 | % | 2.90 | % | 1.85 | % | 1.77 | % | ||||||||
Morningstar Muni National Short Category Average7 | 2.54 | 1.92 | 1.52 | 1.44 |
6. | The Bloomberg Barclays 3-Year Municipal Bond Index is the Fund’s primary broad-based securities-market index for comparison purposes. The Bloomberg Barclays 3-Year Municipal Bond Index is considered representative of the broad-based market for investment grade, tax-exempt bonds with a maturity range of 2-4 years. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly into an index. |
7. | The Morningstar Muni National Short Category Average is representative of funds that invest in bonds issued by state and local governments to fund |
public projects. The income from these bonds is generally free from federal taxes and/or from state taxes in the issuing state. To lower risk, some of these portfolios spread their assets across many states and sectors. Other portfolios buy bonds from only one state in order to get the state-tax benefit. These portfolios have durations of less than 4.5 years. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. |
The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.
6 | MainStay MacKay Short Term Municipal Fund |
Cost in Dollars of a $1,000 Investment in Mainstay MacKay Short Term Municipal Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2020, to October 31, 2020, 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, 2020, to October 31, 2020.
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, 2020. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Share Class | Beginning Account Value 5/1/20 | Ending Account Value (Based on Actual Returns and Expenses) 10/31/20 | Expenses Paid During Period1 | Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 10/31/20 | Expenses Paid During Period1 | Net Expense Ratio During Period2 | ||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,019.80 | $ | 3.31 | $ | 1,021.93 | $ | 3.31 | 0.65% | |||||||||||
Class A2 Shares3,4 | $ | 1,000.00 | $ | 999.50 | $ | 1.07 | $ | 1,007.29 | $ | 1.07 | 0.64% | |||||||||||
Investor Class Shares | $ | 1,000.00 | $ | 1,019.20 | $ | 5.04 | $ | 1,020.21 | $ | 5.04 | 0.99% | |||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,021.20 | $ | 2.04 | $ | 1,023.19 | $ | 2.04 | 0.40% |
1. | Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period) and 61 days for Simple Class share (to reflect the since-inception period. The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. |
2. | Expenses are equal to the Fund’s annualized expense ratio to reflect the six-month period. |
3. | The inception date was September 30, 2020. |
4. | Expenses paid during the period reflect ongoing costs for the period from inception through October 31, 2020. Had these shares been offered for the full six-month period ended October 31, 2020, and had the Fund provided a hypothetical 5% annualized return, expenses paid during the period would have been $3.26 for Class A2 shares and the ending account value would have been $1,021.98 for Class A2 shares. |
7 |
Portfolio Composition as of October 31, 2020 (Unaudited)
See Portfolio of Investments beginning on page 11 for specific holdings within these categories. The Fund’s holdings are subject to change.
Top Ten Issuers Held as of October 31, 2020 (excluding short-term investment) (Unaudited)
1. | Metropolitan Transportation Authority, Revenue Bonds, 4.00%–5.25%, due 11/15/20–11/15/26 |
2. | Main Street Natural Gas, Inc., Revenue Bonds, 0.93%–5.50%, due 9/15/21–3/1/50 |
3. | State of Illinois, Unlimited General Obligation, 5.00%–6.00%, due 11/1/20–11/1/26 |
4. | Parish of St. John the Baptist LA, Marathon Oil Corp Project, Revenue Bonds, 2.125%–2.375%, due 6/1/37 |
5. | North Carolina Turnpike Authority, Revenue Bonds, 5.00%, due 1/1/22–2/1/24 |
6. | Invesco Muni, Inc. 1.00%, due 12/1/22 |
7. | Michigan Finance Authority, Revenue Bonds, 2.326%–5.00%, due 11/1/21–6/1/30 |
8. | Municipal Electric Authority of Georgia, Revenue Bonds, 5.00%–5.25%, due 1/1/21–1/1/25 |
9. | State of Texas, Revenue Notes, 4.00%, due 8/26/21 |
10. | Wise County Industrial Development Authority, Virginia Electric & Power Co. Project, Revenue Bonds, 0.75%, due 10/1/40 |
8 | MainStay MacKay Short Term Municipal Fund |
Portfolio Management Discussion and Analysis (Unaudited)
Questions answered by portfolio managers John Loffredo, CFA, Robert DiMella, CFA, Michael Petty, David Dowden, Scott Sprauer, Frances Lewis and John Lawlor of MacKay Shields LLC, the Fund’s Subadvisor.
How did MainStay MacKay Short Term Municipal Fund perform relative to its benchmark and peer group during the six months ended October 31, 2020?
For the six months ended October 31, 2020, Class I shares of MainStay MacKay Short Term Municipal Fund returned 2.12%, underperforming the 2.70% return of the Fund’s primary benchmark, the Bloomberg Barclays 3-Year Municipal Bond Index. Over the same period, Class I shares also underperformed the 2.54% return of the Morningstar Muni National Short Category Average.1
What factors affected the Fund’s relative performance during the reporting period?
Several factors affected the Fund’s underperformance relative to the Bloomberg Barclays 3-Year Municipal Bond Index during the reporting period. The Fund’s comparatively underweight exposure to bonds rated AAA and AA+2 detracted from relative performance, as did underweight exposure to bonds maturing in two to four years. Conversely, the Fund’s relative performance benefited from overweight exposure to credits from the state of Illinois, as did holdings in the IDR/PCR (industry development revenue/pollution control revenue) and leasing sectors.
During the reporting period, were there any market events that materially impacted the Fund’s performance or liquidity?
The rapid spread of the COVID-19 pandemic in March 2020 resulted in a significant risk-off response in the global financial markets. The municipal bond market’s response to the crisis reflected the significant disruption to our economy, the financial markets and, of course, our personal lives. During the month of October 2020, municipal volatility surged and credit spreads3 widened. The extreme volatility in the municipal market was primarily due to a liquidity squeeze exacerbated by a sharp repricing of credit risk. Market technical conditions were upended as investors in municipal bond mutual funds and exchange-traded funds sought to exit a market that offered little liquidity, resulting in severe price declines. Yields of variable-rate demand notes spiked to over 9% and the new-issue market was shut down. Credit spreads widened as market participants attempted to discount the impact of an abrupt shutdown of the
U.S. economy. Notably, some high-yield municipal bonds experienced price swings exceeding 10 points in a
day. (A point represents one percent of a bond’s face value.) In our view, leveraged open-end mutual funds that were ill-prepared to meet shareholder redemptions contributed to municipal market volatility as they resorted to forced sales. (Contributions take weightings and total returns into account.)
The pandemic produced a significant credit shift in the municipal market. With mandatory stay-at-home requirements and the closing of large segments of the economy, including travel, leisure and retail, the economic conditions of state and local governments and related entities weakened. Fortunately, the municipal market’s credit condition at the start of 2020 was at an all-time high as state governments had accumulated large reserves due to record tax revenues in the wake of the Great Recession of 2007-2009. Nevertheless, as of the end of the reporting period, we believe that several municipal “front-line” sectors—including infrastructure, hospitals, state and local governments, and higher education—are likely to be the sectors most immediately impacted by the pandemic-related economic slowdown. We expect the magnitude of the impact to be a function of the duration and the severity of the crisis, as well as the specific geographic location of the credits.
Since the end of 2019, our municipal bond management team has increased the Fund’s overall credit quality, and added additional liquidity and cash reserves to offset short-term financial losses. As always, the team continues to assess the ability of each municipal issuer to manage through these times. We continue to believe there will be limited defaults in the municipal market, reflective of historical market trends.
What was the Fund’s duration4 strategy during the reporting period?
During the reporting period, the Fund sought to maintain a shorter duration posture than the Bloomberg Barclays 3-Year Municipal Bond Index, while bringing the Fund’s duration closer to that of the Index. As of October 31, 2020, the Fund’s modified duration to worst5 was 2.2 years while the benchmark’s modified duration to worst was 2.58 years.
1. | See page 5 for other share class returns, which may be higher or lower than Class I share returns. See page 6 for more information on benchmark and peer group returns. |
2. | An obligation rated ‘AAA’ has the highest rating assigned by Standard & Poor’s (“S&P”), and in the opinion of S&P, the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. An obligation rated ‘AA’ by 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. 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. Ratings from ‘AA’ to ‘CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the major rating categories. |
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. | 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. | 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 |
During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?
Across sectors, the strongest positive contributions to the Fund’s relative performance came from overweight exposure to IDR/PCR and local general obligation bonds, as well as strong security selection in the tobacco, electric and education sectors. Conversely, holdings in the prerefunded/ETM (escrowed to maturity) sector and state general obligation sectors detracted from relative returns. Across states, positive contributors included overweight exposure to bonds from Illinois and New Jersey, along with security selection among Ohio holdings. Holdings from Washington, California and Florida undermined relative performance. From a credit perspective, overweight exposure to bonds rated A6 and AA (mainly holdings with bond insurance) bolstered relative results, while underweight exposure to bonds rated AAA and AA detracted.
What were some of the Fund’s largest purchases and sales during the reporting period?
The Fund remained focused on diversification and liquidity, so no individual transaction was considered significant.
How did the Fund’s sector weightings change during the reporting period?
During the reporting period, the Fund increased its sector exposure to the local general obligation, IDR/PCR and transportation sectors. Conversely, the Fund decreased its exposure to the state general obligation, public power and hospital sectors. In addition, the Fund increased its state exposure to bonds from Texas, Alabama and Louisiana, while reducing exposure to bonds from Illinois, New Jersey and California. Lastly, the Fund increased its exposure to credits rated AAA and A, while decreasing its exposure to bonds rated AA+ and AA.
How was the Fund positioned at the end of the reporting period?
As of October 31, 2020, the Fund held overweight exposure relative to the Bloomberg Barclays 3-Year Municipal Bond Index in the local general obligation and leasing sectors, and relatively underweight exposure to the prerefunded/ETM sector and state general obligation sectors. As of the same date, the Fund held overweight exposure to bonds from Illinois and New Jersey, and underweight exposure to bonds from California, New York and Texas.
6. | 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. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund. |
The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.
10 | MainStay MacKay Short Term Municipal Fund |
Portfolio of Investments October 31, 2020 (Unaudited)
Principal Amount | Value | |||||||
Long-Term Bonds 95.2%† Corporate Bonds 0.2% |
| |||||||
Convertible Securities 0.2% |
| |||||||
Baptist Health Obligated Group | ||||||||
2.579%, due 12/1/22 | $ | 350,000 | $ | 352,616 | ||||
2.679%, due 12/1/23 | 400,000 | 404,555 | ||||||
Rogers Memorial Hospital, Inc. | 500,000 | 508,587 | ||||||
Smithsonian Institution | ||||||||
0.895%, due 9/1/22 | 825,000 | 825,794 | ||||||
0.974%, due 9/1/23 | 800,000 | 802,424 | ||||||
|
| |||||||
Total Corporate Bonds | 2,893,976 | |||||||
|
| |||||||
Municipal Bonds 95.0% Long-Term Municipal Bonds 86.1% |
| |||||||
Alabama 2.3% |
| |||||||
Birmingham Airport Authority, Revenue Bonds | ||||||||
Insured: BAM | 125,000 | 138,680 | ||||||
Insured: BAM | 625,000 | 717,556 | ||||||
Black Belt Energy Gas District, Project No. 4, Revenue Bonds | 500,000 | 570,690 | ||||||
Black Belt Energy Gas District, Project No. 5, Revenue Bonds | 7,500,000 | 8,681,550 | ||||||
City of Birmingham AL, Unlimited General Obligation | 150,000 | 166,490 | ||||||
Coosa Valley Water Supply District, Inc., Revenue Bonds | ||||||||
3.00%, due 10/1/22 | 100,000 | 104,651 | ||||||
4.00%, due 10/1/24 | 200,000 | 226,032 | ||||||
4.00%, due 10/1/25 | 150,000 | 173,694 | ||||||
4.00%, due 10/1/26 | 200,000 | 235,834 | ||||||
County of Dallas AL, Unlimited General Obligation | ||||||||
Series B, Insured: AGM | 270,000 | 265,496 | ||||||
Series A, Insured: AGM | 410,000 | 398,327 | ||||||
Series B, Insured: AGM | 300,000 | 287,952 | ||||||
Series A, Insured: AGM | 270,000 | 254,650 |
Principal Amount | Value | |||||||
Alabama (continued) |
| |||||||
Homewood Educational Building Authority, Samford University Project, Revenue Bonds | $ | 250,000 | $ | 250,220 | ||||
Industrial Development Board of the City of Mobile Alabama, Alabama Power Company, Revenue Bonds | 5,500,000 | 5,511,055 | ||||||
Lower Alabama Gas District, Gas Project No. 2, Revenue Bonds | ||||||||
4.00%, due 12/1/21 | 200,000 | 207,290 | ||||||
4.00%, due 12/1/22 | 350,000 | 374,094 | ||||||
4.00%, due 12/1/23 | 750,000 | 823,612 | ||||||
Lower Alabama Gas District, Revenue Bonds | 10,000,000 | 11,435,700 | ||||||
Phenix City Water & Sewer Revenue, Revenue Bonds | 500,000 | 517,445 | ||||||
Prichard Water Works & Sewer Board, Revenue Bonds | ||||||||
3.00%, due 11/1/20 | 240,000 | 240,000 | ||||||
3.00%, due 11/1/21 | 270,000 | 274,790 | ||||||
5.00%, due 11/1/22 | 415,000 | 445,071 | ||||||
Southeast Alabama Gas Supply District, Project No. 1, Revenue Bonds | 1,500,000 | 1,709,145 | ||||||
Southeast Alabama Gas Supply District, Project No. 2, Revenue Bonds | ||||||||
Series A | 315,000 | 331,330 | ||||||
Series A | 255,000 | 275,900 | ||||||
Troy University Facilities, Revenue Bonds | 2,000,000 | 2,070,980 | ||||||
University of West Alabama, Revenue Bonds | ||||||||
Insured: AGM | 150,000 | 154,457 | ||||||
Insured: AGM | 125,000 | 133,890 | ||||||
Insured: AGM | 100,000 | 110,170 | ||||||
Insured: AGM | 150,000 | 169,490 | ||||||
Insured: AGM | 180,000 | 216,689 | ||||||
|
| |||||||
37,472,930 | ||||||||
|
|
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Alaska 0.1% |
| |||||||
Alaska Industrial Development & Export Authority, Tanana Chiefs Conference Project, Revenue Bonds | ||||||||
Series A | $ | 550,000 | $ | 594,594 | ||||
Series A | 585,000 | 656,739 | ||||||
City of Valdez AK, BP Pipelines, Inc. Project, Revenue Bonds | 1,000,000 | 1,007,540 | ||||||
|
| |||||||
2,258,873 | ||||||||
|
| |||||||
Arizona 0.2% |
| |||||||
Industrial Development Authority of the City of Phoenix, Downtown Phoenix Student LLC, Revenue Bonds | 50,000 | 52,748 | ||||||
Maricopa County Elementary School District No. 8, Limited General Obligation | 470,000 | 484,866 | ||||||
Maricopa County Industrial Development Authority, Paradise Schools Project, Revenue Bonds Insured: School District Credit Program | 150,000 | 158,596 | ||||||
Maricopa County Unified School District No. 90, Saddle Mountain, Unlimited General Obligation | 400,000 | 427,800 | ||||||
Northern Arizona University, Stimulus Plan for Economic & Educational Development, Revenue Bonds Insured: AGM | 1,000,000 | 1,114,260 | ||||||
Sedona Wastewater Municipal Property Corp., Revenue Bonds | 500,000 | 478,745 | ||||||
|
| |||||||
2,717,015 | ||||||||
|
| |||||||
Arkansas 0.3% |
| |||||||
Arkansas Development Finance Authority, Revenue Bonds | 325,000 | 333,983 |
Principal Amount | Value | |||||||
Arkansas (continued) |
| |||||||
City of Fort Smith AR, Sales & Use Tax, Revenue Bonds | $ | 835,000 | $ | 875,639 | ||||
City of Fort Smith AR, Water & Sewer, Revenue Bonds | 2,025,000 | 2,463,736 | ||||||
Little Rock School District, Limited General Obligation | 550,000 | 553,625 | ||||||
|
| |||||||
4,226,983 | ||||||||
|
| |||||||
California 5.8% |
| |||||||
ABC Unified School District, Unlimited General Obligation | 1,315,000 | 1,263,676 | ||||||
Alameda Unified School District, Capital Appreciation, Unlimited General Obligation | 330,000 | 312,804 | ||||||
Alta Loma School District, Capital Appreciation, Election of 1999, Unlimited General Obligation | 200,000 | 193,104 | ||||||
Alta Loma School District, Capital Appreciation, Unlimited General Obligation | 1,750,000 | 1,745,572 | ||||||
Anaheim Public Financing Authority, Public Improvements Project, Revenue Bonds | 300,000 | 298,416 | ||||||
Antelope Valley Union High School District, Unlimited General Obligation | 300,000 | 288,426 | ||||||
California County Tobacco Securitization Agency, Revenue Bonds | ||||||||
Series A | 750,000 | 761,550 | ||||||
Series A | 350,000 | 369,855 | ||||||
Series A | 450,000 | 521,019 | ||||||
California Educational Facilities Authority, Loyola Marymount University, Revenue Bonds | 3,000,000 | 2,954,790 |
12 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
California (continued) |
| |||||||
California Health Facilities Financing Authority, Dignity Health, Revenue Bonds | $ | 1,500,000 | $ | 1,500,225 | ||||
California Health Facilities Financing Authority, Los Angeles Biomedical Research Institute, Revenue Bonds | ||||||||
4.00%, due 9/1/21 | 275,000 | 280,492 | ||||||
4.00%, due 9/1/22 | 300,000 | 313,080 | ||||||
4.00%, due 9/1/23 | 310,000 | 330,627 | ||||||
California Municipal Finance Authority, California Lutheran University, Revenue Bonds | 250,000 | 257,748 | ||||||
California Municipal Finance Authority, CHF Davis I LLC, Revenue Bonds | 1,200,000 | 1,345,116 | ||||||
California Municipal Finance Authority, LAX Integrated Express Solutions Project, Revenue Bonds (b) | ||||||||
Series A | 1,300,000 | 1,450,241 | ||||||
5.00%, due 6/30/25 | 685,000 | 796,956 | ||||||
California Municipal Finance Authority, Paradise Valley Estates Project, Revenue Bonds | 500,000 | 500,960 | ||||||
California Municipal Finance Authority, West Village Student Housing Project, Revenue Bonds | 1,520,000 | 1,657,484 | ||||||
California State Educational Facilities Authority, Art Center College of Design, Revenue Bonds | ||||||||
Series A | 290,000 | 299,985 | ||||||
Series A | 200,000 | 212,956 | ||||||
California Statewide Communities Development Authority, Methodist Hospital of Southern California Project, Revenue Bonds | ||||||||
5.00%, due 1/1/21 | 300,000 | 301,923 | ||||||
5.00%, due 1/1/22 | 500,000 | 522,845 | ||||||
California Statewide Communities Development Authority, Southern California Edison Co., Revenue Bonds | 1,265,000 | 1,323,671 |
Principal Amount | Value | |||||||
California (continued) |
| |||||||
Chino Valley Unified School District, Limited General Obligation | $ | 125,000 | $ | 129,470 | ||||
Chula Vista Elementary School District, Revenue Bonds | 5,670,000 | 5,612,279 | ||||||
City of Fresno CA, Airport, Revenue Bonds | 690,000 | 756,695 | ||||||
City of Montebello CA, Revenue Bonds Insured: AGM | 2,000,000 | 2,066,760 | ||||||
Clovis Unified School District, Capital Appreciation, Election of 2004, Unlimited General Obligation | 280,000 | 272,748 | ||||||
County of Sacramento CA, Airport System, Revenue Bonds | 260,000 | 308,729 | ||||||
El Camino Healthcare District, Capital Appreciation, Unlimited General Obligation | 380,000 | 359,989 | ||||||
Hayward Unified School District, Unlimited General Obligation | 2,010,000 | 2,080,189 | ||||||
Kern Community College District, Unlimited General Obligation | 6,000,000 | 5,843,340 | ||||||
Los Angeles County Schools, Revenue Notes | 2,000,000 | 2,013,680 | ||||||
Los Angeles Department of Airports, Revenue Bonds (b) | ||||||||
Series A | 1,065,000 | 1,090,432 | ||||||
5.00%, due 5/15/22 | 1,180,000 | 1,260,629 | ||||||
Series D | 1,000,000 | 1,068,330 | ||||||
5.00%, due 5/15/24 | 500,000 | 573,820 | ||||||
Los Angeles Unified School District, Unlimited General Obligation | 2,000,000 | 2,245,400 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
California (continued) |
| |||||||
Madera Unified School District, Capital Appreciation-Election 2002, Unlimited General Obligation | $ | 250,000 | $ | 240,243 | ||||
Manteca Unified School District, Unlimited General Obligation | 325,000 | 312,166 | ||||||
Merced Irrigation District Financing Authority, Revenue Bonds | 250,000 | 272,878 | ||||||
Metropolitan Water District of Southern California, Revenue Bonds | 5,000,000 | 5,157,100 | ||||||
Mount Diablo Unified School District, Capital Appreciation-Election 2010, Unlimited General Obligation | 445,000 | 487,542 | ||||||
Norman Y Mineta San Jose International Airport SJC, Revenue Bonds | 250,000 | 284,298 | ||||||
Oakland Unified School District, Alameda County, Unlimited General Obligation Insured: AGM | 250,000 | 290,848 | ||||||
Ontario International Airport Authority, Revenue Bonds | 1,000,000 | 1,030,390 | ||||||
Oxnard County Water Revenue, Revenue Bonds | 280,000 | 287,409 | ||||||
Oxnard Financing Authority, Revenue Bonds | 175,000 | 179,797 | ||||||
Pacifica School District, Unlimited General Obligation | 1,165,000 | 1,119,530 | ||||||
Palm Springs Airport Passenger Facilities, Palm Springs International Airport, Revenue Bonds (b) | ||||||||
5.00%, due 6/1/22 | 400,000 | 424,852 | ||||||
Insured: BAM | 925,000 | 1,082,842 | ||||||
Insured: BAM | 655,000 | 758,837 |
Principal Amount | Value | |||||||
California (continued) |
| |||||||
Peninsula Corridor Joint Powers Board, Revenue Bonds | ||||||||
Series A | $ | 550,000 | $ | 589,688 | ||||
Series A | 585,000 | 648,677 | ||||||
Port of Oakland, Revenue Bonds | 625,000 | 667,050 | ||||||
Rialto Redevelopment Agency, Merged Project Area, Tax Allocation | 250,000 | 282,565 | ||||||
Ripon Redevelopment Agency Successor Agency, Tax Allocation | 110,000 | 122,766 | ||||||
Riverside County Asset Leasing Corp., Riverside County Hospital Project, Revenue Bonds | 1,905,000 | 1,826,495 | ||||||
Sacramento City Financing Authority, Capital Appreciation, Tax Allocation | 4,170,000 | 4,127,132 | ||||||
Sacramento City Unified School District, Election 2012, Unlimited General Obligation | 300,000 | 332,892 | ||||||
Sacramento Transient Occupancy Tax Revenue, Convention Center Complex, Revenue Bonds | ||||||||
Series C | 275,000 | 288,448 | ||||||
Series C | 325,000 | 351,832 | ||||||
Series A | 1,375,000 | 1,600,720 | ||||||
San Diego County CA, / San Diego County School Districts, Revenue Notes | 2,000,000 | 2,013,720 | ||||||
San Diego Unified School District, Election 2008, Unlimited General Obligation | 425,000 | 239,840 | ||||||
San Francisco City & County Airport Commission, San Francisco International Airport, Revenue Bonds | ||||||||
Series D | 2,645,000 | 2,705,438 | ||||||
Series D | 210,000 | 247,876 |
14 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
California (continued) |
| |||||||
San Juan Unified School District, Capital Appreciation, Unlimited General Obligation | $ | 2,540,000 | $ | 2,509,317 | ||||
San Marcos Unified School District, 2010 Election, Unlimited General Obligation | 370,000 | 363,140 | ||||||
San Ysidro School District, Capital Appreciation-Election 1997, Unlimited General Obligation | ||||||||
Series D, Insured: NATL-RE | 300,000 | 295,527 | ||||||
Series D, Insured: NATL-RE | 400,000 | 378,980 | ||||||
San Ysidro School District, Unlimited General Obligation | ||||||||
Series A, Insured: BAM | 800,000 | 835,544 | ||||||
Insured: AGM | 1,320,000 | 1,424,478 | ||||||
Sanger Unified School District, Capital Appreciation, Election 2006, Unlimited General Obligation | 290,000 | 260,881 | ||||||
Santa Cruz City Elementary School District, Capital Appreciation, Election 1998, Unlimited General Obligation | 100,000 | 98,357 | ||||||
South Bay Union School District / San Diego County, Unlimited General Obligation | 1,000,000 | 989,950 | ||||||
Southern California Public Power Authority, Apex Power Project No. 1, Revenue Bonds | 1,410,000 | 1,475,480 | ||||||
Southwestern Community College District, Capital Appreciation, Election of 2000, Unlimited General Obligation | 115,000 | 112,315 | ||||||
State of California, Unlimited General Obligation | ||||||||
Series B | 1,990,000 | 1,986,776 | ||||||
5.00%, due 9/1/21 | 2,775,000 | 2,883,697 | ||||||
5.25%, due 9/1/23 | 1,740,000 | 1,812,332 |
Principal Amount | Value | |||||||
California (continued) |
| |||||||
Transbay Joint Powers Authority, Green Bond, Tax Allocation | ||||||||
Series A-T | $ | 1,000,000 | $ | 1,005,300 | ||||
Series A-T | 750,000 | 757,957 | ||||||
Ukiah Unified School District, Capital Appreciation, Unlimited General Obligation | 875,000 | 872,016 | ||||||
Upper Lake Union High School District, Capital Appreciation, Unlimited General Obligation | 255,000 | 249,928 | ||||||
Vacaville Unified School District, Unlimited General Obligation | 125,000 | 147,088 | ||||||
Vallejo City Unified School District, Unlimited General Obligation Insured: AGM | 520,000 | 538,200 | ||||||
Victor Elementary School District, Capital Appreciation, Unlimited General Obligation | 350,000 | 321,972 | ||||||
Vista Unified School District, Capital Appreciation, Unlimited General Obligation | 325,000 | 307,885 | ||||||
Yuba City Unified School District, Capital Appreciation, Unlimited General Obligation | 1,300,000 | 1,236,157 | ||||||
|
| |||||||
94,323,159 | ||||||||
|
| |||||||
Colorado 1.7% |
| |||||||
Arkansas River Power Authority, Revenue Bonds | 1,880,000 | 1,944,973 | ||||||
City & County of Denver CO, Airport System, Revenue Bonds (b) | ||||||||
Series B1 | 940,000 | 1,059,408 | ||||||
Series B1 | 6,275,000 | 7,305,292 | ||||||
Series A | 2,815,000 | 2,947,249 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Colorado (continued) |
| |||||||
Colorado Educational & Cultural Facilities Authority, Johnson & Wales University, Revenue Bonds | ||||||||
Series A | $ | 315,000 | $ | 336,436 | ||||
Series B | 770,000 | 812,373 | ||||||
Series B | 500,000 | 544,460 | ||||||
Colorado School of Mines, Capital Appreciation, Revenue Bonds | 100,000 | 95,736 | ||||||
Copperleaf Metropolitan District No. 2, Limited General Obligation | ||||||||
Insured: BAM | 300,000 | 331,476 | ||||||
Insured: BAM | 385,000 | 454,038 | ||||||
Crystal Valley Metropolitan District No. 2, Limited General Obligation | ||||||||
Series A, Insured: AGM | 200,000 | 200,680 | ||||||
Series A, Insured: AGM | 100,000 | 108,858 | ||||||
Series A, Insured: AGM | 140,000 | 158,220 | ||||||
Series A, Insured: AGM | 175,000 | 204,409 | ||||||
Series A, Insured: AGM | 250,000 | 301,040 | ||||||
Series A, Insured: AGM | 225,000 | 277,256 | ||||||
Dawson Ridge Metropolitan District No. 1, Limited General Obligation | ||||||||
Series A | 955,000 | 947,551 | ||||||
Series B | 2,810,000 | 2,788,082 | ||||||
Denver City & County Airport Revenue Bonds (b) | ||||||||
Series A | 550,000 | 551,892 | ||||||
Series A | 720,000 | 782,705 | ||||||
Denver City & County Airport System, Revenue Bonds | 520,000 | 590,424 |
Principal Amount | Value | |||||||
Colorado (continued) |
| |||||||
Erie Commons Metropolitan District No. 2, Limited General Obligation | ||||||||
Series A, Insured: AGM | $ | 100,000 | $ | 104,653 | ||||
Series A, Insured: AGM | 130,000 | 146,621 | ||||||
Flying Horse Metropolitan District No. 2, Limited General Obligation | ||||||||
Series A, Insured: AGM | 230,000 | 238,742 | ||||||
Series A, Insured: AGM | 325,000 | 368,423 | ||||||
Series A, Insured: AGM | 395,000 | 457,987 | ||||||
Poudre Tech Metropolitan District, Unlimited General Obligation | ||||||||
Insured: AGM | 165,000 | 169,085 | ||||||
Insured: AGM | 400,000 | 428,128 | ||||||
Insured: AGM | 400,000 | 435,864 | ||||||
Insured: AGM | 150,000 | 165,444 | ||||||
Insured: AGM | 170,000 | 188,753 | ||||||
Sand Creek Metropolitan District, Limited General Obligation | ||||||||
Insured: AGM | 100,000 | 101,588 | ||||||
Insured: AGM | 125,000 | 133,713 | ||||||
Insured: AGM | 565,000 | 638,297 | ||||||
Triview Metropolitan District, Revenue Bonds | ||||||||
Insured: BAM | 210,000 | 229,645 | ||||||
Insured: BAM | 315,000 | 371,268 | ||||||
Insured: BAM | 255,000 | 309,748 | ||||||
University of Colorado, Revenue Bonds | 100,000 | 102,794 | ||||||
Vauxmont Metropolitan District, Limited General Obligation | ||||||||
Insured: AGM | 100,000 | 104,579 | ||||||
Insured: AGM | 100,000 | 108,603 | ||||||
|
| |||||||
27,546,493 | ||||||||
|
|
16 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Connecticut 1.8% |
| |||||||
City of Bridgeport CT, Unlimited General Obligation | ||||||||
Series A | $ | 600,000 | $ | 653,502 | ||||
Series A | 865,000 | 970,444 | ||||||
City of Hartford CT, Unlimited General Obligation | ||||||||
Series C, Insured: AGM, State Guaranteed | 200,000 | 206,164 | ||||||
Series A, Insured: AGM | 1,000,000 | 1,061,880 | ||||||
Series A, State Guaranty | 490,000 | 543,645 | ||||||
City of New Haven, Unlimited General Obligation | ||||||||
Series C, Insured: AGM | 700,000 | 709,688 | ||||||
Series A | 155,000 | 177,681 | ||||||
City of West Haven CT, Unlimited General Obligation | ||||||||
Series B | 4,800,000 | 4,846,464 | ||||||
Insured: BAM | 365,000 | 367,730 | ||||||
Insured: BAM | 250,000 | 266,948 | ||||||
Insured: BAM | 380,000 | 415,348 | ||||||
Insured: BAM | 200,000 | 226,686 | ||||||
Connecticut State Higher Education Supplement Loan Authority, Chesla Loan Program, Revenue Bonds (b) | ||||||||
Series A | 975,000 | 1,015,950 | ||||||
Series A | 200,000 | 219,456 | ||||||
Series A | 460,000 | 517,201 | ||||||
State of Connecticut Special Tax, Transportation Infrastructure, Revenue Bonds | 370,000 | 385,843 |
Principal Amount | Value | |||||||
Connecticut (continued) |
| |||||||
State of Connecticut, Special Tax, Revenue Bonds | ||||||||
Series A | $ | 500,000 | $ | 509,160 | ||||
Series A | 400,000 | 428,012 | ||||||
Series A | 675,000 | 752,321 | ||||||
State of Connecticut, Unlimited General Obligation | ||||||||
Series C | 2,210,000 | 2,342,136 | ||||||
Series C | 1,535,000 | 1,836,735 | ||||||
Series C | 4,865,000 | 5,006,377 | ||||||
Series C | 1,500,000 | 1,680,165 | ||||||
Series D | 105,000 | 109,896 | ||||||
Town of Fairfield CT, Unlimited General Obligation | 685,000 | 740,807 | ||||||
Town of Hamden CT, Unlimited General Obligation | 300,000 | 319,608 | ||||||
Town of Windham CT, Unlimited General Obligation | ||||||||
Series A, Insured: BAM | 810,000 | 957,663 | ||||||
Series A, Insured: BAM | 825,000 | 989,554 | ||||||
University of Connecticut, Revenue Bonds | 425,000 | 433,759 | ||||||
|
| |||||||
28,690,823 | ||||||||
|
| |||||||
Delaware 0.1% |
| |||||||
Delaware State Economic Development Authority, Newark Charter School, Inc. Project, Revenue Bonds | ||||||||
4.00%, due 9/1/22 | 340,000 | 355,453 | ||||||
4.00%, due 9/1/24 | 370,000 | 403,932 | ||||||
Delaware State Health Facilities Authority, Bayhealth Medical Center Project, Revenue Bonds | 125,000 | 134,749 | ||||||
|
| |||||||
894,134 | ||||||||
|
|
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
District of Columbia 0.4% |
| |||||||
District of Columbia Income Tax Secured, Revenue Bonds | $ | 420,000 | $ | 441,647 | ||||
District of Columbia, Children’s Hospital Obligated Group, Revenue Bonds | 250,000 | 257,652 | ||||||
District of Columbia, Gallery Place Project, Tax Allocation | 1,720,000 | 1,764,703 | ||||||
District of Columbia, KIPP DC Project, Revenue Bonds | 200,000 | 211,302 | ||||||
Metropolitan Washington Airports Authority, Revenue Bonds (b) | ||||||||
Series A | 200,000 | 232,988 | ||||||
5.00%, due 10/1/26 | 930,000 | 1,141,659 | ||||||
Series A | 1,000,000 | 1,149,060 | ||||||
Washington Metropolitan Area Transit Authority, Revenue Bonds | 450,000 | 484,470 | ||||||
|
| |||||||
5,683,481 | ||||||||
|
| |||||||
Florida 2.7% |
| |||||||
Central Florida Expressway Authority, Revenue Bonds | 380,000 | 408,052 | ||||||
City of Jacksonville FL, Revenue Bonds | ||||||||
5.00%, due 10/1/21 | 665,000 | 693,043 | ||||||
5.00%, due 10/1/27 | 1,285,000 | 1,390,319 | ||||||
City of Orlando FL, Tourist Development Tax, Revenue Bonds | 1,095,000 | 1,317,603 | ||||||
City of Tampa FL, H. Lee Moffitt Cancer Center Project, Revenue Bonds | ||||||||
Series B | 75,000 | 83,103 | ||||||
Series B | 300,000 | 344,193 | ||||||
5.00%, due 7/1/25 | 425,000 | 502,307 | ||||||
County of Broward FL Airport System, Revenue Bonds | 1,000,000 | 1,047,730 |
Principal Amount | Value | |||||||
Florida (continued) |
| |||||||
County of Broward FL Port Facilities, Revenue Bonds (b) | ||||||||
Series D | $ | 785,000 | $ | 811,007 | ||||
Series B, Insured: AGM | 1,000,000 | 1,030,180 | ||||||
Series D | 1,000,000 | 1,108,760 | ||||||
County of Miami-Dade FL Aviation, Revenue Bonds | ||||||||
Series B | 1,500,000 | 1,504,365 | ||||||
Series B | 735,000 | 794,359 | ||||||
Series A | 285,000 | 285,906 | ||||||
County of Miami-Dade FL, Capital Asset Acquisition, Revenue Bonds | 5,000,000 | 4,989,500 | ||||||
County of Miami-Dade Florida Water & Sewer System, Revenue Bonds | 835,000 | 998,635 | ||||||
County of Osceola FL, Transportation Revenue Bonds | ||||||||
Series A-1 | 250,000 | 258,440 | ||||||
Series A-1 | 250,000 | 267,278 | ||||||
County of St. Lucie FL, Sales Tax, Revenue Bonds | 100,000 | 112,665 | ||||||
County of St. Lucie School Board, Certificate of Participation | 650,000 | 730,236 | ||||||
County of St. Lucie School Board, Revenue Bonds | 130,000 | 146,747 | ||||||
Daytona Beach Capital Improvement, Revenue Bonds | 500,000 | 504,215 | ||||||
Flagler County School District, Certificate of Participation | 200,000 | 215,610 |
18 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Florida (continued) |
| |||||||
Florida Municipal Loan Council, Revenue Bonds | $ | 500,000 | $ | 516,305 | ||||
Greater Orlando Aviation Authority, Revenue Bonds (b) | ||||||||
Series A | 1,000,000 | 1,039,350 | ||||||
Series A | 6,270,000 | 6,765,894 | ||||||
Subseries A | 500,000 | 561,160 | ||||||
Herons Glen Recreation District, Special Assessment | ||||||||
Insured: BAM | 225,000 | 230,807 | ||||||
Insured: BAM | 230,000 | 239,223 | ||||||
Insured: BAM | 150,000 | 157,674 | ||||||
Hillsborough County Industrial Development Authority, Tampa General Hospital Project, Revenue Bonds | ||||||||
5.00%, due 8/1/25 | 260,000 | 304,106 | ||||||
5.00%, due 8/1/26 | 315,000 | 375,574 | ||||||
Hillsborough County School Board, Revenue Bonds | 2,375,000 | 2,582,789 | ||||||
Lakewood Ranch Stewardship District, Special Assessment | ||||||||
Series A-1, Insured: AGM | 1,075,000 | 1,074,978 | ||||||
Series A-1, Insured: AGM | 1,085,000 | 1,084,946 | ||||||
Series A-1, Insured: AGM | 545,000 | 544,831 | ||||||
Lee County Tourist Development, Revenue Bonds | 1,030,000 | 1,056,141 | ||||||
Martin County Industrial Development Authority, Indiantown Cogeneration Project, Revenue Bonds | 2,000,000 | 2,001,080 | ||||||
Miami-Dade County Educational Facilities Authority, Revenue Bonds | 1,100,000 | 1,250,645 |
Principal Amount | Value | |||||||
Florida (continued) |
| |||||||
Miami-Dade County Educational Facilities Authority, University of Miami, Revenue Bonds | $ | 150,000 | $ | 159,303 | ||||
Mid-Bay Bridge Authority, Revenue Bonds | 1,000,000 | 1,036,930 | ||||||
Orange County Convention Center, Revenue Bonds | ||||||||
5.00%, due 10/1/21 | 1,985,000 | 2,056,817 | ||||||
5.00%, due 10/1/22 | 355,000 | 381,739 | ||||||
Palm Beach County Health Facilities Authority, Acts Retirement—Life Communities, Inc., Revenue Bonds | 125,000 | 125,223 | ||||||
Volusia County School Board, Certificate of Participation | 365,000 | 377,775 | ||||||
|
| |||||||
43,467,543 | ||||||||
|
| |||||||
Georgia 2.7% |
| |||||||
Brookhaven Development Authority, Children’s Healthcare of Atlanta, Revenue Bonds | 700,000 | 754,229 | ||||||
Burke County Development Authority, Georgia Power Co., Vogtle Project, Revenue Bonds (a) | ||||||||
1.65%, due 11/1/48 | 1,075,000 | 1,082,030 | ||||||
1.70%, due 12/1/49 | 5,000,000 | 5,150,450 | ||||||
2.35%, due 10/1/32 | 300,000 | 300,555 | ||||||
City of Atlanta GA, Airport Passenger Facility Charge, Revenue Bonds | 500,000 | 538,645 | ||||||
City of Atlanta GA, Department of Aviation, Revenue Bonds | ||||||||
Series B | 500,000 | 537,255 | ||||||
Series C | 2,000,000 | 2,016,220 | ||||||
Development Authority of Burke County, Revenue Bonds Fifth Series | 1,000,000 | 1,015,070 | ||||||
Georgia Municipal Electric Authority, Project 1, Revenue Bonds | 995,000 | 1,047,247 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Georgia (continued) |
| |||||||
Georgia State Road & Tollway Authority, Revenue Bonds | $ | 250,000 | $ | 256,955 | ||||
Main Street Natural Gas, Inc., Revenue Bonds | ||||||||
Series B | 750,000 | 850,717 | ||||||
Series C | 6,260,000 | 7,225,292 | ||||||
Series A | 550,000 | 584,876 | ||||||
Series A | 1,110,000 | 1,223,975 | ||||||
Series A | 265,000 | 275,876 | ||||||
Municipal Electric Authority of Georgia, Plant Vogtle Units 3 & 4 Project, Revenue Bonds | ||||||||
Series B | 350,000 | 381,994 | ||||||
5.00%, due 1/1/24 | 445,000 | 504,136 | ||||||
Municipal Electric Authority of Georgia, Revenue Bonds | ||||||||
Series HH | 500,000 | 503,650 | ||||||
5.00%, due 1/1/22 | 3,000,000 | 3,151,170 | ||||||
5.00%, due 1/1/23 | 4,550,000 | 4,979,656 | ||||||
5.00%, due 1/1/24 | 2,500,000 | 2,839,225 | ||||||
5.00%, due 1/1/25 | 1,000,000 | 1,174,300 | ||||||
Series A, Insured: BAM | 300,000 | 302,310 | ||||||
State of Georgia, Unlimited General Obligation | ||||||||
Series B | 5,000,000 | 5,038,800 | ||||||
Series H | 550,000 | 604,489 | ||||||
Series F | 550,000 | 606,661 | ||||||
|
| |||||||
42,945,783 | ||||||||
|
| |||||||
Guam 0.9% |
| |||||||
Guam Government Waterworks Authority, Revenue Bonds | 525,000 | 559,661 | ||||||
Guam Government Waterworks Authority, Water & Wastewater Systems Revenue, Revenue Bonds | ||||||||
Series A | 385,000 | 394,598 | ||||||
5.00%, due 7/1/24 | 400,000 | 453,200 |
Principal Amount | Value | |||||||
Guam (continued) |
| |||||||
Guam Government, Revenue Bonds | $ | 3,230,000 | $ | 3,237,267 | ||||
Guam Power Authority, Revenue Bonds | ||||||||
Series A, Insured: AGM | 200,000 | 216,918 | ||||||
Series A, Insured: AGM | 950,000 | 1,030,247 | ||||||
Port Authority of Guam, Revenue Bonds | ||||||||
Series C | 500,000 | 504,915 | ||||||
Series B | 400,000 | 420,360 | ||||||
Territory of Guam, Revenue Bonds | ||||||||
Series D | 2,740,000 | 2,742,630 | ||||||
Series A | 5,295,000 | 5,465,658 | ||||||
|
| |||||||
15,025,454 | ||||||||
|
| |||||||
Hawaii 0.1% |
| |||||||
State of Hawaii, Airports System Revenue, Certificate of Participation | 250,000 | 276,655 | ||||||
5.25%, due 8/1/25 (b) | 1,300,000 | 1,436,370 | ||||||
|
| |||||||
1,713,025 | ||||||||
|
| |||||||
Idaho 0.1% |
| |||||||
Idaho Health Facilities Authority, Ada County Coroner Project, Revenue Bonds | ||||||||
5.00%, due 9/1/23 | 170,000 | 191,536 | ||||||
5.00%, due 9/1/24 | 265,000 | 310,111 | ||||||
5.00%, due 9/1/25 | 285,000 | 345,101 | ||||||
Idaho Health Facilities Authority, St. Luke’s Health System Project, Revenue Bonds | 585,000 | 618,906 | ||||||
|
| |||||||
1,465,654 | ||||||||
|
| |||||||
Illinois 10.6% |
| |||||||
Carol Stream Park District, Limited General Obligation | ||||||||
Series C, Insured: BAM | 215,000 | 242,737 | ||||||
Series C, Insured: BAM | 450,000 | 520,709 | ||||||
Series C, Insured: BAM | 550,000 | 645,546 | ||||||
Chicago Board of Education, Unlimited General Obligation | ||||||||
Series A, Insured: AGM | 4,650,000 | 5,187,261 | ||||||
Series A, Insured: AGM | 900,000 | 1,065,060 |
20 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Illinois (continued) |
| |||||||
Chicago Midway International Airport, Revenue Bonds | ||||||||
Series A | $ | 750,000 | $ | 766,522 | ||||
Series A | 6,485,000 | 7,255,872 | ||||||
Series A | 875,000 | 968,362 | ||||||
Chicago O’Hare International Airport, Revenue Bonds | ||||||||
Series B | 370,000 | 372,531 | ||||||
Series C | 445,000 | 448,044 | ||||||
Series D | 200,000 | 201,368 | ||||||
Series D | 930,000 | 971,608 | ||||||
Series B | 2,000,000 | 2,105,740 | ||||||
Series D | 850,000 | 932,518 | ||||||
Series D | 150,000 | 168,629 | ||||||
Series E | 200,000 | 227,858 | ||||||
Chicago Park District, Limited General Obligation | 500,000 | 538,855 | ||||||
Chicago Park District, Unlimited General Obligation | ||||||||
Series E | 750,000 | 750,892 | ||||||
Series E | 800,000 | 829,440 | ||||||
Series F-2 | 400,000 | 457,700 | ||||||
Series F-2 | 550,000 | 643,929 | ||||||
Chicago Transit Authority, Revenue Bonds | 5,000,000 | 5,256,600 | ||||||
Chicago Transit Authority, Sales Tax Receipts, Revenue Bonds | ||||||||
5.25%, due 12/1/23 | 940,000 | 990,760 | ||||||
5.25%, due 12/1/24 | 610,000 | 642,940 |
Principal Amount | Value | |||||||
Illinois (continued) |
| |||||||
City of Berwyn IL, Unlimited General Obligation | ||||||||
Series A | $ | 820,000 | $ | 897,318 | ||||
Series A | 465,000 | 515,513 | ||||||
Series A | 705,000 | 789,353 | ||||||
City of Canton IL, Alternate Revenue Source, Unlimited General Obligation | ||||||||
Series A, Insured: BAM | 525,000 | 536,282 | ||||||
Series A, Insured: BAM | 635,000 | 660,000 | ||||||
Series A, Insured: BAM | 550,000 | 580,905 | ||||||
City of Chicago IL Waterworks, Second Lien Project, Revenue Bonds | 155,000 | 180,239 | ||||||
5.00%, due 11/1/26 | 460,000 | 531,553 | ||||||
City of Chicago IL, Unlimited General Obligation | ||||||||
Series C | 240,000 | 241,853 | ||||||
Series A | 790,000 | 810,516 | ||||||
Series C | 570,000 | 591,141 | ||||||
Series 2002B | 150,000 | 157,091 | ||||||
Series C | 3,720,000 | 3,890,032 | ||||||
Series 2002B | 170,000 | 178,726 | ||||||
Series A | 405,000 | 422,330 | ||||||
Series 2002B | 150,000 | 157,431 | ||||||
City of Chicago IL, Wastewater Transmission, Second Lien, Revenue Bonds | ||||||||
3.00%, due 1/1/21 | 500,000 | 501,845 | ||||||
4.00%, due 1/1/21 | 1,000,000 | 1,005,300 | ||||||
5.00%, due 1/1/24 | 150,000 | 168,228 | ||||||
City of Chicago IL, Waterworks Second Lien, Revenue Bonds | ||||||||
Series 2017-2 | 2,350,000 | 2,350,000 | ||||||
Series 2017-2 | 120,000 | 125,105 | ||||||
5.00%, due 11/1/22 | 500,000 | 539,395 | ||||||
5.00%, due 11/1/24 | 250,000 | 272,310 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Illinois (continued) |
| |||||||
City of Monmouth IL, Unlimited General Obligation | ||||||||
Series A, Insured: BAM | $ | 350,000 | $ | 372,596 | ||||
Series A, Insured: BAM | 365,000 | 399,420 | ||||||
Series A, Insured: BAM | 380,000 | 425,718 | ||||||
City of Mount Vernon IL, Unlimited General Obligation | ||||||||
Insured: BAM | 900,000 | 934,929 | ||||||
Insured: BAM | 1,150,000 | 1,231,385 | ||||||
Insured: BAM | 2,305,000 | 2,538,496 | ||||||
Insured: BAM | 2,400,000 | 2,711,952 | ||||||
Insured: BAM | 2,490,000 | 2,872,862 | ||||||
City of Peoria IL, Unlimited General Obligation | 485,000 | 596,143 | ||||||
City of Rock Island IL, Unlimited General Obligation | ||||||||
Insured: BAM | 220,000 | 235,288 | ||||||
Insured: BAM | 155,000 | 170,712 | ||||||
Insured: BAM | 175,000 | 197,929 | ||||||
Insured: BAM | 175,000 | 201,962 | ||||||
City of Rockford IL, Unlimited General Obligation | ||||||||
Series A, Insured: AGM | 100,000 | 100,407 | ||||||
Insured: BAM | 320,000 | 332,237 | ||||||
Series A, Insured: AGM | 130,000 | 134,971 | ||||||
Insured: BAM | 250,000 | 266,055 | ||||||
Series A, Insured: AGM | 135,000 | 144,023 | ||||||
Insured: BAM | 560,000 | 612,181 | ||||||
Series A, Insured: AGM | 140,000 | 153,317 |
Principal Amount | Value | |||||||
Illinois (continued) |
| |||||||
City of Rockford IL, Unlimited General Obligation (continued) | ||||||||
Insured: BAM | $ | 285,000 | $ | 319,459 | ||||
Series A, Insured: AGM | 290,000 | 325,937 | ||||||
City of Waukegan IL, Water & Sewer System, Revenue Bonds | ||||||||
Insured: AGM | 100,000 | 103,847 | ||||||
Insured: AGM | 100,000 | 110,161 | ||||||
Insured: AGM | 110,000 | 124,332 | ||||||
Insured: AGM | 150,000 | 172,863 | ||||||
Cook County Community Unit School District No. 401 Elmwood Park, Limited General Obligation | 1,340,000 | 1,344,650 | ||||||
Cook County Community Unit School District No. 401 Elmwood Park, UnLimited General Obligation | 500,000 | 524,015 | ||||||
Cook County High School District No. 205 Thornton Township, Limited General Obligation | 2,800,000 | 3,348,548 | ||||||
Cook County School District No. 122 Ridgeland, Unlimited General Obligation | ||||||||
Series A | 950,000 | 996,635 | ||||||
Cook County School District No. 94, Komarek School District, Unlimited General Obligation | ||||||||
Insured: BAM | 180,000 | 188,136 | ||||||
Insured: BAM | 340,000 | 368,716 | ||||||
Insured: BAM | 555,000 | 623,432 | ||||||
Insured: BAM | 370,000 | 428,627 | ||||||
Insured: BAM | 390,000 | 464,701 | ||||||
Cook County Township High School District No. 220 Reavis, Unlimited General Obligation | ||||||||
Insured: BAM | 760,000 | 831,182 | ||||||
Insured: BAM | 570,000 | 662,551 |
22 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Illinois (continued) |
| |||||||
County of Cook IL, Unlimited General Obligation | $ | 1,665,000 | $ | 1,669,878 | ||||
Crawford Hospital District, Unlimited General Obligation | ||||||||
Insured: AGM | 125,000 | 125,663 | ||||||
Insured: AGM | 100,000 | 103,702 | ||||||
Insured: AGM | 265,000 | 281,957 | ||||||
Insured: AGM | 280,000 | 305,074 | ||||||
Insured: AGM | 285,000 | 317,080 | ||||||
Insured: AGM | 300,000 | 339,114 | ||||||
Insured: AGM | 315,000 | 359,475 | ||||||
Illinois Finance Authority, Ann & Robert H. Lurie Children’s Hospital of Chicago, Revenue Bonds | 250,000 | 278,963 | ||||||
Illinois Finance Authority, Chicago International School Project, Revenue Bonds | 425,000 | 431,915 | ||||||
Illinois Finance Authority, Edward Elmhurst Obligated Group, Revenue Bonds | 300,000 | 302,064 | ||||||
Illinois Finance Authority, Illinois Wesleyan University, Revenue Bonds | ||||||||
4.00%, due 9/1/21 | 265,000 | 270,403 | ||||||
5.00%, due 9/1/22 | 560,000 | 594,989 | ||||||
Illinois Finance Authority, OSF Healthcare System, Revenue Bonds | 4,250,000 | 4,871,052 | ||||||
Illinois Finance Authority, University of Chicago Medical Center, Revenue Bonds | 550,000 | 558,074 | ||||||
Illinois Sports Facilities Authority, Revenue Bonds | 115,000 | 128,645 |
Principal Amount | Value | |||||||
Illinois (continued) |
| |||||||
Illinois State Toll Highway Authority, Revenue Bonds | ||||||||
Series A | $ | 420,000 | $ | 423,112 | ||||
Series A | 3,010,000 | 3,291,044 | ||||||
Illinois State University, Auxiliary Facilities System, Revenue Bonds | ||||||||
Series A, Insured: AGM | 505,000 | 513,555 | ||||||
Series B, Insured: AGM | 250,000 | 254,235 | ||||||
Series A, Insured: AGM | 425,000 | 449,561 | ||||||
Series B, Insured: AGM | 645,000 | 682,275 | ||||||
Joliet Park District, Limited General Obligation | 830,000 | 837,063 | ||||||
Kane County School District No. 131 Aurora East Side, Unlimited General Obligation | 580,000 | 619,057 | ||||||
Kankakee County School District No. 111, Limited General Obligation | ||||||||
Insured: BAM | 255,000 | 264,986 | ||||||
Insured: BAM | 370,000 | 404,221 | ||||||
Insured: BAM | 390,000 | 435,747 | ||||||
Kendall Kane & Will Counties Community Unit School District No. 308, Unlimited General Obligation | 1,000,000 | 1,033,560 | ||||||
Knox & Warren Counties Community Unit School District No. 205 Galesburg, Unlimited General Obligation | ||||||||
Series B, Insured: BAM | 590,000 | 649,030 | ||||||
Series A, Insured: BAM | 665,000 | 749,841 | ||||||
Series B, Insured: BAM | 625,000 | 703,475 | ||||||
Series A, Insured: BAM | 685,000 | 787,229 | ||||||
Series B, Insured: BAM | 640,000 | 735,846 | ||||||
Series A, Insured: BAM | 680,000 | 792,758 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Illinois (continued) |
| |||||||
La Salle County School District No. 141, Unlimited General Obligation | ||||||||
Insured: MAC | $ | 560,000 | $ | 561,501 | ||||
Insured: MAC | 585,000 | 604,984 | ||||||
Insured: MAC | 370,000 | 393,255 | ||||||
Lake County Community Consolidated School District No. 3 Beach Park, Unlimited General Obligation | ||||||||
Insured: AGM | 405,000 | 446,274 | ||||||
Insured: AGM | 450,000 | 507,114 | ||||||
Macon County School District No. 61, Unlimited General Obligation Insured: AGM | 750,000 | 822,570 | ||||||
Madison Macoupin Etc Counties Illinois Community College District No. 536, Lewis & Clark Community College, Unlimited General Obligation | ||||||||
Series A | 150,000 | 150,000 | ||||||
Series A | 70,000 | 73,056 | ||||||
5.00%, due 11/1/22 | 420,000 | 455,708 | ||||||
Metropolitan Pier & Exposition Authority, McCormick Place Expansion, Revenue Bonds | ||||||||
Insured: NATL-RE | 410,000 | 408,815 | ||||||
Insured: NATL-RE | 175,000 | 165,557 | ||||||
Metropolitan Water Reclamation District of Greater Chicago, Limited General Obligation | 4,200,000 | 4,406,556 | ||||||
Montgomery & Macoupin Counties Community Unit School District No. 12 Litchfield, Unlimited General Obligation | ||||||||
Series C, Insured: BAM | 295,000 | 313,505 | ||||||
Series C, Insured: BAM | 355,000 | 407,927 | ||||||
Series C, Insured: BAM | 380,000 | 443,316 |
Principal Amount | Value | |||||||
Illinois (continued) |
| |||||||
Montgomery & Macoupin Counties Community Unit School District No. 12 Litchfield, Unlimited General Obligation (continued) | ||||||||
Series C, Insured: BAM | $ | 405,000 | $ | 478,216 | ||||
Series C, Insured: BAM | 430,000 | 512,689 | ||||||
Northern Illinois University, Revenue Bonds | ||||||||
Series B, Insured: BAM | 260,000 | 264,134 | ||||||
Series B, Insured: BAM | 240,000 | 261,965 | ||||||
Series B, Insured: BAM | 850,000 | 985,116 | ||||||
Series B, Insured: BAM | 1,630,000 | 1,969,301 | ||||||
Public Building Commission of Chicago, Chicago Transit Authority, Revenue Bonds | 1,000,000 | 1,111,180 | ||||||
Railsplitter Tobacco Settlement Authority, Revenue Bonds | 1,000,000 | 1,189,830 | ||||||
Regional Transportation Authority, Revenue Bonds | ||||||||
Series A | 125,000 | 128,086 | ||||||
Series A, Insured: NATL-RE | 335,000 | 361,100 | ||||||
Insured: AGM | 200,000 | 205,800 | ||||||
Insured: AGM | 360,000 | 392,494 | ||||||
Series A, Insured: AMBAC | 1,275,000 | 1,275,000 | ||||||
Rock Island County Metropolitan Airport Authority, Unlimited General Obligation | ||||||||
Insured: AGM | 1,185,000 | 1,263,020 | ||||||
Insured: AGM | 1,170,000 | 1,280,331 | ||||||
Insured: AGM | 1,275,000 | 1,430,575 | ||||||
Insured: AGM | 1,325,000 | 1,517,072 | ||||||
Rock Island County School District No. 41 Rock Island, Unlimited General Obligation | 385,000 | 422,295 |
24 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Illinois (continued) |
| |||||||
Round Lake IL, Lakewood Grove Special Service Area No. 3 & 4, Special Tax Insured: BAM | $ | 499,000 | $ | 501,335 | ||||
Sales Tax Securitization Corp., Revenue Bonds | 1,250,000 | 1,295,587 | ||||||
Saline County Community Unit School District No. 3 Harrisburg, Unlimited General Obligation | 765,000 | 849,464 | ||||||
Sangamon County School District No. 186 Springfield, Unlimited General Obligation | ||||||||
Series C, Insured: AGM | 1,000,000 | 1,046,620 | ||||||
Series C, Insured: AGM | 1,000,000 | 1,075,200 | ||||||
Series C, Insured: AGM | 1,000,000 | 1,103,230 | ||||||
Series C, Insured: AGM | 875,000 | 988,172 | ||||||
Series C, Insured: AGM | 910,000 | 1,100,536 | ||||||
Series C, Insured: AGM | 955,000 | 1,180,179 | ||||||
Sauk Village, Unlimited General Obligation | ||||||||
Series B, Insured: BAM | 750,000 | 779,340 | ||||||
Series C, Insured: BAM | 130,000 | 135,086 | ||||||
Series C, Insured: BAM | 100,000 | 106,285 | ||||||
Series C, Insured: BAM | 1,030,000 | 1,121,546 | ||||||
South Sangamon Water Commission, Alternate Revenue Source, Unlimited General Obligation | ||||||||
Insured: AGM | 300,000 | 310,113 | ||||||
Insured: AGM | 165,000 | 174,829 | ||||||
Insured: AGM | 350,000 | 379,183 | ||||||
Insured: AGM | 250,000 | 275,250 |
Principal Amount | Value | |||||||
Illinois (continued) |
| |||||||
Southwestern Illinois Development Authority, Flood Prevention District Council Project, Revenue Bonds | ||||||||
4.00%, due 4/15/21 | $ | 450,000 | $ | 457,358 | ||||
4.00%, due 4/15/22 | 500,000 | 525,850 | ||||||
St. Clair County High School District No. 201 Belleville, Unlimited General Obligation | 1,180,000 | 1,232,522 | ||||||
State of Illinois, Revenue Bonds | 2,500,000 | 2,537,875 | ||||||
State of Illinois, Sales Tax, Revenue Bonds | ||||||||
5.00%, due 6/15/22 | 655,000 | 689,689 | ||||||
Series C | 95,000 | 100,031 | ||||||
State of Illinois, Unlimited General Obligation | ||||||||
Series D | 2,750,000 | 2,750,000 | ||||||
5.00%, due 8/1/21 | 3,295,000 | 3,381,230 | ||||||
Series A | 1,425,000 | 1,469,545 | ||||||
Series D | 4,500,000 | 4,815,765 | ||||||
1st Series, Insured: NATL-RE | 4,115,000 | 4,871,172 | ||||||
University of Illinois, Auxiliary System Facilities, Revenue Bonds | 175,000 | 186,466 | ||||||
Upper Illinois River Valley Development Authority, Morris Hospital, Revenue Bonds | 575,000 | 576,788 | ||||||
Village of Brookfield IL, Unlimited General Obligation | ||||||||
Insured: BAM | 250,000 | 261,360 | ||||||
Insured: BAM | 270,000 | 290,795 | ||||||
Village of McCook IL, Unlimited General Obligation | 230,000 | 253,239 | ||||||
Village of Stone Park, Unlimited General Obligation | ||||||||
Series B, Insured: BAM | 120,000 | 120,941 | ||||||
Series B, Insured: BAM | 135,000 | 144,578 | ||||||
Series B, Insured: BAM | 150,000 | 163,602 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Illinois (continued) |
| |||||||
Washington County Community Unit School District No. 10, Unlimited General Obligation | ||||||||
Insured: BAM | $ | 740,000 | $ | 745,150 | ||||
Insured: BAM | 580,000 | 604,180 | ||||||
West Chicago Park District, Unlimited General Obligation | ||||||||
Series B, Insured: BAM | 225,000 | 239,614 | ||||||
Series B, Insured: BAM | 485,000 | 525,430 | ||||||
Series B, Insured: BAM | 520,000 | 571,906 | ||||||
Western Illinois University, Revenue Bonds | ||||||||
Insured: BAM | 1,200,000 | 1,251,696 | ||||||
Insured: BAM | 1,000,000 | 1,097,720 | ||||||
Insured: BAM | 1,340,000 | 1,524,920 | ||||||
Insured: BAM | 1,400,000 | 1,609,132 | ||||||
White Oak Library District, Unlimited General Obligation | ||||||||
5.00%, due 1/1/21 | 355,000 | 357,620 | ||||||
5.00%, due 1/1/22 | 315,000 | 331,541 | ||||||
5.00%, due 1/1/23 | 430,000 | 470,278 | ||||||
Will County Community High School District No. 210 Lincoln-Way, Unlimited General Obligation | 685,000 | 647,770 | ||||||
Will County Community Unit School District No. 365 Valley View, Capital Appreciation, Unlimited General Obligation | 125,000 | 124,331 | ||||||
|
| |||||||
170,989,356 | ||||||||
|
| |||||||
Indiana 1.1% |
| |||||||
Brownsburg 1999 School Building Corp., Revenue Bonds | 255,000 | 265,947 | ||||||
City of Evansville IN, Medical School Project, Tax Allocation | 535,000 | 585,889 |
Principal Amount | Value | |||||||
Indiana (continued) |
| |||||||
Crown Point Multi School Building Corp., Revenue Bonds | $ | 3,130,000 | $ | 3,126,933 | ||||
Hammond Multi-School Building Corp., Revenue Bonds | ||||||||
Insured: State Intercept | 330,000 | 337,494 | ||||||
Insured: State Intercept | 555,000 | 584,359 | ||||||
Insured: State Intercept | 1,040,000 | 1,118,010 | ||||||
Indiana Finance Authority, Indiana University Health Obligated Group, Revenue Bonds | 250,000 | 272,798 | ||||||
Indiana Finance Authority, Marian University Project, Revenue Bonds | ||||||||
Series B | 450,000 | 449,878 | ||||||
Series A | 60,000 | 61,690 | ||||||
Series A | 50,000 | 52,971 | ||||||
Series A | 75,000 | 81,578 | ||||||
Indiana Health & Educational Facilities Financing Authority, Ascension Senior Health Credit Group, Revenue Bonds (a) | 1,400,000 | 1,419,344 | ||||||
Indiana Housing & Community Development Authority, Revenue Bonds | 1,345,000 | 1,385,807 | ||||||
IPS Multi-School Building Corp., Indianapolis Board of School Commissioners, Revenue Bonds Insured: State Intercept | 1,250,000 | 1,317,825 | ||||||
Terre Haute Sanitation District, Revenue Bonds | ||||||||
Series A, Insured: BAM | 320,000 | 335,200 | ||||||
Series A, Insured: BAM | 390,000 | 412,624 | ||||||
Series A, Insured: BAM | 350,000 | 373,093 | ||||||
Series A, Insured: BAM | 385,000 | 414,048 | ||||||
Series A, Insured: BAM | 400,000 | 433,932 |
26 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Indiana (continued) |
| |||||||
Terre Haute Sanitation District, Revenue Bonds (continued) | ||||||||
Series A, Insured: BAM | $ | 390,000 | $ | 426,625 | ||||
Series A, Insured: BAM | 275,000 | 302,973 | ||||||
Series A, Insured: BAM | 280,000 | 309,613 | ||||||
Town of Speedway IN, Sewage Works, Revenue Bonds | 550,000 | 600,369 | ||||||
Wayne Township Metropolitan School District, Limited General Obligation | ||||||||
Insured: State Intercept | 500,000 | 513,775 | ||||||
Insured: State Intercept | 1,010,000 | 1,065,510 | ||||||
Insured: State Intercept | 1,035,000 | 1,107,305 | ||||||
|
| |||||||
17,355,590 | ||||||||
|
| |||||||
Iowa 0.9% |
| |||||||
City of Altoona IA, Unlimited General Obligation | 235,000 | 238,509 | ||||||
City of New Hampton Municipal Electric Utility, Revenue Bonds | ||||||||
Insured: BAM | 135,000 | 140,037 | ||||||
Insured: BAM | 140,000 | 148,352 | ||||||
Insured: BAM | 140,000 | 151,159 | ||||||
City of Newton IA, Unlimited General Obligation | 520,000 | 532,490 | ||||||
Clinton Community School District, Unlimited General Obligation | ||||||||
Insured: AGM | 1,180,000 | 1,211,494 | ||||||
Insured: AGM | 620,000 | 665,012 | ||||||
Iowa Higher Education Loan Authority, Des Moines University Project, Revenue Bonds | ||||||||
5.00%, due 10/1/23 | 515,000 | 574,828 | ||||||
5.00%, due 10/1/24 | 550,000 | 633,584 | ||||||
5.00%, due 10/1/25 | 570,000 | 673,278 |
Principal Amount | Value | |||||||
Iowa (continued) |
| |||||||
Iowa State University of Science & Technology, Revenue Bonds Insured: BAM | $ | 1,215,000 | $ | 1,309,333 | ||||
Iowa Student Loan Liquidity Corp., Revenue Bonds (b) | ||||||||
Series A | 2,500,000 | 2,578,950 | ||||||
Series A | 275,000 | 306,545 | ||||||
Lewis Central Community School District, Revenue Bonds | ||||||||
Insured: BAM | 620,000 | 699,341 | ||||||
Insured: BAM | 570,000 | 660,476 | ||||||
Insured: BAM | 675,000 | 798,025 | ||||||
Sioux Center Community School District, Unlimited General Obligation | ||||||||
Insured: AGM | 755,000 | 772,101 | ||||||
Insured: AGM | 350,000 | 373,856 | ||||||
Southern Iowa Rural Water Association, Revenue Bonds | 395,000 | 435,061 | ||||||
State of Iowa, Revenue Bonds | 130,000 | 162,503 | ||||||
Waterloo Community School District, Revenue Bonds | ||||||||
Insured: AGM | 125,000 | 136,263 | ||||||
Insured: AGM | 450,000 | 504,099 | ||||||
Insured: AGM | 450,000 | 516,951 | ||||||
Insured: AGM | 100,000 | 117,074 | ||||||
|
| |||||||
14,339,321 | ||||||||
|
| |||||||
Kansas 0.0%‡ |
| |||||||
Franklin County Unified School District No. 287 West Franklin, Unlimited General Obligation | 305,000 | 344,376 | ||||||
|
| |||||||
Kentucky 1.3% |
| |||||||
County of Carroll KY, Kentucky Utilities Co., Revenue Bonds | 3,000,000 | 3,007,260 |
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, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Kentucky (continued) |
| |||||||
Kentucky Asset Liability Commission, Revenue Bonds 1st Series | $ | 1,180,000 | $ | 1,224,710 | ||||
Kentucky Bond Development Corp., Lexington Center Corp. Project, Revenue Bonds | 550,000 | 590,783 | ||||||
Kentucky Bond Development Corp., Revenue Bonds | 725,000 | 753,456 | ||||||
Kentucky Economic Development Finance Authority, Revenue Bonds | 3,450,000 | 3,883,389 | ||||||
Kentucky Public Energy Authority, Revenue Bonds | ||||||||
Series C | 275,000 | 281,870 | ||||||
Series C | 390,000 | 412,320 | ||||||
Series C | 390,000 | 423,992 | ||||||
Series C | 6,560,000 | 7,660,112 | ||||||
Louisville & Jefferson County Metropolitan Government, Louisville Gas & Electric Co., Revenue Bonds | 3,000,000 | 3,013,020 | ||||||
|
| |||||||
21,250,912 | ||||||||
|
| |||||||
Louisiana 2.3% |
| |||||||
Calcasieu Parish School District No. 31, Unlimited General Obligation Insured: BAM | 160,000 | 183,717 | ||||||
City of New Orleans LA, Sewerage Service, Revenue Bonds | 820,000 | 876,030 | ||||||
City of New Orleans LA, Water System, Revenue Bonds | 400,000 | 466,044 | ||||||
City of Shreveport LA, Water & Sewer, Revenue Bonds | 210,000 | 260,589 | ||||||
Jefferson Sales Tax District, Revenue Bonds | 1,295,000 | 1,567,274 |
Principal Amount | Value | |||||||
Louisiana (continued) |
| |||||||
Louisiana Local Government Environmental Facilities & Community Development Authority, City of Crowley Project, Revenue Bonds | ||||||||
Insured: BAM | $ | 515,000 | $ | 561,891 | ||||
Insured: BAM | 535,000 | 599,537 | ||||||
Louisiana Local Government Environmental Facilities & Community Development Authority, Innovative Student Facilities, Inc. Project, Revenue Bonds | ||||||||
Insured: BAM | 290,000 | 312,017 | ||||||
Insured: BAM | 230,000 | 256,158 | ||||||
Insured: BAM | 225,000 | 258,912 | ||||||
Insured: BAM | 250,000 | 295,690 | ||||||
Louisiana Public Facilities Authority, Entergy Louisiana, Revenue Bonds | 3,825,000 | 3,860,955 | ||||||
Louisiana Stadium & Exposition District, Revenue Bonds | ||||||||
Series A | 1,000,000 | 1,064,180 | ||||||
5.00%, due 7/3/23 | 8,500,000 | 9,205,415 | ||||||
Parish of St. John the Baptist LA, Marathon Oil Corp Project, Revenue Bonds (a) | ||||||||
Series B1 | 9,925,000 | 9,978,992 | ||||||
Series B2 | 6,525,000 | 6,599,319 | ||||||
Regional Transit Authority, Sales Tax. Revenue Bonds | 500,000 | 501,865 | ||||||
Shreveport Water & Sewer Revenue, Junior Lien, Revenue Bonds | 275,000 | 304,909 | ||||||
|
| |||||||
37,153,494 | ||||||||
|
| |||||||
Maine 0.2% |
| |||||||
Maine Finance Authority, Revenue Bonds (b) | ||||||||
Series 2019A-1, Insured: AGM | 500,000 | 537,495 |
28 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Maine (continued) |
| |||||||
Maine Finance Authority, Revenue Bonds (b) (continued) | ||||||||
Series 2019A-1, Insured: AGM | $ | 545,000 | $ | 604,993 | ||||
Series 2019A-1, Insured: AGM | 520,000 | 594,771 | ||||||
Series 2019A-1, Insured: AGM | 475,000 | 557,256 | ||||||
Maine Health & Higher Educational Facilities Authority, Revenue Bonds | 1,045,000 | 1,207,121 | ||||||
|
| |||||||
3,501,636 | ||||||||
|
| |||||||
Maryland 1.2% |
| |||||||
County of Frederick MD, Special Tax | ||||||||
Series A | 1,000,000 | 1,113,990 | ||||||
Series A | 1,060,000 | 1,222,519 | ||||||
County of Montgomery MD, Unlimited General Obligation | ||||||||
Series D | 600,000 | 600,000 | ||||||
Series B | 3,765,000 | 4,617,471 | ||||||
Maryland Economic Development Corp. University of Maryland College Park Project, Revenue Bonds | 300,000 | 335,862 | ||||||
Maryland Economic Development Corp., Seagirt Marine Terminal Project, Revenue Bonds | ||||||||
Series B | 755,000 | 771,165 | ||||||
3.40%, due 6/1/23 | 750,000 | 776,423 | ||||||
Series B | 3,925,000 | 4,082,903 | ||||||
Series B | 1,000,000 | 1,061,880 | ||||||
Maryland Health & Higher Educational Facilities Authority, Broadmead Issue, Revenue Bonds | 1,750,000 | 1,765,417 | ||||||
Maryland Health & Higher Educational Facilities Authority, John Hopkins University, Revenue Bonds | 345,000 | 385,865 |
Principal Amount | Value | |||||||
Maryland (continued) |
| |||||||
Maryland State Transportation Authority, Baltimore/Washington International Thurgood Marshall Airport, Revenue Bonds | $ | 660,000 | $ | 701,540 | ||||
Maryland State Transportation Authority, Revenue Bonds | 1,000,000 | 1,099,600 | ||||||
State of Maryland, Unlimited General Obligation | ||||||||
Series C | 350,000 | 362,492 | ||||||
Series C | 540,000 | 585,014 | ||||||
|
| |||||||
19,482,141 | ||||||||
|
| |||||||
Massachusetts 1.0% |
| |||||||
City of Quincy MA, State Qualified Municipal Purpose Loan, Limited General Obligation | 375,000 | 376,399 | ||||||
Commonwealth of Massachusetts, Consolidated Loan, Limited General Obligation | 500,000 | 539,430 | ||||||
Commonwealth of Massachusetts, Limited General Obligation | 285,000 | 295,679 | ||||||
Commonwealth of Massachusetts, Revenue Bonds | ||||||||
Insured: NATL-RE | 500,000 | 503,890 | ||||||
Insured: NATL-RE | 830,000 | 878,878 | ||||||
Insured: NATL-RE | 2,855,000 | 3,133,534 | ||||||
Insured: NATL-RE | 6,380,000 | 7,556,536 | ||||||
Massachusetts Bay Transportation Authority, Revenue Bonds | 360,000 | 388,263 | ||||||
Massachusetts State College Building Authority, Revenue Bonds | 625,000 | 639,944 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 29 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Massachusetts (continued) |
| |||||||
University of Massachusetts Building Authority, Revenue Bonds | $ | 1,900,000 | $ | 1,989,965 | ||||
|
| |||||||
16,302,518 | ||||||||
|
| |||||||
Michigan 2.8% |
| |||||||
Allen Park Public School District, Unlimited General Obligation | 630,000 | 730,309 | ||||||
Allendale Public School District, Unlimited General Obligation | 525,000 | 572,156 | ||||||
Caledonia Community Schools, Unlimited General Obligation | 570,000 | 610,453 | ||||||
City of Detroit MI, Sewage Disposal System, Second Lien, Revenue Bonds | 1,500,000 | 1,619,730 | ||||||
City of Manistee MI, Limited General Obligation | ||||||||
Insured: AGM | 200,000 | 217,992 | ||||||
Insured: AGM | 270,000 | 299,093 | ||||||
County of Genesee MI, Revenue Bonds | ||||||||
Series A, Insured: BAM | 155,000 | 160,211 | ||||||
Series A, Insured: BAM | 150,000 | 158,672 | ||||||
Series A, Insured: BAM | 160,000 | 172,694 | ||||||
County of Genesee MI, Water Supply System, Limited General Obligation | 500,000 | 549,450 | ||||||
Fitzgerald Public School District, Unlimited General Obligation | 870,000 | 967,457 | ||||||
Flint Public Library, Library Building & Site Bond, Unlimited General Obligation Insured: AGM | 1,060,000 | 1,185,652 |
Principal Amount | Value | |||||||
Michigan (continued) |
| |||||||
Michigan Finance Authority, Energy Conservation Local Project, Revenue Bonds | ||||||||
4.00%, due 6/15/22 | $ | 100,000 | $ | 105,129 | ||||
4.00%, due 6/15/23 | 240,000 | 258,986 | ||||||
4.00%, due 6/15/24 | 270,000 | 298,809 | ||||||
4.00%, due 6/15/25 | 200,000 | 226,192 | ||||||
4.00%, due 6/15/26 | 385,000 | 442,646 | ||||||
Michigan Finance Authority, Kettering University Project, Revenue Bonds | ||||||||
5.00%, due 9/1/22 | 175,000 | 187,910 | ||||||
5.00%, due 9/1/24 | 200,000 | 226,708 | ||||||
5.00%, due 9/1/27 | 550,000 | 661,380 | ||||||
5.00%, due 9/1/28 | 500,000 | 610,155 | ||||||
Michigan Finance Authority, Revenue Bonds | ||||||||
Series A-1 | 8,000,000 | 8,015,440 | ||||||
Series A, Class 1 | 1,000,000 | 1,094,390 | ||||||
Series 25-A | 1,700,000 | 1,752,360 | ||||||
Series 25-A | 1,775,000 | 1,881,553 | ||||||
Series A, Class 1 | 1,000,000 | 1,201,390 | ||||||
Michigan Finance Authority, Revenue Notes | 12,000,000 | 12,361,320 | ||||||
Michigan Finance Authority, Trinity Health Credit Group, Revenue Bonds | 200,000 | 209,550 | ||||||
Michigan Finance Authority, Wayne County Criminal Justice Center Project, Revenue Bonds | 500,000 | 544,385 | ||||||
Michigan Strategic Fund, Detroit Edison Project, Revenue Bonds | 2,000,000 | 2,007,220 | ||||||
Michigan Strategic Fund, Ltd., Revenue Bonds | 1,170,000 | 1,208,341 | ||||||
South Huron Valley Utility Authority, Revenue Bonds | ||||||||
Insured: BAM | 360,000 | 371,743 | ||||||
Insured: BAM | 480,000 | 504,307 |
30 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Michigan (continued) |
| |||||||
South Huron Valley Utility Authority, Revenue Bonds (continued) | ||||||||
Insured: BAM | $ | 500,000 | $ | 551,450 | ||||
Insured: BAM | 515,000 | 580,884 | ||||||
State of Michigan, Revenue Bonds | 475,000 | 545,690 | ||||||
State of Michigan, School Loan, Unlimited General Obligation | 715,000 | 715,000 | ||||||
Wayne County Airport Authority, Revenue Bonds | ||||||||
Series A, Insured: AGM | 1,000,000 | 1,002,820 | ||||||
Series C | 500,000 | 501,810 | ||||||
|
| |||||||
45,311,437 | ||||||||
|
| |||||||
Minnesota 0.5% |
| |||||||
Becker Independent School District No. 726, Unlimited General Obligation | ||||||||
Series A, | 375,000 | 394,927 | ||||||
Series A, | 730,000 | 800,416 | ||||||
Series A, | 560,000 | 638,075 | ||||||
City of Minneapolis MN, Convention Center, Unlimited General Obligation | 5,000,000 | 4,980,550 | ||||||
Minneapolis-St. Paul Metropolitan Airports Commission, Revenue Bonds Subseries B | 200,000 | 217,694 | ||||||
3.50%, due 1/1/24 | 270,000 | 271,094 | ||||||
|
| |||||||
7,302,756 | ||||||||
|
| |||||||
Mississippi 0.3% |
| |||||||
Mississippi Development Bank, Hinds County School District Project, Revenue Bonds | 330,000 | 362,291 | ||||||
Mississippi Development Bank, Jackson Mississippi Project, Revenue Bonds Insured: AGM | 1,385,000 | 1,405,955 |
Principal Amount | Value | |||||||
Mississippi (continued) |
| |||||||
Mississippi Development Bank, Jackson Water & Sewer System Project, Revenue Bonds | $ | 1,000,000 | $ | 1,002,880 | ||||
Mississippi Development Bank, Municipal Energy Agency of Mississippi, Revenue Bonds | ||||||||
Insured: AGM | 500,000 | 507,240 | ||||||
Insured: AGM | 300,000 | 353,157 | ||||||
Mississippi Gaming Tax, Revenue Bonds | 1,000,000 | 1,082,730 | ||||||
West Rankin Utility Authority, Revenue Bonds | 435,000 | 509,733 | ||||||
|
| |||||||
5,223,986 | ||||||||
|
| |||||||
Missouri 0.8% |
| |||||||
City of St. Louis MO, Airport, Revenue Bonds | 3,000,000 | 3,338,430 | ||||||
Kansas City Industrial Development Authority, Downtown Redevelopment District, Revenue Bonds | 4,420,000 | 4,591,231 | ||||||
Kansas City Municipal Assistance Corp., Capital Appreciation, Revenue Bonds | 880,000 | 864,406 | ||||||
Lincoln University, Auxiliary Systems, Revenue Bonds | ||||||||
Insured: AGM | 300,000 | 320,646 | ||||||
Insured: AGM | 320,000 | 355,683 | ||||||
Missouri Health & Educational Facilities Authority, A.T. Still University of Health Sciences, Revenue Bonds | 1,000,000 | 1,009,100 | ||||||
Missouri Highway & Transportation Commission, Federal Reimbursement, Revenue Bonds | 2,610,000 | 2,619,318 | ||||||
|
| |||||||
13,098,814 | ||||||||
|
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 31 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Montana 0.4% |
| |||||||
Gallatin County School District No. 72 Ophir, Unlimited General Obligation | ||||||||
Series A | $ | 340,000 | $ | 343,611 | ||||
Series A | 290,000 | 297,430 | ||||||
Series A | 250,000 | 259,815 | ||||||
3.00%, due 7/1/21 | 500,000 | 508,605 | ||||||
4.00%, due 7/1/22 | 450,000 | 476,406 | ||||||
4.00%, due 7/1/23 | 315,000 | 343,907 | ||||||
4.00%, due 7/1/25 | 715,000 | 825,996 | ||||||
4.00%, due 7/1/26 | 750,000 | 884,407 | ||||||
Montana Facilities Finance Authority, Kalispell Regional Medical Center, Revenue Bonds | 915,000 | 947,501 | ||||||
State of Montana, Unlimited General Obligation | ||||||||
Series C | 275,000 | 284,771 | ||||||
Series C | 225,000 | 243,673 | ||||||
Series C | 440,000 | 517,986 | ||||||
|
| |||||||
5,934,108 | ||||||||
|
| |||||||
Nebraska 0.7% |
| |||||||
Central Plains Energy, Project No. 4, Revenue Bonds | 8,920,000 | 9,995,573 | ||||||
Cheyenne County School District No. 1, Unlimited General Obligation | ||||||||
Series B, Insured: AGM | 585,000 | 629,747 | ||||||
Series B, Insured: AGM | 650,000 | 722,878 | ||||||
|
| |||||||
11,348,198 | ||||||||
|
| |||||||
Nevada 1.2% |
| |||||||
Clark County School District, Limited General Obligation | ||||||||
Series A, Insured: AGM | 750,000 | 778,170 | ||||||
Series A, Insured: AGM | 650,000 | 689,878 | ||||||
Series A, Insured: AGM | 650,000 | 703,801 | ||||||
Series A, Insured: AGM | 800,000 | 882,528 |
Principal Amount | Value | |||||||
Nevada (continued) |
| |||||||
Clark County School District, Limited General Obligation (continued) | ||||||||
Series C | $ | 1,520,000 | $ | 1,625,898 | ||||
Series C | 2,150,000 | 2,394,897 | ||||||
Series D | 575,000 | 623,317 | ||||||
Clark County, Limited General Obligation | 2,225,000 | 2,225,000 | ||||||
County of Clark Department of Aviation, Junior Lien, Revenue Bonds | 1,125,000 | 1,156,387 | ||||||
County of Clark Department of Aviation, Revenue Bonds | 3,000,000 | 3,085,710 | ||||||
County of Washoe, Sierra Pacific Power Co. Project, Revenue Bonds | 3,000,000 | 3,060,960 | ||||||
Las Vegas Convention & Visitors Authority, Revenue Bonds | ||||||||
Series B | 150,000 | 161,672 | ||||||
Series B | 290,000 | 342,415 | ||||||
Washoe County School District, School Improvement Bonds, Limited General Obligation | ||||||||
Series A | 300,000 | 326,184 | ||||||
Series A | 535,000 | 603,084 | ||||||
|
| |||||||
18,659,901 | ||||||||
|
| |||||||
New Hampshire 0.1% |
| |||||||
New Hampshire Business Finance Authority, Pennichuck Water Works, Inc. Project, Revenue Bonds (b) | ||||||||
Series A | 1,190,000 | 1,198,687 | ||||||
Series A | 600,000 | 657,138 | ||||||
|
| |||||||
1,855,825 | ||||||||
|
| |||||||
New Jersey 7.0% |
| |||||||
Bergen County Improvement Authority, Bergen New Bridge Medical Center, Revenue Bonds | 3,270,000 | 3,414,567 |
32 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
New Jersey (continued) |
| |||||||
Borough of Wenonah NJ, Unlimited General Obligation | ||||||||
Insured: BAM | $ | 365,000 | $ | 401,745 | ||||
Insured: BAM | 370,000 | 418,618 | ||||||
Buena Regional School District, Unlimited General Obligation | 220,000 | 255,946 | ||||||
Camden County Improvement Authority, Rowan University Project, Revenue Bonds | ||||||||
1.125%, due 7/1/21 | 1,350,000 | 1,350,904 | ||||||
Series A, Insured: BAM | 2,000,000 | 2,312,640 | ||||||
Cape May County Industrial Pollution Control Financing Authority, Atlantic City Electric Co., Revenue Bonds | 665,000 | 677,888 | ||||||
Casino Reinvestment Development Authority, Inc., Revenue Bonds Insured: AGM | 500,000 | 564,495 | ||||||
City of Atlantic City NJ, Tax Appeal, Unlimited General Obligation | 600,000 | 608,406 | ||||||
City of East Orange NJ, Water Utility, Unlimited General Obligation | 175,000 | 203,966 | ||||||
City of Elizabeth NJ, Unlimited General Obligation | 150,000 | 152,892 | ||||||
City of Millville NJ, Unlimited General Obligation | 250,000 | 256,483 | ||||||
City of Newark NJ, Unlimited General Obligation | ||||||||
Series C | 1,200,000 | 1,213,908 | ||||||
Series A, Insured: AGM | 1,000,000 | 1,123,550 | ||||||
Series A, Insured: AGM | 1,000,000 | 1,161,150 |
Principal Amount | Value | |||||||
New Jersey (continued) |
| |||||||
City of Newark NJ, Unlimited General Obligation (continued) | ||||||||
Series B, Insured: AGM | $ | 1,150,000 | $ | 1,335,323 | ||||
Series C, Insured: AGM | 145,000 | 168,367 | ||||||
Series A, Insured: AGM | 1,000,000 | 1,198,100 | ||||||
Series A, Insured: AGM | 700,000 | 857,507 | ||||||
City of Newark NJ, Unlimited General Obligation Notes | 3,500,000 | 3,572,310 | ||||||
City of Perth Amboy NJ, Unlimited General Obligation | ||||||||
Insured: AGM | 460,000 | 472,990 | ||||||
Insured: AGM | 615,000 | 658,696 | ||||||
Insured: AGM | 735,000 | 817,504 | ||||||
Insured: AGM | 760,000 | 876,417 | ||||||
County of Essex NJ, Unlimited General Obligation | 1,330,000 | 1,348,979 | ||||||
County of Mercer NJ, Unlimited General Obligation | 4,000,000 | 4,042,080 | ||||||
Essex County Improvement Authority, North Star Academy Charter School, Revenue Bonds (d) | ||||||||
4.00%, due 7/15/22 | 225,000 | 235,566 | ||||||
4.00%, due 7/15/24 | 200,000 | 218,296 | ||||||
4.00%, due 7/15/26 | 385,000 | 431,204 | ||||||
Garden State Preservation Trust, Capital Appreciation, Revenue Bonds | 175,000 | 169,470 | ||||||
Garden State Preservation Trust, Revenue Bonds | ||||||||
Series A | 1,200,000 | 1,266,420 | ||||||
Series C, Insured: AGM | 1,585,000 | 1,585,000 | ||||||
Series C, Insured: AGM | 1,175,000 | 1,229,332 | ||||||
Gloucester County Improvement Authority, Rowan University Project, Revenue Bonds | 1,300,000 | 1,500,148 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 33 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
New Jersey (continued) |
| |||||||
Greater Egg Harbor Regional High School District, Unlimited General Obligation Insured: AGM | $ | 225,000 | $ | 248,479 | ||||
Hamilton Township School District, Unlimited General Obligation Insured: BAM | 270,000 | 282,191 | ||||||
Manchester Township Board of Education, Unlimited General Obligation | ||||||||
Insured: BAM | 170,000 | 171,496 | ||||||
Insured: BAM | 355,000 | 383,027 | ||||||
Middle Township School District, Unlimited General Obligation | 250,000 | 273,543 | ||||||
Morris-Union Jointure Commission, Certificate of Participation | 420,000 | 465,683 | ||||||
New Brunswick Parking Authority, Revenue Bonds | ||||||||
Series B | 175,000 | 181,347 | ||||||
Series B | 700,000 | 755,097 | ||||||
Series B, Insured: BAM | 900,000 | 1,046,871 | ||||||
Series B, Insured: BAM | 900,000 | 1,081,692 | ||||||
New Jersey Economic Development Authority, Capital Appreciation, Revenue Bonds | 105,000 | 104,316 | ||||||
New Jersey Economic Development Authority, Cigarette Tax, Revenue Bonds | ||||||||
5.00%, due 6/15/21 | 1,250,000 | 1,266,663 | ||||||
5.00%, due 6/15/24 | 410,000 | 422,772 | ||||||
New Jersey Economic Development Authority, North Star Academy Charter School of Newark, Inc., Revenue Bonds | 200,000 | 205,678 | ||||||
New Jersey Economic Development Authority, Revenue Bonds | ||||||||
Series B, Insured: AGM | 3,000,000 | 2,994,900 |
Principal Amount | Value | |||||||
New Jersey (continued) |
| |||||||
New Jersey Economic Development Authority, Revenue Bonds (continued) | ||||||||
Series DDD | $ | 960,000 | $ | 984,864 | ||||
New Jersey Economic Development Authority, School Facilities Construction, Revenue Bonds | ||||||||
Series C | 985,000 | 1,001,459 | ||||||
Series FFF | 750,000 | 822,405 | ||||||
Series K, Insured: AMBAC | 1,320,000 | 1,326,864 | ||||||
Series N-1, Insured: NATL-RE | 1,500,000 | 1,676,895 | ||||||
New Jersey Educational Facilities Authority, William Paterson University, Revenue Bonds | 3,000,000 | 3,539,700 | ||||||
New Jersey Health Care Facilities Financing Authority, Barnabas Health, Revenue Bonds | 1,000,000 | 1,072,850 | ||||||
New Jersey Health Care Facilities Financing Authority, RWJ Barnabus Health Obligated Group, Revenue Bonds | 1,000,000 | 1,225,300 | ||||||
New Jersey Housing & Mortgage Finance Agency, Pilgrim Baptist Village I & II Project, Revenue Bonds | 2,650,000 | 2,671,862 | ||||||
New Jersey State Economic Development Authority, Revenue Bonds | ||||||||
Series A, Insured: BAM | 2,525,000 | 3,047,296 | ||||||
Series A, Insured: BAM | 150,000 | 179,745 | ||||||
New Jersey Transportation Trust Fund Authority, Capital Appreciation, Revenue Bonds | 750,000 | 714,105 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement, Revenue Bonds | ||||||||
Series A | 1,655,000 | 1,692,370 | ||||||
Series A | 125,000 | 136,750 |
34 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
New Jersey (continued) |
| |||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement, Revenue Bonds (continued) | ||||||||
Series A | $ | 8,675,000 | $ | 9,782,537 | ||||
5.00%, due 6/15/25 | 360,000 | 416,797 | ||||||
New Jersey Transportation Trust Fund Authority, Revenue Bonds | 215,000 | 191,206 | ||||||
New Jersey Transportation Trust Fund Authority, Transportation System, Revenue Bonds | ||||||||
Series AA | 500,000 | 512,950 | ||||||
Series A, Insured: AGM | 2,950,000 | 2,966,343 | ||||||
Series B, Insured: AMBAC | 1,190,000 | 1,335,013 | ||||||
Series B, Insured: AGC | 1,300,000 | 1,307,293 | ||||||
Series B, Insured: NATL-RE | 4,900,000 | 4,926,901 | ||||||
Series A | 375,000 | 394,380 | ||||||
North Brunswick Township Board of Education, Unlimited General Obligation | ||||||||
Insured: School Bond Reserve Fund | 540,000 | 553,532 | ||||||
Insured: School Bond Reserve Fund | 720,000 | 762,984 | ||||||
Passaic Valley Sewerage Commission, Revenue Bonds | ||||||||
Series J, Insured: AGM | 1,600,000 | 1,717,584 | ||||||
Series J, Insured: AGM | 1,800,000 | 1,972,800 | ||||||
Passaic Valley Sewerage Commissioners, Sewer System, Revenue Bonds | ||||||||
Series H, Insured: AGM | 300,000 | 301,068 | ||||||
Series H, Insured: AGM | 2,190,000 | 2,484,336 | ||||||
Plainfield Board of Education, Unlimited General Obligation | ||||||||
Insured: BAM | 1,000,000 | 1,168,670 | ||||||
Insured: BAM | 1,000,000 | 1,208,060 |
Principal Amount | Value | |||||||
New Jersey (continued) |
| |||||||
Plumsted Township School District, Unlimited General Obligation | ||||||||
Insured: AGM | $ | 405,000 | $ | 413,363 | ||||
Insured: AGM | 430,000 | 450,717 | ||||||
Insured: AGM | 440,000 | 475,772 | ||||||
South Jersey Port Corp., Marine Terminal, Revenue Bonds | 1,010,000 | 1,015,595 | ||||||
State of New Jersey, Unlimited General Obligation | ||||||||
5.00%, due 6/1/24 | 250,000 | 285,738 | ||||||
5.00%, due 6/1/26 | 275,000 | 322,812 | ||||||
Tobacco Settlement Financing Corp., Revenue Bonds | ||||||||
Series A | 500,000 | 512,885 | ||||||
Series A | 1,250,000 | 1,336,962 | ||||||
Series A | 1,000,000 | 1,111,940 | ||||||
Series A | 8,250,000 | 9,507,217 | ||||||
|
| |||||||
113,512,542 | ||||||||
|
| |||||||
New Mexico 0.2% |
| |||||||
Albuquerque Municipal School District No. 12, Unlimited General Obligation Insured: State Aid Witholding | 1,165,000 | 1,308,283 | ||||||
City of Farmington NM, Public Services Commission, Revenue Bonds | 1,000,000 | 1,004,080 | ||||||
County of Colfax NM, Revenue Bonds | ||||||||
Insured: BAM | 255,000 | 258,810 | ||||||
Insured: BAM | 265,000 | 274,188 | ||||||
Insured: BAM | 270,000 | 284,707 | ||||||
Insured: BAM | 280,000 | 301,148 | ||||||
Village of Los Ranchos de Albuquerque NM, Albuquerque Academy Project, Revenue Bonds | ||||||||
4.00%, due 9/1/23 | 135,000 | 144,759 | ||||||
4.00%, due 9/1/24 | 100,000 | 109,444 | ||||||
4.00%, due 9/1/25 | 150,000 | 167,357 | ||||||
5.00%, due 9/1/26 | 170,000 | 201,431 | ||||||
|
| |||||||
4,054,207 | ||||||||
|
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 35 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
New York 10.4% |
| |||||||
Albany County Airport Authority, Revenue Bonds | ||||||||
Series B | $ | 250,000 | $ | 260,933 | ||||
Series B | 250,000 | 268,820 | ||||||
Series B | 200,000 | 221,764 | ||||||
Series A | 540,000 | 621,119 | ||||||
Board of Cooperative Educational Services for the Sole Supervisory District, Revenue Notes | 7,000,000 | 7,049,980 | ||||||
Brookfield Central School District, Unlimited General Obligation Insured: AGM | 310,000 | 310,964 | ||||||
Broome County Local Development Corp., United Health Services, Revenue Bonds | ||||||||
Insured: AGM | 700,000 | 803,467 | ||||||
Insured: AGM | 800,000 | 950,240 | ||||||
Build NYC Resource Corp., Manhattan College Project, Revenue Bonds | 750,000 | 773,842 | ||||||
City of Long Beach NY, Limited General Obligation | 600,000 | 605,532 | ||||||
City of New York NY, Unlimited General Obligation | ||||||||
Series B-1 | 300,000 | 339,669 | ||||||
Series E | 510,000 | 527,692 | ||||||
Subseries H-3 | 300,000 | 323,745 | ||||||
Series A-1 | 175,000 | 180,682 | ||||||
Series E | 800,000 | 874,592 | ||||||
City of Newburgh NY, Limited General Obligation Notes | 4,260,000 | 4,298,809 | ||||||
City of Rochester NY, Limited General Obligation | 8,500,000 | 8,669,150 |
Principal Amount | Value | |||||||
New York (continued) |
| |||||||
City of Yonkers NY, Limited General Obligation | ||||||||
Series E, Insured: AGM | $ | 3,035,000 | $ | 3,408,517 | ||||
Series C, Insured: BAM | 1,485,000 | 1,673,075 | ||||||
County of Nassau NY, Limited General Obligation | ||||||||
Series B | 2,000,000 | 2,081,900 | ||||||
Series A | 375,000 | 381,919 | ||||||
County of Rockland NY, Limited General Obligation | ||||||||
2.00%, due 4/1/21 | 2,000,000 | 2,013,880 | ||||||
Series A, Insured: AGM | 1,015,000 | 1,050,596 | ||||||
Series C, Insured: AGM | 2,000,000 | 2,178,980 | ||||||
County of Suffolk NY, Limited General Obligation | ||||||||
Series B, Insured: AGM | 250,000 | 250,935 | ||||||
Insured: AGM | 430,000 | 453,805 | ||||||
Series B, Insured: AGM | 2,045,000 | 2,218,171 | ||||||
Series C, Insured: BAM | 495,000 | 543,253 | ||||||
Series A, Insured: BAM | 3,075,000 | 3,522,751 | ||||||
County of Suffolk NY, Public Improvement, Limited General Obligation | ||||||||
Series B, Insured: AGM | 3,300,000 | 3,972,573 | ||||||
Series A, Insured: AGM | 760,000 | 926,113 | ||||||
Dutchess County Local Development Corp., Health Quest Systems, Inc., Revenue Bonds | 500,000 | 531,745 | ||||||
Dutchess County Local Development Corp., Marist College Project, Revenue Bonds | 265,000 | 272,661 | ||||||
Dutchess County Local Development Corp., Nuvance Health Issue, Revenue Bonds | 1,725,000 | 1,770,212 |
36 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
New York (continued) |
| |||||||
Hempstead Town Local Development Corp., Molloy College Project, Revenue Bonds | $ | 435,000 | $ | 444,418 | ||||
Hempstead Union Free School District, Limited General Obligation Notes | 1,625,000 | 1,626,787 | ||||||
Long Island Power Authority, Revenue Bonds | 1,500,000 | 1,492,935 | ||||||
Metropolitan Transportation Authority, Green Bond, Revenue Bonds | ||||||||
Series A2 | 1,875,000 | 1,876,837 | ||||||
Series B | 1,245,000 | 1,301,212 | ||||||
Metropolitan Transportation Authority, Revenue Bonds | ||||||||
Series A | 500,000 | 500,320 | ||||||
Series A-2S | 2,000,000 | 1,998,700 | ||||||
Subseries B-2A | 1,500,000 | 1,511,205 | ||||||
Subseries C-2 | 1,300,000 | 1,314,963 | ||||||
Series C, Insured: AGM | 500,000 | 521,220 | ||||||
Series A | 6,160,000 | 6,418,658 | ||||||
Series D-1 | 835,000 | 849,529 | ||||||
Series A-1 | 950,000 | 966,644 | ||||||
Series A | 975,000 | 1,044,781 | ||||||
Series D | 2,500,000 | 2,573,875 | ||||||
Series B, Insured: AMBAC | 7,695,000 | 8,511,363 | ||||||
Monroe County Industrial Development Corp, Rochester Regional Health Project, Revenue Bonds | ||||||||
5.00%, due 12/1/23 | 700,000 | 785,008 | ||||||
5.00%, due 12/1/25 | 1,250,000 | 1,485,625 |
Principal Amount | Value | |||||||
New York (continued) |
| |||||||
Monroe County Industrial Development Corp., Rochester Schools Modernization Project, Revenue Bonds | $ | 250,000 | $ | 288,862 | ||||
Nassau County Local Economic Assistance Corp., Winthrop-University Hospital Project, Revenue Bonds | 1,000,000 | 1,072,960 | ||||||
New York City Housing Development Corp., Revenue Bonds | ||||||||
Series C-2 | 200,000 | 200,266 | ||||||
New York State Dormitory Authority, General Purpose Bonds, Revenue Bonds | 750,000 | 820,327 | ||||||
New York State Dormitory Authority, Interagency Council Pooled Loan Program, Revenue Bonds | ||||||||
Subseries A-1 | 255,000 | 261,072 | ||||||
Subseries A-1 | 400,000 | 422,852 | ||||||
Subseries A-1 | 430,000 | 466,718 | ||||||
New York State Dormitory Authority, Montefiore Obligated Group, Revenue Bonds | 1,535,000 | 1,784,637 | ||||||
New York State Dormitory Authority, North Shore Long Island Jewish Obligated Group, Revenue Bonds | 320,000 | 326,602 | ||||||
New York State Dormitory Authority, Revenue Bonds | ||||||||
Series A, Insured: State Aid Witholding | 4,150,000 | 4,657,628 | ||||||
Series A | 665,000 | 769,478 | ||||||
New York State Dormitory Authority, Sales Tax, Revenue Bonds | 1,000,000 | 1,108,740 | ||||||
New York State Dormitory Authority, School District Revenue Financing Program, Revenue Bonds | 1,000,000 | 1,085,360 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 37 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
New York (continued) |
| |||||||
New York State Dormitory Authority, St. Joseph’s College, Revenue Bonds | ||||||||
Series A | $ | 385,000 | $ | 393,797 | ||||
Series A | 420,000 | 443,377 | ||||||
Series A | 880,000 | 955,944 | ||||||
New York State Energy Research & Development Authority, Green, Revenue Bonds | 1,100,000 | 1,121,901 | ||||||
New York State Energy Research & Development Authority, Revenue Bonds | 1,100,000 | 1,117,952 | ||||||
New York State Environmental Facilities Corp., State Water Revolving Fund, Revenue Bonds | 110,000 | 131,199 | ||||||
New York State Housing Finance Agency, Affordable Housing, Revenue Bonds | 1,500,000 | 1,507,200 | ||||||
New York State Thruway Authority, Revenue Bonds | ||||||||
Series K | 400,000 | 402,848 | ||||||
Series L | 115,000 | 120,887 | ||||||
Series A | 300,000 | 305,241 | ||||||
New York Transportation Development Corp., LaGuardia Airport Terminals C&D Redevelopment Project, Revenue Bonds (b) | ||||||||
5.00%, due 1/1/22 | 5,000,000 | 5,127,950 | ||||||
5.00%, due 1/1/23 | 5,000,000 | 5,212,000 | ||||||
New York Transportation Development Corp., Terminal One Group Association L.P., Revenue Bonds | 2,000,000 | 2,010,700 | ||||||
Niagara Area Development Corp., Niagara University Project, Revenue Bonds | 525,000 | 525,488 | ||||||
Niagara Falls City School District, High School Facilities, Certificate of Participation | 1,670,000 | 1,858,526 |
Principal Amount | Value | |||||||
New York (continued) |
| |||||||
Niagara Falls City School District, Unlimited General Obligation Insured: BAM | $ | 1,375,000 | $ | 1,632,524 | ||||
Niagara Frontier Transportation Authority, Buffalo Niagara International Airport, Revenue Bonds (b) | ||||||||
Series A | 1,850,000 | 1,881,968 | ||||||
Series A | 3,020,000 | 3,295,605 | ||||||
Onondaga Civic Development Corp, Upstate Properties Development, Inc., Revenue Bonds | ||||||||
Insured: BAM | 500,000 | 500,100 | ||||||
Insured: BAM | 655,000 | 654,810 | ||||||
Insured: BAM | 690,000 | 689,124 | ||||||
Insured: BAM | 700,000 | 697,732 | ||||||
Onondaga County Resource Recovery Agency, Revenue Bonds | 155,000 | 158,550 | ||||||
Port Authority of New York & New Jersey, Consolidated 173rd, Revenue Bonds | 220,000 | 231,563 | ||||||
Port Authority of New York & New Jersey, Consolidated 175th, Revenue Bonds | 50,000 | 50,179 | ||||||
Port Authority of New York & New Jersey, Revenue Bonds | ||||||||
Series 179 | 890,000 | 893,177 | ||||||
Series 202 | 375,000 | 390,679 | ||||||
Series 178 | 265,000 | 297,932 | ||||||
St. Lawrence County Industrial Development Agency, Clarkson University Project, Revenue Bonds | 260,000 | 265,086 | ||||||
Town of Oyster Bay NY, Limited General Obligation | ||||||||
Insured: BAM | 1,755,000 | 1,772,269 | ||||||
2.00%, due 11/1/21 | 835,000 | 846,490 |
38 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
New York (continued) |
| |||||||
Town of Oyster Bay NY, Limited General Obligation (continued) | ||||||||
Insured: BAM | $ | 110,000 | $ | 115,019 | ||||
4.00%, due 11/1/22 | 820,000 | 874,218 | ||||||
Insured: BAM | 365,000 | 402,748 | ||||||
Insured: BAM | 115,000 | 127,885 | ||||||
Insured: BAM | 930,000 | 1,055,885 | ||||||
Insured: BAM | 550,000 | 639,353 | ||||||
Town of Oyster Bay NY, Public Improvement Project, Limited General Obligation | 775,000 | 775,000 | ||||||
Triborough Bridge & Tunnel Authority, Revenue Bonds | ||||||||
Series B | 3,000,000 | 3,004,710 | ||||||
Insured: NATL-RE | 200,000 | 200,348 | ||||||
Utica School District, Unlimited General Obligation Notes | 8,000,000 | 8,078,800 | ||||||
Wellsville Central School District, Unlimited General Obligation | 370,000 | 370,980 | ||||||
West Islip Union Free School District, Limited General Obligation Notes Insured: State Aid Witholding | 11,000,000 | 11,091,410 | ||||||
Whitesboro Central School District, Unlimited General Obligation | 2,325,000 | 2,667,937 | ||||||
|
| |||||||
167,718,759 | ||||||||
|
| |||||||
North Carolina 1.1% |
| |||||||
Charlotte Airport Revenue, Charlotte Douglas International Airport, Revenue Bonds | 550,000 | 561,984 | ||||||
New Hanover County NC, New Hanover Regional Medical Center, Revenue Bonds | 690,000 | 716,537 |
Principal Amount | Value | |||||||
North Carolina (continued) |
| |||||||
North Carolina Turnpike Authority, Revenue Bonds | ||||||||
5.00%, due 1/1/22 | $ | 350,000 | $ | 367,413 | ||||
5.00%, due 2/1/24 | 14,000,000 | 15,831,200 | ||||||
State of North Carolina, Revenue Bonds | 200,000 | 200,000 | ||||||
Winston-Salem State University, Revenue Bonds | 500,000 | 560,580 | ||||||
|
| |||||||
18,237,714 | ||||||||
|
| |||||||
North Dakota 0.5% |
| |||||||
County of Ward ND, Limited General Obligation | ||||||||
Insured: AGM | 3,000,000 | 3,056,880 | ||||||
Insured: AGM | 5,300,000 | 5,640,366 | ||||||
|
| |||||||
8,697,246 | ||||||||
|
| |||||||
Ohio 2.6% |
| |||||||
Akron Bath Copley Joint Township Hospital District, Summa Health Obligated Group, Revenue Bonds | ||||||||
5.00%, due 11/15/25 | 250,000 | 296,497 | ||||||
5.00%, due 11/15/26 | 400,000 | 484,032 | ||||||
Bethel Local School District, School Facilities, Certificate of Participation | ||||||||
Insured: BAM | 120,000 | 128,441 | ||||||
Insured: BAM | 175,000 | 192,932 | ||||||
Insured: BAM | 250,000 | 282,820 | ||||||
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds | 3,000,000 | 3,065,160 | ||||||
City of Cleveland OH, Airport System, Revenue Bonds (b) | ||||||||
Series A | 500,000 | 503,105 | ||||||
Series B | 250,000 | 261,035 | ||||||
Series B | 400,000 | 434,128 | ||||||
City of Middleburg Heights OH, Southwest General Health Center, Revenue Bonds | ||||||||
1.899%, due 8/1/21 | 300,000 | 302,205 | ||||||
1.949%, due 8/1/22 | 200,000 | 203,450 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 39 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Ohio (continued) |
| |||||||
City of Middleburg Heights OH, Southwest General Health Center, Revenue Bonds (continued) | ||||||||
Series A | $ | 145,000 | $ | 148,545 | ||||
Series A | 160,000 | 169,080 | ||||||
Series A | 125,000 | 136,074 | ||||||
Series A | 130,000 | 145,253 | ||||||
Series A | 150,000 | 171,691 | ||||||
City of Sharonville OH, Revenue Bonds | ||||||||
Insured: BAM | 175,000 | 181,286 | ||||||
Insured: BAM | 300,000 | 319,881 | ||||||
Insured: BAM | 580,000 | 634,694 | ||||||
Insured: BAM | 745,000 | 835,272 | ||||||
Insured: BAM | 715,000 | 817,888 | ||||||
Cleveland Department of Public Utilities Division of Public Power, Revenue Bonds | 2,645,000 | 2,649,047 | ||||||
Cleveland Municipal School District, Unlimited General Obligation | 1,945,000 | 2,041,978 | ||||||
Dayton International Airport, Revenue Bonds | ||||||||
Series B; Insured: AGM | 250,000 | 250,590 | ||||||
Series A: Insured: AGM | 945,000 | 947,807 | ||||||
Series A, Insured: AGM | 585,000 | 618,117 | ||||||
Hillsdale Local School District, Ohio School Facilities Project, Certificate of Participation | ||||||||
Insured: BAM | 1,200,000 | 1,282,872 | ||||||
Insured: BAM | 675,000 | 743,641 |
Principal Amount | Value | |||||||
Ohio (continued) |
| |||||||
Lancaster Port Authority, Revenue Bonds | $ | 5,000,000 | $ | 5,867,500 | ||||
Ohio Air Quality Development Authority, American Electric Power Co. Project, Revenue Bonds (a) | ||||||||
Series B | 4,000,000 | 4,137,000 | ||||||
2.40%, due 12/1/38 | 5,040,000 | 5,203,397 | ||||||
Ohio Air Quality Development Authority, Ohio Valley Electric Corp., Revenue Bonds | 2,500,000 | 2,639,475 | ||||||
Ohio Higher Educational Facility Commission, Ohio Wesleyan University 2019 Project, Revenue Bonds | 385,000 | 414,914 | ||||||
Port Authority of Greater Cincinnati Development Authority, Convention Center Hotel Acquisition & Demolition Project, Revenue Bonds | 850,000 | 846,736 | ||||||
State of Ohio, Premier Health Partners, Revenue Bonds | ||||||||
5.00%, due 11/15/24 | 135,000 | 154,107 | ||||||
5.00%, due 11/15/25 | 140,000 | 163,500 | ||||||
5.00%, due 11/15/26 | 140,000 | 166,286 | ||||||
State of Ohio, Revenue Bonds | 1,120,000 | 1,126,149 | ||||||
State of Ohio, Unlimited General Obligation | 2,000,000 | 2,050,400 | ||||||
University of Akron, Revenue Bonds | 1,770,000 | 1,782,337 | ||||||
|
| |||||||
42,799,322 | ||||||||
|
| |||||||
Oklahoma 0.2% |
| |||||||
Canadian County Educational Facilities Authority, Yukon Public Schools Project, Revenue Bonds | 2,050,000 | 2,055,433 | ||||||
Weatherford Industrial Trust Educational Facilities, Weatherford Public Schools Project, Revenue Bonds | 1,000,000 | 1,014,680 | ||||||
|
| |||||||
3,070,113 | ||||||||
|
|
40 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Oregon 0.3% |
| |||||||
Salem-Keizer School District No. 24J, Deferred Interest Obligations, Unlimited General Obligation | ||||||||
(zero coupon), due 6/15/23 | $ | 1,700,000 | $ | 1,680,025 | ||||
(zero coupon), due 6/15/24 | 1,785,000 | 1,747,426 | ||||||
(zero coupon), due 6/15/25 | 1,830,000 | 1,765,090 | ||||||
|
| |||||||
5,192,541 | ||||||||
|
| |||||||
Pennsylvania 4.6% |
| |||||||
Albert Gallatin Area School District, Limited General Obligation | ||||||||
Series A, Insured: AGM | 400,000 | 409,828 | ||||||
Series A, Insured: AGM | 900,000 | 947,763 | ||||||
Series A, Insured: AGM | 730,000 | 808,147 | ||||||
Series A, Insured: AGM | 1,130,000 | 1,277,634 | ||||||
Allentown City School District, Limited General Obligation Notes | 3,500,000 | 3,499,720 | ||||||
Allentown School District, Limited General Obligation | 875,000 | 883,627 | ||||||
Beaver County Hospital Authority, Heritage Valley Health Systems, Inc., Revenue Bonds | 725,000 | 743,306 | ||||||
Bethlehem Area School District, Limited General Obligation | 150,000 | 178,227 | ||||||
Borough of Quakertown PA, Unlimited General Obligation | ||||||||
Insured: AGM | 255,000 | 259,942 | ||||||
Insured: AGM | 275,000 | 296,596 | ||||||
Insured: AGM | 305,000 | 339,245 | ||||||
Brownsville Area School District, Limited General Obligation | ||||||||
Insured: MAC | 250,000 | 250,143 | ||||||
Insured: MAC | 450,000 | 467,118 | ||||||
Insured: MAC | 375,000 | 400,414 |
Principal Amount | Value | |||||||
Pennsylvania (continued) |
| |||||||
City of Allentown PA, Unlimited General Obligation | ||||||||
Insured: BAM | $ | 175,000 | $ | 185,875 | ||||
Insured: BAM | 410,000 | 448,241 | ||||||
Insured: BAM | 675,000 | 757,289 | ||||||
Insured: BAM | 245,000 | 280,763 | ||||||
City of Philadelphia PA, Unlimited General Obligation | ||||||||
4.875%, due 8/1/21 | 500,000 | 501,550 | ||||||
5.00%, due 8/1/21 | 3,000,000 | 3,096,030 | ||||||
Series A | 250,000 | 258,003 | ||||||
City of Pittston PA, Unlimited General Obligation | ||||||||
Series A, Insured: BAM | 125,000 | 125,201 | ||||||
Series A, Insured: BAM | 175,000 | 190,503 | ||||||
Series A, Insured: BAM | 265,000 | 294,569 | ||||||
Series A, Insured: BAM | 275,000 | 311,740 | ||||||
City of Reading PA, Unlimited General Obligation | 1,665,000 | 1,923,175 | ||||||
Commonwealth of Pennsylvania, Certificate of Participation | 1,015,000 | 1,103,193 | ||||||
Commonwealth of Pennsylvania, Certificates of Participation | 350,000 | 360,168 | ||||||
Commonwealth of Pennsylvania, Unlimited General Obligation 2nd Series | 5,000,000 | 5,047,150 | ||||||
Corry Area School District, Unlimited General Obligation | 170,000 | 175,093 | ||||||
Country of Lawrence PA, Unlimited General Obligation | 545,000 | 630,636 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 41 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Pennsylvania (continued) |
| |||||||
County of Allegheny PA, Revenue Bonds (b) | ||||||||
Series 2001-B, Insured: NATL-RE | $ | 4,950,000 | $ | 4,986,135 | ||||
Series 2006 B-2, Insured: FGIC | 1,490,000 | 1,500,877 | ||||||
Delaware River Port Authority, Port District Project, Revenue Bonds | 135,000 | 135,841 | ||||||
Elizabeth Forward School District, Capital Appreciation, Unlimited General Obligation | 2,210,000 | 2,201,602 | ||||||
Forest City Regional School District, Limited General Obligation | ||||||||
Insured: BAM, State Aid Withholding | 520,000 | 566,566 | ||||||
Insured: BAM, State Aid Withholding | 545,000 | 610,100 | ||||||
Lancaster School District, Limited General Obligation | 1,060,000 | 1,119,614 | ||||||
McKeesport Area School District, Capital Appreciation, Unlimited General Obligation | 145,000 | 126,218 | ||||||
Mount Union Area School District, Limited General Obligation | ||||||||
Insured: BAM | 875,000 | 925,662 | ||||||
Insured: BAM | 1,175,000 | 1,280,691 | ||||||
Insured: BAM | 915,000 | 1,025,029 | ||||||
Municipality of Norristown PA, Unlimited General Obligation | ||||||||
Series B, Insured: AGM | 460,000 | 489,067 | ||||||
Series B, Insured: AGM | 480,000 | 525,134 | ||||||
Octorara Area School District, Limited General Obligation | ||||||||
Insured: AGM | 300,000 | 304,443 | ||||||
Insured: AGM | 350,000 | 367,507 |
Principal Amount | Value | |||||||
Pennsylvania (continued) |
| |||||||
Pennsylvania Economic Development Financing Authority, Philadelphia Biosolids Facility Project, Revenue Bonds | ||||||||
3.00%, due 1/1/21 | $ | 150,000 | $ | 150,453 | ||||
3.00%, due 1/1/22 | 360,000 | 367,614 | ||||||
3.00%, due 1/1/23 | 745,000 | 773,534 | ||||||
Pennsylvania Economic Development Financing Authority, PPL Electric Utilities Corp, Revenue Bonds | 5,000,000 | 4,990,700 | ||||||
Pennsylvania Higher Educational Facilities Authority, Drexel University, Revenue Bonds | 325,000 | 370,178 | ||||||
Philadelphia Gas Works Co., 1998 General Ordinance, Revenue Bonds | 1,000,000 | 1,164,090 | ||||||
Philadelphia Gas Works Co., Revenue Bonds | 150,000 | 161,544 | ||||||
Philadelphia Municipal Authority, Revenue Bonds | 825,000 | 906,898 | ||||||
Philadelphia School District, Limited General Obligation | 500,000 | 600,415 | ||||||
Philadelphia School District, Unlimited General Obligation | 700,000 | 719,173 | ||||||
Pittsburgh Water & Sewer Authority, Revenue Bonds | 1,575,000 | 1,770,253 | ||||||
Pottstown School District, Limited General Obligation | ||||||||
Insured: BAM | 330,000 | 345,936 | ||||||
Insured: BAM | 375,000 | 404,933 | ||||||
Insured: BAM | 650,000 | 720,824 | ||||||
School District of Philadelphia, Limited General Obligation | 550,000 | 671,517 |
42 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Pennsylvania (continued) |
| |||||||
School District of Philadelphia, Revenue Notes | $ | 6,195,000 | $ | 6,347,521 | ||||
Shikellamy School District, Limited General Obligation | 1,015,000 | 1,173,137 | ||||||
Somerset Area School District, Limited General Obligation | 425,000 | 433,181 | ||||||
Sports & Exhibition Authority of Pittsburgh & Allegheny County, Revenue Bonds | ||||||||
Insured: AGM | 1,300,000 | 1,308,567 | ||||||
Insured: AGM | 1,120,000 | 1,170,859 | ||||||
State Public School Building Authority, Community College of Allegheny County, Revenue Bonds | 430,000 | 498,938 | ||||||
State Public School Building Authority, Philadelphia School District, Revenue Bonds | 500,000 | 533,265 | ||||||
State Public School Building Authority, Prerefunded, Harrisburg School District Project, Revenue Bonds | 300,000 | 342,369 | ||||||
State Public School Building Authority, Unrefunded, Harrisburg School District Project, Revenue Bonds | 1,700,000 | 1,912,364 | ||||||
Unity Township Municipal Authority, Revenue Bonds | 805,000 | 917,169 | ||||||
Waverly Township Municipal Authority, Revenue Bonds | ||||||||
Insured: BAM | 780,000 | 812,206 | ||||||
Insured: BAM | 415,000 | 471,664 |
Principal Amount | Value | |||||||
Pennsylvania (continued) |
| |||||||
Wilkinsburg-Penn Joint Water Authority, Revenue Bonds | ||||||||
Insured: BAM | $ | 330,000 | $ | 373,157 | ||||
Insured: BAM | 390,000 | 452,115 | ||||||
Insured: BAM | 650,000 | 774,540 | ||||||
York Suburban School District, Limited General Obligation | 925,000 | 934,657 | ||||||
|
| |||||||
75,189,146 | ||||||||
|
| |||||||
Puerto Rico 0.1% |
| |||||||
Puerto Rico Electric Power Authority, Revenue Bonds | ||||||||
Series PP, Insured: NATL-RE | 250,000 | 251,152 | ||||||
Series SS, Insured: NATL-RE | 250,000 | 251,153 | ||||||
Puerto Rico Municipal Finance Agency, Revenue Bonds | 1,500,000 | 1,542,390 | ||||||
|
| |||||||
2,044,695 | ||||||||
|
| |||||||
Rhode Island 0.3% |
| |||||||
Providence Redevelopment Agency, Revenue Bonds | ||||||||
Series A | 2,405,000 | 2,444,153 | ||||||
Series A | 250,000 | 263,865 | ||||||
Rhode Island Health & Educational Building Corp., Lifespan Obligated Group, Revenue Bonds | 1,000,000 | 1,151,460 | ||||||
Rhode Island Student Loan Authority, Revenue Bonds | 325,000 | 372,866 | ||||||
Rhode Island Turnpike & Bridge Authority, Revenue Bonds | ||||||||
Series 1 | 385,000 | 385,250 | ||||||
Series 1 | 485,000 | 489,181 | ||||||
|
| |||||||
5,106,775 | ||||||||
|
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 43 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
South Carolina 0.5% |
| |||||||
Charleston Educational Excellence Finance Corp., Charleston County School District, Revenue Bonds | $ | 500,000 | $ | 501,860 | ||||
County of Hampton SC, Unlimited General Obligation | 150,000 | 153,207 | ||||||
South Carolina Ports Authority, Revenue Bonds | 325,000 | 375,027 | ||||||
South Carolina Public Service Authority, Revenue Bonds | ||||||||
Series E | 2,034,000 | 2,399,978 | ||||||
Series D | 725,000 | 777,040 | ||||||
Williamsburg County Public Facilities Corp., Williamsburg County Project, Revenue Bonds | ||||||||
Insured: BAM | 460,000 | 484,523 | ||||||
Insured: BAM | 500,000 | 542,185 | ||||||
Insured: BAM | 985,000 | 1,097,487 | ||||||
Insured: BAM | 1,025,000 | 1,169,586 | ||||||
|
| |||||||
7,500,893 | ||||||||
|
| |||||||
South Dakota 0.0%‡ |
| |||||||
South Dakota Health & Educational Facilities Authority, Monument Health, Revenue Bonds | 350,000 | 409,290 | ||||||
|
| |||||||
Tennessee 0.5% |
| |||||||
County of Campbell TN, Unlimited General Obligation | 320,000 | 328,752 | ||||||
Knox County Health Educational & Housing Facility Board, University Health System, Inc., Revenue Bonds | 1,450,000 | 1,701,096 | ||||||
Memphis-Shelby County Airport Authority, Revenue Bonds (b) | ||||||||
Series B | 1,290,000 | 1,323,901 | ||||||
5.00%, due 7/1/26 | 155,000 | 187,806 |
Principal Amount | Value | |||||||
Tennessee (continued) |
| |||||||
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Volunteer Healthcare, Revenue Bonds | $ | 250,000 | $ | 249,467 | ||||
Tennessee Energy Acquisition Corp., Revenue Bonds | ||||||||
Series A | 2,125,000 | 2,280,954 | ||||||
Series C | 1,000,000 | 1,010,570 | ||||||
Series C | 335,000 | 352,752 | ||||||
|
| |||||||
7,435,298 | ||||||||
|
| |||||||
Texas 9.5% |
| |||||||
Aledo Independent School District, Unlimited General Obligation | 200,000 | 187,826 | ||||||
Allen Independent School District, Unlimited General Obligation | ||||||||
Insured: PSF | 1,000,000 | 1,149,830 | ||||||
Insured: PSF | 135,000 | 166,112 | ||||||
Alvin Independent School District, Unlimited General Obligation Insured: PSF | 550,000 | 557,359 | ||||||
Arlington Higher Education Finance Corp., Great Hearts America, Revenue Bonds | ||||||||
Series A, Insured: PSF | 355,000 | 397,486 | ||||||
Series A, Insured: PSF | 635,000 | 736,689 | ||||||
Arlington Higher Education Finance Corp., Uplift Education Project, Revenue Bonds | ||||||||
Series A, Insured: PSF | 705,000 | 799,251 | ||||||
Series A, Insured: PSF | 725,000 | 827,036 | ||||||
Series A, Insured: PSF | 745,000 | 851,542 | ||||||
Series A, Insured: PSF | 770,000 | 883,198 | ||||||
Series A, Insured: PSF | 215,000 | 230,302 | ||||||
Series A, Insured: PSF | 200,000 | 221,762 | ||||||
Series A, Insured: PSF | 325,000 | 371,244 | ||||||
Series A, Insured: PSF | 340,000 | 398,286 |
44 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Texas (continued) |
| |||||||
Austin Texas Independent School District, Unlimited General Obligation Insured: PSF | $ | 7,925,000 | $ | 8,206,020 | ||||
Belmont Fresh Water Supply District No. 1, Denton County, Unlimited General Obligation | 495,000 | 526,348 | ||||||
Brazoria County Municipal Utility District No. 19, Unlimited General Obligation | ||||||||
Insured: BAM | 385,000 | 402,775 | ||||||
Insured: BAM | 410,000 | 434,887 | ||||||
Central Texas Regional Mobility Authority, Revenue Bonds | 9,000,000 | 10,307,520 | ||||||
Central Texas Turnpike System, Capital Appreciation, Revenue Bonds | 1,000,000 | 853,810 | ||||||
Cibolo Canyons Special Improvement District, Limited General Obligation | ||||||||
Series A, Insured: AGM | 345,000 | 357,092 | ||||||
Series A, Insured: AGM | 365,000 | 393,985 | ||||||
Series A, Insured: AGM | 575,000 | 639,929 | ||||||
Cinco Southwest Texas Municipal Utility District No. 1, Unlimited General Obligation | ||||||||
Insured: BAM | 480,000 | 488,458 | ||||||
Insured: BAM | 470,000 | 482,892 | ||||||
Series A, Insured: BAM | 275,000 | 282,543 | ||||||
City of Austin TX, Airport System, Revenue Bonds (b) | ||||||||
Series B | 200,000 | 217,672 | ||||||
Series B | 250,000 | 292,023 | ||||||
5.00%, due 11/15/26 | 500,000 | 572,460 | ||||||
City of Dallas TX, Waterworks & Sewer Systems, Revenue Bonds | 3,500,000 | 3,559,815 |
Principal Amount | Value | |||||||
Texas (continued) |
| |||||||
City of Houston TX, Airport System, Revenue Bonds | ||||||||
Series A | $ | 300,000 | $ | 308,673 | ||||
Series A | 2,035,000 | 2,095,623 | ||||||
Subseries D | 2,000,000 | 2,321,320 | ||||||
City of Houston TX, Utility System, Revenue Bonds | 450,000 | 450,392 | ||||||
City of Laredo TX, International Toll Bridge System, Revenue Bonds | 150,000 | 163,214 | ||||||
City of Lewisville TX, Castle Hills Public Works, Special Assessment Insured: AGM | 1,045,000 | 1,150,639 | ||||||
City of Lubbock TX, Water & Wastewater System, Revenue Bonds | 250,000 | 264,770 | ||||||
City of Rio Grande City TX, Limited General Obligation | ||||||||
Insured: AGM | 300,000 | 313,770 | ||||||
Insured: AGM | 505,000 | 542,799 | ||||||
Insured: AGM | 545,000 | 602,301 | ||||||
Insured: AGM | 610,000 | 690,520 | ||||||
Clear Lake City Water Authority, Unlimited General Obligation | ||||||||
4.00%, due 3/1/21 | 125,000 | 126,268 | ||||||
4.00%, due 3/1/22 | 110,000 | 114,505 | ||||||
4.00%, due 3/1/23 | 150,000 | 161,154 | ||||||
Collin County Water Control & Improvement District No. 3, Unlimited General Obligation | ||||||||
Insured: AGM | 215,000 | 223,297 | ||||||
Insured: AGM | 245,000 | 265,026 | ||||||
Insured: AGM | 240,000 | 269,424 | ||||||
Insured: AGM | 250,000 | 290,365 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 45 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Texas (continued) |
| |||||||
Cypress-Fairbanks Independent School District, Unlimited General Obligation | $ | 5,845,000 | $ | 5,926,830 | ||||
Dallas Fort Worth International Airport, Revenue Bonds | 1,750,000 | 1,830,360 | ||||||
Dallas-Fort Worth International Airport, Revenue Bonds | ||||||||
Series E | 850,000 | 850,000 | ||||||
Series F | 1,000,000 | 1,000,000 | ||||||
Series F | 1,295,000 | 1,353,534 | ||||||
Series A | 1,110,000 | 1,257,386 | ||||||
Series A | 1,770,000 | 2,077,874 | ||||||
Series B | 215,000 | 215,000 | ||||||
Series B | 325,000 | 325,000 | ||||||
East Aldine Management District, Revenue Bonds | 200,000 | 216,636 | ||||||
Ector County Hospital District, Limited General Obligation | ||||||||
5.00%, due 9/15/21 | 400,000 | 412,920 | ||||||
5.00%, due 9/15/22 | 400,000 | 427,160 | ||||||
5.00%, due 9/15/23 | 430,000 | 473,671 | ||||||
5.00%, due 9/15/24 | 450,000 | 510,489 | ||||||
5.00%, due 9/15/25 | 500,000 | 582,385 | ||||||
Fort Bend County Levee Improvement District No. 15, Unlimited General Obligation | ||||||||
Insured: BAM | 850,000 | 875,551 | ||||||
Insured: BAM | 465,000 | 495,718 | ||||||
Fort Bend County Municipal Utility District No. 194, Unlimited General Obligation | ||||||||
Series A, Insured: AGM | 285,000 | 293,205 | ||||||
Series A, Insured: AGM | 290,000 | 308,334 | ||||||
Series A, Insured: AGM | 290,000 | 325,450 |
Principal Amount | Value | |||||||
Texas (continued) |
| |||||||
Fort Bend County Municipal Utility District No. 194, Unlimited General Obligation (continued) | ||||||||
Series A, Insured: AGM | $ | 290,000 | $ | 331,995 | ||||
Fort Bend Independent School District, Unlimited General Obligation | 7,500,000 | 7,564,275 | ||||||
Fort Bend Municipal Utility District, No. 169 Contract, Revenue Bonds | ||||||||
Series A, Insured: AGM | 925,000 | 959,650 | ||||||
Series A, Insured: AGM | 465,000 | 466,442 | ||||||
Fort Bend Municipal Utility District, No. 169 Contract, Unlimited General Obligation | 665,000 | 696,654 | ||||||
Fort Bend-Waller Counties Municipal Utility District No. 3, Unlimited General Obligation | ||||||||
Insured: BAM | 175,000 | 189,858 | ||||||
Insured: BAM | 175,000 | 195,585 | ||||||
Insured: BAM | 175,000 | 201,105 | ||||||
Galveston County Municipal Utility District No. 56, Unlimited General Obligation | ||||||||
Insured: BAM | 400,000 | 429,340 | ||||||
Insured: BAM | 300,000 | 300,930 | ||||||
Insured: BAM | 400,000 | 417,132 | ||||||
Insured: AGM | 425,000 | 472,341 | ||||||
Insured: AGM | 675,000 | 771,707 | ||||||
Grand Parkway Transportation Corp., Revenue Bonds | 3,610,000 | 3,943,203 | ||||||
Gulfgate Redevelopment Authority, Tax Allocation | ||||||||
Insured: AGM | 300,000 | 308,637 | ||||||
Insured: AGM | 325,000 | 352,079 | ||||||
Insured: AGM | 440,000 | 499,259 |
46 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Texas (continued) |
| |||||||
Harris County Metropolitan Transit Authority, Sales & Use Tax, Revenue Bonds | $ | 150,000 | $ | 183,207 | ||||
Harris County Municipal Utility District No. 105, Unlimited General Obligation Insured: AGM | 250,000 | 293,260 | ||||||
Harris County Municipal Utility District No. 370, Unlimited General Obligation | ||||||||
Insured: AGM | 110,000 | 113,121 | ||||||
Insured: AGM | 355,000 | 372,956 | ||||||
Insured: AGM | 250,000 | 273,365 | ||||||
Harris County Municipal Utility District No. 480, Unlimited General Obligation | ||||||||
Insured: AGM | 175,000 | 188,867 | ||||||
Insured: AGM | 175,000 | 194,028 | ||||||
Harris County Municipal Utility District No. 489, Unlimited Tax Bonds, Unlimited General Obligation | ||||||||
Insured: BAM | 615,000 | 688,941 | ||||||
Insured: BAM | 615,000 | 703,744 | ||||||
Harris County-Houston Sports Authority, Senior Lien, Revenue Bonds | ||||||||
Series A | 400,000 | 400,568 | ||||||
Series A, Insured: AGM | 150,000 | 170,345 | ||||||
Series A, Insured: AGM | 245,000 | 277,585 | ||||||
Hidalgo County Regional Mobility Authority, Revenue Bonds | 170,000 | 170,607 | ||||||
Houston Hotel Occupancy Tax & Special Revenue, Convention & Entertainment Facilities Department, Revenue Bonds | ||||||||
Series B, Insured: AGM | 150,000 | 147,438 | ||||||
5.00%, due 9/1/21 | 1,535,000 | 1,567,465 | ||||||
5.00%, due 9/1/23 | 1,005,000 | 1,067,380 | ||||||
5.00%, due 9/1/24 | 3,180,000 | 3,448,519 | ||||||
5.00%, due 9/1/25 | 2,520,000 | 2,762,936 | ||||||
5.00%, due 9/1/26 | 430,000 | 479,102 |
Principal Amount | Value | |||||||
Texas (continued) |
| |||||||
Hunt Memorial Hospital District, Charitable Health, Limited General Obligation | ||||||||
5.00%, due 2/15/21 | $ | 300,000 | $ | 302,685 | ||||
5.00%, due 2/15/23 | 325,000 | 352,706 | ||||||
5.00%, due 2/15/24 | 275,000 | 308,311 | ||||||
5.00%, due 2/15/25 | 450,000 | 519,133 | ||||||
5.00%, due 2/15/26 | 800,000 | 943,008 | ||||||
Imperial Redevelopment District, Unlimited General Obligation | ||||||||
Insured: AGM | 130,000 | 134,126 | ||||||
Insured: AGM | 110,000 | 116,509 | ||||||
Insured: AGM | 120,000 | 130,628 | ||||||
Insured: AGM | 85,000 | 95,358 | ||||||
Insured: AGM | 125,000 | 144,141 | ||||||
Lazy Nine Municipal Utility District No. 1B, Unlimited General Obligation Insured: MAC | 360,000 | 390,164 | ||||||
Leander Independent School District, Unlimited General Obligation | ||||||||
Series D, Insured: PSF | 2,125,000 | 968,957 | ||||||
Series C, Insured: PSF | 340,000 | 384,628 | ||||||
Mabank Independent School District, Unlimited General Obligation | 950,000 | 902,405 | ||||||
Matagorda County Navigation District No. 1, Revenue Bonds | 6,530,000 | 8,177,780 | ||||||
Montgomery County Municipal Utility District No. 46, Unlimited General Obligation | 1,455,000 | 1,457,226 | ||||||
North Central Texas Community College District, Revenue Bonds | 380,000 | 385,339 | ||||||
North Texas Municipal Water District, Sabine Creek Regional Wastewater System, Revenue Bonds | 350,000 | 392,742 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 47 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Texas (continued) |
| |||||||
Northwest Independent School District, Capital Appreciation, Unlimited General Obligation | $ | 295,000 | $ | 286,976 | ||||
Onalaska Independent School District, Capital Appreciation, Unlimited General Obligation | 210,000 | 209,840 | ||||||
Pearland Independent School District, Unlimited General Obligation | 1,520,000 | 1,539,745 | ||||||
Progreso Independent School District, Unlimited General Obligation Insured: PSF | 290,000 | 293,060 | ||||||
Remington Municipal Utility District No. 1, Unlimited General Obligation Insured: AGM | 330,000 | 345,484 | ||||||
Sienna Plantation Municipal Utility District No. 4, Unlimited General Obligation | ||||||||
Insured: AGM | 460,000 | 498,727 | ||||||
Insured: AGM | 475,000 | 522,357 | ||||||
Southeast Williamson County Municipal Utility District No. 1, Unlimited General Obligation | ||||||||
Insured: BAM | 150,000 | 159,483 | ||||||
Insured: BAM | 330,000 | 357,882 | ||||||
Insured: BAM | 345,000 | 383,578 | ||||||
Insured: BAM | 355,000 | 403,706 | ||||||
Southwest Houston Redevelopment Authority, Revenue Bonds | ||||||||
Insured: AGM | 150,000 | 155,555 | ||||||
Insured: AGM | 200,000 | 216,276 | ||||||
Insured: AGM | 300,000 | 343,929 | ||||||
Insured: AGM | 300,000 | 353,688 |
Principal Amount | Value | |||||||
Texas (continued) |
| |||||||
State of Texas, College Student Loan, Unlimited General Obligation | $ | 9,745,000 | $ | 10,107,904 | ||||
State of Texas, Revenue Notes | 12,500,000 | 12,884,250 | ||||||
Tarrant County Cultural Education Facilities Finance Corp., Buckner Retirement Services, Inc. Project, Revenue Bonds | 770,000 | 919,180 | ||||||
Tarrant County Cultural Education Facilities Finance Corp., Methodist Hospitals of Dallas, Revenue Bonds | 1,100,000 | 1,227,930 | ||||||
Texas Municipal Gas Acquisition & Supply Corp. I, Revenue Bonds | 200,000 | 218,692 | ||||||
Texas Municipal Gas Acquisition & Supply Corp. III, Revenue Bonds | 1,900,000 | 2,058,061 | ||||||
Texas Municipal Power Agency, Revenue Bonds | 2,740,000 | 2,747,014 | ||||||
Texas State Public Finance Authority, Financing System Texas Southern University, Revenue Bonds Insured: BAM | 500,000 | 585,330 | ||||||
Viridian Municipal Management District, Road Improvement, Unlimited General Obligation | ||||||||
Insured: AGM | 505,000 | 506,389 | ||||||
Insured: AGM | 300,000 | 311,403 | ||||||
Insured: AGM | 550,000 | 587,862 | ||||||
Insured: AGM | 300,000 | 329,733 | ||||||
Viridian Municipal Management District, Unlimited Tax Road Improvement, Unlimited General Obligation | ||||||||
Insured: BAM | 175,000 | 187,047 | ||||||
Insured: BAM | 370,000 | 417,205 |
48 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Texas (continued) |
| |||||||
Viridian Municipal Management District, Utility Improvement, Unlimited General Obligation | ||||||||
Insured: AGM | $ | 260,000 | $ | 260,715 | ||||
Insured: AGM | 225,000 | 233,552 | ||||||
Insured: AGM | 395,000 | 422,192 | ||||||
Insured: AGM | 305,000 | 335,229 | ||||||
Weatherford Independent School District, Unlimited General Obligation | ||||||||
Insured: PSF | 250,000 | 249,780 | ||||||
Insured: PSF | 325,000 | 323,359 | ||||||
|
| |||||||
154,600,300 | ||||||||
|
| |||||||
U.S. Virgin Islands 0.1% |
| |||||||
Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue Bonds | ||||||||
Insured: NATL-RE | 450,000 | 454,140 | ||||||
Insured: NATL-RE | 665,000 | 674,756 | ||||||
Insured: NATL-RE | 395,000 | 401,245 | ||||||
|
| |||||||
1,530,141 | ||||||||
|
| |||||||
Utah 0.4% |
| |||||||
Salt Lake City Airport, Revenue Bonds (b) | ||||||||
Series A | 725,000 | 744,002 | ||||||
Series A | 95,000 | 108,662 | ||||||
Utah Charter School Finance Authority, Spectrum Academy Project, Revenue Bonds | ||||||||
Insured: UT CSCE | 100,000 | 104,737 | ||||||
Insured: UT CSCE | 175,000 | 188,466 | ||||||
Insured: UT CSCE | 280,000 | 309,969 | ||||||
Insured: UT CSCE | 400,000 | 461,104 | ||||||
Utah Charter School Finance Authority, Summit Academy, Inc., Revenue Bonds | ||||||||
Series A; Insured: UT CSCE | 110,000 | 116,943 |
Principal Amount | Value | |||||||
Utah (continued) |
| |||||||
Utah Charter School Finance Authority, Summit Academy, Inc., Revenue Bonds (continued) | ||||||||
Series A; Insured: UT CSCE | $ | 340,000 | $ | 387,304 | ||||
Utah Charter School Finance Authority, Vista School, Revenue Bonds | ||||||||
Series A, Insured: UT CSCE | 255,000 | 285,536 | ||||||
Series A, Insured: UT CSCE | 265,000 | 303,120 | ||||||
Utah Infrastructure Agency, Telecommunication, Revenue Bonds | ||||||||
4.00%, due 10/15/21 | 500,000 | 514,195 | ||||||
4.00%, due 10/15/23 | 755,000 | 794,826 | ||||||
5.00%, due 10/15/25 | 1,000,000 | 1,128,470 | ||||||
Utah State Charter School Finance Authority, North Star Academy, Revenue Bonds | 920,000 | 878,251 | ||||||
|
| |||||||
6,325,585 | ||||||||
|
| |||||||
Vermont 0.1% |
| |||||||
Vermont Educational & Health Building Financing Agency, Revenue Bonds | 1,000,000 | 1,000,000 | ||||||
|
| |||||||
Virginia 1.2% |
| |||||||
Norfolk Airport Authority, Revenue Bonds | ||||||||
5.00%, due 7/1/24 | 395,000 | 449,968 | ||||||
5.00%, due 7/1/25 | 160,000 | 187,350 | ||||||
Peninsula Ports Authority, Dominion Terminal Associates Project, Revenue Bonds | 2,000,000 | 2,017,200 | ||||||
Rockingham County Economic Development Authority, Sunnyside Presbyterian Home Project, Revenue Bonds | ||||||||
Series A | 280,000 | 280,375 | ||||||
Series A | 300,000 | 309,852 | ||||||
University of Virginia, Prefunded, Revenue Bonds | 215,000 | 222,607 | ||||||
Virginia Public School Authority, Revenue Bonds | 1,545,000 | 1,599,539 |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 49 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Virginia (continued) |
| |||||||
Virginia Small Business Financing Authority, National Senior Campuses, Revenue Bonds | ||||||||
5.00%, due 1/1/22 | $ | 500,000 | $ | 524,380 | ||||
5.00%, due 1/1/23 | 500,000 | 544,575 | ||||||
5.00%, due 1/1/24 | 550,000 | 620,692 | ||||||
Wise County Industrial Development Authority, Virginia Electric & Power Co. Project, Revenue Bonds | 12,500,000 | 12,490,000 | ||||||
|
| |||||||
19,246,538 | ||||||||
|
| |||||||
Washington 0.5% |
| |||||||
Bellevue Convention Center Authority, Revenue Bonds | 530,000 | 520,529 | ||||||
City of Washougal WA, Water & Sewer, Revenue Bonds | 250,000 | 253,880 | ||||||
King County School District No. 400 Mercer Island, Unlimited General Obligation | 250,000 | 250,353 | ||||||
King County School District No. 414 Lake Washington, Limited General Obligation | 1,400,000 | 1,404,116 | ||||||
King County School District No. 414 Lake Washington, Unlimited General Obligation | 465,000 | 466,367 | ||||||
Pend Oreille County Public Utility District No. 1 Box Canyon, Production System, Revenue Bonds | 100,000 | 106,314 | ||||||
Port of Seattle, Revenue Bonds | 500,000 | 552,005 | ||||||
Snohomish County Public Utility District No. 1, Revenue Bonds | 500,000 | 525,380 | ||||||
Snohomish County School District No. 2 Everett, Unlimited General Obligation Insured: School Bond Guaranty | 750,000 | 752,227 |
Principal Amount | Value | |||||||
Washington (continued) |
| |||||||
Spokane Public Facilities District, Revenue Bonds | $ | 1,175,000 | $ | 1,263,513 | ||||
State of Washington, Senior 520 Corridor Program, Revenue Bonds | 1,000,000 | 1,083,970 | ||||||
Washington Higher Education Facilities Authority, Seattle University Project, Revenue Bonds | ||||||||
5.00%, due 5/1/24 | 250,000 | 280,802 | ||||||
5.00%, due 5/1/25 | 255,000 | 294,413 | ||||||
|
| |||||||
7,753,869 | ||||||||
|
| |||||||
West Virginia 0.5% |
| |||||||
Morgantown Utility Board, Inc., Revenue Bonds | 225,000 | 236,230 | ||||||
Roane County Building Commission, Roane General Hospital, Revenue Bonds | 1,250,000 | 1,251,475 | ||||||
West Virginia Commissioner of Highways, Surface Transportation Improvements, Revenue Bonds | 390,000 | 423,384 | ||||||
West Virginia Economic Development Authority, Appalachian Power—Amos Project, Revenue Bonds | 5,500,000 | 5,459,190 | ||||||
West Virginia Hospital Finance Authority, Cabell Huntington Hospital Obligated Group, Revenue Bonds | ||||||||
5.00%, due 1/1/21 | 140,000 | 140,892 | ||||||
5.00%, due 1/1/22 | 200,000 | 209,090 | ||||||
5.00%, due 1/1/25 | 350,000 | 404,477 | ||||||
|
| |||||||
8,124,738 | ||||||||
|
| |||||||
Wisconsin 0.9% |
| |||||||
City of Racine WI, Revenue Notes | 8,305,000 | 8,325,846 | ||||||
City of Racine WI, Unlimited General Obligation | 1,075,000 | 1,074,333 | ||||||
City of Racine WI, Waterworks System, Revenue Bonds | 750,000 | 771,502 |
50 | MainStay MacKay Short Term Municipal 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 | |||||||
Long-Term Municipal Bonds (continued) |
| |||||||
Wisconsin (continued) |
| |||||||
County of Milwaukee WI, Airport, Revenue Bonds | $ | 120,000 | $ | 120,373 | ||||
Fox Crossings Village WI, Water Works, Revenue Bonds | 295,000 | 319,795 | ||||||
Public Finance Authority, Affinity Living Group, Revenue Bonds | 2,000,000 | 2,000,460 | ||||||
Public Finance Authority, Northwest Nazarene University, Revenue Bonds | 500,000 | 544,370 | ||||||
State of Wisconsin, Unlimited General Obligation | 200,000 | 200,000 | ||||||
Town of Manitowish Waters WI, Unlimited General Obligation | ||||||||
Insured: AGM | 100,000 | 100,658 | ||||||
Insured: AGM | 285,000 | 292,421 | ||||||
Insured: AGM | 295,000 | 308,122 | ||||||
Insured: AGM | 300,000 | 318,243 | ||||||
Insured: AGM | 310,000 | 333,774 | ||||||
|
| |||||||
14,709,897 | ||||||||
|
| |||||||
Wyoming 0.1% |
| |||||||
Laramie County Hospital Revenue, Cheyenne Regional Medical Center Project, Revenue Bonds | ||||||||
5.00%, due 5/1/23 | 935,000 | 954,663 | ||||||
5.00%, due 5/1/24 | 920,000 | 938,814 | ||||||
|
| |||||||
1,893,477 | ||||||||
|
| |||||||
Total Long-Term Municipal Bonds | 1,394,038,805 | |||||||
|
| |||||||
Short-Term Municipal Notes 8.9% |
| |||||||
Alabama 0.2% |
| |||||||
Southeast Alabama Gas Supply District, SIFMA Index Project No. 1, Revenue Bonds | 3,000,000 | 3,005,340 | ||||||
|
|
Principal Amount | Value | |||||||
California 0.9% |
| |||||||
California Infrastructure & Economic Development Bank, Brightline West Passenger Rail Project, Revenue Bonds | $ | 10,000,000 | $ | 9,996,000 | ||||
California Municipal Finance Authority, Revenue Bonds | 5,000,000 | 4,999,400 | ||||||
|
| |||||||
14,995,400 | ||||||||
|
| |||||||
Connecticut 0.2% |
| |||||||
State of Connecticut, SIFMA Index, Unlimited General Obligation | 3,000,000 | 3,020,040 | ||||||
|
| |||||||
Georgia 0.7% |
| |||||||
Heard County Development Authority, Georgia Power Co., Plant Wansley, Revenue Bonds | 3,600,000 | 3,600,000 | ||||||
Main Street Natural Gas, Inc., Revenue Bonds Subseries D | 7,500,000 | 7,506,900 | ||||||
|
| |||||||
11,106,900 | ||||||||
|
| |||||||
Kentucky 0.8% |
| |||||||
County of Meade KY, Nucor Corp., Revenue Bonds | 5,320,000 | 5,320,000 | ||||||
Kentucky Asset Liability Commission, Revenue Bonds (f) | ||||||||
Series B, Insured: NATL-RE | 2,000,000 | 1,995,140 | ||||||
Series B, Insured: NATL-RE | 5,825,000 | 5,713,218 | ||||||
|
| |||||||
13,028,358 | ||||||||
|
| |||||||
Massachusetts 0.5% |
| |||||||
Massachusetts Development Finance Agency, Boston University, Revenue Bonds | 7,600,000 | 7,600,000 | ||||||
|
| |||||||
Mississippi 0.1% |
| |||||||
Mississippi Business Finance Corp., Waste Management Inc., Project, Revenue Bonds | 1,750,000 | 1,747,410 | ||||||
|
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 51 |
Portfolio of Investments October 31, 2020 (Unaudited) (continued)
Principal Amount | Value | |||||||
Short-Term Municipal Notes (continued) |
| |||||||
Missouri 0.4% |
| |||||||
Missouri State Health & Educational Facilities Authority, Washington University, Revenue Bonds | $ | 6,000,000 | $ | 6,000,000 | ||||
|
| |||||||
Montana 0.4% |
| |||||||
Montana Facility Finance Authority, Billings Clinic Obligated Group, Revenue Bonds | 6,075,000 | 6,074,332 | ||||||
|
| |||||||
Nevada 0.2% |
| |||||||
State of Nevada Department of Business & Industry, Republic Services Project, Revenue Bonds | 3,700,000 | 3,701,665 | ||||||
|
| |||||||
New Hampshire 0.4% |
| |||||||
New Hampshire Business Finance Authority, Waste Management, Revenue Bonds (b)(f) | ||||||||
0.40%, due 3/1/21 | 2,870,000 | 2,869,857 | ||||||
0.40%, due 4/1/24 | 3,000,000 | 2,999,850 | ||||||
|
| |||||||
5,869,707 | ||||||||
|
| |||||||
New Jersey 0.5% |
| |||||||
New Jersey Transportation Trust Fund Authority, Transportation Program Notes, Revenue Bonds | 2,250,000 | 2,252,317 | ||||||
New Jersey Turnpike Authority, Revenue Bonds (f) | ||||||||
Series C-2 | 3,500,000 | 3,493,420 | ||||||
Series D-1 | 2,600,000 | 2,597,660 | ||||||
|
| |||||||
8,343,397 | ||||||||
|
| |||||||
New York 0.6% |
| |||||||
New York City Housing Development Corp., Revenue Bonds | 10,000,000 | 9,997,700 | ||||||
|
| |||||||
Ohio 0.6% |
| |||||||
County of Franklin OH, CHE Trinity Health Credit Group, Revenue Bonds | 10,250,000 | 10,250,000 | ||||||
|
|
Principal Amount | Value | |||||||
Pennsylvania 0.4% |
| |||||||
County of Allegheny PA, Unlimited General Obligation | $ | 1,100,000 | $ | 1,097,404 | ||||
Pennsylvania Higher Educational Facilities Authority, Foundation for Indiana University of Pennsylvania, Revenue Bonds | 3,000,000 | 2,964,510 | ||||||
University of Pittsburgh of the Commonwealth System of Higher Education, Revenue Bonds | 2,000,000 | 1,999,760 | ||||||
|
| |||||||
6,061,674 | ||||||||
|
| |||||||
Texas 0.5% |
| |||||||
Texas Municipal Gas Acquisition and Supply Corp II, BMA Index Rate, Revenue Bonds | 8,500,000 | 8,484,020 | ||||||
|
| |||||||
Utah 0.7% |
| |||||||
City of Murray UT, Murray City Hospital, IHC Health Services, Inc., Revenue Bonds | 12,000,000 | 12,000,000 | ||||||
|
| |||||||
Washington 0.6% |
| |||||||
Washington Health Care Facilities Authority, Fred Hutchinson Cancer Research Center, Revenue Bonds | 9,000,000 | 9,086,940 | ||||||
|
| |||||||
Wisconsin 0.2% |
| |||||||
Wisconsin State Health & Educational Facilities Authority, Advocate Aurora Health Credit Group, Revenue Bonds | 3,500,000 | 3,498,460 | ||||||
|
| |||||||
Total Short-Term Municipal Notes | 143,871,343 | |||||||
|
| |||||||
Total Municipal Bonds | 1,537,910,148 | |||||||
|
| |||||||
Total Long-Term Bonds | 1,540,804,124 | |||||||
|
|
52 | MainStay MacKay Short Term Municipal 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 | |||||||
Unaffiliated Investment Company 1.2% |
| |||||||
California 0.3% |
| |||||||
Invesco California Value Municipal Income Trust | $ | 5,000,000 | $ | 5,000,000 | ||||
|
| |||||||
Massachusetts 0.9% |
| |||||||
Invesco Muni, Inc. | 15,000,000 | 15,000,000 | ||||||
|
| |||||||
Total Unaffiliated Investment Company | 20,000,000 | |||||||
|
| |||||||
Total Investments | 96.4 | % | 1,560,804,124 | |||||
Other Assets, Less Liabilities | 3.6 | 58,801,191 | ||||||
Net Assets | 100.0 | % | $ | 1,619,605,315 |
† | Percentages indicated are based on Fund net assets. |
‡ | Less than one-tenth of a percent. |
(a) | Floating rate—Rate shown was the rate in effect as of October 31, 2020. |
(b) | Interest on these securities was subject to alternative minimum tax. |
(c) | Step coupon—Rate shown was the rate in effect as of October 31, 2020. |
(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) | Illiquid security—As of October 31, 2020, the total market value of the security deemed illiquid under procedures approved by the Board of Trustees was $308,673, which represented less than one-tenth of a percent of the Fund’s net assets. |
(f) | Variable-rate demand notes (VRDNs)—Provide the right to sell the security at face value on either that day or within the rate-reset period. VRDNs will normally trade as if the maturity is the earlier put date, even though stated maturity is longer. The interest rate is reset on the put date at a stipulated daily, weekly, monthly, quarterly, or other specified time interval to reflect current market conditions. These securities do not indicate a reference rate and spread in their description. The maturity date shown is the final maturity. |
The following abbreviations are used in the preceding pages:
AGC—Assured Guaranty Corp.
AGM—Assured Guaranty Municipal Corp.
AMBAC—Ambac Assurance Corp.
BAM—Build America Mutual Assurance Co.
BHAC—Berkshire Hathaway Assurance Corp.
CHF— Collegiate Housing Foundation
FGIC—Financial Guaranty Insurance Company.
MAC—Municipal Assurance Corp.
NATL-RE—National Public Finance Guarantee Corp.
PSF—Permanent School Fund
Q-SBLF—Qualified School Board Loan Fund
SONYMA—State of New York Mortgage Agency
UT CSCE—Utah Charter School Credit Enhancement Program
The following is a summary of the fair valuations according to the inputs used as of October 31, 2020, for valuing the Fund’s assets:
Description | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Asset Valuation Inputs | ||||||||||||||||
Investments in Securities (a) | ||||||||||||||||
Long-Term Bonds | ||||||||||||||||
Corporate Bonds | $ | — | $ | 2,893,976 | $ | — | $ | 2,893,976 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Corporate Bonds | — | 2,893,976 | — | 2,893,976 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Municipal Bonds | ||||||||||||||||
Long-Term Municipal Bonds | — | 1,417,734,170 | — | 1,417,734,170 | ||||||||||||
Short-Term Municipal Notes | — | 120,175,978 | — | 120,175,978 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Municipal Bonds | — | 1,537,910,148 | — | 1,537,910,148 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Long-Term Bonds | — | 1,540,804,124 | — | 1,540,804,124 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Unaffiliated Investment Company | — | 20,000,000 | — | 20,000,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | — | $ | 1,560,804,124 | $ | — | $ | 1,560,804,124 | ||||||||
|
|
|
|
|
| �� |
|
|
(a) | For a complete listing of investments and their industries, see the Portfolio of Investments. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 53 |
Statement of Assets and Liabilities as of October 31, 2020 (Unaudited)
Assets | ||||
Investment in securities, at value (identified cost $1,550,925,712) | $ | 1,560,804,124 | ||
Cash | 59,346,263 | |||
Due from custodian | 1,102,883 | |||
Receivables: | ||||
Fund shares sold | 35,206,496 | |||
Interest | 13,997,057 | |||
Investment securities sold | 6,169,366 | |||
Other assets | 151,065 | |||
|
| |||
Total assets | 1,676,777,254 | |||
|
| |||
Liabilities | ||||
Payables: | ||||
Investment securities purchased | 53,387,003 | |||
Fund shares redeemed | 2,589,930 | |||
Manager (See Note 3) | 462,121 | |||
NYLIFE Distributors (See Note 3) | 84,374 | |||
Transfer agent (See Note 3) | 34,389 | |||
Professional fees | 34,041 | |||
Shareholder communication | 23,352 | |||
Custodian | 3,344 | |||
Dividend payable | 553,385 | |||
|
| |||
Total liabilities | 57,171,939 | |||
|
| |||
Net assets | $ | 1,619,605,315 | ||
|
| |||
Composition of Net Assets | ||||
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized | $ | 167,247 | ||
Additional paid-in capital | 1,611,582,669 | |||
|
| |||
1,611,749,916 | ||||
Total distributable earnings (loss) | 7,855,399 | |||
|
| |||
Net assets | $ | 1,619,605,315 | ||
|
|
Class A | ||||
Net assets applicable to outstanding shares | $ | 399,801,157 | ||
|
| |||
Shares of beneficial interest outstanding | 41,283,569 | |||
|
| |||
Net asset value per share outstanding | $ | 9.68 | ||
Maximum sales charge (1.00% of offering price) | 0.10 | |||
|
| |||
Maximum offering price per share outstanding | $ | 9.78 | ||
|
| |||
Class A2 | ||||
Net assets applicable to outstanding shares | $ | 6,600,515 | ||
|
| |||
Shares of beneficial interest outstanding | 680,972 | |||
|
| |||
Net asset value per share | $ | 9.69 | ||
|
| |||
Investor Class | ||||
Net assets applicable to outstanding shares | $ | 3,989,715 | ||
|
| |||
Shares of beneficial interest outstanding | 410,718 | |||
|
| |||
Net asset value per share outstanding | $ | 9.71 | ||
Maximum sales charge (0.50% of offering price) | 0.05 | |||
|
| |||
Maximum offering price per share outstanding | $ | 9.76 | ||
|
| |||
Class I | ||||
Net assets applicable to outstanding shares | $ | 1,209,213,928 | ||
|
| |||
Shares of beneficial interest outstanding | 124,871,750 | |||
|
| |||
Net asset value and offering price per share outstanding | $ | 9.68 | ||
|
|
54 | MainStay MacKay Short Term Municipal Fund | The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. |
Statement of Operations for the six months ended October 31, 2020 (Unaudited)
Investment Income (Loss) | ||||
Income | ||||
Interest | $ | 7,804,115 | ||
|
| |||
Expenses | ||||
Manager (See Note 3) | 1,895,727 | |||
Distribution/Service—Class A (See Note 3) | 351,880 | |||
Distribution/Service—Class A2 (See Note 3) | 709 | |||
Distribution/Service—Investor Class (See Note 3) | 5,248 | |||
Transfer agent (See Note 3) | 139,936 | |||
Registration | 70,782 | |||
Professional fees | 46,846 | |||
Shareholder communication | 20,491 | |||
Custodian | 16,535 | |||
Trustees | 5,534 | |||
Miscellaneous | 10,462 | |||
|
| |||
Total expenses before waiver/reimbursement | 2,564,150 | |||
Expense waiver/reimbursement from Manager (See Note 3) | (14,491 | ) | ||
|
| |||
Net expenses | 2,549,659 | |||
|
| |||
Net investment income (loss) | 5,254,456 | |||
|
| |||
Realized and Unrealized Gain (Loss) |
| |||
Net realized gain (loss) on investments | 439,631 | |||
Net change in unrealized appreciation (depreciation) on investments | 9,763,565 | |||
|
| |||
Net realized and unrealized gain (loss) | 10,203,196 | |||
|
| |||
Net increase (decrease) in net assets resulting from operations | $ | 15,457,652 | ||
|
|
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 55 |
Statements of Changes in Net Assets
for the years ended October 31, 2020 (Unaudited) and April 30, 2019
2020 | 2020 | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations: | ||||||||
Net investment income (loss) | $ | 5,254,456 | $ | 7,294,910 | ||||
Net realized gain (loss) | 439,631 | (105,695 | ) | |||||
Net change in unrealized appreciation (depreciation) | 9,763,565 | (1,222,177 | ) | |||||
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 15,457,652 | 5,967,038 | ||||||
|
| |||||||
Distributions to shareholders: | ||||||||
Class A | (1,314,469 | ) | (1,790,060 | ) | ||||
Class A2 | (1,626 | ) | — | |||||
Investor Class | (14,514 | ) | (43,444 | ) | ||||
Class I | (4,786,632 | ) | (6,253,078 | ) | ||||
|
| |||||||
Total distributions to shareholders | (6,117,241 | ) | (8,086,582 | ) | ||||
|
| |||||||
Capital share transactions: | ||||||||
Net proceeds from sale of shares | 1,253,730,268 | 598,830,379 | ||||||
Net asset value of shares issued to shareholders in reinvestment of distributions | 3,614,831 | 5,905,161 | ||||||
Cost of shares redeemed | (216,045,619 | ) | (487,623,791 | ) | ||||
|
| |||||||
Increase (decrease) in net assets derived from capital share transactions | 1,041,299,480 | 117,111,749 | ||||||
|
| |||||||
Net increase (decrease) in net assets | 1,050,639,891 | 114,992,205 | ||||||
Net Assets | ||||||||
Beginning of period | 568,965,424 | 453,973,219 | ||||||
|
| |||||||
End of period | $ | 1,619,605,315 | $ | 568,965,424 | ||||
|
|
56 | MainStay MacKay Short Term Municipal 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
Six months ended October 31, | Year ended April 30, | |||||||||||||||||||||||||||
Class A | 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 9.54 | $ | 9.58 | $ | 9.51 | $ | 9.56 | $ | 9.61 | $ | 9.54 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net investment income (loss) (a) | 0.04 | 0.13 | 0.12 | 0.10 | 0.08 | 0.07 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.15 | (0.03 | ) | 0.07 | (0.05 | ) | (0.05 | ) | 0.06 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total from investment operations | 0.19 | 0.10 | 0.19 | 0.05 | 0.03 | 0.13 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.05 | ) | (0.14 | ) | (0.12 | ) | (0.10 | ) | (0.08 | ) | (0.06 | ) | ||||||||||||||||
From net realized gain on investments | — | — | — | — | (0.00 | )‡ | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total distributions | (0.05 | ) | (0.14 | ) | (0.12 | ) | (0.10 | ) | (0.08 | ) | (0.06 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net asset value at end of period | $ | 9.68 | $ | 9.54 | $ | 9.58 | $ | 9.51 | $ | 9.56 | $ | 9.61 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total investment return (b) | 1.98 | % | 1.05 | % | 2.04 | %(c) | 0.54 | % | 0.27 | % | 1.41 | % | ||||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.78 | %†† | 1.30 | % | 1.28 | % | 1.06 | % | 0.79 | % | 0.69 | % | ||||||||||||||||
Net expenses (d) | 0.65 | %†† | 0.69 | % | 0.71 | % | 0.80 | % | 0.80 | % | 0.80 | % | ||||||||||||||||
Expenses (before waiver/reimbursement) (d) | 0.65 | %†† | 0.70 | % | 0.71 | % | 0.84 | % | 0.84 | % | 0.94 | % | ||||||||||||||||
Portfolio turnover rate | 17 | %(e) | 94 | %(e) | 96 | % | 69 | % | 85 | % | 66 | % | ||||||||||||||||
Net assets at end of period (in 000’s) | $ | 399,801 | $ | 152,614 | $ | 113,023 | $ | 98,982 | $ | 147,029 | $ | 111,768 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(c) | Total investment return may reflect adjustments to conform to generally accepted accounting principles. |
(d) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(e) | The portfolio turnover rate includes variable rate demand notes. |
Class A2 | September 30, 2020^ through October 31, 2020* | |||
Net asset value at beginning of period** | $ | 9.70 | ||
|
| |||
Net investment income (loss) (a) | 0.00 | ‡ | ||
Net realized and unrealized gain (loss) on investments | (9.70 | ) | ||
Net realized and unrealized gain (loss) on foreign currency transactions | 9.69 | |||
|
| |||
Total from investment operations | (0.01 | ) | ||
|
| |||
Net asset value at end of period | $ | 9.69 | ||
|
| |||
Total investment return (b) | (0.05 | %) | ||
Ratios (to average net assets)/Supplemental Data: | ||||
Net investment income (loss)†† | 0.20 | % | ||
Net expenses††(c) | 0.64 | % | ||
Portfolio turnover rate (d) | 17 | % | ||
Net assets at end of period (in 000’s) | $ | 6,601 |
* | Unaudited. |
^ | Inception date. |
‡ | Less than one cent per share. |
†† | Annualized. |
** | Based on the net asset value of Class A as of September 30, 2020. |
(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 distributions. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. | 57 |
Financial Highlights selected per share data and ratios
Six months ended October 31, | Year ended April 30, | |||||||||||||||||||||||||||
Investor Class | 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 9.57 | $ | 9.61 | $ | 9.54 | $ | 9.59 | $ | 9.64 | $ | 9.56 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net investment income (loss) (a) | 0.03 | 0.09 | 0.08 | 0.06 | 0.04 | 0.03 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.14 | (0.02 | ) | 0.07 | (0.05 | ) | (0.05 | ) | 0.07 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total from investment operations | 0.17 | 0.07 | 0.15 | 0.01 | (0.01 | ) | 0.10 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.03 | ) | (0.11 | ) | (0.08 | ) | (0.06 | ) | (0.04 | ) | (0.02 | ) | ||||||||||||||||
From net realized gain on investments | — | — | — | — | (0.00 | )‡ | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total distributions | (0.03 | ) | (0.11 | ) | (0.08 | ) | (0.06 | ) | (0.04 | ) | (0.02 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net asset value at end of period | $ | 9.71 | $ | 9.57 | $ | 9.61 | $ | 9.54 | $ | 9.59 | $ | 9.64 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total investment return (b) | 1.92 | % | 0.61 | % | 1.56 | % | 0.08 | % | (0.09 | %) | 1.06 | % | ||||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.53 | %†† | 0.98 | % | 0.81 | % | 0.60 | % | 0.42 | % | 0.30 | % | ||||||||||||||||
Net expenses (c) | 0.99 | %†† | 1.09 | % | 1.18 | % | 1.26 | % | 1.17 | % | 1.20 | % | ||||||||||||||||
Expenses (before waiver/reimbursement) (c) | 1.27 | %†† | 1.28 | % | 1.30 | % | 1.36 | % | 1.22 | % | 1.33 | % | ||||||||||||||||
Portfolio turnover rate | 17 | %(d) | 94 | %(d) | 96 | % | 69 | % | 85 | % | 66 | % | ||||||||||||||||
Net assets at end of period (in 000’s) | $ | 3,990 | $ | 4,158 | $ | 3,834 | $ | 3,366 | $ | 3,639 | $ | 3,663 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
Six months ended October 31, | Year ended April 30, | |||||||||||||||||||||||||||
Class I | 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 9.54 | $ | 9.58 | $ | 9.51 | $ | 9.56 | $ | 9.61 | $ | 9.54 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net investment income (loss) (a) | 0.05 | 0.15 | 0.15 | 0.13 | 0.10 | 0.09 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.15 | (0.02 | ) | 0.07 | (0.05 | ) | (0.05 | ) | 0.07 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total from investment operations | 0.20 | 0.13 | 0.22 | 0.08 | 0.05 | 0.16 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Less distributions: | ||||||||||||||||||||||||||||
From net investment income | (0.06 | ) | (0.17 | ) | (0.15 | ) | (0.13 | ) | (0.10 | ) | (0.09 | ) | ||||||||||||||||
From net realized gain on investments | — | — | — | — | (0.00 | )‡ | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total distributions | (0.06 | ) | (0.17 | ) | (0.15 | ) | (0.13 | ) | (0.10 | ) | (0.09 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net asset value at end of period | $ | 9.68 | $ | 9.54 | $ | 9.58 | $ | 9.51 | $ | 9.56 | $ | 9.61 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total investment return (b) | 2.12 | % | 1.34 | % | 2.34 | % | 0.84 | % | 0.54 | % | 1.66 | % | ||||||||||||||||
Ratios (to average net assets)/Supplemental Data: | ||||||||||||||||||||||||||||
Net investment income (loss) | 1.03 | %†† | 1.58 | % | 1.61 | % | 1.36 | % | 1.04 | % | 0.93 | % | ||||||||||||||||
Net expenses (c) | 0.40 | %†† | 0.40 | % | 0.40 | % | 0.50 | % | 0.54 | % | 0.55 | % | ||||||||||||||||
Expenses (before waiver/reimbursement) (c) | 0.40 | %†† | 0.45 | % | 0.45 | % | 0.59 | % | 0.59 | % | 0.68 | % | ||||||||||||||||
Portfolio turnover rate | 17 | %(d) | 94 | %(d) | 96 | % | 69 | % | 85 | % | 66 | % | ||||||||||||||||
Net assets at end of period (in 000’s) | $ | 1,209,214 | $ | 412,193 | $ | 337,116 | $ | 157,945 | $ | 164,798 | $ | 211,369 |
* | Unaudited. |
‡ | Less than one cent per share. |
†† | Annualized. |
(a) | Per share data based on average shares outstanding during the period. |
(b) | Total investment return is calculated exclusive of sales charges and assumes the reinvestment of distributions. Class I shares are not subject to sales charges. For periods of less than one year, total return is not annualized. |
(c) | In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios. |
(d) | The portfolio turnover rate includes variable rate demand notes. |
58 | MainStay MacKay Short Term Municipal Fund | The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. |
Notes to Financial Statements (Unaudited)
Note 1–Organization and Business
MainStay Funds Trust (the “Trust”) was organized as a Delaware statutory trust on April 28, 2009. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and is comprised of thirty-four funds (collectively referred to as the “Funds”). These financial statements and notes relate to the Mainstay MacKay Short Term Municipal Fund (the “Fund”), a “diversified” fund, as that term is defined in the 1940 Act, as interpreted or modified by regulatory authorities having jurisdiction, from time to time.
The Fund currently has six classes of shares registered for sale. Class I shares commenced operations on January 2, 1991. Class A shares commenced operations on January 2, 2004. Investor Class shares commenced operations on February 28, 2008. Class A2 shares commenced operations on September 30, 2020. Class R6 shares were registered for sale effective as of February 28, 2017. As of October 31, 2020, Class R6 shares were not yet offered for sale. SIMPLE Class shares were registered for sale effective as of August 31, 2020. As of October 31, 2020, SIMPLE Class shares were not yet offered for sale.
Class A and Investor Class shares are offered at net asset value (“NAV”) per share plus an initial sales charge. No initial sales charge applies to investments of $250,000 or more (and certain other qualified purchases) in Class A and Investor Class shares. However, a contingent deferred sales charge (“CDSC”) of 0.50% may be imposed on certain redemptions made within 12 months of the date of purchase on shares that were purchased without an initial sales charge. Class A2 shares are offered at NAV without an initial sales charge, although a 2.00% CDSC may be imposed on certain redemptions of such shares made within one year of the date of purchase of Class A2 shares. Class I shares are offered at NAV without a sales charge. Class R6 shares are currently expected to be offered at NAV without a sales charge. SIMPLE Class shares are currently expected to be offered at NAV without a sales charge. Additionally, Investor Class shares may convert automatically to Class A shares. Under certain circumstances and as may be permitted by the Trust’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act, specified share classes of the Fund may be converted to one or more other share classes of the Fund as disclosed in the capital share transactions within these Notes. The classes of shares have the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights, and the same terms and conditions, except that under distribution plans pursuant to Rule 12b-1 under the 1940 Act, Class A, Investor Class and SIMPLE Class shares are subject to a distribution and/or service fee. Class I and Class R6 shares are not subject to a distribution and/or service fee.
The Fund’s investment objective is to seek current income exempt from regular federal income tax.
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 usually valued as of the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) on each day the Fund is open for business (“valuation date”).
The Board of Trustees of the Trust (the “Board”) adopted procedures establishing methodologies for the valuation of the Fund’s securities and other assets and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Trust (the “Valuation Committee”). The procedures state 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 assess the appropriateness of security valuations, the Manager, the 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.
The Board authorized the Valuation Committee to appoint a Valuation Subcommittee (the “Subcommittee”) to establish the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under the procedures. The Subcommittee meets (in person, via electronic mail or via teleconference) on an as-needed basis. The Valuation Committee meets to ensure that actions taken by the Subcommittee were appropriate.
For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Subcommittee deals with such valuation and the Valuation Committee reviews and affirms, if appropriate, the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. Any action taken by the Subcommittee with respect to the valuation of a portfolio security or other asset is submitted for review and ratification (if appropriate) to the Valuation Committee and the Board at the next regularly scheduled meeting.
“Fair value” is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy that maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. “Inputs” refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on
59 |
Notes to Financial Statements (Unaudited) (continued)
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.) |
• | Level 3—significant unobservable inputs (including the Fund’s own assumptions about the assumptions that market participants would use in measuring fair value of an asset or liability) |
The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. The aggregate value by input level of the Fund’s assets and liabilities as of October 31, 2020, is included at the end of the Portfolio of Investments.
The Fund may use third-party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:
• Benchmark yields | • Reported trades | |
• Broker/dealer quotes | • Issuer spreads | |
• Two-sided markets | • Benchmark securities | |
• Bids/offers | • Reference data (corporate actions or material event notices) | |
• Industry and economic events | • Comparable bonds | |
• Monthly payment information |
An asset or liability for which 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. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Fund’s valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Fund’s valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security’s sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact,
approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the six-month period ended October 31, 2020, 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 delisted 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 the 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 valued in this manner are generally categorized as Level 3 in the hierarchy. No securities held by the Fund as of October 31, 2020 were fair valued in such a manner.
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. The evaluations are market-based measurements processed through a pricing application and represents the pricing agent’s good faith determination as to what a holder may receive in an orderly transaction under market conditions. The rules-based logic utilizes valuation techniques that reflect participants’ assumptions and vary by asset class and per methodology, maximizing the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. The evaluated bid or mean prices are deemed by the 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 are generally categorized as Level 2 in the hierarchy.
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.
In calculating NAV, each closed end fund is valued at market value, which will generally be determined using the last reported official closing or last trading price on the exchange or market on which the security is primarily traded at the time of valuation. Price information on closed end funds is taken from the exchange where the security is primarily traded. In addition, because closed-end funds and exchange-traded funds trade on a secondary market, their shares may trade at a premium or discount to the actual net asset value of their portfolio securities and their shares may have greater volatility because of the potential lack of liquidity.
Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities and ratings), both as furnished by independent pricing services. Temporary cash investments that mature
60 | MainStay MacKay Short Term Municipal Fund |
in 60 days or less at the time of purchase (“Short-Term Investments”) are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between such cost and the value on maturity date. Amortized cost approximates the current fair value of a security. Securities valued using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.
The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The valuation procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.
(B) Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all of its taxable income to the shareholders of the Fund within the allowable time limits.
The Manager evaluates the Fund’s tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is permitted only to the extent the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Manager analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years) and has concluded that no provisions for federal, state and local income tax are required in the Fund’s financial statements. The Fund’s federal, state and local income tax and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.
(C) Dividends and Distributions to Shareholders. Dividends and distributions are recorded on the ex-dividend date. The Fund intends to declare dividends from net investment income, if any, daily and intends to pay them at least monthly and distributions from net realized capital and currency gains, if any, at least annually. Unless a shareholder elects otherwise, all dividends and distributions are reinvested at NAV in the same class of shares of the Fund. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations and may differ from determinations using GAAP.
(D) Security Transactions and Investment Income. The Fund records security transactions on the trade date. Realized gains and losses on security transactions are determined using the identified cost method. Interest income is accrued as earned using the effective interest rate method and includes any realized gains and losses from repayments of principal on mortgage-backed securities. Distributions received from real estate investment trusts may be classified as
dividends, capital gains and/or return of capital. Discounts and premiums on securities purchased, other than Short-Term Investments, for the Fund are accreted and amortized, respectively, on the effective interest rate method.
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated pro rata to the separate classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized gains and losses are incurred.
The Fund may place a debt security on non-accrual status and reduce related interest income by ceasing current accruals and writing off all or a portion of any interest receivables when the collection of all or a portion of such interest has become doubtful. A debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
(E) Expenses. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the respective Funds when the expenses are incurred, except where direct allocations of expenses can be made. Expenses (other than transfer agent expenses and fees incurred under the shareholder services plans and/or the distribution plans further discussed in Note 3(B)) are allocated to separate classes of shares pro rata based upon their relative net assets on the date the expenses are incurred. The expenses borne by the Fund, including those of related parties to the Fund, are shown in the Statement of Operations. Additionally, the Fund may invest in mutual funds, which are subject to management fees and other fees that may cause the costs of investing in mutual funds to be greater than the costs of owning the underlying securities directly. These indirect expenses of mutual funds are not included in the amounts shown as expenses in the Statement of Operations or in the expense ratios included in the Financial Highlights.
(F) Use of Estimates. In preparing financial statements in conformity with GAAP, the Manager makes estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and assumptions.
(G) Futures Contracts. A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., interest rate, security or securities index). The Fund is subject to risks such as market price risk and/or interest rate risk in the normal course of investing in these contracts. Upon entering into a futures contract, the Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation by marking to market such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. The Fund agrees to receive from or pay to the broker or futures commission merchant an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin.” When the futures contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.
61 |
Notes to Financial Statements (Unaudited) (continued)
The use of futures contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract or notional amounts and variation margin reflect the extent of the Fund’s involvement in open futures positions. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when the Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures contracts may involve a small initial investment relative to the risk assumed, which could result in losses greater than if the Fund did not invest in futures contracts. Futures contracts may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. The Fund’s activities in futures contracts have minimal counterparty risk as they are conducted through regulated exchanges that guarantee the futures against default by the counterparty. In the event of a bankruptcy or insolvency of a futures commission merchant that holds margin on behalf of the Fund, the Fund may not be entitled to the return of the entire margin owed to the Fund, potentially resulting in a loss.
The Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAVs and may result in a loss to the Fund. As of October 31, 2020, the Fund did not hold any futures contracts.
(H) Debt Securities Risk. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by, among other things, economic or political developments in a specific country, industry or region.
(I) Municipal Bond 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 that 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, regulatory occurrences, or declines in tax revenue impacting these particular cities, states or regions. In addition, many state and municipal governments that issue securities are under significant economic and financial stress and may not be able to satisfy their obligations, and these events may be made worse due to economic challenges posed by COVID-19. The Fund may invest a substantial amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects, such as tobacco settlement bonds. If the Fund concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and this may have a significant impact on the Fund’s investment performance.
Certain of the issuers in which the Fund may invest have recently experienced, or may experience, significant financial difficulties and repeated credit rating downgrades. On May 3, 2017, the Commonwealth of Puerto Rico began proceedings pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) to seek bankruptcy-type protections from approximately $74 billion in debt and approximately $48 billion in unfunded pension obligations. In addition,
the economic downturn following the outbreak of COVID-19 and the resulting pressure on Puerto Rico’s budget have further contributed to its financial challenges. Puerto Rico has reached agreements with certain bondholders to restructure outstanding debt issued by certain of Puerto Rico’s instrumentalities and is negotiating the restructuring of its debt with certain other bondholders. Any agreement to restructure such outstanding debt must be approved by the judge overseeing the debt restructuring. Puerto Rico’s debt restructuring process and other economic, political, social, environmental or health factors or developments could occur rapidly and may significantly affect the value of municipal securities of Puerto Rico. Due to the ongoing budget impact from Covid-19 on the Commonwealth’s finances, the Federal Oversight and Management Board or the Commonwealth could seek to revise or even terminate earlier agreements reached with certain creditors prior to the outbreak of COVID-19. Any agreement between the Federal Oversight and Management Board and creditors is subject to approval by the judge overseeing the Title III proceedings. The composition of the Federal Oversight and Management Board is changing significantly due to existing members either stepping down or being replaced as the current board’s term has expired. There is no assurance that newly appointed board members will approve the restructuring agreements the prior board had negotiated. The Fund’s vulnerability to potential losses associated with such developments may be reduced through investing in municipal securities that feature credit enhancements (such as bond insurance). The bond insurance provider pays both principal and interest when due to the bond holder. The magnitude of Puerto Rico’s debt restructuring or other adverse economic developments could pose significant strains on the ability of municipal securities insurers to meet all future claims. As of October 31, 2020, 100.0% of the Puerto Rico municipal securities held by the Fund were insured.
In light of the spread of the novel coronavirus in early 2020 to Puerto Rico and globally, the presiding Judge Laura Taylor adjourned most of the Commonwealth’s PROMESA proceedings for public health reasons and negotiations between Puerto Rico and its instrumentalities and their respective creditors to restructure outstanding debt obligations remain ongoing.
(J) Indemnifications. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that may provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Manager believes that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Fund.
Note 3–Fees and Related Party Transactions
(A) Manager and Subadvisor. New York Life Investments, a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”), serves as the Fund’s Manager, pursuant to an Amended and Restated Management
62 | MainStay MacKay Short Term Municipal Fund |
Agreement (“Management Agreement”). The Manager provides offices, conducts clerical, recordkeeping and bookkeeping services and keeps most of the financial and accounting records required to be maintained by the Fund. Except for the portion of salaries and expenses that are the responsibility of the Fund, the Manager pays the salaries and expenses of all personnel affiliated with the Fund and certain operational expenses of the Fund. The Fund reimburses New York Life Investments in an amount equal to the portion of the compensation of the Chief Compliance Officer attributable to the Fund. MacKay Shields LLC (“MacKay Shields” or the “Subadvisor”), a registered investment adviser and an indirect, wholly-owned subsidiary of New York Life, serves as Subadvisor to the Fund and is responsible for the day-to-day portfolio
management of the Fund. Pursuant to the terms of an Amended and Restated Subadvisory Agreement (“Subadvisory Agreement”) between New York Life Investments and MacKay Shields, New York Life Investments pays for the services of the Subadvisor.
Pursuant to the Management Agreement, the Fund pays the Manager a monthly fee for the services performed and the facilities furnished at an annual rate of the Fund’s average daily net assets as follows: 0.35% on assets up to $1 billion; and 0.33% on assets over $1 billion. During the six-month period ended October 31, 2020, the effective management fee rate was 0.35%, (exclusive of any applicable waivers/reimbursements).
New York Life Investments has contractually agreed to waive fees and/or reimburse expenses so that Total Annual Fund Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments and acquired (underlying) fund fees and expenses) do not exceed: Class A, 0.70% and Class I, 0.40% of its average daily net assets. New York Life Investments will apply an equivalent waiver or reimbursement, in an equal number of basis points of the Class A shares waiver/reimbursement, to Investor Class shares. New York Life Investments will waive fees and/or reimburse expenses so that Class R6 fees and expenses do not exceed those of Class I. This agreement will remain in effect until August 31, 2021, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
New York Life has also contractually agreed to waive fees and/or reimburse expenses so that Total Annual Operating Expenses (excluding taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses) do not exceed 0.70% of its average daily net assets for Class A2 shares. This agreement will remain in effect until September 30, 2021, and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board.
During the six-month period ended October 31, 2020, New York Life Investments earned fees from the Fund in the amount of $1,895,727 and waived fees and/or reimbursed expenses including the waiver/ reimbursement of certain class specific expenses in the amount of $14,491 and paid the Subadvisor in the amount of $938,521.
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.
Pursuant to an agreement between the Trust and New York Life Investments, New York Life Investments is responsible for providing or procuring certain regulatory reporting services for the Fund. The Fund will reimburse New York Life Investments for the actual costs incurred by New York Life Investments in connection with providing or procuring these services for the Fund.
(B) Distribution and Service Fees. The Trust, on behalf of the Fund, has entered into a distribution agreement with NYLIFE Distributors LLC (the “Distributor”), an affiliate of New York Life Investments. The Fund has adopted distribution plans (the “Plans”) in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A, Class A2 and Investor Class Plans, the Distributor receives a monthly distribution fee from Class A, Class A2 and Investor Class shares at an annual rate of 0.25% of the average daily net assets of the Class A, Class A2 and Investor Class shares for distribution and/or service activities as designated by the Distributor. Class I shares are not subject to a distribution and/or service fee.
The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Fund’s shares and service activities.
(C) Sales Charges. The Fund was advised by the Distributor that the amount of initial sales charges retained on sales of Class A and Investor Class shares during the six-month period ended October 31, 2020, were $4,760 and $208, respectively.
The Fund was also advised that the Distributor retained CDSCs on redemptions of Class A shares during the six-month period ended October 31, 2020, of $25,605.
(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 DST Asset Manager Solutions, Inc. (“DST”), pursuant to which DST performs certain transfer agent services on behalf of NYLIM Service Company LLC. New York Life Investments has contractually agreed to limit the transfer agency expenses charged to the Fund’s share classes to a maximum of 0.35% of that share class’s average daily net assets on an annual basis after deducting any applicable Fund or class-level expense reimbursement or small account fees. This agreement will remain in effect until August 31, 2021 and shall renew automatically for one-year terms unless New York Life Investments provides written notice of termination prior to the start of the next term or upon approval of the Board. During
63 |
Notes to Financial Statements (Unaudited) (continued)
the six-month period ended October 31, 2020, transfer agent expenses incurred by the Fund and reimbursements, pursuant to the aforementioned Transfer Agency expense limitation agreement, waivers were as follows:
Class | Expense | Waived | ||||||
Class A | $ | 32,825 | $ | — | ||||
Investor Class | 13,349 | (5,980 | ) | |||||
Class A2 | 66 | — | ||||||
Class I | 93,696 | — |
(E) Small Account Fee. Shareholders with small accounts adversely impact the cost of providing transfer agency services. In an effort to reduce total transfer agency expenses, the Fund has implemented a small account fee on certain types of accounts. As described in the Fund’s prospectus, certain shareholders with an account balance of less than $1,000 ($5,000 for Class A share accounts) are charged an annual per account fee of $20 (assessed semi-annually), the proceeds from which offset transfer agent fees as reflected in the Statement of Operations. This small account fee will not apply to certain types of accounts as described further in the Fund’s prospectus.
(F) Capital. As of October 31, 2020, New York Life and its affiliates beneficially held shares of the Fund with the values and percentages of net assets as follows:
Class A | $ | 16,331,430 | 4.1 | % | ||||
Class A2 | 24,974 | 0.4 |
Note 4–Federal Income Tax
As of October 31, 2020, the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, including applicable derivative contracts and other financial instruments, as determined on a federal income tax basis, were as follows:
Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Investments in Securities | $ | 1,551,262,082 | $ | 11,704,021 | $ | (2,161,979 | ) | $ | 9,542,042 |
As of April 30, 2020, for federal income tax purposes, capital loss carryforwards of $1,235,603, 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 have expired.
Capital Loss Available Through | Short-Term Capital Loss Amounts (000’s) | Long-Term Capital Loss Amounts (000’s) | ||
Unlimited | $791 | $445 |
During the years ended October 31, 2020, and April 30, 2020, the tax character of distributions paid as reflected in the Statements of Changes in Net Assets were as follows:
Distributions paid from: | ||||
Ordinary Income | $ | 40,673 | ||
Exempt Interest Dividends | 8,045,909 | |||
Total | $ | 8,086,582 |
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 transactions incurred by the Fund.
Note 6–Line of Credit
The Fund and certain other funds managed by New York Life Investments maintain a line of credit with a syndicate of banks in order to secure a source of funds for temporary purposes to meet unanticipated or excessive redemption requests.
Effective July 28, 2020, under the credit agreement (the “Credit Agreement”), the aggregate commitment amount is $600,000,000 with an additional uncommitted amount of $100,000,000. The commitment fee is an annual rate of 0.15% of the average commitment amount payable quarterly, regardless of usage, to JPMorgan Chase Bank NA, who serves as the agent to the syndicate. The commitment fee is allocated among the Fund and certain other funds managed by New York Life Investments based upon their respective net assets and other factors. Interest on any revolving credit loan is charged based upon the Federal Funds Rate or the one-month London Interbank Offered Rate (“LIBOR”), whichever is higher. The Credit Agreement expires on July 27, 2021, although the Fund, certain other funds managed by New York Life Investments and the syndicate of banks may renew the Credit Agreement for an additional year on the same or different terms or enter into a credit agreement with a different syndicate of banks. Prior to July 28, 2020, the aggregate commitment amount and the commitment fee were the same as those under the current Credit Agreement, but State Street served as agent to the syndicate. During the six-month period ended October 31, 2020, there were no borrowings made or outstanding with respect to the Fund under the Credit Agreement or the credit agreement for which State Street served as agent.
Note 7–Interfund Lending Program
Pursuant to an exemptive order issued by the SEC, the Fund, along with certain other funds managed by New York Life Investments, may participate in an interfund lending program. The interfund lending program provides an alternative credit facility that permits the Fund and certain other funds managed by New York Life Investments to lend or borrow money for temporary purposes directly to or from one another subject to the conditions of the exemptive order. During the six-month period ended October 31, 2020, there were no interfund loans made or outstanding with respect to the Fund.
Note 8–Purchases and Sales of Securities (in 000’s)
During the six-month period ended October 31, 2020, purchases and sales of securities, other than short-term securities, were $1,083,117 and $155,217, respectively.
64 | MainStay MacKay Short Term Municipal Fund |
The Fund may purchase securities from or sell securities to other portfolios managed by the Subadvisor. These interportfolio transactions are primarily used for cash management purposes and are made pursuant to Rule 17a-7 under the 1940 Act. During the six-month period ended October 31, 2020, such purchases were $65,848.
Note 9–Capital Share Transactions
Transactions in capital shares for the six-month period ended October 31, 2020 and the year ended April 30, 2020, were as follows:
Class A | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 30,787,016 | $ | 297,925,144 | |||||
Shares issued to shareholders in reinvestment of distributions | 99,548 | 963,398 | ||||||
Shares redeemed | (5,661,295 | ) | (54,781,793 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 25,225,269 | 244,106,749 | ||||||
Shares converted into Class A (See Note 1) | 64,031 | 619,756 | ||||||
|
| |||||||
Net increase (decrease) | 25,289,300 | $ | 244,726,505 | |||||
|
| |||||||
Year ended April 30, 2020: | ||||||||
Shares sold | 14,392,027 | $ | 138,183,004 | |||||
Shares issued to shareholders in reinvestment of distributions | 167,115 | 1,607,404 | ||||||
Shares redeemed | (10,426,586 | ) | (100,270,675 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 4,132,556 | 39,519,733 | ||||||
Shares converted into Class A (See Note 1) | 94,440 | 907,322 | ||||||
Shares converted from Class A (See Note 1) | (26,919 | ) | (258,313 | ) | ||||
|
| |||||||
Net increase (decrease) | 4,200,077 | $ | 40,168,742 | |||||
|
| |||||||
Class A2 | Shares | Amount | ||||||
Period ended October 31, 2020 (a): | ||||||||
Shares sold | 695,257 | $ | 6,742,064 | |||||
Shares issued to shareholders in reinvestment of distributions | 168 | 1,626 | ||||||
Shares redeemed | (14,453 | ) | (140,195 | ) | ||||
|
| |||||||
Net increase (decrease) | 680,972 | $ | 6,603,495 | |||||
|
|
Investor Class | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 138,479 | $ | 1,341,395 | |||||
Shares issued to shareholders in reinvestment of distributions | 1,446 | 14,026 | ||||||
Shares redeemed | (99,951 | ) | (967,707 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 39,974 | 387,714 | ||||||
Shares converted from Investor Class (See Note 1) | (63,840 | ) | (619,756 | ) | ||||
|
| |||||||
Net increase (decrease) | (23,866 | ) | $ | (232,042 | ) | |||
|
| |||||||
Six-month period ended April 30, 2020: | ||||||||
Shares sold | 421,609 | $ | 4,064,884 | |||||
Shares issued to shareholders in reinvestment of distributions | 4,303 | 41,488 | ||||||
Shares redeemed | (322,899 | ) | (3,114,767 | ) | ||||
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 103,013 | 991,605 | ||||||
Shares converted into Investor Class (See Note 1) | 26,842 | 258,313 | ||||||
Shares converted from Investor Class (See Note 1) | (94,228 | ) | (907,322 | ) | ||||
|
| |||||||
Net increase (decrease) | 35,627 | $ | 342,596 | |||||
|
| |||||||
Class I | Shares | Amount | ||||||
Six-month period ended October 31, 2020: | ||||||||
Shares sold | 97,954,332 | $ | 947,721,665 | |||||
Shares issued to shareholders in reinvestment of distributions | 272,279 | 2,635,781 | ||||||
Shares redeemed | (16,559,833 | ) | (160,155,924 | ) | ||||
|
| |||||||
Net increase (decrease) | 81,666,778 | $ | 790,201,522 | |||||
|
| |||||||
Year ended April 30, 2020: | ||||||||
Shares sold | 47,548,072 | $ | 456,582,492 | |||||
Shares issued to shareholders in reinvestment of distributions | 442,537 | 4,256,269 | ||||||
Shares redeemed | (39,971,679 | ) | (384,238,350 | ) | ||||
|
| |||||||
Net increase (decrease) | 8,018,930 | $ | 76,600,411 | |||||
|
|
(a) | The inception date of the class was September 30, 2020. |
Note 10–Recent Accounting Pronouncement
To improve the effectiveness of fair value disclosure requirements, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13, Fair Value Measurement Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which adds, removes, and modifies certain fair value measurement disclosure requirements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019. The Manager evaluated the implications of certain provisions of ASU 2018-13 and determined to early adopt aspects related to the removal and modifications of certain fair value measurement disclosures, which are currently in place as of October 31, 2020. The Manager is evaluating the implications of certain other provisions of ASU 2018-13 related to new disclosure requirements and has not yet determined the impact of those provisions on the financial statement disclosures, if any.
65 |
Notes to Financial Statements (Unaudited) (continued)
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-04 (“ASU 2020-04”), which provides optional guidance to ease the potential accounting burden associated with transitioning away from LIBOR and other reference rates that are expected to be discontinued. ASU 2020-04 is effective immediately upon release of the update on March 12, 2020, through December 31, 2022. At this time, the Manager is evaluating the implications of certain other provisions of ASU 2020-04 related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
Note 11–Other Matters
An outbreak of COVID-19, first detected in December 2019, has developed into a global pandemic and has resulted in travel restrictions, closure of international borders, certain businesses and securities markets, restrictions on securities trading activities, prolonged quarantines, supply chain disruptions, and lower consumer demand, as well
as general concern and uncertainty. The continued impact of COVID-19 is uncertain and could further adversely affect the global economy, national economies, individual issuers and capital markets in unforeseeable ways and result in a substantial and extended economic downturn. Developments that disrupt global economies and financial markets, such as COVID-19, may magnify factors that affect the Fund’s performance.
Note 12–Subsequent Events
In connection with the preparation of the financial statements of the Fund as of and for the year ended October 31, 2020, events and transactions subsequent to October 31, 2020, through the date the financial statements were issued have been evaluated by the Manager, for possible adjustment and/or disclosure. No subsequent events requiring financial statement adjustment or disclosure have been identified.
66 | MainStay MacKay Short Term Municipal Fund |
Proxy Voting Policies and Procedures and Proxy Voting Record
A description of the policies and procedures that New York Life Investments uses to vote proxies related to the Fund’s securities is available free of charge upon request, by visiting the MainStay Funds’ website at newyorklifeinvestments.com or visiting the SEC’s website at www.sec.gov.
The Fund is required to file with the SEC its proxy voting records for the 12-month period ending June 30 on Form N-PX. The most recent Form N-PX or proxy voting record is available free of charge upon request by calling 800-624-6782; visiting the MainStay Funds’ website at newyorklifeinvestments.com; or visiting the SEC’s website at www.sec.gov.
Shareholder Reports and Quarterly Portfolio Disclosure
The Fund is required to file its complete schedule of portfolio holdings with the SEC 60 days after its first and third fiscal quarter on Form N-PORT. The Fund’s holdings report is available free of charge by visiting the SEC’s website at www.sec.gov or upon request by calling New York Life Investments at 800-624-6782.
67 |
MainStay Funds
Equity
U.S. Equity
MainStay Epoch U.S. All Cap Fund
MainStay Epoch U.S. Equity Yield Fund
MainStay MacKay Common Stock Fund
MainStay MacKay Growth Fund
MainStay MacKay S&P 500 Index Fund
MainStay MacKay Small Cap Core Fund
MainStay MacKay U.S. Equity Opportunities Fund
MainStay MAP Equity Fund
MainStay Winslow Large Cap Growth Fund1
International Equity
MainStay Epoch International Choice Fund
MainStay MacKay International Equity Fund
MainStay MacKay International Opportunities Fund
Emerging Markets Equity
MainStay Candriam Emerging Markets Equity Fund
Global Equity
MainStay Epoch Capital Growth Fund
MainStay Epoch Global Equity Yield Fund
Fixed Income
Taxable Income
MainStay Candriam Emerging Markets Debt Fund
MainStay Floating Rate Fund
MainStay MacKay High Yield Corporate Bond Fund
MainStay MacKay Short Duration High Yield Fund
MainStay MacKay Total Return Bond Fund
MainStay MacKay Unconstrained Bond Fund
MainStay MacKay U.S. Infrastructure Bond Fund2
MainStay Short Term Bond Fund3
Tax-Exempt Income
MainStay MacKay California Tax Free Opportunities Fund4
MainStay MacKay High Yield Municipal Bond Fund
MainStay MacKay Intermediate Tax Free Bond Fund
MainStay MacKay New York Tax Free Opportunities Fund5
MainStay MacKay Short Term Municipal Fund
MainStay MacKay Tax Free Bond Fund
Money Market
MainStay Money Market Fund
Mixed Asset
MainStay Balanced Fund
MainStay Income Builder Fund
MainStay MacKay Convertible Fund
Speciality
MainStay CBRE Global Infrastructure Fund
MainStay CBRE Real Estate Fund
MainStay Cushing MLP Premier Fund
Asset Allocation
MainStay Conservative Allocation Fund
MainStay Conservative ETF Allocation Fund
MainStay Defensive ETF Allocation Fund
MainStay Equity Allocation Fund6
MainStay Equity ETF Allocation Fund
MainStay Growth Allocation Fund7
MainStay Growth ETF Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate ETF Allocation Fund
Manager
New York Life Investment Management LLC
New York, New York
Subadvisors
Candriam Belgium S.A.8
Brussels, Belgium
Candriam Luxembourg S.C.A.8
Strassen, Luxembourg
CBRE Clarion Securities LLC
Radnor, Pennsylvania
Cushing Asset Management, LP
Dallas, Texas
Epoch Investment Partners, Inc.
New York, New York
MacKay Shields LLC8
New York, New York
Markston International LLC
White Plains, New York
NYL Investors LLC8
New York, New York
Winslow Capital Management, LLC
Minneapolis, Minnesota
Legal Counsel
Dechert LLP
Washington, District of Columbia
Independent Registered Public Accounting Firm
KPMG LLP
Philadelphia, Pennsylvania
Distributor
NYLIFE Distributors LLC8
Jersey City, New Jersey
Custodian9
State Street Bank and Trust Company
Boston, Massachusetts
1. | Formerly known as MainStay Large Cap Growth Fund. |
2. | Formerly known as MainStay MacKay Infrastructure Bond Fund. |
3. | Formerly known as MainStay Indexed Bond Fund. |
4. | This Fund is registered for sale in AZ, CA, NV, OR, TX, UT and WA. Class A and Class I shares are registered for sale in MI. Class I and Class C2 shares are registered for sale in CO, FL, GA, HI, ID, MA, MD, NH, NJ and NY. |
5. | This Fund is registered for sale in CA, CT, DE, FL, MA, NJ, NY and VT. |
6. | Formerly known as MainStay Growth Allocation Fund. |
7. | Formerly known as MainStay Moderate Growth Allocation Fund. |
8. | An affiliate of New York Life Investment Management LLC. |
9. | The custodian for MainStay Cushing MLP Premier Fund is U.S. Bank National Association, Milwaukee, Wisconsin and the custodian for the MainStay ETF Asset Allocation Funds is JPMorgan Chase Bank, N.A., New York, New York. |
Not part of the Semiannual Report
For more information
800-624-6782
newyorklifeinvestments.com
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
©2020 NYLIFE Distributors LLC. All rights reserved.
1716479 MS203-20 | MSSTM10-12/20 (NYLIM) NL230 |
Item 2. | Code of Ethics. |
Not applicable.
Item 3. | Audit Committee Financial Expert. |
Not applicable.
Item 4. | Principal Accountant Fees and Services. |
Not applicable.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Investments. |
The Schedule of Investments is included as part of Item 1 of this report.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
Since the Registrant’s last response to this Item, there have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. | Controls and Procedures. |
(a) | Based on an evaluation of the Registrant’s Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) (the “Disclosure Controls”), as of a date within 90 days prior to the filing date (the “Filing Date”) of this Form N-CSR (the “Report”), the Registrant’s principal executive officer and principal financial officer have concluded that the Disclosure Controls are reasonably designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the Filing Date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d)) under the Investment Company Act of 1940 that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. | Exhibits. |
(a) |
(b) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
MAINSTAY FUNDS TRUST | ||
By: | /s/ Kirk C. Lehneis | |
Kirk C. Lehneis | ||
President and Principal Executive Officer | ||
Date: | January 8, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Kirk C. Lehneis | |
Kirk C. Lehneis | ||
President and Principal Executive Officer | ||
Date: | January 8, 2021 | |
By: | /s/ Jack R. Benintende | |
Jack R. Benintende | ||
Treasurer and Principal Financial and Accounting Officer | ||
Date: | January 8, 2021 |
EXHIBIT INDEX
(a) |
(b) |