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Investment Objective
The MainStay High Yield Corporate Bond Fund's objective is to seek maximum current income through investment in a diversified portfolio of high-yield debt securities. Capital appreciation is a secondary objective.
MacKay Shields Insights
Daily Prices
Share Class
NAV
POP1
as of 06/18/2013
Class A
6.10
6.39
Class INV
6.16
6.45
Class B
6.07
n/a
Class C
6.07
n/a
Class I
6.11
n/a
Class R1
6.10
n/a
Class R2
6.10
n/a
Class R6
6.11
n/a
Fund Overview
Share Class
First Offered
Nasdaq Symbol
Cusip Number
Fund Number
Class A
01/03/1995
MHCAX
56062F772
643
Class INV
02/28/2008
MHHIX
56062X476
2547
Class B
05/01/1986
MKHCX
56062F400
43
Class C
09/01/1998
MYHCX
56062F376
193
Class I
01/02/2004
MHYIX
56062X708
1562
Class R1
06/29/2012
MHHRX
56062X344
2445
Class R2
05/01/2008
MHYRX
56063N501
2531
Class R6
06/17/2013
MHYSX
56063N881
2684
Fund Performance
Share Class (Inception)
Category: Taxable Bond
YTD %
1 Year %
3 Year %
5 Year %
10 Year %
Since Incep. %
Monthly Average Annual Total Returns as of 05/31/2013
NAV:
Class A (01/03/1995)
3.55
12.26
10.54
8.64
8.79
9.04
Class INV (02/28/2008)
3.68
12.50
10.55
8.60
8.77
9.04
Class B (05/01/1986)
3.24
11.46
9.73
7.77
7.93
8.25
Class C (09/01/1998)
3.41
11.64
9.72
7.77
7.95
8.26
Class I (01/02/2004)
3.82
12.70
10.87
8.92
9.07
9.31
Class R1 (06/29/2012)
3.62
12.43
10.71
8.74
8.91
9.23
Class R2 (05/01/2008)
3.69
12.35
10.51
8.54
8.69
8.98
With Sales Charges:
Class A (01/03/1995)
-1.11
7.21
8.86
7.65
8.29
8.86
Class INV (02/28/2008)
-0.98
7.44
8.87
7.60
8.27
8.85
Class B (05/01/1986)
-1.76
6.46
8.89
7.47
7.93
8.25
Class C (09/01/1998)
2.41
10.64
9.72
7.77
7.95
8.26
Class I (01/02/2004)
3.82
12.70
10.87
8.92
9.07
9.31
Class R1 (06/29/2012)
3.62
12.43
10.71
8.74
8.91
9.23
Class R2 (05/01/2008)
3.69
12.35
10.51
8.54
8.69
8.98
Quarterly Average Annual Total Returns as of 03/31/2013
NAV:
Class A (01/03/1995)
2.55
11.36
9.99
9.11
9.58
9.06
Class INV (02/28/2008)
2.53
11.24
9.88
9.02
9.54
9.05
Class B (05/01/1986)
2.37
10.56
9.11
8.23
8.74
8.27
Class C (09/01/1998)
2.37
10.56
9.10
8.23
8.74
8.27
Class I (01/02/2004)
2.61
11.62
10.25
9.35
9.86
9.32
Class R1 (06/29/2012)
2.59
11.52
10.08
9.20
9.72
9.25
Class R2 (05/01/2008)
2.53
11.27
9.83
9.01
9.48
8.99
With Sales Charges:
Class A (01/03/1995)
-2.06
6.35
8.32
8.11
9.08
8.88
Class INV (02/28/2008)
-2.09
6.24
8.21
8.02
9.04
8.86
Class B (05/01/1986)
-2.63
5.56
8.26
7.94
8.74
8.27
Class C (09/01/1998)
1.37
9.56
9.10
8.23
8.74
8.27
Class I (01/02/2004)
2.61
11.62
10.25
9.35
9.86
9.32
Class R1 (06/29/2012)
2.59
11.52
10.08
9.20
9.72
9.25
Class R2 (05/01/2008)
2.53
11.27
9.83
9.01
9.48
8.99
Class A & INV: 5.5% maximum initial sales charge. Class C: 1% CDSC if redeemed within one year. Class I: No initial sales charge or CDSC. Total annual operating expenses are: Class A: 4.15%, Investor Class: 4.11%, Class C: 4.90%, Class I: 2.94%, Class P 2.94%, Class R2 3.91%, R6 0.59%.
Daily Prices
Share Class
NAV
POP1
Change
% Change
% YTD
as of 06/18/2013
Class A
6.10
6.39
0.00
0.00
2.71
Class INV
6.16
6.45
0.00
0.00
2.85
Class B
6.07
n/a
0.00
0.00
2.40
Class C
6.07
n/a
0.00
0.00
2.40
Class I
6.11
n/a
0.00
0.00
2.98
Class R1
6.10
n/a
0.00
0.00
2.78
Class R2
6.10
n/a
0.00
0.00
2.68
Class R6
6.11
n/a
6.11
0.00
0.49
Growth of a Hypothetical $10,000 Investment at NAV
Class A shares: Based on total returns with reinvestment of distributions and does not reflect the effect of any sales charges, which would reduce performance shown. Performance for other share classes will differ based on differences in their sales charges and expense structures.
Performance data quoted represents past performance. Past performance is no guarantee of future results. Due to market volatility, current performance may be less or higher than the figures shown. Investment return and principal value will fluctuate so that upon redemption, shares may be worth more or less than their original cost.
Calpine Construction Finance Co., LP and CCFC Finance Corp., 8.00%, due 6/1/16
0.6
Quality Breakdown
Characteristics listed, as of 03/31/2013, are provided for informational purposes only and may change daily.
Quality Breakdown includes debt securities whose ratings may have changed since the time of purchase. Percentages are based on fixed-income securities held in the Fund's investment portfolio and exclude any equity or convertible securities and cash or cash equivalents. Ratings apply to the underlying portfolio of debt securities held by the Fund and are rated by an independent rating agency, such as Standard and Poor's, Moody's, and/or Fitch. If ratings are provided by the rating agencies, but differ, the lower rating will be utilized. If only one rating is provided, the available rating will be utilized. Securities that are unrated by the rating agencies are reflected as such in the breakdown. Unrated securities do not necessarily indicate low quality.
Management Team
J. Matthew Philo, CFA
Mr. Philo is a Senior Managing Director of MacKay Shields, is the head of the High Yield Division, has been co-head of Fixed Income since 2006 and has managed institutional accounts since he joined MacKay Shields in 1996. He is a CFA charterholder.
Andrew Susser
Mr. Susser is a Managing Director of MacKay Shields. Prior to joining MacKay Shields in 2006, Mr. Susser was a Portfolio Manager withGoldenTree Asset Management. He graduated with an MBA from the Wharton Graduate School of Business, a JD from the University ofPennsylvania Law School and a BA in Economics from Vassar College. Mr. Susser has been in the investment management industry since 1996.
Investment Advisor
New York Life Investment Management LLC is the Investment Advisor for all MainStay Funds and serving as manager, runs the Funds' day-to-day business.
Investment Subadvisor
The Investment Advisor has delegated its portfolio management responsibilities for this Fund to its Investment Subadvisor, MacKay Shields LLC. MacKay Shields has specialized in money management for over 30 years, serving institutional and corporate clients.
Fund Statistics (data as of quarter end)
Total Net Assets
8,720.23M
Standard Deviation (5-yr)
10.34
Beta (3-yr)
.75
R-Squared (3-yr)
.98
Sharpe Ratio (3-yr)
2.09
Effective Maturity
6.2 Yrs
Effective Duration
3.3 Years
Number of Holdings
543
Annual Turnover Rate (%)
29
Fund Expenses
Share Class
Total Annual Operating Expenses (Gross)
Net Annual Operating Expenses (Net)
Class A
1.00%
n/a
Class INV
1.03%
n/a
Class B
1.78%
n/a
Class C
1.78%
n/a
Class I
0.75%
n/a
Class R1
0.87%
n/a
Class R2
1.10%
n/a
Class R6
0.59%
n/a
Total and Net Annual Operating Expenses shown are from the most recent Fund prospectus fee table. Net annual operating expenses reflect contractual waivers and/or expense limitations. Total annual operating expenses are absent the waivers and/or limitations.
Account Minimums
Minimum Initial
Investment
Minimum Subsequent
Investment
Class A
$25,000
None
Class INV
$10003
$50
Class B
$10003
$50
Class C
$10003
$50
Class I
$5,000,000
None
Investment Process
Under normal circumstances, the MainStay High Yield Corporate Bond Fund invests at least 80% of its assets in high-yield debt securities, including all types of high-yield domestic and foreign corporate debt securities that are rated below investment grade by Moody's Investor Services or Standard & Poor's or that are unrated but the subadvisor considers to be of comparable quality.
The subadvisor seeks to identify investment opportunities through analyzing individual companies and evaluates each company's competitive position, financial condition, and business prospects, investing only in companies in which the subadvisor has judged that there is sufficient asset coverage—that is, the subadvisor's subjective appraisal of a company's value divided by the value of its debt.
Before You Invest
High-yield securities (commonly referred to as "junk bonds") are generally considered speculative because they present a greater risk of loss than higher-quality debt securities and may be subject to greater price volatility. Foreign securities can be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. These risks are likely to be greater for emerging markets than in developed markets. Floating rate loans are generally considered to have speculative characteristics that involve default risk of principal and interest, collateral impairment, borrower industry concentration, and limited liquidity. Issuers of convertible securities may not be as financially strong as those issuing securities with higher credit ratings and are more vulnerable to changes in the economy. Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner, or that negative perception of the issuer's ability to make such payments may cause the price of that bond to decline.
1. POP (Public Offering Price) is the NAV (Net Asset Value) plus a sales charge. All POPs are subject to revision and include the maximum sales charge.
3. $500 minimum for initial and $50 minimum for subsequent monthly purchases.
Fund statistics shown are for Class A only, other share classes may vary. The P/E Ratio (price-to-earnings) denotes the weighted average of all the P/Es of the securities in the fund's portfolio. The P/B Ratio (price-to-book) is the weighted average of all the P/Bs of the securities in the fund's portfolio. Return on Equity (ROE) is the weighted average of all the ROEs of the securities in the fund's portfolio. ROE is calculated by dividing net income by book value. Standard deviation measures how widely dispersed a fund's returns have been over a specified period of time. A high standard deviation indicates that the range is wide, implying greater potential for volatility. Beta is a measure of historical volatility relative to an appropriate index (benchmark) based on its investment objective. A beta greater than 1.00 indicates volatility greater than the benchmark's. Alpha measures a fund's risk-adjusted performance and is expressed as an annualized percentage. R-Squared measures the percentage of a fund's movements that result from movements in the index. The Sharpe Ratio shown is calculated for the past 36-month period by dividing annualized excess returns by annualized standard deviation. The Annual Turnover Rate is as of the most recent annual shareholder report. Upside/Downside Market Capture measures a manager's performance in up/down markets relative to the fund's benchmark. Effective Maturity is the average time to maturity of debt securities held in the portfolio taking into consideration the possibility that the issuer may call the bond before its maturity date. 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. Weighted Average Maturity is an average of the maturities of all securities held in the Fund's portfolio, weighted by each security's percentage of net assets. Weighted Average Life measures the maturity of the Fund's investments without regard to a security's interest rate reset dates. S&P rates borrowers on a scale from AAA to D. AAA through BBB represent investment grade, while BB through D represent non-investment grade.
Average annual total returns include the change in share price and reinvestment of dividends and capital gain distributions. Performance for Class A, C, I, and R2 shares, first offered 1/3/95, 9/1/98, 1/2/04, and 4/30/08, respectively, includes the historical performance of Class B shares from inception (5/1/86) through 12/31/94 for Class A, through 8/31/98 for Class C, through 12/31/03 for Class I, and through 4/29/08 for Class R2, adjusted to reflect the applicable sales charge (or CDSC) and fees and expenses for such shares. Performance for Investor Class shares, first offered 2/28/08, includes the historical performance of Class A shares from Fund inception (5/1/86) through 2/27/08 adjusted to reflect the applicable fees and expenses for such shares. Class I shares are generally available only to corporate and institutional investors. Class R2 shares are available only through corporate-sponsored retirement programs, which include certain minimum program requirements.
View the Prospectus
This mutual fund may be offered and sold only to persons in the United States. For more information about MainStay Funds®, call 800-MAINSTAY (624-6782) for a prospectus or summary prospectus. Investors are asked to consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus or summary prospectuscontains this and other information about the investment company. Please read the prospectus or summary prospectus carefully before investing.
The MainStay Funds® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC. FINRA BrokerCheck Program: An investor brochure that includes information describing FINRA BrokerCheck may be obtained from FINRA. The FINRA BrokerCheck Hotline Number is 800-289-9999.
These products are not federally insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, or similar agency.
MainStay Investments® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services.
The MainStay Funds® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC. FINRA BrokerCheck Program: An investor brochure that includes information describing FINRA BrokerCheck may be obtained from FINRA. The FINRA BrokerCheck Hotline Number is 800-289-9999.
For more information about MainStay Funds®, call 800-MAINSTAY (624-6782) for a prospectus or summary prospectus. Investors are asked to consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus or summary prospectus contains this and other information about the investment company. Please read the prospectus or summary prospectus carefully before investing.
