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Perspective from our Leaders and Experts  

1. MacKay Shields LLC, as of December 2016.

Municipal bond risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes which could affect the market for and value of municipal securities.

Commodities are investments in instruments and companies that are susceptible to fluctuations in certain commodity markets. Any negative changes in commodity markets (that may be due to changes in supply and demand for commodities, market S-4 events, regulatory developments or other factors) could have an adverse impact on those companies.

Floating rate funds are generally considered to have speculative characteristics that involve default risk of principal and interest, collateral impairment, non-diversification, borrower industry concentration, and limited liquidity. The Funds may invest in foreign securities. U.S. dollar- denominated securities of foreign issuers can be subject to different risks than U.S. investments, including less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in U.S. or foreign tax or currency laws and monetary policy.

Alternative investments are speculative, not suitable for all clients, and intended for experienced and sophisticated investors who are willing to bear the high economic risks of the investment.

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.

High-yield securities (junk bonds) have speculative characteristics and present a greater risk of loss than higher quality debt securities. 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 which is the possibility that the bond issuer may fail to pay interest and principal in a timely manner.

Active share is a method of determining the extent of active management employed by an investment manager and a significant tool for helping investors find those active managers that do outperform their benchmarks. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Credit spread is the difference in yield between a U.S. Treasury bond and a debt security with the same maturity but of lesser quality. Fed Funds Rate is the rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight. Intercontinental Exchange London Interbank Offered Rate (LIBOR) is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. It serves as the first step to calculating interest rates on various loans throughout the world. Smart beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization based indices. Sovereign debt is a central government's debt. It is issued by the national government in a foreign currency in order to finance the issuing country's growth and development. Valuation is the process of determining the current worth of an asset or a company. Yield curve is a line that plots the interest rates, at a set point in time,of bonds having equal credit quality, but differing maturity dates.

The information and opinions contained herein are for general information use only. MainStay Investments does not guarantee their accuracy or completeness, nor does MainStay Investments assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, and are not intended as an offer or solicitation with respect to the purchase or sales of any security or as personalized investment advice. There can be no guarantee that any projection, forecast, or opinion in these materials will be realized. Past performance is no guarantee of future results. All investments are subject to market risk and will fluctuate in value.

New York Life Investments engages the services of federally registered advisors to subadvise the Funds. MacKay Shields LLC is an affiliate of New York Life Investments. Cushing® Asset Management, LP, Epoch Investment Partners, Inc., and Winslow Capital Management, LLC are unaffiliated. Cornerstone Capital Management LLC is an affiliate of Cornerstone Capital Management Holdings LLC, a wholly owned subsidiary of New York Life Investment Management Holdings LLC. Fixed Income Investors is a multi-product fixed-income investment manager and a division of New York Life Investments. IndexIQ® is an indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC.

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. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs and the principal underwriter of IQ Hedge Multi-Strategy Plus Fund. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.