MainStay Tax Advantaged Short Term Bond Fund

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 MacKay Shields

MacKay ShieldsMacKay Shields LLC is an affiliate of New York Life Investment Management LLC. MacKay Shields has specialized in money management for over 70 years. They offer a broad range of fixed income related strategies and solutions for a wide array of global clients including pension funds, government and financial institutions, family offices, high net worth individuals, endowments and foundations, and retail clients.

Portfolio Managers

  • Claude Athaide, PhD, CFA
  • Fund's Manager:
    Since 2000

    Industry Experience:
    21 years

  • Dan Roberts, PhD
  • Fund's Manager:
    Since 2011

    Industry Experience:
    38 years

  • Louis Cohen, CFA
  • Fund's Manager:
    Since 2011

    Industry Experience:
    39 years

  • John Loffredo, CFA
  • Fund's Manager:
    Since 2015

    Industry Experience:
    30 years

  • Robert DiMella, CFA
  • Fund's Manager:
    Since 2015

    Industry Experience:
    28 years

  • Michael Petty
  • Fund's Manager:
    Since 2015

    Industry Experience:
    31 years

  • David Dowden
  • Fund's Manager:
    Since 2015

    Industry Experience:
    28 years

  • Scott Sprauer
  • Fund's Manager:
    Since 2015

    Industry Experience:
    25 years

  • Frances Lewis
  • Fund's Manager:
    Since 2015

    Industry Experience:
    26 years

  • Summary
  • Performance
  • Portfolio
  • Distributions
    & Yields
  • Fees &
    Expenses

Fund Objective: Seeks after tax total return.

  • Short duration, high quality
    The Fund seeks after-tax total returns by primarily investing in high-quality municipal securities and U.S. government and corporate bonds.

  • Unique crossover strategy
    Managers may adjust allocations across tax-exempt (minimum 50%) and taxable securities to seek investment opportunities across a broader array of fixed income securities.

  • Dynamic, active managers
    Subadvised by two teams within MacKay Shields, MacKay Municipal ManagersTM and the Global Fixed Income Team.

Class A & INV: 1% maximum initial sales charge; a 1% CDSC may be imposed on certain redemptions made within 24 months of the date of purchase on shares that were purchased without an initial sales charge. Class I: No initial sales charge or CDSC. Total annual operating expenses are: Class A: 0.93%, INV: 1.33%, I: 0.68%.

Returns represent past performance which is no guarantee of future results. Current performance may be lower or higher. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Performance figures reflect a contractual fee waiver and/or expense limitation agreement in effect through 8/29/18, without which total returns may have been lower. This agreement shall renew automatically for one-year terms unless written notice is provided prior to the start of the next term or upon approval of the Board.

Style Box
Before You Invest

The Fund is not a money market fund and does not attempt to maintain a stable net asset value. The Fund’s net asset value per share will fluctuate. There can be no guarantee that the Fund will achieve or maintain any particular level of yield. The Fund may invest in derivatives, which may increase the volatility of the Fund’s net asset value and may result in a loss to the Fund. 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. The principal risk of mortgage dollar rolls is that the security the Fund receives at the end of the transaction may be worth less than the security the Fund sold to the same counterparty at the beginning of the transaction. The principal risk of mortgage-related and asset-backed securities is that underlying debt may be prepaid ahead of schedule, if interest rates fall, thereby reducing the value of the Fund’s investment. If interest rates rise, less of the debt may be prepaid and the Fund may lose money. 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.

Disclosure

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.

2. Average annual total returns include the change in share price and reinvestment of dividends and capital gain distributions. Performance for Class A shares includes the historical performance of Class I shares from inception (1/2/91) through 12/31/03 adjusted to reflect the applicable sales charge and fees and expenses. Performance for Investor Class shares includes the historical performance of Class A shares from inception through 2/27/08 adjusted to reflect the applicable fees and expenses. Class I shares are generally available only to corporate and institutional investors.

4. No sales charge applies to Class A and Investor Class share investments of $1,000,000 or more ($250,000 or more with respect to MainStay California Tax Free Opportunities Fund, MainStay High Yield Municipal Bond Fund, MainStay New York Tax Free Opportunities Fund, MainStay Tax Advantaged Short Term Bond Fund, and MainStay Tax Free Bond Fund; or $500,000 or more with respect to MainStay Floating Rate Fund and MainStay Short Duration High Yield Fund). Effective January 1, 2017, a CDSC of 1% may be imposed on certain redemptions of such shares within 24 months of the date of purchase.

5. 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 higher 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. 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.

Investment Definitions

The Barclays U.S. 1-3 Year Government/Credit Index is an unmanaged index that includes investment-grade corporate-debt issues as well as debt issues of U.S. government agencies and the U.S. Treasury, with maturities of one to three years. Index results assume the reinvestment of all capital gain and dividend distributions. An investment cannot be made directly into an index.

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.