MainStay Investments NYLIM-24809 461946 MS31cc-05/12
MainStay Investments MainStay Investments, an indirect subsidiary of New York Life Insurance Company, offers investment advisory products and services and is a registered service mark and name under which New York Life Investment Management LLC, 1 a leading institutional money manager ranked among the top 35 managers in the world, 2 does business. A full service retail investment and distribution platform serving financial professionals and their clients. A Barron s Top 3 Fund Family over the 10-year period ended December 31, 2011, out of 45 Fund Families. 3 MainStay Investments was cited as the # 3 Value Add Program Provider Across the Industry. 4 Well positioned for today s marketplace. 1 New York Life Investment Management LLC (NYLIM) is an indirect subsidiary of New York Life Insurance Company, New York, NY 10010. 2 Source: NYLIM ranked 31 st among the world s largest money managers within Pensions & Investments, May 30, 2011. Rankings are based on total worldwide institutional assets under management, for the year-end 2010. 3 For full Barron s disclosure, please see slide 6. Past performance is no guarantee of future results. 4 MainStay Investments was singled out as one of the highest rated value add programs by more than 3,000 financial advisors. from independent broker/dealers to traditional wirehouses to insurance companies and banks regarding advisor investing behaviors. Source: Kasina and Horsesmouth, Research 2010. 2
The MainStay Advantage MainStay Investments delivers the investment products and expertise you ve come to expect through: Multi-Boutique Management We offer access to leading institutional managers that drive performance. Our multiboutique approach simply focuses our investment talent on what we do best. Proven Wealth-Building Tools We provide actionable and effective solutions to help invest and plan for all life stages. They are differentiating tools that can be implemented immediately. Our Commitment to You We proudly stand on a track record of accountability, integrity, and commitment a powerful combination in today s marketplace. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. 3
Multi-Boutique Management MainStay Investments offers a powerful mix of investment products, including mutual funds and managed accounts, powered by a multi-boutique investment management model. The benefits of a multi-boutique model: We believe organizing around autonomous investment boutiques is a key to generating solid returns. Each boutique preserves the integrity of its own investment process and culture. The boutiques offer disciplined investment approach and long-term performance strategies. Fixed Income Investors Markston International LLC New York Life Investments engages the services of federally registered advisers to subadvise the funds, four of which, MacKay Shields LLC, Institutional Capital LLC, Private Advisors LLC, and Madison Square Investors LLC are affiliates of New York Life Investments. Unaffiliated advisors are Winslow Capital Management, Inc., Markston International, LLC, and Epoch Investment Partners, Inc.. The Fixed Income Investors Group is a multi-product fixed income investment manager of New York Life Investments. 4
World Class Portfolio Managers Experienced Portfolio Managers Recognized as Experts in the Industry Jerry Senser, ICAP Bill Priest, Epoch Investment Partners Matt Philo, MacKay Shields Edward Silverstein, MacKay Shields 5
Barron s Annual Fund Family Ranking for 2011 The Best Mutual Fund Families (Barron s, February 6, 2012) MainStay Funds Ranked as a Top 10 Fund Family Over the 1-, 5-, and 10-Year Periods Over the 1-Year Period 1. Delaware Funds 2. Vanguard 3. Neuberger Berman 4. First Investors 5. State Farm 6. State Street Bank & Trust 7. MainStay Funds 8. Charles Schwab 9. American Century 10. MFS Investment Management Over the 5-Year Period 1. Ivy Investment Management 2. Waddell & Reed 3. MFS Investment Management 4. JP Morgan 5. Delaware Funds 6. PIMCO/Allianz 7. RidgeWorth Funds 8. MainStay Funds 9. Franklin Templeton 10. Wells Fargo Over the 10-Year Period 1. Franklin Templeton 2. Delaware Funds 3. MainStay Funds 4. State Farm 5. Ivy Investment Management 6. PIMCO/Allianz 7. MFS Investment Management 8. American Funds 9. JP Morgan 10. T Rowe Price About the Barron s Ranking: To qualify for the Lipper/Barron s Fund Survey, a fund family must have at least three funds in Lipper s general U.S.-stock category, one in world equity (which combines global and international funds), one mixed-equity fund (which holds stocks and bonds), at least two taxable-bond funds, and one tax-exempt offering. Each fund's returns are adjusted for 12b-1 fees. Fund loads, or sales charges, aren't included in the calculation of returns, either. Each fund's return is measured against those of all funds in its Lipper category, such as, say, small-cap value. That leads to a percentile ranking, with 100 the highest and 1 the lowest, which is then weighted by asset size, relative to the fund family's other assets in its general classification, world equity, for instance. If a family's biggest funds do well, that boosts its overall ranking. Poor performance in a big fund would have the opposite effect. Finally, the score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. The category weightings for the one-year results: general equity, 38.04%; world equity, 12.77%; mixed equity, 17.36%; taxable bonds, 27.43%; tax-exempt bonds, 4.40%. The category weightings for the five-year results: general equity, 40.12%; world equity, 12.32%; mixed equity, 17.30%; taxable bonds, 25.56% and tax-exempt bonds, 4.70%. The category weightings for the 10-year results: general equity, 41.89%; world equity, 12.30%; mixed equity, 14.44%; taxable bonds, 25.99% and tax-exempt bonds, 5.38%. The scoring: Say a company has a fund in the general U.S. equity category with $50 million in assets that accounts for half of the company's assets in that category. Its ranking is the 75th percentile. The first calculation would be 75 x 0.50, which comes to 37.5. That score is then multiplied by 38.04%, general equity's overall weighting in Lipper's universe. So it would be 37.5 x 0.3804, which totals 14.265. Similar calculations are done for each fund in the study. Then, all the numbers are added up for a total score. The fund family with the highest score wins, both for every category and overall. The same process is repeated for the five- and 10-year rankings based on their weightings. Ranking data is from Lipper. Source: Barron s, 2/6/12. Overall, MainStay Funds ranked seven for the one-year period, eight for the five-year period, and three for the 10-year period ended December 31, 2011, out of 58, 53, and 45 fund families, respectively. Past performance is no guarantee of future results. All mutual funds are subject to market risk and will fluctuate in value. 6
MainStay Funds Sound products managed within our multi-boutique investments structure, providing potential solutions for each phase of the market cycle. Morningstar Percentile Rank (%) as of March 31, 2012 Fund Name 1 Year 3 Years 5 Years 10 Years Equity Funds MainStay ICAP Select Equity Fund (I) 47 37 16 3 MainStay MAP Fund (I) 64 39 38 5 International Funds MainStay Epoch Global Equity Yield Fund (I) 9 58 24 - MainStay ICAP International Fund (I) 17 37 14 14 Income Funds MainStay Floating Rate Fund (A) 46 80 24 - MainStay High Yield Corporate Bond Fund (A) 10 74 58 8 MainStay High Yield Opportunities Fund (A) 82 31 - - Blended Funds MainStay Convertible Fund (A) 71 37 9 34 Source: Morningstar 3/31/12. Morningstar Percentile Rank in Category is the fund s total-return percentile rank for the specified time period relative to all funds that have the same Morningstar category. Results are based on total returns with capital gain and dividend distribution reinvested and do not reflect any deduction of sales charges. The highest (or most favorable) percentile rank is 1 and the lowest or least favorable percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds. Past performance is no guarantee of future results. Class I shares are generally only available to institutional and corporate investors. See slide 9 for information about these percentile rankings. Top Half 7
MainStay Funds Strength Across the Box Morningstar Overall Star Ratings As of March 31, 2012 U.S. Equity MainStay ICAP Select Equity Fund (A) MainStay MAP Fund (A) MainStay ICAP Equity Fund (A) MainStay Large Cap Growth Fund (A)* (LW) (LW) (LW) Out of 1,459 Large Growth Funds Out of 1,098 Large Value Funds Out of 1,578 Large Blend Funds Out of 1,098 Large Value Funds Markston International LLC International MainStay ICAP International Fund (A) MainStay International Equity Fund (A) MainStay Epoch Global Equity Yield Fund (A) MainStay Epoch International Small Cap Fund (A) (LW) Out of 320 Foreign Large Value Funds (LW) Out of 726 Foreign Large Blend Funds Out of 710 World Stock Funds (LW) Out of 125 Foreign Small/Mid Growth Funds Income MainStay High Yield Opportunities Fund (A) MainStay Floating Rate Fund (A) MainStay High Yield Corp Bond Fund (A) MainStay Convertible Fund (A) Out of 500 High Yield Bond Funds (LW) (LW) Out of 64 Convertible Funds Out of 125 Bank Loan Funds Out of 500 High Yield Bonds Funds (LW) = Load Waived A Shares * MainStay Large Cap Growth Fund closed to new investors in non-discretionary accounts effective at the close of business on January 13, 2012. Past performance is no guarantee of future results. At least one of the Funds shown has experienced recent negative performance. For performance information current to the most recent monthend, please visit our web site at mainstayinvestments.com. Ratings based on risk adjusted returns for each Morningstar category. Class I shares are generally only available to institutional and corporate investors. See slide 5 for information about these ratings. 8
About Morningstar Ratings and Percentile Ranks in Category Morningstar Rating For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the next 10% receive one star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. Funds with less than three years of performance history are not rated. The Morningstar Rating for load-waived A shares better reflect the investor experience for those individuals who do not pay the fund s front-end sales load, such as retirement-plan participants. Load-waived A shares are displayed and treated like a separate share class. To be eligible for load-waived ratings and returns, the fund must be an A share class, must have a front load, and must be domiciled in the United States. Morningstar Percentile Rank in Category Morningstar is an independent fund performance monitor. Results are based on total returns with capital gain and dividend distribution reinvested and do not reflect any deduction of sales charges. The highest (or most favorable) percentile rank is 1 and the lowest or least favorable percentile rank is 100. The topperforming fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds. For the period ended March 31, 2012. MainStay ICAP Select Equity Fund Class A shares rated three (four LW) stars overall and two (three LW) stars and four stars for the three- and five-year periods from among 1,098 and 973 Large Value funds, respectively. Morningstar percentile ranks for the one-, three-, and five-year periods are from among 1,244, 1,098, and 973 Large Value funds, respectively. MainStay Large Cap Growth Fund Class A and LW shares rated four overall and three stars, four (five LW) stars, and four stars for the three-, five-, and 10-year periods from among 1,459, 1,266, and 816 Large Growth funds, respectively. MainStay MAP Fund Class A and LW shares rated three (four LW) stars overall and two (three LW) stars, two (three LW) stars, and four (five LW) stars for the three-, five-, and 10-year periods from among 1,578, 1,387, and 843 Large Blend funds, respectively. Morningstar percentile ranks for the one-, three-, five-, and 10-year periods are from among 1,778, 1,578, 1,387, and 816 Large Blend funds, respectively. MainStay ICAP Equity Fund Class A and LW shares rated three (four LW) stars overall and two (three LW) stars and three (four LW) stars for the three- and five-year periods from among 1,098 and 973 Large Value funds, respectively. MainStay ICAP International Fund Class A and LW shares rated three (four LW) stars overall and two (three LW) stars, and four stars for the three- and five year periods from among 320 and 264 Foreign Large Value funds, respectively. Morningstar percentile ranks for the one-, three-, and five-year periods are from among 369, 320, and 264 Foreign Large Value funds, respectively. MainStay International Equity Fund Class A and LW shares rated three (four LW) stars overall and one star, four stars, and four (five LW) stars for the three-, fiveand 10-year periods from among 726, 552 and 316 Foreign Large Blend funds, respectively. MainStay Epoch Global Equity Yield Fund Class A and LW shares rated four stars overall and three stars and four stars for the three- and five-year periods from among 710 and 504 World Stock funds. Morningstar percentile ranks for the one-, three-, and five-year periods are from among 911, 710, and 504 World Stock funds, respectively. MainStay Epoch International Small Cap Fund Class A and LW shares rated two (three LW) stars overall and two stars and two (three LW) stars for the three- and five-year periods from among 125 and 106 Foreign Small/Mid Growth funds. MainStay High Yield Opportunities Fund Class A and LW shares rated three stars overall and three stars for the three-year period from among 500 High Yield Bond funds. Morningstar percentile ranks for the one- and three-year periods are from among 578 and 500 High Yield Bond funds, respectively. MainStay Floating Rate Fund Class A and LW shares rated two (three LW) stars overall and one (two LW) stars and three (four LW) stars for the three- and five-year periods from among 125 and 90 Bank Loan funds, respectively. Morningstar percentile ranks for the one-, three-, and fiveyear periods are from among 157, 125 and 90 Bank Loan funds, respectively. MainStay High Yield Corporate Bond Fund Class A and LW shares rated three (four LW) stars overall and two (three LW) stars, two (three LW) stars, and four (five LW) stars for the three-, five- and 10-year periods from among 500, 438, and 301 High Yield Bond funds, respectively. Morningstar percentile ranks for the one-, three-, five-, and 10-year periods are from among 578, 500, 438, and 301 High Yield Bond funds, respectively. MainStay Convertible Fund Class A and LW shares rated three stars overall, three stars, three (four LW) stars, and three stars for the three-, five- and 10-year periods from among 64, 47, and 39 Convertible funds, respectively. Morningstar percentile ranks for the one-, three-, five and 10-year periods are from among 74, 64, 47, and 39 Convertible funds, respectively. 9
Leading with Thought Leadership Investment Insights Wealth Matters Program MainStay Wealth Matters Ranked #4 in industry by kasina FA Vision (April 2012) 10
Proven Wealth-Building Tools Our Wealth Matters value add program complements on-going sales initiatives and can help financial professionals: Enhance Current Sales Skills Generate Quality Referrals Increase Awareness of Retirement Income Issues Uncover Rollover Opportunities Initiate Client Contact Identify Additional Assets Develop Retirement Income Strategies 11
Integrity for the Long Term New York Life Investments is proud to be associated with New York Life Insurance Company, one of America s oldest and most respected insurance and financial institutions. New York Life Insurance Company has received the highest possible credit ratings for financial strength currently awarded to any U.S. insurer from four major ratings agencies.* New York Life Insurance Company has been in business for over 167 years and has a history of prudent decisions based on core values of financial strength, integrity, and humanity. The financial strength of New York Life Insurance Company does not apply to any investment products because they are subject to market risks and will fluctuate in value. *Source: Individual third party ratings reports (as of 8/8/2011); Moody s: Aaa, A.M. Best: A++, Standard & Poor s: AA+, Fitch: AAA. New York Life Investments is a subsidiary of New York Life Insurance Company (NYLIC). MainStay is a registered trademark of New York Life Investments. MainStay Investments is a registered service mark and name under which New York Life Investments does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. New York Life Investments serves as the investment manager of the MainStay Funds. MainStay Funds are separate legal entities and not subsidiaries of either NYLIC or New York Life Investments. New York Life Investments is a service mark of New York Life Investment Management LLC. 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. 12
MainStay Investments Well Positioned for Today s Marketplace Multi-boutique model to deliver investment management expertise. Broad and competitive product line. Proven wealth building tools. Dynamic sales and distribution organization to support and help grow your business. Strong and committed parent company. 13
MainStay Funds Standardized Performance Average Annual Total Returns for the Period Ended March 31, 2012 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. For performance information current to the most recent month-end, please visit our web site at mainstayinvestments.com. Class I shares may be purchased by existing Class I shareholders, including individuals investing at least $5 million in a Fund, and institutional investors. In this instance, the term institutional investors includes, but is not limited to: individuals purchasing through certain wrap-fee or other programs sponsored by a financial intermediary firm with a contractual arrangement with NYLIFE Distributors LLC, individuals purchasing through certain registered investment advisory firms, and certain group retirement or employee benefit plans having a service arrangement with NYL Retirement Plan Services (a division of New York Life Investment Management LLC), NYLIFE Distributors LLC, or their affiliates. Net expense ratio performance figures reflect fee waiver and/or expense limitation agreements, without which total returns may have been lower. 14
About Risk The Funds may invest in derivatives, which may increase the volatility of the Funds net asset value and may result in a loss to the Funds. The Funds may experience a portfolio turnover rate of over 100% and may generate short-term capital gains which are taxable. Mid-capitalization companies are generally less established and their stocks may be more volatile and less liquid than the securities of larger companies. Stocks of small companies may be subject to higher price volatility, significantly lower trading volumes, and greater spreads between bid and ask prices, than stocks of larger companies. Small companies may be more vulnerable to adverse business or market developments than mid-or large-capitalization companies. Growth stocks may be more volatile than other stocks because they are generally more sensitive to investor perceptions and market moves. During periods of growth stock underperformance, the Fund s performance may suffer. The principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value. The Funds may invest in convertible securities. Issues 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. If an issuer stops making interest and/or principal payments, these securities may be worthless and the Funds could lose their entire investment. Floating rate funds are generally considered to have speculative characteristics that involve default risk of principal and interest, collateral impairment, nondiversification, borrower industry concentration, and limited liquidity. High-yield securities ( 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 in emerging markets than in developed markets. Funds that invest in bonds are subject to credit, inflation, and interest rate risk and can lose principal when interest rates rise. The principal risk of mortgage dollar rolls is that the security the Funds receive at the end of the transaction may be worth less than the security the Funds sold to the same counter party 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 Funds investment. If interest rates rise, less of the debt may be prepaid and the Funds may lose money. MainStay High Yield Opportunities Fund: Short sales involve costs and risk. If a security sold short increases in price, the Fund may have to cover its short position at a higher price than the short sale price, resulting in a loss. Because the Fund s loss on a short sale arises from increases in the value of the security sold short, such loss is theoretically unlimited. When borrowing a security for delivery to a buyer, the Fund also may be required to pay a premium and other transaction costs, which would increase the cost of the security sold short. By investing the proceeds received from selling securities short, the Fund is employing a form of leverage, which creates special risks. The use of leverage may increase the Fund s exposure to long equity positions and make any change in the Fund s NAV greater than it would be without the use of leverage. This could result in increased volatility of returns. 15
For More Information To learn more about MainStay Funds, call 800-MAINSTAY (624-6782) for a prospectus or summary prospectus. Please ask your clients to consider the investment objectives, risks, and charges and expenses of these investments carefully before investing. The prospectus or summary prospectus contains this and other information about the Funds and can be obtained by contacting you, the financial professional. Instruct your clients to read the prospectus or summary prospectus carefully before investing. mainstayinvestments.com 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, an indirect subsidiary of New York Life Insurance Company, 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. Not FDIC/NCUA Insured. Not a Deposit. May Lose Value. No Bank Guarantee. Not Insured by Any Government Agency. 16 16