The table below describes the fees and expenses that you may pay
if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family
invest, or agree to invest in the future, at least $50,000 in the MainStay Funds. This amount may vary
depending on the MainStay Fund in which you invest. More information about these and other discounts
is available from your financial professional and in the "Information on Sales Charges" section starting
on page 104 of the Prospectus and in the "Alternative Sales Arrangements" section on page 103 of the
Statement of Additional Information.
The Example is intended to
help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem
all of your shares at the end of those periods (except as indicated with respect to Class B and Class
C shares). The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees
could be lower if you are eligible to convert to Class A shares instead. The Example also assumes that
your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your costs would be:
The
Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over"
its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher
taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual
fund operating expenses or in the Example, affect the Fund's performance. During the most recent fiscal
year, the Fund's portfolio turnover rate was 61% of the average value of its portfolio.
Principal
Investment Strategies
The Fund, under normal circumstances, invests at least 80% of its
assets (net assets plus any borrowings for investment purposes) in "convertible securities" such as bonds,
debentures, corporate notes, and preferred stocks or other securities that are convertible into common
stock or the cash value of a stock or a basket or index of equity securities. The balance of the Fund
may be invested or held in non-convertible debt, equity securities that do not pay regular dividends,
U.S. government securities, and cash or cash equivalents.
Investment
Process:
The Fund takes a flexible approach by investing in a broad range of securities of a variety
of companies and industries. The Fund invests in investment grade and below investment grade debt securities.
Below investment grade securities are generally securities that receive low ratings from an independent
rating agency, such as rated lower than BBB- by Standard & Poor's ("S&P") and Baa3 by Moody's
Investors Service, Inc. ("Moody's"), or if unrated, are determined to be of equivalent quality by MacKay
Shields LLC, the Fund's Subadvisor. Some securities that are rated below investment grade by independent
rating agencies are commonly referred to as "junk bonds." The Subadvisor may also invest without restriction
in securities with lower ratings from an independent rating agency, such as within the rating category
of BB or B by S&P or Ba or B by Moody's. If independent rating agencies assign different ratings
to the same security, the Fund will use the lower rating for purposes of determining the security's credit
quality.
In selecting convertible securities for purchase or sale, the Subadvisor takes into
account a variety of investment considerations, including the potential return of the common stock into
which the convertible security is convertible, credit risk, projected interest return, and the premium
for the convertible security relative to the underlying common stock.
The Fund may also invest in
"synthetic" convertible securities, which are derivative positions composed of two or more securities
whose investment characteristics, taken together, resemble those of traditional convertible securities.
Unlike traditional convertible securities whose conversion values are based on the common stock of the
issuer of the convertible security, "synthetic" and "exchangeable" convertible securities are preferred
stocks or debt obligations of an issuer which are structured with an embedded equity component whose
conversion value is based on the value of the common stocks of one or more different issuers or a particular
benchmark (which may include indices, baskets of domestic stocks, commodities, a foreign issuer or basket
of foreign stocks, or a company whose stock is not yet publicly traded). The value of a synthetic convertible
is the sum of the values of its preferred stock or debt obligation component and its convertible component.
The
Fund may invest in foreign securities, which are securities issued by companies organized outside the
U.S. and traded primarily in markets outside the U.S.
The Subadvisor may sell a security if it no longer
believes the security will contribute to meeting the investment objective of the Fund. In considering
whether to sell a security, the Subadvisor may evaluate, among other things, the condition of the economy,
meaningful changes in the issuer's financial condition, changes in credit risk, and changes in projected
interest return.
Loss
of Money Risk:
Before considering an investment in the Fund, you should understand that you could
lose money.
Market Changes Risk:
The
value of the Fund's investments may change because of broad changes in the markets in which the Fund
invests, which could cause the Fund to underperform other funds with similar objectives. From time to
time, markets may experience periods of acute stress that may result in increased volatility. Such market
conditions tend to add significantly to the risk of short-term volatility in the net asset value of the
Fund's shares.
Management Risk:
The investment
strategies, practices and risk analysis used by the Subadvisor may not produce the desired results.
Convertible Securities Risk:
Convertible securities
may be subordinate to other securities. In part, the total return for a convertible security depends
upon the performance of the underlying stock into which it can be converted. Also, issuers of convertible
securities are often not as strong financially as those issuing securities with higher credit ratings,
are more likely to encounter financial difficulties and typically are more vulnerable to changes in the
economy, such as a recession or a sustained period of rising interest rates, which could affect their
ability to make interest and principal payments. If an issuer stops making interest and/or principal
payments, the Fund could lose its entire investment.
Synthetic
Convertible Securities Risk:
The values of a synthetic convertible and a true convertible security
may respond differently to market fluctuations. In addition, in purchasing a synthetic convertible security,
the Fund may have counterparty (including counterparty credit) risk with respect to the financial institution
or investment bank that offers the instrument.
Debt
Securities Risk:
The risks of investing in debt securities include (without limitation): (i) credit
risk, i.e., the issuer may not repay the loan created by the issuance of that debt security; (ii) maturity
risk, i.e., a debt security with a longer maturity may fluctuate in value more than one with a shorter
maturity; (iii) market risk, i.e., low demand for debt securities may negatively impact their price;
(iv) interest rate risk, i.e., when interest rates go up, the value of a debt security goes down, and
when interest rates go down, the value of a debt security goes up; (v) selection risk, i.e., the securities
selected by the Subadvisor may underperform the market or other securities selected by other funds; and
(vi) call risk, i.e., during a period of falling interest rates, the issuer may redeem a security by
repaying it early, which may reduce the Fund’s income if the proceeds are reinvested at lower interest
rates.
Interest rates in the United States are at, or near, historic lows, which may increase
the Fund’s exposure to risks associated with rising rates. Moreover, rising interest rates may lead
to decreased liquidity in the bond markets, making it more difficult for the Fund to sell its bond holdings
at a time when the Subadvisor might wish to sell. Decreased market liquidity also may make it more difficult
to value some or all of the Fund’s bond holdings.
Additional risks associated with an investment
in the Fund include the following: (i) not all U.S. government securities are insured or guaranteed by
the U.S. government—some are backed only by the issuing agency, which must rely on its own resources
to repay the debt; and (ii) the Fund's yield will fluctuate with changes in short-term interest rates.
High-Yield Securities Risk:
Investments in high-yield
securities or non-investment grade securities (commonly referred to as "junk bonds") are sometimes considered
speculative because they present a greater risk of loss than higher quality securities. Such securities
may, under certain circumstances, be less liquid than higher rated securities. These securities pay investors
a premium (a high interest rate or yield) because of the increased risk of loss. These
2
securities
can also be subject to greater price volatility. In times of unusual or adverse market, economic or political
conditions, these securities may experience higher than normal default rates.
Equity Securities Risk:
Investments in common stocks and other equity securities
are particularly subject to the risk of changing economic, stock market, industry and company conditions
and the risks inherent in the portfolio managers' ability to anticipate such changes that can adversely
affect the value of the Fund's holdings. Opportunity for greater gain often comes with greater risk of
loss.
Foreign Securities Risk:
Investments in foreign
securities may be riskier than investments in U.S. securities. Differences between U.S. and foreign regulatory
regimes and securities markets, including less stringent investor protections and disclosure standards
of some foreign markets, less liquid trading markets and political and economic developments in foreign
countries, may affect the value of the Fund's investments in foreign securities. Foreign securities may
also subject the Fund's investments to changes in currency rates. These risks may be greater with respect
to securities of companies that conduct their business activities in emerging markets or whose securities
are traded principally in emerging markets.
The following bar chart and tables indicate some
of the risks of investing in the Fund. The bar chart shows you how the Fund's calendar year performance
has varied over the last ten years. Sales loads are not reflected in the bar chart. If they were, returns
would be less than those shown.The average annual total returns table shows how the Fund's average annual
total returns (before and after taxes) for the one-, five- and ten-year periods compare to those of a
broad-based securities market index. The Fund has selected the Bank of America Merrill Lynch All U.S.
Convertible Index
as its primary benchmark. The Bank of America Merrill Lynch All U.S. Convertible Index is a market-capitalization
weighted index of domestic corporate convertible securities. In order to be included in the Index, bonds
and preferred stocks must be convertible only to common stock.
Performance data for the classes
varies based on differences in their fee and expense structures. Performance figures for Investor Class
shares, first offered on February 28, 2008, include the historical performance of Class A shares through
February 27, 2008. Performance figures for Class I shares, first offered on November 28, 2008, include
historical performance of Class B shares through November 27, 2008. Performance for newer share classes
is adjusted for differences in fees and expenses. Unadjusted, the performance shown for the newer classes
would likely have been different. Past performance (before and after taxes) is not necessarily an indication
of how the Fund will perform in the future. Please visit mainstayinvestments.com for more recent performance
information.
Annual Returns, Class B Shares
(by calendar year 2003-2012)
|
|
|
|
|
Best Quarter
|
|
|
3Q/09
|
14.57
|
%
|
|
Worst
Quarter
|
|
|
4Q/08
|
-17.45
|
%
|
Average Annual Total Returns
(for the periods ended December 31, 2012)
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Year
|
5
Years
|
10
Years
|
|
|
Return Before Taxes
|
|
|
|
|
|
|
|
|
|
Investor Class
|
|
3.04
|
%
|
1.56
|
%
|
6.54
|
%
|
|
|
Class A
|
|
3.28
|
%
|
1.77
|
%
|
6.64
|
%
|
|
|
Class B
|
|
3.17
|
%
|
1.61
|
%
|
6.35
|
%
|
|
|
Class C
|
|
7.17
|
%
|
1.96
|
%
|
6.34
|
%
|
|
|
Class I
|
|
9.55
|
%
|
3.16
|
%
|
7.51
|
%
|
|
|
Return
After Taxes on Distributions
|
|
|
|
|
|
|
|
|
|
Class B
|
|
2.06
|
%
|
0.88
|
%
|
5.78
|
%
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares
|
|
|
|
|
|
|
|
|
|
Class B
|
|
3.01
|
%
|
1.11
|
%
|
5.41
|
%
|
|
|
Bank of America Merrill Lynch
All U.S. Convertible Index (reflects no deductions for fees, expenses, or taxes)
|
14.96
|
%
|
4.06
|
%
|
7.31
|
%
|
|
After-tax
returns are calculated using the highest individual federal marginal income tax rates in effect at the
time of each distribution or capital gain or upon the sale of fund shares, and do not reflect the impact
of state and local taxes. In some cases, the return after taxes may exceed the return before taxes due
to an assumed tax benefit from any losses on a sale of shares at the end of the measurement period. Actual
after-tax returns depend on your tax situation and may differ from those shown. After-tax returns are
not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns shown are for Class B shares. After-tax returns for the other
share classes may vary.
3
New York Life Investment Management LLC serves as the Fund's Manager.
MacKay Shields LLC serves as the Fund's Subadvisor.
|
|
|
|
|
Subadvisor
|
Portfolio
Manager
|
Service
Date
|
|
MacKay Shields LLC
|
Edward Silverstein, Senior Managing Director
|
Since
2001
|
How to Purchase and Sell Shares
You may purchase or sell shares
of the Fund on any day the Fund is open for business by contacting your financial adviser or financial
intermediary firm, or by contacting the Fund by telephone at
800-MAINSTAY
(624-6782)
, by mail at MainStay Funds, P.O. Box 8401, Boston, MA 02266-8401 or by accessing our
website at mainstayinvestments.com. Generally, an initial investment minimum of $1,000 applies if you
invest in Investor Class, Class B, or Class C shares, $25,000 for Class A shares and $5,000,000 for individual
investors in Class I shares investing directly (i) with the Fund; or (ii) through certain private banks
and trust companies that have an agreement with NYLIFE Distributors LLC, the Fund’s principal underwriter
and distributor, or its affiliates. A subsequent investment minimum of $50 applies to investments in
Investor Class, Class B and Class C shares. However, for Investor Class, Class B, or Class C shares purchased
through AutoInvest, a monthly systematic investment plan, a $500 initial investment minimum ($50 for
subsequent purchases) applies. Institutional shareholders in Class I shares have no initial or subsequent
investment minimums.
The Fund's distributions are generally taxable
to you as ordinary income, capital gains, or a combination of the two, unless you are investing through
a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account.
Compensation to Financial
Intermediary Firms
If you purchase Fund shares through a financial intermediary firm
(such as a broker/dealer or bank), the Fund and its related companies may pay the intermediary for the
sale of Fund shares and related services. These payments may create a conflict of interest by influencing
the financial intermediary firm or your financial adviser to recommend the Fund over another investment.
Ask your financial adviser or visit your financial intermediary firm's website for more information.
For additional information about compensation to financial intermediaries, please see the section entitled
"Compensation to Financial Intermediary Firms" in the "Shareholder Guide" section starting on page 110
of the Prospectus.
4
First M & F (NASDAQ:FMFC)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
First M & F (NASDAQ:FMFC)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
