MainStay MacKay Short Duration High Yield Fund, Class Investor (MDHVX)

Overview

The fund operates as an investment entity focusing primarily on high-yield debt securities. It is managed by MacKay Shields LLC, acting as its Subadvisor. This investment vehicle is designed for investors seeking opportunities in high-yield investments typically involving bonds rated below investment grade or equivalents. The fund's strategy is grounded in allocating a substantial portion of its assets—specifically, at least 80%—towards these high-yield, lower-grade debt securities. This allocation approach is informed by assessments from nationally recognized statistical rating organizations (NRSROs) or equivalents determined by MacKay Shields LLC for unrated securities which are deemed to be of comparable quality. A distinctive feature of the fund is its commitment to maintaining a weighted average duration of three years or less, though it maintains the flexibility to invest in instruments of any duration or maturity to meet its investment goals.

Products and Services

• High-Yield Debt Security Investments

  The core offering of the fund revolves around investments in high-yield debt securities. These are typically bonds rated below investment grade by recognized rating agencies, indicating a higher risk but potentially higher returns compared to investment-grade bonds. The fund targets these securities as its primary investment, adhering to a strategy that seeks to capitalize on the yields offered by such bonds while managing the risks involved in lower-grade investments.

• Duration and Maturity Flexibility

  Another key aspect of the fund's strategy is its flexibility regarding the duration and maturity of its investments. While it aims to maintain a weighted average duration of three years or less, the fund is not restricted by the maturity of the debt instruments it chooses. This strategy allows it to navigate the fixed-income market more freely, adapting its portfolio according to market conditions and investment opportunities while attempting to manage interest rate risk.