NYLI MacKay Tax Free Bond Fund Class I (MTBIX)

Overview

The fund is designed for investors seeking to invest primarily in municipal bonds with an emphasis on investment-grade securities. With a strategic focus on municipal bonds that exhibit stability and reliability, the fund allocates at least 80% of its assets towards investment-grade municipal bonds. These bonds typically offer lower risk compared to non-investment grade bonds, making them an attractive option for conservative investors. The fund’s strategy includes a specific maturity range target of 10 to 30 years for the bonds it invests in, aiming to provide a balance between yield and duration risk. Furthermore, it limits its exposure to securities that may be subject to the federal alternative minimum tax to no more than 20% of its net assets, thereby minimizing the tax impact on investors.

Products and Services

• Investment-Grade Municipal Bonds

  The cornerstone of the fund's portfolio, focusing on municipal bonds rated within the investment-grade category. These bonds are selected based on their creditworthiness and potential to provide stable and reliable returns over time. By strictly investing at least 80% of its assets in these securities, the fund aims to maintain a conservative risk profile while seeking sustainable income.

• Municipal Bonds with 10 to 30 Year Maturity

  Averaging the maturity range of the municipal bonds it invests in, the fund targets bonds that mature in 10 to 30 years. This strategy is employed to strike a balance between obtaining higher yields, which are typically associated with longer maturity periods, and managing the interest rate risk inherent in fixed income investments. This approach helps in optimizing the return potential against the backdrop of changing interest rates.

• Tax-exempt Securities Subject to AMT Limitation

  While the fund primarily focuses on tax-exempt municipal bonds, it carefully manages its exposure to securities that might be subject to the federal alternative minimum tax (AMT). By limiting investments in AMT-subject tax-exempt securities to no more than 20% of its net assets, the fund minimizes its impact by the AMT, catering to investors who are seeking tax-efficient returns.