NYLI MacKay Strategic Muni Allocation Fund Class C2 (MTFMX)

Overview

The fund described is a municipal bond investment fund that primarily focuses on generating income that is exempt from federal income tax for its investors. It operates with a strategic approach towards investment, maintaining a significant portion of its assets in municipal bonds. The fund targets to uphold a dollar-weighted average portfolio duration ranging from 3 to 10 years. There's an emphasis on flexibility regarding the duration or maturity of the instruments in which it may invest, depending on the prevailing market conditions and the fund manager's discretion. The investment strategy further underscores a commitment to quality by predominantly investing in bonds that are rated as investment grade by recognized rating agencies, or those that are unrated but considered to be of similar quality by the fund's subadvisor. This careful approach to portfolio management aims to balance risk with the goal of delivering favorable tax-exempt income to its investors.

Products and Services

• Municipal Bond Investments

  The core offering of the fund includes investments in municipal bonds that generate income exempt from federal income taxes. This product is tailored for investors seeking to optimize their income while minimizing their tax liabilities. The fund's strategy aims to select bonds that not only provide tax benefits but also meet a certain threshold of credit quality and maturity, align there with risk tolerance levels and investment horizons of the investors.

• Portfolio Duration Management

  The fund emphasizes maintaining a portfolio with a dollar-weighted average duration of between 3 to 10 years. This product feature is indicative of the fund's approach to risk management, balancing between short-term and long-term bonds to mitigate interest rate risk while striving to provide a steady income. The flexibility in the selection of instruments with varying durations or maturities allows the fund to adapt to changes in interest rates and market conditions, aiming to preserve capital and optimize returns.

• Investment Grade Quality Bonds

  A significant part of the fund's assets is allocated to investment grade quality bonds. This service assures investors that the majority of their investments are held in bonds deemed to have a lower risk of default by nationally recognized statistical rating organizations. For bonds that are not rated, the fund's subadvisor assesses and determines them to be of comparable quality before investment. This strategy is designed to provide investors with a relatively secure source of tax-exempt income, leaning towards a more conservative investment approach.