MainStay Floating Rate Fund Class C (MXFCX)

Overview

This fund primarily focuses on investing in a diverse range of floating rate loans and other floating rate debt securities. A significant portion of its investment strategy, that is at least 80% of its assets, is dedicated to floating rate instruments. These are financial instruments whose interest rate payments adjust in accordance with market rates, offering a hedge against interest rate fluctuations. In addition to its core investments, the fund exhibits flexibility in its investment approach. During periods when market or economic conditions are deemed adverse or unfavorable, the fund’s strategy allows for a strategic shift. In such scenarios, it has the capacity to allocate up to 100% of its assets into safer havens, such as money market or other short-term debt securities. This maneuver is aimed at preserving capital and minimizing the potential impact of negative market conditions on the fund’s performance.

Products and Services

• Floating Rate Loans and Debt Securities

At the core of the fund’s investment portfolio are floating rate loans and other debt securities. These financial instruments are designed to offer investors protection against rising interest rates, as the interest payments adjust based on prevailing market rates. This strategic focus caters to investors looking for yield opportunities while managing interest rate risk.

• Money Market and Short-Term Debt Securities

In response to unfavorable market or economic conditions, the fund has the flexibility to pivot towards investing in money market instruments or short-term debt securities. This strategy is aimed at capital preservation during times of market volatility or downturns, offering investors a safer positioning by shifting away from higher-risk assets.

• Foreign Securities Investments

The fund also engages in investments in foreign securities, up to a limit of 25% of its total assets. These are generally U.S. dollar-denominated loans and debt securities issued by non-U.S. borrowers without a U.S. domiciled co-borrower. This component of the fund’s investment strategy provides a broader range of investment opportunities and diversification benefits, albeit with the considerations and risks associated with international investing.