MainStay Floating Rate Fund SIMPLE Class (MXFMX)

Overview

The fund focuses on maximizing investor returns through a diversified portfolio primarily consisting of floating rate loans and floating rate debt securities. It is tailored to dynamically adapt its investment strategy in response to market and economic fluctuations. By earmarking at least 80% of its resources—net assets in conjunction with borrowings intended for investment purposes—towards floating rate financial instruments, the fund aims to offer investors the advantage of interest rate movements. Additionally, in periods deemed by the Subadvisor as being adverse for investor interests, the fund reserves the flexibility to redirect up to 100% of its assets towards money market or short-term debt instruments, thereby mitigating risk. Catering also to an international audience, the fund allows for up to a quarter of its assets to be invested in foreign securities, generally maintaining a preference for U.S. dollar-denominated instruments issued by entities outside the U.S., albeit without a U.S. co-borrower. This investment strategy signifies the fund's preference for adapting to global market conditions while seeking to capitalize on the benefits attributed to floating rate financial instruments.

Products and Services

• Floating Rate Loans

The principal component of the fund's investment portfolio, these are typically adjustable-rate loans that reset at regular intervals with market interest rates. This strategy aims to reduce the interest rate risk inherent in fixed-rate loans and is intended to provide investors with more stable returns in fluctuating economic environments.

• Floating Rate Debt Securities

Aside from floating rate loans, the fund also invests in various other types of floating rate debt securities. These instruments adjust their interest payouts based on current market rates, aligning the fund’s yield with prevailing economic conditions, thereby maintaining the investment’s appeal irrespective of the interest rate environment.

• Money Market or Short-Term Debt Securities

In response to the Subadvisor's assessment of unfavorable market or economic conditions, the fund may pivot its investment strategy to focus entirely on money market instruments or short-term debt securities. This shift is designed to preserve capital and mitigate losses, ensuring the fund’s resilience and safeguarding investor interests.

• Foreign Securities Investments

Reflecting its global investment outlook, the fund diversifies its portfolio by allocating up to 25% of its total assets in foreign securities. Although these are primarily U.S. dollar-denominated, they offer exposure to non-U.S. markets and borrowers, providing potential for higher returns and further diversification benefits. Investment in foreign securities without a U.S. domiciled co-borrower expands the fund’s reach into international markets, potentially tapping into growth opportunities beyond domestic borders.