Small-Cap Value

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Small-Cap Value

Objective/Philosophy

>	To exceed the Russell 2000 Value Index¹ by 300-500 bps annually, after fees.
>	To target a tracking error² of 400-600 bps.
>	Select relatively undervalued stocks that can potentially outperform their respective universe by using valuation and trading factors.

Portfolio Managers

Tony Elavia

>	Mr. Elavia is Chief Investment Officer of NYLIM Equity Investors, and a Sr. Managing Director of NYLIM.
>	He is the portfolio manager for MainStay Asset Allocation Funds, MainStay Retirement Funds, MainStay Small Cap Opportunity Fund, and has managed MainStay Income Manager and Balanced Funds since 2005.
>	Previously, he was a Sr. Vice President with Piper Capital Management.
>	Immediately prior to joining NYLIM, Mr. Elavia was Managing Director and Sr. Portfolio Manager of the Large Cap Growth team of Putnam Investments in Boston, MA, managing more than $25 billion in assets.
>	Prior to joining Putnam, Mr. Elavia was Executive Vice President and Portfolio Manager at Voyageur Asset Management and President of TES Partners, a long short hedge fund in Minneapolis, MN.
>	Mr. Elavia holds a Ph.D. and M.A. in Economics from the University of Houston and a M.S. and B.C. from the University of Baroda in Vadodara, India.

¹Russell 2000 Value Index: Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

²Tracking error is one possible measurement of a portfolio's returns from its stated benchmark. More specifically, it is the standard deviation of such excess returns. Tracking error figures are representations of statistical expectations falling within "normal" distributions of return patterns. Normal statistical distributions of returns suggests that approximately two thirds of the time the annual gross returns of the accounts will lie in a range equal to the benchmark return plus or minus the tracking error if the market behaves in a manner suggested by historical returns. Targeted tracking error therefore applies statistical probabilities (and the language of uncertainty) and so cannot be predictive of actual results. The tracking error that will actually be achieved may inherently lie outside of the range suggested by a "normal" statistical distribution of returns. The actual tracking error is the result of many factors (including but not limited to market volatility, company specific anomalies, instability of correlation between benchmark holdings, timing difference between the calculation of the portfolio value and the valuation of the benchmark by the index provider). In addition, past tracking error is not indicative of future tracking error and there can be no assurance that the tracking error actually reflected in your accounts will be at levels either specified in the investment objectives or suggested by our forecasts.