The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. This is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

Past performance is no guarantee of future results which will vary.

High-yield securities ("junk bonds") are generally considered speculative because they present a greater risk of loss than higher-quality debt securities and may be subject to greater price volatility. Foreign securities may be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. These risks are likely to be greater for emerging markets than in developed markets. The Fund may invest in derivatives, which may increase the volatility of the Fund's net asset value and may result in a loss to the Fund. The Fund may experience a portfolio turnover rate of over 100% and may generate short-term capital gains which are taxable. The principal risk of mortgage dollar rolls is that the security the Fund receives at the end of the transaction may be worth less than the security the Fund sold to the same counterparty at the beginning of the transaction. Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise.

A Corporate bond is a debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds.

A Sovereign bond is a debt security issued by a national government within a given country and denominated in a foreign currency. The foreign currency used will most likely be a hard currency, and may represent significantly more risk to the bondholder.

Deleveraging refers to a company's attempt to decrease its financial leverage. The best way for a company to deleverage is to immediately pay off any existing debt on its balance sheet. If it is unable to do this, the company will be in significant risk of defaulting.

High-yield bonds spreads refers to the percentage difference in current yields of various classes of high-yield bonds (often junk bonds) compared against investment-grade corporate bonds, Treasury bonds, or another benchmark bond measure. Spreads are often expressed as a difference in percentage points or basis points (which equal one-one hundredth of a percentage point).

Compress refers to the narrowing of spreads between Treasurys of various durations.

The London-Interbank Offered Rate (LIBOR) is the interest rate participating banks offer to other banks for loans on the London market. LIBOR is the most widely used benchmark for short term interest rates in the world, primarily because most of the world's largest borrowers borrow money on the London market.

A government bond is a debt obligation of the U.S. Government and as such is regarded as the highest grade of securities issues.

An intermediate-term bond is a debt security with a maturity of seven to 15 years. It may also be referred to as a medium-term bond.

Short duration refers to a type a of fixed-income instrument with a very short maturity.

A government back security is a type of security that is back by the full faith and credit of the U.S. government.

An agency backed security is a type of security that is issued by a U.S. government agency or a corporation that has been issued a chartered by the government.

A mortgage-backed security is a type of asset-backed security that is secured by a mortgage or collection of mortgages.

A convertible bond is a type of bond that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.

Emerging markets are nations with social or business activity in the process of rapid growth and industrialization.

Floating rate bonds are bonds whose interest is pegged to a benchmark, such as the London-Interbank Offered Rate (LIBOR), and adjusted periodically.

A 130/30 strategy is essentially an investment strategy benchmarked to a broad market index. It generally invests 130% of its net assets in long positions, while 30% is sold short. The proceeds from the short sales are used to fund the purchase of the additional 30% of the long positions-providing an investment with 100% net exposure to the benchmark.

Investing "long" on an investment is a way to profit from the increase in price of a security, such as a stock or bond. An investor who "goes long" purchases a security with the hope that the price will rise, so that it can be sold for a profit. "Selling short" is a way to profit from the decline in price of a security. An investor who "sells short" borrows a security and sells it, hoping that the price will decline so they can buy it back at a lower price and keep the difference. The profit is the difference between the price at which the stock was sold and the cost at which it was bought back.

A high-yield bond is a high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds, and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.

"Top-down" investing involves an approach that looks at the economy in an attempt to forecast which industry will generate the best returns. These investors then look for individual companies within the chosen industry and add the stock to their portfolios.

Conversely, a "bottom-up" investor overlooks broad sector and economic conditions and instead focuses on selecting a stock based on the individual attributes of a company. Advocates of the bottom-up approach simply seek strong companies with good prospects, regardless of industry or macroeconomic factors.

1. POP (Public Offering Price) is the NAV (Net Asset Value) plus a sales charge. All POPs are subject to revision and include the maximum sales charge.

3. $500 minimum for accounts opened with a systematic investment plan of at least $50 per month, or no minimum for accounts opened with a systematic investment plan of at least $100 per month.

Class I Shares rated four stars overall for the period ended 7/31/10 from among 194 multisector bond funds. The Overall Morningstar Rating^TM is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating^TM metrics. Class I Shares rated four stars and four stars, for the three-, and five-year periods ended 7/31/10 from among 194 and 157 multisector bond funds, respectively. Ratings shown for Class I only; other share classes may vary. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating^TM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the next 10% receive one star.

Fund statistics shown are for Class A only, other share classes may vary. The P/E Ratio (price-to-earnings) denotes the weighted average of all the P/Es of the securities in the fund's portfolio. The P/B Ratio (price-to-book) is the weighted average of all the P/Bs of the securities in the fund's portfolio. Return on Equity (ROE) is the weighted average of all the ROEs of the securities in the fund's portfolio. ROE is calculated by dividing net income by book value. Standard deviation measures how widely dispersed a fund's returns have been over a specified period of time. A high standard deviation indicates that the range is wide, implying greater potential for volatility. Beta is a measure of historical volatility relative to an appropriate index (benchmark) based on its investment objective. A beta greater than 1.00 indicates volatility greater than the benchmark's. Alpha measures a fund's risk-adjusted performance and is expressed as an annualized percentage. R-Squared measures the percentage of a fund's movements that result from movements in the index. The Sharpe Ratio shown is calculated for the past 36-month period by dividing annualized excess returns by annualized standard deviation. The Annual Turnover Rate is as of the most recent annual shareholder report. Upside/Downside Market Capture measures a manager's performance in up/down markets relative to the fund's benchmark. Effective Maturity is the average time to maturity of debt securities held in the portfolio taking into consideration the possibility that the issuer may call the bond before its maturity date. Modified duration is inversely related to the approximate percentage change in price for a given change in yield. Duration to Worst is the duration of a bond computed using the bond's nearest call date or maturity, whichever comes first. This measure ignores future cash flow fluctuations due to embedded optionality.

Average annual total returns include the change in share price and reinvestment of dividends and capital gain distributions. Performance for Class C shares, first offered 9/1/98, includes the historical performance of Class B shares from inception (2/28/97) through 8/31/98 adjusted to reflect the applicable CDSC for such shares. Performance for Class I and Investor Class shares, first offered 1/2/04 and 2/28/08, respectively, includes the historical performance of Class A shares from inception (2/28/97) through 12/31/03 for Class I and through 2/27/08 for Investor Class, adjusted to reflect the applicable sales charge and fees and expenses for such shares. Class I shares are generally available only to corporate and institutional investors.

This mutual fund may be offered and sold only to persons in the United States. Please contact your investment professional or call 800-MAINSTAY (624-6782) for a prospectus or download it now. Please consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus contains this and other information about the investment company. Please read it carefully before you invest.

NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054.

These products are not federally insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, or similar agency.