Floating rate funds are generally considered to have speculative characteristics that involve default risk of principal and interest, collateral impairment, borrower industry concentration, and limited liquidity. The Fund may invest in foreign securities. U.S. dollar-denominated securities of foreign issuers can be subject to different risks than U.S. investments, including less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in U.S. or foreign tax or currency laws and monetary policy. Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise.
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 A Shares rated four stars overall for the period ended 7/31/10 from among 101 bank loan funds. The Overall Morningstar RatingTM is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar RatingTM metrics. Class A Shares rated four stars for the three- and five-year period ended 7/31/10 from among 101 and 72 bank loan funds, respectively. Rating shown for Class A only; other share classes may vary. For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM 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 Investor Class shares, first offered 2/28/08, includes the historical performance of Class A shares from inception (5/3/04) through 2/27/08 adjusted to reflect the applicable fees and expenses for such shares. Class I shares are generally available only to corporate and institutional investors.
The information contained on the video clip reflects, as of the date hereof, the views of New York Life Investments Fixed Income Investors Group. No representation of warranty is made concerning the accuracy of any data compiled herein. In addition, there can be no guarantee that any projection, forecast, or opinion in these materials will be realized. The views expressed herein may change at any time subsequent to the date of issue hereof. These materials are provided for informational purposes only.
Please note that the investment objectives may not be met as the underlying investment options may be subject to market risk and will fluctuate in value.
Definitions
Disinflation is a decrease in the rate of inflation or a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.
Deflation is a decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending.
The duration of a financial asset, specifically a bond, is a measure of average maturity that incorporates a bond's yield, coupon, final maturity and call features into one measurement. Duration measures the sensitivity of the asset's price to interest rate movements. It broadly corresponds to the length of time before the asset is due to be repaid.
Quick reset refers to the fact that rates are customarily reset every 30, 60, or 90 days based on current interest rates.
A derivative is a financial instrument whose characteristics and value depend upon the characteristics and value of an underlier, typically a commodity, bond, equity, or currency. Examples of derivatives include futures and options. Derivatives may increase the volatility of the Fund's net asset value and may result in a loss.
Credit rating is a published ranking, based on detailed financial analysis by a credit bureau, of a financial history, specifically as it relates to the ability to meet debt obligations. The highest rating is usually AAA, and the lowest is D. Lenders use this information to decide whether to approve a loan. For example, the credit ratings of Moody's Investor Services and Standard & Poor's, respectively, is as follows: Investment-Grade Bonds: Highest Quality Aaa/AAA, High Quality (very strong) Aa/AAA, Upper Medium Grade (strong) A/A, Medium Grade Baa/BBB; Below Investment Grade: Lower Medium Grade (somewhat speculative) Ba/BB, Low Grade (speculative) B/B, Poor Quality (may default) Caa/CCC, Most Speculative Ca/CC, No interest being paid or bankruptcy petition filed C/C, In default D/D.
A yield curve is graphic representation that displays the relationship between yields and maturity dates for a set of similar bonds, at a given point in time. For example, the U.S. dollar interest rates paid on U.S. Treasury securities for various maturities, such as short-term and long-term, are commonly plotted on a graph called a "yield curve." The flattening of a yield curve for bonds occurs when the yield spread on short-term and long-term bonds decreases. That is, a flattening of the yield curve occurs when either the yield increases for short-term bonds and decreases for long-term bonds, or vice versa.
Default rate source: Credit Suisse Loan Default Study. For the period 1/1/01-12/31/09, New York Life Investments High Yield Credit Group achieved an annualized default rate with respect to third party loan assets of 0.7% versus the Credit Suisse Institutional Loan Default Rate of 3.7%. The Credit SuisseTM Institutional Loan Default Rate is defined as the sum of institutional leveraged loans that have gone into default over a 12-month period divided by the average size of the institutional market over the same time period.
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.
