Fund-Specific Risk

Before considering an investment in the Fund, you should understand that you could lose money.

All investments are subject to market risk, including possible loss of principal. 

Diversification cannot assure a profit or protect against loss in a declining market.

The Fund's performance depends on the subadvisor's skill in determining the asset class allocations and the mix of underlying Funds, as well as the performance of those underlying Funds. The underlying Funds' performance may be lower than the performance of the asset class which they were selected to represent. The Funds are indirectly subject to the investment risks of each underlying Fund held.

The Funds may invest more than 25% of its assets in one underlying Fund, which may significantly affect the net asset value of the Funds.

The principal risks of investing in the Fund are summarized below.

Asset Allocation Risk: Although allocation among different asset classes generally limits the Fund's exposure to the risks of any one class, the risk remains that New York Life Investment Management may favor an asset class that performs poorly relative to the other asset classes. The Underlying ETFs may underperform the market or other investments. Moreover, because the Fund has set limitations on the amount of assets that normally may be allocated to each asset class, the Fund has less flexibility in its investment strategy than mutual funds that are not subject to such limitations. In addition, the asset allocations made by the Fund may not be ideal for all investors and may not effectively increase returns or decrease risk for investors.

Exchange-Traded Fund (“ETF”) Risk: The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although lack of liquidity in an ETF’s shares could result in the market price of the ETF’s shares being more volatile than the value of the underlying portfolio of securities. Disruptions in the markets for the securities underlying ETFs purchased or sold by the Fund could result in losses on the Fund’s investments in ETFs. ETFs also have management fees that increase their costs versus the costs of owning the underlying securities directly.

Principal Risks of the Underlying ETFs

Equity Securities Risk: Investments in common stocks and other equity securities are particularly subject to the risk of changing economic, stock market, industry and company conditions and the risks inherent in the portfolio managers’ ability to anticipate such changes that can adversely affect the value of a Fund’s holdings.

Debt Securities Risk: Funds that invest in bonds are subject to interest rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk which is the possibility that the bond issuer may fail to pay interest and principal in a timely manner. 

Derivatives Risk: Derivatives often involve a high degree of financial risk in that a relatively small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable as well as favorable, in the price of the derivative instrument. Investments in derivatives may increase the volatility of a fund’s net asset value and may result in a loss to the fund. 

Bloomberg Municipal Intermediate 5-10 Year Index is an unmanaged index of long-term, fixed-rate, investment-grade, tax-exempt bonds representative of the municipal bond market.

High Yield Risk: High yield securities (junk bonds) have speculative characteristics and present a greater risk of loss than higher quality debt securities. These securities can also be subject to greater price volatility.

Index Definitions

The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance

The Growth Allocation Composite Index consists of the S&P 500® Index, the MSCI EAFE® Index (Net) and the Bloomberg U.S. Aggregate Bond Index weighted 60%, 20% and 20%, respectively.

MSCI EAFE® Index (Net): Consists of international stocks representing the developed world outside of North America.

The S&P 500® Index is generally representative of the market sectors or types of investments in which the Fund invests.

Index results assume the reinvestment of all capital gain and dividend distributions. An investment cannot be made directly into an index. Index performance is for illustrative purposes only and does not represent actual Fund performance.