MainStay Funds announces launch of Short Duration High Yield Fund

By Toni Weeks

San Diego, Dec. 17 - MainStay Funds Trust announced that it has launched a new high-yield fund, according to an N-1A filing with the Securities and Exchange Commission.

The MainStay Short Duration High Yield Fund seeks high current income with capital appreciation as a secondary objective by investing at least 80% of its assets in high-yield debt securities.

The debt securities may include all types of debt obligations, including bonds, debentures, notes, bank debt, bank loan participations, commercial paper, U.S. Government securities and convertible corporate bonds. The fund generally seeks to maintain a weighted average duration of three years or less.

The fund may invest up to 20% of its net assets in equity securities, including preferred shares.

J. Matthew Philo and Andrew Susser are the portfolio managers.

The fund launched with class A, class C, class I, class R2 and investor class shares. The ticker symbols are MDHAX, MDHCX, MDHIX, MDHRX and MDHVX, respectively.

Shareholder fees consist of a 3% maximum sales load for class A and investor class shares and a 1% maximum deferred sales charge for class C shares. Management fees will run 0.65%. Including these and taking into account a fee waiver with the investment adviser, total annual fund operating expenses are expected to be 1.05% for class A, 1.85% for class C, 0.8% for class I, 1.15% for class R2 and 1.1% for investor class shares.

New York Life Investment Management LLC, based in New York, is the fund's manager, with MacKay Shields LLC as subadviser.

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