MainStay Funds to launch Short Duration High Yield Fund in December

By Toni Weeks

San Diego, Sept. 28 - MainStay Funds Trust announced plans to launch a new high-yield fund in December, according to an N-1A filing with the Securities and Exchange Commission.

The MainStay Short Duration High Yield Fund will seek 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 will generally seek 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 will be the portfolio managers.

The fund will launch with class A, class C, class I, class R2 and investor class shares. Ticker symbols have not yet been set.

Shareholder fees consist of a 4.5% maximum sales load for class A, class C and investor class shares and a 1% maximum deferred sales charge for class C shares. Management fees have not yet been determined.

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

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