THE PIVOT POINT
Manage Reinvestment Risk with Bonds
Access high income potential and resiliency
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Why invest in short duration bonds today?
Allocating to short duration bonds has offered strong levels of current income while adding diversification and the potential for higher risk-adjusted returns.
US High Yield has trended towards high quality
Access short-duration bonds with MDHIX that has offered strong levels of income
Source: FactSet, as of 8/31/24; High yield represented by ICE BofA U.S. High Yield Index. Past performance is no guarantee of future results, which will vary. It is not possible to invest directly in an index. Moody's ratings go from AAA, which is the highest grade for the top quality issuer with the lowest risk, down to C, which is usually given to securities that are in default with little chance for recovery of principal or interest.
¹MDHIX yield is represented by SEC 30-Day Yield for MDHIX based on net investment income for the 30-day period ended 06/30/24 divided by the offering price per share on that date. Yields for other share classes will vary. Index yields are represented by yield to worst. Unsubsidized 30-Day Yield (6.24%) reflects what the yield would have been without the effect of waivers and/or reimbursements. Please note that there was no reimbursement for this time period.
Consider the Funds' investment objectives, risks, charges, and expenses carefully before investing. The prospectus and summary prospectus include this and other information about the Funds and are available by visiting the fund webpage Read the prospectus carefully before investing.
Municipal bonds offer attractive tax-free income, strong fundamentals, and have proven historically resilient.
Yield potential with municipal bonds
Tax-exempt income levels are the most attractive in years
Source: Barclays, as of 9/30/24. YTW is Yield to Worst. Muni Index: Bloomberg U.S. Municipal Bond Index. An Investment cannot be made directly into an index. Past performance is not a guarantee of future results. Tax-equivalent yield based on 40.80% tax level (37% highest federal tax bracket plus the 3.8% Medicare surcharge). The taxable equivalent yield of a hypothetical yield is calculated as: hypothetical yield + 1 minus 0.408.
Looking to add the power of bonds to income portfolios?
Investing in short duration bonds involves risks, including the potential for interest rate changes, credit spread fluctuations, and the possibility of losing principal. These bonds are not risk-free and may still experience price volatility. Additionally, municipal bonds may be subject to state and local taxes and the risk of default. All investments carry inherent risks, including the potential loss of principal.
The LSEG Lipper Fund Awards annually recognize funds and companies that consistently deliver strong risk-adjusted performance. Awards are based on the Lipper Leader for Consistent Return rating, a risk-adjusted performance measure calculated over 36, 60, and 120 months. The highest scoring fund in each category wins. The MainStay MacKay Short Duration High Income Fund (MDHIX) won the 2023 U.S. award in its category. The MainStay MacKay Short Duration High Income Fund won the 2023 LSEG Lipper U.S. Award in its category over 10 Years among 11 funds. Visit lipperfundawards.com for more information.