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2012-05-01
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2012-05-01
2012-05-01
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2013-01-11
MAINSTAY VP FUNDS TRUST
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2013-01-11
2013-01-11
2012-05-01
<p style="margin: 0in; margin-bottom: .0001pt;"><b>MainStay VP Growth Equity Portfolio</b></p>
<p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>MAINSTAY VP FUNDS TRUST</b></p>
<p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"> </p>
<p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>MainStay VP Growth Equity Portfolio</b></p>
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<p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Supplement dated January 11, 2013 (“Supplement”)</p>
<p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;">to the Prospectus dated May 1, 2012, as supplemented</p>
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<p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">This Supplement updates certain information contained in the Prospectus for the MainStay VP Growth Equity Portfolio (“Portfolio”), a series of MainStay VP Funds Trust (“Trust”). You may obtain copies of the Portfolio’s Prospectus and Statement of Additional Information free of charge, upon request, by calling toll-free 1-800-598-2019, or by writing to New York Life Insurance and Annuity Corporation, 51 Madison Avenue, New York, NY 10010. Please review this important information carefully.</p>
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<td style="width: 0.25in;">1.</td>
<td style="text-align: justify;">At a Special Meeting of Shareholders held on January 7, 2013, the shareholders of the Portfolio approved a Subadvisory Agreement between New York Life Investment Management LLC and Cornerstone Capital Management LLC with respect to the Portfolio. Accordingly, effective January 11, 2013, the Portfolio’s Prospectus is revised as follows:</td>
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<td style="width: 0.25in;">A.</td>
<td style="text-align: justify;">The section entitled “<b>Principal Investment Strategies”</b> is deleted in its entirety and replaced as follows:</td>
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<p style="text-align: justify; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The Portfolio invests primarily in equity securities of U.S. companies, the prospective earnings growth of which, in the opinion of Cornerstone Capital Management LLC, the Portfolio’s Subadvisor, is not fully appreciated by the market or reflected in current market valuations. The Subadvisor also looks for companies it believes have strong management, superior industry positions, excellent balance sheets and superior earnings growth potential. U.S. companies are companies organized in the U.S. that trade primarily on U.S. securities markets. The Portfolio may also invest in foreign companies. Generally, foreign companies are companies organized outside the U.S. and that trade primarily in non-U.S. securities markets.</p>
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<p style="text-align: justify; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Under normal circumstances, the Portfolio will invest at least 80% of its assets in common stocks of large-capitalization growth companies. Large-capitalization growth companies are those that, at the time of investment, have market capitalizations within the range of market capitalizations of companies appearing in the Russell 1000<sup>® </sup>Growth Index (which ranged from $220.32 million to $623.60 billion as of August 31, 2012). The Portfolio generally will invest in common stocks of companies with market capitalizations of at least $3 billion at the time of purchase.</p>
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<p style="text-align: justify; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Investment Process.</b> Normally, the Portfolio holds between 35 and 55 securities. The 25 most highly regarded of these companies, in the Subadvisor’s opinion, usually constitute approximately 70% or more of the Portfolio’s net assets. Notwithstanding this focus, the Portfolio has no policy to concentrate in securities of issuers in a particular industry or group of industries. Although the Portfolio does not have a policy to concentrate its investments in any one industry, a large portion of its assets has historically been in technology companies which the Subadvisor believes offer strong growth potential.</p>
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<p style="text-align: justify; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">During market declines, while adding to positions in favored stocks, the Portfolio becomes somewhat more aggressive, gradually reducing the number of companies represented in its portfolio. Conversely, in rising markets, while reducing or eliminating fully valued positions, the Portfolio becomes somewhat more conservative, gradually increasing the number of companies represented in its portfolio. Through this process, the Subadvisor tends to add to positions on price weakness and sell into price strength, all else being equal and assuming long-term company fundamentals are intact. Risk is therefore increased during periods of weakness and reduced during periods of strength. The Subadvisor uses this active management strategy to attempt to add incremental performance while seeking to mitigate risk by utilizing a buy low, sell high discipline.</p>
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<td style="width: 0.25in;">B.</td>
<td style="text-align: justify;">In the section entitled “<b>Principal Risks,”</b> Mid Cap Stock Risk is deleted and the following risks are added:</td>
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0.25in; font: 10pt times new roman, times, serif;"> </p>
<p style="text-align: justify; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Foreign Securities Risk:</b> Investments in foreign securities may be riskier than investments in U.S. securities. Differences between U.S. and foreign regulatory regimes and securities markets, including less stringent investor protections and disclosure standards of some foreign markets, less liquid trading markets, as well as political and economic developments in foreign countries, may affect the value of the Portfolio's investments in foreign securities. Foreign securities may also subject the Portfolio's investments to changes in currency rates.</p>
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<p style="text-align: justify; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Concentrated Portfolio Risk:</b> Because the Portfolio invests in relatively few holdings, a larger percentage of its assets may be invested in a particular issuer or in fewer companies than is typical of other mutual funds. This may increase volatility. The Portfolio will be more susceptible to adverse economic, political, regulatory or market developments affecting a single issuer.</p>
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<p style="text-align: justify; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Technology Stock Risk:</b> The Portfolio may focus its investments in technology companies. Technology companies are subject to risks such as those relating to the potential rapid obsolescence of technology, failure of the market to accept new technologies and difficulty obtaining financing for necessary research and development or expansion.</p>
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<td style="width: 0.25in;">C.</td>
<td style="text-align: justify;">In the section entitled <b>“Past Performance”</b> the following is hereby added following the second paragraph:</td>
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<p style="text-indent: -0.25in; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"> </p>
<p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Effective January 11, 2013, the Portfolio changed its subadvisor and revised its principal investment strategies. The past performance in the bar chart and table reflect the Portfolio’s prior subadvisor and principal investment strategies.</p>
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<p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>PLEASE RETAIN THIS SUPPLEMENT FOR YOUR FUTURE REFERENCE.</b></p>
<div><b>Principal Investment Strategies</b></div>
<div><font style="font-family: times new roman,times; ; font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;">The Portfolio invests primarily in equity securities of U.S. companies, the prospective earnings growth of which, in the opinion of Cornerstone Capital Management LLC, the Portfolio’s Subadvisor, is not fully appreciated by the market or reflected in current market valuations. The Subadvisor also looks for companies it believes have strong management, superior industry positions, excellent balance sheets and superior earnings growth potential. U.S. companies are companies organized in the U.S. that trade primarily on U.S. securities markets. The Portfolio may also invest in foreign companies. Generally, foreign companies are companies organized outside the U.S. and that trade primarily in non-U.S. securities markets.</font></font></div>
<div><font style="font-family: times new roman,times; ; font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;"></font></font> </div>
<div><font style="font-family: times new roman,times; ; font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;">Under normal circumstances, the Portfolio will invest at least 80% of its assets in common stocks of large-capitalization growth companies. Large-capitalization growth companies are those that, at the time of investment, have market capitalizations within the range of market capitalizations of companies appearing in the Russell 1000<sup>® </sup>Growth Index (which ranged from $220.32 million to $623.60 billion as of August 31, 2012). The Portfolio generally will invest in common stocks of companies with market capitalizations of at least $3 billion at the time of purchase.</font></font></div>
<div><font style="font-family: times new roman,times; ; font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;"></font></font> </div>
<div><font style="font-family: times new roman,times; ; font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;"><b>Investment Process.</b> Normally, the Portfolio holds between 35 and 55 securities. The 25 most highly regarded of these companies, in the Subadvisor’s opinion, usually constitute approximately 70% or more of the Portfolio’s net assets. Notwithstanding this focus, the Portfolio has no policy to concentrate in securities of issuers in a particular industry or group of industries. Although the Portfolio does not have a policy to concentrate its investments in any one industry, a large portion of its assets has historically been in technology companies which the Subadvisor believes offer strong growth potential.</font></font></div>
<div><font style="font-family: times new roman,times; ; font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;"></font></font> </div>
<div><font style="font-family: times new roman,times; ; font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;">During market declines, while adding to positions in favored stocks, the Portfolio becomes somewhat more aggressive, gradually reducing the number of companies represented in its portfolio. Conversely, in rising markets, while reducing or eliminating fully valued positions, the Portfolio becomes somewhat more conservative, gradually increasing the number of companies represented in its portfolio. Through this process, the Subadvisor tends to add to positions on price weakness and sell into price strength, all else being equal and assuming long-term company fundamentals are intact. Risk is therefore increased during periods of weakness and reduced during periods of strength. The Subadvisor uses this active management strategy to attempt to add incremental performance while seeking to mitigate risk by utilizing a buy low, sell high discipline.</font></font></div>
<div><b>Principal Risks</b></div>
<div><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><font style="font-family: times new roman,times;"><b>Foreign Securities Risk:</b> Investments in foreign securities may be riskier than investments in U.S. securities. Differences between U.S. and foreign regulatory regimes and securities markets, including less stringent investor protections and disclosure standards of some foreign markets, less liquid trading markets, as well as political and economic developments in foreign countries, may affect the value of the Portfolio's investments in foreign securities. Foreign securities may also subject the Portfolio's investments to changes in currency rates.</font> </font></div>
<div> </div>
<div><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><font style="font-family: times new roman,times;"><b>Concentrated Portfolio Risk: </b>Because the Portfolio invests in relatively few holdings, a larger percentage of its assets may be invested in a particular issuer or in fewer companies than is typical of other mutual funds. This may increase volatility. The Portfolio will be more susceptible to adverse economic, political, regulatory or market developments affecting a single issuer.</font></font></div>
<div><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><font style="font-family: times new roman,times;"></font></font> </div>
<div>
<div><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><font style="font-family: times new roman,times;"><b>Technology Stock Risk: </b>The Portfolio may focus its investments in technology companies. Technology companies are subject to risks such as those relating to the potential rapid obsolescence of technology, failure of the market to accept new technologies and difficulty obtaining financing for necessary research and development or expansion.</font></font></div>
</div>
<div><font size="2" style="font-family:times new roman,times">The past performance in the bar chart and table reflect the Portfolio’s prior subadvisor and principal investment strategies.</font></div>
<div><font size="2" style="font-family:times new roman,times">Under normal circumstances, the Portfolio will invest at least 80% of its assets in common stocks of large-capitalization growth companies.</font></div>
<p style="margin: 0in; margin-bottom: .0001pt;"><b>Past Performance</b></p>
<div><font size="2" style="font-family:times new roman,times">Effective January 11, 2013, the Portfolio changed its subadvisor and revised its principal investment strategies. The past performance in the bar chart and table reflect the Portfolio’s prior subadvisor and principal investment strategies.</font></div>