N-CSR 1 d435337dncsr.htm MAINSTAY FUNDS TRUST MAINSTAY FUNDS TRUST

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act File Number 811-22321

MAINSTAY FUNDS TRUST

(Exact name of Registrant as specified in charter)

51 Madison Avenue, New York, NY 10010

(Address of principal executive offices) (Zip code)

J. Kevin Gao, Esq.

30 Hudson Street

Jersey City, New Jersey 07302

(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 576-7000

Date of fiscal year end: October 31

Date of reporting period: October 31, 2022

 

 

 


FORM N-CSR

 

Item 1.

    Reports to Stockholders.





MainStay Balanced Fund

Message from the President and Annual Report
October 31, 2022
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please log in to newyorklifeinvestments.com/accounts.
Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency


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Message from the President
A series of economic and geopolitical challenges undermined equity and fixed-income markets during the 12-month reporting period ended October 31, 2022. Stocks and bonds alike trended lower in the face of sharply rising interest rates, increasing inflationary pressures, slowing economic growth and Russia’s invasion of Ukraine.
The reporting period began on a mixed note, with concerns about the spreading Omicron variant of the COVID-19 virus and increasingly hawkish statements from the U.S. Federal Reserve (the “Fed”) regarding mounting inflation, countered by bullish sentiment stemming from U.S. economic growth and strong corporate earnings. In January 2022, markets turned decisively negative as comments from the Fed raised the likelihood of rate hikes as early as March, and Russia issued increasingly aggressive threats toward Ukraine. The onset of Russia’s invasion in February exacerbated global inflationary pressures while increasing investor uncertainty. Domestic supply shortages, international trade imbalances and rising inflation caused GDP (gross domestic product) to contract in the first and second quarters of the year, although employment and consumer spending proved resilient. Prices for petroleum surged to multi-year highs, while many key agricultural chemicals and industrial metals climbed as well. Accelerating inflationary forces prompted the Fed to implement its most aggressive interest rate increases since the 1980s with a series of five sharp rate hikes, raising the federal funds rate from a range of 0.00% to 0.25% in March to 3.00% to 3.25% in September, with additional rate hikes expected before the end of the year. International central banks generally followed suit, raising rates by varying degrees in efforts to curb local inflation, although most increases remained significantly more modest than those in the United States. Relatively high U.S. interest rates and risk-averse international sentiment pushed U.S. dollar values higher compared to most other currencies, with the ensuing negative impact on global prices for food, fuel and other key, U.S.-dollar-denominated products.
The effects of these interrelated challenges were felt throughout U.S. and international financial markets. The S&P 500® Index, a widely regarded benchmark of U.S. market performance, declined by more than 14% during the reporting period. Although the energy sector generated strong gains, bolstered by elevated oil and gas prices, most other industry areas recorded losses. The more cyclical and growth-oriented sectors of consumer discretionary, real estate and information technology delivered the
weakest returns, while the traditionally defensive and value-oriented consumer staples, utilities and health care sectors outperformed. International stocks lagged compared to their U.S. counterparts, with some emerging markets, such as China, suffering particularly steep losses. A few markets, however, including Brazil, Mexico and the United Arab Emirates, ended the reporting period with little change. Fixed-income markets saw bond prices broadly decline as yields rose along with interest rates. Short-term yields rose faster than long-term yields, producing a yield curve inversion from July through the end of the reporting period, with long-term rates remaining below short-term rates. While floating-rate instruments, which feature variable interest rates that allow investors to benefit from a rising rate environment, provided a degree of insulation from inflation-driven trends, they were not immune to the market’s widespread declines.
While the Fed acknowledges the costs of rising rates in terms of weaker GDP growth and unsettled financial markets over the short term, its primary focus continues to be the longer-term economic impact of inflation. With the latest figures as of the date of this report showing that inflation remains above 8%, versus a target rate of just 2%, the Fed clearly has a distance yet to go, making further rate increases and market volatility more likely in the coming months. The question remains as to whether the Fed and other central banks will manage a so-called “soft landing,” curbing inflation while avoiding a persistent economic slowdown. If they prove successful, we expect that favorable inflation trends and increasingly attractive valuations in both equity and bond markets should eventually translate into sustainable improvements in the investment environment.
Whatever actions the Fed takes and however financial markets react, as a MainStay investor, you can depend on us to continue providing the insight, expertise and service that have long defined New York Life Investments. Thank you for trusting us to help you meet your investment needs.
Sincerely,
Kirk C. Lehneis
President
 
The opinions expressed are as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Past performance is no guarantee of future results.
Not part of the Annual Report


Table of Contents

Investors should refer to the Fund’s Summary Prospectus and/or Prospectus and consider the Fund’s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Fund. You may obtain copies of the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information, which includes information about the MainStay Funds Trust's Trustees, free of charge, upon request, by calling toll-free 800-624-6782, by writing to NYLIFE Distributors LLC, Attn: MainStay Marketing Department, 30 Hudson Street, Jersey City, NJ 07302 or by sending an e-mail to MainStayShareholderServices@nylim.com. These documents are also available via the MainStay Funds’ website at newyorklifeinvestments.com. Please read the Fund’s Summary Prospectus and/or Prospectus carefully before investing.


Investment and Performance Comparison (Unaudited)
Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The graph below depicts the historical performance of Class I shares of the Fund. Performance will vary from class to class based on differences in class-specific expenses and sales charges. For performance information current to the most recent month-end, please call 800-624-6782 or visit newyorklifeinvestments.com.
The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on distributions or Fund share redemptions. Total returns reflect maximum applicable sales charges as indicated in the table below, if any, changes in share price, and reinvestment of dividend and capital gain distributions. The graph assumes the initial investment amount shown below and reflects the deduction of all sales charges that would have applied for the period of investment. Performance figures may reflect certain fee waivers and/or expense limitations, without which total returns may have been lower. For more information on share classes and current fee waivers and/or expense limitations (if any), please refer to the Notes to Financial Statements.
Average Annual Total Returns for the Year-Ended October 31, 2022
Class Sales Charge   Inception
Date1
One
Year
Five
Years
Ten Years
or Since
Inception
Gross
Expense
Ratio2
Class A Shares3 Maximum 3% Initial Sales Charge With sales charges 1/2/2004 -8.19% 3.98% 6.57% 1.07%
    Excluding sales charges   -5.35 5.16 7.18 1.07
Investor Class Shares4 Maximum 2.5% Initial Sales Charge With sales charges 2/28/2008 -7.98 3.73 6.36 1.36
    Excluding sales charges   -5.62 4.91 6.96 1.36
Class B Shares5 Maximum 5% CDSC With sales charges 1/2/2004 -10.09 3.84 6.16 2.11
  if Redeemed Within the First Six Years of Purchase Excluding sales charges   -6.30 4.13 6.16 2.11
Class C Shares Maximum 1% CDSC With sales charges 12/30/2002 -7.06 4.13 6.17 2.11
  if Redeemed Within One Year of Purchase Excluding sales charges   -6.30 4.13 6.17 2.11
Class I Shares No Sales Charge   5/1/1989 -5.09 5.43 7.45 0.83
Class R1 Shares No Sales Charge   1/2/2004 -5.23 5.32 7.33 0.93
Class R2 Shares No Sales Charge   1/2/2004 -5.45 5.06 7.08 1.18
Class R3 Shares No Sales Charge   4/28/2006 -5.72 4.79 6.80 1.43
Class R6 Shares No Sales Charge   12/15/2017 -5.04 N/A 5.16 0.73
    
1. Effective March 5, 2021, the Fund replaced the subadvisor to the equity portion of the Fund and modified its principal investment strategies. The past performance in the graph and table prior to that date reflects the Fund’s prior subadvisor and principal investment strategies for the equity portion of the Fund.
2. The gross expense ratios presented reflect the Fund’s “Total Annual Fund Operating Expenses” from the most recent Prospectus, as supplemented, and may differ from other expense ratios disclosed in this report.
3. Prior to November 4, 2019, the maximum initial sales charge was 5.5%, which is reflected in the applicable average annual total return figures shown.
4. Prior to June 30, 2020, the maximum initial sales charge was 3%, which is reflected in the applicable average annual total return figures shown.
5. Class B shares are closed to all new purchases as well as additional investments by existing Class B shareholders.
The footnotes on the next page are an integral part of the table and graph and should be carefully read in conjunction with them.
5


Benchmark Performance* One
Year
Five
Years
Ten
Years
Russell 1000® Value Index1 -7.00% 7.21% 10.30%
Bloomberg U.S. Intermediate Government/Credit Bond Index2 -10.03 0.30 0.94
Balanced Composite Index3 -7.86 4.82 6.75
Russell Midcap® Value Index4 -10.18 6.49 10.42
Morningstar Allocation-50% to 70% Equity Category Average5 -14.40 4.25 6.01
    
* Returns for indices reflect no deductions for fees, expenses or taxes, except for foreign withholding taxes where applicable. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 
1. The Fund has selected the Russell 1000® Value Index as its primary benchmark. The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® Index companies with lower price-to-book ratios and lower expected growth values.
2. The Fund has selected the Bloomberg U.S. Intermediate Government/Credit Bond Index as a secondary benchmark. The Bloomberg U.S. Intermediate Government/Credit Bond Index measures the performance of U.S. dollar denominated U.S. treasuries, government related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year and less than ten years.
3. The Fund has selected the Balanced Composite Index as an additional benchmark. The Balanced Composite Index consists of the Russell Midcap® Value Index and the Bloomberg U.S. Intermediate Government/Credit Bond Index weighted 60% and 40%, respectively.
4. The Russell Midcap® Value Index has been replaced as the Fund’s primary broad-based securities market index for comparison purposes. The Russell Midcap® Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with lower price-to-book ratios and lower forecasted growth values.
5. The Morningstar Allocation – 50% to 70% Equity Category Average is representative of funds that seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 50% and 70%. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested.
The footnotes on the preceding page are an integral part of the table and graph and should be carefully read in conjunction with them.
6 MainStay Balanced Fund


Cost in Dollars of a $1,000 Investment in MainStay Balanced Fund (Unaudited)
The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from May 1, 2022 to October 31, 2022, and the impact of those costs on your investment.
Example
As a shareholder of the Fund you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from May 1, 2022 to October 31, 2022.
This example illustrates your Fund’s ongoing costs in two ways:
Actual Expenses
The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended October 31, 2022. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Fund with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Share Class Beginning
Account
Value
5/1/22
Ending Account
Value (Based
on Actual
Returns and
Expenses)
10/31/22
Expenses
Paid
During
Period1
Ending Account
Value (Based
on Hypothetical
5% Annualized
Return and
Actual Expenses)
10/31/22
Expenses
Paid
During
Period1
Net Expense
Ratio
During
Period2
Class A Shares $1,000.00 $981.30 $ 5.29 $1,019.86 $ 5.40 1.06%
Investor Class Shares $1,000.00 $979.60 $ 6.59 $1,018.55 $ 6.72 1.32%
Class B Shares $1,000.00 $976.20 $10.31 $1,014.77 $10.51 2.07%
Class C Shares $1,000.00 $976.20 $10.31 $1,014.77 $10.51 2.07%
Class I Shares $1,000.00 $982.70 $ 4.05 $1,021.12 $ 4.13 0.81%
Class R1 Shares $1,000.00 $981.80 $ 4.55 $1,020.62 $ 4.63 0.91%
Class R2 Shares $1,000.00 $980.80 $ 5.79 $1,019.36 $ 5.90 1.16%
Class R3 Shares $1,000.00 $979.40 $ 7.03 $1,018.10 $ 7.17 1.41%
Class R6 Shares $1,000.00 $982.80 $ 3.65 $1,021.53 $ 3.72 0.73%
    
1. Expenses are equal to the Fund’s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above-reported expense figures.
2. Expenses are equal to the Fund's annualized expense ratio to reflect the six-month period.
7



Portfolio Composition as of October 31, 2022 (Unaudited)
See Portfolio of Investments beginning on page 12 for specific holdings within these categories. The Fund's holdings are subject to change.


Top Ten Holdings and/or Issuers Held as of October 31, 2022 (excluding short-term investments) (Unaudited)
1. U.S. Treasury Notes, 0.125%-4.25%, due 6/30/23–8/15/32
2. iShares Intermediate Government/Credit Bond ETF
3. Vanguard Intermediate-Term Treasury ETF
4. JPMorgan Chase & Co.
5. Pfizer, Inc.
 6. Morgan Stanley
 7. ConocoPhillips
 8. Cisco Systems, Inc.
 9. Elevance Health, Inc.
10. Alphabet, Inc.
 

8 MainStay Balanced Fund


Portfolio Management Discussion and Analysis (Unaudited)
Questions answered by portfolio managers Jae S. Yoon, CFA, and Jonathan Swaney of New York Life Investment Management LLC, the Fund’s Manager; Kenneth Sommer and AJ Rzad, CFA, of NYL Investors LLC, the Fund’s fixed-income Subadvisor; and portfolio manager Adam H. Illfelder, CFA, of Wellington Management Company LLP, the Fund’s equity Subadvisor.
How did MainStay Balanced Fund perform relative to its benchmarks and peer group during the 12 months ended October 31, 2022?
For the 12 months ended October 31, 2022, Class I shares of MainStay Balanced Fund returned −5.09%, outperforming the −7.00% return of the Fund’s primary benchmark, the Russell 1000® Value Index (the "Index"); the −10.03% return of the Bloomberg U.S. Intermediate Government/Credit Bond Index, which is the Fund’s secondary benchmark; and the −7.86% return of the Balanced Composite Index, which is an additional benchmark of the Fund. During the reporting period, the Fund also outperformed the −10.18% return of the Russell Midcap® Value Index, which was the Fund's former primary benchmark. For the 12 months ended October 31, 2022, Class I shares of the Fund outperformed the −14.40% return of the Morningstar Allocation –50% to 70% Equity Category Average.1
What factors affected relative performance in the equity portion of the Fund during the reporting period?
The equity portion of the Fund outperformed the Russell 1000® Value Index primarily due to strong security selection in the financials and health care sectors, partially offset by weaker selection in materials. Sector allocation, a result of our bottom-up stock selection process, weighed on relative results. Negative allocation effect was driven by the Fund’s underweight position in energy and overweight exposure to information technology, although this was partially offset by the positive impact of underweight allocation to communication services.
During the reporting period, which sectors were the strongest positive contributors to the relative performance of the equity portion of the Fund and which sectors were particularly weak?
During the reporting period, the financials, health care and industrials sectors provided the strongest positive contributions to the Fund’s relative performance. (Contributions take weightings and total returns into account.) Over the same period, the energy sector most notably detracted.
During the reporting period, which individual stocks made the strongest positive contributions to absolute performance in the equity portion of the Fund and which stocks detracted the most?
The individual stocks that made the strongest contributions to the equity portion of the Fund’s absolute performance included oil and natural gas company ConocoPhillips and pharmaceutical company Eli Lilly. Shares of ConocoPhillips rose strongly as the oil and gas
sector benefited from higher oil prices driven by a supply/demand imbalance. The company also announced an increase in its planned 2022 return of capital from $5 billion to $15 billion. Eli Lilly shares rose as the company reported notable drug development pipeline achievements, including U.S. Food and Drug Administration approval for Tirzepatide, a type 2 diabetes treatment. In addition, a competitor reported breakthrough trial results for an Alzheimer’s drug, fueling optimism over Eli Lilly’s drug Donanemab, which also targets removing the amyloid beta protein to slow disease progression. Both positions were still held at the end of the reporting period.
The holdings that detracted most significantly from absolute performance were U.S.-based social technology company Meta Platforms and Google’s parent company Alphabet. Meta Platforms' shares fell after management released disappointing quarterly results, as slowing growth in the e-commerce market weighed on Meta Platforms' advertising revenues. More recently, investors grew increasingly concerned about the company’s plans for continued high capital investments in the Metaverse. Shares of Alphabet declined due to concerns over lower ad spending, along with a sell-off in the broader information technology sector on recession fears. Toward the end of the reporting period, the company reported weaker-than-expected third-quarter revenue, reinforcing these concerns. The Fund continues to hold a position in Alphabet, but exited its position in Meta Platforms.
What were some of the largest purchases and sales in the equity portion of the Fund during the reporting period?
During the reporting period, the Fund initiated positions in oil & gas exploration & production company Coterra Energy and semiconductor company Qualcomm. We favor Coterra’s 50/50 balance of oil and gas businesses given the more defensive profile it provides, even in more challenged markets. The company was created from the 2021 strategic merger between Cabot Oil & Gas and Cimarex Energy; these two companies have good cost structures, strong balance sheets and an attractive reserves life. In terms of valuation, the company’s stock trades cheaper than its peers, and its stated dividend policy makes the capital return profile attractive. The Fund purchased Qualcomm shares after the stock traded down on concerns over industry-wide supply-chain issues and a broader reevaluation of the technology sector. However, we believe Qualcomm is well positioned to benefit from a slower-than-expected shakeout of Apple’s attempt to insource chip production, significant modem share gain in the latest Samsung phones, and rapid growth brought by the company’s diversification into the automobile space.
 
1. See page 5 for other share class returns, which may be higher or lower than Class I share returns. See page 6 for more information on benchmark and peer group returns.
9


During the same period, the Fund eliminated its holding of Bank of America, a U.S.-based financial services company, and trimmed its position in UnitedHealth Group, a U.S.-based insurance company, in favor of more compelling risk-reward profiles elsewhere.
How did sector weightings change in the equity portion of the Fund during the reporting period?
The equity portion of the Fund’s largest increases in sector exposures relative to the Russell 1000® Value Index were to consumer staples, real estate and consumer discretionary, while the most significant reductions in sector exposure were to materials, financials and information technology.
How was the equity portion of the Fund positioned at the end of the reporting period?
As of October 31, 2022, the equity portion of the Fund held its largest overweight exposures relative to the Russell 1000® Value Index in the information technology, health care and consumer discretionary sectors. As of the same date, the equity portion of the Fund’s most significantly underweight exposures were in communication services, materials and consumer staples.
What factors affected the relative performance of the fixed-income portion of the Fund during the reporting period?
Relative to the Bloomberg U.S. Intermediate Government/Credit Bond Index (the "Bloomberg Index"), the Fund held overweight positions in asset-backed securities (“ABS”) and commercial-mortgage-backed securities (“CBMS”) throughout the reporting period. The Fund began the reporting period with overweight positions in the corporate and U.S. government agency sectors, but reduced the allocation to these sectors during the second half of the reporting period. To facilitate the reduction in corporate and U.S. government agency allocations, the Fund added to its U.S. Treasury allocation. Option-adjusted spreads2 on the Bloomberg Index widened 24 basis points during the reporting period. (A basis point is one one-hundredth of a percentage point.) The corporate sector was the worst-performing sector, followed by overweight positions in ABS and U.S. government agencies. Overweight exposure to the CMBS sector also detracted from performance. Within the credit sector, underweight exposure
to the non-corporate subcomponent was accretive to relative performance.
During the reporting period, how was the performance of the fixed-income portion of the Fund materially affected by investments in derivatives?
During the reporting period, the Fund’s use of derivatives was limited to interest-rate derivatives utilized to keep the duration3 of the fixed-income portion of the Fund in line with our target duration. The interest-rate derivatives had a slightly negative impact on performance.
What was the duration strategy of the fixed-income portion of the Fund during the reporting period?
During the reporting period, the fixed-income portion of the Fund generally maintained a duration shorter than that of the Bloomberg U.S. Intermediate Government/Credit Bond Index in the front end (0-2 years) of the yield curve,4 and a duration longer than the Index in the 10-year part of the curve. This curve positioning helped to gradually increase performance as U.S. Federal Reserve officials tightened monetary policy at the fastest pace since 2000 in order to reign in out-of-control inflation. As of October 31, 2022, the Fund’s duration was 3.89 years, compared to a duration of 3.86 years for the Index.
During the reporting period, which sectors were the strongest positive contributors to the relative performance of the fixed-income portion of the Fund and which sectors were particularly weak?
During the reporting period, the fixed-income portion of the Fund maintained overweight exposure compared to the Bloomberg U.S. Intermediate Government/Credit Bond Index in the industrials and financials subsectors, detracting from relative performance. Among industrials, performance in the automotive, health care and food & beverage subsectors were particularly weak, most notably bonds issued by General Motors Financial Company, Fresenius Medical Care and Conagra Brands. Among financials, overweight exposure to the finance company subsector had the most negative impact on relative performance, particularly holdings in AerCap Ireland Capital, Aircastle and Aviation Capital Group. Within securitized products, ABS was the worst-performing sector. Within the floating-rate subcomponent of the ABS sector,
2. An option-adjusted spread is the measurement of the spread of a fixed-income security rate and the risk-free rate of return, which is then adjusted to take into account an embedded option.
3. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.
4. The yield curve is a line that plots the yields of various securities of similar quality—typically U.S. Treasury issues—across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.
10 MainStay Balanced Fund


collateralized loan obligations (“CLOs”) rated AAA and AA detracted from relative performance.5 Within the fixed-rate subcomponent of the ABS sector, equipment and specialty finance securities detracted the most. Within the CMBS sector, overweight exposure to the non-agency subcomponent detracted from performance. Conversely, the Fund’s relatively underweight exposure to the sovereign, supranational and foreign agency subsectors was slightly accretive to relative performance.
What were some of the largest purchases and sales in the fixed-income portion of the Fund during the reporting period?
The largest additions to the fixed-income portion of the Fund during the reporting period included bonds from HSBC Holdings, Citigroup, Apple, The Goldman Sachs Group and Virginia Electric and Power Company. The largest reductions during the reporting period included positions in Highwoods Realty, Bank of America, FirstEnergy Transmission, Brighthouse Financial Global Funding and Anglo American Capital.
How did the sector weightings of the fixed-income portion of the Fund change during the reporting period?
During the reporting period, the fixed-income portion of the Fund reduced corporate credit exposure, particularly in the industrial subcomponent, during the second quarter of 2022. We anticipated the significant increase in rate volatility arising from the Federal Reserve’s removal of accommodation would likely continue into the foreseeable future. Anticipating that this environment would probably put upward pressure on credit spreads, we reduced the Fund’s allocation to the asset class to improve portfolio flexibility amid uncertainty. At the same time, we also reduced the Fund’s U.S. government agency exposure. Within the ABS sector, we reduced the Fund’s allocation to AAA and AA CLOs in the first quarter of 2022, due to their relative outperformance versus other fixed-income asset classes. Throughout the reporting period, we reduced the Fund’s allocation to corporate credit and ABS, and increased the Fund’s allocation to U.S. Treasuries.
How was the Fund positioned at the end of the reporting period?
As of October 31, 2022, the fixed-income portion of the Fund held its most significantly overweight exposure relative to the Bloomberg U.S. Intermediate Government/Credit Bond Index in ABS. Within the corporate sector, the Fund held overweight
positions in financials and utilities. The Fund also held overweight positions in CMBS and U.S. Treasuries. As of the same date, the Fund held relatively underweight positions in the sovereign, supranational, foreign agency and foreign local government sectors. 
5. An obligation rated ‘AAA’ has the highest rating assigned by Standard & Poor’s (“S&P”), and in the opinion of S&P, the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. An obligation rated ‘AA’ by S&P is deemed by S&P to differ from the highest-rated obligations only to a small degree. In the opinion of S&P, the obligor's capacity to meet its financial commitment on the obligation is very strong. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.
The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.
11


Portfolio of Investments October 31, 2022
  Principal
Amount
Value
Long-Term Bonds 30.6%
Asset-Backed Securities 1.1%
Other Asset-Backed Securities 1.1% 
AIG CLO LLC  
Series 2020-1A, Class AR                       
5.239% (3 Month LIBOR + 1.16%), due 4/15/34 (a)(b) $      500,000 $     479,798
Apidos CLO XXX  
Series XXXA, Class A2                       
5.794% (3 Month LIBOR + 1.60%), due 10/18/31 (a)(b)     600,000      564,347
ARES L CLO Ltd.  
Series 2018-50A, Class AR    
5.129% (3 Month LIBOR + 1.05%), due 1/15/32 (a)(b) 500,000 484,292
ARES XXXVIII CLO Ltd.  
Series 2015-38A, Class BR    
5.643% (3 Month LIBOR + 1.40%), due 4/20/30 (a)(b) 600,000 557,879
Carlyle Global Market Strategies CLO Ltd.  
Series 2013-3A, Class A2R    
5.479% (3 Month LIBOR + 1.40%), due 10/15/30 (a)(b) 1,100,000 1,033,152
Palmer Square CLO Ltd.  
Series 2015-2A, Class A2R2    
5.793% (3 Month LIBOR + 1.55%), due 7/20/30 (a)(b) 250,000 236,998
Regatta XIV Funding Ltd.  
Series 2018-3A, Class A    
5.548% (3 Month LIBOR + 1.19%), due 10/25/31 (a)(b) 400,000 388,280
STORE Master Funding I-VII XIV XIX XX  
Series 2021-1A, Class A1    
2.12%, due 6/20/51 (a) 306,692 251,981
THL Credit Wind River CLO Ltd.  
Series 2017-4A, Class A    
4.134% (3 Month LIBOR + 1.15%), due 11/20/30 (a)(b) 507,000 497,381
Vantage Data Centers Issuer LLC  
Series 2020-1A, Class A2    
1.645%, due 9/15/45 (a) 850,000 745,240
Total Asset-Backed Securities
(Cost $5,605,894)
  5,239,348
  Principal
Amount
Value
Corporate Bonds 8.5%
Aerospace & Defense 0.1% 
Boeing Co. (The)    
3.10%, due 5/1/26 $      145,000 $     130,930
3.25%, due 2/1/28     200,000     173,293
    304,223
Auto Manufacturers 0.1% 
General Motors Financial Co., Inc.    
6.05%, due 10/10/25     595,000     589,955
Banks 3.6% 
Banco Santander SA    
5.294%, due 8/18/27 400,000 368,880
Bank of America Corp. (c)    
1.922%, due 10/24/31 153,000 112,265
2.087%, due 6/14/29 865,000 699,964
5.015%, due 7/22/33 405,000 371,410
Citigroup, Inc. (c)    
2.014%, due 1/25/26 875,000 799,389
2.666%, due 1/29/31 225,000 178,940
5.61%, due 9/29/26 1,050,000 1,036,088
Citizens Bank NA    
6.064%, due 10/24/25 (c) 380,000 382,707
Cooperatieve Rabobank UA    
4.655% (1 Year Treasury Constant Maturity Rate + 1.75%), due 8/22/28 (a)(b) 670,000 619,729
Fifth Third Bancorp    
6.361%, due 10/27/28 (c) 300,000 301,232
Goldman Sachs Group, Inc. (The)    
2.64%, due 2/24/28 (c) 600,000 518,594
5.70%, due 11/1/24 850,000 850,057
HSBC Holdings plc (c)    
7.336%, due 11/3/26 655,000 656,813
7.39%, due 11/3/28 470,000 470,401
JPMorgan Chase & Co. (c)    
1.578%, due 4/22/27 1,010,000 868,653
2.963%, due 1/25/33 365,000 285,152
4.565%, due 6/14/30 500,000 457,981
4.912%, due 7/25/33 180,000 163,785
Lloyds Banking Group plc    
0.695% (1 Year Treasury Constant Maturity Rate + 0.55%), due 5/11/24 (b) 650,000 630,314
Mizuho Financial Group, Inc.    
5.414% (1 Year Treasury Constant Maturity Rate + 2.05%), due 9/13/28 (b) 360,000 347,104
 
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
12 MainStay Balanced Fund


  Principal
Amount
Value
Corporate Bonds (continued)
Banks (continued) 
Morgan Stanley (c)    
4.679%, due 7/17/26 $    1,314,000 $   1,273,893
5.297%, due 4/20/37     365,000      323,690
6.296%, due 10/18/28     320,000      322,878
6.342%, due 10/18/33      95,000       96,332
Nordea Bank Abp    
5.375%, due 9/22/27 (a)     675,000      650,425
PNC Financial Services Group, Inc. (The)    
6.037%, due 10/28/33 (c) 375,000 376,807
Royal Bank of Canada    
5.66%, due 10/25/24 605,000 606,117
Santander Holdings USA, Inc.    
5.807%, due 9/9/26 (c) 300,000 290,543
Societe Generale SA    
1.792% (1 Year Treasury Constant Maturity Rate + 1.00%), due 6/9/27 (a)(b) 325,000 266,204
Standard Chartered plc (a)(b)    
0.991% (1 Year Treasury Constant Maturity Rate + 0.78%), due 1/12/25 300,000 278,887
2.608% (1 Year Treasury Constant Maturity Rate + 1.18%), due 1/12/28 275,000 227,073
State Street Corp.    
4.164%, due 8/4/33 (c) 195,000 172,650
Swedbank AB    
5.337%, due 9/20/27 (a) 610,000 580,506
U.S. Bancorp    
5.85%, due 10/21/33 (c) 335,000 333,870
UBS Group AG    
1.364% (1 Year Treasury Constant Maturity Rate + 1.08%), due 1/30/27 (a)(b) 375,000 313,584
Wells Fargo & Co.    
4.54%, due 8/15/26 (c) 590,000 567,566
    16,800,483
Biotechnology 0.1% 
Amgen, Inc.    
4.05%, due 8/18/29 590,000 544,623
Commercial Services 0.1% 
Global Payments, Inc.    
2.15%, due 1/15/27 400,000 341,368
  Principal
Amount
Value
 
Commercial Services (continued) 
PayPal Holdings, Inc.    
3.90%, due 6/1/27 $      340,000 $     322,983
    664,351
Computers 0.2% 
Apple, Inc.    
1.65%, due 5/11/30     391,000      312,793
1.70%, due 8/5/31     595,000     461,438
    774,231
Cosmetics & Personal Care 0.1% 
Unilever Capital Corp.    
1.75%, due 8/12/31 265,000 201,848
Diversified Financial Services 1.1% 
AerCap Ireland Capital DAC    
3.00%, due 10/29/28 550,000 444,329
Air Lease Corp.    
0.70%, due 2/15/24 1,425,000 1,330,786
Aircastle Ltd.    
2.85%, due 1/26/28 (a) 291,000 219,626
Antares Holdings LP    
3.95%, due 7/15/26 (a) 750,000 638,215
Blackstone Holdings Finance Co. LLC (a)    
1.625%, due 8/5/28 285,000 228,769
5.90%, due 11/3/27 605,000 603,760
Capital One Financial Corp.    
4.985%, due 7/24/26 (c) 610,000 586,097
Intercontinental Exchange, Inc.    
4.35%, due 6/15/29 720,000 681,725
Thirax 1 LLC    
0.968%, due 1/14/33 302,016 245,582
    4,978,889
Electric 0.8% 
AEP Texas, Inc.    
4.70%, due 5/15/32 160,000 145,643
Appalachian Power Co.    
Series BB    
4.50%, due 8/1/32 160,000 142,921
Commonwealth Edison Co.    
3.10%, due 11/1/24 290,000 277,388
Duke Energy Carolinas LLC    
2.85%, due 3/15/32 410,000 335,048
Duke Energy Corp.    
4.30%, due 3/15/28 300,000 281,991
4.50%, due 8/15/32 140,000 126,189
Enel Finance America LLC    
7.10%, due 10/14/27 (a) 420,000 418,772
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
13


Portfolio of Investments October 31, 2022 (continued)
  Principal
Amount
Value
Corporate Bonds (continued)
Electric (continued) 
Entergy Arkansas LLC    
3.70%, due 6/1/24 $      665,000 $     653,295
Pacific Gas and Electric Co.    
5.45%, due 6/15/27     400,000      377,168
Southern Co. (The)    
5.15%, due 10/6/25     220,000      218,992
5.70%, due 10/15/32     100,000       98,885
Virginia Electric and Power Co.    
Series B    
3.75%, due 5/15/27 750,000 703,426
    3,779,718
Entertainment 0.0%  ‡
Warnermedia Holdings, Inc.    
4.054%, due 3/15/29 (a) 224,000 190,321
Environmental Control 0.1% 
Waste Management, Inc.    
4.15%, due 4/15/32 410,000 377,009
Food 0.1% 
Nestle Holdings, Inc.    
4.25%, due 10/1/29 (a) 440,000 421,155
Gas 0.1% 
CenterPoint Energy Resources Corp.    
4.40%, due 7/1/32 415,000 382,137
Healthcare-Services 0.0%  ‡
HCA, Inc.    
3.625%, due 3/15/32 (a) 230,000 186,481
Insurance 0.1% 
Corebridge Financial, Inc.    
3.85%, due 4/5/29 (a) 325,000 283,919
Principal Life Global Funding II    
1.25%, due 8/16/26 (a) 425,000 361,035
    644,954
Internet 0.1% 
Amazon.com, Inc.    
3.60%, due 4/13/32 370,000 331,278
Meta Platforms, Inc.    
3.85%, due 8/15/32 (a) 290,000 246,745
    578,023
  Principal
Amount
Value
 
Investment Companies 0.1% 
Blackstone Private Credit Fund    
7.05%, due 9/29/25 (a) $      420,000 $     416,330
Prospect Capital Corp.    
3.437%, due 10/15/28     292,000     212,900
    629,230
Media 0.0%  ‡
Charter Communications Operating LLC    
2.25%, due 1/15/29     130,000     102,588
Oil & Gas 0.1% 
Phillips 66 Co.    
3.15%, due 12/15/29 (a) 535,000 451,925
Pharmaceuticals 0.0%  ‡
AbbVie, Inc.    
4.25%, due 11/14/28 80,000 75,306
Merck & Co., Inc.    
2.15%, due 12/10/31 150,000 119,070
    194,376
Pipelines 0.2% 
MPLX LP    
4.95%, due 9/1/32 178,000 161,084
ONEOK, Inc.    
5.85%, due 1/15/26 580,000 576,773
    737,857
Real Estate Investment Trusts 0.2% 
CubeSmart LP    
2.25%, due 12/15/28 340,000 272,837
Realty Income Corp.    
3.95%, due 8/15/27 504,000 467,696
Simon Property Group LP    
1.75%, due 2/1/28 425,000 347,879
    1,088,412
Retail 0.2% 
Home Depot, Inc. (The)    
3.25%, due 4/15/32 340,000 293,400
Lowe's Cos., Inc.    
5.00%, due 4/15/33 205,000 193,425
Walmart, Inc.    
5.25%, due 9/1/35 305,000 310,820
    797,645
Semiconductors 0.3% 
NVIDIA Corp.    
1.55%, due 6/15/28 147,000 121,396
 
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
14 MainStay Balanced Fund


  Principal
Amount
Value
Corporate Bonds (continued)
Semiconductors (continued) 
NXP BV    
4.30%, due 6/18/29 $      255,000 $     229,461
QUALCOMM, Inc.    
2.15%, due 5/20/30     490,000      401,561
Texas Instruments, Inc.    
3.65%, due 8/16/32     590,000     527,492
    1,279,910
Software 0.1% 
Microsoft Corp.    
2.525%, due 6/1/50 220,000 138,012
Oracle Corp.    
2.30%, due 3/25/28 215,000 179,851
2.875%, due 3/25/31 115,000 90,633
    408,496
Telecommunications 0.5% 
AT&T, Inc.    
4.35%, due 3/1/29 955,000 887,671
T-Mobile US, Inc.    
2.625%, due 2/15/29 205,000 169,460
3.50%, due 4/15/31 415,000 348,935
Verizon Communications, Inc.    
2.10%, due 3/22/28 340,000 285,730
3.376%, due 2/15/25 8,000 7,722
4.016%, due 12/3/29 881,000 794,041
    2,493,559
Transportation 0.1% 
FedEx Corp.    
2.40%, due 5/15/31 210,000 163,111
Union Pacific Corp.    
4.50%, due 1/20/33 200,000 188,580
    351,691
Total Corporate Bonds
(Cost $43,130,418)
  39,954,090
Mortgage-Backed Security 0.2%
Commercial Mortgage Loans (Collateralized Mortgage Obligation) 0.2% 
Citigroup Commercial Mortgage Trust  
Series 2020-GC46, Class A5    
2.717%, due 2/15/53 1,000,000 822,081
Total Mortgage-Backed Security
(Cost $1,028,350)
  822,081
  Principal
Amount
Value
U.S. Government & Federal Agencies 20.8%
Federal Home Loan Mortgage Corporation (Mortgage Pass-Through Securities) 0.6% 
FFCB    
2.03%, due 1/21/28 $    1,200,000 $   1,070,521
4.37%, due 5/17/32     450,000      412,470
FHLB    
4.00%, due 5/26/27   1,325,000   1,265,344
    2,748,335
United States Treasury Bonds 0.0%  ‡
U.S. Treasury Bonds    
3.00%, due 8/15/52 300,000 240,235
United States Treasury Notes 20.2% 
U.S. Treasury Notes    
0.125%, due 10/15/23 800,000 766,188
2.625%, due 6/30/23 6,800,000 6,719,781
2.75%, due 8/15/32 9,455,000 8,460,748
3.875%, due 9/30/29 13,970,000 13,721,159
4.125%, due 9/30/27 15,980,000 15,892,609
4.25%, due 9/30/24 27,685,000 27,544,412
4.25%, due 10/15/25 21,710,000 21,594,666
    94,699,563
Total U.S. Government & Federal Agencies
(Cost $99,477,010)
  97,688,133
Total Long-Term Bonds
(Cost $149,241,672)
  143,703,652
 
  Shares  
Common Stocks 58.5%
Aerospace & Defense 2.8% 
General Dynamics Corp. 15,081 3,767,234
L3Harris Technologies, Inc. 18,846 4,644,974
Raytheon Technologies Corp. 50,815 4,818,278
    13,230,486
Auto Components 0.7% 
Gentex Corp. 127,652 3,381,502
Banks 4.2% 
JPMorgan Chase & Co. 70,070 8,820,412
M&T Bank Corp. 26,268 4,422,743
PNC Financial Services Group, Inc. (The) 21,237 3,436,784
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
15


Portfolio of Investments October 31, 2022 (continued)
  Shares Value
Common Stocks (continued)
Banks (continued) 
Truist Financial Corp.     69,469 $   3,111,516
    19,791,455
Beverages 0.8% 
Keurig Dr Pepper, Inc.     91,110   3,538,712
Building Products 1.6% 
Fortune Brands Home & Security, Inc.     45,812    2,763,380
Johnson Controls International plc     81,032   4,686,891
    7,450,271
Capital Markets 4.1% 
Ares Management Corp.     55,696    4,223,428
Blackstone, Inc.     32,520    2,963,873
LPL Financial Holdings, Inc.     11,051    2,825,188
Morgan Stanley     70,351    5,780,741
Raymond James Financial, Inc.     29,313   3,463,038
    19,256,268
Chemicals 0.6% 
Axalta Coating Systems Ltd. (d) 120,576 2,811,832
Communications Equipment 2.2% 
Cisco Systems, Inc. 149,371 6,785,924
F5, Inc. (d) 25,824 3,690,508
    10,476,432
Containers & Packaging 0.6% 
Sealed Air Corp. 60,392 2,875,867
Diversified Consumer Services 0.6% 
H&R Block, Inc. 71,955 2,960,948
Electric Utilities 1.6% 
Duke Energy Corp. 39,190 3,651,724
Exelon Corp. 92,515 3,570,154
    7,221,878
Electrical Equipment 0.8% 
Emerson Electric Co. 40,147 3,476,730
Electronic Equipment, Instruments & Components 1.0% 
Corning, Inc. 136,864 4,402,915
Entertainment 1.0% 
Electronic Arts, Inc. 35,374 4,455,709
  Shares Value
 
Equity Real Estate Investment Trusts 2.3% 
Gaming and Leisure Properties, Inc.     83,391 $   4,179,557
Host Hotels & Resorts, Inc.    174,375    3,292,200
Welltower, Inc.     53,787   3,283,158
    10,754,915
Food Products 1.8% 
Archer-Daniels-Midland Co.     45,395    4,402,407
Mondelez International, Inc., Class A     67,818   4,169,451
    8,571,858
Gas Utilities 0.7% 
Atmos Energy Corp.     31,495   3,355,792
Health Care Equipment & Supplies 2.7% 
Becton Dickinson and Co.     16,417    3,873,919
Boston Scientific Corp. (d)     95,281    4,107,564
Medtronic plc     51,637   4,509,976
    12,491,459
Health Care Providers & Services 3.1% 
Centene Corp. (d) 50,879 4,331,329
Elevance Health, Inc. 10,655 5,825,834
UnitedHealth Group, Inc. 8,223 4,564,999
    14,722,162
Household Durables 0.6% 
Lennar Corp., Class A 35,895 2,896,727
Insurance 2.8% 
Chubb Ltd. 23,298 5,006,507
MetLife, Inc. 74,823 5,477,792
Progressive Corp. (The) 21,877 2,809,007
    13,293,306
Interactive Media & Services 1.2% 
Alphabet, Inc., Class C (d) 60,853 5,760,345
IT Services 1.4% 
Amdocs Ltd. 39,436 3,403,721
Global Payments, Inc. 28,810 3,291,831
    6,695,552
Machinery 0.8% 
Middleby Corp. (The) (d) 27,138 3,795,521
Media 0.6% 
Omnicom Group, Inc. 38,806 2,823,137
 
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
16 MainStay Balanced Fund


  Shares Value
Common Stocks (continued)
Multi-Utilities 0.9% 
Sempra Energy     26,600 $   4,015,004
Oil, Gas & Consumable Fuels 4.5% 
ConocoPhillips     57,357    7,232,144
Coterra Energy, Inc.    150,011    4,669,842
EOG Resources, Inc.     36,509    4,984,209
Phillips 66     41,497   4,327,722
    21,213,917
Personal Products 0.7% 
Unilever plc, Sponsored ADR (e)     75,561   3,438,781
Pharmaceuticals 5.4% 
AstraZeneca plc, Sponsored ADR     57,411    3,376,341
Eli Lilly and Co.     14,605    5,288,324
Merck & Co., Inc.     55,681    5,634,917
Pfizer, Inc.    173,229    8,063,809
Roche Holding AG      8,780   2,915,853
    25,279,244
Real Estate Management & Development 0.7% 
CBRE Group, Inc., Class A (d) 44,318 3,143,919
Road & Rail 0.6% 
Knight-Swift Transportation Holdings, Inc. 61,169 2,937,947
Semiconductors & Semiconductor Equipment 2.6% 
Analog Devices, Inc. 36,060 5,142,877
Micron Technology, Inc. 56,664 3,065,523
QUALCOMM, Inc. 33,853 3,983,144
    12,191,544
Specialty Retail 2.5% 
Home Depot, Inc. (The) 17,362 5,141,409
TJX Cos., Inc. (The) 50,890 3,669,169
Victoria's Secret & Co. (d) 74,422 2,798,267
    11,608,845
Total Common Stocks
(Cost $246,840,946)
  274,320,980
  Shares   Value
Exchange-Traded Funds 8.2%
iShares Intermediate Government/Credit Bond ETF (e)    214,445   $  21,699,689
Vanguard Intermediate-Term Treasury ETF    290,925    16,812,556
Total Exchange-Traded Funds
(Cost $39,128,082)
    38,512,245
Short-Term Investments 2.6%
Affiliated Investment Company 2.3% 
MainStay U.S. Government Liquidity Fund, 2.905% (f) 10,984,933    10,984,933
Unaffiliated Investment Company 0.3% 
Invesco Government & Agency Portfolio, 3.163% (f)(g)  1,314,407     1,314,407
Total Short-Term Investments
(Cost $12,299,340)
    12,299,340
Total Investments
(Cost $447,510,040)
99.9%   468,836,217
Other Assets, Less Liabilities 0.1   276,220
Net Assets 100.0%   $ 469,112,437
    
Percentages indicated are based on Fund net assets.
Less than one-tenth of a percent.
(a) May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended.
(b) Floating rate—Rate shown was the rate in effect as of October 31, 2022.
(c) Fixed to floating rate—Rate shown was the rate in effect as of October 31, 2022.
(d) Non-income producing security.
(e) All or a portion of this security was held on loan. As of October 31, 2022, the aggregate market value of securities on loan was $1,278,530. The Fund received cash collateral with a value of $1,314,407. (See Note 2(H))
(f) Current yield as of October 31, 2022.
(g) Represents a security purchased with cash collateral received for securities on loan.
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
17


Portfolio of Investments October 31, 2022 (continued)
Investments in Affiliates (in 000's)
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Investment Companies Value,
Beginning
of Year
Purchases
at Cost
Proceeds
from
Sales
Net
Realized
Gain/(Loss)
on Sales
Change in
Unrealized
Appreciation/
(Depreciation)
Value,
End of
Year
Dividend
Income
Other
Distributions
Shares
End of
Year
MainStay U.S. Government Liquidity Fund $ 3,803 $ 103,142 $ (95,960) $ — $ — $ 10,985 $ 43 $ — 10,985
Futures Contracts
As of October 31, 2022, the Fund held the following futures contracts1:
Type Number of
Contracts
Expiration
Date
Value at
Trade Date
Current
Notional
Amount
Unrealized
Appreciation
(Depreciation)2
Long Contracts          
U.S. Treasury 2 Year Notes 7 December 2022  $  1,433,306  $  1,430,680    $  (2,626)
U.S. Treasury 5 Year Notes 75 December 2022  8,245,729  7,994,531  (251,198)
U.S. Treasury 10 Year Notes 41 December 2022  4,565,697  4,534,344   (31,353)
U.S. Treasury Ultra Bonds 2 December 2022    257,790    255,312    (2,478)
Total Long Contracts         (287,655)
Short Contracts          
U.S. Treasury 10 Year Ultra Bonds (32) December 2022  (3,713,618)  (3,711,500)    2,118
U.S. Treasury Long Bonds (6) December 2022    (776,895)    (723,000)   53,895
Total Short Contracts         56,013
Net Unrealized Depreciation         $ (231,642)
    
1. As of October 31, 2022, cash in the amount of $142,830 was on deposit with a broker or futures commission merchant for futures transactions.
2. Represents the difference between the value of the contracts at the time they were opened and the value as of October 31, 2022.
    
Abbreviation(s):
ADR—American Depositary Receipt
CLO—Collateralized Loan Obligation
ETF—Exchange-Traded Fund
FFCB—Federal Farm Credit Bank
FHLB—Federal Home Loan Bank
LIBOR—London Interbank Offered Rate
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
18 MainStay Balanced Fund


The following is a summary of the fair valuations according to the inputs used as of October 31, 2022, for valuing the Fund’s assets and liabilities:
Description Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
  Total
Asset Valuation Inputs              
Investments in Securities (a)              
Long-Term Bonds              
Asset-Backed Securities           $  —      $  5,239,348   $ —      $  5,239,348
Corporate Bonds           —     39,954,090       39,954,090
Mortgage-Backed Security           —        822,081          822,081
U.S. Government & Federal Agencies           —     97,688,133       97,688,133
Total Long-Term Bonds   143,703,652     143,703,652
Common Stocks  274,320,980             —      274,320,980
Exchange-Traded Funds   38,512,245             —       38,512,245
Short-Term Investments              
Affiliated Investment Company   10,984,933             —       10,984,933
Unaffiliated Investment Company    1,314,407             —        1,314,407
Total Short-Term Investments 12,299,340       12,299,340
Total Investments in Securities 325,132,565   143,703,652     468,836,217
Other Financial Instruments              
Futures Contracts (b)       56,013             —           56,013
Total Investments in Securities and Other Financial Instruments $  325,188,578   $  143,703,652   $ —   $ 468,892,230
Liability Valuation Inputs              
Other Financial Instruments              
Futures Contracts (b)      $  (287,655)             $  —   $ —        $  (287,655)
    
(a) For a complete listing of investments and their industries, see the Portfolio of Investments.
(b) The value listed for these securities reflects unrealized appreciation (depreciation) as shown on the Portfolio of Investments.
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
19


Statement of Assets and Liabilities as of October 31, 2022
Assets
Investment in unaffiliated securities, at value
(identified cost $436,525,107) including securities on loan of $1,278,530
$457,851,284
Investment in affiliated investment companies, at value
(identified cost $10,984,933)
10,984,933
Cash 3,555,003
Cash collateral on deposit at broker for futures contracts 142,830
Receivables:  
Investment securities sold 2,470,807
Dividends and interest 927,450
Fund shares sold 319,132
Securities lending 2,784
Other assets 52,571
Total assets 476,306,794
Liabilities
Cash collateral received for securities on loan 1,314,407
Payables:  
Investment securities purchased 5,078,427
Manager (See Note 3) 251,181
Fund shares redeemed 222,526
Transfer agent (See Note 3) 109,531
NYLIFE Distributors (See Note 3) 99,697
Shareholder communication 46,491
Variation margin on futures contracts 41,362
Professional fees 12,630
Custodian 11,754
Accrued expenses 6,351
Total liabilities 7,194,357
Net assets $469,112,437
Composition of Net Assets
Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized $ 16,636
Additional paid-in-capital 449,183,296
  449,199,932
Total distributable earnings (loss) 19,912,505
Net assets $469,112,437
Class A  
Net assets applicable to outstanding shares $345,376,498
Shares of beneficial interest outstanding 12,244,631
Net asset value per share outstanding $ 28.21
Maximum sales charge (3.00% of offering price) 0.87
Maximum offering price per share outstanding $ 29.08
Investor Class  
Net assets applicable to outstanding shares $ 40,341,312
Shares of beneficial interest outstanding 1,430,337
Net asset value per share outstanding $ 28.20
Maximum sales charge (2.50% of offering price) 0.72
Maximum offering price per share outstanding $ 28.92
Class B  
Net assets applicable to outstanding shares $ 5,798,044
Shares of beneficial interest outstanding 208,485
Net asset value and offering price per share outstanding $ 27.81
Class C  
Net assets applicable to outstanding shares $ 17,020,350
Shares of beneficial interest outstanding 612,263
Net asset value and offering price per share outstanding $ 27.80
Class I  
Net assets applicable to outstanding shares $ 57,771,525
Shares of beneficial interest outstanding 2,040,864
Net asset value and offering price per share outstanding $ 28.31
Class R1  
Net assets applicable to outstanding shares $ 176,315
Shares of beneficial interest outstanding 6,240
Net asset value and offering price per share outstanding $ 28.26
Class R2  
Net assets applicable to outstanding shares $ 650,782
Shares of beneficial interest outstanding 23,027
Net asset value and offering price per share outstanding $ 28.26
Class R3  
Net assets applicable to outstanding shares $ 1,924,655
Shares of beneficial interest outstanding 68,437
Net asset value and offering price per share outstanding $ 28.12
Class R6  
Net assets applicable to outstanding shares $ 52,956
Shares of beneficial interest outstanding 1,868
Net asset value and offering price per share outstanding $ 28.35
 
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
20 MainStay Balanced Fund


Statement of Operations for the year ended October 31, 2022
Investment Income (Loss)
Income  
Dividends-unaffiliated (net of foreign tax withholding of $14,177) $ 7,191,645
Interest 3,772,278
Dividends-affiliated 43,177
Securities lending, net 14,558
Total income 11,021,658
Expenses  
Manager (See Note 3) 3,144,803
Distribution/Service—Class A (See Note 3) 873,343
Distribution/Service—Investor Class (See Note 3) 107,426
Distribution/Service—Class B (See Note 3) 76,108
Distribution/Service—Class C (See Note 3) 208,625
Distribution/Service—Class R2 (See Note 3) 1,942
Distribution/Service—Class R3 (See Note 3) 10,169
Transfer agent (See Note 3) 623,658
Registration 119,613
Professional fees 91,604
Shareholder communication 54,828
Custodian 47,684
Trustees 9,585
Shareholder service (See Note 3) 2,929
Miscellaneous 28,421
Total expenses before waiver/reimbursement 5,400,738
Expense waiver/reimbursement from Manager (See Note 3) (12,455)
Net expenses 5,388,283
Net investment income (loss) 5,633,375
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:  
Unaffiliated investment transactions (1,194,212)
Futures transactions 35,246
Foreign currency transactions 1,452
Net realized gain (loss) (1,157,514)
Net change in unrealized appreciation (depreciation) on:  
Unaffiliated investments (31,784,110)
Futures contracts (111,730)
Translation of other assets and liabilities in foreign currencies (1,478)
Net change in unrealized appreciation (depreciation) (31,897,318)
Net realized and unrealized gain (loss) (33,054,832)
Net increase (decrease) in net assets resulting from operations $(27,421,457)
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
21


Statements of Changes in Net Assets
for the years ended October 31, 2022 and October 31, 2021
  2022 2021
Increase (Decrease) in Net Assets
Operations:    
Net investment income (loss) $ 5,633,375 $ 3,863,884
Net realized gain (loss) (1,157,514) 110,195,771
Net change in unrealized appreciation (depreciation) (31,897,318) 13,015,252
Net increase (decrease) in net assets resulting from operations (27,421,457) 127,074,907
Distributions to shareholders:    
Class A (68,171,865) (5,189,504)
Investor Class (9,028,686) (785,979)
Class B (1,805,691) (135,897)
Class C (4,789,167) (390,180)
Class I (12,813,121) (2,749,887)
Class R1 (22,059) (1,742)
Class R2 (194,564) (32,212)
Class R3 (443,499) (35,197)
Class R6 (12,112) (1,167)
Total distributions to shareholders (97,280,764) (9,321,765)
Capital share transactions:    
Net proceeds from sales of shares 85,070,719 70,944,777
Net asset value of shares issued to shareholders in reinvestment of distributions 95,556,872 9,150,987
Cost of shares redeemed (88,508,384) (193,633,246)
Increase (decrease) in net assets derived from capital share transactions 92,119,207 (113,537,482)
Net increase (decrease) in net assets (32,583,014) 4,215,660
Net Assets
Beginning of year 501,695,451 497,479,791
End of year $469,112,437 $ 501,695,451
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
22 MainStay Balanced Fund


Financial Highlights selected per share data and ratios
  Year Ended October 31,
Class A 2022   2021   2020   2019   2018
Net asset value at beginning of year $ 37.09   $ 29.72   $ 30.98   $ 31.49   $ 33.63
Net investment income (loss) (a) 0.36   0.27   0.36   0.44   0.44
Net realized and unrealized gain (loss) (2.03)   7.70   (0.54)   1.58   (0.23)
Total from investment operations (1.67)   7.97   (0.18)   2.02   0.21
Less distributions:                  
From net investment income (0.33)   (0.28)   (0.41)   (0.46)   (0.48)
From net realized gain on investments (6.88)   (0.32)   (0.67)   (2.07)   (1.87)
Total distributions (7.21)   (0.60)   (1.08)   (2.53)   (2.35)
Net asset value at end of year $ 28.21   $ 37.09   $ 29.72   $ 30.98   $ 31.49
Total investment return (b) (5.35)%   27.03%   (0.53)%   7.07%   0.48%(c)
Ratios (to average net assets)/Supplemental Data:                  
Net investment income (loss) 1.22%   0.78%   1.21%   1.47%   1.35%
Net expenses (d) 1.06%   1.08%   1.13%   1.12%   1.10%
Portfolio turnover rate 290%   182%   217%   194%   200%
Net assets at end of year (in 000’s) $ 345,376   $ 343,224   $ 252,574   $ 279,636   $ 265,314
    
(a) Per share data based on average shares outstanding during the year.
(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized.
(c) Total investment return may reflect adjustments to conform to generally accepted accounting principles.
(d) In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios.
    
  Year Ended October 31,
Investor Class 2022   2021   2020   2019   2018
Net asset value at beginning of year $ 37.10   $ 29.75   $ 31.01   $ 31.51   $ 33.65
Net investment income (loss) (a) 0.28   0.19   0.29   0.38   0.38
Net realized and unrealized gain (loss) (2.03)   7.69   (0.55)   1.58   (0.23)
Total from investment operations (1.75)   7.88   (0.26)   1.96   0.15
Less distributions:                  
From net investment income (0.27)   (0.21)   (0.33)   (0.39)   (0.42)
From net realized gain on investments (6.88)   (0.32)   (0.67)   (2.07)   (1.87)
Total distributions (7.15)   (0.53)   (1.00)   (2.46)   (2.29)
Net asset value at end of year $ 28.20   $ 37.10   $ 29.75   $ 31.01   $ 31.51
Total investment return (b) (5.62)%   26.68%   (0.75)%   6.79%   0.29%
Ratios (to average net assets)/Supplemental Data:                  
Net investment income (loss) 0.95%   0.54%   0.97%   1.26%   1.18%
Net expenses (c) 1.32%   1.35%   1.38%   1.33%   1.28%
Expenses (before waiver/reimbursement) (c) 1.34%   1.37%   1.40%   1.35%   1.30%
Portfolio turnover rate 290%   182%   217%   194%   200%
Net assets at end of year (in 000's) $ 40,341   $ 46,706   $ 47,358   $ 53,006   $ 51,128
    
(a) Per share data based on average shares outstanding during the year.
(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized.
(c) In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios.
    
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
23


Financial Highlights selected per share data and ratios
  Year Ended October 31,
Class B 2022   2021   2020   2019   2018
Net asset value at beginning of year $ 36.72   $ 29.56   $ 30.82   $ 31.35   $ 33.48
Net investment income (loss) (a) 0.05   (0.07)   0.07   0.16   0.14
Net realized and unrealized gain (loss) (1.99)   7.63   (0.54)   1.54   (0.23)
Total from investment operations (1.94)   7.56   (0.47)   1.70   (0.09)
Less distributions:                  
From net investment income (0.09)   (0.08)   (0.12)   (0.16)   (0.17)
From net realized gain on investments (6.88)   (0.32)   (0.67)   (2.07)   (1.87)
Total distributions (6.97)   (0.40)   (0.79)   (2.23)   (2.04)
Net asset value at end of year $ 27.81   $ 36.72   $ 29.56   $ 30.82   $ 31.35
Total investment return (b) (6.30)%   25.74%   (1.51)%   6.00%   (0.45)%(c)
Ratios (to average net assets)/Supplemental Data:                  
Net investment income (loss) 0.18%   (0.21)%   0.23%   0.54%   0.43%
Net expenses (d) 2.07%   2.10%   2.13%   2.08%   2.03%
Expenses (before waiver/reimbursement) (d) 2.09%   2.12%   2.15%   2.10%   2.05%
Portfolio turnover rate 290%   182%   217%   194%   200%
Net assets at end of year (in 000’s) $ 5,798   $ 9,645   $ 10,671   $ 15,049   $ 18,795
    
(a) Per share data based on average shares outstanding during the year.
(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized.
(c) Total investment return may reflect adjustments to conform to generally accepted accounting principles.
(d) In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios.
    
  Year Ended October 31,
Class C 2022   2021   2020   2019   2018
Net asset value at beginning of year $ 36.71   $ 29.55   $ 30.81   $ 31.33   $ 33.46
Net investment income (loss) (a) 0.06   (0.07)   0.07   0.18   0.14
Net realized and unrealized gain (loss) (2.00)   7.63   (0.54)   1.53   (0.23)
Total from investment operations (1.94)   7.56   (0.47)   1.71   (0.09)
Less distributions:                  
From net investment income (0.09)   (0.08)   (0.12)   (0.16)   (0.17)
From net realized gain on investments (6.88)   (0.32)   (0.67)   (2.07)   (1.87)
Total distributions (6.97)   (0.40)   (0.79)   (2.23)   (2.04)
Net asset value at end of year $ 27.80   $ 36.71   $ 29.55   $ 30.81   $ 31.33
Total investment return (b) (6.30)%   25.75%   (1.51)%   6.03%   (0.45)%(c)
Ratios (to average net assets)/Supplemental Data:                  
Net investment income (loss) 0.19%   (0.20)%   0.23%   0.59%   0.43%
Net expenses (d) 2.07%   2.10%   2.13%   2.08%   2.03%
Expenses (before waiver/reimbursement) (d) 2.09%   2.12%   2.15%   2.10%   2.05%
Portfolio turnover rate 290%   182%   217%   194%   200%
Net assets at end of year (in 000’s) $ 17,020   $ 26,050   $ 30,769   $ 45,437   $ 76,233
    
(a) Per share data based on average shares outstanding during the year.
(b) Total investment return is calculated exclusive of sales charges and assumes the reinvestment of dividends and distributions. For periods of less than one year, total return is not annualized.
(c) Total investment return may reflect adjustments to conform to generally accepted accounting principles.
(d) In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which it invests. Such indirect expenses are not included in the above expense ratios.
    
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.
24 MainStay Balanced Fund


Financial Highlights selected per share data and ratios
  Year Ended October 31,
Class I 2022   2021   2020   2019   2018
Net asset value at beginning of year $ 37.19   $ 29.80   $ 31.06   $ 31.56   $ 33.71
Net investment income (loss) (a) 0.44   0.37   0.44   0.53   0.52
Net realized and unrealized gain (loss) (2.03)   7.70   (0.55)   1.57   (0.24)
Total from investment operations (1.59)   8.07   (0.11)   2.10   0.28
Less distributions:                  
From net investment income (0.41)   (0.36)   (0.48)   (0.53)   (0.56)
From net realized gain on investments (6.88)   (0.32)   (0.67)   (2.07)   (1.87)
Total distributions (7.29)   (0.68)   (1.15)   (2.60)   (2.43)
Net asset value at end of year $ 28.31   $ 37.19   $ 29.80   $ 31.06   $ 31.56
Total investment return (b) (5.09)%   27.32%   (0.27)%   7.32%   0.70%
Ratios (to average net assets)/Supplemental Data:                  
Net investment income (loss) 1.47%   1.08%   1.47%   1.75%   1.61%
Net expenses (c) 0.81%   0.84%   0.88%   0.87%   0.85%
Portfolio turnover rate 290%   182%   217%   194%   200%
Net assets at end of year (in 000’s) $ 57,772   $ 72,481   $ 152,036