In this environment of increased bond market volatility, NYLI MacKay Short Term Muni Fund (MSTIX) seeks to provide several key benefits: competitive tax-equivalent yields compared to cash-equivalent investments, volatility management to help cushion market fluctuations, and the potential to manage reinvestment risk.
MSTIX targets an average maturity of 3 years or less, a 'sweet spot' for short-term muni investment that locks in yields longer than ultrashort/money market funds, mitigates reinvestment risk from falling rates, and offers a 1.3 yield-per-duration risk ratio, surpassing longer maturities.
Source: Bloomberg, Barclays, as of 12/31/24. The Yield per Duration Ratio measures how much yield a bond provides for each unit of interest rate risk. Yield per Duration is calculated by Yield to Worst (YTW) / Duration to Worst (DTW). Yield to Worst (YTW) is the lowest possible yield if the bond is called or matures early. Duration to Worst (DTW) is a measure of a bond’s price sensitivity to interest rate changes, assuming the worst-case scenario (i.e., the bond is called or matures early). Navy represents Bloomberg 3-Year Municipal Index, Orange represents Bloomberg 5-Year Municipal Index, and Steel Blue represents Bloomberg 7-Year Municipal Index.
To access the most up-to-date information about a specific fund, simply click on the fund’s name. This will take you to a detailed page that includes the prospectus, the fund’s investment objectives, its performance history, key risk factors, Morningstar ratings, and other essential details. Please note that the returns shown are based on past performance. Past performance is not indicative of future results. The current performance of the fund may be higher or lower than the performance data shown. The return on investment and the principal value of the fund will vary, and when shares are sold, they may be worth more or less than their original cost. For the most recent month-end performance data, please visit New York Life Investments.com
The yields currently available from short-term muni funds like MSTIX are already competitive versus cash-equivalents, on a tax-equivalent basis.
Source: Morningstar, 12/31/24. Yield shown is Distribution Yield. Distribution yield is the annualized rate of income distributed to investors, expressed as a percentage of the fund's net asset value (NAV). T Bills represented by Bloomberg U.S. Treasury Bills Index, Taxable Money Market represented by Bloomberg U.S. Taxable Money Market Index. Past performance is no guarantee of future results, which will vary. It is not possible to invest directly in an index. Tax rates are subject to change. Treasury Securities are backed by the full faith and credit of the United States government as to payment of principal and interest if held to maturity. Assumes 40.8% federal tax rate and 100% of income is federally tax-exempt. For illustrative purposes only.
As a short-maturity strategy, MSTIX’s daily NAV fluctuations have historically been modest.
Source: New York Life Investments, Morningstar as of 12/31/24. Numbers may not sum-up to 100% due to rounding.
For taxable accounts, short muni solutions like MSTIX seek to offer improved after-tax total returns, compared to taxable short-term bond funds.
Source: New York Life Investments, Morningstar as of 12/31/24. Figures reference Morningstar’s Post-Tax Return (Pre-Liquidation) data. Past performance is no guarantee of future results, which will vary. It is not possible to invest directly in an index.
About Risk - MSTIX:
The Fund is not a money market fund and does not attempt to maintain a stable NAV. The Fund's net asset value per share will fluctuate. There can be no guarantee that the Fund will achieve or maintain any particular level of yield. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. These risks may be greater for emerging markets. The principal risk of mortgage dollar rolls is that the security the Fund receives at the end of the transaction may be worth less than the security the Fund sold to the same counterparty at the beginning of the transaction. The principal risk of mortgage-related and asset-backed securities is that the underlying debt may be prepaid ahead of schedule, if interest rates fall, thereby reducing the value of the fund's investment. If interest rates rise, less of the debt may be prepaid. Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner.
Municipal bond risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes, which could affect the market for and value of municipal securities.
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 Prospectus. Read the prospectus carefully before investing.
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