Short duration high yield has the potential to generate relatively high levels of income while adding diversification. Solid fundamentals, attractive prices, and a supportive technical backdrop make the asset class notable amongst fixed income.
†Effective 2/28/24, the MainStay MacKay Short Duration High Yield Fund was renamed the MainStay MacKay Short Duration High Income Fund. 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. LSEG Lipper Fund Awards, ©2024 LSEG. All rights reserved. Used under license.
Less Credit Risk Driven by Higher Quality1
Compared with the overall HY market, MDHIX invests in higher quality bonds. By focusing on high-quality companies with strong credit profiles, MDHIX seeks to provide current high income and capital appreciation.
A Strategic Solution with Strong Risk-Adjusted Returns2
Over the past ten years, short duration high yield has not only outperformed core bonds, investment grade corporates, and U.S. Treasuries, but it has produced greater risk-adjusted returns as well.
1. Source: ICE Data Services entity (“ICE”), as of 09/30/24. High Yield is represented by ICE BofA U.S. High Yield Constrained Index. Past performance is no guarantee of future results, which will vary. It is not possible to invest directly in an index. Percentages are based on fixed-income securities held in the Fund's investment portfolio and exclude any equity or convertible securities and cash or cash equivalents. Ratings apply to the underlying portfolio of debt securities held by the Fund and are rated by an independent rating agency, such as Standard and Poor's or Moody's. If ratings are provided by three rating agencies, but differ, the middle rating will be utilized. If ratings are provided by two rating agencies, but differ, the higher rating will be utilized. If only one rating is provided, the available rating will be utilized. Securities that are unrated by the rating agencies are reflected as such in the breakdown. Unrated securities do not necessarily indicate low quality. S&P rates borrowers on a scale from AAA to D. AAA through BBB represent investment grade, while BB through D represent non-investment grade.
2. Morningstar, 9/30/2014 – 9/30/2024. Short-Duration High Yield represented by ICE BofA High Yield 1-5 BB-B Index. EM Debt represented by JP Morgan EMBI Global Diversified. U.S. Corporates represented by Bloomberg US Corp Bond Index. Core bonds represented by Bloomberg U.S. Aggregate. U.S. Treasuries represented by Bloomberg U.S. Treasury. It is not possible to invest directly in an index. Past performance does not guarantee future results. There may have been other time periods where the short duration high yield index did not out-perform.
Consider NYLI MacKay Short Duration High Income Fund
Tenured credit specialist
MacKay Shields High Yield Team is comprised of senior investment professionals, each with research responsibilities for their sectors.
Intensive credit research
The investment process is predicated upon “margin-of-safety” analysis, meaning every bond must have a large margin-of-safety through asset coverage and free cash flow.
Disciplined credit selection
The Team’s investment strategy is a bottom-up, value-oriented approach. Adherence to the disciplined investment process helps the Team seek credits with downside cushion to help ensure any risk taking is properly compensated.
NYLI MacKay Short Duration High Income Fund - Click on the Fund Name, which includes the prospectus, investment objectives, performance, risk, and other essential information. Returns represent past performance, which is no guarantee of future results. Current performance may be lower or higher. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Visit www.newyorklifeinvestments.com for the most recent month-end performance.
About Risk
The Fund is not a money market fund and does not attempt to maintain a stable NAV. The Fund's NAV per share will fluctuate. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds.
Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. These risks may be greater for emerging markets.
Floating rate loans are generally considered to have speculative characteristics that involve default risk of principal and interest, collateral impairment, borrower industry concentration, and limited liquidity.
Issuers of convertible securities may not be as financially strong as those issuing securities with higher credit ratings and are more vulnerable to changes in the economy.
The Fund may invest in derivatives, which may increase the volatility of the Fund's NAV.
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, or that negative perception of the issuer's ability to make such payments may cause the price of that bond to decline.