MainStay Convertible Fund

MainStay Convertible Fund
From Thomson Reuters Lipper Awards, ©2017 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited. According to Lipper, the awards recognize funds for their consistent strong risk-adjusted performance relative to their peers, based on Lipper’s proprietary performance-based methodology. Those funds with the most consistent return within their classification were declared the winner over three, five, or 10 years. MainStay Convertible Fund Class I shares received the Lipper Fund Award in the Convertible Securities Fund category for the 3- and 5-year periods annualized out of 74 and 71 eligible funds, respectively, as of 11/30/16. For a detailed explanation, please review the Lipper Fund Awards Methodology document at A: MCOAX INV: MCINX C: MCCVX I: MCNVX MSC31a-07/17

Agenda Investment Team Insights Process Results
MainStay Convertible Fund Agenda Investment Team Insights Process Results

MacKay Shields: A leader in income-oriented investing
MainStay Convertible Fund: Investment Team MacKay Shields: A leader in income-oriented investing Independent fixed income boutique founded in 1938 MacKay Shields has managed high yield portfolios since 1991 with a disciplined investment process focused on risk control Acquired by New York Life Insurance Company in 1984 165 employees with offices in New York, New Jersey, Los Angeles and London Equity alignment for senior professionals Four separate and distinct investment groups within MacKay Shields Account assets by client type $96.7 billion AUM1 High Yield Global Fixed Income Municipal Managers Convertibles $22.6B $48.6B $22.7B $2.8B 1. AUM shown on is as of June 30, In respect to AUM by client type and by group segmentation, due to rounding the sum of the items may not equal 100% or any expressed totals as applicable.

MacKay Shields’ investment solutions
MainStay Convertible Fund: Investment Team MacKay Shields’ investment solutions Highlighted Investment Strategies by Team Dynamic Strategies with Clients’ Objectives in Mind Global Fixed Income Core Core Plus Core Plus Opportunities Credit High Yield Active Core Global High Yield Emerging Markets Credit Bank Loans Unconstrained High Yield Low Volatility High Yield Select High Yield Municipal Managers Municipal Investment Grade Municipal Short-Term Municipal High Yield Convertibles U.S. Convertibles Investment strategies listed above are offered across the entire fixed-income spectrum primarily through: Mutual funds, ETFs, separately managed accounts and, Commingled investment vehicles The above chart is for illustrative purposes only and not drawn to scale. Furthermore, the chart may not reflect the procession of referenced strategies on an expected return and risk basis at any point in time. Potential returns may not be achieved.

Convertible investment team
MainStay Convertible Fund: Investment Team Convertible investment team Name Years of Investment Experience Education Edward Silverstein, CFA 23 Bank of New York Brooklyn Law School, JD Senior Managing Director New York Stock Exchange Baruch College, MBA Portfolio Manager/Research Analyst University of Vermont, BS Thomas Wynn, CFA 34 Centurion Capital New York University, MBA Director Deutsche Bank University of Notre Dame, BA Research Analyst AM Investment Partners Scott Mallek 21 Salomon Smith Barney Fairfield University, BA Trader J. Alex Leites 24 Credit Suisse First Boston New York University, BS Associate Director Richard Lee 3 GFI Group Georgetown University, BS Associate Research Efforts Supported by the High Yield Investment Team1 Andrew Susser Managing Director Lead Portfolio Manager Generalist Ryan Bailes, CFA Director Analyst/Portfolio Manager Gaming Paper/Packaging Utilities Homebuilding Dohyun Cha, CFA Managing Director Analyst/Portfolio Manager Energy Won Choi Managing Director Analyst/Portfolio Manager Chemicals Metals Eric Gold Managing Director Analyst/Portfolio Manager Cable/Broadcasting Technology Telecommunications Nate Hudson, CFA Managing Director Portfolio Manager/Analyst Auto/Transportation Building Materials Services Michael A. Snyder Managing Director Portfolio Manager/Analyst Aerospace/Defense Consumer Products Manufacturing Media James S. Wolf Managing Director Portfolio Manager/Analyst Finance Healthcare Thomas Metcalf Associate Director Research Analyst ¹As needed.

Convertible securities
MainStay Convertible Fund: Insights Convertible securities A Convertible Security is a type of bond issued by a company that can be converted into a predetermined number of shares of common stock. Convertible BONDS Limits a full decline in the price of the equity EQUITY Enables participation in equity price appreciation Jessica removed footnote 12/2/14: Convertible securities are subject to a risk of loss. Convertible securities may be subordinate to other securities. The total return for a convertible security depends, in part, upon the performance of the underlying stock into which it can be converted. Additionally, an issuer may encounter financial difficulties which could affect its ability to make interest and principal payments. If an issuer stops making interest and/or principal payments, an investor could lose its entire investment. There can be no assurance that investment objectives will be met and there is no guarantee against loss. Convertible securities provide investors with the income stream potential of bonds as well as the growth potential of stocks.

Convertible asset class
MainStay Convertible Fund: Insights Convertible asset class Correlation with other major asset classes Asset Class Correlation with Convertible Securities (1/1/ /31/2016) U.S. mid-capitalization stocks 0.90 U.S. small-capitalization stocks 0.86 U.S. large-capitalization stocks 0.83 International stocks 0.81 U.S. corporate bonds 0.37 Treasury bills -0.05 Treasury bonds -0.23 Source: Morningstar; 1/1/1997 – 12/31/2016. Convertible securities are represented by the Bank of America Merrill Lynch U.S. Convertible Index, a market capitalization-weighted index of domestic corporate convertible securities that are convertible to common stock only. U.S. large-capitalization stocks are represented by the S&P 500® Index, an unmanaged index that is widely regarded as the standard for measuring large-cap U.S. stock market performance. U.S. mid-capitalization stocks are represented by the Russell Midcap® Index, an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000® Index. U.S. small-capitalization stocks are represented by Russell 2000® Index, an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index. International stocks represented by the MSCI EAFE Index, which consists of international stocks representing the developed world outside of North America. U.S. corporate bonds are represented by the Bank of America Merrill Lynch U.S. Corporate Master Index, an unmanaged index comprised of approximately 4,256 corporate debt obligations rated BBB or better. These quality parameters are based on composites of ratings assigned by Standard and Poor's Ratings Group and Moody's Investors Service, Inc. Only bonds with minimum maturity of one year are included. Treasury bonds are represented by the Bank of America Merrill Lynch U.S. Treasury Master Index, which tracks the performance of sovereign debt publicly issued by the U.S. government in its domestic market. Qualifying securities must have at least one year remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of $1 billion. Treasury bills are represented by the Bank of America Merrill Lynch U.S. Treasury Bill 3-month Index, which is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. Results assume the reinvestment of all capital gain and dividend distributions. An investment cannot be made directly into an index. Past performance is no guarantee of future results. Correlation is a statistical measure of how two securities move in relation to each other. Correlations are used in advanced portfolio management.

The convertible market today
MainStay Convertible Fund: Insights The convertible market today Source: Bank of America Merrill Lynch; data as of 6/30/17. Bond ratings are expressed as letters ranging from 'AAA', which is the highest grade, to 'C' ("junk"), which is the lowest grade. Different rating services use the same letter grades, but use various combinations of upper- and lower-case letters to differentiate themselves. To illustrate the bond ratings and their meaning, we'll use the Standard & Poor's format: AAA and AA = High credit-quality investment grade; AA and BBB = Medium credit-quality investment grade; BB, B, CCC, CC, C = Low credit-quality (non-investment grade), or "junk bonds“; D = Bonds in default for non-payment of principal and/or interest. Ratings apply to the underlying portfolio of debt securities held by the BofA ML All Convertible Index and are rated by an independent rating agency, such as Standard and Poor’s, Moody’s, and/or Fitch. 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.

Why invest in convertibles?
MainStay Convertible Fund: Insights Why invest in convertibles? Target the “total return” instrument Total Return = Yield + Price Appreciation We aim to own convertibles which may participate in 60-80% of the common stock's upside, while limiting downside participation to 30-50% of the stock's decline. Delta > 0.80 Delta < 0.40 Convertible Price Convertible Price Curve Yield Instrument Total Return Instrument Equity Alternative Conversion Premium Stock Price Investment Value (Bond) Source: Merrill Lynch Convertible Research. The information is hypothetical and not representative of any specific investment. Delta is the ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative.

Manager Outlook: MainStay Convertible Fund
MainStay Convertible Fund: Insights Manager Outlook: MainStay Convertible Fund Convertible performance has been strong for the last several years and has provided investors with equity- like upside returns with lower volatility. The convertible bond and equity markets continued their low volatility advance during the second quarter. We expect: More investors to view the convertible market favorably due to the gains of 2016 and the significant outperformance versus the Bloomberg Barclays Agg in the latter part of the year. Convertible bonds will outperform in a rising rate environment and, unlike nearly all other classes of fixed income instruments, have almost no correlation to the movement in interest rates. This trend will likely continue as long as the economy remains in recovery mode. Equity markets will be higher in the coming months as economic growth in the U.S. continues at a slow pace and Europe’s economy expands in an increasingly steady fashion. Interest rates to remain low in absolute terms, which should foster a healthy climate for stocks and equity-linked securities like convertibles, despite the likelihood that the Federal Reserve will raise rates again in the near term. The opinions expressed are those of Mackay Shields LLC as of the last quarter end, 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.

MainStay Convertible Fund: Process
Why MacKay Shields? We strive to participate in the upside of equity markets while achieving downside protection and current income We emphasize risk management A proven, disciplined valuation process with an experienced research team Process benefits from our growth and value research expertise Past performance is not indicative of future results. There can be no assurance that investment objectives will be met.

MainStay Convertible Fund: Process
Overview Objective Seeks capital appreciation together with current income Philosophy Convertibles provide a means of obtaining exposure to the equity markets while emphasizing the protection of principal Identify securities that offer an asymmetric risk/return profile Target the “total return” instrument Fundamental research driven Evaluate downside and upside potential Invest in convertibles with the best risk/reward profile Construct well-diversified portfolio Strict sell discipline Discipline There can be no guarantee that investment objectives will be met.

Screening Objectives with an Emphasis on Risk Management
MainStay Convertible Fund: Process Investment process Convertible Universe ~500 Companies Eliminate Busted and “Deep in the money” Convertibles Security Structure And Modeling Convertible Catalyst Test Focus List Convertible Portfolio Objectives Exclude Illiquid Convertibles Target Balanced Convertibles Reduce Risk Stress Test Up/Down Market Capture to Identify Asymmetry of Returns Determine Timelines of Investments Complement Our Quantitative Tests with Fundamental Analysis Accumulate Convertibles with the Best Risk/Reward Profile and Favorable Company Fundamentals Criteria Generally Equity Market Cap Above $300 Million and at Least $100 Million of Convertible Bonds Issued Equity Sensitivity Model 60-80% Upside/30-50% Downside Bond Value Conversion Premium Internal Credit Research Valuation Positive Earnings Trend Free Cash Flow Positive Fundamental Change in Industry and/or Company In-Depth Analysis Company Contact Insider Buying/ Ownership ~ Companies Screening Objectives with an Emphasis on Risk Management

Portfolio construction
MainStay Convertible Fund: Process Portfolio construction Managing risk Apply fundamental research investment process Identify the risk/reward of the convertible relative to the underlying common stock Accumulate convertibles with best risk/reward profile Diversify among sectors Set price target Follow proven sell discipline Change in fundamentals Valuation Free cash flow yield or P/E out of line with growth rate Free cash flow yield or P/E out of line with peer group Free cash flow yield or relative P/E outside of historical range

MainStay Convertible Fund: Process MainStay Convertible Fund Upside potential with less downside risk Fund Objective Seeks: Capital appreciation together with current income. “Sweet Spot” orientation Invests in securities for total return, seeking capital appreciation potential of the underlying equity while retaining fixed-income characteristics. Managing downside exposure The team uses a strict sell discipline to manage risk. They set price targets and sell when warranted by a change in fundamentals or valuation. Tenured team The lead manager has over 20 years investment experience, has been with MacKay Shields for most of his career and has been managing the fund for over 10 years. Share Class Ticker Class A MCOAX Class I MCNVX Class C MCCVX Investor Class MCINX From Thomson Reuters Lipper Awards, ©2017 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited. According to Lipper, the awards recognize funds for their consistent strong risk-adjusted performance relative to their peers, based on Lipper’s proprietary performance-based methodology. Those funds with the most consistent return within their classification were declared the winner over three, five, or 10 years. MainStay Convertible Fund Class I shares received the Lipper Fund Award in the Convertible Securities Fund category for the 3- and 5-year periods annualized out of 74 and 71 eligible funds, respectively, as of 11/30/16. For a detailed explanation, please review the Lipper Fund Awards Methodology document at There can be no assurance that the investment objectives will be met.

MainStay Convertible Fund: Results MainStay Convertible Fund Average Annual Total Returns, as of 6/30/17 Share Class 1 year 3 years 5 years 10 years Since Inception Class A (NAV) 15.93% 5.58% 10.50% 6.68% 8.78% Class A (max. 5.5% load) 9.56% 3.60% 9.26% 6.08% 8.59% Class I (no load) 16.30% 5.84% 10.78% 6.94% 8.93% Fund inception: 5/1/1986 Read through all important disclosures. 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. Performance reflects a contractual fee waiver and/or expense limitation and management fee waiver agreements in effect through 2/28/18, without which total returns may have been lower. These agreements renew automatically for one-year terms unless written notice is provided prior to the start of the next term or upon approval of the Board. Visit mainstayinvestments.com for the most recent month-end performance. Average annual total returns include the change in share price and reinvestment of dividends and capital gain distributions. Performance for Class A and I shares includes the historical performance of Class B shares from inception (5/1/86) through 12/31/94 for Class A and through 11/27/08 for Class I adjusted to reflect the applicable sales charge (or CDSC) and fees and expenses. Class I shares are generally only available to corporate and institutional investors. Class I shares are generally available only to corporate and institutional investors. Total annual operating expenses are: Class A: 1.01%, Class I: 0.76%. Net annual operating expenses are: Class A: 1.01%, Class I: 0.61%. 19

MainStay Convertible Fund: Results MainStay Convertible Fund Portfolio information as of 6/30/17 Fund Statistics Fund Inception 5/1/86 Total Net Assets (all classes) $1.1 billion Distribution Frequency Quarterly Number of Holdings 86 Annual Turnover Rate (%) 24 Fund Benchmark Effective Duration 3.9 Yrs 2.6 Yrs Class A Standard Deviation (3 yr) (%) 9.18 8.26 Alpha (3 yr) 0.34 n/a Beta (3 yr) 1.07 R-Squared (3 yr) 0.93 Sharpe Ratio (3 yr) 0.58 0.57 Yields and Distributions (Class A) SEC 30-Day Yield 0.41 Unsubsidized 30-Day Yield 0.40 Last Distribution: Jun 2017 ($) 0.0399 Top Convertible Holdings (%) DISH Network Corp., 3.375%, due 08/15/2026 3.1 Danaher Corp., 0.000%, due 01/22/2021 2.5 Bank of America Corp. 2.2 Priceline Group, Inc., 1.000%, due 03/15/2018 XPO Logistics, Inc., 4.500%, due 10/01/2017 2.1 Macquarie Infrastructure Corp., 2.875%, due 07/15/2019 Air Lease Corp., 3.875%, due 12/01/2018 2.0 Teleflex, Inc., 3.875%, due 08/01/2017 1.9 Hologic, Inc., 2.000%, due 03/01/2042 Microchip Technology, Inc., 1.625%, due 02/15/2025 Portfolio data as of 6/30/17. Percentages based on total net assets and may change daily. Acct 1836 (Local 1199). Reason: “selected because it is the oldest account in the composite.” Began using 6/30/14. Used for both consultants and One-on-one. Acct 4351 (Tennessee Valley). Reason: “selected because it is the oldest account in the composite that has not been impacted by large cash flows in the last year “ SEC 30-Day Yield is based on net investment income for the 30-day period ended 6/30/17 divided by the offering price per share on that date. Yields for other share classes will vary. Unsubsidized 30-Day Yield reflects what the yield would have been without the effect of waivers and/or reimbursements. Please note that there was no reimbursement for this time Period. Portfolio data is as of 6/30/17 and subject to change on a daily basis.

MainStay Convertible Fund: Results MainStay Convertible Fund Portfolio composition (%) as of 6/30/17 Portfolio data is as of 6/30/17 and subject to change on a daily basis.

MainStay Convertible Fund: Results MainStay Convertible Fund Top Sectors (%) as of 6/30/17 Portfolio data is as of 6/30/17 and subject to change on a daily basis.

Total Annualized Return (%)
MainStay Convertible Fund: Results Performance Performance compared to the index, as of 6/30/17 Total Annualized Return (%) Portfolio Manager to Review Slide. Investment results are based on total returns with reinvestment of distributions and do not reflect the effect of any sales charges, which would reduce performance shown. Performance for other share classes will differ based on differences in their sales charges and expense structures. The BofA Merrill Lynch U.S. Convertible Index is a market capitalization-weighted index of domestic corporate convertible securities. In order to be included in the Index, bonds and preferred stocks must be convertible only to common stock. Index results assume the reinvestment of all capital gain and dividend distributions. An investment cannot be made directly into an index. An investment cannot be made directly into an index. Past performance is no guarantee of future results. 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. Performance reflects a contractual fee waiver and/or expense limitation and management fee waiver agreements in effect through 2/28/18, without which total returns may have been lower. These agreements renew automatically for one-year terms unless written notice is provided prior to the start of the next term or upon approval of the Board. Visit mainstayinvestments.com for the most recent month-end performance.

Outperformed its Morningstar category peer average
MainStay Convertible Fund: Results Outperformed its Morningstar category peer average Average Annual Total Returns compared to Morningstar category, as of 6/30/17 Total Annualized Return (%) Morningstar Percentile in Peer Group Class A – 31st 8th 3rd Class I – 28th 4th N/A Morningstar Ranking in Peer Group Class A – 30/95 7/77 6/67 2/39 Class I - 27/95 3/77 3/67 Source: Morningstar, 6/30/17. Past performance is no guarantee of future results. Morningstar Convertible Category: Convertible-bond portfolios are designed to offer some of the capital-appreciation potential of stock portfolios while also supplying some of the safety and yield of bond portfolios. To do so, they focus on convertible bonds and convertible preferred stocks. Convertible bonds allow investors to convert the bonds into shares of stock, usually at a preset price. These securities thus act a bit like stocks and a bit like bonds..

Outperformed its Lipper category peer average
MainStay Convertible Fund: Results Outperformed its Lipper category peer average Average Annual Total Returns compared to Lipper peer group, as of 6/30/17 Total Annualized Return (%) Lipper Percentile in Peer Group Class A – 31st 11th 9th 5th Class I – 27th 4th N/A Lipper Ranking in Peer Group Class A – 29/94 8/76 6/71 2/39 Class I - 25/94 3/76 3/71 Source: Lipper, 6/30/17. Past performance is no guarantee of future results. Lipper Inc. is an independent fund performance monitor. Results are based on total returns with capital gain and dividend distributions reinvested and do not reflect any deduction of sales charges Lipper averages are not class specific.

Performance Latest 8 calendar years - Class A Shares at NAV
MainStay Convertible Fund: Results Performance Latest 8 calendar years - Class A Shares at NAV As of December 31, 2016 Performance Period MainStay Convertible Fund Average Lipper Convertible Securities Fund Lipper Percentile in Peer Group Lipper Ranking in Peer Group 2016 11.43% 7.68% 23rd 21/94 2015 -1.25% -3.53% 29th 23/81 2014 7.39% 5.63% 37th 28/76 2013 25.42% 21.58% 13th 10/76 2012 9.29% 11.16% 68th 51/74 2011 -5.26% -5.84% 46th 29/63 2010 17.85% 16.53% 50th 34/67 2009 42.80% 41.77% 40th 25/62 Performance shown at NAV does not reflect deduction of sales charges, which would lower performance. MainStay Convertible Fund’s average annual total returns include the change in share price and reinvestment of dividends and capital gain distributions. Performance for Class A shares includes the historical performance of Class B shares from inception (5/1/86) through 12/31/94 adjusted to reflect the applicable sales charge (or CDSC) and fees and expenses. 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 mainstayinvestments.com for the most recent month-end performance. Source: Lipper Inc., 12/31/16. Lipper is an independent fund performance monitor. Results are based on total returns with capital gain and dividend distributions reinvested and do not reflect any deduction of sales charges. Lipper numbers are based on the Fund’s total-return rank for the specified time period relative to all funds that have the same Lipper category. Lipper averages are not class specific. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.

About Risk Before considering an investment in the Fund, you should understand that you could lose money. Issuers of convertible securities may not be as financially strong as those issuing securities with higher credit ratings and may be more vulnerable to changes in the economy. 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. 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.

Not Insured by Any Government Agency
MainStay Convertible Fund For more information To learn more about MainStay Funds®, call 800-MAINSTAY ( ) for a prospectus or summary prospectus. Please ask your clients to consider the investment objectives, risks, and charges and expenses of these investments carefully before investing. The prospectus or summary prospectus contains this and other information about the Funds and can be obtained by contacting you, the financial professional. Instruct your clients to read the prospectus or summary prospectus, carefully before investing. 800-MAINSTAY ( ) mainstayinvestments.com New York Life Investment Management LLC engages the services of MacKay Shields LLC, an affiliated, federally registered advisor to subadvise the Fund. MainStay Investments® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. New York Life Investments engages the services of Cornerstone Capital Management Holdings LLC, a wholly owned subsidiary of New York Life Investment Management Holdings LLC. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC. Read Slide. Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency 28 28 28

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