MainStay Funds earns Barron’s 10-year crown
Barron’s cites fund family's impressive long-term performance
Barron’s has once again recognized MainStay Funds for delivering long-term results—naming it the #1 fund family for the 10-year period in its annual ranking of mutual fund families. The publication further lauded MainStay Funds' 10-year track record as its #1 fund family as "an impressive feat." This is the fourth consecutive year that MainStay has ranked in the top three for the 10-year period —and fifth consecutive year in the top 10—in Barron’s fund family rankings.
In the February 9, 2013, Barron’s article, “All in the Family,” fund families were ranked over the one-, five-, and 10-year periods ended December 31, 2012, based on relative asset-weighted performance. In the tax-exempt bond category, MainStay Funds ranked in the top five for the one-year period, driven by the strong results of MacKay Municipal Managers™ team. Learn more about MainStay Funds.
Outstanding results through difficult markets
MainStay Funds produced these long-term results throughout periods of extreme volatility marked by the housing bubble, credit crisis, U.S. debt downgrade, and the Great Recession of 2007-2009.
"We believe this strong long-term relative performance was the direct result of our multi-boutique model that consists of autonomous institutional asset managers, each of with its unique investment focus, process, and philosophy," said Stephen Fisher, Senior Managing Director and President of the MainStay Funds. "While the boutiques are independent of one another, they generally possess a quality bias and a focus on risk management as they seek to deliver consistently superior long-term performance." In fact, as of February 11, 2013, 88% of MainStay Funds had a Morningstar overall risk rating of "average," "below average," or "low."
2012: Another year of growth for MainStay Funds
Coming off three consecutive years as a Barron’s top three fund family, MainStay Funds continued to garner market share in 2012. With now over $53 billion in assets under management and a top net flow leader in the mutual fund industry,1 MainStay continued to enhance its multi-boutique lineup with the addition of Marketfield Asset Management LLC, subadvisor of the go-anywhere MainStay Marketfield Fund. This growth continued into 2013 with the addition of Cornerstone Asset Management LLC to the MainStay investment management lineup as subadvisor of the large-cap growth focused MainStay Cornerstone Growth Fund.
"Throughout the years, we believe our Barron’s rankings are a testament to the quality and depth of the MainStay Fund lineup and our multi-boutique structure," said Fisher. "It is clear that our focus on high-quality securities across equity and fixed income has resulted in strong long-term results and has served our shareholders well through a variety of market cycles. Now more than ever, we remain committed to this model that allows us to put top investment managers in position to do what they do best."
And according to Barron’s, that is just what they are doing.
All mutual funds are subject to market risk and will fluctuate in value. Foreign securities may be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. 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.
How Barron’s Ranks the Fund Families: To qualify for the Lipper/Barron’s Fund Survey, a fund family must have at least three funds in Lipper's general U.S.-stock category, one in world equity (which combines global and international funds), one mixed-equity fund (which holds stocks and bonds), at least two taxable-bond funds, and one tax-exempt offering. Each fund's returns are adjusted for 12b-1 fees. Fund loads, or sales charges, aren't included in the calculation of returns, either. Each fund's return is measured against those of all funds in its Lipper category, such as, say, small-cap value. That leads to a percentile ranking, with 100 the highest and 1 the lowest, which is then weighted by asset size, relative to the fund family's other assets in its general classification, world equity, for instance. If a family's biggest funds do well, that boosts its overall ranking. Poor performance in a big fund would have the opposite effect. Finally, the score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. The category weightings for the one-year results: general equity, 34.9%; world equity, 16.3%; mixed equity, 17.3%; taxable bond, 27.2%; tax-exempt bond, 4.3%. The category weightings for the five-year results: general equity, 40.1%; world equity, 12.3%; mixed-asset, 17.3%; taxable bonds, 25.6% and tax-exempt bonds, 4.7%. The category weightings for the 10-year results: general equity, 41.9%; world equity, 12.3%; mixed-asset, 14.4%; taxable bonds, 25.9%; and tax-exempt bonds, 5.4%. The scoring: Say a company has a fund in the general U.S. equity category with $50 million in assets that accounts for half of the company's assets in that category. Its ranking is the 75th percentile. The first calculation would be 75 x 0.50, which comes to 37.5. That score is then multiplied by 38.04%, general equity's overall weighting in Lipper's universe. So it would be 37.5 x 0.3804, which totals 14.265. Similar calculations are done for each fund in the study. Then, all the numbers are added up for a total score. The fund family with the highest score wins, both for every category and overall. The same process is repeated for the five- and 10-year rankings based on their weightings. Ranking data is from Lipper.
Source: Barron’s, 2/9/13. Overall, MainStay Funds ranked number 56 for the one-year period, 20 for the five-year period, and 1 for the 10-year period ended December 31, 2012, out of 62, 53, and 46 fund families, respectively. MainStay ranked number three for the 10-year period in 2009, 2010, and 2011 from among 48, 46, and 45 fund families, respectively. MainStay ranked number six from among 48 fund families for the 10-year period in 2008. MainStay ranked number five in the tax-exempt bond category out of 62 fund families for 2012. Past performance is no guarantee of future results, which will vary. For the most recent MainStay Funds performance, please visit the "Products and Performance" section of this web site.
1 Source: Strategic Insights, 12/31/12.
Morningstar Risk: An assessment of the variations in a fund's monthly returns in comparison to similar funds, with an emphasis on downward variation. The greater the variation, the larger the risk score. If two funds have the exact same return, the one with the greater variations in its return is given the larger risk score. In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk, the next 22.5% Below Average, the middle 35% Average, the next 22.5% Above Average, and the top 10% High. Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the fund. Funds with less than three years of performance history are not rated.
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. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed through NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.
New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.
New York Life Investments engages the services of federally registered advisors to subadvise the Funds. MacKay Shields LLC, Cornerstone Capital Management Holdings LLC, and Institutional Capital LLC are affiliates of New York Life Investments. Epoch Investment Partners, Inc., Marketfield Asset Management LLC, Markston International LLC, and Winslow Capital Management, Inc. are unaffiliated. Fixed Income Investors is a multi-product fixed-income investment manager and a division of New York Life Investments.
For more information about MainStay Funds®, call 800-MAINSTAY (624-6782) for a prospectus or summary prospectus. Investors are asked to consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus or summary prospectus contains this and other information about the investment company. Please read the prospectus or summary prospectus carefully before investing.