MainStay Files for New Multi-Strat Absolute Return Fund

Mar 19 2015 | 11:26am ET

The MainStay Funds Trust has filed with the SEC to form the MainStay Absolute Return Multi-Strategy Fund, a new vehicle that will place assets across multiple sub-advisors that use alternative strategies, including but not limited to market neutral equity, risk arbitrage, managed futures, long/short credit, non-traditional fixed-income, and master limited partnerships. 

The fund will invest in a wide variety of instruments, including equities, fixed-income, commodities, currencies, convertibles, funds and derivatives.

Candriam France S.A.S., Cornerstone Capital Management, Cushing Asset Management and MacKay Shields are listed among the fund’s sub-advisors, according to the documents. The fund will have four classes and carry up to 5.5% sales and 1% distribution/12b-1 charges. Management fees were not disclosed in the filings. 

The fund will seek low correlation to traditional equity and fixed income indices and lower volatility than traditional equity indices by utilizing a combination of alternative and diversified investment strategies. Longer-term, annualized volatility level of approximately 6% or less is targeted.

Mainstay is a unit of New York Life Investment Management, which is owned by New York Life Insurance Company and had $538 billion in assets under management across all affiliates as of the end of 2014.

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