MainStay Balanced Fund and U.S. Small Cap Fund to reorganize

By Toni Weeks

San Diego, Dec. 23 - The boards of trustees of the MainStay Balanced Fund and the MainStay U.S. Small Cap Fund approved on Dec. 14 a proposal to be submitted to shareholders concerning a plan of reorganization for the funds, according to a 497 filing with the Securities and Exchange Commission.

At a May 21 meeting, shareholders who own shares of a fund as of the record date will be asked to

• Approve an agreement and plan of reorganization for the acquisition of all assets and liabilities of each fund by a corresponding newly created series of MainStay Funds Trust, followed by complete liquidation of each original fund;

• Grant the trust authority to enter into and amend agreements with subadvisers on behalf of the funds without needing to obtain shareholder approval; and

• Approve the amendment or elimination of fundamental investment restrictions for the funds.

Shareholders will receive a proxy statement with further information on March 19.

Parsippany, N.J.-based New York Life Investments serves as the manager for the funds.

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