MainStay Convertible Fund (MCINX)

MainStay Convertible Fund (Ticker: MCINX) is a balanced mutual fund. This fund focuses on convertible securities including bonds, corporate notes, and preferred stocks.

MainStay Convertible Investor (MCINX)

The investment objective of MainStay Convertible fund is to provide capital appreciation and current income. The fund utilizes its assets to purchase convertible securities such as bonds, debentures, corporate notes, and preferred stocks or other securities. It may also invest in non-convertible debt, dividend equity stocks, U.S. government securities, and cash.

Fund Profile

• Fund Inception Date: February 28, 2008
• Ticker Symbol: MCINX
• CUSIP: 56062X526
• Beta (3yr): 1.32
• Rank in category (YTD): 70%
• Category: Convertibles
• Distribution: 1.85%
• Capital Gains: 0%
• Expense Ratio: 1.19%
• Net Assets: $ 710.07 million
• Number of Years Up: 2 years
• Number of Years Down: 1 year
• Effective Duration: 4.2 years
• Annual Turnover Rate: 80%

Updated on 12/2/2012

This convertibles mutual fund has total net assets of $710.07 million. The Investor class of this fund was introduced in 2008. Edward Silverstein has managed the fund’s other classes since 2001. Investors may receive 1.85% dividend yield. The most recent yield was distributed in June 2012 ($0.06). The annual expense ratio is 1.19%. The current shares price is $15.05 (9/30/2012).

This balanced fund has year-to-date return of 6.61%. The 5-year annualized return is 3.20%. The best 1-year total return was recorded in 2009 with 42.40%. Based on the load adjusted returns, the fund’s performance is as follow:

• 1-year: 0.15%
• 3-year: 7.74%
• 5-year: 2.04%
• 10-year: 6.03%

The mutual fund has management fee of 0.25% and front-end sales load fee of 5.5%. The minimum initial investment is $1,000. You can buy the mutual fund from 21 brokerages. They are JP Morgan, Scottrade Load, Ing Financial Advisers – SAS Funds, Raymond James WRAP Eligible, etc. The other classes of this fund are Class A (MCDAX), Class B (MCSVX), Class C (MCCVX) and Class Institutional (MCNVX).

Top Convertible Mutual Funds 2011 Part 2

The top 5 convertible holdings as of June 2012 are JP Morgan Chase & Co (3.3%), Apache Corp Preferred (3.2%), Bio Marin Pharmaceuticals Inc (2.5%), Biovail Corp (2.4%) and Gilead Sciences Inc (2.2%). The top sectors are Consumer Non-Cyclical (31.6%), Energy (15.0%), Consumer Cyclical (11.9%), Technology (11.2%) and Communications (10.8%).

According to the fund website, the investment risks are market risk, convertible securities risk, synthetic convertible securities risk, debt securities risk, high-yield securities risk, equity securities risk, and foreign securities risk.

Disclosure: No Position