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No Bank Guarantee Not Insured by Any Government Agency 1 2021 Municipal Bond Market Insights: Mid-year Update “Resilience”

From MacKay Municipal Managers™ The Minds Behind Munis

Consistent with MacKay Municipal Managers’ forecast in our 2021 Insights, the municipal market demonstrated significant resilience in the first half of 2021 reinforcing its historic adaptability. Through the first six months of the year, the Biden Administration’s policy agenda began to materialize resulting in a large stimulus package. This coupled with domestic improvements related to the COVID-19 pandemic, vaccine developments and efficacy improved the nation’s economic outlook. Better than expected tax revenues boosted further by the economic stimulus has strengthened credit fundamentals within the municipal market. The 2021 MacKay Municipal Managers™ theme of “resiliency” speaks to the essentiality of the municipal market, the reliability of sustained revenue streams, and the market’s ability to withstand and adjust to the unexpected. Top Five Municipal Market Insights for 2021 – “Resilience”

Theme Rationale Portfolio in Action Mid-Year Status

Policy: The Biden The Biden Administration’s policies are Based on the expectation that Biden On Target Administration expected to positively impact the municipal Administration’s policies would be a positive market in multiple ways. Anticipated initiatives for municipal fundamentals, we continue to Federal stimulus measures have put additional 1 makes an impact dollars in the economy, which has helped with include infrastructure spending, increasing favor credit. Thus far, fiscal stimulus has been employment opportunities and addressing beneficial to state and local governments, and state revenue losses, as well as already strong climate change. These objectives likely other municipal credits. personal income tax collections. In aggregate, coalesce in a higher volume of infrastructure- across the March 2020 CARES Act, the related municipal issuance that will become Looking ahead, we expect a broader array of December 2020 stimulus and the $1.9TR more recognized by impact-oriented investors municipal investment opportunities focused on American Rescue Plan, there has been an for its strong ESG aspects. We expect a broad climate and employment as an outcome of estimate of $1.2TR of municipal related array of municipal projects will be climate these policies. There is positive momentum provisions and aid across the various sub- friendly, supportive of increased employment within the bipartisan infrastructure framework sectors. The American Rescue Plan alone has development and will carry the dual oversight towards Electric Vehicle infrastructure, an approximate of $650B in municipal related of both federal and state governments. In resilience infrastructure (which focuses on support. (source: JPM, June 2021) addition, investor anticipation of the Biden climate-related upgrades) and environmental remediation. The additional aid has led to improvement in Administration pushing taxes higher (more likely credit especially some of the distressed a 2022 event) increases the value of tax segments. For example, credit spreads have exemption and municipal demand. tightened in states like IL and NJ which were in crisis prior to the pandemic. YTD Index returns as of 6/30/21: Bloomberg Barclays Municipal Bond Index: 1.06%, Bloomberg Barclays Municipal Bond Illinois: 3.55%, Bloomberg Barclays Municipal Bond New Jersey: 2.50%.

2 Theme Rationale Portfolio in Action Mid-Year Status

Stamina: We expect to see excess return opportunities Amidst the dislocation, MacKay Municipal On Target Key sectors in the COVID-impacted healthcare, Managers identified opportunities in “frontline transportation and travel-related municipal COVID credits” including transportation, Healthcare and transportation are the best 2 withstand the performing revenue backed sectors YTD, with COVID shutdown sectors. COVID-induced wider credit spreads healthcare and dedicated tax returns. We on select issuers should continue into 2021, have maintained an overweight exposure to Bloomberg Barclays Municipal Bond: Hospital and the risk for investors to avoid are those these sectors. Index returning 2.15% and Bloomberg securities with perceived credit weakness. Barclays Municipal Bond: Transportation Index However, a subset of those issuers have Fundamental analysis and relative value returning 1.93%, vs. the Bloomberg Barclays access to a broad array of policy and financial security selection has been of the utmost Municipal Bond Index at 1.06% as of 6/30/21. importance within these sectors. tools that should aid them in surviving the The stamina of these sectors can be current crisis. We believe strategies employing illustrated via the following: The scale of an active, relative value approach focused on downgrades for airport ratings was lower than understanding credit fundamentals, liquidity what was anticipated, as ratings for 88% of and the political landscape can better identify the bonds in the Bloomberg Barclays those bonds that represent value. However, Municipal Bond: Airport Index were because politics play a role and outcomes are unchanged over the past year (source: likely uneven, investing agility is also essential. CreditSights, 6/24/21). Among hospitals, number of upgrades has exceeded number of downgrades YTD as of 6/14/21. (source: FitchRatings)

Resurrection: We believe that the long-awaited final Puerto Rico securities have played an On Target Puerto Rico rises chapters in the restructuring of Puerto Rico important role in alpha generation for our debt will provide investors an attractive portfolios over the years. Where guidelines The restructuring of Puerto Rico debt is 3 while high risk expected to occur later this year and $7.4Bn deal bond prices relative value opportunity in the Territory’s permit, we have taken a dynamic approach credits. Ultimately, a combined $11 billion of within this sector. of central government debt is now expected decline Puerto Rico related debt could restructure out to be back on accrual per the Federal of default in 2021 and resume paying interest. During the first half of 2021, Puerto Credits Oversight and Management Board’s We anticipate demand for these bonds will be have been a large contributor in our portfolios. Commonwealth Plan of Adjustment.(Source: Bloomberg News, 7/7/21) strong. The opportunity in Puerto Rico credits We have maintained our rigorous underwriting stands out relative to much riskier, primarily standards and avoided the speculative parts The bonds that are expected to restructure, single site, project finance municipal credits of the high yield market. General Obligation bonds, Public Buildings that are prevalent in some high yield Authority (PBAs), and Puerto Rico Electric portfolios. We anticipate those highly Power Authority (PREPAs) have returned in the leveraged and illiquid bond financings could range of 12-20% YTD as of 6/30/21 (Source: face significant spread widening as project MSRB, ICE, Bloomberg). The Bloomberg revenues fall short of original projections and Barclays High Yield Muni Index has returned investors, facing potential restructurings, 6.13% Y TD. attempt to sell their positions. While defaults in the overall municipal market remain low, more than 80% of the defaults YTD have been concentrated in retirement (senior living, assisted living centers) and project financing (single-site project finance deals) (source: MMA Trends as of 6/30/21). We believe positive technicals of the current market may be delaying spread widening in the highly leveraged and illiquid bond financings.

3 Theme Rationale Portfolio in Action Mid-Year Status

Oasis: Taxable We believe taxable bond investors, in MacKay Municipal Managers runs dedicated On Target municipal bonds recognition that corporate bond yields do not taxable municipal strategies and advocates adequately compensate them for their relative the use of taxable municipals in accounts Using Morningstar’s Intermediate Core 4 in a global fixed category as a proxy, Taxable Municipals have income world risk, add to their taxable municipal holdings. where appropriate. Based on our relative value When compared to corporate bonds, we analysis, we have increased taxable municipal returned 0.30% YTD as of 6/30/21, while US believe taxable municipal bonds’ stronger exposure in tax-exempt portfolios where treasuries (Bloomberg Barclays U.S. Treasury credit quality, higher yields, and risk benefits guidelines permit. Index), IG corporates (Bloomberg Barclays offer better value for investors with tax-free U.S. Corporate Investment Grade Index), and accounts. In 2020, corporate bonds yields fell With the organic level of growth in this market, securitized debt (ABS and MBS) (Bloomberg to record lows while their interest rate risk, as we have also seen growth in the number of Barclays U.S. Asset Backed Securities Index/ measured by the duration of the ICE BofA US taxable municipal accounts as attributes of Bloomberg Barclays U.S. Mortgage Backed Corporate Index, had the largest single-year the asset class continue to resonate with retail Securities Index), have returned -2.58%, extension in over 30 years. In contrast, and non-traditional buyers. -1.27% and 0.18%/-0.77% respectively. taxable municipal risk adjusted yields are the With the expectation of an Infrastructure bill YTD taxable issuance, $65B is approximately cheapest they have been in more than a passing and an evolution with a greater 30% of total municipal issuance, $238B. decade when compared to investment grade (source: Bloomberg, 6/30/21) 1 breadth of supply, we believe in the longevity corporate bonds. Tax-exempt investors will of this asset class within municipals. likely benefit as strong demand for taxable There is an upward trend year over year for municipal bonds spurs issuance and reduces municipal allocation within non-US portfolios. tax-exempt supply. (source: FRED economic data as of 3/31/21)

Essentiality: We believe that tax-exempt bonds from Despite headline news regarding COVID On Target Municipal bonds municipal issuers providing essential services cases, state budgets and the like, MacKay will outperform other fixed income asset Municipal Managers continued to focus on Given the essential nature of the municipal 5 outlast the market, issuers were able to secure significant relative value analysis to find opportunities in headlines classes due to their favorable, intrinsic credit characteristics. While we understand the municipal market. The essentiality of the federal assistance through the American municipal bond investor uncertainty is due to market has sustained as the economy came Rescue Plan (ARP) to fund necessary services weak economic conditions, low yields and to halt and has slowly recovered since. such as airports, transit and education. negative news coverage on the sector, We continue to favor municipals in this According to Bloomberg data tracking of Fitch investors should focus on what we believe is and S&P rated bonds, when comparing the inherent stability of municipal revenue environment. Strong mutual fund flows and oversubscribed deals in the primary market market value of upgrades, year to date, 2021 streams sourced from municipal services that has seen a 6x increase compared to 2020. We are essential to our everyday lives. They are evidence of the stability and the perseverance of the asset class. would attribute this primarily due to improved should find confidence in select local financial picture after better than expected tax government bonds supported by property collections and infusion of federal aid. taxes that continue to be paid, income taxes collected and sales taxes withheld. Those According to the Census data as of 3/31/21, revenue streams support many forms of the states’ tax collections grew by 9.6% year state-level debt. Although we expect the over year, general sales and gross receipts economy to recover, thoughtful, research- taxes increased 3.5%, individual income taxes driven credit selection is also essential to ballooned by 18.6%, and corporation net differentiate among issuers. income tax collections were up 33.1%. According to MMA, there have been 30 new municipal defaults through 6/30/21 which is down 20% from the same timeframe last year. Overall, however defaults remain low in the municipal market.

1. As of 12/2020 – Comparing yield to worst divided by modified duration to worst for the ICE BofA Broad US Taxable Municipal Securities Index and the ICE BofA US Corporate Index over the last 10 years. Past performance is no guarantee of future results, which will vary. It is not possible to invest directly in an index. 4 KEY MARKET METRICS | MARKET RECAP

Municipal Market Monthly Update

TECHNICAL BACKDROP SUPPLY: July issuance came in at $34 billion, down 29% month-over-month, with net issuance at -$3 billion. YTD gross and net issuance through the month-end was +$262 billion and +$83 billion, respectively.

2021 Monthly Gross Issuance ($B)

$47.1 $47.7 $35.8 $36.3 $27.9 $33.3 $33.9

DEMAND: Muni flows were positive in July, with inflows averaging $2.0 billion per week.

2021 Monthly Municipal Fund Flows ($B)

$12.4 $8.8 $9.4 $7.4 $7.1 $6.3 $5.5

Source: Barclays Research, as of 07/31/21.

5 KEY MARKET METRICS | MARKET RECAP

AAA-Rated Municipal Yield Curve (%)

As of 07/31/21 0.06 0.06 0.06 0.06 0.14 0.25 0.37 0.48 0.56 0.68 0.79 0.84 0.91 0.95 1.00 1.05 1.10 1.13 1.15 1.18 1.20 1.22 1.26 1.29 1.32 1.34 1.37 1.39 1.40 1.41 1.41 1.43 As of 06/30/21 0.09 0.10 0.14 0.16 0.25 0.39 0.51 0.61 0.70 0.83 0.94 1.00 1.07 1.11 1.16 1.20 1.25 1.28 1.30 1.33 1.35 1.38 1.41 1.44 1.48 1.49 1.52 1.54 1.55 1.55 1.56 1.57 As of 07/31/20 0.09 0.09 0.10 0.12 0.13 0.19 0.26 0.35 0.41 0.48 0.57 0.64 0.73 0.79 0.89 0.96 1.03 1.08 1.11 1.14 1.17 1.20 1.24 1.27 1.31 1.33 1.36 1.39 1.40 1.41 1.43 1.44

Source: Bloomberg, as of 07/31/21. The yield curve is a visual representation of the yield of AAA-Rated Municipal Bonds at varying maturities. Past performance is not indicative of future results.

6 KEY MARKET METRICS | MARKET RECAP

AAA-Rated Municipal/Treasury Yield Ratio (%)

Muni/Treasury Trailing 5-Yr Tenor Ratio Median

5 Yr 54% 75%

10 Yr 69% 86%

30 Yr 75% 99%

5 Yr Muni/Treasury Ratio 10 Yr Muni/Treasury Ratio 30 Yr Muni/Treasury Ratio

Source: Bloomberg, as of 07/31/21. Representative indices: Bloomberg Barclays U.S. Treasury Index and Bloomberg Barclays U.S. Municipal Index. Past performance is not indicative of future results. An investment cannot be made in an index.

7 KEY MARKET METRICS | MARKET RECAP

July 2021 Tax-Equivalent Yields

4.92%

3.88% 2.01%

1.93% 1.46% 2.91% 0.81% 0.59% 0.87% U.S. Treasury Investment Grade U.S. Corporate High Yield High Yield Index Muni Index Index Corporate Index Muni Index

Source: Bloomberg, as of 07/31/21. Representative indices: Bloomberg Barclays U.S. Treasury Index, Bloomberg Barclays U.S. Corporate Bond Index, Bloomberg Barclays U.S. Municipal Index, Bloomberg Barclays U.S. High Yield Corporate Index, and Bloomberg Barclays High Yield Municipal Index. Assumes 37% federal tax rate and 3.8% net investment income tax. Yield to worst is computed by using the lower of either the yield to maturity or the yield to call on every possible call date. Past performance is not indicative of future results. An investment cannot be made in an index. Figures may not sum up due to rounding.

8 KEY MARKET METRICS | MARKET RECAP

Investment Grade Municipal Market Spreads & Performance

AA-, A-, and BBB-Rated Municipal Index Yield Spreads Over AAA-Rated Municipal Index Yield AA A BBB

58 26 5

Source: Bloomberg as of 07/31/21. Monthly data. Representative indices: Bloomberg Barclays Municipal AAA Index, Bloomberg Barclays Municipal AA Index, Bloomberg Barclays Municipal A Index, and Bloomberg Barclays Municipal BBB Index. Past performance is not indicative of future results. An investment cannot be made in an index. Returns (%), as of July 31, 2021 High Grade Municipals, Returns by Sector

Number Price Coupon MTD Total Past Past Year Past July 2021 (%) Year-to-Date 2021 (%) Issues Return Return Return 3m 6m to Date 12m Leasing 1.01 Hospital 3.16 Municipal Bond Index 55,929 0.51 0.32 0.83 1.41 1.25 1.90 3.29 Hospital 0.99 Leasing 2.88 1 Year (1-2) 4,349 -0.24 0.36 0.13 0.16 0.27 0.43 0.66 IDR/PCR (ex-tobacco) 0.91 Transportation 2.78 3 Year (2-4) 7,071 0.00 0.34 0.34 0.37 0.51 0.75 1.19 Special Tax 0.90 Tobacco 2.49

5 Year (4-6) 6,036 0.33 0.33 0.65 0.68 0.49 0.82 1.72 Education 0.89 IDR/PCR (ex-tobacco) 2.13 Transportation 0.83 Special Tax 2.02 7 Year (6-8) 5,690 0.50 0.32 0.82 0.93 0.56 1.00 2.21 Water & Sewer 0.81 Education 2.02 10 Year (8-12) 10,711 0.64 0.31 0.95 1.30 0.94 1.52 2.81 Tobacco 0.79 Housing 1.45 15 Year (12-17) 10,832 0.74 0.30 1.05 1.73 1.50 2.30 4.10 Housing 0.76 Electric 1.23 20 Year (17-22) 5,723 0.68 0.31 0.99 1.93 1.79 2.79 4.70 Electric 0.75 Water & Sewer 1.15 Long Bond (22+) 5,517 0.76 0.31 1.06 2.48 2.42 3.42 5.56 Resource Recovery 0.22 Resource Recovery 0.39

MTD: Month to Date, Source: Barclays Research, as of 07/31/21. Representative indices: Bloomberg Barclays Municipal Index, Bloomberg Source: Barclays Research, as of 07/31/21. Representative indices: Bloomberg Barclays Municipal 1 Yr 1-2, Bloomberg Barclays Municipal 3 Yr 2-4, Bloomberg Barclays Municipal 5 Yr 4-6, Bloomberg Barclays Municipal 10 Yr Barclays Municipal AAA Index and Bloomberg Barclays High Yield Municipal 8-12, Bloomberg Barclays Municipal 20 Yr 17-22, and Bloomberg Barclays Municipal Long 22+ Yr. Past performance is not indicative of future Index. Past performance is not indicative of future results. An investment cannot results. An investment cannot be made in an index. be made in an index. 9 KEY MARKET METRICS | MARKET RECAP

High Yield Municipal Market Spreads & Performance

High Yield Municipal Index Yields Minus Investment Grade Ratio of High Yield Municipal Index to Corporate High Yield Municipal Index Yields Index Yield-to-Worst Avg: 296 bp Avg: 79% Min: 113 bp Min: 44% 7/31/2021 75% Max: 636 bp Max: 136% 7/31/2021 Spread 205 bp

Source: Barclays Research, as of 07/31/21. Representative indices: High Yield Municipal Index: Bloomberg Barclays Source: Barclays Research, as of 07/31/21. Representative indices: Municipal High Yield Index: Bloomberg High Yield Municipal Index; Investment Grade Municipal Index: Bloomberg Barclays Municipal Index. Past performance Barclays High Yield Municipal Index; Corporate High Yield Index: Bloomberg Barclays U.S. Corporate High Yield is not indicative of future results. An investment cannot be made in an index. Index. Past performance is not indicative of future results. An investment cannot be made in an index. Yield-to-worst (YTW) is the lowest potential yield that can be received on a bond without the issuer actually defaulting. The YTW is calculated by making worst-case scenario assumptions on the issue by calculating the return that would be received if the issuer uses provisions, including prepayments, calls or sinking funds. Returns (%), as of July 31, 2021 High Yield Municipals, Returns by Sector

MTD (%) (%) Number Price Coupon Past Past Year Past July 2021 Year-to-Date 2021 Total Issues Return Return 3m 6m to Date 12m Return Leasing 1.86 Leasing 14.39 Education 1.50 Transportation 9.45 High Yield Muni 5,041 0.85 0.35 1.20 3.66 5.20 7.40 12.65 Hospital 1.40 Education 9.30

High Yield Muni Special Tax 1.31 IDR/PCR (ex-tobacco) 7.64 5,009 0.84 0.36 1.20 3.59 5.38 7.53 12.75 Ex-Puerto Rico Housing 1.25 HY Tobacco 7.08 High Yield Muni Water & Sewer 1.13 Hospital 6.47 69 0.94 0.27 1.21 4.16 4.10 6.60 12.07 Puerto Rico Transportation 1.09 Special Tax 6.35 MTD: Month to Date, Source: Barclays Research, as of 07/31/21. Representative indices: Bloomberg Barclays High IDR/PCR (ex-tobacco) 0.92 Housing 6.27 Yield Municipal Index, Bloomberg Barclays High Yield Municipal Ex-Puerto Rico Index, and Bloomberg Barclays High Yield Municipal Puerto Rico Index. Past performance is not indicative of future results. An investment cannot be made Resource Recovery 0.75 Resource Recovery 4.40 in an index. HY Tobacco 0.73 Water & Sewer 3.84 Electric 0.50 Electric 3.37

Source: Barclays Research, as of 07/31/21. Representative index: Bloomberg Barclays High Yield Municipal Index. Past performance is not indicative of future results. An investment cannot be made in an index. 10 KEY MARKET METRICS | MARKET RECAP

Taxable Municipal Market Spreads & Performance Taxable Municipal Index Option-Adjusted Spread vs. U.S. Corporate Index Option-Adjusted Spread (bps)

Taxable Muni U.S. Corporate

8 86 Source: Bloomberg as of 07/31/21. Monthly data. Representative indices: Bloomberg Barclays Taxable Municipal Index and Bloomberg Barclays U.S. Corporate Index . The option-adjusted spread (OAS) is the measurement of the spread of a fixed income security rate and the risk-free rate of return, which is adjusted to take into account an embedded option. Past performance is not indicative of future results. An investment cannot be made in an index. Returns (%), as of July 31, 2021 Taxable Municipals, Returns by Sector

MTD Year Year-to- Year-to- Number Price Coupon Past Past Past July 2021 July 2021 Total to Date 2021 Date 2021 Issues Return Return 3m 6m 12m (%) (%) Return Date (%) (%) Taxable Health 2.76 2.19 Tax 1.68 2.13 8,819 1.37 0.28 1.65 4.04 1.98 1.95 2.64 Leasing COPS & Muni Hospitals 2.36 2.66 1.66 2.25 Appropriations MTD: Month to Date, Source: Barclays Research, as of 07/31/21. Representative index: Bloomberg Power 2.34 1.78 GO - Local 1.63 2.38 Barclays Taxable Municipal Index. Past performance is not indicative of future results. An Education 2.28 1.57 Pollution Control 1.58 0.95 investment cannot be made in an index. Toll & Turnpike 2.22 1.16 Misc 1.44 2.36 Transportation 2.04 4.28 Multi-Family Housing 1.10 2.04 Industrial Development Water & Sewer 1.96 1.54 0.88 2.33 Revenue Utilities - Other 1.94 0.85 Single Family Housing 0.65 1.41 Airport 1.94 3.85 Pre-Refunded 0.33 0.36 Tobacco 1.75 4.90 ETM 0.15 0.38 GO - State 1.68 2.78 Source: ICE Indices, as of 07/31/21. Representative index: ICE BofA U.S. Taxable Municipal Securities Plus Index (TXBL). Past performance is not indicative of future results. An investment cannot be made in an index.

11 How Active Municipal ETFs Can Serve As A Transition Management Solution

Supplementing a laddered portfolio Active outperformed passive, but MMIT outperformed both without a material with MMIT has historically not increase in risk only helped to reduce drag, but 3-Year Risk/Return also increased total return and 6.50 diversification without increasing volatility. 6.00

Investors seeking to source new bonds for their MMIT laddered municipal fixed income strategies are 5.50 Average Active facing significant headwinds. While the supply Interm. Muni ETF side has been muted, demand is off the charts. Combined with summertime seasonality, a 5.00 persistent low-rate environment, and dealer

inventories shrinking, quickly sourcing adequate 3-Year Annualized Total Return Average Passive Interm. Muni ETF replacement bonds is challenging. 4.50 Municipal bond ETFs can help with transition 3.50 4.00 4.50 management and ease potential disruption by 3-Year Standard Deviation (Risk) providing replacement income and reducing cash drag. However, investors should carefully evaluate Standard risk, return, and liquidity characteristics of 3-Year Trailing Risk/Return Metrics Total Return Sharpe Ratio Alpha municipal ETFs. Deviation 5.73 3.93 1.12 0.65 Active ETFs, like IQ MacKay Municipal Intermediate MMIT ETF (MMIT), often overshadowed by passive Average Passive Intermediate Term Muni ETF 4.78 3.92 0.88 -0.26 strategies, can provide similar benefits to their passive counterparts, but may introduce Average Active Intermediate Term Muni ETF 5.40 4.27 0.96 0.08 opportunities for added alpha and portfolio diversification. Source: Morningstar as of 5/31/21. Risk/Return metrics are annualized and represent the period from 5/31/18-5/31/21. Past performance is not indicative of future results.

Download our guide to learn how active municipal ETFs, like MMIT, can serve as a transition management solution.

12 Solving for the Cash Conundrum with Short-term Municipal Bonds The economic uncertainty ignited by the Short-term municipals offer the best yield-per-unit-of-risk versus key short-term fixed Coronavirus outbreak sparked a flight to quality and unparalleled levels of cash flowing out of risk income sectors assets and into bank accounts, CDs, and money 3.00 0.45 market funds. Many investors, fearful of the impact of market volatility, chose to sacrifice 0.40 2.50 return for asset classes that they believed 0.38 provided a safe haven. As many investors start to 0.35 get off the sidelines and back into assets with 2.00 1.86 0.30 greater return potential, it’s our perspective that 1.72 0.28 these investors can find an optimal risk-return 2.50 0.25 balance in short-term municipal bonds. Yields on certificates of deposit and money 2.00 0.20 0.18 1.07 market accounts and funds are near zero and the 0.15 typical asset classes for stepping out of cash (i.e., 1.50 0.66 short-term taxable bond sectors) currently lack 0.52 0.10 the risk-return balance that investors may want in 1.00 this type of allocation. 0.19 0.05

Short-term municipal bonds, however, provide 0.00 0.00 high credit quality with lower credit risk compared Short-Term Municipals Short-Term Short-Term to taxable corporate bonds. We continue to (Tax-Adjusted) Corporate Bonds Government Bonds believe that municipal bonds should be part of a diversified asset allocation, and that the current Tax-Equivalent Yield Risk (5-Year Standard Deviation) Yield Per Unit of Risk environment has made active management more Source: Bloomberg Barclays and Morningstar as of 6/3/21. Tax-equivalent yield is based on an equally weighted national average federal and state (top bracket) important than ever. By taking advantage of the income tax rate for single filers (37% federal, plus 3.8% net investment income tax, plus 6.31% state average), and risk is represented by standard deviation price weaknesses, rate changes, and market over the 5-year period ending 5/31/21. Short-term corporate bonds are represented by BBgBarc US Corp 1-3 Yr TR USD; Short-term government bonds are dislocations, active muni bond managers remain represented by BBgBarc US Govt 1-3 Yr TR USD. Yields are yield to worst. Risk is represented by standard deviation. Past performance is no guarantee of future best positioned to outperform during these results, which will vary. It is not possible to invest directly in an index. extraordinary market conditions.

Check out our latest blog post for more information on the current cash conundrum and why short-term municipals make sense today.

13 NORTH | CENTRAL | SOUTH | WEST

2021 State Overviews

As of 3/31/21

As state governments across the country AA AA ended Fiscal Year 2019, many reported AA AA strong revenue collections that exceeded AA AAA budget projections and allowed for AA AA budget strengthening. According to the AA AA AA A Pew Charitable Foundation, these AA revenues were primarily driven by a A surge in personal income tax AAA AA collections following the Tax Cut and AA AAA AAA Jobs Act of 2017.1 State reserves, or AA AAA rainy day funds, continue to trend AA AAA higher with balances exceeding AAA pre-recession levels. Entering FY 2020, AAA AA state governments have used these AA AA AA increased revenues to address internal AAA AA AA needs, including education funding and AA social programs. Additionally, as a AA AAA federal infrastructure program has been slow to materialize, states have taken AAA independent actions to address infrastructure needs with dedicated programs funded by state revenues and designated tax increases to finance AA Ratings scale the backlog.

14 NORTH | CENTRAL | SOUTH | WEST

North

The northern state budgets were heavily impacted early in 2020 as Pennsylvania FY 2021 $37.1B budget is trending in line with revenue the initial COVID-19 outbreak was concentrated in the region. collections, following the use of federal CARES Act funds and accum- ulated reserves to manage FY 2020 $2.7 deficit due to COVID-related Connecticut’s initial FY 2021 revenue losses. As of December 2020, Pennsylvania reports that General budget projected a General Fund collections were 2.6% above estimates as sales and personal AA Fund deficit of $2.2B when AA income tax receipts are now trending double-digit ahead of 2019. AA the state passed its $20.1B FY 2021 budget. Despite After a five month delay,Massachusetts the ongoing Coronavirus signed a $45.9B FY 2021 budget that included a $1.35B withdrawal pandemic, Connecticut now from the Stabilization Fund to protect core government services amidst AA appears on track to end the the COVID-19 pandemic. Through December, state tax collections are AA AA A current fiscal year with a 2.7% ahead of FY 2020 collections, despite projections that tax $70M surplus, as latest collections would be 3.9% below 2020 levels. revenue collections show A personal income tax collections (the state’s largest AAA FY 2021 Mid-Year Major Revenue Projected tax revenue source) +3.5% AAA General Fund Revenue Sources Reserve Funds ahead of budget projections. Budget Projections (Projected Change FY 2020 The State of New Jersey’s baseline FY 2021 $32.7B budget (% Change) from 2020) (as % of Revenues) projected revenues $5.6B lower than originally forecasted by the Governor prior to the onset of COVID-19. New Jersey was able CT $20.1B $19.8B Personal Income Tax: 44% $3.0B to balance its budget with the passage of the expansion of a 3.1% 3.5% 16.5% millionaire’s tax, deferral of appropriations and the ability to issue first-time COVID Emergency Bonds. The State is still projecting a NJ $32.7B $33.8B Personal Income Tax: 41% $2.0B combined $4.3B revenue shortfall through the end of FY 2021, -15.2% -10.3% 4.1% however, December revenue collections trended higher than 2019 levels and the state anticipates using its $2.4B budget surplus, NY $73.2B $70.9B Personal Income Tax: 50% $8.9B the largest in over a decade, as an insurance policy against any -5.6% -8.5% -1.44% 11.5% economic damage from a potential second wave of COVID-19. MA $45.8B $45.8B Personal Income Tax: 41% $2.2B ’s $73.15B General Fund is expected to remain in balance 5.2% 4.4% 5.3% in FY 2021, despite a 5.6% forecast reduction in revenues and sizable projected out-year gaps. Projections for tax receipts are down by PA $37.2B $37.1B Personal Income Tax: 41% $340M $13.5B (a 15.3% reduction) since the February plan, however, recent 5.5% 5.5% 1.1% tax revenues have recovered and are trending at 2019 levels as the economy has reopened. The State maintains good reserves equal to All state budget links are on the NASBO website. CT: Governor’s 2020-2021 Budget Plan 10% of its General Fund budget with numerous funds available to draw NJ: FY2021 Revised Budget Proposal FY2020 Budget in Brief Budget Breakdown upon as well the strong market access for short-term borrowing needs. NY: FY 2020 Executive Budget PA: Revenue Estimate 2020 15 NORTH | CENTRAL | SOUTH | WEST

State Profiles

CONNECTICUT DELAWARE MAINE

Capital City Governor Capital City Governor Capital City Governor Hartford (D) Dover (D) Augusta (D)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 1.97% as % of market issuance (YTD)1 0.14% as % of market issuance (YTD)1 0.35%

# of issuers2 455 # of issuers2 164 # of issuers2 364

Pension funded ratio (2018)3 46.67% Pension funded ratio (2018)3 85.11% Pension funded ratio (2018)3 84.50%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aa3 Moody’s Aaa Moody’s Aa2 S&P A+ S&P AAA S&P AA Fitch A+ Fitch AAA Fitch —

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 6.99% State level 6.60% State level 7.15% Federal and state combined 43.99% Federal and state combined 43.60% Federal and state combined 44.15%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.83% 2% 3.80% 2% 3.84% 3% 5.75% 3% 5.70% 3% 5.76% 4% 7.66% 4% 7.60% 4% 7.68%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 16 NORTH | CENTRAL | SOUTH | WEST

State Profiles

MARYLAND MASSACHUSETTS NEW HAMPSHIRE

Capital City Governor Capital City Governor Capital City Governor Annapolis (R) Boston Charlie Baker (R) Concord (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 2.00% as % of market issuance (YTD)1 3.29% as % of market issuance (YTD)1 0.17%

# of issuers2 468 # of issuers2 908 # of issuers2 295

Pension funded ratio (2018)3 70.36% Pension funded ratio (2018)3 60.59% Pension funded ratio (2018)3 64.70%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aaa Moody’s Aa1 Moody’s Aa1 S&P AAA S&P AA S&P AA Fitch AAA Fitch AA+ Fitch AA+

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 5.75% State level 5.00% State level 5.00% Federal and state combined 42.75% Federal and state combined 42.00% Federal and state combined 42.00%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.74% 2% 3.69% 2% 3.69% 3% 5.61% 3% 5.54% 3% 5.54% 4% 7.48% 4% 7.38% 4% 7.38%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 17 NORTH | CENTRAL | SOUTH | WEST

State Profiles

NEW JERSEY NEW YORK PENNSYLVANIA

Capital City Governor Capital City Governor Capital City Governor Trenton (D) Albany (D) Harrisburg (D)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 3.49% as % of market issuance (YTD)1 11.56% as % of market issuance (YTD)1 4.01%

# of issuers2 2,039 # of issuers2 3,654 # of issuers2 4,308

Pension funded ratio (2018)3 38.41% Pension funded ratio (2018)3 98.04% Pension funded ratio (2018)3 54.75%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s A3 Moody’s Aa2 Moody’s Aa3 S&P BBB+ S&P AA+ S&P A+ Fitch A- Fitch AA+ Fitch AA-

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 10.75% State level 8.82% State level 3.07% Federal and state combined 47.75% Federal and state combined 45.82% Federal and state combined 40.07%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent zyields6

2% 4.13% 2% 3.97% 2% 3.56% 3% 6.19% 3% 5.95% 3% 5.34% 4% 8.26% 4% 7.94% 4% 7.13%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 18 NORTH | CENTRAL | SOUTH | WEST

State Profiles

RHODE ISLAND VERMONT

Capital City Governor Capital City Governor Providence Daniel McKee (D) Montpelier (R)

Total issuance, Total issuance, as % of market issuance (YTD)1 0.40% as % of market issuance (YTD)1 0.10%

# of issuers2 180 # of issuers2 116

Pension funded ratio (2018)3 54.20% Pension funded ratio (2018)3 64.23%

State GO ratings4 State GO ratings4

Moody’s Aa2 Moody’s Aa1 S&P AA S&P AA+ Fitch AA Fitch AA+

Top marginal rates5 Top marginal rates5

State level 5.99% State level 8.75% Federal and state combined 42.99% Federal and state combined 45.75%

Tax equivalent yields6 Tax equivalent yields6

2% 3.76% 2% 3.96% 3% 5.64% 3% 5.95% 4% 7.52% 4% 7.93%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 19 NORTH | CENTRAL | SOUTH | WEST

Central

FY 2021 budgets for central region states were built on Kentucky is expected to have a small revenue shortfall of conservative revenue assumptions based on the continuing approximately 0.8% from FY 2021 budgeted numbers, largely effects of the COVID-19 pandemic. In several cases, however, due to income and sales taxes that have been higher than projected. revenues have trended above initial projections resulting in Individual income and sales taxes are projected to be 1.4% and 0.8% less reliance on federal stimulus to close operating deficits. higher than the prior fiscal year, boosted by federal stimulus dollars and taxes collected on e-commerce. The State of Michigan’s FY 2021 total revenues AAA are now forecasted to FY 2021 Mid-Year Major Revenue Projected be higher than budgeted General Fund Revenue Sources Reserve Funds Budget Projections (Projected Change FY 2020 AA as major income tax (% Change) from 2020) (as % of Revenues) AA and consumption tax revenues collections MI $11.0B $11.6B Personal Income Tax: 66% $825M continue to trend above AA 1.9% 1.6% 7.5% projections. This is Consumption Tax: 23% AA expected to result in a 2.5% AAA surplus and deposit to the State’s rainy day IL $42.9B $39.2B Income Tax: 47% $0 fund, bringing it to 7.5% 10.3% -3.4% 0% of General Fund revenues. Sales Tax: 17% -12.7% The State of Illinois FY 2020 budget presented base revenues losses $4B lower than the pre-COVID forecast. The state was OH $35.9B $35.6B Sales and Use Tax: 31% $2.7B able to balance its budget with a combination on federal stimulus 5.9% 1.5% 7.5% CARES Act funds and first-time borrowing from the Federal Reserve Personal Income Tax: 25% Municipal Liquidity Facility. As state taxes now report higher than 5.0% forecast, the state has now narrowed its projected FY 21 deficit KY $11.9B $11.8B Individual Income Tax: $460M despite the failed passage of a graduated income tax in the -0.9% 41% 3.9% November 2020 election. A series of education funding cuts in 2.3% Sales and Use Tax: 36% Ohio have recently been reversed by Governor Mike DeWine, also a result of higher than projected tax revenues. General Fund 1.5%

tax revenues are trending above estimates with personal income All state budget links are on the NASBO website. MI: Executive Budget Current and Previous State Budgets tax revenues over 7% above estimates. The state still anticipates Monthly Financial Report IL: 2021 Budget Highlights Illinois Economic and Fiscal Policy Report it will maintain a very strong balance of $2.7B in its rainy day fund through the end of FY 2021. 20 NORTH | CENTRAL | SOUTH | WEST

State Profiles

ILLINOIS IOWA INDIANA

Capital City Governor Capital City Governor Capital City Governor Springfield J.B. Pritzker (D) Des Moines (R) Indianapolis (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 2.51% as % of market issuance (YTD)1 1.02% as % of market issuance (YTD)1 1.44%

# of issuers2 4,746 # of issuers2 2,579 # of issuers2 4,096

Pension funded ratio (2018)3 38.98% Pension funded ratio (2018)3 83.61% Pension funded ratio (2018)3 66.54%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Baa2 Moody’s — Moody’s — S&P BBB- S&P — S&P — Fitch BBB- Fitch — Fitch —

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 4.95% State level 8.53% State level 3.23% Federal and state combined 41.95% Federal and state combined 45.53% Federal and state combined 40.23%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.69% 2% 3.95% 2% 3.57% 3% 5.53% 3% 5.92% 3% 5.36% 4% 7.37% 4% 7.89% 4% 7.15%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 21 NORTH | CENTRAL | SOUTH | WEST

State Profiles

KANSAS KENTUCKY MICHIGAN

Capital City Governor Capital City Governor Capital City Governor Topeka (D) Frankfort (D) Lansing (D)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 0.94% as % of market issuance (YTD)1 0.80% as % of market issuance (YTD)1 1.98%

# of issuers2 2,297 # of issuers2 1,971 # of issuers2 3,698

Pension funded ratio (2018)3 68.88% Pension funded ratio (2018)3 44.87% Pension funded ratio (2018)3 63.22%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s — Moody’s — Moody’s Aa1 S&P — S&P — S&P AA Fitch — Fitch — Fitch AA

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 5.70% State level 5.00% State level 4.25% Federal and state combined 42.70% Federal and state combined 42.00% Federal and state combined 41.25%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.74% 2% 3.69% 2% 3.64% 3% 5.61% 3% 5.54% 3% 5.46% 4% 7.48% 4% 7.38% 4% 7.28%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 22 NORTH | CENTRAL | SOUTH | WEST

State Profiles

MINNESOTA MISSOURI NEBRASKA

Capital City Governor Capital City Governor Capital City Governor St. Paul (D) Jefferson City (R) Lincoln (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 0.99% as % of market issuance (YTD)1 1.38% as % of market issuance (YTD)1 0.70%

# of issuers2 3,638 # of issuers2 3,674 # of issuers2 2,499

Pension funded ratio (2018)3 81.83% Pension funded ratio (2018)3 77.77% Pension funded ratio (2018)3 90.33%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aa1 Moody’s Aaa Moody’s — S&P AAA S&P AAA S&P — Fitch AAA Fitch AAA Fitch —

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 9.85% State level 5.40% State level 6.84% Federal and state combined 46.85% Federal and state combined 42.40% Federal and state combined 43.84%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 4.05% 2% 3.72% 2% 3.82% 3% 6.08% 3% 5.58% 3% 5.73% 4% 8.11% 4% 7.43% 4% 7.64%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 23 NORTH | CENTRAL | SOUTH | WEST

State Profiles

OHIO WEST VIRGINIA WISCONSIN

Capital City Governor Capital City Governor Capital City Governor Columbus Mike DeWine (R) Charleston (R) Madison (D)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 2.21% as % of market issuance (YTD)1 0.39% as % of market issuance (YTD)1 2.00%

# of issuers2 3,422 # of issuers2 721 # of issuers2 2,984

Pension funded ratio (2018)3 75.85% Pension funded ratio (2018)3 82.26% Pension funded ratio (2018)3 96.45%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aa1 Moody’s Aa2 Moody’s Aa1 S&P AA+ S&P AA- S&P AA Fitch AA+ Fitch AA Fitch AA+

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 4.80% State level 6.50% State level 7.65% Federal and state combined 41.80% Federal and state combined 43.50% Federal and state combined 44.65%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.68% 2% 3.80% 2% 3.88% 3% 5.51% 3% 5.69% 3% 5.82% 4% 7.35% 4% 7.59% 4% 7.76%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 24 NORTH | CENTRAL | SOUTH | WEST

South

Southern state budgets were reviewed and rebalanced as the Texas has taken a double hit from the COVID-19 pandemic as well as impact from COVID economic losses continued in 2020. the collapse in oil prices, which has negatively impacted both sales and oil and gas-related taxes. Having entered the pandemic with strong The State of Florida’s West reserves and favorable demographic trends, the state is well- Virginia Virginia AA– budget originally AAA positioned to confront whatever challenges may lie ahead. anticipated general North Carolina Tennessee AAA revenues of $34.7B in AAA Arkansas South Carolina FY 2021. As pandemic- FY 2021 Mid-Year Major Revenue Projected AA AA AA+ Georgia General Fund Revenue Sources Reserve Funds Alabama related economic Mississippi AAA Budget Projections (Projected Change AA AA shutdowns continued FY 2020 Louisiana (% Change) from 2020) AA– (as % of Revenues) Texas through the year, the AAA Florida AAA state revised down its FL $34.7B $32.5B Sales Tax: 76.8% $5.6B estimate substantially in 10.5% 1.5% 17.8% August. Through mid- fiscal year, revenues GA $26.6B $24.8B Individual Income: 50.2% $2.7B show resiliency as sales tax collections are now trending down only 4.5% 0.5% 10.6% 3% from 2019 high levels. Despite a relatively high reliance on tourism, OK $6.8B $6.1B Individual/Corporate/ $636M the state continues to benefit from favorable net migration, with some 8.6% Income Tax: 44.4% 10.2% evidence this trend is accelerating in a post-pandemic world. 1.5% The State of Georgia reduced its estimated FY 2021 General Fund TX $121.5B $112.4B Sales Tax 54.4% $10.0B receipts to $24.8B from the original budget of $26.6B. Despite the 2020-21 -2.0% 17.6% reduction, the State remains well-positioned given its proven fiscal biennium conservatism and solid reserves. 6.1%

The State of Oklahoma, with a relatively high reliance on the energy All state budget links are on the NASBO website. OK: Financial Data Tables 2021 Budget 2022 Budget sector, budgeted for $6.8B in FY 2021 general fund revenue. The State will look to its historically strong reserves levels to cover the FY 2020 and FY 2021 shortfall.

The State of Texas projects in the 2022-23 biennial review that General Fund revenues will be down to $112.4B from the previously projected $121.5B projected at the start of FY 2020-21 biennium. 25 NORTH | CENTRAL | SOUTH | WEST

State Profiles

ALABAMA ARKANSAS FLORIDA

Capital City Governor Capital City Governor Capital City Governor Montgomery (R) Little Rock (R) Tallahassee Ron DeSantis (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 1.33% as % of market issuance (YTD)1 0.66% as % of market issuance (YTD)1 2.97%

# of issuers2 2,180 # of issuers2 1,588 # of issuers2 3,763

Pension funded ratio (2018)3 71.90% Pension funded ratio (2018)3 81.22% Pension funded ratio (2018)3 79.86%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aa1 Moody’s Aa1 Moody’s Aaa S&P AA S&P AA S&P AAA Fitch AA+ Fitch — Fitch AAA

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 5.00% State level 5.90% State level 0.00% Federal and state combined 42.00% Federal and state combined 42.90% Federal and state combined 37.00%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.69% 2% 3.75% 2% 3.38% 3% 5.54% 3% 5.63% 3% 5.07% 4% 7.38% 4% 7.50% 4% 6.76%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 26 NORTH | CENTRAL | SOUTH | WEST

State Profiles

GEORGIA LOUISIANA MISSISSIPPI

Capital City Governor Capital City Governor Capital City Governor Atlanta (R) Baton Rouge (D) Jackson (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 1.53% as % of market issuance (YTD)1 1.12% as % of market issuance (YTD)1 0.34%

# of issuers2 1,993 # of issuers2 1,749 # of issuers2 1,307

Pension funded ratio (2018)3 80.08% Pension funded ratio (2018)3 67.26% Pension funded ratio (2018)3 62.60%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aaa Moody’s Aa3 Moody’s Aa2 S&P AAA S&P AA- S&P AA Fitch AAA Fitch AA- Fitch AA

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 5.75% State level 6.00% State level 5.00% Federal and state combined 42.75% Federal and state combined 43.00% Federal and state combined 42.00%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.74% 2% 3.76% 2% 3.69% 3% 5.61% 3% 5.64% 3% 5.54% 4% 7.48% 4% 7.52% 4% 7.38%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 27 NORTH | CENTRAL | SOUTH | WEST

State Profiles

NORTH CAROLINA OKLAHOMA SOUTH CAROLINA

Capital City Governor Capital City Governor Capital City Governor Raleigh (D) (R) Columbia Henry McMaster (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 1.82% as % of market issuance (YTD)1 0.70% as % of market issuance (YTD)1 1.06%

# of issuers2 1,087 # of issuers2 1,733 # of issuers2 869

Pension funded ratio (2018)3 88.64% Pension funded ratio (2018)3 81.34% Pension funded ratio (2018)3 55.07%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aaa Moody’s Aa2 Moody’s Aaa S&P AAA S&P AA S&P AA+ Fitch AAA Fitch — Fitch AAA

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 5.25% State level 5.00% State level 7.00% Federal and state combined 42.25% Federal and state combined 42.00% Federal and state combined 44.00%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.71% 2% 3.69% 2% 3.83% 3% 5.56% 3% 5.54% 3% 5.75% 4% 7.41% 4% 7.38% 4% 7.66%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 28 NORTH | CENTRAL | SOUTH | WEST

State Profiles

TENNESSEE TEXAS VIRGINIA

Capital City Governor Capital City Governor Capital City Governor Nashville Bill Lee (R) Austin (R) Richmond (D)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 2.53% as % of market issuance (YTD)1 9.83% as % of market issuance (YTD)1 1.82%

# of issuers2 1,352 # of issuers2 6,915 # of issuers2 1,219

Pension funded ratio (2018)3 97.73% Pension funded ratio (2018)3 70.62% Pension funded ratio (2018)3 79.01%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aaa Moody’s Aaa Moody’s Aaa S&P AAA S&P AAA S&P AAA Fitch AAA Fitch AAA Fitch AAA

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 1.00% State level 0.00% State level 5.75% Federal and state combined 38.00% Federal and state combined 37.00% Federal and state combined 42.75%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.44% 2% 3.38% 2% 3.74% 3% 5.15% 3% 5.07% 3% 5.61% 4% 6.87% 4% 6.76% 4% 7.48%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 29 NORTH | CENTRAL | SOUTH | WEST

West

Western states cautiously balanced their budgets based on revenue In the State of Nevada, significant declines in travel and tourism due losses and expenditure cuts as the pandemic continued to impact the COVID-related economic shutdown resulted in projected 2.1% state economies and budgets. decline in the FY 2021 budget. Major state revenues are projected to decline, including gaming taxes down 17.7% in FY 2020 and are too California’s FY 2021 $139.7B budget projected to decline 11.5% in FY 2021. Through December, state Washington when enacted projected a 6.2% revenues are treading above budget projected losses with sales tax AA+ Montana reduction on General Fund revenues AA North Dakota up 3.3% and gaming taxes recovering up 3.0%. Oregon led by a potential 18.8% decline in AA+ personal income taxes. The FY South Dakota 2021 budget was balanced by a FY 2021 Mid-Year Major Revenue Projected combination of draw on reserves General Fund Revenue Sources Reserve Funds Nevada funds, expenditure reductions and Budget Projections (Projected Change AA+ FY 2020 deferrals. Through mid-year, as of (% Change) from 2020) AAA Colorado (as % of Revenues) California January 2021, General Fund revenue AA– collections exceeded budget CA $139.7B $161.4B Personal Income Tax: $12.5B estimates by 10%, led by a 12% -6.2% 10% 5% 7.9% Arizona New Mexico increase in personal income tax Sales and Use Tax: AA receipts and a 5% increase in sales -2.2% Alaska and use taxes. Governor Newsom AA– has released his budget for FY AZ $11.6B $12.2B Personal Income Tax: $1.1B Hawaii 2021-2022, a budget that benefits 2.3% 19.8% 9.1% AA+ from a $34B surplus in reserves 9% including a $15.6B rainy day fund. Sales and Use Tax: 3.7% In Arizona, Governor Ducey’s FY 2021 budget reflects lower state spending in schools and health care systems due to lower enrollment CO $12.5B $12.1B Sales and Use Tax: $1.2B rates and additional Federal Medicaid funding. Arizona received $32B 15% -5.6% 1.4% 9.7% in direct COVID Aid. Arizona’s 2019 tax reform increased sales tax Income Tax: collections from out-of-state sellers and, as of October 2020, 2020 tax -9% collections were up almost 20% year-over-year and were above forecast. NV $4.2B Sales Tax: 29.9% $466M The State of Colorado expects FY 2021 General Fund budget $4.1B appropriations to be higher than FY 2020. This was primarily due to -2.1% 2.8% -2.9% 11.2% transfers in FY 2020 from the General Fund to various cash funds Gaming Tax: 16.6% associated with emergencies, transportation, and wild fire management. -10.9% The state does expect to draw down its budget reserve fund in FY 2021 from $1.17B to $601M, back to the fund’s 2019 level. FY 2021 General All state budget links are on the NASBO website. UT: 2021 State Budget Monthly Revenue Snapshot Fund revenues through December 2020 report revenues 2.8% ahead of projections and 28% ahead of prior year collections.

30 NORTH | CENTRAL | SOUTH | WEST

State Profiles

ALASKA ARIZONA CALIFORNIA

Capital City Governor Capital City Governor Capital City Governor Juneau Mike Dunleavy (R) Phoenix (R) Sacramento (D)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 0.31% as % of market issuance (YTD)1 1.93% as % of market issuance (YTD)1 17.57%

# of issuers2 147 # of issuers2 1,343 # of issuers2 9,115

Pension funded ratio (2018)3 68.39% Pension funded ratio (2018)3 65.52% Pension funded ratio (2018)3 71.14%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aa3 Moody’s — Moody’s Aa2 S&P AA- S&P — S&P AA- Fitch A+ Fitch — Fitch AA

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 0.00% State level 8.00% State level 13.30% Federal and state combined 37.00% Federal and state combined 45.00% Federal and state combined 50.30%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.38% 2% 3.91% 2% 4.36% 3% 5.07% 3% 5.86% 3% 6.54% 4% 6.76% 4% 7.81% 4% 8.71%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 31 NORTH | CENTRAL | SOUTH | WEST

State Profiles

COLORADO HAWAII IDAHO

Capital City Governor Capital City Governor Capital City Governor Denver (D) Honolulu (D) Boise (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 2.56% as % of market issuance (YTD)1 0.11% as % of market issuance (YTD)1 0.45%

# of issuers2 2,789 # of issuers2 70 # of issuers2 524

Pension funded ratio (2018)3 58.77% Pension funded ratio (2018)3 55.48% Pension funded ratio (2018)3 92.39%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s — Moody’s Aa2 Moody’s — S&P — S&P AA+ S&P — Fitch — Fitch AA Fitch —

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 4.55% State level 11.00% State level 6.93% Federal and state combined 41.55% Federal and state combined 48.00% Federal and state combined 43.93%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.66% 2% 4.15% 2% 3.83% 3% 5.49% 3% 6.22% 3% 5.74% 4% 7.32% 4% 8.30% 4% 7.65%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 32 NORTH | CENTRAL | SOUTH | WEST

State Profiles

MONTANA NEVADA NEW MEXICO

Governor Capital City Governor Capital City Governor Capital City Michelle Lujan Helena (R) Carson City (D) Santa Fe Grisham (D) Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 0.11% as % of market issuance (YTD)1 0.42% as % of market issuance (YTD)1 0.46%

# of issuers2 795 # of issuers2 273 # of issuers2 660

Pension funded ratio (2018)3 72.56% Pension funded ratio (2018)3 75.27% Pension funded ratio (2018)3 60.97%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aa1 Moody’s Aa1 Moody’s Aa2 S&P AA S&P AA+ S&P AA Fitch AA+ Fitch AA+ Fitch —

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 6.90% State level 0.00% State level 5.90% Federal and state combined 43.90% Federal and state combined 37.00% Federal and state combined 42.90%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.82% 2% 3.38% 2% 3.75% 3% 5.74% 3% 5.07% 3% 5.63% 4% 7.65% 4% 6.76% 4% 7.10%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 33 NORTH | CENTRAL | SOUTH | WEST

State Profiles

NORTH DAKOTA OREGON SOUTH DAKOTA

Capital City Governor Capital City Governor Capital City Governor Bismarck (R) Salem (D) Pierre (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 0.32% as % of market issuance (YTD)1 1.28% as % of market issuance (YTD)1 0.21%

# of issuers2 871 # of issuers2 1,203 # of issuers2 582

Pension funded ratio (2018)3 65.19% Pension funded ratio (2018)3 82.07% Pension funded ratio (2018)3 100.02%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s — Moody’s Aa1 Moody’s — S&P — S&P AA+ S&P — Fitch — Fitch AA+ Fitch —

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 2.90% State level 9.90% State level 0.00% Federal and state combined 39.90% Federal and state combined 46.90% Federal and state combined 37.00%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.55% 2% 4.06% 2% 3.38% 3% 5.33% 3% 6.09% 3% 5.07% 4% 7.10% 4% 8.11% 4% 6.76%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 34 NORTH | CENTRAL | SOUTH | WEST

State Profiles

UTAH WASHINGTON WYOMING

Capital City Governor Capital City Governor Capital City Governor (R) Olympia (D) Cheyenne (R)

Total issuance, Total issuance, Total issuance, as % of market issuance (YTD)1 0.73% as % of market issuance (YTD)1 3.09% as % of market issuance (YTD)1 0.08%

# of issuers2 869 # of issuers2 1,840 # of issuers2 310

Pension funded ratio (2018)3 85.16% Pension funded ratio (2018)3 93.87% Pension funded ratio (2018)3 68.48%

State GO ratings4 State GO ratings4 State GO ratings4

Moody’s Aaa Moody’s Aaa Moody’s — S&P AAA S&P AA+ S&P — Fitch AAA Fitch AA+ Fitch —

Top marginal rates5 Top marginal rates5 Top marginal rates5

State level 4.95% State level 0.00% State level 0.00% Federal and state combined 41.95% Federal and state combined 37.00% Federal and state combined 37.00%

Tax equivalent yields6 Tax equivalent yields6 Tax equivalent yields6

2% 3.69% 2% 3.38% 2% 3.38% 3% 5.53% 3% 5.07% 3% 5.07% 4% 7.37% 4% 6.76% 4% 6.76%

1. Bloomberg, June 2021. 2. Electronic Municipal Market Access (EMMA), June 2021. 3. PEW, 2018. 4. Bloomberg, June 2021. 5. Tax Foundation, March 2021. 6. Tax equivalent yield assumes the current maximum state and federal income tax rate (for 2020) and the 3.8% Medicare surcharge. Tax treatment of Fund distributions vary; investors should consult a tax advisor with respect to the tax implications of an investment in a Fund that invests in tax-exempt securities. 35 ABOUT RISK All investments are subject to market risk and will fluctuate in value. A portion of a municipal fund’s income may be subject to state and local taxes or the Alternative Minimum Tax. Investments 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. High-yield securities (commonly referred to as “junk bonds”) are generally considered speculative because they present a greater risk of loss than higher-quality debt securities and may be subject to greater price volatility. High-yield municipal bonds may be subject to increased liquidity risk, as compared to other high-yield debt securities. Municipal securities risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes, which could affect the market for and value of municipal securities. Such uncertainties could cause increased volatility in the municipal securities market. Securities that are liquid at the time of purchase may subsequently become illiquid, due to events relating to the issuer of the securities, market events, economic conditions, or investor perceptions. The views and opinions expressed herein are solely those of the MacKay Municipal Managers™ team of MacKay Shields and are subject to change. Neither New York Life Investment Management LLC, nor its affiliates or representatives provide tax, legal or accounting advice. Please contact your own professionals. 6 Fund returns are net; Index returns are gross. Bloomberg Barclays Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year. High Yield Municipal Bond Blended Index consists of the Bloomberg Barclays High Yield Municipal Bond Index and the Bloomberg Barclays Municipal Bond Index weighted 60%/40% respectively which is believed to be a fair representation of the MainStay MacKay High Yield Municipal Bond I Fund’s guidelines. Bloomberg Barclays New York Municipal Bond Index is a market value-weighted index of New York investment-grade, tax-exempt, fixed-rate municipal bonds with maturities of one year or more. Bloomberg Barclays California Municipal Bond Index is a market value-weighted index of California investment-grade, tax-exempt, fixed-rate municipal bonds with maturities of one year or more. Bloomberg Barclays 3-Year Municipal Bond Index is considered representative of the broad market for investment-grade tax-exempt bonds with a maturity range of 2-4 years. Index results assume the reinvestment of all capital gain and dividend distributions. Source: Bloomberg Barclays. DEFINITIONS Active management is the use of a human element, such as a single manager, co-managers or a team of managers, to actively manage a fund’s portfolio. Active management strategies typically have higher fees than passive management. Alpha measures a fund’s risk-adjusted performance and is expressed as an annualized percentage. Credit spread reflects the difference in yield between a treasury and corporate bond of the same maturity. Duration is a measure of the sensitivity of the price of a bond to a change in interest rates. Interest rate risk is the potential that a change in overall interest rates will reduce the value of a bond. Modified Duration is inversely related to the approximate percentage change in price for a given change in yield. Duration to Worst is the duration of a bond, computed using the bond’s nearest call date or maturity, whichever comes first. This measure ignores future cash flow fluctuations due to embedded optionality. Standard deviation measures how widely dispersed returns have been over a specific period of time. A high standard deviation indicates that the range is wide, implying greater potential for volatility. Spread widening means that the difference between two bonds is increasing. Yield to worst is a measure of the lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting. The yield-to-worst metric is used to evaluate the worst-case scenario for yield at the earliest allowable retirement date. Coupon returns refer to the annual interest provided by a bond. Price returns refer to returns generated by investments due to changes in price over a period of time. MTD returns refer to returns generated on monthly basis. Credit ratings: Moody’s rates borrowers on a scale from Aaa through C. Aaa through Baa3 represent investment grade, while Ba1 through C represent non-investment grade. Standard & Poor’s rates borrowers on a scale from AAA to D. AAA through BBB represent investment grade, while BB through D represent non-investment grade. Fitch rates borrowers on a scale from AAA to D. AAA to BBB represent investment grade, while BB through D represent non-investment grade. Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasurys, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. Bloomberg Barclays U.S. Corporate High Yield Index represents the universe of fixed rate, non-investment grade debt. Bloomberg Barclays Municipal Bond Index is considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year. Bonds subject to the alternative minimum tax or with floating or zero coupons are excluded. Bloomberg Barclays High Yield Municipal Index: is an unmanaged index of municipal bonds with the following characteristics: fixed coupon rate, credit rating of Ba1 or lower or non-rated using the middle rating of Moody’s, S&P, and Fitch, outstanding par value of at least $3 million, and issued as part of a transaction of at least $20 million. In addition, the bonds must have a dated-date after December 31, 1990 and must be at least one year from their maturity date. Bloomberg Barclays Municipal Bond Illinois Index is a sub-index of the Bloomberg Barclays Municipal Bond Index and represents Illinois municipal bonds. Bloomberg Barclays Municipal Bond New Jersey Index is a sub-index of the Bloomberg Barclays Municipal Bond Index and represents NJ municipal bonds. Bloomberg Barclays Municipal Bond Hospital Index is a sub-index of the Bloomberg Barclays Municipal Bond Index and represents hospital municipal bonds. Bloomberg Barclays Municipal Bond Transportation Index is a sub-index of the Bloomberg Barclays Municipal Bond Index and represents transportation municipal bonds. Bloomberg Barclays Municipal Bond Airport Index is a sub-index of the Bloomberg Barclays Municipal Bond Index and represents airport municipal bonds. Bloomberg Barclays Taxable Municipal Index is a rules-based, market-value-weighted index engineered for the long-term taxable bond market Bloomberg Barclays U.S. Treasury Index measures the public obligations of the US Treasury with a remaining maturity of one year or more. Must be a US Treasury security. Must have at least $300 million par amount outstanding. Must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody’s, S&P, Fitch. Must be fixed rate. Must be dollar-denominated and non-convertible. Bloomberg Barclays U.S. Corporate Investment Grade Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers. Bloomberg Barclays Asset Backed Securities Index is a subset of the Barclays U.S. Aggregate Bond Index and tracks asset-backed securities with maturities of at least one year. Bloomberg Barclays U.S. MBS Index measures the performance of investment grade fixed-rate mortgage-backed pass-through securities of GNMA, FNMA, and FHLMC. ICE BofA U.S. Corporate Index: tracks the performance of U.S. dollar-denominated investment-grade corporate debt publicly issued in the U.S. domestic market. ICE BofA U.S. Taxable Municipal Securities Plus Index tracks the performance of U.S. dollar denominated taxable municipal debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market. For more information about MainStay Funds®, call 800-624-6782 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.

For more information 888-474-7725 newyorklifeinvestments.com

“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by 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.

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