EXPENSE LIMITATION AGREEMENT
Exhibit
h 5 b
|
NEW YORK LIFE INVESTMENT
MANAGEMENT LLC
|
000
Xxxxxxxxxx Xxxxxx
Xxxxxxxxxx,
XX 00000
xxx.xxxxxxxxxxxxx.xxx
|
As of
February 26, 2010
Board of
Trustees
00
Xxxxxxx Xxxxxx
Xxx Xxxx,
XX 00000
Re: Expense
Limitation
Dear
Board of Trustees:
(1) This
letter will confirm New York Life Investment Management LLC’s (“New York Life
Investments”) intent that, in the event the annualized ratio of total ordinary
operating expenses (excluding taxes, interest, litigation, extraordinary
expenses, brokerage and other transaction expenses relating to the purchase or
sale of portfolio investments and the fees and expenses of any other fund in
which the Funds invest) to average daily net assets of each class of shares (the
“Class”) for the series of MainStay Funds Trust listed below (the “Fund”),
calculated daily in accordance with generally accepted accounting principles
consistently applied, exceeds the percentage set forth below, New York Life
Investments will waive a portion of the Fund’s management fees or reimburse the
expenses of the appropriate Class of the Fund in the amount of such excess,
consistent with the method set forth in Section (4) below. With
respect to the MainStay S&P 500 Index Fund and MainStay Short Term Bond
Fund, an equivalent reduction to that of Class A will apply to those Funds’
other share classes.
|
FUND/CLASS
|
EXPENSE
LIMIT
|
|||
|
MainStay
Cash Reserves Fund
|
||||
|
Class
I
|
0.50 | % | ||
|
Sweep
Class
|
1.00 | % | ||
|
MainStay
Conservative Allocation Fund
|
||||
|
Investor
Class
|
0.50 | % | ||
|
Class
A
|
0.50 | % | ||
|
Class
B
|
1.25 | % | ||
|
Class
C
|
1.25 | % | ||
|
Class
I
|
0.25 | % | ||
|
FUND/CLASS
|
EXPENSE
LIMIT
|
|||
|
MainStay
Epoch U.S. All Cap Fund
|
||||
|
Investor
Class
|
1.85 | % | ||
|
Class
A
|
2.60 | % | ||
|
Class
C
|
2.60 | % | ||
|
Class
I
|
1.00 | % | ||
|
MainStay
Growth Allocation Fund
|
||||
|
Class
A
|
0.50 | % | ||
|
Class
B
|
1.25 | % | ||
|
Class
C
|
1.25 | % | ||
|
Class
I
|
0.25 | % | ||
|
Investor
Class
|
0.50 | % | ||
|
MainStay
ICAP Equity Fund
|
||||
|
Class
I
|
0.90 | % | ||
|
MainStay
ICAP Global Fund
|
||||
|
Investor
Class
|
1.20 | % | ||
|
Class
A
|
1.15 | % | ||
|
Class
C
|
1.95 | % | ||
|
Class
I
|
0.90 | % | ||
|
MainStay
ICAP International Fund
|
||||
|
Class
A
|
1.30 | % | ||
|
Class
I
|
0.95 | % | ||
|
MainStay
ICAP Select Equity Fund
|
||||
|
Class
A
|
1.18 | % | ||
|
Class
I
|
0.90 | % | ||
|
MainStay
Indexed Bond Fund
|
||||
|
Class
A
|
0.82 | % | ||
|
Class
I
|
0.43 | % | ||
|
Investor
Class
|
0.92 | % | ||
|
MainStay
Intermediate Term Bond Fund
|
||||
|
Class
I
|
0.60 | % | ||
|
MainStay
Moderate Allocation Fund
|
||||
|
Class
A
|
0.50 | % | ||
|
Class
B
|
1.25 | % | ||
|
Class
C
|
1.25 | % | ||
|
Class
I
|
0.25 | % | ||
|
Investor
Class
|
0.50 | % | ||
|
MainStay
Moderate Growth
|
||||
|
Allocation
Fund
|
||||
|
Class
A
|
0.50 | % | ||
|
Class
B
|
1.25 | % | ||
|
Class
C
|
1.25 | % | ||
|
Class
I
|
0.25 | % | ||
|
Investor
Class
|
0.50 | % | ||
2
|
FUND/CLASS
|
EXPENSE
LIMIT
|
|||
|
MainStay
Retirement 2010 Fund
|
||||
|
Investor
Class
|
0.475 | % | ||
|
Class
A
|
0.375 | % | ||
|
Class
I
|
0.125 | % | ||
|
Class
R1
|
0.225 | % | ||
|
Class
R2
|
0.475 | % | ||
|
Class
R3
|
0.725 | % | ||
|
MainStay
Retirement 2020 Fund
|
||||
|
Investor
Class
|
0.475 | % | ||
|
Class
A
|
0.375 | % | ||
|
Class
I
|
0.125 | % | ||
|
Class
R1
|
0.225 | % | ||
|
Class
R2
|
0.475 | % | ||
|
Class
R3
|
0.725 | % | ||
|
MainStay
Retirement 2030 Fund
|
||||
|
Investor
Class
|
0.475 | % | ||
|
Class
A
|
0.375 | % | ||
|
Class
I
|
0.125 | % | ||
|
Class
R1
|
0.225 | % | ||
|
Class
R2
|
0.475 | % | ||
|
Class
R3
|
0.725 | % | ||
|
MainStay
Retirement 2040 Fund
|
||||
|
Investor
Class
|
0.475 | % | ||
|
Class
A
|
0.375 | % | ||
|
Class
I
|
0.125 | % | ||
|
Class
R1
|
0.225 | % | ||
|
Class
R2
|
0.475 | % | ||
|
Class
R3
|
0.725 | % | ||
|
MainStay
Retirement 2050 Fund
|
||||
|
Investor
Class
|
0.475 | % | ||
|
Class
A
|
0.375 | % | ||
|
Class
I
|
0.125 | % | ||
|
Class
R1
|
0.225 | % | ||
|
Class
R2
|
0.475 | % | ||
|
Class
R3
|
0.725 | % | ||
|
MainStay
S&P 500 Index Fund
|
||||
|
Class
A
|
0.60 | % | ||
|
MainStay
Short Term Bond Fund
|
||||
|
Class
A
|
0.93 | % | ||
New York
Life Investments authorizes the Funds and their administrator to reduce the
monthly expenses of the appropriate Class of a Fund or reduce its monthly
management fees to the extent necessary to effectuate the limitations stated in
this Section (1), consistent with the method set forth in Section (4)
below. New York Life Investments authorizes the Fund and its
administrator to request funds from us as necessary to implement the limitations
stated in this Section (1). New York Life Investments will pay to the
Fund or Class any such amounts, consistent with the method set forth in Section
(4) below, promptly after receipt of such request.
3
(2) The
expense caps set forth in this Agreement are effective from February 26, 2010
through February 28, 2011.
(3) The
foregoing expense limitations supersede any prior agreement regarding expense
limitations with respect to the specific Funds and Classes
herein. Each expense limitation is a calculated on an annual, not
monthly, basis, and is based on the fiscal year of the respective
Fund. Consequently, if the amount of expenses accrued by a Fund
during a month is less than the Fund’s expense limitation, the following shall
apply: (i) New York Life Investments shall be reimbursed by the respective
Class(es) of the Fund in an amount equal to such difference, consistent with the
method set forth in Section (4) below, but not in an amount in excess of any
deductions and/or payments previously made during the year; and (ii) to the
extent reimbursements are not made pursuant to Sub-Section (3)(i), the Class(es)
shall establish a credit to be used in reducing deductions and/or payments which
would otherwise be made in subsequent months of the fiscal year of the relevant
Fund. During the term of this Agreement, New York Life Investments
may reclaim the amount of management fee waivers or expense reimbursements from
a Fund or Class pursuant to this arrangement consistent with the method set
forth in Section (4) below, if it does not cause the Fund or Class to exceed
existing expense limitations and such action is taken during the fiscal year of
the Fund in which New York Life Investments incurred the expense.
(4) Any
amount of fees or expenses waived, paid or reimbursed pursuant to the terms of
this Agreement shall be allocated among the Classes of shares of a Fund in
accordance with the terms of that Fund’s multiple class plan pursuant to Rule
18f-3 under the Investment Company Act of 1940, as amended (the “18f-3
Plan”). To this end, the benefit of any waiver or reimbursement of
any management fee and any other “Fund Expense,” as such term is defined in the
18f-3 Plan, shall be allocated to all shares of the Fund based on net asset
value, regardless of Class.
This Agreement shall in all cases
be interpreted in a manner consistent with the requirements of Revenue Procedure
96-47, 1996-2 CB 338, and Revenue Procedure 99-40, I.R.B. 1999-46, 565 so as to
avoid any possibility that a Fund is deemed to have paid a preferential
dividend. In the event of any conflict between any other term of this
Agreement and this Section (4), this Section (4) shall control.
* * *
4
This
Agreement shall be effective as of the date first written
above.
NEW YORK
LIFE INVESTMENT MANAGEMENT LLC
|
By:
|
/s/ Xxxxxxx X.
Xxxxxx
|
Name:
Xxxxxxx X. Xxxxxx
Title: Senior
Managing Director
|
ACKNOWLEDGED:
|
|
|
By:
|
/s/
Xxxx X. Xxxxxxxxxx
|
|
Title:
Treasurer
|
|
5
