<PAGE> 1
THE MAINSTAY(R) FUNDS
RESEARCH VALUE FUND
SMALL CAP VALUE FUND
Supplement dated June 7, 2000
to the Prospectus dated May 1, 2000
(replacing supplement dated May 5, 2000)
RESEARCH VALUE FUND
Mr. G. Todd Silva no longer manages the Research Value Fund. Mr. Daniel M.
Theriault became a manager of the Fund in June 2000. Mr. Theriault joined John
A. Levin & Co. in 1997, where he had also been a securities analyst from 1994 to
1995. From 1995 to 1997 he was President and Portfolio Manager, T. Rowe Price
Services Fund.
SMALL CAP VALUE FUND
Mr. Timothy Dalton, Jr., Mr. Kenneth Greiner and Mr. Stephen J. Bruno
manage the Small Cap Value Fund. Mr. Bruno has been a manager of the Small Cap
Value Fund since April 2000. He joined Dalton, Greiner, Hartman, Maher & Co. in
1990 and currently is an Executive Vice President and shareholder. Prior to that
he was an investment analyst with Dillon, Read Capital, Inc. from 1989 to 1990.
Footnote 2 on page 129 is replaced by the following:
With respect to DGHM's Small Cap Value Composite, performance is net of
actual management fees paid, which were 1% per annum. The composite
consists of fewer than five accounts since its inception in July 1994. A
complete list of composites is available upon request. Annual net
returns, composite assets (in millions), percentage of firm assets and
the standard deviation of composite accounts were as follows:
1994 -- .3%, $25, <1%, 0; 1995 -- 13.4%, $20, <1%, .30; 1996 -- 30.2%,
$21, 1%, .17; 1997 -- 40%, $27, 2%, .33; 1998 -- 2.7%, $46, 5%, 0.05;
1999 -- 6.8%, $57, 8%, .56.
The table under "DGHM: Related Performance" on page 131 is replaced by the
following:
<TABLE>
<CAPTION>
AS OF 12/31/99
------------------------------------------------------
ONE YEAR THREE YEAR FIVE YEAR SINCE INCEPTION
TOTAL TOTAL TOTAL TOTAL
RETURN RETURN RETURN RETURN
----- ----- ----- -----
<S> <C> <C> <C> <C>
Dalton, Greiner, Hartman, Maher & Co.
Small Cap Value Composite 6.8% 13.3% 16.5% 15.0%
Russell 2000 Index 21.3% 13.1% 16.7% 16.1%
</TABLE>
MS16-06/00
