THE MAINSTAY(R) FUNDS
Supplement dated December 29, 2000
To the Prospectus dated May 1, 2000
(as previously supplemented on August 30, 2000)
Effective December 29, 2000, The MainStay(R) Funds (the "Trust") has added two
new series to the Trust: MainStay Mid Cap Growth Fund and MainStay Select 20
Equity Fund. Both series use different strategies to pursue their objective of
long-term growth of capital.
Shareholders of the new series have the ability to exchange shares of MainStay
Mid Cap Growth Fund and MainStay Select 20 Fund for shares of the same class of
any other series of the Trust and shareholders of each of the other series of
the Trust may exchange their shares for shares of the same class of MainStay Mid
Cap Growth Fund and MainStay Select 20 Fund. A complete description of exchange
privileges appears in the May 1, 2000 Prospectus of the Trust.
You may obtain a complete prospectus for the two new series by calling
1-800-624-6782.
Also, effective December 29, 2000, New York Life Investment Management LLC
("NYLIM") is substituted for MainStay Management LLC as the Trust's Manager. In
addition, the funds currently sub-advised by Monitor Capital Advisors LLC
(MainStay Equity Index Fund) and Madison Square Advisors LLC (MainStay Growth
Opportunities Fund) will be advised by NYLIM directly, without a subadvisor.
NYLIM, MainStay Management, Monitor Capital, and Madison Square Advisors are all
wholly-owned subsidiaries of New York Life Insurance Company. These changes
reflect a restructuring of the investment management business of New York Life,
and will not affect the investment personnel responsible for managing each
series of the Trust's investments or any other aspect of the Trust's operations.
The following portfolio manager biography is added to the section entitled "Know
With Whom You're Investing -- Portfolio Managers" in the May 1, 2000 prospectus
of The MainStay Funds:
MR. MATTHEW PHILO is a portfolio manager of MainStay High Yield Corporate Bond
Fund. Mr. Philo, a Director of MacKay Shields LLC, has managed institutional
accounts for MacKay Shields since September of 1996. From 1993 to September
1996, Mr. Philo was with Thorsell, Parker Partners as a portfolio manager and
partner.
