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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-22551

 

MainStay DefinedTerm Municipal Opportunities Fund

(Exact name of registrant as specified in charter)

 

 

51 Madison Avenue, New York, New York 10010
 (Address of principal executive offices) (Zip Code)

 

 

J. Kevin Gao, Esq., 169 Lackawanna Avenue, Parsippany, NJ 07054

(Name and address of agent for service)

 

Registrant's telephone number, including area code: 800-624-6782

 

Date of fiscal year end: May 31

 

Date of reporting period: February 28, 2013

 

 
 

 

Item 1. Schedule of Investments.

 

The schedule of investments for the period ended February 28, 2013 is filed herewith. 

 

MainStay DefinedTerm Municipal Opportunities Fund
 
Portfolio of Investments February 28, 2013 (Unaudited)

 

  Municipal Bonds 139.4% †  Principal
Amount		   Value 
  Alabama 1.5% (1.0% of Managed Assets)          
  Alabama State Docks Department, State Port Authority Docks Facilities, Revenue Bonds
Series A, Insured: NATL-RE
4.50%, due 10/1/36 (a)		  $3,835,000   $3,877,300 
  Birmingham Jefferson Civic Center Authority, Special Tax
Series A, Insured: AMBAC
4.125%, due 7/1/14		   250,000    249,883 
  Jefferson County, Limited Obligation School, Revenue Bonds
Series A, Insured: AMBAC
4.75%, due 1/1/25		   250,000    239,275 
  Jefferson County, Public Building Authority, Revenue Bonds
Insured: AMBAC
5.00%, due 4/1/26		   4,500,000    3,766,635 
           8,133,093 
  Alaska 0.8% (0.6% of Managed Assets)          
  Northern Tobacco Securitization Corp., Tobacco Settlement, Asset-Backed, Revenue Bonds
Series A
5.00%, due 6/1/46		   5,295,000    4,673,261 
             
  Arizona 0.7% (0.5% of Managed Assets)          
  Phoenix Industrial Development Authority, Downtown Phoenix Student LLC, Revenue Bonds          
  Series A, Insured: AMBAC
4.50%, due 7/1/32		   1,000,000    837,670 
  Series A, Insured: AMBAC
4.50%, due 7/1/42		   140,000    108,312 
  Phoenix Industrial Development Authority, Espiritu Community Development Corp., Revenue Bonds
Series A
6.25%, due 7/1/36		   2,000,000    2,017,140 
  Pima County Industrial Development Authority, PLC Charter Schools Project, Revenue Bonds
6.75%, due 4/1/36		   1,075,000    1,081,289 
           4,044,411 
  California 29.7% (21.0% of Managed Assets)          
  Big Pine Unified School District, Capital Appreciation, Unlimited General Obligation
Insured: AGM
(zero coupon), due 8/1/40		   5,050,000    1,271,388 
  California County Tobacco Securitization Agency, Asset Backed, Revenue Bonds          
  Series A
5.125%, due 6/1/38		   3,060,000    2,810,365 
  5.60%, due 6/1/36   2,575,000    2,462,009 
  California Municipal Finance Authority, Southwestern Law School, Revenue Bonds
6.50%, due 11/1/41		   2,165,000    2,621,036 
¤ California State Health Facility Authority, Stanford Hospital Clinics, Revenue Bonds
Series A
5.00%, due 8/15/51 (b)(c)		   21,000,000    23,456,160 
  California State University, Systemwide, Revenue Bonds
Series A
5.00%, due 11/1/37		   6,000,000    6,970,860 
  Carson Redevelopment Agency, Redevelopment Project Area 1, Tax Allocation
Series B, Insured: NATL-RE
(zero coupon), due 10/1/25		   75,000    41,360 
  Centinela Valley Union High School District, Unlimited General Obligation
Series B, Insured: AGM
(zero coupon), due 8/1/45		   4,680,000    729,191 
  Ceres Unified School District, Cabs-Election, Unlimited General Obligation
Series A
(zero coupon), due 8/1/43		   6,375,000    849,724 
  Coachella Valley Unified School District, Election 2005, Unlimited General Obligation
Series D, Insured: AGM
5.00%, due 8/1/37		   10,000,000    11,207,900 
  Desert Community College District, Capital Appreciation, Election 2004, Unlimited General Obligation
Series C, Insured: AGM
(zero coupon), due 8/1/46		   70,230,000    12,069,728 
  El Dorado Union High School District, Unlimited General Obligation          
  (zero coupon), due 8/1/36   5,080,000    1,592,072 
  (zero coupon), due 8/1/37   5,220,000    1,549,505 
  (zero coupon), due 8/1/38   5,420,000    1,504,484 
  (zero coupon), due 8/1/39   5,625,000    1,461,825 
  (zero coupon), due 8/1/40   5,830,000    1,439,777 
  (zero coupon), due 8/1/41   6,050,000    1,419,814 
  Fontana Unified School District, Cabs Unlimited General Obligation          
  Series C
(zero coupon), due 8/1/34		   14,000,000    4,658,220 
  Series C
(zero coupon), due 8/1/40		   10,000,000    2,180,900 
  Series C
(zero coupon), due 8/1/41		   19,700,000    4,040,864 
  Series C
(zero coupon), due 8/1/42		   18,600,000    3,592,776 
  Foothill-Eastern Transportation Corridor Agency, Revenue Bonds
(zero coupon), due 1/15/31		   5,000,000    1,725,700 
  Fresno, California Unified School District Education, Unlimited General Obligation
Series G
(zero coupon), due 8/1/31		   9,950,000    3,475,336 
  Golden State Tobacco Securitization Corp., Asset Backed, Revenue Bonds          
  Series A-1
5.125%, due 6/1/47		   10,550,000    8,958,638 
  Series A-2
5.30%, due 6/1/37		   5,000,000    4,561,150 
  Golden State Tobacco Securitization Corp., Revenue Bonds          
  Series A, Insured: AGC-ICC, FGIC
5.00%, due 6/1/35 (b)(c)		   16,110,000    16,943,048 
  Insured: AGM, AMBAC, FSA
5.00%, due 6/1/45		   3,020,000    3,168,705 
  Inglewood Public Financing Authority, Cabs-Lease, Revenue Bonds          
  (zero coupon), due 8/1/30   2,530,000    782,909 
  (zero coupon), due 8/1/31   2,530,000    721,252 
  Kings Canyon Joint Unified School District, Unlimited General Obligation
Series C
(zero coupon), due 8/1/51		   25,700,000    2,540,702 
  Lancaster Financing Authority, Subordinated Project No. 5 & 6, Redevelopment Projects, Tax Allocation
Series B, Insured: FGIC, NATL-RE
4.625%, due 2/1/24		   215,000    209,681 
  Marysville Joint Unified School District, Capital Project, Certificates of Participation          
  Insured: AGM
(zero coupon), due 6/1/25		   1,850,000    1,009,933 
  Insured: AGM
(zero coupon), due 6/1/27		   2,445,000    1,173,624 
  Insured: AGM
(zero coupon), due 6/1/33		   2,800,000    882,728 
  Insured: AGM
(zero coupon), due 6/1/34		   2,820,000    832,492 
  Insured: AGM
(zero coupon), due 6/1/38		   2,820,000    630,326 
  Insured: AGM
(zero coupon), due 6/1/39		   2,820,000    590,564 
  Insured: AGM
(zero coupon), due 6/1/40		   2,820,000    553,679 
  Merced Union High School District, Cabs-Election, Unlimited General Obligation
Series C
(zero coupon), due 8/1/41		   16,780,000    3,013,688 
  Oakland Unified School District, Election 2000, Unlimited General Obligation
Insured: NATL-RE
4.50%, due 8/1/30		   10,000,000    10,078,500 
  Oceanside, California Unified School District, Unlimited General Obligation
Series C
(zero coupon), due 8/1/50		   20,190,000    2,173,453 
  Pittsburg Unified School District, Unlimited General Obligation
Series C
(zero coupon), due 8/1/40		   1,640,000    362,588 
  Richland School District, Unlimited General Obligation
Series C, Insured: AGM
(zero coupon), due 8/1/49		   5,000,000    729,950 
  San Bernardino City Unified School District, Unlimited General Obligation
Series C, Insured: NATL-RE
(zero coupon), due 8/1/31		   5,000,000    1,906,150 
  San Joaquin Hills Transportation Corridor Agency, Revenue Bonds          
  Series A, Insured: NATL-RE
(zero coupon), due 1/15/22		   215,000    139,509 
  Series A, Insured: NATL-RE
(zero coupon), due 1/15/25		   250,000    137,913 
  Series A, Insured: NATL-RE
(zero coupon), due 1/15/31		   150,000    58,971 
  Series A, Insured: NATL-RE
5.25%, due 1/15/30		   900,000    897,255 
  Series A, Insured: NATL-RE
5.375%, due 1/15/29		   455,000    455,009 
  San Jose Redevelopment Agency, Merged Area Redevelopment Project, Tax Allocation
Series C, Insured: NATL-RE
3.75%, due 8/1/28		   2,220,000    2,031,544 
  Stockton Public Financing Authority, Parking & Capital Projects, Revenue Bonds          
  Insured: FGIC, NATL-RE
4.25%, due 9/1/14		   50,000    49,597 
  Insured: FGIC, NATL-RE
4.50%, due 9/1/17		   100,000    97,571 
  Insured: FGIC, NATL-RE
4.80%, due 9/1/20		   105,000    101,090 
  Stockton Public Financing Authority, Redevelopment Projects, Revenue Bonds          
  Series A, Insured: RADIAN
5.25%, due 9/1/31		   630,000    488,741 
  Series A, Insured: RADIAN
5.25%, due 9/1/34		   2,900,000    2,179,321 
  Stockton Public Financing Authority, Water System, Capital Improvement Projects, Revenue Bonds
Series A, Insured: NATL-RE
5.00%, due 10/1/31		   165,000    163,809 
  Stockton, California Unified School District, Unlimited General Obligation          
  Series D, Insured: AGM
(zero coupon), due 8/1/35		   3,165,000    1,057,426 
  Series D, Insured: AGM
(zero coupon), due 8/1/40		   13,930,000    3,585,861 
           166,398,371 
  Colorado 0.1% (0.0%‡ of Managed Assets)          
  E-470 Public Highway Authority, Revenue Bonds
Series B, Insured: NATL-RE
(zero coupon), due 9/1/29		   660,000    285,252 
             
  Florida 7.9% (5.6% of Managed Assets)          
  City of Orlando, Tourist Development Tax Revenue, 3rd Lien, 6th Cent Contract, Revenue Bonds
Insured: GTY
5.50%, due 11/1/38		   20,000,000    20,726,800 

¤

 County of Miami-Dade FL Transit System Sales Surtax Revenue, Sales Tax, Revenue Bonds
5.00%, due 7/1/42 (b)(c)		   21,000,000    23,642,220 
           44,369,020 
  Georgia 0.1% (0.1% of Managed Assets)          
  Marietta Development Authority, University Facilities-Life University, Inc. Project, Revenue Bonds
6.25%, due 6/15/20		   475,000    501,386 
             
  Guam 2.7% (1.9% of Managed Assets)          
  Guam Economic Development & Commerce Authority, Tobacco Settlement Asset Backed, Revenue Bonds
5.625%, due 6/1/47		   500,000    444,885 
  Guam Power Authority, Revenue Bonds
Series A
5.00%, due 10/1/34		   13,030,000    14,461,345 
           14,906,230 
  Hawaii 2.8% (2.0% of Managed Assets)          
  Hawaii State Department of Budget & Finance, Hawaiian Electric Co., Revenue Bonds
Series A, Insured: FGIC
4.65%, due 3/1/37 (a)		   15,510,000    15,908,762 
  Illinois 8.0% (5.6% of Managed Assets)          
  Chicago, Unlimited General Obligation
Series C
5.00%, due 1/1/40 (b)(c)		   19,570,000    21,156,148 
  Illinois Finance Authority Revenue, Lake Forest College, Revenue Bonds          
  Series A
5.00%, due 10/1/22		   500,000    543,640 
  Series A
5.75%, due 10/1/32		   1,000,000    1,100,550 
¤ Metropolitan Pier & Exposition Authority, McCormick Place Project, Revenue Bonds
Series B
5.00%, due 6/15/52 (b)(c)		   20,000,000    21,952,576 
           44,752,914 
  Indiana 1.1% (0.8% of Managed Assets)          
  Anderson Economic Development Revenue, Anderson University Project, Revenue Bonds
5.00%, due 10/1/32		   1,290,000    1,135,690 
  City of Carmel, Barrington Carmel Project, Revenue Bonds          
  Series A
7.00%, due 11/15/32		   1,650,000    1,824,983 
  Series A
7.125%, due 11/15/42		   3,000,000    3,294,030 
           6,254,703 
  Iowa 2.0% (1.4% of Managed Assets)          
  Coralville Urban Renewal Revenue, Tax Increment, Tax Allocation
Series C
5.00%, due 6/1/47		   4,220,000    4,269,501 
  Iowa Higher Education Loan Authority, Private College Facility, Wartburg College, Revenue Bonds          
  Series B
5.50%, due 10/1/31		   2,105,000    2,090,349 
  5.55%, due 10/1/37   4,680,000    4,581,439 
           10,941,289 
  Kansas 2.0% (1.4% of Managed Assets)          
  Wyandotte County-Kansas City Unified Government, Capital Appreciation, Sales Tax, Revenue Bonds
(zero coupon), due 6/1/21		   17,175,000    11,440,268 
             
  Louisiana 3.3% (2.3% of Managed Assets)          
  Louisiana Local Government Environmental Facilities & Community Development Authority, Parking Facilities Corp., Revenue Bonds
Insured: AGM
4.00%, due 10/1/31		   1,000,000    1,020,800 
  Louisiana Public Facilities Authority, Archdiocese of New Orleans Project, Revenue Bonds
Insured: CIFG
4.50%, due 7/1/37		   11,500,000    11,774,965 
  Louisiana Public Facilities Authority, Black & Gold Facilities Project, Revenue Bonds          
  Series A, Insured: CIFG
4.50%, due 7/1/38		   405,000    355,983 
  Series A, Insured: CIFG
5.00%, due 7/1/22		   1,105,000    1,119,166 
  Series A, Insured: CIFG
5.00%, due 7/1/24		   1,200,000    1,209,828 
  Series A, Insured: CIFG
5.00%, due 7/1/30		   2,870,000    2,833,781 
           18,314,523 
  Massachusetts 0.0%‡ (0.0%‡ of Managed Assets)          
  Massachusetts Development Finance Agency, Seven Hills Foundation & Affiliates, Revenue Bonds
Insured: RADIAN
5.00%, due 9/1/35		   150,000    150,384 
  Massachusetts Port Authority Facilities, Delta Airlines, Inc. Project, Revenue Bonds
Series A, Insured: AMBAC
5.50%, due 1/1/19 (a)		   50,000    50,500 
           200,884 
  Michigan 7.8% (5.5% of Managed Assets)          
  Detroit, Michigan Water and Sewerage Department, Senior Lien, Revenue Bonds
Series A
5.25%, due 7/1/39		   12,000,000    13,154,160 
  Detroit, Michigan Water Supply System, Revenue Bonds
Series A
5.75%, due 7/1/37		   5,000,000    5,617,000 
  Michigan Finance Authority, Limited Obligation, Public School Academy, University Learning, Revenue Bonds
7.375%, due 11/1/30		   2,920,000    3,376,980 
  Michigan Finance Authority, Public School Academy, Revenue Bonds
7.50%, due 11/1/40		   2,745,000    3,169,322 
  Michigan Public Educational Facilities Authority, Dr. Joseph F. Pollack, Revenue Bonds          
  8.00%, due 4/1/30   1,195,000    1,354,891 
  8.00%, due 4/1/40   500,000    563,485 
  Michigan Tobacco Settlement Finance Authority, Revenue Bonds          
  Series A
5.125%, due 6/1/22		   6,575,000    6,086,477 
  Series A
6.00%, due 6/1/34		   5,000,000    4,664,550 
  Series A
6.00%, due 6/1/48		   5,935,000    5,479,667 
           43,466,532 
  Missouri 0.5% (0.4% of Managed Assets)          
  St. Louis County Industrial Development Authority, Nazareth Living Center, Revenue Bonds          
  5.875%, due 8/15/32   750,000    770,797 
  6.125%, due 8/15/42   2,120,000    2,176,880 
           2,947,677 
  Nebraska 4.1% (2.9% of Managed Assets)          
¤ Central Plains Energy, Project No. 3, Revenue Bonds
5.25%, due 9/1/37 (b)(c)		   20,000,000    22,662,800 
             
  Nevada 2.3% (1.6% of Managed Assets)          
  City of Sparks, Tourism Improvement District No. 1, Senior Sales Tax Anticipation, Revenue Bonds
Series A
6.75%, due 6/15/28 ©		   12,500,000    12,907,125 
             
  New Hampshire 0.3% (0.2% of Managed Assets)          
  Manchester Housing & Redevelopment Authority Inc., Revenue Bonds
Series B, Insured : ACA
(zero coupon), due 1/1/24		   4,740,000    1,652,411 
             
  New Jersey 4.7% (3.3% of Managed Assets)          
  New Jersey Economic Development Authority, Continental Airlines, Inc. Project, Revenue Bonds          
  5.125%, due 9/15/23 (a)   1,740,000    1,787,780 
  5.25%, due 9/15/29 (a)   6,620,000    6,751,540 
  7.00%, due 11/15/30 (a)   2,500,000    2,510,000 
  New Jersey Economic Development Authority, UMM Energy Partners, Revenue Bonds          
  Series A
4.75%, due 6/15/32 (a)		   1,000,000    1,064,090 
  Series A
5.00%, due 6/15/37 (a)		   1,000,000    1,075,340 
  New Jersey Healthcare Facilities Financing Authority, St. Barnabas Healthcare, Revenue Bonds
Series B
(zero coupon), due 7/1/36		   100,000    31,586 
  New Jersey Tobacco Settlement Financing Corp., Revenue Bonds
Series 1A
5.00%, due 6/1/41		   15,000,000    13,284,150 
           26,504,486 
  New Mexico 4.0% (2.8% of Managed Assets)          
¤ New Mexico Hospital Equipment Loan Council, Presbyterian Healthcare Services, Revenue Bonds
Series A
5.00%, due 8/1/42 (b)(c)		   20,000,000    22,245,972 
             
  New York 2.2% (1.5% of Managed Assets)          
  Niagara Area Development Corp., Covanta Energy Project, Revenue Bonds
5.25%, due 11/1/42 (a)		   2,000,000    2,098,560 
  Port Authority of New York & New Jersey, Consolidated One Hundred Seventy, Revenue Bonds
4.00%, due 7/15/31 (a)		   9,660,000    10,196,710 
           12,295,270 
  Ohio 12.5% (8.8% of Managed Assets)          
¤ American Municipal Power, Inc., AMP Fremont Energy Center Project, Revenue Bonds
Series B
5.00%, due 2/15/42 (b)(c)		   20,945,000    23,216,641 
  Buckeye Tobacco Settlement Financing Authority, Asset-Backed, Senior Turbo, Revenue Bonds          
  Series A-2
5.875%, due 6/1/30		   2,300,000    2,059,742 
  Series A-2
5.875%, due 6/1/47		   10,690,000    9,381,651 
  Series A-2
6.00%, due 6/1/42		   5,915,000    5,262,221 
  Franklin County Ohio Hospital Facilities, Nationwide Children Hospital Project, Revenue Bonds
Series A
5.00%, due 11/1/42 (b)(c)		   15,570,000    17,382,036 
  Southeastern Ohio Port Authority, Hospital Facilities Revenue, Memorial Health Systems, Revenue Bonds          
  5.75%, due 12/1/32   6,700,000    7,360,620 
  6.00%, due 12/1/42   5,000,000    5,549,150 
           70,212,061 
  Pennsylvania 7.1% (5.0% of Managed Assets)          
  Harrisburg Parking Authority, Packaging Revenue, Revenue Bonds          
  Series O, Insured: AMBAC
5.00%, due 8/1/14		   145,000    143,837 
  Series O, Insured: AMBAC
5.00%, due 8/1/16		   60,000    58,907 
  Harrisburg, Capital Appreciation, Unlimited General Obligation
Series F, Insured: AMBAC
(zero coupon), due 9/15/21		   95,000    49,989 
  Pennsylvania State Turnpike Commission, Revenue Bonds
Series D
5.125%, due 12/1/40 (b)(c)		   19,025,000    20,649,701 
  Philadelphia Authority Industrial Development, Please Touch Museum Project, Revenue Bonds
5.25%, due 9/1/31		   2,500,000    2,473,750 
  Philadelphia Hospitals and Higher Education Facilities Authority, Temple University Health System, Revenue Bonds          
  Series A
5.00%, due 7/1/34		   2,000,000    2,076,860 
  Series A
5.625%, due 7/1/36		   5,975,000    6,648,920 
  Series A
5.625%, due 7/1/42		   6,800,000    7,514,272 
           39,616,236 
  Texas 13.2% (9.3% of Managed Assets)          
  Clifton Higher Education Finance Corp., Idea Public Schools, Revenue Bonds
5.00%, due 8/15/42		   4,750,000    5,179,780 
  Dallas / Fort Worth International Airport, Revenue Bonds
Series G
5.00%, due 11/1/33		   7,395,000    8,372,101 
  Harris County Cultural Education Facilities Finance Corp., Baylor Medical College, Revenue Bonds
5.00%, due 11/15/37		   6,750,000    7,717,815 
  Harris County-Houston Sports Authority, Revenue Bonds          
  Series B, Insured: NATL-RE
(zero coupon), due 11/15/13		   250,000    240,803 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/28		   50,000    21,316 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/33		   200,000    61,672 
  Series A, Insured: NATL-RE
(zero coupon), due 11/15/34		   360,000    121,615 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/35		   390,000    104,735 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/37		   200,000    47,222 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/38		   125,000    27,731 
  Series A, Insured: NATL-RE
(zero coupon), due 11/15/40		   865,000    193,224 
  Series B, Insured: NATL-RE
5.25%, due 11/15/40		   550,000    551,391 
  Houston Higher Education Finance Corp., Cosmos Foundation, Revenue Bonds
Series A
5.00%, due 2/15/42		   5,000,000    5,319,200 
  Love Field Airport Modernization Corp., Southwest Airlines Co. Project, Revenue Bonds
5.25%, due 11/1/40		   6,040,000    6,634,819 
  Newark Cultural Education Facilities Finance Corp., A. W. Brown-Fellowship Leadership Academy, Revenue Bonds          
  Series A
6.00%, due 8/15/32		   1,130,000    1,191,461 
  Series A
6.00%, due 8/15/42		   3,640,000    3,821,272 
¤ Texas Municipal Gas Acquisition & Supply Corp. III, Revenue Bonds          
  5.00%, due 12/15/28   5,500,000    6,042,520 
  5.00%, due 12/15/29 (b)(c)   20,200,000    22,106,072 
  Texas State Turnpike Authority, Central Texas System, Revenue Bonds
Insured: AMBAC
(zero coupon), due 8/15/35		   23,750,000    6,270,712 
           74,025,461 
  U.S. Virgin Islands 2.6% (1.8% of Managed Assets)          
  Virgin Islands Public Finance Authority, Matching Fund Loan Notes          
  Series A
5.00%, due 10/1/27		   3,000,000    3,393,120 
  Series A
5.00%, due 10/1/32		   10,000,000    10,960,900 
           14,354,020 
  Vermont 0.3% (0.2% of Managed Assets)          
  Vermont State Student Assistance Corp., Revenue Bonds
Series A
5.10%, due 6/15/32 (a)		   1,600,000    1,665,200 
             
  Virginia 10.0% (7.1% of Managed Assets)          
¤ Fairfax County Industrial Development Authority, Healthcare-Inova Health System, Revenue Bonds
5.00%, due 5/15/40 (b)(c)		   18,770,000    21,374,473 
¤ Norfolk Economic Development Authority, Health Care Facilities, Sentara Healthcare, Revenue Bonds
Series B
5.00%, due 11/1/43 (b)(c)		   19,575,000    22,146,514 
  Tobacco Settlement Financing Corp., Revenue Bonds
Series B1
5.00%, due 6/1/47		   13,380,000    11,125,069 
  Virginia Small Business Financing Authority, Senior Lien, Elizabeth River Crossing, Revenue Bonds
6.00%, due 1/1/37 (a)		   1,300,000    1,511,939 
           56,157,995 
  Washington 3.9% (2.7% of Managed Assets)          
¤ Washington State Healthcare Facility Authority, Providence Health & Services, Revenue Bonds
Series A
5.00%, due 10/1/42 (b)(c)		   19,335,000    21,688,427 
             
  West Virginia 0.3% (0.2% of Managed Assets)          
  Ohio County, Wheeling Jesuit, Revenue Bonds
Series A
5.50%, due 6/1/36		   1,665,000    1,567,115 
             
  Wisconsin 0.9% (0.7% of Managed Assets)          
  Public Finance Authority, Airport Facilities, Revenue Bonds
5.00%, due 7/1/42 (a)		   5,000,000    5,196,000 
             
  Total Investments
(Cost $750,633,156) (g)		   139.4%   780,289,155 
  Floating Rate Note Obligations (d)   (29.3)   (164,040,000)
  Fixed Rate Municipal Term Preferred Shares, at Liquidation Value   (12.5)   (70,000,000)
  Other Assets, Less Liabilities   2.4    13,511,299 
  Net Assets Applicable to Common Shares   100.0%  $559,760,454 
             
  Futures Contracts 0.0% ‡   Contracts
Short		    Unrealized
Appreciation (Depreciation)
(e)		 
  United States Treasury Note June 2013 (10 Year) (f)   (750)  $(13,594)
  Total Futures Contracts Short
(Settlement Value $98,660,156)		    $(13,594)

 

  ¤ Among the Fund's 10 largest holdings or issuers held, as of February 28, 2013.  May be subject to change daily.
  † Percentages indicated are based on Fund net assets applicable to Common Shares, unless otherwise noted.
  ‡ Less than one-tenth of a percent.
  (a) Interest on these securities is subject to alternative minimum tax.
  (b) All or portion of principal amount transferred to a Tender Option Bond ("TOB") Issuer in exchange the Fund acquired TOB Residuals and cash.
  (c) May be sold to institutional investors only under Rule 144A or securities offered pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended.
  (d) Proceeds received from TOB transactions.
  (e) Represents the difference between the value of the contracts at the time they were opened and the value as of February 28, 2013.
  (f) As of February 28, 2013, cash in the amount of $825,000 is on deposit with a broker for futures transactions.
  (g) As of February 28, 2013, cost is $750,633,156 for federal income tax purposes and net unrealized appreciation is as follows:

 

Gross unrealized appreciation  $30,037,440 
Gross unrealized depreciation   (381,441)
Net unrealized appreciation  $29,655,999 

 

  "Managed Assets" is defined as the Fund's total assets, minus the sum of its accrued liabilities (other than Fund liabilities incurred for the purpose of creating effective leverage (i.e. tender option bonds) or Fund liabilities related to liquidation preference of any preferred shares issued).

 

  The following abbreviations are used in the above portfolio:
ACA -ACA Financial Guaranty Corp.
AGC-ICC -Assured Guaranty Corporation—Insured Custody Certificates
AGM -Assured Guaranty Municipal Corp.
AMBAC -Ambac Assurance Corp.
CIFG -CIFG Group
FGIC -Financial Guaranty Insurance Co.
FSA -Financial Security Assurance, Inc.
GTY -Assured Guaranty Corp.
NATL-RE -National Public Finance Guarantee Corp.
RADIAN -Radian Asset Assurance, Inc.

 

 
 

 

The following is a summary of the fair valuations according to the inputs used as of February 28, 2013, for valuing the Fund's assets and liabilities.

Asset Valuation Inputs

b

 

Description  Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total 
Investments in Securities (a)                    
Municipal Bonds  $—   $780,289,155   $—   $780,289,155 
Total Investments in Securities  $—   $780,289,155   $—   $780,289,155 

 

Liability Valuation Inputs

Description  Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total 
Other Financial Instruments                    
Futures Contracts Short (b)  $(13,594)  $—   $—   $(13,594)
Total Other Financial Instruments  $(13,594)  $—   $—   $(13,594)

 

(a)For a complete listing of investments and their industries, see the Portfolio of Investments.
(b)The value listed for this security reflects unrealized appreciation (depreciation) as shown on the Portfolio of Investments.

 

The Fund recognizes transfers between the levels as of the beginning of the period.

 

For the period ended February 28, 2013, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements.

 

As of February 28, 2013, the Fund did not hold any investments with significant unobservable inputs (Level 3).

   

 
 




 

MainStay DefinedTerm Municipal Opportunities Fund

 

NOTES TO PORTFOLIOS OF INVESTMENTS February 28, 2013 Unaudited

 

SECURITIES VALUATION.

 

Investments are valued as of the close of regular trading on the New York Stock Exchange ("Exchange") (generally 4:00 p.m. Eastern time) on each day the Fund is open for business ("valuation date").

 

The Board has adopted procedures for the valuation of the Fund's securities and has delegated the responsibility for valuation determination under those procedures to the Valuation Committee of the Fund (the "Valuation Committee"). The Board has authorized the Valuation Committee to appoint a Valuation Sub-Committee (the "Sub-Committee") to deal in the first instance with questions that arise or cannot be resolved under these procedures. The Sub-Committee will meet (in person, via electronic mail or via teleconference) on an as-needed basis. The Valuation Committee shall meet at a later time, as necessary, to ensure that actions taken by the Sub-Committee were appropriate. The procedures recognize that, subject to the oversight of the Board and unless otherwise noted, the responsibility for day-to-day valuation of portfolio assets (including securities for which market prices are not readily available) rests with New York Life Investment Management LLC ("New York Life Investments" or the "Manager"), aided to whatever extent necessary by the Subadviser of the Fund.

 

To assess the appropriateness of security valuations, the Manager or the Fund’s third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities and the sale prices to the prior and current day prices and challenges prices exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued by recommendation, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuation based on such methodologies and determinations on a regular basis after considering all relevant information that is reasonably available.

 

"Fair value" is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. Fair value measurements are determined within a framework that has established a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. "Inputs" refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the information available in the circumstances. The inputs or methodology used for valuing securities may not be an indication of the risks associated with investing in those securities. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

 

·Level 1 – quoted prices in active markets for identical investments
·Level 2 – other significant observable inputs (including quoted prices for similar investments in active markets, interest rates and yield curves, prepayment speeds, credit risks, etc.)
·Level 3 – significant unobservable inputs (including each Fund’s own assumptions about the assumptions that market participants would use in determining the fair value of investments)

 

The aggregate value by input level, as of February 28, 2013, for the Fund's investments are included at the end of the Portfolio of Investments.

 

The valuation techniques used by the Fund to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Fund may utilize third party vendor evaluations, whose prices may be derived from one or more of the following standard inputs:

 

 

• Benchmark Yields • Reported Trades
• Broker Dealer Quotes • Issuer Spreads
• Two-sided markets • Benchmark securities
• Bids / Offers • Reference Data (corporate actions or material event notices)
• Industry and economic events • Comparable bonds
• Equity and credit default swap curves • Monthly payment information

 

 
 

 

Securities for which market value cannot be determined using the methodologies described above are valued by methods deemed in good faith by the Fund's Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. For the period ended February 28, 2013 there have been no changes to the fair value methodologies.

 

Equity and non-equity securities which may be valued in this manner include, but are not limited to: (i) a security for which the trading has been halted or suspended; (ii) a debt security that has recently gone into default and for which there is not a current market quotation; (iii) a security of an issuer that has entered into a restructuring; (iv) a security that has been de-listed from a national exchange; (v) a security for which the market price is not available from third party pricing source or, if so provided, does not, in the opinion of the Fund's Manager or Subadvisor (if applicable), reflect the security’s market value; and (vi) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities for which market quotations or observable inputs are not readily available are generally categorized as Level 3 in the hierarchy. As of February 28, 2013, the Fund did not hold any securities that were fair valued in such a manner.

 

Municipal Debt securities are valued at the evaluated mean prices based on observable inputs supplied by a pricing agent or brokers selected by the Fund's Manager in consultation with the Fund's Subadvisor, if any, whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by the Fund's Manager, in consultation with the Fund's Subadvisor, if any, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Debt securities, including corporate bonds, U.S. government and federal agency bonds, municipal bonds, foreign bonds, Yankee bonds, convertible bonds, asset-backed securities and mortgage-backed securities, are generally categorized as Level 2 in the hierarchy.

 

Futures contracts are valued at the last posted settlement price on the market where such futures are primarily traded. Investments in other mutual funds are valued at their respective net asset value ("NAV") as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the hierarchy.

 

Temporary cash investments acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments which mature in 60 days or less (“Short-Term Investments”) are valued at amortized cost. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between such cost and the value on maturity date. Amortized cost approximates the current fair value of a security. Securities valued at amortized cost are not valued using a quoted price in an active market. These securities are generally categorized as Level 2 in the hierarchy.

 

Generally, a security is considered illiquid if it cannot be sold or disposed of in the ordinary course of business at approximately the price at which it is valued. Its illiquidity might prevent the sale of such security at a time when the Manager or Subadvisor might wish to sell, and these securities could have the effect of decreasing the overall level of a Fund's liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, requiring the Fund to rely on judgments that may be somewhat subjective in determining value, which could vary from the amount that the Fund could realize upon disposition. Difficulty in selling illiquid securities may result in a loss or may be costly to the Fund. Under the supervision of the Board, the Manager or Subadvisor determines the liquidity of the Fund's investments; in doing so, the Manager or Subadvisor may consider various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers, (iii) dealer undertakings to make a market, and (iv) the nature of the security and the market in which it trades (e.g., the time needed to dispose of the security, the method of soliciting offers and the mechanics of transfer). Illiquid securities generally will be valued in good faith in such a manner as the Board deems appropriate to reflect their fair value.

 

 
 

 

Item 2. Controls And Procedures.

 

(a) Based on an evaluation of the Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, the “Disclosure Controls”) as of a date within 90 days prior to the filing date (the “Filing Date”) of this Form N-Q (the “Report”), the Registrant’s principal executive and principal financial officers have concluded that the Disclosure Controls are reasonably designed to ensure that information required to be disclosed by the Registrant in the Report is recorded, processed, summarized and reported by the Filing Date, including ensuring that information required to be disclosed in the Report is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 

Item 3. Exhibits.

 

(a) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

MAINSTAY DEFINEDTERM MUNICIPAL OPPORTUNITIES FUND

 

By:/s/ Stephen P. Fisher
Stephen P. Fisher
President and Principal Executive Officer

 

Date: April 26, 2013

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

 

By:/s/ Stephen P. Fisher
Stephen P. Fisher
President and Principal Executive Officer

 

Date: April 26, 2013

 

 

By:/s/ Jack R. Benintende
Jack R. Benintende
Treasurer and Principal Financial and Accounting Officer

 

Date: April 26, 2013