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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: August 31, 2013

 

 
 

 

 

Item 1. Schedule of Investments.

 

The schedule of investments for the period ended August 31, 2013 is filed herewith.

 

 

 

 

 

MainStay DefinedTerm Municipal Opportunities Fund
Portfolio of Investments  August 31, 2013 (Unaudited)

 

     Principal Amount   Value 
  Municipal Bonds 161.9% †        
  Alabama 0.9% (0.5% of Managed Assets)          
  Birmingham Jefferson Civic Center Authority, Special Tax
Series A, Insured: AMBAC
4.125%, due 7/1/14		  $250,000   $250,042 
 

Jefferson County, Limited Obligation School, Revenue Bonds

Series A, Insured: AMBAC
4.75%, due 1/1/25

   250,000    238,583 
 

Jefferson County, Public Building Authority, Revenue Bonds

Insured: AMBAC
5.00%, due 4/1/26

   4,500,000    3,465,990 
           3,954,615 
             
  Alaska 0.8% (0.5% of Managed Assets)          
 

Northern Tobacco Securitization Corp., Tobacco Settlement, Asset-Backed,

Revenue Bonds
Series A
5.00%, due 6/1/46

   5,295,000    3,557,657 
             
  Arizona 1.8% (1.1% 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    768,230 
  Series A, Insured: AMBAC
4.50%, due 7/1/42		   150,000    105,333 
 

Phoenix Industrial Development Authority, Espiritu Community Development

Corp., Revenue Bonds

Series A
6.25%, due 7/1/36

   2,000,000    1,760,000 
 

Pima County Industrial Development Authority, PLC Charter Schools Project,

Revenue Bonds
6.75%, due 4/1/36

   1,075,000    960,577 
 

Salt Verde Financial Corp., Senior Gas, Revenue Bonds

5.00%, due 12/1/37

   4,985,000    4,564,565 
           8,158,705 
             
  California 41.2% (24.7% of Managed Assets)          
 

Big Pine Unified School District, Capital Appreciation, Unlimited General

Obligation
Insured: AGM
(zero coupon), due 8/1/40

   5,050,000    970,963 
  California County Tobacco Securitization Agency, Asset Backed, Revenue Bonds          
  Series A
5.125%, due 6/1/38		   3,060,000    2,325,172 
  5.60%, due 6/1/36   2,575,000    2,053,923 
 

California Municipal Finance Authority, Southwestern Law School, Revenue

Bonds
6.50%, due 11/1/41

   2,165,000    2,348,700 
 

California Pollution Control Financing Authority, Revenue Bonds

5.00%, due 7/1/27 (a)(b)

   5,000,000    4,503,550 
¤

California State Health Facility Financing Authority, Stanford Hospital Clinics,

Revenue Bonds
Series A
5.00%, due 8/15/51 (b)(c)

   21,000,000    20,106,030 
 

Carson Redevelopment Agency, Redevelopment Project Area 1, Tax Allocation

Series B, Insured: NATL-RE
(zero coupon), due 10/1/25

   75,000    37,835 
 

Ceres Unified School District, Cabs-Election, Unlimited General Obligation

Series A
(zero coupon), due 8/1/43

   6,375,000    831,937 
¤

City of Sacramento, California, Water, Revenue Bonds

5.00%, due 9/1/42 (b)(c)

   19,500,000    19,545,630 
 

El Dorado Union High School District, Unlimited General Obligation

(zero coupon), due 8/1/36

   5,080,000    1,334,008 
  Fontana Unified School District, Cabs Unlimited General Obligation          
  Series C
(zero coupon), due 8/1/34		   14,000,000    3,975,020 
  Series C
(zero coupon), due 8/1/40		   10,000,000    1,892,800 
  Series C
(zero coupon), due 8/1/41		   19,700,000    3,505,221 
  Series C
(zero coupon), due 8/1/42		   18,600,000    3,111,036 
 

Foothill-Eastern Transportation Corridor Agency, Revenue Bonds

(zero coupon), due 1/15/32

   5,000,000    1,580,400 
¤ Golden State Tobacco Securitization Corp.,          
  Asset Backed, Revenue Bonds          
  Series A-2
5.30%, due 6/1/37		   5,000,000    3,533,100 
  Revenue Bonds          
  Series A, Insured: AGC, FGIC
5.00%, due 6/1/35 (b)(c)		   16,110,000    15,753,486 
  Inglewood Public Financing Authority, Cabs-Lease, Revenue Bonds          
  (zero coupon), due 8/1/30   2,530,000    707,590 
  (zero coupon), due 8/1/31   2,530,000    640,672 
 

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    191,793 
¤

Long Beach Community College District, Election 2008, Unlimited General

Obligation
Series B
5.00%, due 8/1/39 (b)(c)

   20,000,000    19,713,390 
  Marysville Joint Unified School District, Capital Project, Certificates of Participation          
  Insured: AGM
(zero coupon), due 6/1/25		   1,850,000    938,801 
  Insured: AGM
(zero coupon), due 6/1/27		   2,445,000    1,070,959 
  Insured: AGM
(zero coupon), due 6/1/33		   2,800,000    792,204 
  Insured: AGM
(zero coupon), due 6/1/34		   2,820,000    749,979 
  Insured: AGM
(zero coupon), due 6/1/38		   2,820,000    571,332 
  Insured: AGM
(zero coupon), due 6/1/39		   2,820,000    531,655 
  Insured: AGM
(zero coupon), due 6/1/40		   2,820,000    495,728 
 

Merced Union High School District, Cabs-Election, Unlimited General Obligation

Series C
(zero coupon), due 8/1/41

   16,780,000    2,828,101 
 

Oakland Unified School District, Election 2000, Unlimited General Obligation

Insured: NATL-RE
4.50%, due 8/1/30

   10,000,000    8,836,900 
 

Oceanside, California Unified School District, Unlimited General Obligation

Series C
(zero coupon), due 8/1/50

   20,190,000    2,055,948 
 

Richland School District, Unlimited General Obligation

Series C, Insured: AGM
(zero coupon), due 8/1/49

   5,000,000    476,000 
¤

Riverside County Transportation Commission, Limited Tax, Revenue Bonds

Series A
5.25%, due 6/1/39 (b)(c)

   19,100,000    19,852,106 
 

San Bernardino City Unified School District, Unlimited General Obligation

Series C, Insured: NATL-RE
(zero coupon), due 8/1/31

   5,000,000    1,631,100 
  San Joaquin Hills Transportation Corridor Agency, Revenue Bonds          
  Series A, Insured: NATL-RE
(zero coupon), due 1/15/31		   150,000    48,868 
  Series A, Insured: NATL-RE
5.25%, due 1/15/30		   900,000    857,196 
 

San Jose Redevelopment Agency, Merged Area Redevelopment Project, Tax Allocation

Series C, Insured: NATL-RE
3.75%, due 8/1/28

   2,220,000    1,831,922 
  Stockton Public Financing Authority, Parking & Capital Projects, Revenue Bonds          
  Insured: FGIC, NATL-RE
4.25%, due 9/1/14		   50,000    49,431 
  Insured: FGIC, NATL-RE
4.50%, due 9/1/17		   100,000    95,501 
  Insured: FGIC, NATL-RE
4.80%, due 9/1/20		   105,000    97,484 
  Stockton Public Financing Authority, Redevelopment Projects, Revenue Bonds          
  Series A, Insured: RADIAN
5.25%, due 9/1/31		   630,000    451,118 
  Series A, Insured: RADIAN
5.25%, due 9/1/34		   2,900,000    1,990,589 
 

Stockton Public Financing Authority, Water System, Capital Improvement

Projects, Revenue Bonds
Series A, Insured: NATL-RE
5.00%, due 10/1/31

   175,000    158,072 
  Stockton, California Unified School District, Unlimited General Obligation          
  Series D, Insured: AGM
(zero coupon), due 8/1/35		   3,165,000    833,281 
  Series D, Insured: AGM
(zero coupon), due 8/1/40		   13,930,000    2,646,979 
 

Tobacco Securitization Authority of Southern California, Asset-Backed, Revenue

Bonds
Series A-1
5.00%, due 6/1/37

   3,000,000    2,256,570 
¤

University of California, Regents Medical Center, Revenue Bonds

Series J
5.00%, due 5/15/43 (b)(c)

   23,260,000    22,563,213 
           183,373,293 
             
  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    263,122 
             
  Florida 7.0% (4.2% 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    18,344,600 
 

JEA Electric System, Revenue Bonds

Series C
5.00%, due 10/1/37 (b)(c)

   12,980,000    12,998,146 
           31,342,746 
             
  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

   440,000    447,951 
             
  Guam 3.4% (2.1% of Managed Assets)          
 

Guam Economic Development & Commerce Authority, Tobacco Settlement

Asset Backed, Revenue Bonds
5.625%, due 6/1/47

   500,000    372,945 
 

Guam International Airport Authority, Revenue Bonds

Series C
5.00%, due 10/1/21 (a)

   5,500,000    5,528,820 
 

Guam Power Authority, Revenue Bonds

Series A
5.00%, due 10/1/34

   10,000,000    9,415,700 
           15,317,465 
             
  Hawaii 2.9% (1.7% 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    12,941,079 
             
  Illinois 13.7% (8.2% of Managed Assets)          
 

Chicago, Illinois O' Hare International Airport, Revenue Bonds

Insured: AGM
5.75%, due 1/1/38

   5,000,000    4,993,050 
 

Chicago, Unlimited General Obligation

Series C
5.00%, due 1/1/40 (b)(c)

   19,570,000    17,589,516 
 

Illinois, Unlimited General Obligation

5.25%, due 7/1/31 (b)(c)

   20,000,000    19,149,975 
¤

Metropolitan Pier & Exposition Authority, McCormick Place Project, Revenue

Bonds
Series B
5.00%, due 6/15/52 (b)(c)

   20,000,000    19,171,586 
           60,904,127 
             
  Indiana 1.4% (0.9% of Managed Assets)          
 

Anderson Economic Development Revenue, Anderson University Project,

Revenue Bonds
5.00%, due 10/1/32

   1,290,000    1,072,648 
 

Indiana Finance Authority, Private Activity Ohio River Bridges East End Crossing

Project, Revenue Bonds
5.00%, due 7/1/40 (a)

   6,220,000    5,292,473 
           6,365,121 
             
  Iowa 1.1% (0.7% of Managed Assets)          
 

Coralville Urban Renewal Revenue, Tax Increment, Tax Allocation

Series C
5.00%, due 6/1/47

   4,220,000    3,255,477 
 

Iowa Higher Education Loan Authority, Private College Facility, Wartburg

College, Revenue Bonds
Series B
5.50%, due 10/1/31

   2,075,000    1,870,301 
           5,125,778 
             
  Kansas 4.3% (2.6% of Managed Assets)          
¤

Kansas Development Finance Authority, Adventist Health Sunbelt Obligated

Group, Revenue Bonds
Series A
5.00%, due 11/15/32 (b)(c)

   19,290,000    19,301,912 
             
  Louisiana 3.2% (1.9% 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    875,330 
 

Louisiana Public Facilities Authority, Archdiocese of New Orleans Project,

Revenue Bonds
Insured: CIFG
4.50%, due 7/1/37

   9,400,000    8,614,348 
  Louisiana Public Facilities Authority, Black & Gold Facilities Project, Revenue Bonds          
  Series A, Insured: CIFG
4.50%, due 7/1/38		   405,000    292,106 
  Series A, Insured: CIFG
5.00%, due 7/1/22		   1,105,000    1,053,275 
  Series A, Insured: CIFG
5.00%, due 7/1/24		   1,200,000    1,109,808 
  Series A, Insured: CIFG
5.00%, due 7/1/30		   2,870,000    2,414,876 
           14,359,743 
             
  Maryland 4.1% (2.4% of Managed Assets)          
 

Maryland Health & Higher Educational Facilities Authority, John Hopkins Health

System Obligated Group, Revenue Bonds
5.00%, due 5/15/43 (b)(c)

   18,500,000    18,189,222 
             
  Massachusetts 0.1% (0.0%‡ of Managed Assets)          
 

Massachusetts Development Finance Agency, Seven Hills Foundation &

Affiliates, Revenue Bonds
Insured: RADIAN
5.00%, due 9/1/35

   435,000    368,854 
             
  Michigan 11.6% (7.0% of Managed Assets)          
 

Detroit, Michigan Distribution State Aid, General Obligation Limited

5.25%, due 11/1/35

   12,665,000    11,594,554 
  Detroit, Michigan Water and Sewerage Department, Senior Lien, Revenue Bonds          
  Series A
5.00%, due 7/1/32		   1,500,000    1,291,455 
 

Series A

5.25%, due 7/1/39

   14,080,000    12,172,582 
  Detroit, Michigan Water Supply System, Revenue Bonds          
  Series A, Insured: NATL-RE, FGIC
4.50%, due 7/1/31		   760,000    634,676 
  Series A
5.75%, due 7/1/37		   5,000,000    4,650,900 
 

Michigan Finance Authority, Limited Obligation, Public School Academy,

University Learning, Revenue Bonds
7.375%, due 11/1/30

   2,920,000    3,150,563 
 

Michigan Finance Authority, Public School Academy, Revenue Bonds

7.50%, due 11/1/40

   2,745,000    2,957,875 
  Michigan Public Educational Facilities Authority, Dr. Joseph F. Pollack, Revenue Bonds          
  8.00%, due 4/1/30   1,195,000    1,257,726 
  8.00%, due 4/1/40   500,000    523,300 
  Michigan Tobacco Settlement Finance Authority, Revenue Bonds          
  Series A
6.00%, due 6/1/34		   5,000,000    3,865,900 
  Series A
6.00%, due 6/1/48		   13,435,000    9,797,071 
           51,896,602 
             
  Missouri 0.6% (0.3% of Managed Assets)          
  St. Louis County Industrial Development Authority, Nazareth Living Center, Revenue Bonds          
  5.875%, due 8/15/32   750,000    681,480 
  6.125%, due 8/15/42   2,120,000    1,904,884 
           2,586,364 
             
  Nebraska 4.3% (2.6% of Managed Assets)          
 

Central Plains Energy, Project No. 3, Revenue Bonds

5.25%, due 9/1/37 (b)(c)

   20,000,000    19,000,000 
             
  Nevada 2.7% (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 (b)

   12,500,000    12,035,250 
             
  New Hampshire 0.5% (0.3% of Managed Assets)          
 

Manchester Housing & Redevelopment Authority Inc., Revenue Bonds

Series B, Insured: ACA
(zero coupon), due 1/1/24

   4,740,000    2,026,966 
             
  New Jersey 4.4% (2.7% of Managed Assets)          
  New Jersey Economic Development Authority, Continental Airlines, Inc. Project, Revenue Bonds          
  5.25%, due 9/15/29 (a)   6,620,000    5,924,370 
  7.00%, due 11/15/30 (a)   2,500,000    2,499,875 
  New Jersey Economic Development Authority, UMM Energy Partners, Revenue Bonds          
  Series A
4.75%, due 6/15/32 (a)		   1,000,000    893,340 
  Series A
5.00%, due 6/15/37 (a)		   1,000,000    899,750 
 

New Jersey Tobacco Settlement Financing Corp., Revenue Bonds

Series 1A
5.00%, due 6/1/41

   14,000,000    9,515,380 
           19,732,715 
             
  New Mexico 4.3% (2.6% 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    19,059,569 
             
  New York 8.4% (5.0% of Managed Assets)          
 

Nassau County New York, General Obligation Limited

Series A
4.00%, due 4/1/33 (b)(c)

   21,150,000    18,241,452 
 

Onondaga Civic Development Corp., St. Josephs Hospital Health Center,

Revenue Bonds
5.00%, due 7/1/42

   2,000,000    1,688,680 
 

Port Authority of New York & New Jersey, Revenue Bonds

4.00%, due 7/15/31 (a)(b)(c)

   13,535,000    11,961,787 
 

Riverhead Industrial Development Agency, Revenue Bonds

7.00%, due 8/1/43

   5,595,000    5,580,621 
           37,472,540 
             
  Ohio 10.1% (6.0% 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    20,056,027 
  Buckeye Tobacco Settlement Financing Authority, Asset-Backed, Senior Turbo, Revenue Bonds          
  Series A-2
5.875%, due 6/1/30		   2,425,000    1,758,731 
  Series A-2
5.875%, due 6/1/47		   10,690,000    7,206,664 
  Series A-2
6.00%, due 6/1/42		   5,915,000    4,076,973 
  Southeastern Ohio Port Authority, Hospital Facilities Revenue, Memorial Health Systems, Revenue Bonds          
  5.75%, due 12/1/32   6,700,000    6,732,696 
  6.00%, due 12/1/42   5,000,000    5,041,800 
           44,872,891 
             
  Pennsylvania 4.6% (2.7% of Managed Assets)          
  Harrisburg Parking Authority, Packaging Revenue, Revenue Bonds          
  Series O, Insured: AMBAC
5.00%, due 8/1/14		   145,000    144,249 
  Series O, Insured: AMBAC
5.00%, due 8/1/16		   60,000    59,072 
 

Harrisburg, Capital Appreciation, Unlimited General Obligation

Series F, Insured: AMBAC
(zero coupon), due 9/15/21

   95,000    51,265 
 

Pennsylvania Turnpike Commission, Revenue Bonds

Series C
5.00%, due 12/1/43

   12,570,000    12,225,205 
 

Philadelphia Authority for Industrial Development, Please Touch Museum Project, Revenue Bonds

5.25%, due 9/1/31

   2,500,000    2,029,725 
  Philadelphia Hospitals and Higher Education Facilities Authority, Temple University Health System, Revenue Bonds      
  Series A
5.00%, due 7/1/34		   2,000,000    1,619,940 
  Series A
5.625%, due 7/1/36		   2,975,000    2,575,368 
 

Philadelphia, Unlimited General Obligation

6.00%, due 8/1/36

   1,625,000    1,725,815 
           20,430,639 
             
  Rhode Island 3.4% (2.1% of Managed Assets)          
 

Narragansett Bay Commission Wastewater System, Revenue Bonds

Series A
5.00%, due 9/1/38 (b)(c)

   15,000,000    15,294,150 
             
  Texas 13.7% (8.2% of Managed Assets)          
 

Clifton Higher Education Finance Corp., Idea Public Schools, Revenue Bonds

5.00%, due 8/15/42

   4,750,000    4,009,760 
 

Harris County Cultural Education Facilities Finance Corp., Baylor Medical

College, Revenue Bonds
5.00%, due 11/15/37

   6,250,000    5,873,812 
  Harris County-Houston Sports Authority, Revenue Bonds          
  Series B, Insured: NATL-RE
(zero coupon), due 11/15/13		   250,000    247,495 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/28		   50,000    19,210 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/30		   8,775,000    2,884,869 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/33		   200,000    52,596 
  Series A, Insured: NATL-RE
(zero coupon), due 11/15/34		   2,520,000    666,540 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/35		   390,000    88,522 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/37		   6,705,000    1,309,956 
  Series A, Insured: NATL-RE
(zero coupon), due 11/15/38		   50,000    9,873 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/38		   125,000    25,478 
  Series A, Insured: NATL-RE
(zero coupon), due 11/15/40		   1,000,000    158,330 
  Series B, Insured: NATL-RE
5.25%, due 11/15/40		   755,000    703,811 
 

Houston Higher Education Finance Corp., Cosmos Foundation, Revenue Bonds

Series A
5.00%, due 2/15/42

   5,000,000    4,370,550 
 

New Hope Cultural Education Facilities Corp., Student Housing, CHF-

Stephenville Tarleton State University Project, Revenue Bonds
Series A
5.375%, due 4/1/28

   1,845,000    1,775,444 
  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    1,098,835 
  Series A
6.00%, due 8/15/42		   5,640,000    5,274,020 
¤ Texas Municipal Gas Acquisition & Supply Corp. III, Revenue Bonds          
  5.00%, due 12/15/29   3,200,000    2,990,464 
  5.00%, due 12/15/30   5,500,000    5,069,240 
  5.00%, due 12/15/32 (b)(c)   20,000,000    18,053,427 
 

Texas State Turnpike Authority, Central Texas System, Revenue Bonds

Insured: AMBAC
(zero coupon), due 8/15/35

   23,750,000    6,374,737 
           61,056,969 
             
  U.S. Virgin Islands 2.6% (1.6% of Managed Assets)          
 

Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue

Bonds
Series A
5.00%, due 10/1/32

   2,475,000    2,343,751 
 

Virgin Islands Public Finance Authority, Matching Fund Loan Notes, Revenue

Bonds
Series A
5.00%, due 10/1/32

   10,000,000    9,469,700 
           11,813,451 
             
  Utah 1.4% (0.8% of Managed Assets)          
 

Utah State University of Agriculture & Applied Science, Student Building,

Revenue Bonds
Series B
5.00%, due 12/1/44

   4,000,000    4,061,440 
 

Weber County, Summit Mountain Assessment Area, Special Assessment Bond

5.75%, due 1/15/33

   2,000,000    2,059,720 
           6,121,160 
             
  Vermont 0.5% (0.3% of Managed Assets)          
 

Vermont State Student Assistance Corp., Revenue Bonds

Series A
5.10%, due 6/15/32 (a)

   2,360,000    2,110,100 
             
  Virginia 2.5% (1.5% of Managed Assets)          
 

Tobacco Settlement Financing Corp., Revenue Bonds

Series B1
5.00%, due 6/1/47

   10,000,000    6,402,300 
 

Virginia Small Business Financing Authority, Senior Lien, Elizabeth River

Crossing, Revenue Bonds
6.00%, due 1/1/37 (a)

   5,200,000    4,931,108 
           11,333,408 
             
  West Virginia 0.2% (0.1% of Managed Assets)          
 

Ohio County, Wheeling Jesuit, Revenue Bonds

Series A
5.50%, due 6/1/36

   845,000    729,995 
             
 

Total Investments

(Cost $788,922,048) (g)

   161.9%   721,544,159 
  Floating Rate Note Obligations (d)   (51.0)   (227,540,000)
  Fixed Rate Municipal Term Preferred Shares, at Liquidation Value   (15.7)   (70,000,000)
  Other Assets, Less Liabilities   4.8    21,588,316 
  Net Assets Applicable to Common shares   100.0%  $445,592,475 

 

    Contracts
Short		    Unrealized
Appreciation (Depreciation) (f)		 
Futures Contracts (0.0%) ‡          

United States Treasury Note

December 2013 (10 Year) (e)

   (625)  $(89,453)
           

Total Futures Contracts Short

(Settlement Value $(77,675,781))

    $(89,453)

 

¤ Among the Fund's 10 largest holdings or issuers held, as of August 31, 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) 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.
(c) All or portion of principal amount transferred to a Tender Option Bond ("TOB") Issuer in exchange for TOB Residuals and cash.
(d) Proceeds received from TOB transactions.
(e) As of August 31, 2013, cash in the amount of $921,875 is on deposit with a broker for futures transactions.
(f) Represents the difference between the value of the contracts at the time they were opened and the value as of August 31, 2013.
(g) As of August 31, 2013, cost is $789,609,039 for federal income tax purposes and net unrealized depreciation is as follows:

  Gross unrealized appreciation  $1,047,956 
  Gross unrealized depreciation   (69,112,836)
  Net unrealized depreciation  $(68,064,880)

 

"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 Assured Guaranty Corp.
AGM Assured Guaranty Municipal Corp.
AMBAC Ambac Assurance Corp.
CIFG CIFG Group
FGIC Financial Guaranty Insurance Co.
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 August 31, 2013, for valuing the Fund's assets and liabilities.

 

Asset 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 
Investments in Securities (a)                    
Municipal Bonds  $—   $721,544,159   $—   $721,544,159 
Total Investments in Securities  $—   $721,544,159   $—   $721,544,159 

 

 

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)  $(89,453)  $—   $—   $(89,453)
Total Other Financial Instruments  $(89,453)  $—   $—   $(89,453)

 

(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 August 31, 2013, the Fund did not have any transfers between Level 1 and Level 2 fair value measurements.

 

As of August 31, 2013, the Fund did not hold any investments with significant unobservable inputs (Level 3).

 

 
 

 

MainStay DefinedTerm Municipal Opportunities Fund

 

NOTES TO PORTFOLIOS OF INVESTMENTS August 31, 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 of Trustees (the "Board") of the MainStay DefinedTerm Municipal Opportunities Fund (the "Fund") has adopted procedures for the valuation of the Fund's securities and has delegated the responsibility for valuation determinations 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 meets (in person, via electronic mail or via teleconference) on an as-needed basis. The Valuation Committee meets 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 ( the "Manager"), aided to whatever extent necessary by MacKay Shields LLC (the "Subadvisor") 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 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 the 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" refers 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 August 31, 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
• 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 August 31, 2013, there have been no changes to the fair value methodologies.

 

 
 

 

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 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 August 31, 2013, the Fund did not hold any securities that were fair valued in such a manner.

 

Municipal debt securities are valued primarily at the evaluated mean prices based on observable inputs supplied by a pricing agent or broker selected by the Manager in consultation with the Subadvisor, whose prices reflect broker/dealer supplied valuations and electronic data processing techniques, if such prices are deemed by the Manager, in consultation with the Subadvisor, to be representative of market values, at the regular close of trading of the Exchange on each valuation date. Municipal debt 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 and are generally categorized as Level 1 in the hierarchy.

 

Temporary cash investments acquired in excess of 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 within seven days. 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 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: October 25, 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: October 25, 2013

 

 

By:    /s/ Jack R. Benintende

Jack R. Benintende

Treasurer and Principal Financial and

Accounting Officer

 

Date: October 25, 2013