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 MacKay 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., 30 Hudson Street, Jersey City, NJ 07302

(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, 2019

 

 

 

 

Item 1. Schedule of Investments.

 

The schedule of investments for the period ended February 28, 2019 is filed herewith.

 

MainStay MacKay DefinedTerm Municipal Opportunities Fund

 

Portfolio of Investments February 28, 2019 (Unaudited)

 

   Principal
Amount		    Value
Municipal Bonds 160.6% †          
             
  Arizona 0.4% (0.2% of Managed Assets)          
Phoenix Industrial Development Authority, Espiritu Community Development Corp., Revenue Bonds
Series A
6.25%, due 7/1/36		  $1,985,000   $1,985,079 
             
  California 16.8% (10.4% of Managed Assets)          
  California Municipal Finance Authority, LAX Integrated Express Solutions Project, Revenue Bonds (a)          
  Series A
5.00%, due 12/31/33		   3,800,000    4,357,194 
  Series A
5.00%, due 12/31/34		   4,000,000    4,567,280 
  City of Sacramento, California, Water, Revenue Bonds
5.00%, due 9/1/42  (b)		   19,500,000    21,869,510 
  Golden State Tobacco Securitization Corp., Asset-Backed, Revenue Bonds          
  Series A-1
5.00%, due 6/1/34		   8,000,000    8,913,360 
  Series A-2
5.30%, due 6/1/37		   5,225,000    5,246,997 
  Riverside County Transportation Commission, Limited Tax, Revenue Bonds
Series A
5.25%, due 6/1/39 (b)		   19,100,000    22,006,058 
  Stockton Public Financing Authority, Parking & Capital Projects, Revenue Bonds
Insured: NATL-RE
4.80%, due 9/1/20		   105,000    105,156 
  University of California, Regents Medical Center, Revenue Bonds
Series J
5.00%, due 5/15/43  (b)		   23,260,000    25,230,468 
           92,296,023 
  Colorado 0.5% (0.3% of Managed Assets)          
  Dominion Water & Sanitation District, Revenue Bonds
6.00%, due 12/1/46		   2,500,000    2,638,625 
             
  Connecticut 0.2% (0.1% of Managed Assets)          
  City of Hartford CT, Unlimited General Obligation
Series A
5.00%, due 4/1/31		   1,000,000    1,067,980 
             
  District of Columbia 0.5% (0.3% of Managed Assets)          
  Metropolitan Washington Airports Authority Dulles Toll Road, Revenue Bonds
Series C, Insured: AGC
6.50%, due 10/1/41		   2,400,000    2,991,648 
             
  Florida 7.5% (4.7% of Managed Assets)          
  County of Orange FL Tourist Development Tax Revenue, Revenue Bonds
4.00%, due 10/10/33 (b)		   25,000,000    26,636,577 
  JEA Electric System, Revenue Bonds          
  Series B
4.00%, due 10/1/38		   645,000    661,744 
  Series C
5.00%, due 10/1/37 (b)		   12,980,000    14,131,962 
           41,430,283 
  Guam 2.9% (1.8% of Managed Assets)          
  Guam Government, Business Privilege Tax, Revenue Bonds
Series B-1
5.00%, due 1/1/42		   3,800,000    3,885,576 
  Guam Government, Waterworks Authority, Revenue Bonds
5.50%, due 7/1/43		   7,550,000    8,080,689 
  Guam International Airport Authority, Revenue Bonds
Series C, Insured: AGM
6.00%, due 10/1/34 (a)		   3,425,000    3,944,573 
           15,910,838 
  Idaho 1.0% (0.7% of Managed Assets)          
 

Idaho Housing & Finance Association, Revenue Bonds
Series A, Insured: GNMA
4.50%, due 1/21/49

   5,492,136    5,760,427 
             
  Illinois 20.8% (12.9% of Managed Assets)          
  Chicago Board of Education Dedicated Capital Improvement, Special Tax
5.75%, due 4/1/34		   8,000,000    9,111,600 
  Chicago Board of Education Dedicated Capital Improvement, Unlimited General Obligation (c)          
  Series B
7.00%, due 12/1/42		   3,500,000    4,162,550 
  Series A
7.00%, due 12/1/46		   4,000,000    4,738,040 
  Chicago Board of Education, Unlimited General Obligation          
  Series A, Insured: AGM
5.50%, due 12/1/39 (b)		   20,000,000    21,330,000 
  Series A
7.00%, due 12/1/44		   2,880,000    3,310,675 
  Chicago O'Hare International Airport, Revenue Bonds
Insured: AGM
5.75%, due 1/1/38		   5,000,000    5,606,800 
  Chicago, Illinois Wastewater Transmission, Revenue Bonds
Series C
5.00%, due 1/1/32		   7,120,000    7,860,694 
  Chicago, Unlimited General Obligation          
  Series C
5.00%, due 1/1/25		   1,435,000    1,486,086 
  Series D
5.00%, due 1/1/29		   500,000    501,035 
  Series A
5.25%, due 1/1/27		   3,000,000    3,255,300 
  Series A
6.00%, due 1/1/38		   4,430,000    4,985,123 
  Chicago, Waterworks, Revenue Bonds
Series 2017-2, Insured: AGM
5.00%, due 11/1/38		   2,500,000    2,748,825 
  Illinois Sports Facilities Authority, Revenue Bonds
Insured: AGM
5.25%, due 6/15/32		   150,000    166,434 
  Public Building Commission of Chicago, Chicago Transit Authority, Revenue Bonds
Insured: AMBAC
5.25%, due 3/1/31		   600,000    688,110 
  Sales Tax Securitization Corp., Revenue Bonds
Series C, Insured: BAM
5.25%, due 1/1/48 (b)		   21,000,000    23,466,030 
  State of Illinois, Unlimited General Obligation
5.25%, due 7/1/31  (b)		   20,000,000    20,877,705 
           114,295,007 
  Kansas 3.8% (2.4% of Managed Assets)          
 

Kansas Development Finance Authority, Adventist Health Sunbelt Obligated Group, Revenue Bonds
Series A
5.00%, due 11/15/32 (b)

   19,290,000    20,837,591 
             
  Maryland 4.1% (2.6% of Managed Assets)          
 

Maryland Health & Higher Educational Facilities Authority, Johns Hopkins Health System Obligated Group, Revenue Bonds
Series C
5.00%, due 5/15/43 (b)

   20,870,000    22,787,633 
             
  Massachusetts 0.7% (0.5% of Managed Assets)          
 

Commonwealth of Massachusetts, Limited General Obligation
Series A
5.25%, due 1/1/44

   3,500,000    4,122,370 
             
  Michigan 14.2% (8.8% of Managed Assets)          
  Great Lakes Water Authority, Sewage Disposal System, Revenue Bonds          
  Senior Lien-Series A
5.00%, due 7/1/32		   1,500,000    1,615,935 
  Series B, Insured: AGM
5.00%, due 7/1/34 (b)		   24,940,000    28,776,146 
  Senior Lien-Series A
5.25%, due 7/1/39		   5,000,000    5,392,900 
  Great Lakes Water Authority, Water Supply System, Revenue Bonds          
  Senior Lien-Series C
5.00%, due 7/1/41		   1,005,000    1,052,155 
  Senior Lien-Series A
5.25%, due 7/1/41		   2,385,000    2,538,475 
  Senior Lien-Series A
5.75%, due 7/1/37		   5,000,000    5,406,300 
  Michigan Finance Authority, Trinity Health Corp., Revenue Bonds
Series 2016
5.25%, due 12/1/41 (b)		   21,630,000    24,441,685 
  Michigan Public Educational Facilities Authority, Dr. Joseph F. Pollack, Revenue Bonds          
  8.00%, due 4/1/30   1,195,000    1,226,954 
  8.00%, due 4/1/40   500,000    512,110 
  Michigan Tobacco Settlement Finance Authority, Revenue Bonds
Series A
6.00%, due 6/1/48		   5,200,000    5,123,300 
  Wayne County Michigan, Capital Improvement, Limited General Obligation
Series A, Insured: AGM
5.00%, due 2/1/38		   2,135,000    2,139,804 
           78,225,764 
  Minnesota 0.3% (0.2% of Managed Assets)          
 

Blaine Minnesota Senior Housing & Healthcare, Crest View Senior Community Project, Revenue Bonds
Series A
5.75%, due 7/1/35

   2,000,000    1,930,080 
             
  Nebraska 3.9% (2.4% of Managed Assets)          
 

Central Plains Energy, Project No. 3, Revenue Bonds
5.25%, due 9/1/37 (b)

   20,000,000    21,617,700 
             
  Nevada 2.5% (1.5% of Managed Assets)          
  City of Reno NV, Transportation Rail Access Project, Revenue Bonds          
  Series B, Insured: AGM
5.00%, due 6/1/26		   410,000    474,099 
  Series B, Insured: AGM
5.00%, due 6/1/27		   430,000    501,152 
  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    12,510,125 
           13,485,376 
  New Hampshire 0.7% (0.4% of Managed Assets)          
 

Manchester Housing & Redevelopment Authority, Inc., Revenue Bonds
Series B. Insured: ACA
(zero coupon), due 1/1/24

   4,740,000    3,743,842 
             
  New Jersey 1.7% (1.0% of Managed Assets)          
  New Jersey Economic Development Authority, The Goethals Bridge Replacement Project, Revenue Bonds
Insured: AGM
5.125%, due 1/1/39 (a)		   500,000    541,530 
  New Jersey Housing & Mortgage Finance Agency, Revenue Bonds
Series C
4.75%, due 10/1/50		   2,500,000    2,754,025 
  New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement, Revenue Bonds
Series A
5.00%, due 6/15/30		   5,000,000    5,585,600 
  Tobacco Settlement Financing Corp., Revenue Bonds
Series A
5.00%, due 6/1/46		   300,000    316,866 
           9,198,021 
  New York 7.2% (4.5% of Managed Assets)          
  New York Liberty Development Corp., World Trade Center, Revenue Bonds
Class 3
7.25%, due 11/15/44 (c)		   13,390,000    15,608,723 
  New York Transportation Development Corp., LaGuardia Airport Terminal B Redevelopment Project, Revenue Bonds
Series A, Insured: AGM
4.00%, due 7/1/36 (b)		   20,000,000    20,418,000 
  Riverhead Industrial Development Agency, Revenue Bonds
7.00%, due 8/1/43		   3,395,000    3,703,877 
           39,730,600 
  North Dakota 0.9% (0.5% of Managed Assets)          
 

North Dakota Housing Finance Agency, Revenue Bonds
Series A
3.75%, due 7/1/38

   4,710,000    4,759,314 
             
  Ohio 2.9% (1.8% of Managed Assets)          
  Buckeye Tobacco Settlement Financing Authority, Asset-Backed, Senior Turbo, Revenue Bonds          
  Series A-2
5.125%, due 6/1/24		   2,440,000    2,263,832 
  Series A-2
5.75%, due 6/1/34		   2,425,000    2,265,120 
  Series A-2
5.875%, due 6/1/30		   12,200,000    11,517,166 
           16,046,118 
  Pennsylvania 4.2% (2.6% of Managed Assets)          
  Commonwealth Financing Authority PA, Tobacco Master Settlement Payment, Revenue Bonds
Insured: AGM
4.00%, due 6/1/39		   3,000,000    3,075,720 
  Commonwealth of Pennsylvania, Certificates of Participation
Series A
5.00%, due 7/1/37		   850,000    952,060 
  Harrisburg, Unlimited General Obligation
Series F, Insured: AMBAC
(zero coupon), due 9/15/21		   305,000    272,450 
  Pennsylvania Economic Development Financing Authority, Capitol Region Parking System, Revenue Bonds
Series B
6.00%, due 7/1/53 (b)		   14,260,000    16,337,745 
  Philadelphia Authority for Industrial Development, Nueva Esperanza, Inc., Revenue Bonds
8.20%, due 12/1/43		   2,000,000    2,185,180 
           22,823,155 
  Puerto Rico 30.4% (18.8% of Managed Assets)          
  Children’s Trust Fund Puerto Rico Tobacco Settlement, Revenue Bonds
5.50%, due 5/15/39		   12,965,000    13,097,891 
  COFINA Senior Bonds, 2042 National Custodial Trust, Revenue Bonds
Series 2007-A
(zero coupon), due 8/1/42		   59,965    56,816 
     Series 2007-A
(zero coupon), due 8/1/42		   182,100    181,645 
  Commonwealth of Puerto Rico, Aqueduct & Sewer Authority, Revenue Bonds          
  Series A, Insured: AGC
5.00%, due 7/1/25		   310,000    318,603 
  Series A, Insured: AGC
5.125%, due 7/1/47		   3,550,000    3,574,566 
  Series A
6.00%, due 7/1/38		   10,000,000    10,025,000 
  Series A
6.00%, due 7/1/44		   590,000    591,475 
  Commonwealth of Puerto Rico, Public Improvement, Unlimited General Obligation (d)          
  Insured: AGM
4.50%, due 7/1/23		   280,000    280,647 
  Series A, Insured: AGM
5.00%, due 7/1/35		   17,165,000    17,817,270 
  Insured: AGM
5.125%, due 7/1/30		   1,365,000    1,396,982 
  Series A, Insured: AGC
5.25%, due 7/1/23		   145,000    149,582 
  Series A-4, Insured: AGM
5.25%, due 7/1/30		   4,425,000    4,552,175 
  Series A, Insured: AGM
5.375%, due 7/1/25		   1,340,000    1,423,321 
  Series A, Insured: AMBAC
5.50%, due 7/1/19		   55,000    55,407 
  Series A, Insured: AGM
5.50%, due 7/1/27		   2,230,000    2,374,905 
  Series A, Insured: AGC
5.50%, due 7/1/32		   255,000    262,183 
  Series C, Insured: AGM
5.50%, due 7/1/32		   1,520,000    1,562,818 
  Series C, Insured: AGM
5.75%, due 7/1/37		   5,440,000    5,576,925 
  Series C-7, Insured: NATL-RE
6.00%, due 7/1/27		   2,615,000    2,671,353 
  Series A, Insured: AGM
6.00%, due 7/1/33		   875,000    905,730 
  Series A, Insured: AGM
6.00%, due 7/1/34		   755,000    810,749 
  Puerto Rico Convention Center District Authority, Revenue Bonds (d)          
  Series A, Insured: AGC
4.50%, due 7/1/36		   13,080,000    13,094,781 
  Series A, Insured: AGC
5.00%, due 7/1/27		   635,000    651,091 
  Series A, Insured: AMBAC
5.00%, due 7/1/31		   340,000    340,187 
  Puerto Rico Electric Power Authority, Revenue Bonds (d)          
  Series DDD, Insured: AGM
3.625%, due 7/1/23		   755,000    755,045 
  Series DDD, Insured: AGM
3.65%, due 7/1/24		   2,830,000    2,830,000 
  Series SS, Insured: NATL-RE
5.00%, due 7/1/19		   4,800,000    4,821,888 
  Series PP, Insured: NATL-RE
5.00%, due 7/1/24		   1,130,000    1,136,848 
  Series PP, Insured: NATL-RE
5.00%, due 7/1/25		   165,000    165,937 
  Series TT, Insured: AGM
5.00%, due 7/1/27		   310,000    317,855 
  Puerto Rico Highway & Transportation Authority, Revenue Bonds (d)          
  Series AA-1, Insured: AGM
4.95%, due 7/1/26		   6,195,000    6,334,264 
  Series D, Insured: AGM
5.00%, due 7/1/32		   960,000    978,960 
  Series N, Insured: AMBAC
5.25%, due 7/1/30		   2,415,000    2,611,315 
  Series N, Insured: AMBAC
5.25%, due 7/1/31		   3,485,000    3,762,545 
  Series CC, Insured: AGM
5.25%, due 7/1/32		   2,075,000    2,309,662 
  Series CC, Insured: AGM
5.25%, due 7/1/33		   455,000    505,596 
  Series CC, Insured: AGM
5.25%, due 7/1/34		   2,685,000    2,978,900 
  Series N, Insured: AGC
5.25%, due 7/1/34		   2,090,000    2,318,771 
  Series CC, Insured: AGM
5.25%, due 7/1/36		   1,530,000    1,686,137 
  Series N, Insured: AGC, AGM
5.50%, due 7/1/25		   575,000    637,687 
  Series CC, Insured: AGM
5.50%, due 7/1/29		   235,000    266,852 
  Series N, Insured: AMBAC
5.50%, due 7/1/29		   1,025,000    1,130,924 
  Series CC, Insured: AGM
5.50%, due 7/1/30		   3,185,000    3,621,377 
  Puerto Rico Infrastructure Financing Authority, Revenue Bonds (d)          
  Series C, Insured: AMBAC
5.50%, due 7/1/23		   1,500,000    1,605,450 
  Series C, Insured: AMBAC
5.50%, due 7/1/24		   335,000    361,817 
  Series C, Insured: AMBAC
5.50%, due 7/1/25		   1,830,000    1,991,607 
  Series C, Insured: AMBAC
5.50%, due 7/1/26		   660,000    722,555 
  Puerto Rico Municipal Finance Agency, Revenue Bonds          
  Series A, Insured: AGM
5.00%, due 8/1/20		   670,000    676,137 
  Series A, Insured: AGM
5.00%, due 8/1/21		   810,000    821,210 
  Series A, Insured: AGM
5.00%, due 8/1/22		   835,000    849,846 
  Series A, Insured: AGM
5.00%, due 8/1/27		   2,770,000    2,840,192 
  Series A, Insured: AGM
5.00%, due 8/1/30		   1,685,000    1,720,958 
  Series A, Insured: AGM
5.25%, due 8/1/21		   230,000    234,317 
  Series C, Insured: AGC
5.25%, due 8/1/21		   3,775,000    3,957,370 
  Puerto Rico Public Buildings Authority, Government Facilities, Revenue Bonds (d)          
  Series F, Insured: AGC
5.25%, due 7/1/21		   2,090,000    2,187,561 
  Series M-3, Insured: NATL-RE
6.00%, due 7/1/25		   385,000    426,977 
  Series M-3, Insured: NATL-RE
6.00%, due 7/1/27		   10,000,000    10,174,800 
  Puerto Rico Sales Tax Financing Corp., Revenue Bonds          
  Series A-1
4.50%, due 7/1/34		   4,695,000    4,700,869 
  Series A-1
5.00%, due 7/1/58		   13,440,000    12,775,392 
           166,989,723 
  Rhode Island 3.0% (1.8% of Managed Assets)          
 

Narragansett Bay Commission Wastewater System, Revenue Bonds
Series A
5.00%, due 9/1/38 (b)

   15,000,000    16,357,150 
             
  South Carolina 2.2% (1.3% of Managed Assets)          
  Patriots Energy Group Financing Agency, Gas Supply, Revenue Bonds
Series A
4.00%, due 10/1/48 (b)		   10,000,000    10,695,614 
  South Carolina Public Service Authority, Revenue Bonds
Series A
5.00%, due 12/1/31		   825,000    921,129 
  South Carolina Public Service Authority, Santee Cooper Project, Revenue Bonds
Series B
5.125%, due 12/1/43		   250,000    267,580 
           11,884,323 
  Tennessee 0.4% (0.2% of Managed Assets)          
 

Tennessee Housing & Development Agency, Residential Finance Program, Revenue Bonds
4.25%, due 1/1/50

   2,000,000    2,169,340 
             
  Texas 9.8% (6.1% of Managed Assets)          
  City of Houston TX, Airport System Revenue, Revenue Bonds
Series C
5.00%, due 7/1/29 (a)		   3,000,000    3,599,640 
  Harris County-Houston Sports Authority, Revenue Bonds          
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/28		   50,000    35,477 
  Series A, Insured: AGM, NATL-RE
(zero coupon), due 11/15/38		   175,000    69,951 
  Series H, Insured: NATL-RE
(zero coupon), due 11/15/38		   260,000    99,437 
  Texas Municipal Gas Acquisition & Supply Corp. III, Revenue Bonds
5.00%, due 12/15/32  (b)		   20,000,000    21,286,576 
  Texas Water Development Board, Revenue Bonds
Series B
5.00%, due 4/15/49 (b)		   25,000,000    28,711,125 
           53,802,206 
  U.S. Virgin Islands 4.9% (3.0% of Managed Assets)          
  Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan, Revenue Bonds          
  Series A
5.00%, due 10/1/32		   3,020,000    2,642,500 
  Series A, Insured: AGM
5.00%, due 10/1/32		   2,690,000    2,891,454 
  Virgin Islands Public Finance Authority, Matching Fund Loan, Revenue Bonds          
  Senior Lien-Series B
5.00%, due 10/1/24		   1,685,000    1,659,725 
  Series A-1
5.00%, due 10/1/24		   1,145,000    1,127,825 
  Series A
5.00%, due 10/1/25		   1,000,000    980,000 
  Series B
5.25%, due 10/1/29		   1,865,000    1,795,063 
  Series A
6.625%, due 10/1/29		   2,580,000    2,516,790 
  Virgin Islands Public Finance Authority, Revenue Bonds          
  Series A
5.00%, due 10/1/29		   2,980,000    2,689,450 
  Series A, Insured: AGM
5.00%, due 10/1/32		   5,350,000    5,750,661 
  Virgin Islands Public Finance Authority, Senior Lien-Matching Fund Loan Note, Revenue Bonds          
  Series A-1
4.50%, due 10/1/24		   445,000    428,313 
  Senior Lien-Series B
5.00%, due 10/1/25		   4,385,000    4,297,300 
           26,779,081 
  Utah 1.3% (0.8% of Managed Assets)          
 

Utah Housing Corp., Revenue Bonds
Series A, Insured: GNMA
4.50%, due 1/21/49

   6,987,478    7,328,816 
             
  Virginia 4.9% (3.1% of Managed Assets)          
  Tobacco Settlement Financing Corp., Revenue Bonds
Series B1
5.00%, due 6/1/47		   5,000,000    4,776,950 
  Virginia Commonwealth Transportation Board, Capital Projects, Revenue Bonds
5.00%, due 5/15/31  (b)		   20,315,000    22,419,658 
           27,196,608 
  Washington 5.4% (3.3% of Managed Assets)          
  King County Washington Housing Authority, Ballinger Commons Apartments, Revenue Bonds, County Guaranteed
4.00%, due 5/1/38		   5,500,000    5,654,990 
  Washington Health Care Facilities Authority, Multicare Health System, Revenue Bonds
Series A
5.00%, due 8/15/44  (b)		   19,665,000    21,110,181 
  Washington State Housing Finance Commission, Single Family Program, Revenue Bonds
Series 1N
4.00%, due 6/1/49		   2,500,000    2,683,025 
           29,448,196 
  Wisconsin 0.1% (0.1% of Managed Assets)          
  Public Finance Authority, Bancroft NeuroHealth Project, Revenue Bonds
Series A
5.00%, due 6/1/36 (c)		   500,000    502,980 
             
  Wyoming 0.5% (0.3% of Managed Assets)          
  Wyoming Community Development Authority, Revenue Bonds
Series 1
4.00%, due 12/1/48		   2,500,000    2,676,425 
  Total Investments
(Cost $838,643,786)		   160.6%   882,818,322 
  Floating Rate Note Obligations (e)   (48.4)   (265,975,000)
  Fixed Rate Municipal Term Preferred Shares, at Liquidation Value   (12.7)   (70,000,000)
  Other Assets, Less Liabilities   0.5    2,935,843 
  Net Assets Applicable to Common Shares   100.0%  $549,779,165 

 

†Percentages indicated are based on Fund net assets applicable to Common Shares.
(a)Interest on these securities was subject to alternative minimum tax.
(b)All or portion of principal amount transferred to a Tender Option Bond ("TOB") Issuer in exchange for 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)Bond insurance is paying principal and interest, since the issuer is in default.
(e)Face value of Floating Rate Notes issued in TOB transactions.

 

"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), which was $888,053,206 as of February 28, 2019.

 

The following abbreviations are used in the preceding pages:

 

ACA —ACA Financial Guaranty Corp.
AGC —Assured Guaranty Corp.
AGM —Assured Guaranty Municipal Corp.
AMBAC —Ambac Assurance Corp.
BAM —Build America Mutual Assurance Co.
GNMA —Government National Mortgage Association
NATL-RE

—National Public Finance Guarantee Corp.

 

Futures Contracts

 

As of February 28, 2019, the Fund held the following futures contracts1:

 

Type  Number of
Contracts
(Short)		  Expiration
Date		  Value at
Trade Date		  Current Notional
Amount		 

Unrealized

Appreciation

(Depreciation)2

10-Year United States Treasury Note   (883)  June 2019  $(108,015,517)  $(107,726,000)  $289,517 

 

1.As of February 28, 2019, cash in the amount of $1,015,450 was on deposit with a broker or futures commission merchant for futures transactions.
2.Represents the difference between the value of the contracts at the time they were opened and the value as of February 28, 2019.

 

The following is a summary of the fair valuations according to the inputs used as of February 28, 2019, for valuing the Fund's assets and liabilities:

 

 

Description  Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		  Significant
Other
Observable
Inputs
(Level 2)		  Significant
Unobservable
Inputs
(Level 3)		  Total
Asset Valuation Inputs                    
Investments in Securities (a)                    
Municipal Bonds  $—   $882,818,322   $—   $882,818,322 
Other Financial Instruments                    
Futures Contracts (b)   289,517    —    —    289,517 
Total Investments in Securities and Other Financial Instruments  $289,517   $882,818,322   $—   $883,107,839 

 

(a)For a complete listing of investments and their industries, see the Portfolio of Investments.

 

(b)The value listed for these securities reflects unrealized appreciation (depreciation) as shown on the Portfolio of Investments.

 

 

 

 

MainStay MacKay DefinedTerm Municipal Opportunities Fund

 

NOTES TO PORTFOLIO OF INVESTMENTS February 28, 2019 (Unaudited)

 

SECURITIES VALUATION.

 

Investments are usually valued as of the close of regular trading on the New York Stock Exchange (the "Exchange") (usually 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 MacKay DefinedTerm Municipal Opportunities Fund (the "Fund"), adopted procedures establishing methodologies for the valuation of the Fund's securities and other assets and delegated the responsibility for valuation determinations under those procedures to the Valuation Committee of the Fund (the "Valuation Committee"). The Board authorized the Valuation Committee to appoint a Valuation Subcommittee (the "Subcommittee") to deal in the first instance with establishing the prices of securities for which market quotations are not readily available or the prices of which are not otherwise readily determinable under these procedures. The Subcommittee meets (in person, via electronic mail or via teleconference) on an as-needed basis. Subsequently, the Valuation Committee meets to ensure that actions taken by the Subcommittee were appropriate. The procedures state that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Fund's assets and liabilities) rests with New York Life Investment Management LLC ("New York Life Investments" or the "Manager"), aided to whatever extent necessary by the Subadvisor to the Fund.

 

To assess the appropriateness of security valuations, the Manager, the Subadvisor 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 with changes exceeding certain tolerance levels with third party pricing services or broker sources. For those securities valued through either a standardized fair valuation methodology or a fair valuation measurement, the Subcommittee deals in the first instance with such valuation and the Valuation Committee reviews and affirms, if appropriate, the reasonableness of the valuation based on such methodologies and measurements on a regular basis after considering information that is reasonably available and deemed relevant by the Valuation Committee. Any action taken by the Subcommittee with respect to the valuation of a portfolio security or other asset is submitted for review and ratification (if appropriate) to the Valuation Committee and the Board at the next regularly scheduled meeting.

 

"Fair value" is defined as the price the Fund would reasonably expect to receive upon selling an asset or liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the asset or liability. Fair value measurements are determined within a framework that establishes a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a 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 based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities. The three-tier hierarchy of inputs is summarized below.

 

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

 

The level of an asset or liability within the fair value hierarchy is based on the lowest level of an input, both individually and in the aggregate, that is significant to the fair value measurement. As of February 28, 2019, the aggregate value by input level of the Fund’s assets and liabilities is included at the end of the Fund’s Portfolio of Investments.

 

The Fund may use third party vendor evaluations, whose prices may be derived from one or more of the following standard inputs, among others:

 

• 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  

 

An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund generally uses 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 asset or liability are discounted to calculate fair value. Discounts may also be applied due to the nature and/or duration of any restrictions on the disposition of the asset or liability. Fair value represents a good faith approximation of the value of a security. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Fund's valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Fund's valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available. During the period ended February 28, 2019, there were no material 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 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 readily available from a third party pricing source or, if so provided, does not, in the opinion of the Manager or the Subadvisor, reflect the security’s market value; (vi) a security subject to trading collars for which no or limited trading takes place; and (vii) a security whose principal market has been temporarily closed at a time when, under normal conditions, it would be open. Securities valued in this manner are generally categorized as Level 3 in the hierarchy. As of February 28, 2019, there were no securities held by the Fund that were fair valued in such a manner.

 

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.

 

Municipal debt securities are valued at the evaluated mean prices supplied by a pricing agent or broker selected by the Manager, in consultation with the Subadvisor. Those values reflect broker/dealer supplied prices and electronic data processing techniques, if the evaluated bid or mean 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. Debt securities purchased on a delayed delivery basis are marked to market daily until settlement at the forward settlement date. Municipal debt securities are generally categorized as Level 2 in the hierarchy.

 

Temporary cash investments acquired in excess of 60 days to maturity at the time of purchase 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 at the time of purchase are valued using the amortized cost method of valuation, unless the use of such method would be inappropriate. 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 using the amortized cost method are not valued using quoted prices in an active market and are generally categorized as Level 2 in the hierarchy.

 

The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The valuation procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.

 

 

 



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 MACKAY DEFINEDTERM MUNICIPAL OPPORTUNITIES FUND

 

By:/s/ Kirk C. Lehneis

Kirk C. Lehneis

President and Principal Executive Officer

 

Date: April 26, 2019

 

 

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/ Kirk C. Lehneis

Kirk C. Lehneis

President and Principal Executive Officer

 

Date: April 26, 2019

 

 

By:/s/ Jack R. Benintende

Jack R. Benintende

Treasurer and Principal Financial and

Accounting Officer

 

Date: April 26, 2019